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SAP

SAP SE (/ˌɛs.ˈp/; German pronunciation: [ɛsʔaːˈpeː] ) is a German multinational software company based in Walldorf, Baden-Württemberg. It develops enterprise software to manage business operations and customer relations.[2][3] The company is the world's leading enterprise resource planning (ERP) software vendor.[4][5] Apart from ERP software, the company also sells database software and technology (particularly its own brands), cloud-engineered systems, and other ERP software products, such as human capital management (HCM) software, customer relationship management (CRM) software (also known as customer experience), enterprise performance management (EPM) software, product lifecycle management (PLM) software, supplier relationship management (SRM) software, supply chain management (SCM) software, business technology platform (BTP) software and programming environment SAP AppGyver for business.

For other uses, see SAP (disambiguation).

Company type

1972 (1972) in Weinheim, West Germany

Worldwide

Increase 31.207 billion (2023)

Increase €5.785 billion (2023)

Increase €5.928 billion (2023)

Decrease €68.291 billion (2023)

Increase €43.365 billion (2023)

106,043 (2023)

Founded in 1972 as a private partnership named Systemanalyse und Programmentwicklung (literally System Analysis and Software Development). SAP GbR became in 1981 fully Systeme, Anwendungen und Produkte in der Datenverarbeitung abbreviated SAP GmbH after a five-year transition period beginning in 1976.[2]: 1972–1980  In 2005, it further restructured itself as SAP AG. Since 7 July 2014, its corporate structure is that of a pan-European societas Europaea (SE);[6][7] as such, its former German corporate identity is now a subsidiary, SAP Deutschland SE & Co. KG.[6]


SAP is headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices in 180 countries.[8][3] The company has over 111,961 employees in over 180 countries[9] and is a component of the DAX and Euro Stoxx 50 stock market indices.[10] The company is the largest non-American software company by revenue and the world's third-largest publicly traded software company by revenue. As of December 2023, SAP is the largest German company by market capitalization.[11]

History[edit]

Formation[edit]

When Xerox exited the computer hardware manufacturing industry in 1971,[12] it asked IBM to migrate its business systems to IBM technology. As part of IBM's compensation for the migration, IBM was given the rights to the Scientific Data Systems (SDS)/SAPE software repository.


Five IBM engineers from the AI department[13][14] (Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther, all from Mannheim, Baden-Württemberg) were working on an enterprise-wide system based on this software, only to be told that it would no longer be necessary. Rather than abandoning the project, they decided to leave IBM Tech and start another company.[4][15]


In June 1972 they founded the SAP Systemanalyse und Programmentwicklung ("System Analysis and Program Development" / "SAPD") company, as a private partnership under the German Civil Code.[16]


Their first client was the German branch of Imperial Chemical Industries in Östringen,[17] where they developed mainframe programs for payroll and accounting. Instead of storing the data on punch cards mechanically, as IBM did, they stored it locally in the Electronic System while using a common Logical database for all activities of Organization. Therefore, they called their software a real-time system, since there was no need to process the punch cards overnight (for this reason their flagship product carried an R in its name until the late 1990s). This first version was also a standalone software that could be offered to other interested parties.[18]

Corporate affairs[edit]

Ownership[edit]

SAP had the following ownership structure in early 2024:[41]

Partnerships[edit]

SAP partners include Global Services Partners with cross-industry multinational consulting capabilities,[64] SAP University Alliances,[65] Global Software Partners providing integrated products that complement SAP Business Suite solutions,[66] and Global Technology Partners providing user companies with a wide range of products to support SAP technology, including vendors of hardware, database, storage systems, networks, and mobile computing technology.[67]


Extensions partners are companies which provide functionality that complements SAP product capabilities. Their products are certified, sold, and supported by SAP. These partner companies include Adobe, CA Technologies, GK Software,[68] Tricentis,[69] Hewlett-Packard, IDS Scheer, Mendix,[70] OpenText,[71] Knoa Software, and BackOffice Associates.[72]


SAP has also partnered with Apple to work on the mobile experience for SAP enterprise customers. As part of the partnership, a new SAP HANA Cloud Platform SDK would be delivered exclusively for iOS. As a result, developers can build applications based on the SAP HANA Cloud Platform for the iPhone and iPad devices. The partnership was announced in May 2016.[73]


In 2019 SAP announced a three-year partnership "Embrace" with Microsoft that should allow its clients to move their business process into the cloud, although significant portions of that partnership were reduced to two years. SAP teams up on cloud sales with Microsoft [74]


In 2020 SAP announced that together with Wipro it will co-develop and market "solutions for the retail and fashion industry."[75]

Philanthropic efforts[edit]

SAP has donated several millions of dollars to a variety of global health causes including the Product Red campaign and the Global Fund.[78][79] In addition, SAP has distributed free software in South Africa as part of an effort towards developing future markets there.[80] The company also encourages employees to volunteer through social sabbaticals, sending teams of people to different countries to aid non-profits. SAP employees have volunteered in China, India, Brazil, and South Africa.[81]

List of ERP software packages

List of SAP products

SAP implementation

Iansiti, Marco; Lakhani, Karim R. (2 April 2009). . Harvard Business School. 609–069. SSRN 1408558. Retrieved 19 November 2023.

"SAP AG: Orchestrating the Ecosystem"

Meissner, Gerd (2000). SAP: Inside the Secret Software Power. . ISBN 978-00-71347-85-3.

McGraw-Hill

Regan, Gerard O’ (2015). SAP SE. In: Pillars of Computing. pp. 189–194. doi:10.1007/978-3-319-21464-1_29. ISBN 978-3-319-21463-4.

Springer Nature Switzerland AG.

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Official website

Tool to extract data from SAP for internal audit:

https://aufinia.com/products/asap-automated-sap-gui/

Bloomberg