Philippine SAP community
The brand has taken a hit: aside from its loyal customers taking their disappointment to social media, Jollied has lost 6% of its sales at least for the last 7 days of August due to the problem, using Jolliness’s 2013 revenue that amounts to PH. 92 million. This is on top of the PH. 500 million that the company supposedly shelled out for its new IT system.
ISSUES 1 . System migration lobbied had been using a product from software company Oracle to manage its supply chain, which includes inventory, placing of orders and delivery of supplies to stores.
Insiders say a dispute to Oracle prompted Jollied to switch to its rival, SAP. Now, supply-chain products aren’t out-of-the-box that you can Just install and run. These need to be customized in order to fit a company’s business processes. The customization usually takes months, if not over a year, and involves programming and configuration.
Jollied outsourced this project to a large multinational IT service provider. Jolliness’s Oracle system had been running for about years, and most certainly, had huge amount of complex programming and continuous modification over time.
There must have been fragile interrelationships between these programs and configurations, making the migration to SAP a huge and risky move. 2. Staffing and expertise ere migration project was outsourced to a large multinational IT service provider, Ninth no sizable local team handling SAP, according to members of the Philippine SAP community.
The interviewed people have never heard of that vendor taking on Philippine projects using SAP before, which is why they concluded that the vendor does not have significant SAP expertise locally. Also, they said there was a flurry of secreting for SAP professionals for that vendor.
It was a “red flag” because it seemed the vendor was having trouble filling positions required for the project. The vendor reportedly brought in people from India and other countries, but sources said the project remained understaffed. To assemble a large team of outsiders and have them Nor on a complicated project that that quickly? It’s troublesome. We can assume the outsiders have not worked under a common methodology and culture.
They don’t have a common understanding of standards and processes. It takes a while to learn he ropes. 3.
Schedule and size iris is a half-a-billion-peso project, but it has an operating schedule of Just a little over a year?from the time the recruitment activity started till the supply chain issue rook out. Many tot the projects costing Just 5% tot this amount and a two-year timetable.
A project of this size will require 3 to 5 years to properly implement?from inception to transition. Maybe this was Just the first phase, but unfortunately for lobbied it was already costly. 4. Testing resting to check if the system’s features and processes are working is one of the most overlooked aspects of IT projects.
Unfortunately, most projects do this towards the end.
The later the defects are found, the more expensive they are to fix. An SAP expert was asked on how testing is done in SAP and he replied, mound be surprised at “hat passes for a unit/functional/integration testing in Oracle and SAP projects. ” Nile the practices and tools for testing have matured over the last two decades, very few of them are properly applied to most ERP projects like Jolliness’s. ERP or Enterprise Resource Planning is the software system for business processes.
