Hi Everybody,

Many of you have heard about the rapid growing software application SAP.

I am happy to blog on the topic “What is SAP”

Hey guys – I could read your mind voice “What is new in this blog Mr. Bala ? – If I will Google it – I can get lot more information about SAP?”

Yes, you can get more information from Google, but please go through the fact that I am briefing below for the importance of this blog.

  • If you are a (SAP – core user, technical consultant, Functional consultant (Know what is SAP)) you know better about SAP and you don’t require the content of this blog.
  • If you don’t know about SAP then you need to invest lots of time in surfing the net to understand the topic.
  • You might get a fantastic and vital document but without proper guidance you may feel lost.
  • SAP is Ocean, if you do not have a roadmap and preplanned journey in learning you might get lost.
  • While you are reading an SAP content book from internet and if you are not able to understand a concept – you cannot interact with the book to clarify the doubts, either you have to surf further or communicate with expert for clarification.
  • I am going to guide you in understanding what SAP is in simple words.
  • Post reading my blog if you need any further information, then you can interact with me
  • Yes definitely I am going to take the responsibility of clarifying the doubts about SAP if you follow my Blog.

About me:

I am Balamurugan Palani working for IBM INDIA Pvt Ltd as Application Architect and I am having 9 years of Experience in IT. I have worked on various Implementation and Support Projects of SAP in Basis track.

What does SAP stands for:–

SAP stands for Systems, Applications and Products in data processing.

SAP is one among the top largest software company in the world.

The SAP R/3 system is a business software package designed to integrate all areas of a business.

It provides end to end solutions for financials, manufacturing, logistics, distribution etc.

All business processes are executed in one SAP system and sharing common information with everyone.

SAP is an Enterprise Resource Planning (ERP) system by SAP AG, company based out of Walldorf in Germany. SAP software suite that is being implemented as part of re-engineering and Provides end to end solutions for financial, logistics, distribution, inventories. Present scenario large numbers of companies are using sap software for their day to day business activities.

I can explain you in simple word. Let us take an example of the car Manufacturing Company.

To manufacture and sale the car in an industry the below requirements has to be met.

  1. Labor  – HR department
  2. Finance investment  and control – FICO
  3. Machinery – Production planning
  4. Production Management
  5. Quality Management
  6. Outlets for sale of car – Sales and distribution

In early days before SAP came in to market the companies used different software products for each department for their operation.

Eg : People soft for HR module, Tally for Accounts, Excels / planners for Production planning, Rosters for Production management,  etc …

Think of the manual efforts involved in when the data has to be shared between the two departments. (Time consuming, supporting conversion, scope for manual error)

Cost involved in purchasing and maintaining these many software’s.

Dependency between the soft ware’s, if people soft will not provide data on time to finance department then finance department  will not be able to credit the salary, if no salary the employees will not show interest in work. If there is no work then there is an impact in productivity and will affect the sales and company finance.

This is an enterprise where group of people have to work together with the shared resource to achieve the common goal set.

Example scenerios

Case 1:

What if Finance team will ask the details to HR team “Please detect Rs 500 for employees who have Less than 85% attendance and credit Rs 500 bonus for who have 100% attendance?”

The HR team now has to prepare the list of two set and provide it to Finance team manually, post approval from Finance team the transaction will be executed manually.

Case 2:

The Sales team will promote the product and get the orders placed as manual papers. He then will segregate the orders EOD and send them in a courier to the Sales Head office of the company. The company will receive the same by next day and then intimate the production department that 100 cars required for Madurai sales office in 4 weeks. The production department will then start the planning and Production in co-ordination with the Labor department.

This is a chain process End to End. If there is a gap in the chain process then the company will not be able to produce and will lose business.

Also each and every department play the vital role to succeed.

Co-ordination between each department is very much required to get the better yield.

This co-ordination is what we call as Integration in SAP application. The strength of SAP application is the word Integration.

Is’nt it amazing if I say that all the modules are in-corporated into one application SAP.

R/3 architecture

Distributed across the globe (Presentation layer)

Processed centrally by one server (Production Application Layer) (set of services)

Database to store and retrieve the data (Production database)

Most fabulous thing is each and every module is closely integrated ie if a sales executive in Madurai takes the order placement of 5 cars required, the data is immediately available to the production department based on which they start the planning and production @ Gujarat.

I hope you are interested to learn more about SAP

Will continue in my next blog about each modules and the Integration.



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