The Association of SAP Users criticizes gaps in the software and the poor integration of the programs. In addition, the Group is losing many qualified employees – customers are expressing criticism.
The SAP software group’s strategy has met with clear criticism from its customers. Too many programs had been initiated, but not further developed, the integration of the software solutions, some of which had been purchased for billions of euros, did not work as hoped, after all, the problem of the different master data in the programs was still not solved.
Source: Freytag Bernd: Konzern in der Kritik. In: Frankfurter Allgemeine 18.09.2019 (2019)
Market shares lost in Switzerland
The household appliance manufacturer V-Zug is in a difficult phase. In the first half of this year, the company’s sales fell by 4% to just under CHF 282 million, although according to Buhofer the overall market in Switzerland developed “quite stable and solidly”;. V-Zug is therefore likely to have lost market share in the highly competitive market for kitchen appliances and washing machines. Problems with the introduction of a SAP IT system had led to considerable delivery difficulties, as the company had already reported earlier. At the request of the NZZ, Buhofer said, “We have disappointed customers.”
In the red
Due to the major operational problems in connection with the introduction of SAP, the operating result (EBIT) of the largest subsidiary fell from CHF 21. 7 million to CHF 5. 5 million. This decline also left its mark at Group level.
Source: Feldges, Dominik: Der Haushaltapparate-Hersteller V-Zug befindet sich in einer schwierigen Phase. In: NZZ 19.08.2019 (2019)
Additional costs, delays, lost orders – after the introduction of SAP there was “a lot of rumbling”. A profit warning causes the share price of the parent company to plummet.
Metall Zug issued a profit warning a good week ago. A building refurbishment and problems during the introduction of the ERP system at the subsidiary V-Zug led to additional costs. Metall Zug writes in a profit warning that “sustained costs and loss of earnings in connection with the introduction of SAP”; would weigh on the balance sheet. This initially caused the share price to collapse by 13. 81 percent. For the first half of 2019, the company expects “an operating result (EBIT) in the region of CHF 0 million compared to CHF 36. 4 million in the same period of the previous year”.
The additional costs associated with the SAP project would have to do on the one hand with additional costs incurred for subsequent work and needed for additional employees. On the other hand, the
V-Zug’s service quality suffered and customers would have had to put up with delays. This had partly led to the loss of orders, explains the company. Metall Zug announced that the provisions for restructuring and the additional costs for the introduction of SAP would burden the operating result by CHF 14 million. How much of this is attributable to the SAP project, the group does not want to communicate on request from inside-it. ch.
Processes must be optimized
The persistent problems with the SAP system are partly due to the fact that the project was underestimated during preparation, according to the company on request.
Source: Bericht Inside-it vom 17. Juni 2019: V-Zug leidet unter SAP-Projekt (2019)
Source: Bayer, Martin: Für SAP-Kunden ist der Weg in die S/4HANA Welt lang und steinig. In: Computerwoche 6-7. S. 8-9 (2019)