View source for SAP ERP

{{Short description|German enterprise resource planning software}}
{{Use British English|date=January 2022}}
{{Use dmy dates|date=January 2022}}
{{Infobox software
|name = ERP
|logo = SAP 2011 logo.svg
|screenshot = <!-- [[Image:SAPERP.gif|200px]] -->
|caption = SAP ERP 2005 System Menu
|developer = [[SAP SE]]
|programming language = [[C (programming language)|C]], [[C++]], [[ABAP|ABAP/4]]<ref>{{cite web
|url = http://www.lextrait.com/Vincent/implementations.html
|title = The Programming Languages Beacon, v10.0
|first = Vincent
|last = Lextrait
|date=January 2010
|access-date = 14 March 2010
}}</ref>
|released = {{Start date and age|1972|df=yes}}<ref>{{Cite web|url=https://innormax.com/what-does-sap-stand-for/|title=What does SAP stand for?|date=30 May 2023|language=en-US|access-date=2023-08-21}}</ref>
|latest release version = [[SAP R/3]] (v6.0)
|latest release date = {{Start date and age|2016|df=yes}}
|operating system = [[Windows]], [[macOS]], [[Linux]], [[Unix]]
|language count = Over 50
|platform = [[Cross-platform software|Cross-platform]]<br>([[On-premises software|On-premises]])
|genre = [[Enterprise resource planning]]
|license = [[Commercial software|Commercial]], [[Proprietary software|Proprietary]]
|replaces = [[SAP R/3]]
|replaced_by = [[SAP S/4HANA]]
|website = {{URL|www.sap.com/products/erp.html}}
}}
'''SAP ERP''' is [[enterprise resource planning]] software developed by the German company [[SAP SE]]. SAP ERP incorporates the key [[business function]]s of an organization. The latest version of SAP ERP (V.6.0) was made available in 2006. The most recent SAP enhancement package 8 for SAP ERP 6.0 was released in 2016. It is now considered [[Legacy system|legacy technology]], having been superseded by [[SAP S/4HANA]].<ref>{{Cite web|title=RISE with SAP for Modular Cloud ERP: A New Way of Working|date=2 June 2021|url=https://news.sap.com/2021/06/sapphire-now-rise-with-sap-for-modular-cloud-erp/|language=en-US}}</ref><ref>{{Cite web|title=SAP Buries the Past: Calls Out Legacy ERP, Welcomes Modular Cloud ERP|date=9 June 2021|url=https://accelerationeconomy.com/cloud/sap-buries-the-past-calls-out-legacy-erp-welcomes-modular-cloud-erp/|language=en-US}}</ref>
== Functionality ==
Business processes included in SAP ERP are:
* Operations  ([[sales]] & [[Distribution (business)|distribution]], [[materials management]], [[production planning]], [[logistics]] execution, and [[quality management]]),
* Financials ([[financial accounting]], [[management accounting]], financial [[supply chain management]]),
* [[Human Capital Management|Human capital management]] ([[training]], [[payroll]], e-recruiting) and
* [[Corporate services]] ([[travel management]], [[environment, health and safety]], and [[real estate]] management).<ref>{{Cite book |last1=Boeder |first1=Jochen |url=https://books.google.com/books?id=hcsZAwAAQBAJ&q=sap%2520erp&pg=PT16 |title=The Architecture of SAP ERP: Understand how successful software works |last2=Groene |first2=Bernhard |date=2014-03-06 |publisher=tredition |isbn=9783849576622 |language=en}}</ref>
== Development ==
An ERP was built based on the former [[SAP R/3]] software. SAP R/3, which was officially launched on 6 July 1992, consisted of various applications on top of SAP Basis, SAP's set of [[middleware]] programs and tools. All applications were built on top of the [[SAP Web Application Server]]. Extension sets were used to deliver new features and keep the core as stable as possible. The Web Application Server contained all the capabilities of SAP Basis.
