SAP Versions & History of its Evolution

Last Updated on October 26, 2022 by Pradeep

Evolution of SAP and SAP Versions

SAP was founded by several ex-IBM employees in early 1970. They named the first system as RF (real-time financials) and later renamed it R/1. Since then we had many SAP versions, each with better functionalities than its previous launch.

Before we see these SAP versions, we need to understand the key parts of any ERP software that makes its structure.

Table of Content:

• Layers in SAP ERP Software
• Different Versions & their details
• Building Blocks of SAP S/4HANA
• SAP Fiori
• Types of Fiori
• SAP ECC Vs. S/4HANA
• Benefits of S/4HANA

Let us learn each segment in detail.

Layers in an ERP Software

The software mainly consists of three layers-

1. Presentation Layer
2. Application Layer
3. Database Layer

Different SAP Versions

Now let us see how SAP launched its different systems from time to time and what are their specifications.

SAP R1 system

R/1 system is the first ever product of the Software. SAP stands for System, Applications and Products in Data Processing. SAP R/1 is a system with one-tier architecture. “R stands for real-time data processing”.

Further, in one-tier architecture, SAP installed all these three layers in one server. The first module it developed was Financial Accounting System, introduced in the Year 1973.

SAP R/2 system

SAP R/2 is SAP’s mainframe product and the first-ever compact software package for end-to-end business applications. It was introduced in the year 1979. SAP R/2 runs on mainframes such as IBM, Siemens etc.

Also, R/2 System is a two-tier architecture-based product. The presentation layer is on one server while the application and database layers are present on another server. The mainframe solution is not open. But with the help of ALE (Application Link Enabled) Technology, we could link R/2 to the system and share online data.

SAP R/3 System

R/3 is SAP’s integrated software solution for client/server and distributed open systems. SAP introduced this version in 1992. SAP R/3 has many modules such as HR, Finance, and MM covering all enterprises. We can describe the SAP R/3 system working process as-

• All requests that come in from the presentation server are directed first to the dispatcher.
• The dispatcher writes them first to the dispatcher queue
• The dispatcher pulls the requests from the queue on a first-in, first-out basis
• Each request is then allocated to the first available work process. A work process handles

mySAP

Using the mySAP.com platform employees, customers, suppliers and other business partners can work together – anytime, anywhere. Hence this rise of web technologies and the need for ERP enabled us to connect on a B2B or B2C basis via the internet.

SAP ERP – One of the most popular SAP Versions

ERP Central Components (ECC) – In 2004, SAP launched a new version of R/3 software with a revised architecture called SAP ECC (SAP ERP Central Component). It is SAP’s ERP (Enterprise Resource Planning) solution. It is also one of the most robust and successful ERP software.

Further, SAP ECC comprises 10 functional components viz,

• Financial Accounting (FI)
• Controlling (CO)
• Sales and Distribution (SD)
• Material Management (MM)
• Production Planning (PP)
• Quality Management (QM)
• Plan Maintenance (PM)
• Customer Service (CS)
• Project System (PS)
• Human Capital Management (HCM)

The modules within the ECC systems are tightly integrated with each other which makes the data flow between multiple lines of business easy and efficient. It also provides an integrated view of the whole organization.

Do visit: SAP Finance & Controlling Course

SAP S/4 HANA – Latest of all SAP Versions

SAP S/4 HANA is short for SAP Business Suite for SAP HANA. It is the latest ERP offering from SAP and is based on the SAP HANA in-memory database to help organizations execute transactions and analyze business data in real-time. Subsequently, SAP designed its fourth version ‘SAP Business Suite’ to run only on SAP HANA. More details on this later in this article.

Three main building blocks of SAP S/4 HANA

1. The HANA platform (or HANA database) is a new database that solves the problems faced by ERP
2. S/4 HANA ( i.e the HANA Business suite ) an updated version of business suite 7 taking advantage of the benefits of the HANA platform
3. A new approach to UI with more focus on flexible app style development and mobile.

HANA Platform

HANA stands for High-Performance Analytical Application. The increases in processing power and storage and the reduction in hardware costs gave SAP the opportunity to rethink the architecture of ERP.

Key Features of SAP HANA

There are three key features that allow the HANA platform to solve the problems ERP and BI were facing, these are:-

In-memory computing– SAP HANA runs on a multi-core CPU with fast communication between processor cores and contains terabytes of main memory. With SAP HANA, all data is available in main memory, which avoids the performance penalty of the disk (read/write to auxiliary memory)

Parallel Processing– Parallel processing is a fairly common concept where modern computers can use multiple processors simultaneously in an operation.

