Overview of SAP Functional & Technical Module

A. About the speaker: -

Mr. Jagadeesh Varanasi is a Visionary Leader and Supply Chain Consultant with diversified experience in Training & IT sector with expertise in Business Analytics/SAP BI/ APO SCM& SAP Integration/EAI /Software Quality Assurance/PLM, Enterprise Resource Planning on Supply Chain Management. 

He have a total 10 years of Information Technology and core industry experience  including  experience on  SAP BI/BW/APO/SCM/IBP/SAP Integration and possess over 8 years’ experience on Supply Chain Management and Industrial Engineering & Management, Business Analytics Training. He is presently pursuing an Executive Ph.D.  in Business Analytics at IIM Ranchi.


The company was founded in 1972 under the name System Analysis Program Development, which was later abbreviated to SAP. Since then, it has grown from a five-person operation to a multinational corporation with more than 105,000 people worldwide, headquartered in Walldorf, Germany.

SAP created the global standard for enterprise resource planning (ERP) software with the introduction of its original SAP R/2 and SAP R/3 software. SAP S/4HANA now takes ERP to the next level by leveraging in-memory computing to process massive volumes of data and support advanced technologies like artificial intelligence (AI) and machine learning.

The company's integrated applications connect all aspects of a business into an intelligent suite on a fully digital platform, thereby replacing the process-driven legacy platform. SAP has now over 230 million cloud users, over 100 solutions covering all business areas, and the most cloud-based portfolio of any provider.

What is SAP software used for?

Data management is often decentralized in traditional company models, with each business function storing its own operational data in its own database. Employees in different company functions are unable to access each other's information because of this. Additionally, data duplication across many departments raises IT storage costs and increases the chance of data inaccuracies.

SAP software provides many business functions with a single view of the truth by centralizing data management. This enables firms to better manage complicated business processes by providing real-time information across the enterprise to employees from various departments. As a result, businesses can speed up workflows, increase operational efficiency, improve productivity, improve customer experiences, and increase revenue.

What does SAP do? 

SAP helps companies and organizations of all sizes and industries run their businesses profitably, adapt continuously, and grow sustainably.

Small businesses, midsize businesses, and large corporations all use the company's software solutions. Every business process can be mapped and created using standard apps, industry solutions, platforms, and technology. From raw material procurement to production and customer satisfaction, the programme collects and processes data on a single platform. SAP solutions can be placed "on premise" at a user's location(s) or accessed via the cloud, allowing businesses to analyse and develop the complete value chain more efficiently. SAP solutions can also be used to forecast things like when a machine needs to be fixed or how income will grow over the following six months.

Furthermore, SAP enables companies to combine operational data on business processes with emotional data such as purchase experience and customer feedback in a smooth manner. Companies can better understand and respond to their customers because of this.

C. E.R.P.

ERP stands for “enterprise resource planning.” ERP software includes programmed for all core business areas, such as procurement, production, materials management, sales, marketing, finance, and human resources (HR).

SAP was one of the first companies to develop standard software for business solutions and continues to offer industry-leading ERP solutions.

Business Process Integration

Every organization, regardless of industry, need interconnected systems with efficient data flow from one business function to the next. Business Process Integration (BPI) is a critical component of solving integration issues and allowing firms to connect internal and external systems. 

Business Process Integration (BPI) allows –

  • automation of business processes,
  • integration of systems and services,
  • secure sharing of data across numerous applications, and automation of management, operational, and supporting process


Evolution of ERP

During early phases of development, integrated solutions were designed for process areas such as −

Material Management − the integrated system was known as Material Requirement Planning (MRP)

Manufacturing − the integrated system was known as Manufacturing Resource Planning

However, none of the integrated systems came with a complete solution for an organization covering major business process areas. In early 1990’s, the Gartner Group first used the acronym ERP. By mid–1990’s, ERP systems addressed all the core enterprise functions.

