Is it Really Easy to Point Fingers at SAP?

Executive Summary

  • When we exposed the falsehoods proposed by SAP around S/4HANA we were told it was easy to point fingers at SAP.
  • We provide the reasons why this is a false argument.

Introduction

This article is in response to a question we received about the reports of problems with S/4HANA.

The Quote on How Easy it is to Point Fingers

Easy to point fingers,now what? Name one mega ERP provider, there are major disasters associated with it…from SAP to workday. Two sides of the coin..three in this case: Software developer, SI and customer. SAP has brilliant minds, I am lucky to know many, but SAP does not own the customers’ processes. Deloitte abounds best consultants, I was there, but Deloitte might not have the best insight into new SAP products or the customers’ real requirements. Customer is not always right here and can certainly be at fault for turning blind eyes counting on SAP or SI to take you down to the unnumbered new house. Until a day everybody runs a process that spells 1,2,3, best chance of success always goes to the three-horse carriage.

Our Response

“The first premise of your comment is not correct. The SAP space is primarily filled with financially biased entities that rig information against buyers. They not only don’t point fingers, they mindlessly repeat whatever SAP says. So as we are one of the only entities of many thousands to call out SAP, it appears that pointing fingers at SAP is in practice quite difficult.

Secondly, we pointed fingers before any of this happened. We predicted the wide-scale problems with S/4HANA while Deloitte and co. were telling everyone they should move to S/4HANA.  Just one of our articles dealing with clear exaggerations around S/4HANA goes back to April 2016 in When Articles Exaggerate SAP S/4HANA Benefits.

We covered who got S/4HANA right and who got it wrong in this article Who Was Right About S/4HANA Readiness.

As far as ERP projects having high failure rates this is true, but S/4HANA has a higher failure rate than any other we track — and this is for one obvious reason. Since its introduction 4 years ago, S/4HANA has not been ready to be implemented. SAP has falsified an enormous number of its go-lives. See our research for the details. http://bit.ly/2EuoqPv

S/4HANA has failed as much as it has because it was a product that was immature but presented as ready. If companies had known the actual maturity of S/4HANA, it would likely have not been implemented.

Neither the article nor any of the comments have anything to do with the topic of the customer’s processes, and does not state or take the position that the customer is always right. In any case, these were not the primary factors for the S/4HANA failures. Many of the S/4HANA customers were already ECC customers, and S/4HANA has no new functionality, so why would the customer processes be related to the issue? Secondly, customers are actively hiding S/4HANA failures. So this is not customers making the claim. This is the evidence coming out through direct contacts from lower level employees direct to us, or from media coverage.

We called this correctly years ago, while all of the brilliant minds you talked about in SAP mislead customers about S/4HANA. If you want to talk about solutions, companies and taxpayers could have saved many hundreds of millions if they had listened to us rather than Deloitte and co. That seems like a pretty good solution to us.”

Conclusions

One of the biggest false claims is that it is easy to point fingers at SAP. In fact, it is very rarely done. The reason being that most of the entities in SAP are incentivized not to point fingers at SAP.

Search Our Other S/4HANA Content

Brightwork Disclosure

Financial Bias Disclosure

This article and no other article on the Brightwork website is paid for by a software vendor, including Oracle and SAP. Brightwork does offer competitive intelligence work to vendors as part of its business, but no published research or articles are written with any financial consideration. As part of Brightwork’s commitment to publishing independent, unbiased research, the company’s business model is driven by consulting services; no paid media placements are accepted.

HANA & S/4HANA Research Contact

  • Interested in Research on S/4HANA & HANA?

    It is difficult for most companies to make improvements in S/4HANA and HANA without outside advice. And it is not possible to get honest S/4HANA and HANA advice from large consulting companies. We offer remote unbiased multi-dimension S/4HANA and HANA support.

    Just fill out the form below and we'll be in touch.

References

TCO Book

 

TCO3

Enterprise Software TCO: Calculating and Using Total Cost of Ownership for Decision Making

Getting to the Detail of TCO

One aspect of making a software purchasing decision is to compare the Total Cost of Ownership, or TCO, of the applications under consideration: what will the software cost you over its lifespan? But most companies don’t understand what dollar amounts to include in the TCO analysis or where to source these figures, or, if using TCO studies produced by consulting and IT analyst firms, how the TCO amounts were calculated and how to compare TCO across applications.

The Mechanics of TCO

Not only will this book help you appreciate the mechanics of TCO, but you will also gain insight as to the importance of TCO and understand how to strip away the biases and outside influences to make a real TCO comparison between applications.
By reading this book you will:
  • Understand why you need to look at TCO and not just ROI when making your purchasing decision.
  • Discover how an application, which at first glance may seem inexpensive when compared to its competition, could end up being more costly in the long run.
  • Gain an in-depth understanding of the cost, categories to include in an accurate and complete TCO analysis.
  • Learn why ERP systems are not a significant investment, based on their TCO.
  • Find out how to recognize and avoid superficial, incomplete or incorrect TCO analyses that could negatively impact your software purchase decision.
  • Appreciate the importance and cost-effectiveness of a TCO audit.
  • Learn how SCM Focus can provide you with unbiased and well-researched TCO analyses to assist you in your software selection.
Chapters
  • Chapter 1:  Introduction
  • Chapter 2:  The Basics of TCO
  • Chapter 3:  The State of Enterprise TCO
  • Chapter 4:  ERP: The Multi-Billion Dollar TCO Analysis Failure
  • Chapter 5:  The TCO Method Used by Software Decisions
  • Chapter 6:  Using TCO for Better Decision Making