What This Article Covers
- Article Quotations
- SAP Likes Open Systems
- SAP Likes to Solve Society’s Problems?
On October 13, 2016, Fortune published the article SAP’s CEO Is on a Mission to Reform Healthcare.
I this article, we will check the accuracy of this Fortune article.
“Bill McDermott is on a mission to fix the American health care system. The CEO of SAP is not a health care expert. His German-based company supplies software that is used to run the operations of many of the world’s largest companies. But he is motivated to take on the problems in healthcare because of his own experience as a patient. He suffered an accidental fall that resulted in multiple surgeries, but ultimately he lost his left eye.”
SAP Likes Open Systems?
“McDermott tells Fortune’s Susie Gharib that SAP has plans to fix health care using software to allow medical professionals and individuals to share personal data in an easy-to-use open system. “To help the world run better is what I think our technology should do,” he says. “But to improve people’s lives is really to think about not just the technology impact on an enterprise, but actually the people who work in an enterprise.”
SAP is the master of closed systems. This is not a controversial point. SAP makes its money by selling a closed system, and then by using the investment into its primary system, which is called ECC or S/4HANA (the new ERP system) to drive purchases of other SAP applications that are not competitive.
Why would SAP move away from this strategy that has been so successful for them for so long?
SAP Likes to Solve Society’s Problems?
SAP’s new strategy is part of a trend called “leading with purpose”— corporations stepping up to solve society’s problems.
That is a joke. SAP is a profit maximizing entity that does extremely underhanded things to make money. They have never shown the slightest interest in doing anything that was not 100% about them. I have been tracking SAP for 20 years, and I am one of the few analysts that focus entirely on SAP. Also, most people that write on SAP are in some shape or form connected to SAP financially, and therefore will not criticize SAP no matter what SAP does.
“CEOs tell Fortune that integrating social good into their companies’ purpose is also good for business. The interviews were conducted in partnership with The Aspen Institute Business and Society Program (https://www.aspeninstitute.org/programs/business-and-society-program/purpose-of-the-corporation/).”
Pretending to good things for society is good for business because you don’t incur any real costs. But doing good things for society means incurring costs, which is not profit maximizing. That is why most profit maximizing companies simply pretend to do good things for society.
“As McDermott puts it, “We really get our high out of making our customers get their high. But I do think we have to do a better job of sharing and expressing how what we do touches that end consumer in a really powerful, digital way because that drives opportunity for all.”
This is a highly deceptive statement by McDermott. SAP “gets their high” off of putting companies in a position so that they have to buy SAP no matter how inadequate their offering, and they use things like biasing consulting companies and applying something called indirect access to do it.
SAP has been promising some type of health care product since 2013, and nothing has been forthcoming. And none has been since this article was published. Fortune could bring up that track record but chose not to, as SAP paid them to put this article in their publication.
This appears to be another paid placement on the part of SAP to Fortune. The accuracy of this article is so poor and is so obviously a paid placement that it makes no sense to even give it a rating.
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