In the early stages, most of the ERP solutions were focused on automating back-office functions that were not directly affecting customers or public. Later, front office functions such as customer relationship management and e–business systems were integrated.


Difference between ERP and SAP

  • Basics of ERP and SAP - ERP software is a collection of business process applications that enables companies to integrate core activities and information flow into a single system to better manage business processes and save cost on administrative expenditures that would otherwise be incurred by handling manual processes. SAP is a multinational software company that specializes in business management software, such as the ERP system.
  • Application of ERP and SAP - SAP is a Tier 1 ERP software offering, whereas ERP is a superset of SAP. ERP is more of a framework for connecting apps in a single architecture based on functions using a set of standards. ERP helps in the management and consolidation of an organization's overall performance across numerous functions. SAP is also an ERP system.
  • Modules of ERP and SAP - SAP and ERP are often used in synchronously because SAP is one of the world's largest ERP system vendors. The basic feature of ERP is that all applications inside a company share the same database of information and processes, removing the need for data to be gathered from numerous systems and making business operations easier and more efficient. SAP offers modules that oversee a variety of functions within a company. Each module is associated with a specific function.


D. Architecture of SAP: - 

With SAP R/3, SAP ushers in a new generation of enterprise software — from mainframe computing (client-server architecture) to the three-tier architecture of database, application, and user interface.

Graphical user interface, text, application, email  Description automatically generated

Three-Tier Architecture of SAP R/3

1. Presentation Servers

Presentation servers contain systems capable of providing a graphical interface.

Presentation Server
  • Presentation Layer is also known as client Layer
  • Presentation Layer is a user interaction
  • In SAP-User interaction purpose we use GUI
  • GUI stands for Graphical user interface

Example − Desktop, Mobile Devices, laptops

2. Application Servers

Application servers include specialized systems with multiple CPUs and a vast amount of RAM.

  • Application Layer is also known as Kernel Layer and Basic Layer.
  • SAP application programs are executed in Application Layer.
  • Application Layer serves as a purpose of a communicator between Presentation and Database Layer.
  • Application server is where the dispatcher distributes the workload to the different work processes makes the job done.
Application servers

3. Database Servers

Database servers contain specialized systems with fast and large hard drives.

  • Database layer stores the data
  • Data store can be Business data, SAP system data, SAP tables, Programs.
  • Examples − Oracle, Microsoft SQL Server, IBM DB/2, Siebel, Sybase, etc.
Three Tier

Three-Tier Architecture

What is a Client?

A client is a logical portion of an SAP R/3 physical database. From a business standpoint, a client can be interpreted as a logical group of companies.


Points to Remember −

  • All customizing (configuration) and development (ABAP) work in SAP R/3 is performed in a client.
  • However, the data from both customizing and development work may be stored within an individual client (client dependent data) or among all clients (client independent data) in the system.


Client-Dependent vs. Client-Independent

The data in each client may be separate from that of the other clients. There are basically two types of data in an SAP R/3 system − Client-dependent and Client-independent data.

  • Client-dependent data is defined as data specific to an individual client. Examples of client-dependent data include number ranges, ABAP variants, and user masters as well as the data that is created or updated through SAP R/3 transactions.
  • Client-independent data can be defined as data contained across all clients in the system. Examples of client-independent data include data dictionary objects (tables, views), ABAP source code, screens, and menus.
  • Data resides in tables. To determine if a particular table is client-dependent or client-independent, the table structure needs to be reviewed. The table structure can be viewed by the data dictionary (SE11). If MANDT (client in German) is the first key field of the table, then the table is client-dependent; otherwise, the table is client-independent.
  • For example, the TSTC table is client-independent; however, the USR01 table is client-dependent.

E. Snapshots: - 



F. Report By : - 

Above report is written by Mr. Jenish Patel the first-year student of Operations & Supply Chain Management department of ITM Business School, Kharghar, Navi Mumbai