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What is the difference between SAP and ERP?

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Question added by Fareed Ahmed , Assistant Manager , Habib Bank Limited
Date Posted: 2016/01/06
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

Key Difference: ERP stands for Enterprise Resource Planning.  It is a business process management tool which deals with the basic internal processes of a company by using various modules. SAP can be used to refer to any of the products of the company SAP AG. SAP-ERP is an integrated software solution by SAP AG. It streamlines processes across procurement, manufacturing, service, sales, finance, and human resource.

ERP stands for Enterprise Resource Planning. It is a business management system which comprises an integrated suite of software modules. It has been devised to assist the internal business related processes of a company. The main feature of all ERP systems is that they all work on a shared database approach. This database is capable of performing multiple functions and at the same time, it can be used by different business units or processes.

 

It has been a powerful system in facilitating the flow of information throughout the company. It manages various systems, but provides an integrated solution. Some of the key functional areas of ERP software include Accounting and Finance, Distribution, Manufacturing and Service Management.  ERP solutions provide a range of benefits. The term ERP was coined by Gartner in. However, its roots date back to thes. In the current scenario, it has extended its functionalities and has also added the business intelligence. It needs a sophisticated information technology infrastructure to work efficiently. 

 SAP stands for Systems, Applications and Products in data processing. SAP is a very large software company in the world. It provides solution for financials, manufacturing logistics, distributions, etc. SAP as a system, is a product by the company SAP AG. SAP-ERP software is a very famous and efficient ERP solution. It is an integrated system in which all the SAP modules share information. Transactions in this system are carried out automatically based on the defined processes.

 

The first version of SAP was launched in and around as SAP R/1. It was based on the one tier architecture. Later in, SAP R/2 was introduces. This version was based on2 tier architecture. SAP R/r is the client/server version which is based on three tier architecture. SAP products include – SAP ERP, SAP Industry Solutions, SAP Solution Manager, etc. Its functional modules include - SAP Functional Modules – Finance & Control, Production Planning, Material Management, Sales & Distribution and Human Resources. The ERP package of SAP uses event driven process chain (EPC) methodology to model Business Process.

 

ERP can be considered as a specific approach of integrating the processes of the system. On the other hand, the term SAP relates to the products of a company named as SAP AG. The products of this company mainly focus on Enterprise resource planning (ERP). The company's main product is MySAP ERP. Thus, SAP-ERM is just a type of ERM solution.

 

Comparison between ERP and SAP:

 

ERP

SAP

Full Form

Enterprise Resource Planning

Systems, Applications and Products in data processing

Definition

ERP stands for Enterprise Resource Planning.  It is a business process management tool which deals with the basic internal processes of a company by using various modules.

SAP can be used to refer to the products of the company SAP AG. SAP-ERP is an integrated software solution by SAP AG. It streamlines processes across procurement, manufacturing, service, sales, finance, and human resource.

Vendors

SAP AG

Oracle Applications

Sage Groups, etc

SAP AG

Features

  • It provides multi-platform  and multi-mode facility
  • It supports strategic and business planning activities
  • It provides complete integration of systems.
  • It covers all functional areas.

Features of SAP-ERP -

  • It provides procurement managment facility

  • It assists in product development

  • Supports sales and services

Jithy Bijeesh
by Jithy Bijeesh , Senior Finance and Accounts Executive , EXL-SERVICE HOLDINGS , INC

Enterprise resource planning (ERP) is a category of business management software with a suite of integrated applications that an organization can use to collect, store, manage and interpret data from many business activities. 

 

SAP is one of the ERP software which is developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization.

Ahamed Mujtaba nayeem
by Ahamed Mujtaba nayeem , Senior IT Officer , Techno Q

ERP stands for enterprise resource planning  and it is a generic term irrespective for application used.

 

SAP is ERP software/application which is one of the most successful in the market

hirra khan
by hirra khan , Ex Group Manager Internal Audit and System Control , GOURMET GROUP PAKISTAN

ERP can be considered as a specific approach of integrating the processes of the system. ERP solution can be in-house too or can be purchased from vendor. On the other hand, the term SAP relates to the products of a company named as SAP AG. Thus SAP is a erp product by a specific company.

Mahmoud Habeeb
by Mahmoud Habeeb , Package Solution Consultant S/4HANA Finance , IBM - Egypt

ERP is an enterprise software to manage companies business thru integration of  all business aspects together to plan for enterprise resources.

 

ERP is the generic concept and many companies produce it's ERP with her name like SAP, Oracle and MS Dynamics etc. 

 

So, SAP is one of ERP Brands.  

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

I fully agree with the answer been added by  Jithy Bijeesh.... thanks.

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