Why Are SAP S/4HANA Implementation Projects Canceled Often? [SAP ERP Failure Epidemic]

SAP S/4HANA projects are struggling, failing and being canceled at an alarming rate. Why is this happening and what can you do to avoid this same fate?

That’s what I will be discussing today.

#s4hana #erpsoftware #saperp

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[DavidGilley-hkjl]

Many times a person or company can do a thousand things right but it is the one thing out of the thousands that went wrong that gets the attention. Apple, BMW, Amazon, Burger King, Walmart, Coca Cola, PepsiCo, 3M, Home Depot, Ford Motors, Samsung Electronics, Harley Davidson, The United States Army, The United States Navy, all use SAP. Yes SAP is a complex system but when you are running incredibly complex multi-billion dollar companies or operations you need an ERP system that can handle the gambit of highly complex transactions that will flow through that system for real time management reporting. No other ERP system presently available can meet the future 500 requirements like SAP can.

[richardhoulton]

It’s too complex and too rigid once deployed. It’s massively over engineered for most companies.

[noelchristian]

I m working with S/4 HANA SAP H2R AND IT GIVES GOOD UNDERSTANDING

[beppino]

Thanks again for the interesting thoughts.
There would be a lot to say about SAP and S/4HANA.
1) The product has maintained its historical limits by creating a complex system that is also very complicated.
More complicated than ECC already was.
2) SAP's commercial policy is very invasive and the ecosystem is a cage that does not make customers or partners happy. It is clear that in this way it is very unlikely to be able to manage the complexity.
3) It has always been difficult for SAP client companies to own their own SAP project (as it would be obvious and legitimate). Creating internal resources is too expensive and carries additional risks.
4) Expectations: by adopting SAP you must be aware that you are acquiring a really solid backend system. This is also the reason why many customers prefer to stay on ECC: the "solid" part already works well and they already know that the other promises will not be kept.

[anupoojain]

With my knowledge of SAP and domain expertise,
I can few reason are
1) functional team in client still think transformation is technical and their process will remain same.
Which cannot be the case.
2) Normally expectation are no disruption in business process, which again will lead to deviation and complexity,
3) Business team think onborading a vendor with expertise will solve all problem, but case should be business need professionals l, who have both core skills and SAP skill to guide business and vendor.


Great insight sir...thanks

[juancgarcia]

Any proofs? It looks like a commercial to gain business for your company as the one who can guarantee success with a risky approach.


I agree planning, good planning is a must.

[tibbydudeza]

In one case we had a S4 implementation that had to be restarted twice at great cost.

[DavidGilley-hkjl]

I don’t agree with many of your observations regarding S/4 Hana cancellations. The major issue why companies are running into issues is because they don’t want to pay the hourly rates to hire top talent. They want to save on costs so they will hire a consultant that will accept $50 or $60 per hour but that consultant only looks good on paper. I see post where a consultant is on a project and will be asking for complete configuration guidance because they have no idea what they are doing. I have see consultants asking what is a cost element which is elementary. I have watched several of your posts and you don’t appear to be an advocate of SAP. I worked with Siemens on a project moving from oracle ERP to SAP because Oracle could not handle the complex manufacturing this company was doing. SAP is a very good system but if companies are going to nickel and dime the expert consultants they are going to get what they pay for.

[DavidGilley-hkjl]

The Lidl implementation failure was because Lidl sorts their inventory management based on the purchase price, whereas S/4 HANA would sort by the retail price. Sorting my retail price is the standard best practices. In addition, there was a major executive reorganization within the company while the implementation was going on. This has nothing to do with the quality of S/4 Hana but poor management decisions and poor business practices.

In regards to National Grid:

The integrator Wipro:

As Wipro knew or should have known, it had neither the ability nor intent to assign appropriately experienced and skilled consultants to the Project because... it in fact had virtually no experience implementing an SAP platform for a U.S.-regulated utility. – National Grid USA

They had to bring in Deloitte and E&Y to fix the mess. It wasn’t the quality of the system but the quality of the consultants that caused the failure.

[taylanozciftci]

Is there any specific change between ECC and HANA? I've been using ECC for 3 to 4 years. I never used HANA

[kirankaranam]

I am learning SAP FICO is it good job or any other finance module is better to continue career in as a accounts....
Kindly share your experience...
Thankyou in advance

[Veritas]

S/4HANA Is not as mature as ECC? One word - Integration. Here's why companies are failing and cancelling projects: Resource quality. You can throw bodies into a production environment who know how to configure SAP. They are making a living off the talents of consultants 20 years ago. Allot of offshore companies have made big bucks in the $50 an hour game. S/4 projects require industry knowledge, business function fluency SAP architecture / config skills / PM expertise. Can't find that offshore. Ask the next FI consultant you meet if he was ever an accountant. HANA requires the caliber of skills typical on a projects back in 2000. Truly enjoy the comment about putting a project on hold, as if you can pick it back up in 6 months. It's all about the people.

[northrox]

I think erpnext is way better than sap

[darshanpanchal]

Who are you brother ?? .. do u have sap experience??