Is There a Problem with Gerry Weber and SAP?

Executive Summary

  • SAP has seen a significant drop in its stock price and bankruptcy.
  • Gerry Weber has also been going through many system changes.
  • Are these financial problems related to their IT changes?

Introduction

Pedro Rodriguez made the following observation about the retailer Gerry Weber.

“Gerry Weber total shares value is slowly approaching the total cost of a SAP project (Around 10 millions) just after 3-4 years of introducing state of the art SAP S/4 HANA into their retail system. Previous company share value was around 1000-500 millions.” 

When we read this we knew that S/4HANA has failed virtually everywhere it has been implemented as we covered in the article S/4HANA Implementation Study.

However, we weren’t sure of Gerry Weber had implemented S/4HANA. Pedro pointed us to this link, which shows Gerry Weber implementing ERP along with retail solutions, including SAP’s retail industry solution which is called FMS (renamed AFS).

What is SAP FMS?

FMS is described by an SAP consulting company that would not care if anything they wrote is true as the following:

“SAP FMS brings together wholesale, retail and fashion specific processes in one back-end system. FMS was released to the market in June 2014.”

As with most industry solutions, there is normally very little development work put into them, and they are primarily a way to market SAP’s ERP system. But FMS works for either ECC or for S/4HANA. Actually, let us moderate that to SAP says that FMS works for ECC or for S/4HANA (although only for ECC on HANA).

This slide is in German, but it shows how SAP replaced (Microsoft Dynamics) in 2015….or at least was planned to. Notice the Tyco Retail Solution and GKSoftware with planned implementations after 2017. 

Problems with RFID and SAP ERP?

The article by Rethink Research called Gerry Weber RFID Overhaul-Points at Cautionary-Tale for IoT in 2016 was curious in that it laid out problems with connecting IoT to their ERP system.

“German fashion retailer Gerry Weber is dismantling its current RFID inventory system after just five years, citing its failure to keep up with business requirements. It is a cautionary tale for any business considering using IoT technology to improve efficiency, but it appears that Gerry Weber can afford to swallow the bitter pill. The crux of the problem is that the retailer cannot integrate its current RFID inventory management system into its new Enterprise Resource Planning (ERP) platform, which was commissioned two years ago from SAP – a German business software specialist. Gerry Weber believes that the time is right to use a standard software implementation, rather than the customized one used to launch the RFID platform in 2009.

For the company, it comes amidst a difficult few quarters in terms of financial results, but it seems that the new system offers a solid return on investment – as part of a pledge to its shareholders to streamline its retail operations following declining earnings. It hopes that the new ERP platform will allow it to incorporate NFC and Bluetooth beacons, as well as footfall analysis for store layout optimization.”

This is curious. Why can’t RFID information be integrated to SAP ERP? Also, what is the new ERP platform?? What does that mean exactly, is Gerry Weber moving to a non-SAP ERP system?

“The decision to implement a new retail ERP system was made two years ago. The current system is no longer keeping up with today’s requirements and the increasing challenges of internationalization,” said CIO Michel Feurich, speaking to German publication RFID im Blick. “It cannot keep up in terms of scalability. Now we want to promote the RFID success story and be more innovative. We have set the course. We are in the middle of a restart.”

Problems with Decisions Made Only Two Years Ago

If a decision made two years in the past is not reliable, Gerry Weber will never be able to manage IT because it requires planning to make appropriate IT investments.

If one looks at IT departments all around the world, nearly all their decisions will be more than 2 years old. Also, why can’t SAP ERP keep up in terms of scalability. Not all data from the RFID needs to be sent to ECC. It can be aggregated to an external database and then only portions sent to SAP ERP.

“But to return to Gerry Weber and its overhaul, an ERP system provides businesses with a complete overview of their business processes, if all goes to plan. They usually comprise a number of separate applications, each managing a component, such as distribution, accounting, production, and the CRM.”

No, CRM is not considered part of ERP systems.

ERP Systems Don’t Pay for Themselves?

“Businesses can run into a lot of unexpected costs if they have to spend a lot of time and resources adapting the ERP to accommodate their existing operations, and the ERP systems are usually sold as part of a lengthy contract. But in the best case scenarios, the efficiencies that can be found and managed through the program more than makes up for the cost of the platform.”

