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A perfect example for a failure for this is Lidl's Elwis, they invested 500 million € into it and in 2018 they aborted the entire project. English article: htt

A perfect example for a failure for this is Lidl's Elwis, they invested 500 million € into it and in 2018 they aborted the entire project. English article: https://www.handelsblatt.com/today/companies/programmed-for-disaster-lidl-software-disaster-another-example-of-germanys-digital-failure/23582902.html?ticket=ST-1784344-eCkejiV7igUviBx35ZI9-ap2 https://www.handelsblatt.com/today/companies/programmed-for-... Key quote: >Unlike many of their competitors, Lidl bases its inventory management system on purchase prices. The standard SAP for Retail software uses retail prices. Lidl didn’t want to change, so the software had to be adapted.

thdrdt 7y ago
But I still think this is a failure of SAP. What if the business model of Lidl is way better than the standard? Then Lidl is very wise not to follow how SAP works.
- Aeolun 7y ago
  But very unwise for choosing SAP. Should have spent 500M on something that fit their needs.
- cc81 7y ago
  It is very possible but then that system is not for you. These systems are incredibly complex already and while there will always be some customization you should question yourself if this is where your competitive advantage is? Is Lidl earning more money than their competitors because they base their inventory management system on purchase prices while others do not? Then build/buy a system that handles that and it could very well be worth it if you look at the business case But if it is like that because that is how we started out and we cannot quantify how much better it is...then maybe you should just change your process.
hutzlibu 7y ago
I believe, that the difference between purchase price and retail price is a major and tricky one, if you set for retail, but if you can't solve it for 500 million, then there is something wrong with your software. Also "Critics inside Lidl say that KPS was too slow. But Matthias Nollenberger, a senior manager at KPS who was responsible for overseeing the eLWIS project, says his company was working too short deadlines compared to other similar projects" I belive when you have the choice between aborting 500 million and increasing some deadlines, I doubt they were the problem. It simply was not possible to adobt SAP with reasonable amount of money. And the consulting company or SAP should have said that at some point clearly.

thdrdt 7y ago

But I still think this is a failure of SAP. What if the business model of Lidl is way better than the standard? Then Lidl is very wise not to follow how SAP works.

Aeolun 7y ago
But very unwise for choosing SAP. Should have spent 500M on something that fit their needs.
cc81 7y ago
It is very possible but then that system is not for you. These systems are incredibly complex already and while there will always be some customization you should question yourself if this is where your competitive advantage is? Is Lidl earning more money than their competitors because they base their inventory management system on purchase prices while others do not? Then build/buy a system that handles that and it could very well be worth it if you look at the business case But if it is like that because that is how we started out and we cannot quantify how much better it is...then maybe you should just change your process.

hutzlibu 7y ago

I believe, that the difference between purchase price and retail price is a major and tricky one, if you set for retail, but if you can't solve it for 500 million, then there is something wrong with your software. Also "Critics inside Lidl say that KPS was too slow. But Matthias Nollenberger, a senior manager at KPS who was responsible for overseeing the eLWIS project, says his company was working too short deadlines compared to other similar projects" I belive when you have the choice between aborting 500 million and increasing some deadlines, I doubt they were the problem. It simply was not possible to adobt SAP with reasonable amount of money. And the consulting company or SAP should have said that at some point clearly.