SAP simply explained – What is SAP?

Why it’s worth switching to an SAP system

In 1972, five IBM employees quit their jobs and set up their own company in Walldorf, Baden-Württemberg. The idea: A real-time digital solution for payroll accounting, which is supposed to replace the then common punch card system forever. This is the starting signal for system analysis and program development GbR – SAP for short.

The product is well received by the market, which leads to steady growth and increasing sales. Due to the success one dares in 1988 the IPO. In the 1990s, the company managed to increase its turnover tenfold. This is partly due to the introduction of SAP R/3, which lays the foundation for today’s SAP products.

After the turn of the millennium, SAP acquired numerous well-known companies such as TechniData, Success Factors and Concur Technologies. Today, more than 91,000 employees work for the company, which generates an annual turnover of more than 22 billion dollars.

SAP ERP enables the management and presentation of all business processes within a system, from accounting to controlling, to production and warehousing.

Around 335,000 customers worldwide rely on the Walldorf-based group’s technology, including global players such as Coca Cola, Gazprom and Siemens. SAP SE is considered the largest software manufacturer in Europe and is one of the most influential companies in the world.

The system has become a cross-industry software standard and around 70 percent of the world’s economic output is via SAP ERP.

In order to represent the interests of users, their own associations were set up, so-called user groups.

SAP Definition – All-in-One ERP Solution for All Business Sizes

An SAP system has a key advantage: All processes run from a single system. Compatibility issues caused by linking tools from different vendors are a thing of the past.

By implementing a single standard software, many operations can be automated and manual input reduced to a minimum. In addition to the main product SAP ERP, which primarily serves enterprise resource planning, the company has developed additional modules over the years to cover other divisions and processes.

Sap Ariba Supplier Risk, for example, is an innovative supplier management program, while marketing activities can be captured very well with SAP Marketing Cloud. The provider also provides a special tool for human resources with SAP SuccessFactors Employee Central.

Due to the wide range of functions, many companies have difficulty exploiting the full potential of their solution. Often the time and know-how to implement the system correctly is lacking.

We at Munich Enterprise solve this problem with an extensive consulting offer. On request, we can help you adapt the different modules to your requirements.

Among other things, we use the ABAP component. This is an in-house programming language of SAP, which enables individual coding and functional enhancements.

In addition, we support our customers with useful add-ons to supplement and expand the technical possibilities. SAP Mail is particularly noteworthy here, as it allows you to manage and send e-mails from within the SAP system.

SAP Modules and Applications

While most software vendors today rely on SaaS solutions provided by cloud service, SAP presents a so-called on-promises system. It is installed locally on the user’s server. The following modules are available for you with an SAP ERP system:

  • FI = Finance
  • CO = Controlling
  • TR = Treasuring
  • EC = Enterprise Controlling
  • IM = Investment Management
  • PS = Project System
  • WF = Workflow
  • ECM = Enterprise Controlling Management
  • IS = Industry Solutions
  • SD = Sales Distribution
  • MM = Materials Management
  • PP = Production Planning
  • QM = Quality Management
  • PM = Plant Maintenance
  • HCM = Human Capital Management
  • BW = Business Warehouse
  • CRM = Customer Relation Management
  • FS = Financial Solutions

Would you like to switch to SAP as well? Then contact us now. We look forward to hearing from you.

Switch to SAP Mail

The benefits and what to look out for

  • transparent presentation of all company processes
  • A wide range of automation options
  • Saving time and resources
  • manual inputs are reduced to a minimum
  • Good usability

Despite the many advantages, you should bear in mind that a change cannot happen overnight and that a certain amount of time should be taken into account.

As a rule, it takes a while for the new processes and systems to be accepted and internalized by all employees.

At Munich Enterprise, we help you plan this phase of restructuring and bridge it without stress. We look forward to hearingfrom you .