An architecture change took place with the introduction of my SAP ERP in 2004. R/3 Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction Server were also merged into SAP ECC, allowing users to run them under one instance. The SAP Web Application Server was wrapped into SAP [[NetWeaver]], which was introduced in 2003. Architectural changes were also made to support an enterprise service architecture to transition customers to a [[service-oriented architecture]].<ref name="IBM_Redbook_2009_p8-10">{{cite book
|last1=Darmawan |first1=Budi
|last2=Dvorak |first2=Miroslav
|last3=Harnal |first3=Dhruv
|last4=Murugan |first4=Rennad
|last5=Silva |first5=Marcos
|title=SAP Backup using Tivoli Storage Manager
|url =https://www.redbooks.ibm.com/redbooks/pdfs/sg247686.pdf
|year=2009
|publisher=ibm.com/redbooks
|isbn=978-0738432977
|pages=8–10 }}</ref>
The latest version, SAP ERP 6.0, was released in 2006. SAP ERP 6.0 has since then been updated through SAP enhancement packs, the most recent: SAP enhancement package 8 for SAP ERP 6.0 was released in 2016.
== Implementation ==
SAP ERP consists of several modules, including Financial Accounting (FI), Controlling (CO), Asset Accounting (AA), Sales & Distribution (SD), SAP Customer Relationship Management (SAP CRM),<ref>{{Cite web|title=Salesforce Vs SAP Which Is Better? - Saptutorials.in|date=7 August 2021|url=https://www.saptutorials.in/salesforce-vs-sap/|access-date=2021-11-14|language=en-US}}</ref> Material Management (MM), Production Planning (PP), Quality Management (QM), Project System (PS), Plant Maintenance (PM), Human Resources (HR), Warehouse Management (WM).<ref>{{Cite web|url=http://www.saponlinetutorials.com/about-sap-modules-sap-modules-list-overview/|title=About SAP Modules - SAP Modules List Overview|website=www.saponlinetutorials.com|date=22 August 2013|language=en-US|access-date=2019-04-18}}</ref> Traditionally an implementation is split into:
* Phase 1 – Project Preparation
* Phase 2 – Business Blueprint
* Phase 3 – Realization
* Phase 4 – Final Preparation
* Phase 5 – Go Live Support
== Deployment and maintenance costs ==
It is estimated that "for a Fortune 500 company, software, hardware, and consulting costs can easily exceed $100 million (around $50 million to $500 million). Large companies can also spend $50 million to $100 million on upgrades. Full implementation of all modules can take years",{{attribution needed|date=September 2018}} which also adds to the end price. Midsized companies (fewer than 1,000 employees) are more likely to spend around $10 million to $20 million at most, and small companies are not likely to have the need for a fully integrated SAP ERP system unless they have the likelihood of becoming midsized and then the same data applies as would a midsized company.<ref name="Monk_Wagner_2009_p23-34">{{cite book
|last1=Monk |first1=Ellen F.
|last2=Wagner |first2=Brej J.
|title=Concepts in enterprise resource planning
|edition=3rd
|year=2009
|publisher=Thomson Course Technology
|location=Boston
|isbn=978-1-4239-0179-2
|pages=23–34 }}</ref>
Independent studies have shown that deployment and maintenance costs of a SAP solution can vary depending on the organization. For example, some point out that because of the rigid model imposed by SAP tools, a lot of customization code to adapt to the business process may have to be developed and maintained.<ref>{{cite web
| url=http://news.zdnet.co.uk/software/0,1000000121,39292842,00.htm
| title=Companies warned over custom SAP costs
| publisher= zdnet  | location = UK
| last=Everett|first=Cath
| quote=''Around 90 percent of European SAP customers could save six- or seven quid each year by avoiding the creation of bespoke code on top of the ERP platform, an IT consultant has claimed''
| date=2008-02-13
| access-date=2009-03-08}}</ref> Some others pointed out that a [[return on investment]] could only be obtained when there was both a sufficient number of users and sufficient frequency of use.<ref>{{cite web
| url=https://www.theregister.co.uk/2003/03/31/sap_costs_too_much_customers/
| title=SAP costs too much – customers ROI challenged
| publisher= The Register | location = UK
| last=Vance|first=Ashlee|author-link=Ashlee Vance
| date=2003-03-31
| access-date=2009-03-08}}</ref><ref>{{cite web
| url=http://nucleusresearch.com/news/press-releases/nucleus-research-finds-57-percent-of-sap-reference-customers-have-not-achieved-a-positive-roi/
| title=Nucleus Research finds 57 percent of SAP Reference Customers have not Achieved a Positive ROI
| publisher = Nucleus Research
| quote=''Customers will see benefits after lengthy implementations, but many deployments anchored down by excessive consulting costs''
| date=2003-03-31
| access-date=2009-03-08}}</ref>
==SAP Transport Management System==
SAP Transport Management System (STMS) is a tool within SAP ERP systems to manage software updates, termed ''[[Transport (SAP)|transports]]'', on one or more connected SAP systems. The tool can be accessed from transaction code STMS. This should not be confused with SAP Transportation Management, a stand-alone module for facilitating logistics and supply chain management in the transportation of goods and materials.
