In the last post, I discussed the modularity of SAP ERP. It offers a variety of functionalities, allowing companies to choose and implement only the modules they need. This can reduce the effort required to build an entire system and potentially lower costs, especially when compared to on-premise solutions using cloud infrastructure. But before diving deeper into each functionality, we need to better understand how the overall system works.
SAP operates through a range of products. Not only does* it offer S/4HANA, but there are also many other solutions like SuccessFactors and Ariba. These can be categorized by product type.

: These services can be used without the need to build or maintain infrastructure. By simply subscribing, users can access them through a web interface. SAP handles everything from updates and backups to security.
: These systems are built on the cloud (with servers located outside the company) but can be customized to meet specific organizational needs. SAP or a certified partner builds and manages the infrastructure, and the company accesses it as a service.
: In this model, the organization is fully responsible for building, operating, and securing the system. It requires owning IT infrastructure and employing internal developers. This setup is especially preferred by large enterprises and public sector organizations.

And what I mentioned about modularity applies only to types (2) and (3). The products listed above are independent solutions, while modules exist within ERP systems like ECC or S/4HANA. The most representative ERP product is SAP S/4HANA. Understanding the difference between modules and products is key to grasping how SAP systems are structured.
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