Enterprise Software TCO Calculator – SAP PLM

How it Works

Fill out the form below for your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Production Planning and Detailed Scheduling
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for SAP PLM.

Custom TCO Estimates and Consulting

  • Want Help with TCO for your Business?

    It is difficult for most companies to estimate TCO without outside advice. Vendors and consulting companies do not want their customers to know what they TCO is. Getting TCO advice from consulting companies leads to underestimated TCO. We do offer remote unbiased multi-dimension TCO estimation.

    This article is free, we do not answer questions for free. Filling out this form is for those that have a budget. If that describes you, just fill out the form below and we'll be in touch asap.

Project Planning Package – SAP PLM

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Production Planning and Detailed Scheduling
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for SAP PLM.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Project Planning Package – SAP SmartOps

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Production Planning and Detailed Scheduling
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for SAP SmartOps.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Enterprise Software TCO Calculator – SAP SmartOps

How it Works

Fill out the form below for a your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Production Planning and Detailed Scheduling
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, goto this link to see other analytical products for SAP SmartOps.

Project Planning Package – SAP ERP/ECC/R/3 (XL)

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust. This calculator is for more than 800 users, for less than 800 users see this link.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Big ERP
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for SAP ERP ECC/R/3.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Enterprise Software TCO Calculator – SAP ERP/ECC/R/3 (XL)

How it Works

Fill out the form below for a your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust. This calculator is for more than 800 users. For less than 800 users see this link.

Details

  • Vendor Name: SAP (See for Vendor Rating)
  • Software Category: Big ERP
  • Company Headquarters: Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany
  • Site: http://www.sap.com
  • Contact number: 49.6227.747474
  • Delivery Mechanism: On Premises

Finished With Your Analysis?

Once complete, goto this link to see other analytical products for SAP ERP ECC/R/3.

MUFI Rating & Risk – SAP APO PP/DS

MUFI Rating & Risk – SAP APO PP/DS

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: SAP (Select For Vendor Profile)

Introduction

SAP Production Planning and Detailed Scheduling (PP/DS) is the production planning and scheduling application within the SAP APO or SAP SCM (SAP’s new nomenclature for the suite is SCM, but most people still refer to it as APO) suite.

SAP APO is a broad advanced planning suite that includes, depending on how you count, around ten modules (although the bulk of its implementations are in just four modules. PP/DS is often implemented along with SNP (profiled in our Software Selection Package for Supply Planning). While there is some overlap (which will be explained), these are traditional sequential and supply planning first applications. Both of their designs go back to the mid-1990s, and both products are patterned off of products made by i2 Technologies, which SAP had a partnership within the mid-1990’s.

Application Detail

PP/DS is sold as a heavy duty and sophisticated production planning and scheduling system that can be used in almost any production environment. In truth, due to design flaws, most of PP/DS’s more sophisticated functionality goes unused on projects. Something, which goes virtually unmentioned by the major and even minor consulting companies that recommend PP/DS, is that the application has a narrow scope of practical usage. For this reason, PP/DS is one of the most over recommended applications that we cover. It is repeatedly selected for manufacturing environments that it has zero chance of ever being successfully implemented. One reason for this is PP/DS is chosen for buyers that have no idea how much maintenance is involved with PP/DS. Secondly, PP/DS can only manage discrete and repetitive manufacturing environments and is entirely inappropriate for process-batch and process continuously. Furthermore, even among discrete and repetitive manufacturing, PP/DS can only handle the simplest of manufacturing requirements. Because of PP/DS’s heavy maintenance overhead, it has the highest TCO of any application in its software category. Lesser known applications can produce superior planning output at less than half of PP/DS’s total cost.

