For a start, we will explain in this chapter what the three letters “SAP” actually stand for, what an ERP software system actually is and what it is used for. We will then continue to take a look at the history of the company SAP and its software systems and conclude by analyzing the advantages and disadvantages of standard ERP software nowadays.
SAP is the largest software corporation in Europe and is located in Walldorf, Germany. The abbreviation “SAP” stands for “Systems, Applications and Programs in Data Processing”, and the most commonly known (and most successful) SAP product is SAP ERP (where “ERP” stands for “Enterprise Resource Planning”. An ERP system is a software system that covers all business functions typically found in a large or mid-size company.