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SAP ERP Fundamentals
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In the 1970s, the concept of an enterprise resource planning (ERP) system did not exist. With its R/1 system, SAP developed a software product that handled process data in real time and saved it to a central database. This meant that companies could access their own data quickly and have a high level of control and transparency.
In the 1980s, these systems came to be known as standard ERP systems. Since SAP had broken new ground in this area, it became the market leader. Integrated processes led to increased efficiency and reduced reaction time to unexpected events.
In the 1990s, the Internet began to grow rapidly. New companies developed new applications for the Internet and the ìnew economyî was born. These firms became known as ìdotcomî companies. They often had a small number of employees and had an Internet presence only. The market changed due to the growth of the Internet. New customer groups were defined and new ways of trading were discovered. Companies began to engage each other directly. As a result, business processes were defined that stretched across company boundaries. Planning data from business partners was used to optimize companies' supply chains. Sales orders were not only entered directly in the ERP system, but also in the field by field service employees using mobile devices. These new functions led to the development of new products. Such ìnew dimension productsî led to an enhancement of ERP functions.
SAP developed systems for Internet purchasing (SAP Enterprise Buyer), customer service (SAP Customer Relationship Management), and comprehensive planning functions (SAP Advanced Planning & Optimization). Irrespective of the Internet, comprehensive accounting tools had also become necessary for companies' financial data. Data was no longer simply stored in a database, as was the case in an ERP system. In response to this, SAP developed SAP Strategic Enterprise Management and the SAP Business Information Warehouse.
At the beginning of 2003, SAP redefined the concept of an ERP system. It is no longer a system with a database; instead, it is a combination of products covering basic processes such as purchasing, sales, and production. In the areas of human resources, accounting, and basis technology, it corresponds to the enhanced solutions of the new dimension products. This SAP ERP solution is compatible with additional components, enabling business processes to be defined on a cross-company level.
Vijay Menon - SAPDrill.com Instructor
In the 1980s, these systems came to be known as standard ERP systems. Since SAP had broken new ground in this area, it became the market leader. Integrated processes led to increased efficiency and reduced reaction time to unexpected events.
In the 1990s, the Internet began to grow rapidly. New companies developed new applications for the Internet and the ìnew economyî was born. These firms became known as ìdotcomî companies. They often had a small number of employees and had an Internet presence only. The market changed due to the growth of the Internet. New customer groups were defined and new ways of trading were discovered. Companies began to engage each other directly. As a result, business processes were defined that stretched across company boundaries. Planning data from business partners was used to optimize companies' supply chains. Sales orders were not only entered directly in the ERP system, but also in the field by field service employees using mobile devices. These new functions led to the development of new products. Such ìnew dimension productsî led to an enhancement of ERP functions.
SAP developed systems for Internet purchasing (SAP Enterprise Buyer), customer service (SAP Customer Relationship Management), and comprehensive planning functions (SAP Advanced Planning & Optimization). Irrespective of the Internet, comprehensive accounting tools had also become necessary for companies' financial data. Data was no longer simply stored in a database, as was the case in an ERP system. In response to this, SAP developed SAP Strategic Enterprise Management and the SAP Business Information Warehouse.
At the beginning of 2003, SAP redefined the concept of an ERP system. It is no longer a system with a database; instead, it is a combination of products covering basic processes such as purchasing, sales, and production. In the areas of human resources, accounting, and basis technology, it corresponds to the enhanced solutions of the new dimension products. This SAP ERP solution is compatible with additional components, enabling business processes to be defined on a cross-company level.
Vijay Menon - SAPDrill.com Instructor