MUFI Rating & Risk – SAP CRM
MUFI: Maintainability, Usability, Functionality, Implement ability
Vendor: SAP (Select For Vendor Profile)
SAP CRM is technically proficient and has good reporting. Luckily, for its CRM application, SAP does not rely upon the stodgy old SAPGUI (which is used for most other SAP products) for its CRM, which would probably have killed adoption of the application. SAP CRM is rated as below average in buyer satisfaction.
However, again, SAP is a laggard in the user interface area, but SAP CRM still ranks as one of the best user interfaces that it offers, along with SAP Business One. SAP CRM takes the longest of any of the CRM systems that we have tested concerning performing tasks. Furthermore, the logic of the setup of the interface does not hold together well – it is simply a series of tasks. Does it need to be reemphasized at this late date how crucial it is to make CRM systems easy to use to expect to capture quality data from the sales force?
SAP CRM is one of the few CRM applications that is challenging to configure. Considering how simple CRM functionality is, and how there are many applications on the market that are quite easy to configure, this is a significant disadvantage. This translates into SAP CRM, as with most SAP applications, having the longest estimated implementation time of any application. It has the highest maintenance load, and the highest TCO – substantially more than even Oracle – if it were not for the fact that most SAP customers get SAP CRM for “free,” as will be discussed below.
SAP as normal lags the functionality of other CRM applications and buyers have to be willing to fall for the integration argument as well as the omnipresent recommendations from the major consulting companies. SAP CRM is essentially never purchased unless that company is also an SAP ERP customer – which tells one a lot about how competitive the solution is.
SAP makes many of these sales because they will often bundle the software in a way that fundamentally makes it appear free. Of course, the buyer must buy a lot of other SAP software to get this arrangement. Buyers who do have an interest in SAP CRM need to explore with SAP if they receive the licenses free of cost. Because if the license fee is not waived, our TCO calculations demonstrate that SAP CRM has one of the higher TCOs in the CRM space. As the financial returns of CRM systems are in serious question, the worst thing one can do is buy a top TCO application, as the likelihood of getting an economic return from the more expensive CRM applications is very low.
All scores out of a possible 10.
Vendor and Application Risk
Software Decisions Risk Defined: (See This Link for Our Categorization of Risk)
Buyers who purchase SAP CRM have a strong tendency to be “SAP shops,” who have often not performed their due diligence or run a proper software selection. SAP CRM is a middling application, but SAP sales build it up to be one of the best application in the CRM space, which it is not. Expectation management is therefore critical.
Likelihood of Implementation Success
This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.
Risk Management Approach
Expectations must be lowered before the project kick off, and the scope must be conservative. Remember that the financial returns of CRM projects are quite dubious, and therefore it is, therefore, critical to not overpay for the implementation.