==SAP Enhancement Packages for SAP ERP 6.0 (SAP EhPs)==
The latest version (SAP ERP 6.0) was made available in 2006. Since then, additional functionality for SAP ERP 6.0 has been delivered through SAP Enhancement Packages (EhP).<ref name="SAP ERP 6.0">{{cite web
| url=https://wiki.scn.sap.com/wiki/display/ESpackages/SAP+ERP+6.0
| title=SAP ERP 6.0
| publisher= SAP Community WIKI
| last1=Harvey|first1=Tesha
| last2=Schattka|first2=Karin
| date=15 December 2009
| access-date=2 August 2017}}</ref>
These Enhancement Packages allow SAP ERP customers to manage and deploy new software functionality.<ref>{{cite web
| url=https://wiki.scn.sap.com/wiki/display/EHP/Overview+SAP+Enhancement+Packages
| title=Overview SAP Enhancement Packages
| publisher= SAP Community WIKI
| last=Naveh|first=Moshe
| date=24 December 2014
| access-date=2 August 2017}}</ref> Enhancement Packages are optional; customers choose which new capabilities to implement.<ref>{{cite web
| url=http://www.noventum.de/en/novum-article/release-change-challenge.html
| title=THE RELEASE CHANGE CHALLENGE
| publisher= Noventum
| last=Bui|first=Vi
| date=11 January 2006
| access-date=2 August 2017}}</ref>
SAP EhPs do not require a classic system upgrade.<ref>{{cite web
| url=http://sapexperts.wispubs.com/SAP-Professional-Journal/articles/get-ready-to-implement-sap-enhancement-packages-for-sap-erp-6-0?id=5beead2544df4ccd94aeeba725449afb#.WUhciWiGNPY
| title=Get Ready to Implement SAP Enhancement Packages for SAP ERP 6.0
| publisher= SAP Experts
| last1=Oehler|first1=Christian
| last2=Weiss|first2=Thomas
| date=15 December 2009
| access-date=2 August 2017}}</ref>
The [[Installation (computer programs)|installation]] process of Enhancement Packages consists of two steps:
* Technical installation of an Enhancement Package
* Activation of new functions
The technical installation of business functions does not change the system behavior. The installation of new functionalities is decoupled from its activation and companies can choose which business functions they want to activate. This means that even after installing a new business function, there is no change to existing functionality before activation. Activating a business function for one process will have no effect on users working with other functionalities.<ref name="SAPinsider">{{cite web
| url=http://sapinsider.wispubs.com/Assets/Articles/2009/January/Innovation-Without-Disruption-A-Deep-Dive-Into-SAPs-Enhancement-Package-Strategy-For-SAP-ERP
| title=Innovation Without Disruption: A Deep Dive into SAP's Enhancement Package Strategy for SAP ERP
| publisher= SAPinsider
| last1=Thomas|first1=Weiss
| last2=Christian|first2=Oehler
| date=1 January 2009
| access-date=2 August 2017}}</ref>
Reaching its final stage, SAP ECC 6.0 concludes its evolution with Enhancement Package 8 (EHP 8.0).<ref>{{cite web
| url=https://www.sapvista.com/sap-ecc
| title=SAP ERP Central Component (SAP ECC)
| publisher= SAP Vista}}</ref>
EhP8 served as a foundation to transition to SAP's new business suite: [[SAP S/4HANA]].<ref>{{cite web
| url=https://blogs.sap.com/2016/04/13/relased-in-the-first-quarter-2016-enhancement-package-8-what-is-new/
| title=SAP ERP Enhancement Package 8, what is new?
