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SAP was founded in 1972 as one of the first companies to offer an integrated platform on which to run a business. Systems that provide this level of integration are known as Enterprise Resource planning systems or ERP systems. Prior to the concept of ERP systems, departments within an organization (for example, the human resources (HR) department, the payroll department, and the financials department) would have their own computer systems. The HR computer system (often called HRMS or HRIS) would typically contain information on the department, reporting structure, and personal details of employees. The payroll department would typically calculate and store paycheck information. The financials department would typically store financial transactions for the organization. Each system would have to rely on a set of common data to communicate with each other.
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