What is ERP and SAP


ERP is the combination of 3 words

E – Enterprise
R – Resource – Man / Money / Machine / Material
P – Planning – Think in Advance

“An ERP system is an attempt to integrate all functions across a company to a single computer system that can serve all those functions’ specific needs.

Right planing and right decision is the main key of success for any Business. We takes decision on the basis of information. ERP help us to provide the information in real time, so that we can do the right planning and take the right decision on right time and manage our resources well. These things help us to grow our Business.

“Integration” and Transaction in real time are the key feature of ERP.

Key Feature

Real Time Information

ERP system provide us data in real time, which help us to take the right decision in Business.

For Example, Suppose ABC Ltd has Business in 30 Countries, with the help of ERP we can get all the required information in real time from anywhere anytime. This is the beauty of ERP application. We can use this information to take the right decision in Business.

Integration between Different Modules

As we aware, we have Different type of Business Function like Finance, Purchase, Sales, Production, and Marketing etc.

Communication between all the departments is the backbone of the Business. If we have good integration between all departments, it will be really helpful to take the right and fast decision in Business. ERP has integrated all the departments or business function in one place.

Now a days, we have a lot of application in the market related to specific Business function like Finance, HR, Material Management, but there is no integration between them, so in this case if Finance Team required some sales information they have to ask sales people and its take so much time to collect the information might be information has changed when it’s comes to Finance Team as sales team are using different legacy application they have to extract the information and send it to finance offline.

Now with the help of ERP, Finance dependent can get the information in real time as there are integration between all the modules. Finance people can extract the information by self they don’t need to ask to sales team if they have authorization. Its increase the work productivity, save time and help to take the fast and right decisions with proper information.

Major Reasons for Adopting ERP

  • Integrate financial information
  • Integrate customer order information
  • Standardize and speed up operations processes
  • Reduce inventory
  • Standardize Human Resources information


SAP represents – Systems, Applications and Products in Data processing

SAP is the name of the biggest European German Software company. SAP is a Leading ERP application, which provides to work in a real time environment, aim to integrate the entire different sap module in the company. SAP has the customer worldwide.

SAP R/3 Architecture

R stands for Real-time and the number 3 relates to three tier application architecture

  • Data Base Layer :- Where all the data has stored
  • Application Layer :- We use an application for process
  • Presentation layer: – This layer is the interface between the R/3 System. We use this layer to input the data in application.

SAP Landscape

Landscape represents the layout of server, which divided into three different landscapes DEV, QAS and PRD

  • Development Server (DEV): Dev use for Customization & Configuration
  • Quality Server (QAS):  QAS use for Testing to check configuration is works properly or not.
  • Production Server (PRD):  PRD use by End User to post the day to day transactions in real time

Different Module in SAP

We have 2 Types of Modules in SAP, Functional & Technical.

Functional Modules

  • FICO – Finance & Control
  • PP – Production Planning
  • MM – Material Management
  • SD – Sales & Distribution
  • HR – Human Resources & Others

Technical Modules

  • ABAP – Advanced business applications programming
  • XI – Exchange Infrastructure
  • Net viewer
  • Basis & Others

Type of Project

We have following type of projects as below

Implementation Project

Where, customer wants to install SAP first time. This type of project called implementation project.

Support Project

Customer has already installed SAP & wants to get the support in day to day issue resolution, these types of projects called Support Project.

Upgrade Project

Where, Customer is using any old SAP version let say ECC and wants to upgrade SAP with New version let say, S/4 HANA these types of project called Upgrade Project

Rollout Project

In case clients has expanded their business and now wants configuration or business process for that expanded business in SAP these type of projects called rollout project.


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