Evolution of SAP

1. Origin of SAP (1970)
Started as: Simple accounting software.
Focused on managing total revenue, total expenses, incoming and outgoing transactions.
Developed in: Germany, known as R/1 (Real-time Data Processing).

2. Introduction of R/2 (1979)
Technology Migration: Moved to Mainframes (popular at the time).
Architecture: Two-tier system:
Presentation Layer: User interface to interact with the software.
Database Layer: Backend where data is stored.
How it Worked:
Data was stored in the backend database.
Users interacted through a command-line interface to store/retrieve data.
Example Analogy: Like using MS Excel, where data is stored on a hard disk and displayed on a presentation layer.
Data Flow:
From database → presentation layer (retrieval).
From presentation layer → database (storage).

3. Introduction of R/3 (1992)
Major Enhancement: Added an Application Layer:
Converts and processes data from the database into usable formats.
Key Features:
Three-tier Architecture: Presentation layer, application layer, and database layer.
Graphical User Interface (GUI): Replaced command-line interface.
Client-Server Architecture:
Centralized server held all layers.
Users connected via a “Logon Pad” through the Internet/Intranet.
Flexibility: Changes in application/database layers didn’t require changes in the client layer.
Adoption: Widely accepted by organizations globally.

4. Introduction of mysap.com (Late 1990s)
Transitioned SAP solutions to the web for broader accessibility.

5. Introduction of ECC (2003-2004)
ECC: Enterprise Central Component.
Comparison with R/3:
Both were client-server based.
ECC used a new code base and offered better integration capabilities.
Integration Challenges:
Difficult to connect with external tools like OpenText VIM, Fieldglass.
Used intermediaries like PI/PO or XI for SAP-to-SAP and SAP-to-Non-SAP integration via Web Applications or XML codes.
Innovations:
Introduction of SAP NetWeaver.
Enhanced GUI – no need for command-based operations.
Delivery of best practices (e.g., pre-configured company codes).
Drawback:
SAP didn’t have its own database.
Users had to rely on third-party databases (e.g., Oracle, Microsoft), causing slower data transfer.

6. Introduction of HANA (2015)
Why HANA?:
To eliminate dependency on third-party databases.
To improve performance and speed.
Advantage:
Faster data processing with an in-memory database.

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