Development[edit]

An ERP was built based on the former SAP R/3 software. SAP R/3, which was
officially launched on 6 July 1992, consisted of various applications on top of
SAP Basis, SAP's set of middle ware programs and tools. All applications were
built on top of the SAP Web Application Server. Extension sets were used to
deliver new features and keep the core as stable as possible. The Web
Application Server contained all the capabilities of SAP Basis.
A complete architecture change took place with the introduction of mySAP ERP
in 2004. R/3 Enterprise was replaced with the introduction of ERP Central
Component (SAP ECC). The SAP Business Warehouse, SAP Strategic
Enterprise Management and Internet Transaction Server were also merged into
SAP ECC, allowing users to run them under one instance. The SAP Web
Application Server was wrapped into SAP NetWeaver, which was introduced in
2003. Architectural changes were also made to support an enterprise service
architecture to transition customers to a Service-oriented architecture.[5]
The latest version, SAP ERP 6.0, was released in 2006. SAP ERP 6.0 has since
then been updated through SAP enhancement packs, the most recent: SAP
enhancement package 8 for SAP ERP 6.0 in 2016...

Implementation[edit]
SAP ERP consists of several modules, including Financial Accounting (FI),
Controlling (CO), Asset Accounting (AA), Sales & Distribution (SD), Material
Management (MM), Product Planning (PP), Quality Management (QM), Project
System (PS), Plant Maintenance (PM), Human Resources (HR).[6] SAP ERP
collects and combines data from the separate modules to provide the company
or organization with enterprise resource planning.
Typical implementation phases:[7]

 Phase 1 - Project Preparation

 Phase 2 - Business Blueprint
 Phase 3 - Realization
 Phase 4 - Final Preparation
 Phase 5 - Golive Support
Companies planning to implement or upgrade an SAP ERP system should pay
strict attention to system integration to save their SAP ERP implementation from
failure. With system integration in place, data flows move completely and
correctly among various SAP ERP components, thereby not only streamlining
business processes but also eliminating or minimizing redundant data entry
efforts.[8]
Analyst firm Gartner estimates that 55% to 75% of all ERP projects fail to meet
their objectives…Of the top 10 barriers to a successful ERP journey, 5 can be
addressed by developing and implementing a structured change management
program.[1]

Deployment and maintenance costs[edit]

It is estimated that "for a Fortune 500 company, software, hardware, and
consulting costs can easily exceed $100 million (around $50 million to $500
million). Large companies can also spend $50 million to $100 million on
upgrades. Full implementation of all modules can take years," which also adds to
the end price. Midsized companies (fewer than 1,000 employees) are more likely
to spend around $10 million to $20 million at most, and small companies are not
likely to have the need for a fully integrated SAP ERP system unless they have
the likelihood of becoming midsized and then the same data applies as would a
midsized company.[9] Independent studies have shown that deployment and
maintenance costs of a SAP solution can greatly vary depending on the
organization. For example, some point out that because of the rigid model
imposed by SAP tools, a lot of customization code to adapt to the business
process may have to be developed and maintained.[10] Some others pointed out
that a return on investment could only be obtained when there was both a
sufficient number of users and sufficient frequency of use.[11][12] Deploying SAP
itself can also involve a lot of time and resources.[13]

SAP Transport Management System[edit]

SAP Transport Management System (TMS) is a tool within SAP ERP systems to
manage software updates, termed transports, on one or more connected SAP
systems. This should not be confused with SAP Transportation Management, a
stand-alone module for facilitating logistics and supply chain management in the
transportation of goods and materials.

