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What is an SAP system?
Sr Software Analyst at Capgemini India (2016-present)
As mentioned by Srinivas in his answer, SAP stands for System Applications and Products.
It is the name of a company and it provides different products like ERP (ECC), BW, Fiori, HANA etc…
ERP is a solution for Industries which contains so many different types of branches like, Human Resources, Procurement, Storage, Production etc…
For each and every branch they use different types of tables for example Balance sheet by Finance people.
An ERP solution will be having all these tables in its product. So one database software is used for all of its branches.
It will provide everything which is mostly needed for your Industry or Enterprise and there is a way to modify it according to your enterprise needs.
Architect; Enterprise Solutions
Actually, this is the 21st Answer to this question. Loads of relevant information is available on SAP official web-site. Plus, just google-up. You’ll find many PPTs on this subject.
I am trying to keep it short, simple, yet insightful. More specifically for freshers.
Many contemplating SAP as a possible career choice [or an added qualification]. But have near-zero business-exposure.
Master of Software Engineering
SAP is the biggest Enterprise Resource Planning system. It is used to manage business processes of companies of different sizes. For example, sales, procurement, human resources, material management.
SAP has different modules of different business processes. SD- Sales and distribution, MM – Material management, BI – Business Intelligence, CRM – Customer relationship management and many more.
A tea manufacturer company has many businesses processes. They would buy raw materials (sales, material management). Then they would process raw materials (recipe management). Then it’s time to pack them into tea bags and boxes (material management). Then tea will be distributed (sales and distribution). Company wants to know selling of green tea in Europe between March and June to predict future orders of row materials and profit (BI, Business Planning Consolidation).