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Enterprise Resource Planning: What Is ERP?

ERP (Enterprise Resource Planning) software integrates all departments and functions of a company into a single system. It provides integration of financial, HR, production, customer and other information flowing through a company. The goals of ERP are cost reduction, increased productivity and profitability, and improved performance and customer satisfaction. SAP is a leading ERP vendor that was founded in 1972 in Germany. SAP's ERP software evolved from the R/1, R/2 and current R/3 versions, with R/3 utilizing a three-tier architecture that separates the presentation, application, and database layers across multiple servers.

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48 views

Enterprise Resource Planning: What Is ERP?

ERP (Enterprise Resource Planning) software integrates all departments and functions of a company into a single system. It provides integration of financial, HR, production, customer and other information flowing through a company. The goals of ERP are cost reduction, increased productivity and profitability, and improved performance and customer satisfaction. SAP is a leading ERP vendor that was founded in 1972 in Germany. SAP's ERP software evolved from the R/1, R/2 and current R/3 versions, with R/3 utilizing a three-tier architecture that separates the presentation, application, and database layers across multiple servers.

Uploaded by

Charan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ENTERPRISE RESOURCE PLANNING

What is ERP?
ERP stands for ‘Enterprise Resource Planning’
 ERP software integrates all the departments and functions into a single
system that can serve the needs of the entire company.

ERP Integration
ERP provides the integration of all the information flowing through a
company i.e.,
 Financial/Accounting information
 HR information
 Planning Production
 Customer information

Goals of ERP
 Cost Reduction
 Productivity
 Profitability
 Increasing the Performance
 Customer satisfaction

ERP Vendors
Over 100 Vendors are there globally. The major Vendors are the
following
 Lawson (Health Care)
 JD Edwards (Internet)
 Oracle (Database)
 People Soft (HRM Originally)
 BAAN (Manufacturing Products)
 SAP (German, Pioneer of ERP)
SAP
What is SAP?
SAP means ‘System’s Application and Products in Data Processing’.
 SAP is the leader of the ERP Vendors.
History of SAP
 In 1972, Five (5) former employees of IBM Programmers formed the
company called SAP AG in Germany and released the first version of
SAP.
 In 1977, SAP renamed as ‘System’s Application and Products in Data
Processing’. Before 1977, SAP as ‘System’s Analysis and Program
Development’.
 In 1979, SAP R/2 introduced for Mainframe Computers.
 In 1992, SAP R/3 released as Client/Server Application.
 In 1996, SAP R/3 became partially Internet enabled.
 In 1999, SAP announced ‘mySAP.com’, the next generation of its
Enterprise Application System.
 2000 to 2005, SAP introduced mySAP Business Suite, Net weaver and
X-Applications.

SAP R/3 stands for ‘Real time 3-tier architecture’.


Differences between SAP R/1, SAP R/2, SAP R/3
SAP R/1:
 It is 1-tier architecture
 In which all 3 layers [Presentation + Application + Database] are
installed in One System/Server.
(Server1  Presentation + Application + Database)
SAP R/2:
 It is 2-tier architecture
 In which all 3 layers [Presentation + Application + Database] are
installed in Two separate Systems/Servers.
(Server1  Presentation
Server2  Application + Database)

SAP R/3:
 It is 3-tier architecture
 In which all 3 layers [Presentation + Application + Database] are
installed in Three separate Systems/Servers.
(Server1  Presentation
Server2  Application
Server3  Database)
 Presentation Layer as GUI (Graphical User Interface)
 Application Layer as Application Server (one or many)
 Database Layer as Database Server (one single location)

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