What is ERP?

ERP is short for Enterprise Resource Planning.

Enterprise resource planning (ERP) is business process
management software that allows an organization to use a system
of integrated applications to manage the business and automate
many back office functions related to technology, services and human
resources. ERP software integrates all the processes of a business
operation, including product planning, development, manufacturing, sales
and marketing.
A process by which a company (often a manufacturer) manages and
integrates the important parts of its business. An ERP management
information system integrates areas such as planning, purchasing,
inventory, sales, marketing, finance, human resources, etc.
Benefits of ERP:

Integration of business processes.

Standardization of system across all location.

Provides accurate, timely information for taking appropriate

business decisions.

Better controlling of different business processes.

Better utilization of resources i.e. man, materials, machines etc.

With ERP, each department still has their own system, but they can
communicate and share information easier with the rest of the
company

ERP products in the Market: SAP, Oracle, Baan, PeopleSoft, JD Edwards,

Marshall.

What is SAP? Definition of SAP ERP Software

SAP stands for Systems Applications and Products in Data
Processing.
SAP ERP is enterprise resource planning software developed by the
German company SAP SE. It was founded in 1972 by five IBM employee
Wellenreuther, Hopp, Hector, Plattner and Tschira.

The SAP R/3 system is a business software package designed to integrate

all areas of a business. All business processes are executed in one SAP
system and sharing common information with everyone. It enables a
company to link its business processes.
SAP R/3 is one of the main product of SAP, where R stands for Real-time
and the number 3 relates to three tier application architecture (Data base,
Application Server and Client).

Server one Presentation, Server Two Application, server Three

Database

Advantages of SAP:
SAP software manages these business management tasks in modules that
all work together in one system by sharing information.
Promoting consistent practice across an entire division
No duplicate data
Standardization of business processes
Make Planning, Scheduling, Tracking and Management easier leaving more
time for you to perform value added work
Ability to provide clear cut job roles with authorizations
Enabling integration with ecommerce
Cost Savings on overheads such as Stationery, File Storage etc.

Why SAP R/3 software has been successful

Multilingual, Secure Information, Multicurrency, Best business Practice, Enterprise Wide

SAP Functional Modules

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

SAP Technical Modules

ABAP Advanced business applications programming
XI Exchange Infrastructure
Net viewer
Basis
BIW Business Information Warehousing

Three-tier Client/Server Architecture

Collections of logically related transactions within identifiable business

functions

PP: Production Planning (Make)

MM: Material Management (Buy)

SD: Sales & Distribution (Sell)

FI: Financial Accounting and CO: Controlling (Track)

HR: Human Resources