What is SAP ERP?

SAP ERP is one of the major components of SAP environment. And it is also one of the most crucial requirement to run major businesses today.

But before we begin explaining SAP ERP to you, let’s first have a look at what SAP is.


SAP stands for Software, Applications and Products. This is the English full form. The original full form of SAP is in German, which is Software, Anwendungen und Produkte. This is a German company, founded by 5 former IBM employees in 1972. So, inherently, SAP is the name of the company. But it meant much more than just the name.

SAP was also the synonym for its central software product, which was an integrated package of standard business software. Today, this company is the market leader in enterprise application software, helping various companies, no matter small or large. And ERP is one of the products of the company, which has been responsible for company’s success over the many years.


SAP ERP full form stands for Software, Applications and Products Enterprise Resource Planning. This is basically the ERP software developed by the German company SAP. It is the integrated management of important and core business processes, which is carried out in real time and is mediated by the technology and software.

Originally, SAP ERP was used as a synonym for SAP’s first generations of central software product. Today, it incorporates all the key business functions of any organization. The latest version of this software is SAP ERP 6.0. This was released in the year 2006. And any additional functionality that needs to be added, is done through SAP Enhancement Packages. The latest such package (EHP8) was released in 2016.

Some of the business processes which are today a part of SAP ERP include:

  • Operations
  • Financials
  • Human Capital Management
  • Corporate Services

One of the reasons why ERP is today’s most important business requirement is that it easily allow for global integration of a company. Real time information is passed on, which reduces any redundancy errors or mistakes. And that makes an efficient working environment for the company’s employees.

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