The evolution of SAP: From R/3 to ECC and PLM 7 – Building the foundation of Enterprise Resource Planning
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For decades, SAP has been the backbone of enterprise resource planning (ERP) systems for organizations across the globe. With its long history of innovation and evolution, it's essential to understand the major naming conventions that SAP has used over time to grasp where things stand today and how future transitions, like moving to SAP RISE, can impact businesses.?
SAP R/3 (1990s-2000s)?
R/3 was SAP’s flagship ERP product during the 1990s and early 2000s. It was known for its innovative SAP interface and introduced a more user-friendly experience built on older DOS/text-boxing technology but packaged with a sleek interface for its time. Companies could handle everything from finance to production and human resources using this system, making it revolutionary at its peak.?
It covered various business processes including financial accounting, human resources, supply chain, and manufacturing. SAP R/3 introduced the concept of modular applications where each module (e.g., Finance, Sales, HR) could function individually but shared data across modules for a unified system.?
Early iterations of SAP R/3 used a basic interface, akin to DOS-based systems, but later versions introduced a more modern UI.
To provide large enterprises with an integrated ERP system capable of handling complex business processes.
By the early 2000s, SAP R/3 had reached over 20,000 customers, making it the most popular ERP solution for large enterprises worldwide at the time.?
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?SAP ECC (Enterprise Resource Planning Central Component)?
SAP ECC was the next generation after R/3, bringing in several enhancements through EHP (Enhancement Packs). These incremental upgrades helped companies evolve without needing massive overhauls, with versions like EHP5, EHP6, and EHP7 building upon the foundation.?
SAP ECC is the core component of the SAP ERP system, providing a broader range of modules (e.g., FI (Financials), MM (Materials Management), SD (Sales and Distribution)) with more advanced integration across business processes.?
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ECC introduced SOA to SAP systems, allowing for easier integration with external systems, web services, and APIs.?SAP also introduced Enhancement Packages (EHP), allowing businesses to implement new features and updates without a full system upgrade.?SAP thirdly introduced NetWeaver, a technology platform that enabled better connectivity with non-SAP systems and a unified development platform.?
Within five years of its launch, SAP ECC had gained more than 35,000 customers, accelerating SAP’s dominance in the enterprise software space.?
SAP PLM7?
PLM7, SAP’s attempt at Product Lifecycle Management, still exists today but isn’t as heavily promoted. While its role may seem less prominent, it remains a key player in specific industries, helping businesses manage the complete product lifecycle from conception through production.?
SAP PLM 7 is a specialized solution that helps businesses manage the entire lifecycle of a product, from concept and design to production, service, and disposal. It covers all product-related processes within an organization.?This enables collaboration between departments, stakeholders, and suppliers, ensuring that product data and processes are integrated and accessible throughout the organization.?
PLM 7 introduced an updated, user-friendly interface, making it easier for product managers, engineers, and other users to navigate and utilize the system.? It has strong capabilities for engineering change management, allowing organizations to handle and track product modifications efficiently. It also integrates document management, ensuring that product documentation is organized and available at every stage.?This comprehensive system ensures that product development adheres to regulatory compliance and sustainability standards.??
SAP PLM 7 gained traction in industries such as manufacturing, aerospace, automotive, and pharmaceuticals, where managing complex products with long development cycles is critical.?
By 2010, SAP held around 24% of the global ERP market, due to the success of SAP ECC.?
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