Another area of confusion is how PP/DS is implemented. SAP markets PP/DS’s cost optimizer very slowly during the sales process, however, the optimizer is an old design which is extremely difficult to configure correctly, and which can only minimize costs. This is a first generation optimizer based upon when all optimization was cost driven, which has been demonstrated to be a poor approach to optimizing a production facility. Duration optimizers are more relevant for the problem and have proven to be much easier to implement in practice. However, only two software vendors that we cover – PlanetTogether and Delfoi have them. In fact, in the vast majority of PP/DS implementation, while they begin with the optimizer, they eventually move to heuristics. Therefore a significant reason for choosing PP/DS – its optimizer – is almost always nullified during implementation. This is extremely well known by large PP/DS implementers like IBM and Accenture, but they do not share this information with their clients as they want their clients to implement PP/DS. We do not rate applications based on their hypothetical functionality. That is why, even though PP/DS has a dated cost optimizer, as it is not usable, we consider PP/DS to be a heuristic based system. This is why we rate its functionality score as lower than average.

To purchase the most expensive application in the category, and then to accept all of its implementation and maintenance costs merely to run heuristics is a very poor expenditure of a company’s budget.

PP/DS has a difficult to use user interface. This, along with its overall difficulty level makes PP/DS have fixed user uptake issues to clients. This is exacerbated by the fact that PP/DS is also complicated to maintain – meaning PP/DS implementations that we analyze are often in a state of disrepair.

As with all of the APO products, while the ability to simulate is touted in the sales process, in reality, it is so onerous to set up, and on most APO projects simulation is only rarely performed. Therefore companies that use PP/DS

PP/DS has had ample opportunity to be successful, but it has not proven to be so. PP/DS has been negative for production planning and scheduling software in general. It is the best-known high-end production planning and scheduling application, and its failures have given a black eye to the overall software category.

For years consultants have been telling companies to buy a “real” production planning and scheduling application rather than relying upon MRP and Excel. However, when they do – they find that this solution also does not work and does not improve their production and scheduling plans. Many companies think that as SAP is such a large and distinguished company if they can’t get it to work who can? Most do not understand that PP/DS is merely a weak application. If there were a functioning market of information on enterprise software, PP/DS would no longer be recommended, but PP/DS implementations are lengthy and expensive endeavors, two things, which are highly desirable to the major consulting companies.

Finite or Bottleneck Resource

The PP/DS optimizer has the option of paying no attention to the bottleneck setting on the resource or of constraining all bottleneck resources. 

Plant Interactions

In environments where there are dependencies between production activities. One example of this is when a finished good in one factory is fed by semi-finished goods or components (or the components are in a third plant supplying the semi-finished goods plant, which I have in fact seen at several companies) — then the production across the various plants ends up being poorly integrated. For example, the widely used SAP PP/DS application has no way to resolve conflicts between factories that feed each other.  Like almost all production planning and scheduling applications, the application cannot even “see” this relationship because its design is such that each plant is seen as independent during the planning run. While the supply planning system can see the overall supply network, the vast majority of supply planning software can do nothing concerning multi-plant planning because it cannot create routings that span multiple factories.

PP/DS is an application buyer should steer clear of. It does not do what it promises there are far better alternatives in the market.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

SAP along with the major consulting companies have done a very effective job of convincing clients that SAP PP/DS is one of the best production planning and scheduling applications in the market. The fact that it is not only not even technologically impressive, but is extremely difficult to implement – and must be implemented only with its heuristics means that buyers are in for a rough ride with any PP/DS implementation. The trick with PP/DS is only to implement it in elementary environments. PP/DS will fail in complex environments like process industry manufacturing, and there is no advice that we can offer that will change that. We have been kept up to date on a process industry buyer that has been trying to get PP/DS to work for ten years. We told them about the limitations of PP/DS before their implementation, but they decided to put their trust in SAP, and now their operations are seriously compromised because of this application (as well as SAP SNP and DP). Because a PP/DS implementation will have problems in every possible dimension (functionality, user adoption, troubleshooting, output, etc..) PP/DS implementations must be kept simple to avoid a complete disaster.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

PP/DS should not be implemented with its optimizer – it will not work but will burn a tremendous amount of time during the implementation. Instead, PP/DS should be implemented with heuristics right from the beginning. Because the user interface is so weak, the users will require prodigious amounts of training. There are only two possible outcomes to a PP/DS project, very moderate success in the most uncomplicated environments, or failure, which requires successive, visits by high priced “SAP Platinum Consultants,” which don’t end up solving the problem. Following the advice in this section can put a buyer on the pathway to the former. All buyers should be prepared for an extremely challenging implementation.

