Full Form of SAP/ What is SAP? 

Full Form of SAP/ What is SAP? 

Hello and Welcome to today’s article thank you for joining today’s article topic is, what’s SAP this is the absolute beginners guide to SAP so if you know nothing about SAP this was the article that you want. I’m going to cover if you stick with me for the next few minutes or so here’s what you’ll get out of this article.

 I’ll cover what SAP is obviously and I’ll share with you some stats and some information why it’s so important to have SAP skills these days and if you feel ambitious and you think you want to get started learning about SAP then I also share some tips on the best way to get started learning about SAP. So let’s get started who wants to work for these companies Apple Google Microsoft these are great companies to work for obviously but all in the technology field nonetheless good companies or how about any of these companies so you’ve seen all of these logos before these all big giant global companies in any kind of industry really so hell care transportation airlines manufacturing consumer goods energy services spanking the point.

 I’m trying to make here is all of these companies have something in common and you probably guessed that all of these companies use SAP, so when we talk about who actually uses SAP or what is SAP? SAP is a company that’s the largest business software company in the world. Not a lot of people realize that but yeah so when it comes to business software I say SAP is the worldwide leader in it in fact 80% of the Fortune 1000 companies run SAP software.

I just read another study the other day that said 87% of the global 2000 companies run SAP software so and in fact that’s just about every large business in the world runs SAP software or there’s an 87% chance that they run SAP software the other 13% that don’t run SAP. Software they probably run Oracle most of them that’s the number one competitor to SAP. 

Oracle has a similar software system and they’re the biggest competitor but again 87% of the market is owned by SAP. So most companies by a mile use SAP software in fact the stat here 270,000 companies run SAP software. I just read another study that actually pinned us at over 300,000 so that number keeps increasing so about 300,000 companies run SAP software in a hundred and eighty countries now I have to look up this morning how many countries there are in the world and Google says there’s about 195 countries, so SAP software runs in a hundred and eighty countries. So that’s basically all over the globe you can use this software.

Full Form of SAP/ What is SAP?

SAP stands for Systems Applications and Products in Data Processing. By definition, SAP is also the name of the software ERP (Enterprise Resource Planning), as well as the company name.SAP Software is a multinational European corporation which was founded by Wellenreuther, Hopp, Hector, Plattner and Tschira in 1972.

SAP is a huge german company that creates in sales business software and solutions globally it is the world’s leading provider of enterprise application software helping companies to run better since the 1970s the company grew big with business process automation focusing on ERP enterprise resource planning.

Today their solution supports manufacturing finance sales and almost any other process in a business. It has over one hundred eighty three thousand customers in more than 130 countries customers vary from small businesses to global 500 companies solutions offered the solutions offered are mainly software and services software the flagship is SAP business suite primarily for large enterprises designed to manage complete business processes.

SAP business we’d consists of SAP or ERP the most important component with financials human capital management operations and corporate services as functional areas SAP, CRM this is customer relationship management SAP, PLM this is product life cycle management SAP SRM this is supplier relationship management and SAP, SCM this is supply chain management SAP business all-in-one or the SAP business by design are separate solutions primarily for mid-sized organizations for small companies.

There is the SAP business one application business intelligence is a specific area supporting decision making in a company for this purpose the SAP Business Objects portfolio offers an array of products services software is the main revenue source for SAP AG but services is another important revenue source.

SAP consulting is the largest revenue source for professional services followed by SAP education SAP education is part of SAP and offers a huge amount of training to both users of SAP systems and professionals involved with design and implementation of SAP solutions in particular SAP education enables formal certification of professionals so they can be recognized as experts in the latest SAP solutions.

The SAP ecosystem the SAP ecosystem is a major achievement it enables their customers employees business partners and other communities involved with SAP to help each other get ahead the community of communities in the SAP ecosystem is the SAP community network consisting of huge groups such as the SAP developer network or the business process expert community SAP AG actively embraces the SAP ecosystem it’s like a major economy built around SAP.

It’s a German software company headquartered in beautiful Waldorf Germany that’s about an hour south of Frankfurt right next to Heidelberg.

