SAP & IT Outsourcing – RESULTS MATTER!

By |June 24th, 2014|

  Business today is looking for a way to provide shareholder value. Outsourcing has become a popular method to boost stock values because shareholders believe it will reduce costs. While your share price may increase in the short term, you may not see the cost savings, and your share price will suffer later as your cost basis increases. Unfortunately, the cost saving "dream" presented during all those sales pitches often become a "nightmare" of spiraling costs and management headaches. I [...]

SAP and IT Outsourcing – Vendor Management Considerations

By |May 7th, 2014|

  A common trend in IT is outsourcing. The allure of smooth sailing, fewer headaches, and lower cost generally capture senior leadership's attention. The sales pitches about all of the success stories are often compelling. However, just like calm (but murky) waters on a mild day hide the rocks under the surface, so do many of the outsourcing vendor claims. With some background understanding (and a lot of due diligence), you can avoid most of those rocks and navigate the waters. However, [...]

SAP & IT Outsourcing – Vendor Management Tactics & Strategies

By |May 7th, 2014|

In an outsourcing arrangement you have one of two approaches: work up front to reduce potential disputes or be prepared to deal with the fallout. The less aggressive you are with your outsourcing management, the more profitable you are to the outsourcing company. Does fallout mean you will be in court? Sometimes yes, but sometimes it means re-negotiating a contract, or worse still, skyrocketing costs which can exceed the original costs. Outsourcing Relationship or Arrangement The sales personne [...]

SAP IT Governance, SAP Program Management, SAP PMO Metrics

By |January 9th, 2012|

On this forum, the most frequent response from the project and program managers was a call for independence. However, when I raised the issue of project or program manager accountability, metrics, performance, and avoidance of project messes, no one addressed the problem. Is it any wonder so many business application projects and programs get into trouble, go over budget, and exceed the allotted time when the individuals responsible for coordinating and evaluating them don't want clear accounta [...]

ERP II & ERP III – SAP Business IT Revolution

By |October 31st, 2011|

The day after I released my last post (SAP IT Governance – Achieve Business IT Engagement), techrepublic.com published a review of the CIO future direction. While I do not agree with all of the Gartner conclusions they published, I certainly agree with the “new CIO manifesto” (TechRepublic: Get drastic: 15 IT best practices to kill). Reading through the comments left on the TechRepublic post was enlightening. However, most of the comments focused on the details of one or two points of disagreem [...]

SAP IT Governance – Achieve Business IT Engagement

By |October 24th, 2011|

Proper SAP project governance is a function of the business in partnership with IT. With the exception of a few of SAP’s technical applications (such as parts of Solution Manager, HANA, etc.), the entire application suite is about business-- business transaction processing and business processes. If key business resources are not directly engaged in SAP project governance, you may never realize the SAP benefits you expect. This leads me to ask: What benefits you expect from an SAP implementatio [...]