ERP – Enterprise Resource Planning

  • ERP is a system which is used to systematize and integrating all facts of core business functions which includes planning, manufacturing, and sales.
  • E- Enterprise (Company or Business area)
  • R – Resource (Includes four M man, machine, material, and money)
  • P- Planning (Utilizing resource efficiently)


  • SAP ERP is a software developed by German Company SAP SE (Systeme, Anwendungen und Produkte in der Datenverarbeitung; "Systems, Applications & Products in Data Processing).
  • The basic idea in developing SAP was the need to introduce standard software that supports in all the fields of business processing.
  • SAP is usually comprised of three systems namely Development, Quality, and Production.
  • Development - Customization as per the business need will be done in the development system.
  • Quality        - Final testing will be done in Quality system before deploying into Production system
  • Production - Day to day business activities will be carried out in Production System.