Chunks of SAP!! An economic outcome.

Now anybody that’s used SAP’s ERP solution knows it is a pretty chunky solution capable of many,  many processes. Well now it seems for Business Suite 7 you are able to buy those chunks one at a time. This sounds great because as we all know when you buy the lot you generally fail to use large portions of it. This is interesting as it starts to offer some other possibilities for the new customers but beware because we are talking functionality here or business process. There are basic things which you still have to do when you implement this software – such as roles and responsibilities for mapping to security profiles – but, and it is a but at the moment, anything that is of less cost in terms of the licences and especially the maintenance shouldn’t be ignored.

That is the real question really – so you can buy the product in chunks but does that mean it will save you money? Well the starting point would be cheaper licences, and then maintenance but will implementation be cheaper?  This is quite a circular argument, as by implementing less business process the argument should be that you are also implementing less value creation and protection, so your payback is less and over a longer period before each “chunk” kicks in. Hmm! This really is a sign of the times as we have moved from value to cost. Not so long back it was “put all this in as it generates so much value” and now we have moved to “don’t put it all in and keep the costs down”.

This brings then an underlying principle to the fore – does software deliver value or is it just a cost? I guess it depends on the economy is the answer.

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