The SAP R/3 ERP system provides flexible, integrated client/server and mainframe-based business
applications software that was compatible with most popular hardware, software, and database platforms
at the time. In 1990’s, more than 4,300 companies in 41 countries used SAP software to manage complex
financial, manufacturing, sales, and human resources requirements. When MIT decided to implement the
ERP system, SAP had just started to move into the higher education market in North America: the first
university that implemented ERP was University of Toronto, the second was Central Michigan
University, and the third was MIT. MIT’s decision to use the system would have significant marketing
benefits for SAP in the higher education ERP market. This influenced the price negotiation with SAP,
allowing MIT to acquire SAP licenses and software at a reduced rate.