Origin and Growth of Sap

SAP Company was founded in Germany in year1972market went from nearly zero to 44% of total SAP
by five ex-IBM engineers. SAP means Systems,worldwide sales. SAP is available today in 46
application, products in Data Processing. So now youcountry-specific versions, integrating 28 languages
know! Being integrated in Germany, the full name ofincluding Kanji and many other double-byte character
parent company is SAP AG. It is situated in Walldorf,languages. SAP is also coming in 21 industry-specific
Germany close to the beautiful town of Heidelberg. Itversions.
has subsidiaries in over 50 countries all around theSAP R/3 is delivered to a client with selected standard
world from Argentina to Venezuela. The innovativeprocedure turned on, and many several other optional
five founders have been very successful that theyprocesses and features turned off. At the heart of
have multiplied lots of times over such that SAP AG isSAP R/3 are nearly 10,000 tables that control the way
now the third leading software manufacturer in thethe processes are carried out. Configuration is
world, with more than 17,500 customers (including moreadjusting the settings of these tables to obtain SAP to
than half the world's 500 top companies). SAPrun the way you desire it to. Imagine a radio with
employs larger than 27,000 people worldwide today,10,000 dials to be tuned and you’ll get the picture.
and had revenues of $7.34 billion and the Net IncomeFunctionality integrated is truly venture wide including:
of $581 million in FY01.Now there are 44,500Financial Accounting (e.g. the general ledger or
installations of SAP, in 120 countries, with 10 millionaccounts receivable etc), Management Accounting
users!(e.g. the cost centers or profitability analysis etc), Sales,
What made this company so victorious? Back in 1979Distribution, Production Planning, Manufacturing, Human
SAP released SAP R/2 (which also runs onResources, Purchasing, and Payroll etc. All of these
mainframes) into the German market. SAP R/2 wasmodules are firmly integrated which as you will find out
the first incorporated, enterprise wide package andis a big blessing but this brings with it special challenges.
was an instant success. For years SAP remainedThe SAP applications, built about their latest R/3
within the German borders till it had penetratedsystem, offer the capability to manage financial asset,
practically every big German company. Looking forand cost accounting, materials, production operations
more and more growth, SAP expanded into Europeand personnel, plants, and archived documents. R/3
during the 80's. Towards the end of 80's, client-serversystem runs on many platforms also including
architecture became so popular and SAP respondedWindows 2000 and it also uses the client/server
with the release of SAP R/3. The great success ofmodel. Latest version of R/3 includes a complete
SAP R/3 in North America has been nothing but veryInternet-enabled package.
stunning. Within a period of 5 year, the North American