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The worst mistake by Walmart – SAP will be devastating replacing its homegrown IT version
Susan Hicks
May 26, 2008

It is the tale of non-tech companies failing to understand the effect of mismanaged and undocumented IT development gown in-house. Even worse mistake is to try and replace the same with enterprise system software like SAP.

SAP can do little to control the organizational indiscipline and lack of competence among the employees of this corporation. What WalMart should have done is to first reengineer the IT system, reform its IT level organizational problems and then bring in external software systems like SAP.

What SAP will do is to first take away the freedom of development. It can be good for an organization that has corrected the root causes of troubles (indiscipline) through reengineering existing systems. They will try and create the same flaws within SAP, spend much more money and after five years, blame SAP.

Port Authority of NY and NJ and World bank in Washington DC. are an ideal examples. They bought into SAP four years back. They stopped talking to other vendors and spread an impression that software like SAP, PeopleSoft or Oracle Financial will solve all their problem and make them reach ‘Nirvana.’

Four years later they are back into their old habits. They now spend much more money. They blame these enterprise level software for all their troubles. The meta-development still lacks documentation and rigorous processes.


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