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.

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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 1990. However, its roots date back to the 1960s. In the current scenario, it has extended its functionalities and has also added business intelligence. It needs a sophisticated information technology infrastructure to work efficiently.

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 SAP stands for Systems, Applications, and Products in data processing. SAP is a very large software company in the world. It provides a 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 1972 as SAP R/1. It was based on the one-tier architecture. Later in 1979, SAP R/2 was introduced. This version was based on 2 tier architecture. SAP R/r is the client/server version which is based on a 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 to integrating the processes of the system. On the other hand, the term SAP relates to the products of a company named SAP AG. The products of this company mainly focus on Enterprise resource planning (ERP). The company's main product is the MySAP ERP. Thus, SAP-ERM is just a type of ERM solution.

Comparison between ERP and SAP:

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