How Accurate Was SAP in Keeping S/4HANA Exclusive to HANA?

Executive Summary

  • What SAP said about keeping S/4HANA exclusive to HANA.
  • How our prediction stacked up against SAP.

What SAP Said About Keeping S/4HANA Exclusive to HANA

When SAP introduced S/4HANA, they made the very unusual policy of making S/4HANA and HANA a packaged deal. This meant that S/4HANA could only work on HANA, which pushed out the traditional database vendors like Oracle, IBM, and Microsoft from the S/4HANA database market.

What We Said About S/4HANA’s Exclusivity to HANA

In 2016 we predicted, in the article Why SAP Will Have to Backtrack on S/4 on HANA Database, that SAP would change this policy.

The logic for this prediction was that it would be too costly in terms of lost S/4HANA revenues to continue to hold to the exclusive relationship between S/4HANA and HANA.

In the intervening years, and in response to SAP’s aggressive marketing around column-oriented and “in memory” database benefits (which we covered in the article How Accurate Was SAP on In Memory Computing?) Oracle, IBM and Microsoft all swiftly added column orientated capabilities to their databases. In the article How Accurate with Bloor Research on Oracle In Memory?, we agreed with Bloor Research that columnar data stores for databases that supported ERP systems were more of a marketing gimmick. Bringing extra complexity into the environment that would not be leveraged by the ERP system, then actual need. But as Oracle, IBM, and Microsoft followed suit, there was never any reason, outside of the monopolistic lock-in restriction, for SAP to be excluded from supporting S/4HANA. However, as an important side note, it should be observed that both Oracle and Microsoft play the same corrupt game of restricting their applications to their databases.

When Underhanded Monopolistic Vendors Complain About About Other Underhanded Monopolistic Vendors — Without Blushing

While Oracle, IBM, and Microsoft resources screamed like banshees about how SAP had locked them out of supporting S/4HANA, they tended to become very quiet or change the subject when I pointed out that their employers did the same thing. This led me to create a hypocrisy article specifically for Oracle employees with Teaching Oracle About Hypocrisy with Lock-In. 

What Happened with SAP’s Policy?

SAP could change its policy with HANA and S/4HANA tomorrow. However, after close to four years since our prediction, and over five years after SAP announced its policy, it seems likely now that SAP will not change the policy. In fact, not only did SAP not break the exclusive arrangement between HANA and S/4HANA, they have introduced other HANA locked applications such as C4HANA.

Therefore it is time to debit our long-running accuracy measurement on SAP for our miss on this topic.

Advice on Enjoying the S/4HANA Quiz

To see the full screen, just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP and the IT Analyst and IT Media Scores

SAP receives a 100% accuracy for its projection that it would keep S/4HANA exclusive to HANA.

Brightwork Research & Analysis Score

Our forecast for S/4HANA turned out to be incorrect. Therefore we have allocated a 0% accuracy for this prediction to our long term Study into SAP’s Accuracy.

Ignoring Our Accuracy

However, even with this miss, our combined predictive accuracy on SAP extremely high. SAP resources that have a problem with our research have refused to address this accuracy list, which is all supported by dated articles.

Link to the Parent Research 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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

References

How Accurate Was SAP in Projecting Qualtrics as a Strategic Acquisition?

Executive Summary

  • What SAP said about its acquisition of Qualtrics.
  • What actually happened with the Qualtrics acquisition?

Introduction & Update

This article (which is mostly the latter part of the article) was published on the 1st of May in 2020. At that point, we had enough information to declare that we had predicted the Qualtrics acquisition as a failure accurately. However, as of July 27, 2020, so almost exactly three months later, SAP announced it is spinning off Qualtrics.

Reading the articles reporting on this event, this quote was interesting.

Making the point, CNBC quoted analysts from Bernstein Research, which said it believes “many SAP investors do not fully understand Qualtrics,” and that the spin-out might “help at least as it relates to better understanding its value.” – Tech Crunch

What that means is what I had predicted — there is no natural overlap between Qualtrics and SAP. That fact was evident the day the acquisition was announced. Any survey software can be used to obtain information from users and there is no integration between Qualtrics and SAP. There was never any reason for SAP to buy Qualtrics.

This is stated, although in a more politically correct way by Christian Klein in the following quotation.

Christian Klein, SAP’s chief executive…added that Qualtrics was “not that close to the core” of SAP and had not been integrated as tightly as other acquisitions. – Financial Times

Yes. Well, it is not only “not that close to the core,” it has nothing to do with the core whatsoever.

