A variety of ERP options from SAP are available to meet various company requirements. SAP ERP Central Component is a large enterprise-focused on-premises system.
SAP S/4HANA is an advanced ERP platform that leverages in-memory computing for real-time analytics. SAP S/4HANA Cloud is a software as a service version that offers quarterly updates. SAP Business One is a business-focused SaaS suite.
Finally, SAP Business ByDesign is a SaaS suite geared towards the midmarket. With customization choices and integration possibilities, each solution covers a range of sectors and business operations.
The functional and technical modules of SAP, such as SAP Basis and SAP HANA, offer extensive business management and technical assistance. Examples of these modules include finance, HR, and logistics.
There are many options, so it is important for companies to evaluate their ERP budget and ERP requirements before they consider an SAP system.
The existing IT architecture, service, and support are important considerations. While some companies may only require support and service while they are implementing the software, others will need it continuously.
It may not be necessary to refresh the entire infrastructure depending on your companys needs. SAP is currently working to make its ERP offerings compatible with public cloud systems like Amazon Web Services and Microsoft Azure.
In fact, SAP has announced partnerships with both cloud platform vendors.
SAP Offers Five Main ERP Solutions

Last but not least, SAPs product branding is confusing when it comes to evaluating its ERP offerings. SAPs marketing materials might refer to cloud ERP in their marketing materials, which is a broad term that covers several of its products like SAP S/4HANA Cloud and Business ByDesign, as well as cloud deployments of Business One.
SAP ERP
SAP ERP Central Component, the companys stalwart ERP software, is its on-premises ERP system. It includes product lifecycle management, supply chain management, financial management, and customer relationship management software.
It is commonly known as SAP ERP. It can be installed on company premises, using an IaaS provider, or in a private cloud option.
SAP S/4HANA is a PaaS that allows companies to migrate SAP ERP software from the cloud.
The strength of SAP ERP is its maturity. It is used by more than 170,000 companies worldwide as of 2024. SAP also customized it to be compatible with 25 different industries and 37 languages.
An SAP ERP system is attractive to companies that do business internationally and those who work in highly specialized industries.
The latest SAP ERP release is Enhancement Package 8 (for ERP 6.0), and Support Package Stack (7.
SPS 7) provides logistics improvements, including improved functionality for SAP Retail and Plant Maintenance.
It also updates the Data Controller Rule Framework to ensure personal data is stored in accordance with legal requirements and in compliance with all data privacy laws.
Package 8 in its entirety also enhanced existing financial, logistics, and plant maintenance functionality. Release 6.0 included new hedging functionality to assist multicurrency-based companies.
Release 6.0 also included embedded geospatial technology, which provides locational analytics to support business operations.
It is important to remember that SAP Enhancement Pack 7 for ERP 6.0 must be installed before moving to SAP HANA.
This is SAP's in-memory database platform.
SAP Enhancement Packages allow companies to add functionality, while SPS Releases are updates and patches that can be applied together.
SAP ERP software can be purchased on a price quote, either as an on-premises, traditional system, or via an SAP reseller as SAP Business All in One software.
SAP S/4HANA
SAP S/4HANA, the next-generation ERP platform by SAP, is available. SAP S/4HANA is used primarily by large and medium-sized enterprises with at least $250 million in annual revenue.
It uses the SAP HANA in-memory database. Companies can run advanced analytics with high-speed transactions using a single database, and receive timely and accurate responses in fractions of a second.
This software is ideal for companies that need near-real-time or real-time analytics. It is especially useful in sectors such as banking, hospitality, and securities.
It is a great fit for large enterprises that have in-house IT expertise and large IT staff. SAP S/4HANA's highlights include AI capabilities, machine learning for logistics and manufacturing, and asset management.
You can also customize the core system to suit specific industries.
SAP S/4HANA 1709 is the next version of the software, and it runs on HANA 2, SAP's second-generation, in-memory platform.
It allows for scale-out and active processing to increase performance. It includes transport management, materials management, demand-driven supply chain replenishment enhancements, and transportation management.
Additionally, it provides a readiness tool that allows you to determine if your IT infrastructure can handle the software.
SAP S/4HANA is available on-premises or in a private cloud environment. SAP provides support during deployment. An annual maintenance license is required to access SAP S/4HANA on-premises.
SAP S/4HANA is available for free on request.
SAP S/4HANA cloud
SAP S/4HANA Cloud provides some of the SAP ERP module features and functionality, but it is updated quarterly rather than annually.
It is the SaaS edition of SAP S/4HANA. The software can be accessed via any web browser from any device. All business applications can also be launched from the SPiori launchpad.
You can deploy it on a private or public cloud. SAP S/4HANA Cloud offers in-memory computing to provide real-time data as well embedded analytics and machine learning support.
It also includes the SAP S/4HANA Cloud Software Development Toolkit, (SDK), which allows enterprises to create custom extensions for SAP S/4HANA. Two-tier deployment support is available for companies that have one or more SAP ERP products such as headquarters and sub-branches.
