SAP's Apotheker takes on shoddy consultants, certifications
In an animated--and sometimes tense--conversation with bloggers, SAP co-CEO Leo Apotheker said the software giant would step over a systems integrator if it would save an IT project.
That comment, which was in response to multiple questions about the triangle between consultants, SAP, and customers, illustrates how the enterprise application vendor is trying to end the days where it's a whipping boy for failed implementations.
SAP's Leo Apotheker.
(Credit: Michael Krigsman via ZDNet News)"I don't give a s**t if it's Accenture or IBM. I care about the customer. I find it shocking people are walking around talking to customers and have no experience on (SAP). (Consultants) get hired of people and have no clue. It's annoying but that's a fact. Let's start by certifying people," said Apotheker. "If we believe (a project) takes 500 days and another partner says it's 5,000 days I'll do it for 500 and a fixed fee."
Despite that declaration, Apotheker said that he "can't boil the ocean" and that the sometimes unhappy triad of customer, SAP, and systems integrator can be complicated. The chat with Apotheker, which lasted about 45 minutes or illustrated a bit of a conundrum for me. On the surface, it would seem like a no-brainer that Apotheker puts the customer first. What company doesn't say that? However, Apotheker's statement is news in the world of SAP implementations, which need a lot of things to go right between the customer, integrator, and software vendor to work.
Vinnie Mirchandani, Michael Krigsman, and Brian Sommer drilled down on the systems integrator issue, the need for certifications and making implementations easier-assuming customers are already on SAP's most recent enterprise application suite. The overarching theme focused on how do companies prevent IT project disasters, which can literally put an enterprise out of business in a downturn.
"How can you avoid a project failure? You boil it down and make it simple," said Apotheker, who argued that Business Suite 7 was a big step toward making upgrades easier.
On certifications for consultants, Apotheker said they are necessary. SAP currently has certification programs, but SAP mentors--top players in the developer community--say the specifics are vague. Meanwhile, Business Suite 7 will add even more competencies to the equation. A developer could get certified on SOA, specific modules and processes and vertical industries.
How will this certification process be managed?
"It's a very hard question. We are not a university and it's not up to SAP to make a judgment on people's skills. We can only certify people on their knowledge," said Apotheker. "We will try to keep it at a reasonable level."
Certifications, however, aren't the only answer. There are legal issues over customer contracts with integrators--when can SAP jump in on a soon-to-fail project? "Everyone says 'It's a failed SAP project' and we get the black eye. Annoyingly enough there's a contract between customer and system integrator. What I want SAP to do is to push on customer to be articulate to know what they really want and also push on the system integrator. I've written to customers that you need to do 1, 2, 3, or your project will fail."
"The loyalty is always to the customer. Period," said Apotheker.
But when questioned whether that approach was actually practiced in the field amid relationships with big consulting firms, Apotheker got a little wound up. He denied the assertion that the customer may not always be front and center.
"I've been in the field all my life. That monster out there is my creature. Loyalty is to the customer. The obligation is to the customer," said Apotheker, noting that he has ended relationships with integrators over failed projects.
"We're living in interesting times. SAP is going to dedicate a huge amount of effort to help customers to find ways to use technology to come out of this environment faster," said Apotheker. "I'm totally focused on it."
See also:
• Systems integrators: The model has to change
• Is SAP really done with 'scary upgrades' and 'sleepless night' projects?
• SAP adds enterprise 2.0 features to latest suite; Twitter meets ERP
• SAP BusinessSuite 7: Twittery clouds?
• SAP touts modular approach; Launches Business Suite 7
• Lemons into Lemonade - Business Suite 7
Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995. 
Certifying is just one aspect of improving quality. Honestly, certification is no substitute to implementation experience. SAP and other vendors should try to focus of training/ certification companies that offer more than just training. Some, I am told, offer to cook up implementation experience if you train with them.
No technology vendor can live without independent integrators like ACN. If they can influence ACN to ensure that they do not load consultant on a project to learn at client's experience that would be great.
Finally, will SAP or any other vendor be honest enough to admit that their software may not be a good fit?
It is true that it takes 4 to 5 years of project experience and continuous education to cope with the complexity of SAP ERP software, especially when it comes to integration of processes. In the later case a team of experts is needed, each having many years of experience. However, this is only half of the story.
Many executives think e.g. of an SAP upgrade as an easy exercise like upgrading the laptop from Acrobat Reader 5.0 to 6.0. However, ERP software is usually not a single user system and it deals with much more data than is stored on a local laptop.
An ERP software is the process and information backbone of a company. To support the business it must fit the customers processes, organisation and data like a glove. Now, SAP offers a standard software. This sounds like the promise to have a glove that fits all hands. It is simply not true.
Not all customer processes can be mapped equally well onto the SAP platform. There are main stream processes that are easily mapped and others that may required even the development of new software. In the sales processes these topics can be handled via "Industry Best Practices", that are SAP customization settings and process handling, that are best of class. So a win-win situation is generated: the customer improves his/her processes and SAP can map the new processes more easily. At least customers tend to believe that it is a win-win situation, which is to be seen if you get a new company.
These process changes introduce often organisational changes, so that during the project a full blown change management project can be created and responsibilities of business owners are changed. This creates a lot of uncertainty.
In the end large parts of the customers business may be rebuild to adapt to a new software platform and the consultants are running after the sales promises.
Up to now, I have been talking about getting the ERP software running and supporting the business. The sales promise is more, it is to enable the business to perform better. Also, I have not been talking about little bugs in the software, data inconsistency etc. when it comes to the role out.
- by srinivas_Kolluri February 12, 2009 8:22 AM PST
- I agree. I came across a few projects where SAP's pwn consultants controbiuted to the mess. SAP hired a lot of SAP consultants based on the lowest rate quoted and not on the basis of skills.
- Like this Reply to this comment
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(7 Comments)The same with BIG5 too.
But I put the blame on SAP Customers and end clients too. They don't apply their mind and never care for the quality of SAP Consultants brought by the system integrators to the site and spend a fortune on them. Later they repent. At the same, when they hire SAP Consultants on contract, end clients don't
even talk to you if you rate is slightly higher.
For example, recently, an end client looking for a SAP SRM expert to blueprint for SAP SRM7.0.
I worked on SRM 7.0 on a prototype. But the end client didn't even talk to me because my rate is 30% higher and hired one who never worked on SRM7.0. He would have talked to meand then negotiated , but he didn't.
So here everyone has to share the blame.
Best Regards
Srinivas Kolluri