You’re gonna have to learn it or maybe your company already is on SAP and you just SAP got a new job or a new role and that company and now you have to learn it or maybe you’re applying for jobs and every job ad that you read says SAP experience required those are typically the reasons why people start emailing us or chatting with us saying. Hey well How do I get started? What is this SAP?  thing all about alright so now I want to give you a couple of stats or reasons why SAP skills are so important and why you should probably care about it on LinkedIn there’s over half a million people just in the US alone that lists list SAP skills on their profiles also sap has college training programs and we currently have 1/4 million students college students enrolled in training programs so these are kids that will graduate soon and they already have a basic skill level in SAP entering the job market so a lot of people already know as SAP and that’s good because the job market is pretty hot. 

SAP Job Roles

If you have a chance to go there it’s really really pretty but yeah so there the headquarter this disk giant company is headquartered in this tiny little village called Waldorf there were about 80 thousand employees worldwide and last year they made about twenty three billion dollars in revenue that’s US dollars that sounds like a lot of money and it is but it never really tells me anything what is twenty three billion, so I have a couple of comparisons here for you Facebook last year made 27 billion, Google made a hundred billion dollars Microsoft also around a hundred or 90 billion Apple made two over two hundred billion dollars so it gives you an idea where SAP ranks as far as in terms of size right so it’s a very large business but compared to some of these other well-known names. It’s rather small if you look at it that way now why should you care about SAP. I’m guessing you are reading this article today because maybe you have a co-worker and that co-worker works with SAP and tells you about it or maybe your company told you they are implementing SAP.

So let’s talk about the most important most interesting thing jobs and salaries we get this question a lot where people asked us, so some of the common SAP job roles so for example you might work in the finance world or accounting world and that could be any of these areas general ledger accounts receivable payable asset account in controlling doesn’t matter anything related to finance there’s plenty of common SAP job roles in that area and if you’re not in finance maybe you are in logistics or what SAP calls the supply chain management for example you might work in sales right if you’re a sales rep you probably work with a CRM system it could be as a piece CRM system or you work in distribution or procurement you purchase stuff same thing there’s lots of common SAP job roles in here same with warehouse management or inventory management and also people always think that when you work with SAP software that means you have a desk job you work in an office not so at all so for example you might be working on a loading dock at the warehouse receiving materials and you still can work with SAP.

So this is not related to just desk jobs maybe you work in human resources and you are a personnel administrator or run payroll for your company or you are more on the analytic side and you know how to run reports and do data mining for big companies, that’s a very hot area these days or maybe you are more on the technical side it could be a system administrator or a programmer.

In SAP or maybe even that database administrator those are all areas where you find a lot of different common SAP jobs so it’s not just an accounting system. It’s not a supply chain system not just an HR system, it’s all of these things and I pulled some stats here for average salaries now before you get all excited about these numbers I want to put an asterisk next to it these are average salaries that we pulled and these are salaries for people with a minimum of five years of SAP experience right so if you’re new to SAP obviously you will not reach these salaries just yet nevertheless.

I wanted to share them with you just to show you what the opportunity is as you can see there’s different roles in SAP you could be a project manager you could be an analyst you could be an end-user a consultant or a technical developer. SAP again as a there’s a big variety of job roles in there and also it does it matters of course, if you live in Houston or if you live in New York City or here alone there’s a 40% difference in average salaries but the point that I’m trying to make here is that these are very high salaries all six-figure salaries, we broke that down into into the different job categories here and looked at different cities or the major cities in the US. 

We did it on indeed it’s all public information you can just log in and do a search yourself and you find all these salaries as you can see these are all $100,000 plus jobs. Again this is with the five year experience and these are average salaries so some people will make more money other people will make less money right but the average salaries are very attractive in this area in fact the outlook for SAP jobs is very good.

CNN Money did a study on this or an article on this a few years back where they rank the 100 best jobs in America and number 51 on that list was actually an SAP job at SUP consultant related job and also the bureau years Borough of Labor Statistics. They come out with stats every year they said that the job for an SAP project manager will increase the demand for that job will increase 15% every year for the next can remember five years ten years out or so these are very good job prospects. If you want to enter the SAP world okay so what is SAP then right I’ve given you some stats on the job market. 

I’ve told you a little bit about the company but I haven’t really explained what the product is right people always say well I work with SAP they don’t mean that they don’t actually mean I work with a company SAP, what they mean is I work with some of SAP products so and I want to talk about this for just a few minutes and the way I always explain it to my mom is this good.

