What is SAP R/3?

SAP R/3 was SAP's flagship ERP product from the early 1990s through the 2000s — the "R" stood for "real-time" processing, and the "3" referred to its 3-tier client-server architecture (presentation, application, and database layers), which was a significant shift from the mainframe-based systems common before it.

R/3 introduced the module-based structure (FI, MM, SD, and so on) still recognizable in SAP systems today, and it was widely adopted across industries through the 1990s and 2000s. It has since been succeeded by newer generations of SAP's ERP software, most notably SAP ECC (ERP Central Component) and, more recently, SAP S/4HANA, though R/3's architectural concepts remain foundational to understanding how SAP systems work.

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