Today another company has blamed its Enterprise software for its downfall. According to an article in the Denver Post Shane Co a family owned jewellry retailer blamed its SAP system as one of the reasons why it was filing for bankruptcy.
I see these stories from time to time, and it’s not the solution that is the issue. It is always the way the project is run and/or the lack of awareness of the change management that is needed when you install these type of solutions. This will happen with any ERP solution. Why does SAP find its way into the press more often? Simple they are the biggest in the ERP solutions sector – no other reason.
Many times I have been involved in installations when it is discovered that the basic business processes are not understood and indeed the implementation changes from being a solution activity to the delivery of business process training. Often people will ask then why did it work before? Well there are often two answers to that – firstly it wasn’t (it was luck and a following wind) and secondly a key individual kept the information in his head and worked excessive hours, and spookily when he wasn’t around everything went belly up!
As for blaming the inventory on the SAP system – well who was checking the reports, who was authorisng purchases, who was checking forecast accuracy, who was checking transaction accuracy, etc etc the list goes on!! Basic business process control!!
But the weirdest thing – Google Ads picks out SAP from the above article and shows them as the sponsor with the banner line “Achieve Operational Excellence with SAP Business Solutions”.