SAP S/4HANA Cloud can be connected via SAP Cloud Platform to SAP products such as SuccessFactors and Fieldglass.
SAP offers the SAP API Business Hub, which allows developers to create sample apps, extensions, and integrations with SAP and partner APIs. In late 2018, SAP S/4HANA Cloud 1808 was released. It comes with AI-powered intelligent scenarios. These include:
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SAP Financial Statement Insights can detect unusual business situations;
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Automated RFx from Open Purchase Requisitions
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Improved buffer proposal calculations for materials
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Improved insights into potential delays in sales orders and planned delivery;
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Natural language support for tracking sales orders and accounts payables (AP), and accounts receivables (AR);
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Situation handling: Providing urgent information to certain groups for immediate responses.
Additional enhancements are available for machine learning, natural language processing, and predictive analytics.
SAP claims that release 1808 includes smart staffing analytics to improve HR management, chemical compliance, and quality management key performance indicator (KPIs)
SAP S/4HANA Cloud is best suited to medium-sized enterprises that have over $250 million in annual revenue, businesses that do business internationally, and companies that need specialized functionality for specific industry verticals like manufacturing.
SAP markets S/4HANA Cloud to medium and small businesses.
SAP prices S/4HANA Cloud monthly on a subscription basis starting at $220 per month for each user. SAP offers full support during implementation.
SAP S/4HANA Cloud can be tried for 14 days free of charge on request.
SAP Business One
SAP Business One, SAP's ERP Suite for Small and Medium Businesses, can be installed on-premises or in the cloud.
This software is designed for companies with 350 employees. It runs on both SAP HANA (or Microsoft SQL Server) platforms. SAP Business One also includes integrated SAP Crystal Reports, which are useful for reporting generation and other analytics activities.
It also includes mobile access for sales team members and other business users while on the move, provided that real-time analytics are enabled and reports are available.
Administration, financials, and CRM are core modules of the SAP ERP system. They also include sales and AR, purchasing, AP, business partners, and banking. SAP Business One supports 28 languages and 44 countries.
There are more than 500 third-party offerings that can be integrated into the product. This depends on the customers requirements and country.
Third-party add-ons such as SAP Business One Studio and the SDK are available to companies. This allows them to tailor the software to their industry or operations.
Other Business One integrations include the creation of dashboards, mobile apps, and automated quotations. You can also integrate subsidiaries with headquarters, and automatically replicate master data across multiple implementations.
This integration is especially useful for newly acquired or merged businesses.
Major updates are released by SAP every year. These include new modules, functionality, and bug fixes. Between major releases, the vendor releases patches every two to three weeks.
The current SAP Business One 9.3PL05 release is available as of this writing. It includes enhancements in GDPR Support, user group administration, production, project management, and cost accounting.
Multibranch functionality, analytics, cost accounting, and more. SAP also released the Business One Service mobile application, which allows support teams to view and resolve service tickets offline and online.
SAP Business Ones pricing model can be customized for each company. There are two types of licenses available: Professional, which gives full functionality to all SAP ERP modules, and Limited which only provides limited functionality for financials or logistics.
You also have additional options for price lists: indirect-access users (or users that connect via a third-party offering to SAP Business One) and the HANA engine.
These are SAP pricing options that reduce 64 GB of memory.
There are two options for customers to purchase licenses: perpetual, which is an annual purchase that lasts forever (but does not include HANA engines, which can be purchased separately), and cloud, which is a monthly per-user subscription that includes HANA engines.
SAP does not offer ERP consulting or training services directly to customers. SAP channel partners often sell the product, and offer service options. SAP Business One offers a free 31-day Microsoft SQL Evaluation Version.
Channel partners can also provide custom demos and consultations.
SAP Business ByDesign
SAP Business ByDesign, SAPs SaaS ERP suite for midmarket businesses, is ideal for organizations between 250 and 1,500 employees.
However, SAP can support business-by-design implementations in companies with as few as 20 or as many as 10,000 users. The core modules of the products ERP system are:
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Finance
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CRM
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HR
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Project management
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Procurement
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Supply chain management
One functional area can be started by companies and then expanded to include the entire suite. Integrations with APIs can be pre-built for other SAP cloud products like Concur, SuccessFactors, and Ariba.
They also have access to SAP Analytics, SAP Integrated Business Planning, and Microsoft Office 365. It can also connect to other products, such as unified communication systems, third-party extensions, and data sources via APIs.
SAP Business ByDesign has industry-specific functionality that is available for the public sector, professional services, manufacturing, and wholesale distribution (North America only).
You can get the software in 10 languages. The 1808 release of SAP Business ByDesign was released in late 2018. This release allows you to add insights into role-defined overview pages.
Project managers can now view un-invoiced expenses and time, and get alerts when a threshold is exceeded or met.
SAP Analytics has been integrated into every process. It includes over 500 pre-built KPIs, Microsoft Excel integration, and more than 500 standard reports. This allows enterprises to quickly run reports and analyze data.