*We often recommend independent consultants on projects to gain an objective opinion, but this advice will not work for PP/DS. PP/DS consultants that are independent hold the SAP line and distribute information that is as bad as that which is provided by consultants that work for SAP.

Finished With Your Analysis?

To go back to the Software Selection Package page for the Production Planning software category. Or go to this link to see other analytical products for SAP PP/DS.

MUFI Rating & Risk – SAP CRM

MUFI Rating & Risk – SAP CRM

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: SAP (Select For Vendor Profile)

Introduction

Application Detail

SAP CRM is technically proficient and has good reporting. Luckily, for its CRM application, SAP does not rely upon the stodgy old SAPGUI (which is used for most other SAP products) for its CRM, which would probably have killed adoption of the application. SAP CRM is rated as below average in buyer satisfaction.

However, again, SAP is a laggard in the user interface area, but SAP CRM still ranks as one of the best user interfaces that it offers, along with SAP Business One. SAP CRM takes the longest of any of the CRM systems that we have tested concerning performing tasks. Furthermore, the logic of the setup of the interface does not hold together well – it is simply a series of tasks. Does it need to be reemphasized at this late date how crucial it is to make CRM systems easy to use to expect to capture quality data from the sales force?

SAP CRM is one of the few CRM applications that is challenging to configure. Considering how simple CRM functionality is, and how there are many applications on the market that are quite easy to configure, this is a significant disadvantage. This translates into SAP CRM, as with most SAP applications, having the longest estimated implementation time of any application. It has the highest maintenance load, and the highest TCO – substantially more than even Oracle – if it were not for the fact that most SAP customers get SAP CRM for “free,” as will be discussed below.

SAP as normal lags the functionality of other CRM applications and buyers have to be willing to fall for the integration argument as well as the omnipresent recommendations from the major consulting companies. SAP CRM is essentially never purchased unless that company is also an SAP ERP customer – which tells one a lot about how competitive the solution is.

SAP makes many of these sales because they will often bundle the software in a way that fundamentally makes it appear free. Of course, the buyer must buy a lot of other SAP software to get this arrangement. Buyers who do have an interest in SAP CRM need to explore with SAP if they receive the licenses free of cost. Because if the license fee is not waived, our TCO calculations demonstrate that SAP CRM has one of the higher TCOs in the CRM space. As the financial returns of CRM systems are in serious question, the worst thing one can do is buy a top TCO application, as the likelihood of getting an economic return from the more expensive CRM applications is very low.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

Software Decisions Risk Defined: (See This Link for Our Categorization of Risk)

Buyers who purchase SAP CRM have a strong tendency to be “SAP shops,” who have often not performed their due diligence or run a proper software selection. SAP CRM is a middling application, but SAP sales build it up to be one of the best application in the CRM space, which it is not. Expectation management is therefore critical.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

Expectations must be lowered before the project kick off, and the scope must be conservative. Remember that the financial returns of CRM projects are quite dubious, and therefore it is, therefore, critical to not overpay for the implementation.

Finished With Your Analysis?

To go back to the Software Selection Package page for the CRM software category. Or go to this link to see other analytical products for SAP CRM.

MUFI Rating & Risk – SAP Business Objects

MUFI Rating & Risk – SAP Business Objects

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: SAP (Select For Vendor Profile)

Introduction

SAP with SAP BI, SAP Crystal Reports and SAP Business Objects is the largest BI vendor in the world. However, this leadership position is not based upon SAP’s product quality. Business Objects as an independent company was making good headway against SAP BI/BW, and the acquisition was driven by a desire to remove a competitor in the landscape and never had any strategic or “synergistic” reason beyond this. While there were a great number of promises made by SAP regarding what it would do with Business Objects, customers of Business Objects are worse off in every way since the acquisition. However, SAP continues to use the name recognition of Business Objects throughout much of its product line, including attempting to shore up very weak applications – such as the SAP PLM “application” that we cover in our PLM application section.

