Why SAP Projects Fail to Deliver ROI and How to Change It

By |July 8th, 2009|

One reason businesses deal with failure of results in SAP implementations is lingering memories of the Y2K effect. At that time, businesses everywhere simply wanted to install ERP systems to take care of the looming potential crisis over the millennial changeover. After Y2K, the brief downturn in demand for ERP systems, along with the tech bubble burst in the stock market, created additional pressure. Unfortunately, they also overlooked SAP's full potential throughout the chaos. Because of this [...]

Change How You Look at SAP to Create ROI

By |February 20th, 2009|

After participating in several ROI-focused projects, I learned many lessons. A few of those projects achieved great results, but unfortunately many more were mediocre. I will begin a series of articles on how to achieve value and ROI from an SAP implementation. For many years, a lot of literature, guidance, case studies, success stories and methods has discussed using SAP to automate processes and reduce costs. Unfortunately, a company may struggle to find help to achieve revenue and profitabil [...]

Using SAP to Improve Revenue and Profitability

By |January 17th, 2009|

For years, CIOs have been under pressure to cut costs, improve operational efficiencies, and automate the enterprise. CIOs who implement SAP have largely been effective at streamlining the back office. They have also succeeded at optimizing the extended supply chain because SAP supports execution activities well, therefore reducing costs. However, times are changing. For IT and SAP to successfully grow revenue and profitability, a business needs to understand where technology fits into the puzz [...]

Planning For a Smooth SAP Go-Live Part 1

By |October 27th, 2008|

  After you have done all the research and gone through all the trouble to make your project a success, four key areas can still cause trouble during your SAP go-live: 1. SAP Security and Authorizations. 2. Master Data. 3. Business process changes, process gaps (missed processes and exceptions). 4. SAP ABAP Custom Development. While each of these areas consistently cause trouble at go-live, resolving the first item (Security and Authorizations) and the third item (Process issues) should [...]

Planning For a Smooth SAP Go-Live: Part 2

By |October 25th, 2008|

2. SAP Master Data Ideally, your master data processing should begin early in the process. During the blueprint phase, you should identify legacy data sources, raw legacy data extracts, and key data requirements or data settings. Even though it won’t be perfect, you should determine an initial scope, and experienced developers should be able to point you to the type of raw data records they will need to begin working with. When you begin your SAP project, you should immediately ask for SAP mast [...]

Planning For a Smooth Go-Live: Part 3

By |October 24th, 2008|

3. ERP or SAP Process issues Let me start with a caveat to this section. No matter how good, thorough, experienced, or conscientious a consultant or a core team member is, a project will always experience a few process gaps, and an occasional completely missing process discovered at go-live. Now that the caveat is out of the way, process problems can occur for many reasons: inexperienced consultants, company employees who miss some of the process exceptions, inadequate training, insufficient in [...]