The SAP question regarding emerging technology seems to be a popular subject. I am happy to share the following excerpt from an earlier answer.
Albert Einstein once defined insanity as “doing the same thing over and over again and expecting different results.� While mildly amusing, it is nonetheless a thought provoking statement when applied to the evolution of the enterprise software industry and in particular the introduction of supply chain/e-procurement solutions as well as the new platforms upon which they operate.
The fact that awareness of the high-rate of ERP/IT-based initiative failure to deliver the expected results is now entering mainstream consciousness, vendors and those associated with the recommendation and implementation of solutions find themselves in unfamiliar waters. Specifically, what do you do to overcome the growing cynicism within the end-user community?
In this context, does the introduction of a Procurement for Public Sector (PPS) module/upgrade or the Netweaver "platform" by SAP signal the introduction of new and innovative technology that will reverse the generally negative results in the market as a whole? More to the point (especially concerning existing SAP clients) will these "innovations" pave the way for an enterprise-wide adoption of a broader SAP centered strategy?
As I had previously stressed, recent SAP blow-ups such as the one which occurred with King County in Oregon (the County decided to walk away from a $38 million investment earlier this year), and the City of Houston (whose 10 year program that began in 2005, is now crippled by wide spread dissent), represents a more immediate issue for which new technology is not the answer.
By the way, it is important to note that these challenges are not indigenous to SAP. A variety of studies spanning several years estimate that between 75% and 85% of all programs (regardless of Vendor) fail to achieve the expected results.
What sums it up best is a article titled Straight to the Bottom Line. Referring to the effectiveness of technology, the authors concluded that "New technology is of value only if it provides a suitable financial return. Many articles have been published on the potential economic benefits and return on investment (ROI) of installation of new automation and advanced automation technology in the process industries. Unfortunately the benefits claimed are often unrealistic and unsubstantiated. This leads to significant credibility issues when the forecast benefits are not achieved and to a lack of confidence on the part of management on proposals in this area."
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