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   Kaytek IT - SAP Procurement Insights |
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Kaytek IT - SAP Procurement Insights |
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In one of our earlier Brief ERP Consulting Assignments for a Customer in the Manufacturing Discrete Segment, a few Tier-1 (Global) ERP Vendors were being considered. Kaytek suggested to the client to first ask if the ERP Vendor had developed a Specific Solution for the Customer's Industry. If so, to look at the same and evaluate it seriously. If not, then to ask the Vendor to provide the ERP package free of cost. The Customer was Shocked. " Why would the ERP Vendor give me their software free of Cost? " he queried. "Because they need your Industry Specific Domain Knowledge", we said. An ERP Implementation should be viewed as a Partnership between the ERP Vendor and the Organization. The ERP Vendor providing the Technological Platform and the Organization providing the Industry Business Specific Domain and Process Functional Knowledge. Earlier at an Indian Software Industry Association Meeting in Mumbai, the CEO of an Indian ERP Company had mentioned to us that if need be, SAP was also offered free to certain customers. |
To verify as to whether these were (to be ignored) biased remarks of perhaps a SAP competitor, I raised the question on one of the global ERP forums to actually find out instances where SAP had been provided free to organizations. Yes. I got a few answers that if need be, SAP had been provided free. This was where SAP felt that they could leverage their implementation knowledge at the customer organization into future industry specific software versions. Also, for Small to Medium Sized Business Organisations, SAP launched a new software called as SAP Business One. To promote the same in Canada admist the tough market competition, it was reported that it was being offered free to some customers. Microsoft wanted to grow it's ERP (Navision Attain and Axapta) Software Sales and Services from the Small to Medium Sized Organizations into a US 10 Billion $ Revenue Business in the future. Also, Information Technology is becoming a Utility, just like Electricity, Water, Telephone, Cable Services. All ERP Vendors (including SAP) want your business. So if your organization is in a Unique Business or Industry Segment and you feel that SAP is best suited for you, you can perhaps negotiate with SAP and maybe get it free !!!! However, nothing in life is ever free. Once your organization is hooked on to a technology platform, past experience shows that the IT vendors negotiating position becomes stronger. |
Their future software annual maintenance fees for upgrades, bugs / defect fixes, new versions become very high. So, One must be careful to negotiate the same upfront at a fixed price. Related - SAP Project Cost Components Email Us : Would you like us to assist you in your SAP Procurement ? |
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