Previously SAP was known as – Systems Analysis and Program Development

In 1972, 5 employees from IBM; Klaus Tschira, Hans-Werner Hektor, Hasso Plattner, Dietmar Hopp, Claus Wellenruther, found severe problem in OLD ERP system and were not happy with its functioning. So, they started a new company SAP-AG in WallDorf city in Germany.


The group of 5, wanted to make an ERP Package that can be integrated for all the departments and can be used by any company worldwide. They commenced a plan to implement it –

Under the planning phase, they sent an employee of SAP AG to small and big companies to understand the requirement of companies globally. Companies worldwide had much common requirements but some information varied according to a particular company’s specifications.

They assembled information by visiting companies all over the world and kept it in a folder. Now they have all the data but the next question was how to mould this data to SAP ERP package. Hence, they started looking for a database and a programming language.

They wanted to create a software in which by using a programming language which can be saved into a database.

Here ABAP Advanced Business Application Programming language was created. It was the back end of SAP. Using ABAP language they stored all globally required information into SAP database which resulted into an SAP ERP Package.


There still was a problem with that software as it was not customised. it was designed according to global requirements and not any specific company’s.

So the team contacted an IT company to design an ERP system that could fulfil the requirements of a particular company. Following are the steps which concluded the overall process from contracting to handing over the project:

  1. Contract Sign with IT company
  2. Provide the requirements
  3. Customize the SAP by IT company
  4. Giving SAP Training to user by IT Company’s employee
  5. Go Live and Handover the SAP to user