Search Results for: erp

SAP Marketing and Sales

How to Understand SAP S/4 HANA SAP Customization or SAP Enhancement
ByPrimary Researcher February 25, 2017May 8, 2022

… evaluated for removal. This has been a long-term strategy by SAP to get customers to use standard functionality. The problem being SAP is always sold with the amount of functionality that will meet the customers being overstated, which we covered in the article How to Understand the Overamapping of ERP to Functionality. This leads to the question of how much custom code in SAP systems is relied upon by customers.
SAP Nation 2.0 on the Percentage
The book from SAP Nation 2.0 explains how much custom code is used.
“According to Panaya, a tool vendor, “Our data …

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Managing the SAP Investment

How To Best Understand SAP as Legacy for Software Companies
ByPrimary Researcher February 23, 2017March 26, 2021

Executive Summary

It is increasingly evident that SAP has a very high maintenance overhead and that the new products from SAP are worse than SAP’s ERP system.
The new concept for getting value from SAP is to use non-SAP applications with non-SAP infrastructures like AWS and Google Cloud.

Introduction to SAP as Legacy
In a previous article titled SAP is Now Strip Mining its Customers, I laid out why SAP has reached an inflection point in its history and should now be treated by companies as selling legacy systems. In short form, the most accurate way of …

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SAP Indirect Access

Should Customers Charge Indirect Access Fees to SAP?
ByPrimary Researcher February 23, 2017October 22, 2023

… the same concern for accuracy as SAP. Not one of these entities will disclose their pro-SAP financial bias to their readers.

SAP Charges for Access
I was recently sent this comment from someone that works for SAP.
“If I am connecting to the SAP ERP system and extracting data that the ERP system’s application logic has captured, manipulated and stored then am I not using the fruits of the IP that SAP have developed? I nice, ‘clean’, structured repository of customer data. That data would not exist if SAP IP was not there. If that is the …

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SAP Indirect Access

How to Understand SAP Indirect Access and US Antitrust Tying Arrangement Law
ByPrimary Researcher February 23, 2017April 20, 2022

… covered the Diageo v. SAP case and stated that I disagreed with the UK judge in this case. The proponents of SAP’s position on the matter have pointed to language in SAP’s contracts that state the following:

“Only named users are authorized to use or access the mySAP ERP software directly or indirectly (emphasis added)
Named user pricing is the only basis on which the mySAP ERP software was licensed to Diageo.”

There are several problems with this clause. First, SAP has imposed its expansive version of the definition of indirect access that does not have any historical …

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Managing the SAP Investment

How SAP is Now Strip Mining its Customers
ByPrimary Researcher February 19, 2017January 25, 2024

… last article. However, right after that article was written, the judgment was announced in the UK. The case has left a lot of people scratching their heads. I followed the judge’s logic, and she tried to get an equitable judgment. However, I believe the judge made an error regarding the basic interpretation of the legitimacy of indirect access.
The liability for Diageo is substantial. If the judgment stands, they will owe SAP roughly $70 million.
The Connection of ERP to a CRM System
I do not know precisely how Salesforce (the CRM system) was connected to the SAP ERP

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SAP and Oracle Support

What to do About SAP's Declining Support
ByPrimary Researcher February 10, 2017May 25, 2021

… like to have access to upgrades. But there are far more rumblings about SAP support than in past years, which is illuminated in this quotation from the book SAP Nation 2.0.
“The analyst firm Gartner reports it is seeing a steady increase in inquiries about canceling maintenance agreements with ERP vendors. This is certainly a popular strategy with many SAP customers, who are seeking third party maintenance from providers like Rimini Street. Rimini says it now has over 150 SAP customers under contract, representing over $100 billion in customer revenues.”
And the value one customer thinks the received from …

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TCO Info Articles

The Many Reasons Why SAP's TCO Claims Are Not True
ByPrimary Researcher February 8, 2017January 17, 2021

… are many consulting companies. Consulting companies don’t share the economic benefit of good decisions on the part of their clients and therefore are not primarily incentivized to promote good decision making in their clients. Instead they are incentivized on billing hours. And this means introducing things that the company does not currently have, or does do not currently do. As I previously stated, a lack of proper TCO has been partially responsible for the overuse of both ERP and outsourcing.”
SAP’s Presentation on TCO
SAP’s presentation on SAP TCO is very straightforward. According to SAP, any …

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License Test

Should You Trade In Unused Licenses for S/4HANA and HANA?
ByPrimary Researcher February 8, 2017August 4, 2023

… platform – SAP’s HANA. This is all being done with the promise of improved performance and scalability through in-memory databases.”
Well, the promise of the performance improvement is not analyzed by Snow Software’s article. But as HANA is an analytics database primarily, there is no evidence that an ERP system will run much faster on HANA due to software. Here it is important to draw a distinction between the software side and the hardware side of HANA.
Hardware Improvement?
HANA combines a changed database with SSD memory (instead of a spinning disk) so the performance will automatically increase …

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License Test

The HANA Police and SAP Indirect Access Charges
ByPrimary Researcher February 7, 2017January 17, 2024

… had plans to get into this market. They had been promoting how much they are involved in Big Data. However, we can see a problem immediately looking at just one graphic.

Ordinarily, an adapter like Vora will connect one database to another. However, notice Vora first connects HANA for the ERP system to another HANA instance. Then Vora connects to Hadoop. Why? Hadoop is its very widely used Big Data store with a full complement of open source tools. Why can’t the HANA application database (or enterprise data shown in the graph) be copied to Hadoop? The reason is …

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Inventory

How To Use ABC Inventory Classification
ByPrimary Researcher January 26, 2017December 17, 2020

… have a medium level of sales.
C Items: These are the products or the product location combinations that are the least expensive, and or that have the lowest sales.

ABC Analysis, ABC Analysis of Inventory
To use ABC classification, an ABC analysis or ABC analysis of inventory is necessary.
Some ERP systems like SAP ECC have transactions where this can be automatically calculated, and this is one reason that explains why ABC classification, ABC inventory or ABC inventory classification are so frequently used.
ABC analysis or ABC analysis of inventory is not as straightforward as it sounds. If only sales …

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