What Should Customers Do About S/4HANA Failures

Executive Summary

  • S/4HANA has sucked massive amounts of resources from SAP customers that implemented it.
  • We will recommend what to do about this now that S/4HANA has failed so dramatically.

Introduction

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

1. Adjust Who One Sees as Sources of Information

Stop listening to SAP or Deloitte & co or any of the entities laid out in the article Who Was Right About S/4HANA Readiness? without finding independent corroboration.

Without fact checking these entities, customers are guaranteed to be lied to.

2. Just Say No to Vendor NDAs

Never accept an NDA from a vendor. Never implement software that has an NDA attached.

3. Inform SAP and Your Consulting Partner You Know You Were Lied To

Inform SAP that continual lying will not be tolerated and that immature products cannot simply be misrepresented without consequences.

4. Request Compensation

Demand compensation for implementing a product that SAP knew was defective when it was being sold. This means that SAP would be liable beyond the license amount, but also for restitution of implementation monies.

5. Question Compliant IT Departments

IT departments are also culpable in this equation. Many IT departments wanted to implement S/4HANA so they could get the fact they had managed a S/4HANA project on their resume. If the business in companies continues to allow their IT departments to be so easily manipulated by software vendors and consultancies, they will not get the systems that they need to run their business. The waste in the SAP space is enormous and will continue until the point where other parts of the company begin to ask questions.

6. Public Audits

Public and government agencies that implemented S/4HANA should demand audits of these implementations. What was promised prior to the S/4HANA implementation and what was actually delivered? It is well known that SAP and SAP consulting firms consider public firms easy targets. They will continue to take this view as long as no one requests that public taxpayer-funded entities are audited.

Conclusions

Customers were aggressively misled and the culprits are obvious. Furthermore, there are specific steps that SAP customers can take to use the information of S/4HANA to make positive changes in how they manage SAP.

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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