Columnar database management & data compression – In addition to in-memory HANA applies database management methods that are much more efficient at compressing data. And the more compressed data can be the faster the system can run.

Traditional OLTP databases will hold data in a row store. If we compare the data with the row store and column store, we see that the row store has a lot of duplicate data. Thus, the columnar store is much easier to compress.

In-memory design with a columnar store, the HANA platform provides a database that can operate hugely faster than the database options used in R/3 business suite 7 or any traditional OLTP system.

Fiori

SAP Fiori is a new user experience (UX) for SAP software and application and SAP has developed Fiori Apps based on the User interface UI5. It provides a set of applications that we use for regular business functions like work approvals, financial apps, calculation apps and various self-service apps.

SAP Fiori design principles

Role-based – SAP has decomposed various SAP transactions and changed them into user-interactive applications that show only the most relevant information to the users.

Adaptive – It is able to quickly adapt to different use cases, and different devices. It’s got to work consistently. Similarly, no matter where you are, either interacting with an SAP solution from a device, a screen or some kind of an audio-based interface, it adapts to the way that you work.

Simple– This was probably one of the most difficult to achieve. With Fiori, it becomes so easy to add features, capabilities and functions to screens. And the art of simplicity lies in continuous monitoring to ensure that complexity does not creep in.

Coherent – It is intuitive reduce user adoption challenges and increase adoption by enabling individual users to self-train on unique solutions.

Delightful- SAP designed Fiori to work with ECC 6.0, so as to make it easy for the users to deploy on the existing system.

Types of Fiori Apps

We have three categories in SAP Fiori apps that we can distinguish on the basis of their functions and infrastructure requirement. These are:-

1. Transactional Apps
2. Fact sheets
3. Analytical Apps

1. Transactional Apps

We use Fiori Transactional Apps for any process that involves a transaction. For instance, an employee raises a leave request through the My Leave Request app and the manager can approve or reject the leave request through the Approve Leave Request app.

Any transactional activity that involves creating, changing or approving would come under this category and we can deploy it with any database.

Transactional Apps run on the SAP HANA database but we can deploy it with any database with acceptable performance.

These apps allow a user to run simple SAP transactions on mobile devices as well as desktop or laptop – For example Purchase Order.

2. Fact sheets

SAP Fiori Factsheet Apps enables users to access contextual information about specific key information (central objects) used in business operations.

We can access a factsheet app from another related factsheet app or from related transactional and analytical apps.

A Debit Memo Request is a factsheet app that displays the net value, billing status, related invoices and related sales order

Factsheets only run on SAP HANA Database.

3. Analytical Apps

SAP Fiori Analytical Apps convert a large volume of data into business actionable insights. These apps run with the analytical power of SAP HANA integrated along with the interface components of SAP Business Suite

Further, SAP Analytical apps run on the SAP HANA database and use Virtual data models.

Comparison of SAP Versions – ECC VS S4 HANA

Read Related: SAP ECC FICO Vs S/4HANA Finance

Benefits of SAP S4 HANA

• It has a modern UI with Fiori and ready-to-run business solutions for different industries built into it
• It has the option of on-premise or cloud or hybrid (mix of on-premise and cloud) deployment solutions
• It natively integrates with other sap products such as Ariba, SuccessFactors, Fieldglass concur
• Can connect on multiple devices such as Mobile, Desktop, tablet
• Can also get into social network data and use it for analysis
• HANA enables in-memory computing. This enables the data to be read directly from the memory. This means that data always resides in the main memory RAM even though write operations happen on the hard disk. Therefore, SAP S/4 HANA reads data much faster than traditional ERP since the HANA database reads data much faster than the traditional database.
• SAP S/4 HANA can access column-based tables more quickly since only affected columns are read in a query.
• SAP S/4 HANA enables better compression since there are only a few distinct values compared to rows.
• SAP S/4 HANA enables parallel processing since different columns can be processed parallelly.
• With SAP S/4 HANA powered by SAP HANA, Online Transactional Processing (OLTP) and Online Analytical Processing (OLAP) can happen in the same system. This enables real-time reporting and predictive analysis.

Also Read: Why choose a Career in SAP?

The idea behind all SAP Versions

The key focus behind launching all these SAP versions so far is to provide the most user-friendly ERP environment to businesses and with each update, improve on its functionality and features.

Out of all these SAP Versions, the most powerful is the S/4HANA, which still keeps updating itself with better technology and integrated functionality.

Read Related: What is SAP? – Its Historical facts