| publisher= SAP Blogs
| last=Rau|first=Sabine
| date=13 April 2016
| access-date=2 August 2017}}</ref>
== See also ==
*[[GuiXT]]
*[[List of ERP software packages]]
*[[SAP NetWeaver]]
*[[SAP GUI]]
*[[Service-oriented architecture|SOA]]
*[[Secure Network Communications]]
*[[Secure Sockets Layer]]
*[[T-code]]
*[[UK & Ireland SAP Users Group]]
== References ==
{{Reflist|30em}}
=== Sources ===
{{Refbegin|30em}}
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* Jerry Rolia, Giuliano Casale, Diwakar Krishnamurthy, Stephen Dawson, and Stephan Kraft. 2009. Predictive modelling of SAP ERP applications: challenges and solutions. In Proceedings of the Fourth International ICST Conference on Performance Evaluation Methodologies and Tools (VALUETOOLS '09). ICST ([[Institute for Computer Sciences, Social Informatics and Telecommunications Engineering]]), Brussels, BEL, Article 9, 1–9. {{doi|10.4108/ICST.VALUETOOLS2009.7988}}
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* Gargeya, V.B. and Brady, C. (2005), "Success and failure factors of adopting SAP in ERP system implementation", [[Business Process Management Journal]], Vol. 11 No. 5, pp.&nbsp;501–516. {{doi|10.1108/14637150510619858}}
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* R. R. Savchuk and N. A. Kirsta, "Managing of the Business Processes in Enterprise by Moving to SAP ERP System," 2019 [[Institute of Electrical and Electronics Engineers]] Conference of Russian Young Researchers in Electrical and Electronic Engineering (EIConRus), 2019, pp.&nbsp;1467–1470, {{doi|10.1109/EIConRus.2019.8657213}}
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* Laosethakul, Kittipong, and Thaweephan Leingpibul. "Investigating Student Perceptions and Behavioral Intention to Use Multimedia Teaching Methods for the SAP ERP System." e-Journal of Business Education and Scholarship Teaching, vol. 15, no. 1, June 2021, pp.&nbsp;1+. Gale Academic OneFile, {{Gale|A677088452}}. Accessed 26 Jan. 2022.
* {{cite book|last1=Ayres|first1=Fabiane|last2=Ayres|first2=Franklin|last3=Barão|first3=Alexandre|editor-last1=Serrhini|editor-first1=Mohammed|editor-last2=Silva|editor-first2=Carla|editor-last3=Aljahdali|editor-first3=Sultan|title=Methodologies for Large SAP ERP Projects Implementation|year=2020|publisher=Springer International Publishing|pages=243–247|isbn=978-3-030-36778-7}}
* {{cite book|author=Chuprunov, Maxim|title=Auditing and GRC Automation in SAP |chapter=Examples of Efficiency-Oriented and Profitability-Oriented Analysis Scenarios in SAP ERP|year=2013|publisher=Springer Berlin Heidelberg|location=Berlin, Heidelberg|pages=331–360|isbn=978-3-642-35302-4|doi=10.1007/978-3-642-35302-4_14|chapter-url=https://doi.org/10.1007/978-3-642-35302-4_14}}
* {{cite book|last1=Hufgard|first1=Andreas|last2=Gerhardt|first2=Eduard|editor-last1=Schmidt|editor-first1=Werner|title=Consolidating Business Processes as Exemplified in SAP ERP Systems|year=2011|publisher=Springer Berlin Heidelberg|location=Berlin, Heidelberg|pages=155–171|isbn=978-3-642-23471-2}}
* {{cite book|author=Okungbowa, Andrew|title=SAP ERP Financial Accounting and Controlling |chapter=Customizing Organizational Structure in SAP ERP|year=2015|publisher=[[Apress]]|location=Berkeley, CA|pages=1–26|isbn=978-1-4842-0716-1|doi=10.1007/978-1-4842-0716-1_1|chapter-url=https://doi.org/10.1007/978-1-4842-0716-1_1}}
* J. Nađ and M. Vražić, "Decision making in transformer manufacturing companies with help of ERP business software," 2017 15th International Conference on Electrical Machines, Drives and Power Systems (ELMA), 2017, pp.&nbsp;379–382, {{doi|10.1109/ELMA.2017.7955468}}.
