SAP Definition and Brief History

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SAP was founded by a break away group of 5 IBM founding engineers in the early 1970s, namely, Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus E. Tschira, and Claus Wellenreuther. The five ex-IBMers actually acquired the technology from which they based their software platform from IBM itself which got it from Xerox as a swap deal for a contract Xerox had with IBM. It was called the SDS/SAPE software then and IBM gave the software rights to the five engineers in another swap deal, now, for the five’s stock ownership of about 8%.

In 1972, The five engineers then came up with Systems Applications and Products in Data Processing or SAP in Mannheim, Germany. After short while they came out with the very first financial accounting software which will be the seed from which other components will be developed from to create the system known as the SAP R/1 system where “R” means real time. Thus came to fruition the founding engineer’s vision of developing the standard software systems for real time business data processing.

Their very first client was a company called Imperial Chemical Industries.

In the 1980s, SAP moved to Walldorf, Germany and there they released SAP R/2 which boasted of a better stability compared to its predecessors. It also started becoming multilingual and has become multi-currency to accommodate the needs of their international customers.

The 1990s saw vast improvements in the SAP platform as they moved from the mainframe platform to a client/server tiered architecture composed of relational databases, software applications and a common graphical user interfaces (GUI). This incarnation was referred to as the R/3 until the first decade of the 21st century when the R/version format was changed to an ERP Central Component version format.

The latest version is known as the ECC 6.0.

Current SAP products include:

Current products include:
SAP NetWeaver – this provides the base or foundation for other SAP software packages and is a service-oriented platform that integrates data from the different aspects of a business.
SAP Business Suite – basically a software package aimed at large businesses. It contains the necessary platform to support important business operations such as supply chain or distribution management, warehouse management, sales, finance, customer relationship, human resource and other functions.
SAP Business All-in-One solutions, SAP Business ByDesign and SAP Business One – software products that aims to meet the requirements of small and medium sized enterprises.

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Posted in SAP History | Comments (2)

2 Responses to “SAP Definition and Brief History”

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