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What's SAP, and why's it worth $163B? (2020)

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Re: What's SAP, and why's it worth $163B? (2020)

#362
I was a parts department manager in the early 00's when Mercedes USA decided to switch all their systems over to SAP. It was an absolute nightmare for 6 months. The entire UX (at that time) was unfathomable. Even our regional representative couldn't figure out how to use the software when he was trying to train us.

At the end of that year, Mercedes hosted a "we're sorry" conference in San Diego and paid for all parts and service managers across the nation to travel and drink at the open bars for a week. I guess that part was okay.

Re: What's SAP, and why's it worth $163B? (2020)

#363
post #310

I worked in public accounting with some major corporations as clients. Every single company I interacted with used SAP. It is the de facto software in its field and is deeply entrenched. Its UX is the most horribly wicked thing I’ve ever come across. We would conduct walkthroughs with process control owners that showed us what they would do in SAP to perform their job functions, and it would take multiple, intelligen…

One of the reasons why ERP systems were ao sucessful is because they replaced the majority of administrative jobs by automating them away. One of the results is that those remaining are either highly knowledgable and skilled, or working in a function that has yet to be automated away or outsourced to a cheaper country in that specific company.

Exactly. People underestimate how much SAP is doing behind the scenes when properly configured. And beyond that, they overestimate the ergonomics of any enterprise alternative, especially ones that pre-dated SAP.

For every "We had a great internal platform that we custom built" story, there are multiple "We used a small vendor's product, and it was a nightmare."

Why is SAP successful? Because the general purpose tools (or worse, amalgamations of multiple single-purpose tools) that came before were absolute shit, and SAP is instead only difficult to use.

Progress!

(Also, a TAM that is literally every company, ever)

Re: What's SAP, and why's it worth $163B? (2020)

#364
post #310

I worked in public accounting with some major corporations as clients. Every single company I interacted with used SAP. It is the de facto software in its field and is deeply entrenched. Its UX is the most horribly wicked thing I’ve ever come across. We would conduct walkthroughs with process control owners that showed us what they would do in SAP to perform their job functions, and it would take multiple, intelligen…

SAP, Excel, and Bloomberg Terminal are applications where there such a long tail of uses that it is hard to see them being replaced in the corporate world anytime soon.

Bloomberg Terminal really ? I've never gotten to use it, what can it do ?

Re: What's SAP, and why's it worth $163B? (2020)

#365
post #348
post #310

I worked in public accounting with some major corporations as clients. Every single company I interacted with used SAP. It is the de facto software in its field and is deeply entrenched. Its UX is the most horribly wicked thing I’ve ever come across. We would conduct walkthroughs with process control owners that showed us what they would do in SAP to perform their job functions, and it would take multiple, intelligen…

This kind of thing is that gave rise to RPA as an industry.

Embed a GUI toolkit that's general purpose enough, and the product inevitably devolves into a visual API.

Re: What's SAP, and why's it worth $163B? (2020)

#366
> ERP isn’t cheap. A large multinational company may spend $100 million to $500 million in total on implementation: $30 million in software license fees, $200 million in consulting fees, millions for hardware, and millions more to train managers and employees. A full implementation takes four to six years. A CEO of a large chemical firm was quoted as saying, "competitive advantage in this industry might just come from doing the best and cheapest job at implementing SAP.”

At these kinds of numbers, I've got to ask a genuine question here: what's the benefit of using SAP as opposed to rolling your own solution?

From reading some of the other comments here, it sounds like getting your business to integrate with SAP involves trying to fit a lot of square pegs in round holes and doesn't always succeed in the end anyways.

At these levels of stratospheric costs, it seems like it would often be cheaper and less risky to simply use your standard software stack of choice and build a custom web app over a database that mirrors your existing business processes perfectly, and then transform/integrate those processes over time as needed for increased efficiency.

Re: What's SAP, and why's it worth $163B? (2020)

#367

Earlier quoted context omitted.

SAP, Excel, and Bloomberg Terminal are applications where there such a long tail of uses that it is hard to see them being replaced in the corporate world anytime soon.

Bloomberg Terminal really ? I've never gotten to use it, what can it do ?

Gives you access to a bevy of financial data and news through a TUI.

Re: What's SAP, and why's it worth $163B? (2020)

#368

Earlier quoted context omitted.

SAP is better though as a set of libraries than a solution, and it's worth a lot precisely because it will fit whatever whacky process an organization has so that the org doesn't need to change itself while adopting the software. The most obvious failure modes are going for the lowest bidders incentivizing them to deliver with a skeleton crew, trying to nickel and dime the budget cutting features or their scope or st…

> because it will fit whatever whacky process Funny considering in the 80/90s SAP sales/management was known for saying that you don't adapt SAP to fit your company, you adapt the company to fit SAP. There was another company (was it Baan or JDE? I think Baan as I had too many meetings at the time with those religious fruitcakes) that said they were better than SAP because you don't need to change your processes; you…

I worked for Baan at that time, that was one of the selling points.

Baan still exists as Infor ERP Ln

Re: What's SAP, and why's it worth $163B? (2020)

#369

"Business went well: SAP ended their first year with DM620,000 in revenue, a little over $1M in today’s dollars." This doesn't seem realistic if they mean inflation adjusted; do they mean using today's exchange rate? Or are both numbers inflation adjusted?

In 1972 1DM = $3.643 so it's probably $170,189 (1972) -> $1M (today).

Re: What's SAP, and why's it worth $163B? (2020)

#370
post #363

Earlier quoted context omitted.

One of the reasons why ERP systems were ao sucessful is because they replaced the majority of administrative jobs by automating them away. One of the results is that those remaining are either highly knowledgable and skilled, or working in a function that has yet to be automated away or outsourced to a cheaper country in that specific company.

Exactly. People underestimate how much SAP is doing behind the scenes when properly configured. And beyond that, they overestimate the ergonomics of any enterprise alternative , especially ones that pre-dated SAP. For every "We had a great internal platform that we custom built" story, there are multiple "We used a small vendor's product, and it was a nightmare." Why is SAP successful? Because the general purpose too…

Are there really no meaningful competitors to SAP in this space?
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