Yes, almost all ERP implementations overrun their budget, and the research of academics can’t find a positive return on ERP implementations which we covered in the book The Real Story Behind ERP. That is in the vast majority of cases the ERP system implementation TCO will not be paid for with any business improvements. ERP does have a guaranteed ROI…but only for the consulting firms and the software vendor.

Conclusion

We cannot find evidence that Gerry Weber has implemented S/4HANA. Although Gerry Weber’s timing of their move to SAP could have made them a potential customer for S/4HANA, and SAP would certainly have tried to move them to S/4HANA. But there is no information available thus far that states they went to S/4HANA.

Here is what comes across in the articles about Gerry Weber.

  • What does appear to be true is that Gerry Weber has clearly implemented a lot of money into SAP solutions.
  • We are very confident that they would have received little benefit from the FMS solution, as it was really just intended to be used to sell Gerry Weber.
  • The comments made by Gerry Weber to Rethink Research are odd and make us wonder what is behind them. Most companies that work in retail have no problem managing their inventory using bar codes. It is unclear why Gerry Weber has to have RFID.
  • Overall, the articles and the information contained within makes us wonder if the Gerry Weber IT department knows what it is doing. They appear to be a weak IT department that is easily preyed upon by both vendors and consulting firms.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other SAP Content

References

https://www.sap.com/germany/documents/2017/06/d0ff8d52-be7c-0010-82c7-eda71af511fa.html

https://www.applexus.com/why-fashion-businesses-should-migrate-from-AFS-to-FMS

http://tycoretailsolutions.com/Pages/Home.aspx

https://www.handelsblatt.com/today/companies/gerry-weber-older-generation-to-blame-for-insolvency-at-one-of-germanys-largest-fashion-firms-/23919334.html

*https://rethinkresearch.biz/articles/gerry-weber-rfid-overhaul-points-at-cautionary-tale-for-iot/

https://www.worldfootwear.com/news/-gerry-weber-files-for-bankruptcy/3604.html

How to Become an Approved Analyst for SAP?

Executive Summary

  • SAP has a specific set of rules for who they recommend as analysts for the IT media to speak to.
  • See why Brightwork Research & Analysis does not meet these criteria.

Introduction

Brightwork Research & Analysis is not on the approved analyst list of SPA. Find out why.

Comment by Ahmed Azmi

“I think SAP is now at the lowest point in their entire history. Lawsuits from all sides, bribes on every continent, the highest project failure rate in the industry, and now pulling the plug on internal development for all in-house products. How people can look at all this and spin it positively is beyond my comprehension but again, I am not an “approved” SAP analyst.”

The Lack of SAP Approval for Our Research

“Ahmed’s comment is quite accurate. Brightwork is not on the approved lists of analysts that media outlets are directed to speak to.

Curiously, and perhaps coincidentally, all of the entities on the approved list are in some shape or form compensated by SAP. In SAP’s view, the most unbiased sources and best sources of information on SAP are those sources that are paid by SAP.

But please, stifle any laughter as it disrespects the process. You have to meet a very high standard to get onto this list. First and foremost you must have a bank routing number and account number where they can deposit funds. Or you can be directed by SAP to their clients who required “advisement.”

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other SAP Content

How Accurate Was SAP in Saying it is Leonardo that Ensures Frozen Ice Cream Delivery?

Executive Summary

  • What SAP Said about Leonardo Ensuring frozen ice cream delivery.
  • The truth about Leonardo ensuring frozen ice cream delivery?

What SAP Said About Leonardo Ensuring Frozen Ice Cream Delivery

SAP proposed in a video that Leonardo was essential to the delivery of frozen ice cream.

The Truth About Leonardo Ensuring Frozen Ice Cream Delivery?

As we covered in the article Is it SAP Leonardo that Ensures Frozen Ice Cream Delivery?, Leonardo does not improve the delivery of frozen ice cream. In this article, SAP seems to confuse Leonardo with the transportation and refrigeration equipment that actually keeps the ice cream frozen.

Conclusion and Calculation

SAP receives a 0% accuracy rating for how Leonardo can ensure or improve frozen ice cream delivery.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other HANA Content

References

https://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP in Calling All Non-HANA DB’s Legacy?