* C. F. Vera, R. T. Carmona, J. Armas-Aguirre and A. B. Padilla, "Technological architecture to consume On-Premise ERP services from a hybrid cloud platform," 2019 [[IEEE]] XXVI International Conference on Electronics, Electrical Engineering and Computing (INTERCON), 2019, pp.&nbsp;1–4, {{doi|10.1109/INTERCON.2019.8853633}}.
* R. R. Savchuk and N. A. Kirsta, "Managing of the Business Processes in Enterprise by Moving to SAP ERP System," 2019 IEEE Conference of Russian Young Researchers in Electrical and Electronic Engineering (EIConRus), 2019, pp.&nbsp;1467–1470, {{doi|10.1109/EIConRus.2019.8657213}}.
* Sung J. Shim and Minsuk K. Shim. 2018. How user perceptions of SAP ERP system change with system experience. In Proceedings of the First International Conference on Data Science, E-learning and Information Systems (DATA '18). [[Association for Computing Machinery]], New York, NY, USA, Article 20, 1–4. {{doi|10.1145/3279996.3280016}}
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* {{cite conference|chapter=An Event Data Extraction Approach from SAP ERP for Process Mining|chapter-url=https://link.springer.com/chapter/10.1007/978-3-030-98581-3_19|first1=Alessandro|last1=Berti|first2=Gyunam|last2=Park|first3=Majid|last3=Rafiei|first4=Wil|last4=van der Aalst|title=Process Mining Workshops |series=Lecture Notes in Business Information Processing |year=2022|volume=433 |pages=255–267 |doi=10.1007/978-3-030-98581-3_19 |arxiv=2110.03467|isbn=978-3-030-98580-6 }}
* I. Tereshchenko, S. Shtangey and A. Tereshchenko, "The application SAP® ERP principles for the development and implementation of corporate integrated information system for SME," 2016 Third International Scientific-Practical Conference Problems of Infocommunications Science and Technology (PIC S&T), 2016, pp.&nbsp;168–170, {{doi|10.1109/INFOCOMMST.2016.7905370}}.
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* Diptikalyan Saha, Neelamadhav Gantayat, Senthil Mani, and Barry Mitchell. 2017. Natural language querying in SAP-ERP platform. In Proceedings of the 2017 11th Joint Meeting on Foundations of Software Engineering (ESEC/FSE 2017). [[Association for Computing Machinery]], New York, NY, USA, 878–883. {{doi|10.1145/3106237.3117765}}
* T. Orosz, "Analysis of SAP Development tools and methods," 2011 15th [[IEEE]] International Conference on Intelligent Engineering Systems, 2011, pp.&nbsp;439–443, {{doi|10.1109/INES.2011.5954788}}.
{{Refend}}
== External links ==
* {{Official website|https://www.sap.com/products/erp.html}}
{{ERP software}}
{{Authority control}}
[[Category:ERP software]]
[[Category:Computer-related introductions in 1972]]
[[Category:Cloud applications]]
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[[Category:Automation software]]
[[Category:Accounting software]]
[[Category:Project management software]]
[[Category:Enterprise software]]
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[[Category:Customer relationship management software]]
[[Category:SAP SE|ERP]]