ERP advantages and disadvantages[edit]

Advantages

 Allows easier global integration (barriers of currency exchange rates,

language, and culture can be bridged automatically)
 Updates only need to be done once to be implemented company-wide
 Provides real-time information, reducing the possibility of redundancy errors
 May create a more efficient work environment for employees[9]
 Vendors have past knowledge and expertise on how to best build and
implement a system
 User interface is completely customizable allowing end users to dictate the
operational structure of the product
Disadvantages

 Locked into relationship by contract and manageability with vendor - a

contract can hold a company to the vendor until it expires and it can be
unprofitable to switch vendors if switching costs are too high
 Inflexibility - vendor packages may not fit a company's business model well
and customization can be expensive
 Return on Investment may take too long to be profitable
 Implementations have a risk of project failure[9]

Releases[edit]
 SAP R/1 System RF: 1973
 SAP R/2 Mainframe System: 1979
 SAP R/3 Enterprise Edition 1.0 A: July 1992
 SAP R/3 Enterprise Edition 3.0B (SAP R/3 4.0B): 6 April 1998
 SAP R/3 Enterprise Edition 3.1l (SAP R/3 3.1I): 11 May 1998
 SAP R/3 Enterprise Edition 4.3 (SAP R/3 4.3): June 1998
 SAP R/3 Enterprise Edition 4.5B (SAP R/3 4.5B): 29 March 1999
 SAP R/3 Enterprise Edition 4.6B (SAP R/3 4.6B): 6 December 1999
 SAP R/3 Enterprise Edition 4.6C (SAP R/3 4.6C): 3 April 2000
 SAP R/3 Enterprise Edition 4.6F
 SAP R/3 ENTERPRISE 47X110: 15 July 2002
 SAP R/3 ENTERPRISE 47X200: 22 September 2003
 SAP ERP Central Component (ECC) 5.0: 21 June 2004
 SAP ERP Central Component (ECC) 6.0: 24 October 2005
SAP Enhancement Packages for SAP ERP 6.0 (SAP EhPs)[edit]
The latest version (SAP ERP 6.0) was made available in 2006. Since then,
additional functionality for SAP ERP 6.0 has been delivered through SAP
Enhancement Packages (EhP).[14]These Enhancement Packages allow SAP ERP
customers to manage and deploy new software functionality.[15] Enhancement
Packages are optional; customers choose which new capabilities to implement.[16]
SAP EhPs do not require a classic system upgrade.[17] The installation process of
Enhancement Packages consists of two different steps:

 Technical installation of an Enhancement Package

 Activation of new functions
The technical installation of business functions does not change the system
behavior. The installation of new functionalities is decoupled from its activation
and companies can choose which business functions they want to activate. This
means that even after installing a new business function, there is no change to
existing functionality before activation. Activating a business function for one
process will have no effect on users working with other functionalities.[18] The
most recent SAP Enhancement Package for SAP ERP 6.0 was EhP8, which was
released in 2016. EhP8 delivers innovations and serves as a foundation to
transition to SAP’s new business suite: SAP S/4HANA.[19]
SAP EhP Releases

 SAP enhancement package 1 for SAP ERP 6.0 (EHP1 FOR SAP ERP 6.0):
21 December 2006
 SAP enhancement package 2 for SAP ERP 6.0 (EHP2 FOR SAP ERP 6.0):
27 July 2007
 SAP enhancement package 3 for SAP ERP 6.0 (EHP3 FOR SAP ERP 6.0): 7
December 2007
 SAP enhancement package 4 for SAP ERP 6.0 (EHP4 FOR SAP ERP 6.0):
21 November 2008
 SAP enhancement package 4 for SAP ERP 6.0 on SAP enhancement
package for SAP NetWeaver 7.0 (EHP4 FOR SAP ERP 6.0 / NW7.01): 21
November 2008
 SAP enhancement package 5 for SAP ERP 6.0 (EHP5 FOR SAP ERP 6.0):
12 July 2010
 SAP enhancement package 6 for SAP ERP 6.0 (EHP6 FOR SAP ERP 6.0):
24 August 2011
 SAP enhancement package 7 for SAP ERP 6.0 (EHP7 FOR SAP ERP 6.0):
13 August 2013
 SAP Fiori 1.0 for SAP ERP (UI FOR EHP7 FOR SAP ERP 6.0): 29 November
2013
 SAP enhancement package 8 for SAP ERP 6.0 (EHP8 FOR SAP ERP 6.0):
20 January 2016