Executive Summary

  • What SAP said about all non-HANA DB’s legacy.
  • The truth about all non-HANA DB’s legacy?

What SAP Said About All Non-HANA DB’s Legacy

SAP has repeatedly stated that all non-HANA databases that compete with HANA are legacy.

The Truth About All Non-HANA DB’s Legacy?

As we covered in the article How Accurate is SAP in Calling Non-HANA DBs Legacy?, we explained that the databases that SAP calls legacy are more successful than HANA, and all the evidence indicates that they perform better than HANA. SAP is comingling the fact that these databases preceded HANA with these databases being legacy. All of these databases have massive customer bases and are perpetually kept up to date.

Conclusion and Calculation

SAP receives a 0% accuracy rating for all non-HANA DB being legacy.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other HANA Content

References

https://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP on Only SAP HANA Being an ACID Database?

Executive Summary

  • What SAP said about only SAP HANA being an ACID database.
  • The truth about only SAP HANA being an ACID database?

What SAP Said About Only SAP HANA Being an ACID Database

SAP made some strange statements about HANA being the only ACID database. Or that it was the only ACID database with a number of other features. The intent appears to have been to have prospects believe that being ACID compliant is a major differentiator for HANA versus competitors.

The Truth About Only SAP HANA Being an ACID Database?

As we covered in the article How Accurate is SAP on Only HANA Being an ACID Database?, all of the databases that HANA competes with are ACID compliant and have been for decades. This phrasing can only have been created to mislead readers.

Conclusion and Calculation

SAP receives a 0% accuracy rating for ACID compliance being some unusual or special feature exclusive to HANA.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other HANA Content

References

https://www.sap.com/cmp/ppc/crm-xm16-gam-it-bd/index.html#

How Accurate Was SAP on S/4HANA in the Cloud Being Easily Extended?

Executive Summary

  • What SAP said about S/4HANA in the cloud is easily extended.
  • In this article, we fact check the accuracy of S/4HANA in the cloud is easily extended.

What SAP Said About S/4HANA in the Cloud Being Easily Extended

SAP released a major paper titled SAP S/4HANA Extensibility for Customers and Partners. In this paper, SAP proposed that S/4HANA in the cloud would be “extensible” (and introducing a new word to the SAP lexicon) and made a variety of claims ranging from improved upgradeability to reduced implementation timelines.

The Truth About S/4HANA in the Cloud Being Easily Extended?

As we covered in the article How Accurate is SAP on the Use of the Term Extensible for S/4HANA in the Cloud?, the term extensibility is a synonym for customization. This highly dishonest article by SAP attempts to thoroughly mislead the reader into accepting both a number of false assumptions about the history of SAP (for instance that R/3 became popular because of low cost “extensibility”) as well as incorrect assumptions about the future. In the paper, SAP proposes things that customers will be able to leverage that literally do not exist.

Conclusion and Calculation

SAP receives a 0% accuracy rating for S/4HANA in the cloud being easily extended

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other S/4HANA Content

References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was IT Media on SAP to Host its Own Products and not Rely on AWS?

Executive Summary

  • SAP stated that they would only host their own products and not rely upon AWS.
  • This turned out to be false, and in this article, we cover how IT media covered SAP’s statements.

Overall Articles or Sources Used for the Study’s Calculation

Below are recordings of each article on SAP Netweaver, along with the year. We have the individual articles in our database, but only publish the year to keep the list of a reasonable length.

  • Diginomica (2015)

This came to 1 individual article on SAP to Host its Own Products and not Rely on AWS.

Subset: Sources that Verified SAP to Improve Accuracy

In this section, we transition to the number of sources that verified what SAP stated either through their own analysis or through quoting other sources such as IT analysts.

  • Diginomica did not question Steve Lucas on this statement.

This came to 0 sources that verified SAP’s statements on Netweaver.

Conclusion and Calculation

From this, we applied the calculation 0/1 to arrive at 0% of the sources in some way enhanced their accuracy by offering more accurate information on the subject of SAP to Host its Own Products and not Rely on AWS.

As is covered in the in A Study into the Accuracy of SAP, SAP switched its position within 2 years to a multi-cloud strategy where it encouraged customers to use outside hosting and extending their partnership with Microsoft and Azure.

