John Sicard |
I might add that this phenomenon may extend to all other “large” ERP providers with “large” budget projects spanning “long” periods of time. As you stated in your post, “The recession, however, changed everything”. Under such uncertain times, Enterprises will be more inclined to invest in strategic solutions to better weather the storm. In such a case, rapid time to value will be key. We may very well see a shift in focus from tactical execution improvements (usually translates to large ERP projects/upgrades spanning months/years) to dramatically improving the their competency in “sense and respond”, where best-of-bread vendors have long had the upper hand on ERP providers.
Peter K |
It is not only that SAP projects are stopped or delayed. If you look at the example at hand, you see that basically the complete company would run under SAP: SAP ERP, CRM, SCM, PLM, SRM, HCM, SEM, BI and enterprise portal: sales, production, purchase, human capital, enterprise management, reporting. However, as customers in Germany recently found out, this can be an expensive undertaking or at least it is difficult to calculate.
The main reason of complains in the last weeks was, that these companies, with a turnover between 1 and 10 billion Euro, had done exactly the same: build the IT completely on SAP. As most IT related people know, such an architecture can not be changed over night. A replacement would take years and cost millions. So what do you do ? -> You sign the new maintenance contract if you can not afford a frozen system !
That was what the trouble in Germany was about, as reported by these customers in Düsseldorf on December 10th, 2008.
Peter K |
It is not only that SAP projects are stopped or delayed. If you look at the example at hand, you see that basically the complete company would run under SAP: SAP ERP, CRM, SCM, PLM, SRM, HCM, SEM, BI and enterprise portal: sales, production, purchase, human capital, enterprise management, reporting. However, as customers in Germany recently found out, this can be an expensive undertaking or at least it is difficult to calculate.
The main reason of complains in the last weeks was, that these companies, with a turnover between 1 and 10 billion Euro, had done exactly the same: build the IT completely on SAP. As most IT related people know, such an architecture can not be changed over night. A replacement would take years and cost millions. So what do you do ? -> You sign the new maintenance contract if you can not afford a frozen system !
That was what the trouble in Germany was about, as reported by these customers in Düsseldor
business implementation strategy |
<strong>business implementation strategy</strong>
Your topic The Quality Stocks Stock Newsletter For Smallcap Companies Blog ” Blog … was interesting when I found it on Sunday searching for business implementation strategy”
Me, Enterprise Consulting » Select Comfort’s stalled SAP install grabs an awful lot of attention |
[...] So, it probably isn’t fair to say query “[w]ill more companies halt SAP projects?” While I’m keenly aware that you shouldn’t rely fully on a company spokesperson, her words quoted in Computerworld are relevant here: ”We fully recognize these are truly critical times for our customers … [but] what we’re seeing is this is not a trend. SAP projects are continuing to go forward,” she said. “Our experience is that even in this macro environment, companies are standing firm.” [...]
Eric Kimberling |
Good post. It’s unfortunate, but sometimes it takes a bad economy in order for companies to rationalize their investments in ERP and other technologies. Even in good times, companies like Select Comfort, Hershey, etc. shouldn’t be implementing SAP if they can’t stay on time, on budget, and deliver measurable business benefits to the organization. Hopefully the trend toward demanding a rational return on investment in ERP technology will last long after the recession ends.
Eric Kimberling
Panorama Consulting Group <a href="http://www.panorama-consulting.com" title="http://www.panorama-consulting.
" target="_blank">www.panorama-consulting.com</a>
Jack |
<strong>career harmony</strong>
Although I understand the gist of what you are trying to say, there are still a few points that I need further clarification on.
liger |
<strong>hey</strong>
everything dynamic and very positively
crm companies |
<strong>crm companies</strong>
Good post. I am looking into these issues on my blog.
What’s the real trend in failed SAP projects? - SAP Watch |
[...] often joke that anything that happens three times signals a trend. So when you consider Select Comfort’s announcement last month that it was halting its SAP ERP implementation as part of a cost cutting measure, it would seem SAP is one step away from being blamed for [...]
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