Limitations of traditional SAP approaches

SAP's Strategy and the Power of Diverse Perspectives This week's discussions surrounding my blogs on Frank Albrecht's observations about the role of "non-SAP" partners and the potential of Agentic AI within the SAP ecosystem have been incredibly insightful. The diverse perspectives shared, particularly by Shaurin Shah, Wayne Holtham, and David Hilcher, have enriched the conversation and prompted me to delve deeper into these issues. Concerns from ERP Veterans The concerns raised by these ERP veterans highlight a growing unease with SAP's current strategy. Shaurin Shah emphasizes the limitations of SAP's ERP systems, particularly their focus on "purchases" rather than "people," which can hinder innovation. He suggests that decoupling AI and machine learning components from the core SAP system could foster innovation and allow customers to retain ownership of valuable business knowledge. Wayne Holtham criticizes SAP for competing with its partners and pushing immature products onto customers, eroding trust and damaging relationships. David Hilcher points to SAP's "Eurocentric" culture as a root cause of its problems, where a "one-size-fits-all" mentality and a lack of customer-centricity stifle innovation and fail to meet diverse customer needs. Addressing the Concerns These concerns raise important questions about SAP's future direction. To remain a leader in the ERP space, SAP needs to address these issues head-on. Collaboration and Customer Centricity: SAP should re-evaluate its relationship with partners, prioritizing collaboration over competition. Actively listening to customer feedback and needs is essential for delivering mature, customer-centric solutions. Embracing Openness and Flexibility: SAP could benefit from embracing a more open and collaborative culture, both internally and externally. Balancing standardization with flexibility and customization will be key to meeting the diverse needs of its customer base. Innovation and Adaptation: Decoupling AI and machine learning components, as suggested by Shah, could allow for greater innovation and adaptability. Embracing new technologies and business models is crucial for SAP to remain competitive in the rapidly evolving enterprise software landscape. The Way Forward The SAP ecosystem is at a crossroads. By addressing the concerns raised by ERP veterans and embracing a more open, collaborative, and customer-centric approach, SAP can continue to thrive and deliver value to its customers. For a more in-depth analysis of these issues, please refer to my white paper: [Concerns from ERP veterans over SAP's current strategy] https://lnkd.in/eXz7hQWG Disclaimer: The views and opinions expressed in this blog post are my own and do not necessarily reflect the official policy or position of any company or organization.

Not all SAP implementations are successful—many have faced significant challenges, delays, and even complete failures. Here are some notable unsuccessful SAP projects and the lessons learned: 1. Lidl – €500M SAP Failure (2018) •Issue: Lidl, a German retail giant, attempted to implement SAP for inventory and finance management. However, they insisted on keeping their existing inventory valuation method instead of adapting to SAP’s standard approach. •Result: After seven years and €500 million, Lidl scrapped the project. •Lesson: Customization must align with SAP best practices—forcing legacy processes into SAP often leads to failure. 2. Revlon – $64M Supply Chain Disaster (2019) •Issue: The beauty brand implemented SAP S/4HANA, but the rollout was rushed without adequate testing, resulting in supply chain disruptions. •Result: Factories couldn’t fulfill orders, stockouts occurred, and the company lost $64M in revenue. •Lesson: Proper testing and phased rollouts are critical for large-scale SAP implementations. 3. Hershey’s – $150M Halloween Disaster (1999) •Issue: Hershey’s implemented SAP but rushed the go-live before peak season without proper system stabilization. •Result: A failed order fulfillment process left millions of chocolates undelivered, causing a $150M revenue loss. •Lesson: Never go live during critical business seasons. Ensure the system is fully stable first. 4. U.S. Navy – $1B SAP Failure (2015) •Issue: The U.S. Navy spent $1B on an SAP ERP system for logistics, but they never properly defined the requirements. •Result: The system didn’t meet operational needs and was abandoned. •Lesson: Clearly define requirements and business processes before implementation. 5. LeasePlan – SAP HCM Implementation Challenges •Issue: LeasePlan, a fleet management company, implemented SAP HCM but struggled with customized payroll processing across different countries. •Result: The system had payroll calculation errors, leading to employee dissatisfaction and manual workarounds. •Lesson: Global payroll rollouts require detailed local compliance checks to ensure smooth functioning. Key Takeaways for SAP Consultants: 1.Minimize Customization – Stick to SAP best practices instead of forcing legacy processes. 2.Thorough Testing is Critical – Rushed go-lives without testing lead to disasters. 3.Stakeholder Alignment is Key – Business users must be fully involved, not just IT teams. 4.Phased Rollouts Work Better – Avoid big-bang implementations unless absolutely necessary. 5.Payroll & HCM Require Special Care – Compliance issues can cause payroll failures, legal problems, and employee dissatisfaction. #saphcm #sapfreshers #sapcareers #sapjobopportunity

ECC LSMW and BDC: These traditional methods rely on flat file uploads and are often limited in the volume of data that can be efficiently migrated. They lack real-time error reporting and require significant manual involvement in the mapping and transformation of legacy data. Manual Data Load: Data migrations through BDC require manual involvement and are often prone to errors. Each data load may require different configurations depending on the source system, and there is a lack of visibility into the status of the migration. S/4HANA SAP S/4HANA Migration Cockpit: Unlike LSMW, the Migration Cockpit offers pre-configured templates and enables real-time data validation and automated error handling during migration. It is capable of handling large volumes of data without significant performance degradation Selective Data Transition: In S/4HANA, Selective Data Transition allows for the migration of specific subsets of data, rather than migrating everything at once. This enables phased migrations, reducing the risk of data corruption and simplifying the testing phase.

Traditional Change Management in ERP is failing. (Here’s what works now) The challenge? Many ERP leaders still rely on outdated Change Management practices. And the cost is steep: frustrated teams, missed deadlines, and blown budgets. Here’s why traditional approaches fall short: ❌ Reactive implementation ↳ Change is addressed only after resistance sets in. ❌ Overly process-driven ↳ Reduced to checklists and rigid frameworks. ❌ One-size-fits-all solutions ↳ Such approaches rarely stick in dynamic environments. ❌ Tick-the-box mentality ↳ Change is treated as a task, not a foundational culture. ❌ Neglects the human factor ↳ Change is resisted by people, not systems. The consequences? - Projects stall - Teams burn out - Budgets spiral out of control So, what’s the solution? Integrative Change Management: ✅ Proactive, not reactive ↳ Integrated into ERP strategy from day (minus) one. ✅ Culture-first approach ↳ Focuses on team strength and engagement to fuel sustainable transformation. ✅ Tailored strategies ↳ Custom solutions to build strong, adaptable teams. ✅ Alignment at every level ↳ Synchronizes people and processes for clarity and trust. ✅ Human-centered leadership ↳ Empowers individuals to drive the change, not just survive it. ERP success isn’t systems-first. It’s people-first. Organizations that thrive are those that prioritize their people → the real drivers of transformation. PS. Are you embedding change into your ERP strategy? If not, it might be time to rethink your approach. ♻️ Share this with an ERP leader who needs to read it. 👋 Follow Mariya Koteva for more insights on ERP Change Management.