SAP software is a family of components and products. Product in turn consists of modules.

• SAP software is a group of products
• SAP product is a group of modules

It is within a particular module that business processes are configured. SAP is built on the concept of specialization and integration. Specialization refers to the fact that each product within the family meets a particular need. Integration refers to the fact that products can communicate with each other (transfer data and share data).

SAP software can be broken down into following products:

• SAP NetWeaver
• SAP Enterprise Resource Planning (ERP)
• SAP Product Lifecycle Planning (PLM)
• SAP Supplier Relationship Management (SRM)
• SAP Customer Relationship Management (CRM)

SAP is well known for reflecting industry's best practices. A company can grow faster and serve its stakeholders much efficiently by following best practices. Reflecting best practices has been a major reason in SAP's success.SAP offer industry solutions for most industries. Mainly you can divide the industry solutions into three main categories:

• Manufacturing
• Service Industries
• Financial/Public Services

The above mentioned categories include Aerospace and Defence, Automotive, Banking, Chemicals, Consumer Products, Engineering and Construction, Health care, High Tech, Insurance, Media, Oil and Gas, Pharmaceuticals, Public Sector, Retail, Telecommunications, Utilities, etc.

Industry Solutions are installed on top of SAP's core products. A company can choose to implement core SAP product and customize it according to its requirements. Or a company can simply choose to deploy specific industry solution.SAP product or component can be broken down into modules. The term product and component is used synonymously.

For example SAP ERP is a product. It has various modules with it for example:

• Financials
• Sales
• Distributions
• Human Capital Management etc

Modules can be defined as portion of business functionality within products. This portion of business functionality is discrete in nature. Each module serves a area of business for which a department is responsible for. All departments work together to do the business. If SAP is used across the board then consistency is achieved, as modules are integrated. Management gets the high level visibility it needs to make necessary decisions. (Again because modules are integrated).SAP software is more about the big picture of connecting people, resources, and processes across the enterprise.