02 April 2008

How Much SAP Software Can a $100 million Buy?

It's been 3 months since I hightlighted competitor issues and 6 months since I picked on SAP so yesterday's (non-April fools) story that Waste Management is suing SAP in Texas for a $100 million was very timely. The crux of the suit seems to be the sales process. Waste Management claims SAP fraudulently claimed that their industry standard waste management solution didn't require any customization but that the software they delivered was untested and buggy. I find it interesting that it's a fraud claim.

If someone actually said that the software wouldn't require any customization, they should shoot the saleperson. Every business is similar to every other business except in the ways that they are different. There is really no one size fits all solution at any level and certainly not given the size of Waste Management. The bottom line is, you don't know until you get in there. Perhaps someone doesn't "need" customization but a customization can provide significant operational benefits. That clouds the definition of need.

There are lessons here for the GP world as well. Perhaps not, $100 million lessons (I hope not!) but in an implementation, the consultant has a burden to try to understand the client's business and provide the best solution possible. The client needs to own the ultimate outcome and be willing to make smart ROI decisions around what it's "needs" really are.