Perfuming the Pig

SAP needs to get as much as it can to recoup as much of the overpaid portion of the $8 billion as it can. So SAP has to make it sound like Qualtrics is a great buy — as the following quotation illustrates.

Christian Klein, SAP’s chief executive, said that while Qualtrics had “performed above and beyond all expectations” an IPO was now a “win-win” for both sides. – Financial Times

Not it isn’t. If Qualtrics obtains anywhere close to the $8 billion that SAP paid for it (that is for the percentage they are offering for IPO), we have a large cowboy hat that we will eat.

Insert: Prepare to Eat Cowboy Hat

(We spoke too soon on this topic. After writing this we reviewed several Wall Steet analysts’ articles that stated that the value of Qualtrics in total is around $11.4 B (so higher than the 8 B SAP paid). This is not due to Qualtrics itself, but to the overheated stock bubble that has been promoted by the Federal Reserve — which has been stimulating the economy. Furthermore, both corporations have seen no reason to invest as much as normal into their own companies (due to the drop off in demand from Coronavirus) and have instead decided to put that money into the market.)

The Logic Presented For the Acquisition

There was also a logic I had never heard of before, for the Qualtrics acquisition covered in FT.

SAP said at the time of the acquisition, which priced Qualtrics at about 20 times its annual revenues, that it would help entice companies to adopt the German company’s S4/Hana software, by offering insights on their employees and customers. “There are millions of complaints every day about disappointing customer experiences,” said SAP’s former chief executive, Bill McDermott said as he laid out the rationale for the purchase. “This is called the experience gap.” – Financial Times

This is a bit ludicrous.

This can be interpreted as saying that SAP’s S/4HANA is so problematic that it requires survey software to register all of the complaints? For more on issues with S/4HANA see our research S/4HANA Implementation Study.

SAP Says: Qualtrics is Great — Please Buy It

SAP is really piling on the lies to try to move Qualtrics.

Mr Klein said the IPO “also enables Ryan [Smith] and his leadership team to really also go after the market outside of SAP . . . maybe over time to do some targeting acquisitions and so on.” “At the end, it’s also about retaining the best people you have,” he added, suggesting that the move was partly made to mollify Qualtrics’ management. “With this move, of course, we also now have Ryan and the leadership team fully excited about the years to come.” – Financial Times

Ok, what does that mean?

Qualtrics never had anything to do with SAP in the first place — and most of its market prior to the acquisition was outside of SAP. SAP salespeople can’t even reasonably be expected to push Qualtrics without specific incentives.

The second part of the quote implies that Qualtrics’ management had tired or SAP’s typical heavy-handed approach (see the article How Effective is SAP in its Acquisitions?) for coverage of SAP’s historical success ratio with acquisitions, and see the article How to Understand SAP’s Upcharge as a Service, for how SAP has previously alienated the senior management of acquired vendors.

Breaking New Ground in Information Technology: Qualtrics Used for Covid Survey?

Most recently SAP deployed Qualtrics to gather feedback from its customers’ employees about returning to workplaces in the wake of Covid-19.

That is just funny. SAP was dying to come up with ways to leverage Qualtrics, and just could not figure out any. Really, what does running a Covid workplace survey have to do with SAP’s applications?

Nothing.

But SAP bobbleheads not better than to agree that this is ridiculous on any public forum. SAP could say they were using Qualtrics to perform alien surveys on the moon and those that make their income from SAP would bobble their head in instant agreement.

The Overall Pitch on Qualtrics

The “mini-IPO” of Qualtrics is extremely odd. This is explained in the following quotation.

SAP plans to maintain majority ownership of Qualtrics, which is co-headquartered in Provo, Utah, and Seattle. Qualtrics’ leadership team intends to remain in place, including founder Ryan Smith, who will be the largest individual shareholder. – Geek Wire

So the acquiring entity will be some type of minority owner. This means that just a fraction of Qualtrics will be sold. It will be a two-headed monster, and the acquiring or partially acquiring company will be basically powerless.

Something I cannot figure out is why is SAP doing this. I cannot produce a hypothesis because I do not have a sufficient background in finance. If anyone can guess as to what could be driving this odd mini-IPO, please comment on this article.

I had an immediate flash that SAP just needs money. But I don’t have sufficient insight into SAP’s financial position to know if this is true.

Why Sell Just a Piece of Qualtrics?

Why is SAP selling just a piece of Qualtrics? Qualtrics has no value as a cross over item as McDermott promised. Why not just sell the whole thing — excluding whatever the Qualtrics management would keep?

