SAP stands for Systems, Applications and Products in Data Processing. It is the name of an enterprise resource planning system, or ERP.
SAP is a computer software program that was developed by five ex-employees of IBM. The software is owned by a German company.
As an enterprise resource planning system, SAP is used by businesses to integrate essential data points about their companies, including human resources, accounting and supply chain. It is commonly found in industries like manufacturing, which has complex business processes.
For instance, a manufacturer must track materials, produced goods, machine performance and employee performance. With an ERP system, the company can integrate this data together and understand how each component impacts the other.