Inside the Massive $100M SAP S/4HANA Failure at Spar Group

Would you believe me if I told you a large retailer spent $100M on its SAP implementation and it resulted in a massive failure?
Stay tuned to this video to find out more.
#saps4hana #erpimplementation #organizationalchange
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[@lawotschkin]

my former boss always said: There are 3 ways to run a business into the ground: Drinking, Women and installing SAP ..

[@yizzi25]

One recurring pattern I've observed in ERP failures is that the sales team often overpromises about a product in order to secure a deal. However, when reality sets in, no one acknowledges the extent of the exaggerations or false assurances about how a product or module would transform their lives.

[@kbrenko]

In my experience I noticed what are the early signs of ERP failures. 1. Sales team signes the deal without having consulted the team who will actually work on the project. 2. Sales never consulted Project and Program Manager. 3. No current state analysis 4. Client doesn't share complete informations of processes etc....

[@SharipovAbrorbek]

We can get the great lessons from the failure of Spar Group. Thank you for useful video.

[@jimloesel2849]

He buried the lead. The keys to the successful project start at 6:43. 1. Define your current process 2 determine what you are doing well 3. Determine what you are not doing well. 4. Determine your future state process. 5. Make sure your future state process does not destroy the processes that are working well.

[@Fab807]

Alternatively, you adopt a system as close to your process as possible. Then you adopt the out of the box processes, minimize customizations and train everyone in parallel

[@hha9232]

Who did the implementation? That’s the first thing to look at. S/4HANA as an ERP is very succesful. It is people who needs to have the skills for such an implementation. Thank you.

[@CasaDeMold]

100M ... I need increase my price of my implementation.

[@vmlinuxz]

I'm not nearly as proficient as you guys, I've only implemented 3 ERPs in mid and large sized companies. The few times that I am not coming in on a failure to correct it and end up at the beginning I try to stress how important the things you're talking about in your video here are but the fact is leadership often just doesn't listen to their information leadership. I've quit more than one position where I've been hired to do an ERP and realize before they even started that it was going to be a disaster.

[@Wiintb]

Sure ways of killing your business. 1. Do DEI. 2. Do ESG 3. Do ERP.

[@peterhall6656]

In the final fays of the Third Reich Hitller and Goebbels had a discussion:" we are done, what can we do to destroy western civilizatioin when we are dead?" Albert Speer piped up and said "SAP".

[@PaulStruck-x4e]

Spar (or Despar) is based in Amsterdam... South Africa is largely dutch-based, but they're based in Amsterdam, NL... $100MM for an $8Bn organization is not 'out of bounds' from a budget perspective, especially for a global implementation. If anyone has ever dealt with Dutch-based organizations, will know how challenging it can be. Trust me on this one.... Finally, some of the most talented SAP resources I've ever worked with were from The Netherlands, so am somewhat surprised they couldn't find enough 'local talent'.

[@techevar]

Having done many SAP migrations, it all boils down to the Project Manager/s. I successfully managed the transformation of the company in my last role after it tried three times before I joined them.

[@jimloesel2849]

There’s two type of project managers out there. A lot of the certified PMP’s I’ve run across are just ‘book trained’ schedule keepers. They don’t add a whole lot of value besides checking off the boxes that something was done, and they don’t have the knowledge to know if it was really done well. The second type actually have real world experience. They engage and educate management. They push for a high quality engaged team member, not just what ever low level person is available. They ensure things that are marked done are approved by knowledgeable people. And they make sure change management and training is integrated into the planning cycles.

[@Noname-bg8sh]

0:05 check again, some years ago german LIDL spent 500milion and 5years on a failed SAP migration and went back to theire inhouse custom build Software

[@richardhoulton4016]

I’ve been around and implemented a number of WMS systems and S/4’s EWM module is garbage!

[@dhirajtamke4826]

😂..reasons pls

[@richardhoulton4016]

@ Considering it’s an S/4 module, it’s poorly integrated to S/4 in general. And IM is too lightweight for most businesses that have a warehouse, and EWM is a sledgehammer to crack a walnut and SAP offer nothing in between.

[@tanery.7323]

You need a little army to keep it running... Old fashioned bugs pocket...

[@ahmedsalaheldin6275]

Think you about information 😮

[@vivekkapoor9334]

Any SAP implementation is a Collaborative Process.Its not only System Integrator Failure as Client Cooperation is equally responsible.I dont agree that Designing New Processes or Current state have not been understood as these days SAP has come with so many advance tools that chances of failure are relatively less.Especially with RISE with SAP and GROW with SAP concepts in full flow with prime focus on CLEAN CORE causes SAP implentation to be failure prone

[@jacob2613]

Having sold WMS implementation resources, I've noticed BlueYonder (took over Manhattan) to be a relatively easier ERP for Enterprises to implement successfully on first-go.

[@kumartamil6]

wow

[@eggsaleeggsale]

Spar is a dutch company not south-african lol :D

[@jamesgreig3795]

The Spar Group is a licencee I guess of SPAR International B.V. And operates 4500+ stores, approximately 1/3 of all Spar stores globally. They operate in Southern Africa, Ireland, Poland, Switzerland, United Kingdom And Sri Lanka.

[@mickyg1953]

​@@jamesgreig3795 Correct, and operates as an independent company licensing the Spar brand. The SAP issue was at their KZN regional distribution hub.

[@eggsaleeggsale]

@@jamesgreig3795 Yeah dude, just like coca cola, that doesn't make it South-African. Coke is USA based, Spar is Dutch based.