You may recall my blog on SAP’s farcical claims about its software’s impact on company profitability. It looks like someone with more time on their hands than me actually checked up on the figures and found these lacking, in addition to the lack of logic in the original claim. Nucleus Research, who are noted for their rigor with numbers, found that in fact that SAP customers (identified by being listed on SAP’s web site) were 20% less profitable than their peers, rather than 32% more profitable. Of course this is not quite the same thing, but it is amusing: it suggests that only SAP’s identified reference customers are relatively unprofitable. Perhaps the ones who keep quiet are doing OK? As I noted earlier, the SAP claim was deliberately skewed to exclude all financial institutions (which share the twin characteristics of being highly profitable and rarely using SAP) while anyhow the notion that the choice of your ERP systems provider is a cause of either good or bad profits is both logically flawed and also deeply amusing to those of us who have watched companies spend billions implementing SAP to little obvious effect in terms of hard business benefits.
Good on Nucleus for poking further holes in this especially egregious piece of over-marketing. Bruce Brien, CEO of Stratascope, the company that did the market research for SAP, reacted by sayng:â€œTheyâ€™re making an implication that my numbers canâ€™t prove, but itâ€™s a marketing message. Companies do that all the time,â€ he says. Oh well, that’s all right then.