3 ms·
Former SAP employee here, who btw, is very critical of SAP. I also happen to have worked in Escalation Management at SAP, who's prime responsibility was to take
by mbesto 8y ago
Former SAP employee here, who btw, is very critical of SAP. I also happen to have worked in Escalation Management at SAP, who's prime responsibility was to take SAP projects that were about to go south and put them into "escalation" before they the hit newspapers.
Let me try to explain the mystery around SAP.
1. Most of the situations where SAP projects go haywire is largely due to (a) incorrect implementation by the service integrator and (b) challenges between business processes and systems support for those business processes. Sally in accounting wants to see sales per unit for the Germany promotional rollout, while Karen in marketing wants to see overall sales for 100 store locations in both Germany and Netherlands. The NL's retail stores don't split out VAT because their POS systems don't allow you to do that...etc etc. You can see where this is going...
2. Implementing ERP at the global level is incredibly complex. There's this idea (especially in the HN circles) to just "throw SaaS" at the problem, but it's not that simple. If you haven't been involved with an implementation at this size, it's not worth discussing. It's a wonderful hodgepodge of culture challenges, project management methodology clashes, and misalignment of strategy.
3. Yes, no one ever got fired for hiring SAP, just like they did with IBM. This is obviously changing, but still has some truth to it (see next point).
4. Honestly, being a CIO of a global F500 company absolutely sucks. If you try to stick your head out and do anything innovative and it fails, your axed. Many CIOs simply go into turtle mode - protect the budget you're given by the CFO and just don't f anything up. A CIO who choses to build a custom ERP and fails will be fired 100x faster than one who uses a packaged solution and it fails.
5. What's the alternative? Oracle? At this level, they're all the same (ok, not totally true, but generally accurate).
Happy to answer any questions...this area is unfortunately/fortunately close to my heart.
- baxtr 8y agoThanks for sharing, great insights there! How do you see the chance for classical “low-end disruption” like Christensen described? i.e. small players buy small solutions because they’re cheaper and have less scope. Then larger companies start using the low-cost software etc.
- mbesto 8y agoJust look at Concur, Fieldglass, SuccessFactors, BusinessObjects, etc All were acquired by SAP because SAP can't do SaaS right and filled specific product areas of ERP. SalesForce is also the greatest example of someone who started fairly small scope (small team CRM) and moved into bigger scope (enterprise CRM + enterprise application platform development).
- brazzledazzle 8y agoSeems like Concur has been suffering under SAP based on the outages I keep seeing.
- JacobDotVI 8y agoGreat insights. Are you seeing startups that grow into multi-nationals adopting SAP? or are their smaller system growing up with their needs? E.g. what does Google, etc. use for ERP?
- mbesto 8y agoAmazon is home grown. Apple is definitely a big SAP shop. Honestly don't know the others, but I would guess SAP/Oracle (and very likely under very strict NDA).
- zaphar 8y agoGoogle had NIH syndrome to a rediculous degree. I don't know what they use for ERP but when I was there, external software had a shelf of just a few years before a Google engineer was sufficient annoyed to write a replacement in his 20% time.
- rwmj 8y ago> 5. What's the alternative? Oracle? I don't think it's possible for software to suck worse than the Oracle E-Business Suite expenses reporting software.
- rbanffy 8y agoAll enterprise software suck at one function or another. In expense reporting, at least, sucking really badly reduces the amount the company needs to reimburse ;-)