When I first told my mom that I work with SAP, she thought that I fix computers for a living which is of course not true so I always ask no do you know what this is Quick Books and many people know they understand this is a software that small businesses use to run their business so for example here at Michael management we’re a small business we use this software Quick Books for our own business right.

We run our accounting system on it we keep track of our customers and vendors we write invoices in there we do our payroll our accountant runs profit and loss statements and balance sheets, and all that stuff so that’s what we use not a question of course is well why couldn’t a fortune 1000 company use this why couldn’t IBM or Apple use this software and the answer is it’s not big enough all right so IBM might have thousands of people logging into the system simultaneously or Quick Books couldn’t handle that also we know IBM has offices and probably a hundred eighty countries around the world well the software doesn’t come in 180 different languages but SAP does also we know the tax systems and in all these countries.
They’re different from one country to another the currencies are different the accounting standards are different in all these countries so this software is Quick Books software couldn’t handle any of this stuff but asap does so SAP can meet legal accounting requirements in the US just as easily as they can in France Belgium and Russia the software handles all of that and that’s the reason why I say SAP is so powerful because it can be used in any location any currency any language any industry by any country and that’s the reason why I say SAP is such a powerful solution.

In fact the market standard for large businesses so this Quick Books you know that comes in a box that you can literally buy at Best Buy and and and install on your computer in an hour SAP software doesn’t come like this ICP has a lot of different systems and here’s just a glimpse and overview of some of their products when people talk about that they work with SAP.

Most people what they mean is they work with an ERP system enterprise resource planning system that’s SAP flagship product that’s the main core product but they have a lot of other systems as well so they have a different system called CRM, it’s a customer relationship system the opposite of that would be an SRM system supplier relationship management these are all different products that SAP sells and that company can choose to implement at their business.

So it makes it pretty complex to understand all the different products that SAP offers I wanted to share some random screenshots with you because maybe you’ve heard from people that SAP is very cumbersome to work with are very complex and difficult and and I won’t lie to you yes SA P is pretty complex and and complicated to learn it’s not an easy software to understand and work with and in the old days it was pretty ugly to be honest you know when I started with SAP over 20 years ago this is what the screenshots looked like it was just this ugly gray screen with just some fields and buttons on it that’s what we work with 20 years ago now we’ve come a long way in the SAP world so here are some some random screenshots of SAP.

What it looks like today it’s much more there’s a much more modern look to it it’s it’s it’s fresh it’s easy to work with and doesn’t look like those old ugly grey screens anymore that brings me to a point where I wanted to ask you know do you have any questions does this make sense so far does this help you understand what SAP is why it’s important to pay attention to it why you might want to consider a career in it if you have any questions now just type them into the chat box and you can all of course always send me an email later.


Here’s a question from from John, I heard that this is very old technology I may not have much opportunities so that’s actually an interest in common John and thanks for for participating.

I hope this stats that have just shown you show that the prospects and SAP a tremendous all right so when companies implement SAP software it takes some years to do so and it costs a lot of money you know large companies can literally spend hundreds of millions of dollars just implementing SAP not just maintaining it by implementing it so companies do that of course with a very long time horizon right.

They’re not just gonna use SAP for a few years and then pick something new so these systems once they implement it this will be around for decades 10 20 30 40 years and more the technology is actually constantly evolving.

For example, these screenshots and have shared these old ones they don’t exist anymore of course because sap constantly involves constantly develops new applications right now the big movies SAP and the cloud.

so I wouldn’t say that SAP technology is old quite the opposite. I would say they constantly work on updating it and improving it.

So I hope that helped a little bit Ahmad you had a question what is SAP nor business one you probably mean let me see if I can go back to our slides here here is the slide with some of SAP’s products right as you can see here it’s something called business one on the right side that’s a solution for small to medium businesses ok so when some somebody talks about.

They’re working with SAP business one that means they’re working for a small to medium company and there’s a different software system that SAP offers it doesn’t have all the functionality that you would see over here on the left side with a big ERP system probably comes in fewer languages can handle fewer Accounting Standards that sort of thing another question Jhon business intelligence business intelligence is another SAP system.It’s a reporting tool and analytics tool. It can combine data from many different SAP systems and external systems – that allows you to do reporting and analytics. 


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