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SAP Full Form | Meaning, Characteristics, Advantages & Disadvantages

Last Updated : 28 Nov, 2023
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The full form of SAP is Systems Applications and Products in Data Processing. SAP is a German software program company whose items permit businesses to track client and business intelligence. 

SAP, by definition, is additionally the title of the ERP (Enterprise Resource Planning) software as well as the title of the company. 


They create program arrangements for managing trade operations and client relationships. SAP framework comprises of a number of completely coordinates modules, which covers for all intents and purposes every perspective of commerce administration.  

History of SAP

SAP was established in 1972 by Wellenreuther, Hector, Hopp, Plattner, and Tschira. Earlier it was called Framework Investigation and Program Development (German: Systemanalyse und Programmentwickung) after that it was renamed as SAP. 
1972 – when the primary adaptation launched. SAP company has a 0.3-million-dollar income with fair nine representatives. 

Characteristics of SAP

  • SAP could be a client-server-based software which is additionally called R/3. (Where “R” stand for genuine time information prepare & 3 stand for 3-tier. 
    • Database
    • Application servers
    • Client
  • Business Processes Operations included in SAP are as follows: 
    • Sales Distribution
    • Material Management
    • Financial Accounting
    • Human Capital Management
    • Healthy and Safety
  • SAP consists of several modules or phases that are: 
    • Phase 1 – Project Preparation
    • Phase 2 – Business Blueprint
    • Phase 3 – Realization
    • Phase 4 – Final Preparation
    • Phase 5 – Go Live Support
  • All applications were built on the beat of the SAP Web Application Server. Expansion sets were utilized to provide unused highlights and keep the center as steady as conceivable. The Net Application Server contained all the capabilities of SAP Basis.


  • Business forms are standardized.
  • Enables integration with E-commerce.
  • Planning, following, planning & administration, gets to be easier.
  • Cost-effective because it diminishes authoritative expenses. Helps to computerize detailing & checking of the ventures
  • SAP framework dispense with copy data.


  • The execution of SAP-ERP for a small organization can be costly. So, it is very costly to buy and implement. 
  • SAP frameworks are continuously complex; in this manner, a few organization may not alter agreeing to it. 
  • You have to be contract specialists to preserve the SAP frameworks.
  • Inter-modules capacities slightest understood by commerce, but tall on list of reasons to buy.
  • Creates inner conflict in organizations.

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