System application and product (SAP) was founded in 1972 by five German IBM computer analysts who had left Company. SAP mission is to design software programs for central coordination and processing of information on cross functional and cross divisional financial transactions in a company’s value chain. It is focused on developing enterprise resource planning system (ERP); a multi module applications software that allow companies to manage set of activities and transaction necessary to manage business processes, moving of products from the input stage along the value chain to the final customer. SAP is focused on making a system that can recognize, monitor , measure, and evaluate all the transactions involved in a business process such as product planning, purchasing of input from supplier, manufacturing process, inventory and order processing, and customer self service. SAP goals are to come up with EPR system that provides companies with a standardized information technology platform giving complete information about all aspects of its business process and divisions. This is to allow business to constantly search for ways to perform these process more efficiently and lower its cost structure, improve its services and products in order to raise their value to customer. It aims at coming up with software that can provide information that allows for the design of product that match customer needs and lead to superior responsiveness to customer. It also, aims at making software that portrayed companies on the performance of their products and goods in various markets. Additionally, SAP intends to make software that can compare and measure company’s transactions in all divisions and reveal any problems a company is experiencing. For instance it can detect company’s unwanted expenditures. SAP’s strategy led invention of R/1, its first EPR software in 1973. SAP focused on influential niche of companies and helped in developing a global base of leading companies. It strategized to create a global industry standard for EPR through providing the best business application software infrastructure. To increase its customers, SAP switched strategies in 1980. It decided to focus primarily on outsourcing, external consulting, and implementation of services needed to install and service its software on site in a particular company. It formed alliance series with major global consulting companies like IBM, Accenture, and Cap Gemini to install R/1 system in its growing base of global customers. In its U.S subsidiary, each regional SAP division started developing its own procedure for pricing SAP software, offering discounts, dealing with customer complaints, and even rewarding its employees and consultants. To solve problem of competition SAP sought a quick fix by releasing new R/3 solution for ERP internet enabled SCM and CRM solution which converted its internal ERP system into an externally based network platform. By providing a simpler and cheaper version of its application software coupled with the introduction of the many mySAP business solution packages, SAP broadened its offering targeted market not only to large corporation but also to small medium seized companies. To support its mySAP initiative, SAP continued to build in hou