41–50 of 703 posts
But I've written my thoughts about what ERP is:
Whenever I read about SAP (which I hate, so don't mistake this for an objective take) it reminds me of the discussion about self-hosting your email: "Oh, no, it's too complicated, you are better off paying someone else to do it for you". The problem being, I host my own email and it works fine , which makes me suspicious of the common takes about ERP too. Now, I get it, once you have to deal with taxes and payroll in…
Yes, that's true, and every organization of any size (one sufficiently large enough to implement SAP) will have experts in those domains. The problem is that implementing them in software is a large task - definitely not impossible, or even extremely difficult (it's just CRUD on a grand scale), but you need software that can change quickly when new legislation is implemented, etc. Painful, and the reason why so many do implement a COTS ERP. Hell, even Google run SAP S/4HANA these days (they migrated off Oracle ERP AFAIK).
This is a good time to remind everyone of the rules of SAP integration: 1) Your company processes MUST adapt to SAP processes. That's it. You can try customising SAP to fit your processes, but you will just waste time and hundreds of millions of money and then you will fail. Lidl spent almost a decade and 500M€ on its SAP project, but didn't follow rule #1: https://www.henricodolfing.com/2020/05/case-study-lidl-sap-d…
What are the fundamentals of "SAP processes"? Can you provide any detail?
> Lidl based its inventory management system on purchase prices. The standard SAP for retail software uses retail prices, and fearing the group could lose a competitive edge by compromising, Lidl declined to change, so the software was instead adapted.
https://www.henricodolfing.com/2020/05/case-study-lidl-sap-d...
This is a good time to remind everyone of the rules of SAP integration: 1) Your company processes MUST adapt to SAP processes. That's it. You can try customising SAP to fit your processes, but you will just waste time and hundreds of millions of money and then you will fail. Lidl spent almost a decade and 500M€ on its SAP project, but didn't follow rule #1: https://www.henricodolfing.com/2020/05/case-study-lidl-sap-d…
> You can try customising SAP to fit your processes So you are paying hundreds of millions to get a canned, pre-packaged, inflexible solution? Why is SAP still in business? Is it solely customer misinformation?
This is a good time to remind everyone of the rules of SAP integration: 1) Your company processes MUST adapt to SAP processes. That's it. You can try customising SAP to fit your processes, but you will just waste time and hundreds of millions of money and then you will fail. Lidl spent almost a decade and 500M€ on its SAP project, but didn't follow rule #1: https://www.henricodolfing.com/2020/05/case-study-lidl-sap-d…
This is a good time to remind everyone of the rules of SAP integration: 1) Your company processes MUST adapt to SAP processes. That's it. You can try customising SAP to fit your processes, but you will just waste time and hundreds of millions of money and then you will fail. Lidl spent almost a decade and 500M€ on its SAP project, but didn't follow rule #1: https://www.henricodolfing.com/2020/05/case-study-lidl-sap-d…
> You can try customising SAP to fit your processes So you are paying hundreds of millions to get a canned, pre-packaged, inflexible solution? Why is SAP still in business? Is it solely customer misinformation?
Very hard to throw/replace ERP. It might happen but it‘ll take decades for global SAP installed base to shrink seriously.
> Is it solely customer misinformation?
SAP (and other „enterprise sales“ players) sold to CIO with „account relationships“. Then software is shoved down the throat of business users.
Whenever I read about SAP (which I hate, so don't mistake this for an objective take) it reminds me of the discussion about self-hosting your email: "Oh, no, it's too complicated, you are better off paying someone else to do it for you". The problem being, I host my own email and it works fine , which makes me suspicious of the common takes about ERP too. Now, I get it, once you have to deal with taxes and payroll in…
Comparison with hosting your own email is like a dozen orders of magnitude off in complexity. SAP really only makes sense for ginormous corporations, but up in that range, Oracle's ERP is the only real competition. Just the kernel of SAP is on the order of 100 million lines of code, and that's not counting the even more hundreds of millions of lines of business logic.
It'd be more like saying, "I'm going to reinvent email, write all clients, servers, and try to get everyone to adopt it." Except that would still be a few orders of magnitude off.
SAP has modules that handle regulatory issues in virtually every country in the world. There's so much business complexity that's encoded into its systems that it's literally hard for mere mortals to grasp.
ERP industry is so hard(painful) that I wouldnt want to work in it unless they paid top of the top Good luck competing in that industry > basic installation of SAP has 20,000 database tables, 3,000 of which are configuration tables. In those tables, there are ~8,000 configuration decisions you need before even getting started. Gotta be fun :)
Microsoft at one point wanted to become a full featured IT department for companies. From managing their infrastructures, active directory, issuing laptops, but also providing basic erp, kind of salesforce like. I am not sure where they went with that but it certainly an idea that has merit. A small or medium size company should probably outsource its IT department except for the parts that are specific to their busi…
Microsoft has a suite of ERP software – Microsoft Dynamics. They got it by acquiring a bunch of companies – Great Plains, Navision, Solomon, Axapta. Originally on-premise, now they encourage SaaS but some of it is still available on-premise for those who prefer that. Generally focuses on the small-to-medium enterprise sector, although they've been trying to make inroads on larger enterprises; but large enterprises are still dominated by SAP, Oracle, Salesforce, etc.