In a novel approach to choosing and implementing mid-market ERP software SAP has developed an "on-line configurator" to help potential purchasers to choose the functionality they need, price up the selected configuration and hasten the implementation through best practice industry processes. It is a bold approach to the perennial problem of how to make implementations quicker, smoother, less costly and more successful. But is the "on-line configurator" too complex and foreboding to the average midsized business? Gary Simon , FSN's managing editor takes a close look.
The SAP All-in-One Configurator
Is SAP's "On-line configurator" a way forward for mid-market ERP?
For some time, SAP has made no secret of its ambitions to conquer the mid-market. Its last big announcement SAP Business ByDesign concerned the provision of mid-market functionality as a rented or hosted 'Software as a Service' solution. This time SAP says that it is delivering on its commitment to meet the needs of small businesses and midsize companies, with a new fast-start program for its SAP Business-All-in-One solutions. The program targets midsize companies in the manufacturing, services and trade industries and provides them with the pre-configured industry-specific processes needed to streamline and gain visibility into their core business operations. Coupled with SAP's own database product and free choice of operating system, SAP says the offering helps to lower total cost of ownership (TCO) for an on-premise business solution.
However, the more interesting part of the announcement is the launch of online configuration, intended to enable prospects to tailor the solution to their business requirements and receive a comprehensive cost estimate for the complete SAP Business All-in-One solution – all before they get started. However, the "comprehensiveness" of the cost estimate has a health warning in the small print which says "Cost estimate is an SAP estimation only and not valid for partners; partners cost estimation may differ." Available so far in Austria , Australia , Belgium , the Netherlands and Switzerland , the fast-start program will be rolled out in additional countries worldwide throughout 2008.
SAP claims that w ith the new fast-start program, customers can easily access leading-edge enterprise resource planning (ERP) technology (SAP Business All-in-One in this case) and achieve faster time to value, by enabling companies to get industry-specific business processes up and running quickly. With a clearly defined set of pre-configured industry processes, implementation says SAP is fast and more predictable.
In order to see just how easy the online solution configurator is to use we gave it a try – see SAP Business All-in-One online configurator to give it a go yourself. The approach to industry seems very broad brush. It simply asks whether you are a "trade", "manufacturer" or "service" business. We selected "trade" followed by the "number of employees" (100 in our test) and "users" of the system (10 in our test) and out popped a bill for €75,000 made up of licences €29,000, Services €29,000 and Servers € 17,000. A rather foreboding block diagram shows the 'processes' implied by the previous selections, but you can de-select those that are not part of a mandatory configuration. One of the reasons FSN considers that the block diagram appears so formidable is that the colour coding used to delineate, say accounting processes from sales and production processes is not obvious until one stumbles on the 'legend' tucked in the top right hand corner of the screen. The other reason is that process blocks not selected, or de-selected are crossed through and greyed out (not enough in our opinion) but still appear on view – cluttering up the screen.
However, if you can overcome the barrage to the senses then the configurator makes sense, summarizing at a high level, SAP's take on 'best practice' processes. If you need more detail to make configuration choices then you can effectively drill down on each process block to reveal more configuration and process detail. At this level one is quickly immersed in detail that seems more appropriate to consultants and SAP partners who can help with your detailed requirements. Without specialist knowledge we suspect many mid-market companies would get 'lost'.
Pressing "Function-List", the last of 5 steps in the on line-configurator, causes SAP to send you a summary of the selections you have made by email. This includes the cost estimate, the process block diagram and a detailed view of the functions attributable to the process selections made earlier. Once again SAP provides a caveat about costs. "The functional scope is presented on the basis of preconfigured 'best practice' processes. In addition, an approximate budget-estimation is provided that gives you an idea of the costs for installing the solution in the selected size and scope at your company. The presented results that come out of the solution configurator for SAP Business All-in-One give you a budget indication of the one-time software license, hardware costs, the implementation of the solution at your company, and a basic training for your key users."
Does the on-line configurator meet its objectives? If you do not get drawn into too much detail then the answer from FSN is "Yes". Within the space of 30 minutes we had a first hand view of processes, functions and costs that might be appropriate to our business. In the past it would have taken weeks to get the same level of detail and doubtless it would have not been as accurate. Is it a gimmick? "No" it is not a gimmick. Neither SAP nor its partners are pretending that this is the ideal solution or that these are definitely the costs. What they appear to be offering is a mechanism that provides a structured approach and rationale for early decision making that allows mid-sized companies and SAP partners to have more detailed discussions around requirements. It is a helpful initiative that will save time and may provide SAP with a competitive edge.
