## SAP

== > SAP is a company.

* S – Systems

* A – Applications

* P – Products in Data Processing

Understanding SAP
 Definition: SAP stands for Systems, Applications, and Products in Data Processing. It is a global leader in
Enterprise Resource Planning (ERP) software based in Germany.
 Company History: Founded in 1972 as a five-person endeavour, it has grown into a multinational enterprise
with more than 105,000 employees worldwide.
 Core Function: It helps organizations integrate and manage business processes across different
departments into a single, unified system.

## Key Facts:
* Global Presence: SAP SE operates in the USA, UK, German-speaking countries, and Gulf countries.

(SAP SE – SAP Societies Europaea)

* Software Type: It is classified as ERP (Enterprise Resource Planning) and business database software.

* Market Impact: Almost 75% of all business transactions globally happen within SAP.

##Key Highlights

 Headquarters: Walldorf, Germany

 Founded: 1972
 Operations: In over 190 countries
 Customers: Over 400,000 companies
 Employees: 105,000+ across 180+ countries
 Industries Served: 30+ industries

Fortune 500 & Market Presence

 Dominance: Over 90% of Fortune 500 companies use SAP as their primary business software.
 Global Impact: SAP serves 99 of the world's 100 largest companies, which collectively generate 87% of
global trade.
 Major Clients: Includes household names like Microsoft, Apple, Nestlé, Coca-Cola, Walmart, Unilever, BMW,
and Adidas.
 SAP is a Company. It’s producing ERP software’s.
 Other SAP ERP software’s are SAP Success Factors, SAP Business one, SAP Ariba, SAP By design… etc.
##Enterprise Resource Planning (ERP)
 What is an ERP?

 Definition: It is a centralized software system designed to integrate

and manage an organization's core business processes across all
departments.
 ERP is a platform, where all the software’s under this is use to manage
(like store, analyse, integrate) the data of the business.

In short, it's software that integrates all facets of an operation, including:

 Finance & Accounting: Managing the general ledger and payroll.

 Supply Chain: Tracking inventory from production to delivery.
 Human Resources: Handling employee data and recruitment.
 Customer Relationship Management (CRM): Managing sales and client interactions.

Understanding SAP ERP

 Market Position: It ranks as one of the most widely used systems globally, focused on improving business
efficiency, data accuracy, and decision-making.
 SAP company will produce only ERP software’s no any other software’s like social media, banking, news ..
etc.
 Structure: The system is built using a combination of functional and technical modules that work together
to create a unified business management environment.
  Top ERP Systems currently in the market:

Rank ERP System Vendor Target Market & Strengths

1 SAP S/4HANA SAP Large enterprises; known for real-time analytics, HANA
database, and robust Finance, MM, and SD modules.

2 Oracle Fusion Oracle Cloud-native architecture; excels in Financials, HR, and

Cloud Supply Chain capabilities.

3 Microsoft Microsoft Mid-market companies; features seamless integration with

Dynamics 365 Office 365 and Power BI, combining CRM and ERP.

4 NetSuite ERP Oracle Small to mid-sized businesses; cloud-based with specialized

(NetSuite) support for multi-subsidiary operations.
📊 “Specialized & Industry-Focused ERPs”:
ERP systems tailored for specific industries, rather than general-purpose enterprise solutions. These
systems focus on domain expertise and niche requirements.

🏭 1. Infor Cloud Suite

👥 2. Workday

🏬 3. Epicor ERP

✈️4. IFS Applications

🧠 Key Insights
🔍 Specialized vs General ERP

 These ERPs are industry-driven, unlike broad systems like SAP or Oracle
 They reduce implementation time with pre-built templates and processes

⚖️Quick Comparison
ERP Best For Unique Advantage

Infor Cloud Suite Manufacturing & healthcare Industry templates

Workday HR & finance Strong HR suite

Epicor ERP Manufacturing & retail Operational focus

IFS Applications Asset-heavy industries Asset lifecycle mgmt

📌 Final Takeaway
 General ERPs (like SAP, Oracle) = broad + customizable
 Specialized ERPs = focused + faster implementation

SAP Modules :
 The core ecosystem of SAP ERP modules, categorized into four primary business domains. This
structure ensures that all departments of an organization work on a unified platform.
SAP ERP Suites:
SAP ERP software has evolved through several generations, moving from mainframe systems to modern in-
memory cloud suites. As of now, the primary focus is on SAP S/4HANA and the RISE with SAP transformation
program.

ERP Suite Generations

Generation Name Era Key Technology

1st Gen SAP R/1 1972 Single-tier, Mainframe architecture.

2nd Gen SAP R/2 1979 Two-tier, Mainframe-based (multi-user).

3rd Gen SAP R/3 1992 Three-tier, Client-Server architecture.

Current Core SAP ECC 6.0 2004–Present Business Suite 7 (Successor to R/3).

4th Gen SAP S/4HANA 2015–Future In-memory (HANA), Cloud/On-Premise hybrid.

Small & Medium Business Versions

 SAP Business One: The primary ERP for SMEs, with the Web Client 2026 release focusing on embedded AI.
 SAP Business by Design: A mid-market cloud ERP. Note: It is scheduled to be removed from the official price
list for new customers in April 2026, though current users remain supported.
Current Status of Recent Versions (2026 Update)

 SAP S/4HANA 2025: The latest major on-premise release (October 2025), featuring deep integration with
Joule (AI copilot) and transactional carbon accounting (the "Green Ledger").
 SAP S/4HANA Cloud (Public Edition): Currently operating on a continuous innovation cycle, with version
2508 (August 2025) being the recent benchmark for AI-driven finance and supply chain.
 SAP ECC 6.0: Mainstream support is scheduled to end on December 31, 2027. Companies remaining on this
version after that date will face a 2% maintenance surcharge and must migrate to S/4HANA by 2030 to
remain supported.
 Compatibility Packs: Usage rights for classical ERP functions within S/4HANA were recently extended to May
2026 to help late-stage migrations.
Database Compatibility
o ECC (ERP Central Component) offered flexibility with various 3 rd party vendors like MS SQL, IBM
DB2, Oracle… etc.
We can’t run above databases in S4HANA platform.
 S/4HANA requires a proprietary infrastructure for its high-speed performance. It has its own
infrastructure.