SAP releases quarterly software updates and publishes a roadmap detailing upcoming changes. SAP Business ByDesigns monthly subscription pricing is determined by user type and number.
You can deploy it on either a private or public cloud. There is also SAP ERP system training through partners. Prospective customers can take a test drive.
Also Read: Discover SAPs Unique Features: Stand Out ERP
Different Types Of SAP Modules

Systems Applications and Products (SAP), is a leader in Enterprise Resource Planning software. An integrated environment allows business processes such as production planning, human resources, and accounting to flow seamlessly between different SAP ERP modules.
These modules are similar in concept to add-on applications that offer additional features to the base program.
Types Of SAP Modules
There are two types of SAP modules: technical and functional. SAP functional modules provide an interface to real-time features your business can use.
SAP technical modules on the other side work more behind the scenes to ensure that SAP functional modules and their common ecosystem function as efficiently as possible.
- SAP Technical Modules: These modules are used to maintain and fine-tune an SAP environment, build applications and troubleshoot issues, install and update updates, and plan and carry out migrations.
- SAP Functional Modules: These modules provide business features such as processing orders, turning data into intelligence, and managing human resources.
SAP Technical Modules
The main focus of SAP technical modules is to ensure a smooth-running SAP landscape. Here is a complete list of SAP technical modules and their core purpose:
- SAP Basis: SAP Basis is the SAP system administration and the technical foundation that allows SAP applications to run smoothly.
- SAP Security: SAP Security provides strong internal security to prevent or allow access when necessary.
- SAP NetWeaver: SAP NetWeaver allows business users to connect to SAP software instantly, regardless of where they are located (social media platforms or mobile devices) NetWeaver also provides unified tracking for various processes, including business intelligence, exchange infrastructure, and enterprise portal.
- SAP Solution manager: SAP Solution Manager is a tool that allows clients to consolidate and enhance, automate, and improve their system management. This reduces total ownership costs.
- Exchange Infrastructure: You can use Exchange infrastructure to integrate cross-system processes with different vendors and versions.
- Supplier Relationship Management (SAP SRM): SAP SRM allows operators to forecast and analyze purchasing behavior, reduce procurement cycles, and improve their business processes with key suppliers in real time.
- Information Systems Management. (SAP IS): Information Systems Management is a flexible tool for gathering, aggregating, and analyzing data from SAP modules. This helps businesses identify problems and causes.
- Customer Relationship Management (SAP CRM): Customer Relationship Management is a way for organizations to effectively and efficiently manage customers while still achieving their business goals.
- High-Performance Analytic Appliances (SAP HANA): SAP HANA uses in-memory computing to store data compressed into RAM and not relational databases on hard drives.
- Advanced Business Application Programming. (SAP ABAP): SAP ABAP is a high-level programming language that uses computing languages Java and C++, and Python to create business applications within an SAP environment.
SAP Functional Modules
SAP functional module provides business features such as order processing, inventory tracking, and human resource management.
Here is a complete list of SAP technical modules and their core purpose:
- Production Planning (SAP PP): SAP Production Planning makes use of master data to assist businesses in planning production, sale, and distribution.
- Materials Management (SAP MM): Materials Management is a key component of a manufacturers supply chain. It provides material, inventory, and warehouse management capabilities.
- Financial Supply Chain Management (SAP FSCM): SAP Supply Chain Management (SAP SCM) integrates financial, accounting, and financial systems in order to optimize financial transactions and reduce financial risk.
- Project System (SAP PS): Project System modules help organizations manage projects throughout their lifecycle, including project structure, budgeting, reporting, and project progress analysis.
- Plant Maintenance (SAP PM): The SAP PM module is a software product that covers inspection, preventive maintenance, and technical system repairs. This simplifies maintenance management. This module is indispensable for manufacturers who need complete oversight.
- Human Resources Management (SAP HRM): SAP HRM modules improve a companys data management and work processes. They can evaluate personal performance, onboard new staff, handle payroll, and manage promotions.
- Quality Management (SAP QM): The Quality Management module assists organizations in managing quality production through collaboration in sales procurement, planning and production inspections, notification, audit management, control, and more.
- Financial Accounting (SAP FI): SAP Financial Accounting, a critical SAP ERP module, is used to store the financial data of an organization and analyze market conditions. This module can be integrated with other SAP modules. It deals with financial components like:Accrual- inventory, and tax accounting Fixed Asset: General ledger, financial statements, Master data governance
- Controlling (SAP CO): SAP CO gives information to decision-makers in companies to help them better understand and optimize the way money is being spent.
- Sales & Distribution (SAP SD): The SAP SD module is a set of business processes that are required for the sale, shipping, and billing of a product. SAP SD is a tool that helps businesses track sales transactions, classify different sales processes, and create effective sales documents.
- Logistics Execution (SAP LE): SAP LE allows businesses to manage merchandise by creating deliveries and picking packaging.
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