Business transformation with SAP R/3

SAP AG is a German software company and is the 5th largest in the world. It operates globally in over 40 countries and employs more than 6,500 people directly. The products of the company are two pieces of software (called R/2 and R/3), and a range of value adding services such as training, product consultancy, and operational support. Both R/2 and R/3 are integrated suites of business system software. R/2 runs on traditional mainframe computers and R/3 on newer, open system based client server systems. The products have achieved a remarkable penetration in virtually all sectors of business. Indeed, on any comparative basis, SAP has established itself globally as the dominant supplier of core business system software. Many multinational corporations have adopted SAP as their standard and increasingly, smaller enterprises are following suit. The paper considers the reasons for this and discusses the manner in which the software is used as a tool to realise business benefits. Although the paper focuses specifically on SAP, it illustrates wider aspects of the role which computer technology is playing in bringing about fundamental structural change in business and society.