Difference between ERP and SAP

Apr 6, 2012 by

Difference between ERP and SAP

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  1. daniel

    ERP is a software suite of various business applications like sales, payroll and accounting. These applications share a similar database, processing standard and technical architecture. SAP is the largest software vendor of ERP.

    1. History

    ERP was first started in the 80s when advances in technology and communications allowed programmers to incorporate applications into business processes. This allowed business to move from the standard transaction based system where data had to be saved and periodically updated, to a quicker real-time system where changes were instant. Meanwhile, SAP was created in late 1972 by several German workers who were previously employed by IBM. These Germans developed an ERP product known as R/3. This product integrated several applications, while sharing one database.

    2. Features

    The main ERP feature is that every application shares one database and also similar data definitions. Having all the relevant information in one format and one location means that big companies have a simpler time managing their data. They do not have to collect information from many systems, translate the data into one format so as to carry out reporting. In contrast, SAP has slogans that tout their ability to undertake data integration within a business. It supports using a single data source. SAP also has supports the feature of making information available to each application.

    3. Nature

    Many people consider ERP as a product. However, ERP is basically a set of rules and methodology on how various applications are joined together in one database. All vendors are supposed to follow these standards to different extents. Meanwhile, SAP is a leading ERP vendor and it offers great services to various sectors such as the government, higher education and manufacturing industries. Other ERP vendors include companies like Microsoft and Oracle.

    ERP is meant for increasing overall business efficiency and reducing wasted resources through using database technology. However, SAP is the business software vendor and provides a software suite of several ERP solutions.

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