what is sap
TRANSCRIPT
SAP stands for Systems Applications and Products in Data Processing. Designed and developed by
5 IBM engineers during the 1970s as a standards based software alternative to custom built ERP
software, SAP has come a long way. SAP has been in the forefront of ERP software ever since.
SAP develops ERP products to be used by companies to manage their enterprise. This includes
managing their day to day operations, logistics, finances, month end, quarter end and yearly
activities, reporting, HR etc. Although there are a couple of other ERP vendors who do the same, the
key differentiator for SAP is the way in which SAP integrates all these operations and makes for a
seamless system that is both easy to use and at the same time sophisticated enough to include all
kinds of complex activities that are needed for any kind of enterprise. Examples of some of these
activities could, be running Material resource planning, recruiting and managing an employee’s
lifecycle, disbursing payrolls, recording all financial transactions and drawing balance sheets and P/L
statements of the company etc. Now imagine a single system that takes care of all these diverse
activities and still keep them well integrated.
SAP was initially designed to be run on the mainframe and was called that release was called R/2
(Release 2). SAP quickly caught on to the client server model with a later release called R/3 and this
was the most popular version of SAP. After R/3, later versions of their core software were launched
called Enterprise Central Component (ECC).
The automation needs of an enterprise are endless. SAP soon realized that corporations needed
business intelligence to mine data from their daily operational data and extract meaningful trends
that could enable further business opportunities. SAP BW was born and morphed into BI after
buying out Business Objects (BO).
After the hugely successful R/3, SAP created more and more niche software like Customer
Relationship Management (CRM), SRM, XI (now called Process Integration or PI) and once again
living up to the standards of SAP by maintaining tight integration with their core ECC software.
Through the process of developing these software components, SAP has slowly moved from
standard client server architecture to a completely web-based architecture where every transaction
can be run from just a browser. These new dimension products developed on the web standards
based framework (NetWeaver) are all under new umbrella called mySAP.
What’s in it for me ?SAP is all-powerful software and everything, but you might ask “How does it help me?” Roughly
more than 70% of all Fortune 100 and more than 50% of all Fortune 500 companies use SAP as
their core ERP software.
What this gives you is tremendous job opportunities with these companies. These companies have
enormous appetite for qualified IT consultants in the field of SAP. These jobs are not just for
computer engineers or the likes of them. There are multiple tiers of consultants working in SAP for
these companies. SAP is one of the very few software’s where there is a clear distinction between
functional and technical areas of expertise. For companies, this means that there is a clear and
logical division of the type of work performed and hence leads to increased productivity and efficient
implementation and maintenance lifecycles. For individuals like you, this means more jobs and more
specialization required for the same.
We can classify them as
1. Functional Consultants: These are folks who have tremendous industry experience in their
respective area (Like HR, Finance, Logistics modules like Sales, Procurement etc ) . An example
would be a hard-core sales manager with extensive Sales domain experience, working as an SAP
SD functional consultant. Another example would be a CPA working to configure an SAP FICO
system in a company. The strength of these consultants would like in their deep understanding of
the core business processes that are key to the enterprise. A CPA would understand the General
Ledger, Balance Sheet or a reconciliation account more than somebody with just pure technical
knowledge.
2. Technical Consultants: These are folks who have very good engineering or other academic
backgrounds and have a very strong understanding of programming languages. SAP’s own
4th General Programming language is called ABAP. ( Advanced Business Application Programming).
In the mySAP suite of products, programming can be done in Java as well. Also there are
specialized skills like configuring and customizing SAP’s own middleware XI(Exchange
Infrastructure), MDM ( Master Data Management) etc.
3. System Administration: This is managing the SAP software itself (The Netweaver Core ). These folks
are called SAP Basis consultants and they come from some kind of System Administration
background (*NIX, Windows or Database Administrators). The job includes, installation, upgrades,
patching and general maintenance of the SAP system. They also take care of maintaining the entire
system landscape.
Get more information on the SAP job market from http://www.magnatraining.com/sap-job-market.
For quality and affordable SAP Training and Access, visit SAP Training and SAP Access
Modules, Suites and More..1990s saw a tremendous change in SAP. Early 1990 is when SAP’s R/3 captured the ERP market.
The core ERP product comprised of the following modules.
1. FICO – Finance & Controlling
2. SD – Sales & Distribution
3. MM – Materials Management
4. PP – Production Planning
5. SM – Service Management
6. QM – Quality Management
7. WM – Warehouse Management
8. TM – Transportation Management
9. HR – Human Resources
10. PS – Project Systems
In the later part of 1990s, SAP diversified into many niche products expanding beyond just its core
ERP product space and venturing into new dimension products. Some of these products are
mentioned here. They were grouped under the term SAP Business Suite.
1. CRM – Customer Relationship Management
2. SRM – Supplier Relationship Management
3. APO – Advanced Planner and Optimizer
4. PLM – Product Lifecycle Management
5. SCM – Supply Chain Management
6. e-Procurement
7. FSCM – Financial Supply Chain Management
8. EHS – Environment Health and Safety
9. SEM – Strategic Enterprise Management
10. BI – Business Intelligence
11. PI – Process Integration
12. EWM – Extended Warehouse Management
13. and counting….
Parallelly, SAP has been working on Industry specific solutions (SAP – IS ) which are written with
collaboration with specific industries. For example, SAP implements at Nike and has gathered
tremendous information on how the footwear and apparel industry works. Naturally SAP has come
up with a version of ERP called SAP – IS AFS (Apparel & Footwear). SAP also has many other
Industry solutions. For a complete list, visithttp://help.sap.com and click on “SAP for industries”.