ECC Traditional RDBMS ( Relational DBMS ) Characteristics

Feature Traditional ECC Database (RDBMS)

Independence Database-Independent (Runs on Oracle, IBM DB2, MS SQL, etc.)

Storage Logic Row-Oriented (Stores one record per line)

Core Focus OLTP (Online Transaction Processing for daily tasks)

Analytics Limited (Often requires external systems like SAP BW or BO)

Performance Optimized for data entry, but slow for complex reporting

 HANA Overview
-HANA stands for High-Performance Analytic Appliance. It is an in-memory, column-oriented relational
database management system developed by SAP.
-Its primary function is to store and retrieve data as requested by applications, but it is specifically optimized
for high-speed real-time analytics.
SAP HANA Database: Key Characteristics

Feature Description
In-Memory Technology Data resides in RAM (not disk) for ultra-fast access and processing.

Column-Store Storage Data is organized by columns, enabling high compression and parallel
processing.

Hybrid Processing Supports both OLTP (transactions) and OLAP (analytics) in a single
platform.

Mandatory The exclusive and required database for S/4HANA and modern SAP
Requirement products.

Origin Developed by SAP in 2010 as a High-Performance Analytic Appliance.

 The ACDOCA table in SAP S/4HANA is a Universal Journal Entry Line Items table that
stores all financial data for an organization. It is a single table that consolidates
data from various sub-ledger and other financial modules in the SAP system.
SAP deployment:
- SAP software has to deploy on Client systems. SAP S/4HANA offers two primary deployment models—Cloud
and On-Premise—with hybrid options available to bridge the two.
- As of now, over 70% of new SAP deployments are projected to be cloud-based as organizations prioritize
agility and continuous innovation.

Primary Deployment Models

Model Sub- Best For Key Characteristics

Option

Cloud Public Small to mid-sized businesses SaaS model; fully managed by SAP; quarterly
Edition (SMEs) seeking speed and automatic updates; limited customization to
standardization. maintain a "clean core".

Private Mid-sized to large enterprises with Dedicated environment; more flexibility for
Edition complex, industry-specific customization than Public; updates approved by the
requirements. customer.

On- Any- Large enterprises requiring absolute Managed on-site or by a hyper scaler
Premise Premise control and deep legacy integration. (AWS/Azure/GCP); full control over data, security,
and upgrade schedules.

Hybrid Two-Tier Global companies with headquarters Combines on-premise stability for core operations
ERP on-premise and subsidiaries in the with cloud agility for specific functions.
cloud.
Key Decision Factors for Deployment:

 Cost Structure: Cloud options typically follow an OpEx (subscription) model with no upfront hardware
costs, while On-Premise is a CapEx model involving significant initial investment in servers and licensing.

 Innovation: Cloud deployments provide the fastest access to the latest AI and automation capabilities via
automatic feature updates.

 Customization: On-premise allows for deep code-level modifications. Cloud options require a "Clean-
Core" strategy, using the SAP Business Technology Platform (BTP) for extensions to keep the main system
stable and upgradeable.

 Security & Compliance: Highly regulated industries (e.g., finance, healthcare) often prefer on-premise or
private cloud for tighter data sovereignty and residency control.

Strategic Frameworks

 RISE with SAP: A bundled offering designed for existing customers to accelerate their transition to the
Private Cloud.
 GROW with SAP: Aimed at new customers to quickly adopt the Public Cloud using preconfigured best
practices.

SAP’s 3-tier architecture: SAP has client-server model that separates the user interface,
business logic, and data storage into three distinct layers.
o This Three-Tier Architecture that has been the backbone of SAP systems since the R/3 era,
but updated for the modern S/4HANA stack.
Here is how those three layers function in a modern environment:

The S/4HANA 3-Tier Stack

Layer Component Function

1. Presentation SAP Fiori / SAP The User Interface (UI). In S/4HANA, this is primarily Fiori web apps
GUI that run on browsers, tablets, or phones.

2. Application SAP S/4HANA The "Brain" of the system. It processes the business logic (ABAP code),
Software executes transactions, and manages communication between the user and
the database.

3. Database SAP HANA The Storage & Memory. Unlike older versions, this layer now does
Database heavy lifting (data calculations) directly in RAM to provide massive
speed.

 Key Difference from Old "R/3"

While the structure (3 tiers) remains the same, the Database Layer is the biggest change. In the old R/3 or
ECC systems, the database was just a "passive" storage bucket (like Oracle or SQL). In S/4HANA, the
database is "active"—it performs complex calculations itself, which is why it's so much faster.
 SAP Products

o A "Product" can refer to a master data object within the software itself:
 Master Data: Represents the goods or services a company buys, sells, or produces.
 Service Products: Intangible items that can be sold, such as car inspections or maintenance.
 Data Products: Standardized, reusable datasets or APIs designed for sharing high-quality information
across teams.
o An SAP product is a piece of business software designed to integrate and automate core company functions
into a single, unified system. These products are broadly categorized as Enterprise Resource Planning (ERP)
software, but they extend into cloud platforms, specialized line-of-business apps, and advanced AI
technologies.