Application Detail

Business Objects is a once proud application that has fallen on hard times since being acquired by SAP. Business Objects used to have the very strong word of mouth among users, however, SAP’s lack of development combined with letting the bottom drop out of service, means that SAP Business Objects is now below average in buyer satisfaction. In fact, the reducing in buyer satisfaction is one of the most severe declines that we have recorded, and it all began when Business Objects was acquired by SAP. So all of the journalists that thought the acquisition of Business Objects was going to be so great for customers have some apologizing to do. Furthermore, Business Objects has had complexity creep, and this has reduced the usability and functionality of the application. Overall, a purchase of Business Objects pre-2007 SAP acquisition is an entirely different picture than a purchase of Business Objects today.

Business Objects is a flexible but difficult to use and high maintenance solution that every year looks further and further behind the competition. Along with the other large acquired BI vendors like Oracle BI and IBM Cognos, Business Objects that have received little investment since their joint 2008 acquisitions, Business Objects is on the wrong side of the self-service continuum.

SAP BO Builder

SAP Business Objects has a reasonably efficient data builder.

SAP BO Builder 2

It allows many data elements to be brought together quickly.

Much of the hope for Business Objects hinges on many promises that SAP has made to move applications to Hana, but we are skeptical that this will improve Business Objects or any other SAP application as much as SAP is touting. SAP has a marketing strategy of proposing something new and different every few years to keep companies from focusing on what they are currently offering. It is a distinct and observable strategy, and we are one of the very few media sources that write on it. The last major concept was NetWeaver, which did not change or improve anything concerning SAP or its capabilities. Buyers should not accept the excuse that poor performance in SAP applications will be fixed by the magic bullet of Hana – although this is what SAP is shooting for.

Beyond ever doing anything with Hana, SAP cannot seem to address persistent performance issues with Business Objects. Of all the BI applications that we cover Business Objects seems to be one of the least efficient regarding how it addresses hardware resources.

SAP has not added significantly to Business Objects, a software vendor it purchased in 2008. As such, SAP Business Objects it has an old design, performance issues. The Business Objects acquisition was one of the most mismanaged acquisitions we have ever analyzed. There was a great deal of hyperbole regarding how Business Objects would be integrated with SAP BI/BW, but aside from a few initiatives like the Business Objects Explorer (which turned out to have a great number of performance bugs), little to nothing has come of these promises by SAP. Business Objects is still not substantially integrated to SAP BI/BW, with most of the effort expended by SAP in integration between these applications being consumed in marketing.

Soon after the acquisition, the support for Business Objects began to drop off significantly. SAP did three things, which dramatically changed the value proposition of Business Objects.

  1. Reducing the Support
  2. Increasing the Price
  3. Considerably Slowing or Halting the Development

SAP Business Objects is not the worst of the BI offerings from the major BI software vendors, but there are many other better offerings in the market. The logic, frequently employed by SAP that SAP customers should buy Business Objects does not hold any water as Business Objects is still only loosely integrated with the rest of SAP. Buyers would be giving up a lot of functionality and would be paying top dollar for an aging application with extremely poor support.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

Business Objects has implementation challenges related to user adoption and report creation productivity. This must be adjusted for with more consulting and support resources. The Business Objects’ value proposition changed significantly after they were acquired because although the product has stagnated the prices for everything from consulting to training increased quite significantly. Another risk is that Business Objects has self-service pretentions, but it is quite far away from that, and in fact requires a great deal of IT support.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

Business Objects requires a higher than average allocation of resources that can train and support business users. As a high maintenance application, Business Objects will maintain a high support load post go-live – therefore it makes sense to hire Business Objects resources permanently. This will be much more cost-effective than relying on consultants – as they will need to be in for the long haul.

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for SAP Business Objects.

References

http://www.asugnews.com/article/sap-businessobjects-support-is-there-a-problem-here

http://www.informationweek.com/crm/sap-tackles-businessobjects-support-woes/d/d-id/1093824

http://www.itbusinessedge.com/cm/blogs/all/saps-business-objects-problems-go-beyond-gartners-quadrant/?cs=39556