By selling only a minority share, which is offering less control, it lowers the price for the percentage sold. If Qualtrics has no value to SAP outside of its miniature revenue (vs previous investment), why not sell the whole thing?

The Oddity of the Qualtrics Mini IPO

This move by SAP is extremely unusual. I cannot recall of SAP or Oracle spinning off a recent acquisition. SAP has had many failed acquisitions, but they just bleed out previous employees, and the product stagnates. The concept being that SAP is partially just buying customers. That is it is a monopolistic move. Normally, a failed acquisition can only be learned from observing SAP or Oracle projects and not seeing the application being used. This is because once acquired, the accounting of the acquired vendor becomes mixed up in the overall accounting of the greater company.

What SAP Said About its Qualtrics Acquisition

SAP made highly optimistic statements about how Qualtrics would become so central to SAP’s business.

The Truth About the Qualtrics?

As we covered in the article Does SAP’s Acquisition of Qualtrics Make Any Sense?, that the acquisition both made no sense as it had little relationship to SAP’s business, and that furthermore, the acquisition price was extortionate. We classified that acquisition as ridiculous and a sign of how illogical SAP’s leadership was.

We published our article on the Qualtrics acquisition in November of 2018. This article reviewing the Qualtrics acquisition was published in May of 2020, which is close to 1.5 years after our production that the Qualtrics acquisition would fail.

At the time, compliant analysts like Josh Bersin stated the following.

The word “experience” has taken over the software market, and for good reason. In today’s digital world, if your experience isn’t good, you just don’t do business with a company. But how do you understand and manage it?

If this was true, it was because SAP made it into a “thing.” The experience economy as a concept has dramatically declined in the months after this acquisition. As is typical of analysts, they presume that the executives in these companies know what they are doing. The evidence? Well, the company did it. This is found in the following quotation from Josh Bersin.

It’s clear that SAP sees a lot of opportunities here, and to me, this tells me something about scale.

It’s never easy to tell when an acquisition will pay off. It’s clear that the SuccessFactors acquisition was very successful for SAP, but there are other deals (IBM’s acquisition of Kenexa) that don’t always pan out as well.

That is a different point, but it not right.

Few SAP ERP customers use SuccessFactors, and even if it were true, it is not a reflection of SAP’s average success ratio with acquisitions. Which is quite low, as we cover in great detail in the article How Effective is SAP in its Acquisitions?

Analysts that write on SAP could never be bothered to itemize and rank the effectiveness of each acquisition. And as with most analysts, Josh Bersin then simply repeats statements that are made to him by SAP executives without questioning any of them.

The following is a perfect example of this.

If SAP can pull this off, they could build a set of tools that help every company behave like Amazon; deliver real-time feedback to managers about customers, prospects, and employees – in an actionable and useful way. That market is probably 10 times bigger than the “survey” market, and it leverages SAP’s expertise in data management, infrastructure, and enterprise solutions.

Misunderstanding How Amazon Gets Feedback From Customers

Amazon does not do that with survey software. They do that through how they set up their website and how the customer responds to their website. This is something that SAP has never done and did not know how to do before Qualtrics and still does not know how to do it today (so almost a year and a half after this article were written). The person who writes this does not know how either Amazon works, how it gets customer feedback, and how surveys either have nothing to do with it or very very little to do with it.

Josh Bersin continues.

It’s a big move and clearly, SAP has a big vision. I’ll be watching this closely and look forward to letting you know how it goes.

That is untrue.

Josh Bersin will only publish what happens if the Qualtrics acquisition happened to be successful; otherwise, as with other analysts, they will never bring up the topic again. That is how the analysts work, they make projections, where they never go back and hold themselves accountable or record their predictive accuracy. I have found this repeatedly in researching analyst writings. Did Gartner go back and measure their accuracy for what they wrote on IBM Watson as we covered in the article How Gartner Got IBM Watson so Wrong? Of course not. IT analysts follow no scientific approach, and this means zero measurements of previous projections.

Denis Howlett of Diginomica did barely any analysis in his article, which of course, was positive as SAP was a “partner” with Diginomica at the time. He primarily just used quotes from Josh Bersin, who, as I just pointed out, was mainly just using quotes from SAP executives.

Long story short, both Josh Bersin and Denis Howlett both got the prediction wrong.

Bill McDermott was supposedly incredibly charged up to work on the future with Qualtrics CEO Ryan Smith. Except he was not excited for that long, because he left SAP 11 months after Qualtrics was acquired. 

