ERP Software Solutions

McKinsey's ERP warning for CFOs: 1. 70% of ERP transformations fail     Most ERP projects run over budget and underdeliver. Why? Because companies underestimate complexity. Finance expects a big bang switch. Instead, they get endless data cleanups, mismatched chart of accounts, and broken workflows. In finance, a 90% rollout isn’t a win. If one close process breaks, the whole system stalls.     2. It's your design, not your tech     CFOs blame vendors. But the real issue is design. Too many teams lift-and-shift old processes into new systems. That hardcodes inefficiency. The 30% who succeed don’t copy the past. They redesign approvals, reconciliations, and controls before go-live. ERP isn’t a tool migration. It’s an operating model redesign.     3. Finance feels the pain first     In sales, if CRM misses a field, people workaround. In finance, if ERP misses a journal entry, you misstate results. Month-end closes, audits, and compliance magnify every flaw. That’s why ERP failures show up in finance before anywhere else. Unless you engineer accuracy and reliability from day one, the CFO’s credibility is at risk.     4. The gap turns critical     McKinsey calls it out: 70% stuck, 30% pulling ahead. The stuck companies run digital systems that replicate legacy pain. The winners embed automation, shared data models, and continuous improvement. Over time, that gap compounds into faster closes, lower costs, and better decision-making.     TAKEAWAY ERP failures don’t just cost money at go-live. They lock in inefficiencies for years. Every close takes longer. Every audit is harder. Every board deck gets delayed. The reverse is also true. When ERP is designed right, benefits compound: - Faster closes free capacity - Automation creates leverage - Cleaner data sharpens insight The real gap isn’t visible at launch. It shows up quarter after quarter, year after year.

𝗘𝗥𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗱𝗼𝗻'𝘁 𝗳𝗮𝗶𝗹 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆. They fail because of people. After 25+ years helping organizations navigate digital transformations and serving as an expert witness in some of the largest ERP lawsuits in the world, I can tell you the pattern is always the same. It's not the software that breaks. It's the system around it: → 𝗕𝗶𝗮𝘀 in vendor selection — where decisions are driven by relationships and sales influence rather than business fit → 𝗖𝗼𝗻𝗳𝗹𝗶𝗰𝘁𝘀 𝗼𝗳 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 — where the people advising you also profit from the outcome → 𝗖𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗿𝗲𝘀𝗶𝘀𝘁𝗮𝗻𝗰𝗲 — where organizations believe they're "too big to change" → 𝗪𝗲𝗮𝗸 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 — where no one owns the outcome and risks go unmanaged → 𝗣𝗼𝗼𝗿 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 — where leadership delegates instead of leads The US Air Force spent $5 BILLION on an Oracle ERP implementation before canceling it. A Senate investigation called it an "organizational disaster." The technology wasn't the problem. Haribo nearly killed the gummy bear market when their SAP go-live — timed at peak Christmas season — caused supply chain chaos and millions in losses. These aren't just cautionary tales. They're proof that your transformation strategy matters more than your software choice. If you're about to embark on an ERP journey, ask yourself: Are the people advising you truly independent? Is your organization ready to change? Do you have governance strong enough to catch problems before they become disasters? The answers to those questions will determine your success — not the logo on your software. ♻️ Repost if you agree. Follow me for more transformation insights. #ERP #DigitalTransformation #ERPFailure #ChangeManagement #EnterpriseStrategy #SAPFailure #OracleERP #TransformationStrategy #Leadership #ThirdStageConsulting #CIO #CFO #BusinessTransformation

