Difference between SAP and ERP

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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Enterprise Resource Planning SoftwareERP 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 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:

 

ERP

SAP

Full Form

Enterprise Resource Planning

Systems, Applications, and Products in the 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

Image Courtesy: erpnews.net, jberp.com

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Comments

Thank you so much. Can also u provide the same kind of explanation for success factor (SF) ? Thanks.

Thanks for this it would be very useful

Dear friends, Thank you very much for this site! It's a really useful information for me, with a clear and simple explanation. You've done a great work! Wish you all the best!!! Best Regards, Tim

detailed easy explanation

Nice Explanation ..

Its a great explanation compared to other website explanation i seen for ERP and SAP. Very useful for me to understand.. Thank you so much..!!

Great !!!

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