Meaning of SAP


SAP is a large software manufacturer whose programs are used by many companies. Based on abbreviationfinder, the abbreviation SAP stands for “systems, applications and products in data processing”. SAP is best known for software that enables the digitization and simplification of various business processes – this is known as Enterprise Resource Planning (ERP). SAP ERP is the manufacturer’s best-known product.

  • SAP digitizes and simplifies processes in companies. With SAP ERP, companies work more efficiently and faster. In addition, the risk of errors is reduced in certain processes
  • The software is used in various areas of the company. These include bookkeeping, sales, purchasing, production, warehousing and human resources
  • Thanks to SAP ERP, all departments within a company have the same database, which enables more transparent and efficient work processes
  • SAP ERP is available in the cloud, on-premises and as a hybrid solution

What is SAP

SAP is the manufacturer of the software solutions of the same name that many companies use to digitize business processes and manage individual company areas. In most cases, employees need special training so that they can use SAP. SAP is headquartered in Walldorf in Baden-W├╝rttemberg and is one of the top-selling IT groups in Europe.

What is SAP needed for?

With SAP, companies can make processes much more efficient. Areas of application for SAP software are, for example, bookkeeping, sales, purchasing, production, warehousing and human resources. In the past, companies had to enter and manage a lot of data manually. Not only was this inefficient, but it also increased the risk of errors. The only alternative to manual input was your own IT system. However, setting up such a system was associated with high costs. In addition, each sub-area usually had its own database system, which was often not compatible with others.

To solve this problem, SAP developed standardized software. This can be used in a wide variety of areas and is used in small, medium-sized and large companies. In addition, SAP provides software products that are specifically aimed at retail, industry, banks and media companies.

What is SAP ERP?

SAP ERP is software from SAP that is used to plan and control company resources (Enterprise Resource Planning; ERP) and enables processes to be optimized. The key processes here are those that are indispensable for running a business. This includes processes in the areas of finance and human resources, service and operations, as well as procurement and production. Modern ERP systems also provide extensive analysis options, making more transparent and efficient processes possible in all areas of the company.

ERP systems are also characterized by the fact that all company departments can transmit information to one another in real time. This means that each business area can adapt its performance directly to the data available.

ERP system from SAP: advantages

The SAP ERP system is divided into several ERP modules. The company departments use individual modules, but all of them call up their information from a common database. This has the advantage that the individual departments do not need their own information silos. In addition to automating core processes, an SAP ERP system also serves to reduce business risks. The software also makes reporting easier.

All ERP modules can be combined and supplemented as required. E-commerce, order management and processing as well as inventory management are examples of ERP components that can also be assigned to the modules of each department.

How is SAP ERP provided?

When a company opts for an SAP ERP system, SAP offers three options for how the software can be deployed: in the cloud, on-premises or as a hybrid solution.

  • With ERP in the cloud, companies access the system as required via the Internet. This relieves the in-house IT.
  • If SAP provides the ERP software on-premises, companies can operate their ERP system behind their own firewall. This gives you maximum control and flexibility.
  • A hybrid ERP system enables companies to operate certain ERP applications in the cloud and other modules on-premises. Hybrid is a hybrid of the cloud and on-premises.