LSMW, LTMC, and DMC — Confused? You’re not alone. If you’ve ever scratched your head wondering which SAP data migration tool to use, let me simplify it for you — with real talk and real scenarios. 1. LSMW (Legacy System Migration Workbench) Old is gold… until it breaks. LSMW is like the classic Nokia phone — reliable, sturdy, but not designed for today’s smartphones. It works well in SAP ECC systems for simple data loads like Materials, Vendors, Equipment, etc. Use it when: • You’re on ECC (not S/4HANA). • You need quick one-time loads for small datasets. • You love recording and field mapping. Real scenario: Back in the ECC days, we used LSMW to upload 10,000+ Material Masters from Excel. Recorded once, repeated forever. Why not now? Because SAP S/4HANA doesn’t fully support LSMW. Time to move on. ⸻ 2. LTMC (Legacy Transfer Migration Cockpit) The stepping stone into S/4HANA. LTMC is SAP’s bridge tool — introduced with S/4HANA to make the transition from ECC easier. It comes with predefined templates, making it easier for functional consultants to use without deep ABAP skills. Use it when: • You’re migrating master or transactional data to S/4HANA. • Your project is using SAP GUI or Fiori (LTMC works with both). • You want an Excel-based template with structure. Real scenario: We migrated 5 years of Equipment and Functional Location data into S/4HANA using LTMC — templates were simple, mapping was straightforward. Why shift away? LTMC is deprecated in newer S/4HANA versions (2022 and above). SAP is moving everyone to DMC. ⸻ 3. DMC (SAP Data Migration Cockpit - Cloud or On-Prem) The future of SAP data migration. DMC is fully integrated into S/4HANA, with enhanced capabilities, performance monitoring, and direct staging tables. It supports complex data loads and integrates with SAP BTP (in cloud scenarios). Use it when: • You’re working on the latest S/4HANA (especially cloud edition). • You need advanced mapping, transformation, and performance tracking. • You want to future-proof your migration process. Real scenario: In a recent greenfield S/4HANA cloud project, we used DMC with staging tables and BTP services to load thousands of Customer-Vendor (BP) master records. Way smoother and more controlled than LTMC. ⸻ So… which one to choose? Final Thought: Choosing the right tool isn’t just about what works — it’s about what lasts. SAP is evolving fast. DMC is the way forward. If you’re still using LSMW in a cloud project… it’s like using a floppy disk to back up your Google Drive.

I’ve audited ERPs across 6 countries. From SAP and Oracle to homegrown systems. And the single biggest root cause of reporting failure? Inconsistent spelling in master data. Let me give you a real story: In 2022, I worked with a large metals manufacturer in the UAE. $450M in annual revenue. Oracle backend. Everything “looked fine” on the surface. But month-end inventory valuation kept going off by 7–9%. The issue? Same raw material, different names:  - Aluminum Alloy - Aluminium Alloy - Alu Alloy - Al Alloy - ALUM.ALY Each spelling lived in a different item code or cost center. And WIP was overstated by $4.6M. ERPs fail silently when humans speak 5 dialects of the same data. Different teams create masters. Different countries have different spellings. Nobody flags it. Until a statutory audit or stock variance explodes. My fix? 𝐀 4-𝐬𝐭𝐞𝐩 𝐒𝐩𝐞𝐥𝐥𝐢𝐧𝐠 𝐀𝐮𝐝𝐢𝐭. Before I touch a single module or suggest a migration, I do this: ✓ Run a fuzzy match on item master names (threshold: 85% similarity). ✓ Check project WBS and cost center naming patterns. ✓ Map ledger account titles across entities. ✓ Ask the CFO to approve the “core vocabulary” that all teams must use. This takes 3–5 hours. But has saved companies anywhere between $600K to $6M. Your ERP doesn’t need another feature. It needs one language. Start with spelling. ♻️ 𝐑𝐄𝐏𝐎𝐒𝐓 so others can learn.

ERP Projects Fail for Many Reasons. Ignoring Integrations is the Fastest Way to Doom One. Too often, ERP projects run over budget, take too long and fail to deliver. The culprit? Overlooked integrations. I see this mistake all the time. Companies focus on ERP functionality but forget that no system operates in isolation. Data flows, third-party systems, and automations must be planned from day one—not as an afterthought. That’s why I put together a no-nonsense whitepaper on how to make ERP integrations work instead of becoming a hidden pitfall. 5 Practical takeaways from the whitepaper: 1. Define all data flows at project kickoff – Document dependencies between systems early. Surprises later = delays & cost overruns. 2. Master data first, transactions second – Sync customers, vendors, and products first. If your master data is broken, transactions will fail. 3. Set a realistic integration timeline – Sync integration tasks with ERP rollout. If integrations are late, the entire project stalls. 4. Test with real data, not fake records – Your ERP test system should mirror production. Otherwise, the first real transaction is your actual test. 5. Make integrations visible – Use visual mapping tools to align teams, avoid assumptions, and ensure all critical systems stay connected. Get the full whitepaper here: https://lnkd.in/dfNHA9nN ERP success is not just about the ERP—it’s about how well everything connects. Integrations First. Always. #ERP #Automation #iPaaS #PMO #ProjectManagement