A year and a half after SAP made a big marketing push on “X and O Data,” no one is talking about this concept today. 

  • Overall, I never see Qualtrics discussed in SAP projects.
  • Even with many people reaching out to the website, I have no customers or other inquires that reach out even using the term.
  • The Qualtrics acquisition has done very little for SAP.

SAP does not break out its revenue per application. Therefore it is not possible to know if Qualtrics’ sales have gone up or down since the acquisition. The only real way to measure Qualtrics’ success is how often, or much Qualtrics is part of SAP projects or discussed or of interest by SAP customers.

Conclusion and Calculation

SAP and the IT Analyst and IT Media Scores

SAP receives a 0% accuracy for its projection that Qualtrics would become a major component of SAP’s strategy. The vast majority of IT analysts also receive a 0% accuracy for the analysts listed in this article. They simply repeat SAP’s talking points, as does IT media which did the same thing (IT media entities typically rely on SAP for advertising revenues and paid placements (ads that look like articles but are written by the vendor)).

Brightwork Research & Analysis Score

Our forecast for what would occur with Qualtrics has proven to be correct. Therefore we have allocated a 100% accuracy for this prediction to our long term Study into SAP’s Accuracy.

Ignoring Our Accuracy

SAP resources that have a problem with our research have refused to address this accuracy list, which is all supported by dated articles. They also refuse to discuss SAP’s incredible history of inaccuracy.

Link to the Parent Research 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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

 

References

*https://joshbersin.com/2018/11/why-did-sap-pay-8-billion-to-acquire-qualtrics/

https://diginomica.com/re-evaluating-saps-qualtrics-acquisition-light-medallias-blowout-ipo

https://www.ft.com/content/a1b0543a-9852-46b6-881f-99903e5b64e8

*https://techcrunch.com/2020/07/27/why-is-sap-spinning-qualtrics-out-via-an-ipo/

https://www.geekwire.com/2020/sap-plans-spin-qualtrics-ipo-two-years-acquiring-software-company-8b/

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 Why Leonardo Seems So Fake, 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 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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

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.

Advice on Enjoying the HANA Quiz

To see the full screen, just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

 

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 single ACID database with several 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.

Advice on Enjoying the HANA Quiz

To see the full screen, just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

Conclusion and Calculation

SAP receives a 0% accuracy rating for ACID compliance being some unusual or unique 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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

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 profoundly dishonest article by SAP attempts to thoroughly mislead the reader into accepting both several false assumptions about the history of SAP (for instance, that R/3 became famous 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 do not exist.

Advice on Enjoying the S/4HANA Quiz

To see the full screen, just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

References

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

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 five years using the parallel processing setting in SNP, we decided to test the performance of the optimizer 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.

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

References

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

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

References

The issues related to the inaccurate information communicated about integrated suites were 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, several factors about HANA made us skeptical of this claim on the part of SAP. First, the Forrester “research” was 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 inferior 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.

Advice on Enjoying the HANA Quiz

To see the full screen, just select the lower right-hand corner and expand. Trust us, expanding makes the experience a whole lot more fun.

 

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.

References

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

How Accurate Was SAP on Reengineering Business Processes?

Executive Summary

  • For years SAP has stated that SAP performs reengineering business processes.
  • In this article, we review the accuracy of this claim. 

What SAP Said About How Accurate Was SAP on Reengineering Business Processes?

Business process reengineering was a hot topic and consulting line of business back in the 1980s. The concept, which was much promoted by SAP, Gartner, and SAP consulting companies (among others), was that the business process could be reengineered or adjusted to match the functionality in SAP. SAP further proposed that whatever the prospect was doing in its existing systems were inferior to the best practices that were contained within SAP’s software.

The Truth About Reengineering Business Processes?

Reengineering ran out of steam in the early 1990s but as is covered in the article Reengineering and its Impact on ERP Sales,

Over and over, SAP told companies to redesign their processes and use SAP’s standard functionality, but it simply was not feasible for the vast majority of functionality. A massive industry built up around coding in the highly inefficient SAP ABAP coding language to place these customer processes into SAP. This was covered in the article Why Did Customers Listen to SAP on ABAP and Coding Tools?

Primarily in the battle between reengineering and customization, customization won.

Conclusion and Calculation

SAP receives a 0% accuracy rating on SAP regarding reengineering to match SAP would lead to significant advantages.

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.

What We Do and Research Access

Using the Diagram

Hover over each bullet or plus sign to see more explanation. To move to a different bullet point, just “hover off” and then hover over the new bullet.