The result is that IT media entities that questioned or offered contrary information on SAP Netweaver were more accurate than those that did not.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into Accuracy of the IT Media on SAP.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other SAP Content

How Accurate Was SAP on Parallel Processing Working in SNP?

Executive Summary

  • For years SAP has stated that parallel processing works in SNP.
  • In this article, we review the accuracy of this claim. 

What SAP Said About Parallel Processing Working in SNP

For years SAP included a parallel processing field in the SNP optimizer, giving the impression that one could choose how many processors to address in the optimization.

The Truth About Parallel Processing Working in SNP?

After roughly 5 years using the parallel processing setting in SNP, we decided to test the performance of the optimizer with using one processor versus using multiple processors. What we found was there was no difference in the runtime! We covered this in detail in the article How the Parallel Processing Function for the SNP Cost Optimizer Does not Work.

“This is amazing that SAP has had this setting available on the optimizer profile and that the parallelization functionality has either never worked correctly or at some point stopped working properly back in 2003, at least the OSS notes go back to 2003. Secondly, as I am running into problems with it documented as not working in 2013, this means that SAP has not fixed the problem in a decade. I wonder if parallelization has been removed from SAP’s sales presentations on the SNP optimizer. I can’t say for sure – but I have a feeling SAP salesmen have not been telling potential customers that parallel processing is broken.”

The issue is that parallelization of problems is tricky, so SAP simply gave up…..but they never removed the field, giving SAP configurators and testers the impression that it worked.

Conclusion and Calculation

SAP receives a 0% accuracy rating for parallel processing in SNP working.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other SAP Content

How Accurate Was SAP on Shelf Life Planning Working in APO?

Executive Summary

  • For years SAP has stated that shelf life planning works in SNP.
  • In this article, we review the accuracy of this claim. 

What SAP Said About Shelf Life Planning Working in APO

For years SAP proposed that its shelf life functionality in SNP within APO worked perfectly fine. They told many customers during the sales phase that shelf life planning was included in standard SNP.

The Truth About Shelf Life Planning Working in APO?

This story changed for customers after they implemented SNP. We explained this in the following article Shelf Life Planning in SNP Does Not Work and Likely Will Not Work In the Future. 

“SAP admits that shelf life does not work for CTM or heuristics at all. However, it 1/2 proposes that shelf life works “in a limited way” when the optimizer is used if the steps above are followed. When you read the fine print, you find that shelf life only works by “setting penalty costs” and does not stop the material from being used in planning. However, this is a mismatch with the requirements. Expired products cannot be sold in most cases, and actual shelf life functionality would prevent the accumulation or movement of expired product.”

Conclusion and Calculation

SAP receives a 0% accuracy rating for shelf life functionality working in APO.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other SAP Content

References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.

How Accurate Was SAP on HANA Having a Lower TCO?

Executive Summary

  • For years SAP has stated that HANA has a lower TCO than competing databases.
  • In this article, we review the accuracy of this claim. 

What SAP Said About HANA Having a Lower TCO?

SAP has for some time stated that HANA has a lower TCO than competing databases from Oracle, IBM, and Microsoft. SAP sponsored a study from Forrester that we covered in the article How Accurate was Forrester’s TCO Study for SAP HANA? which SAP has used to promote this concept of HANA having a lower TCO.

The Truth About HANA’s TCO?

As one of the most significant researchers in HANA, a number of factors about HANA made us skeptical of this claim on the part of SAP. First, the Forrester “research” was clearly rigged by Forrester to make SAP happy with their purchases. The details are fully explained in the article above. But the fact that we are the only entity to call out Forrester for this extremely poor quality rigged research is one indicator of how little critical thought or expression there is in the enterprise software market.

We published the first and only independent study on HANA’s TCO in A Study into SAP HANA’s TCO. This study estimated that not only did HANA not lower TCO but that HANA had to have a higher TCO than the competing options in the market

Conclusion and Calculation

SAP receives a 0% accuracy rating for HANA lowering TCO.

Link to the Parent Article

This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

SAP Indirect Access Research Contact

  • Interested in Our Indirect Access Research?

    We offer the most in depth research into SAP Indirect Access.

    • We have a better track record of being correct than any of the well-known brands.
    • If this type of accuracy interests you, contact us and we will be in touch.

Search Our Other HANA Content

References

The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.