𝗪𝗵𝘆 𝗱𝗼 𝘀𝗼 𝗺𝗮𝗻𝘆 𝗘𝗥𝗣 𝗺𝗶𝗴𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗮𝗶𝗹? 𝗕𝗲𝗰𝗮𝘂𝘀𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘁𝗿𝗲𝗮𝘁 𝗶𝘁 𝗹𝗶𝗸𝗲 𝗮 𝘀𝗶𝗺𝗽𝗹𝗲 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗽𝗮𝘁𝗰𝗵, not the business transformation it truly is. Listening to my network, there seems to be a rush to complete ERP migrations, as fast as possible, with SAP S/4HANA plans driving most of it. But an ERP system is more than just an IT upgrade. It’s a chance to redesign how your business operates and build a solution architecture that supports agility and innovation. While necessary, these migrations often become redundant without proper alignment to business goals. Something, I've seen happen! Here some get rights to consider: ◉ 𝗔𝗹𝗶𝗴𝗻 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗮𝗻𝗱 𝘁𝗲𝗰𝗵 𝗴𝗼𝗮𝗹𝘀 Ensure that IT and business leaders are on the same page. ERP systems serve broader business objectives, such as innovation, improving procurement strategies, and enhancing supplier relationships. ◉ 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝘁𝗼𝗼𝗹𝘀. Instead of getting caught up in the technology itself, be clear about the business benefits you'd like to achieve. New ERP functionality can be of support to achieve goals like efficiency, cost reduction, and agility. ◉ 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀 𝗲𝗻𝗱-𝘁𝗼-𝗲𝗻𝗱 Don't just migrate complex, outdated processes but streamline them end-to-end. Reevaluate processes for efficiency and desired outcomes. ◉ 𝗜𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 - 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗶𝗻 𝘁𝗿𝗮𝗶𝗻𝗶𝗻𝗴 ERP migrations often fail due to poor user adoption. Beyond training, invest in communication & ongoing support showing the value and relevance of the system to users. ◉ 𝗜𝗻𝘃𝗼𝗹𝘃𝗲 𝗰𝗿𝗼𝘀𝘀-𝗳𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝘁𝗲𝗮𝗺𝘀 ERP impacts every area of the business, so cross-team collaboration is essential. Involve stakeholders from finance, procurement, IT, and operations ensures the system meets everyone’s needs. ◉ 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗱𝗮𝘁𝗮 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 - 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗰𝗼𝗺𝗽𝗿𝗼𝗺𝗶𝘀𝗲 An ERP system is only as good as the data it processes. Ensure that data is clean, consistent, and reliable before migration. Dirty or incomplete data is one of the biggest challenges post-go-live. ◉ 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘀𝗲 𝗦𝘆𝘀𝘁𝗲𝗺 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗼𝘀𝗮𝗯𝗶𝗹𝗶𝘁𝘆 Choose an architecture which allows for future-proofing and integration of new features, scalability and integration. Business models evolve, and your ERP must evolve with them." ◉ 𝗦𝗲𝘁 𝗿𝗲𝗮𝗹𝗶𝘀𝘁𝗶𝗰 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲𝘀 - 𝗶𝘁'𝘀 𝗻𝗼𝘁 𝗴𝗼𝗶𝗻𝗴 𝘁𝗼 𝗯𝗲 𝗾𝘂𝗶𝗰𝗸 𝗶𝗳 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝘃𝗲 Don’t rush an implementation. ERP migrations are complex and require time to integrate properly. A phased approach allows for troubleshooting and mitigates a risk for failure. ❓Any other "get rights" i missed and you would add from your experience. #erp #businesstransformation #migration #sap4hana

𝗘𝗥𝗣 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀 𝗮𝗿𝗲 𝗡𝗼𝘁 "𝗢𝗻𝗲 𝗮𝗻𝗱 𝗗𝗼𝗻𝗲" I had a call during the week from a CFO who shared that they were struggling with their new ERP, and it was not working well for them. Despite investing more than $1M dollars, they found themselves no better off than before they started. They were still facing issues with workflows, reporting and user adoption. The story thus far is as follows: 1️⃣ They completed an ERP Vendor and Solution Evaluation 2 years ago. 2️⃣ They selected their preferred Vendor and Solution. 3️⃣They signed Contracts with the Vendor. 4️⃣ The Vendor commenced the Implementation. 5️⃣ They went live on the new ERP system 13 months later. However, the client is still not happy with the outcome. So, what went wrong? They trusted the ERP Vendor would look after them and they probably did to a point. What they hadn’t realized is that they needed to take more responsibility for the success of the project themselves. 𝗧𝗵𝗲 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗼𝗳 𝗮𝗻 𝗘𝗥𝗣 𝗽𝗿𝗼𝗷𝗲𝗰𝘁 𝗮𝗹𝘄𝗮𝘆𝘀 𝗻𝗲𝗲𝗱𝘀 𝘁𝗼 𝗿𝗲𝗺𝗮𝗶𝗻 𝗳𝗶𝗿𝗺𝗹𝘆 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗰𝗹𝗶𝗲𝗻𝘁. The Client needs to commit to the following resources: ✅ An involved and visibly engaged Business Sponsor. ✅ An experienced "client-sided" Project Manager. ✅ Business Process Owners who have time to be involved in the project. ✅ Regular Steering Committee Meetings to provide guidance and make decisions. ✅ Appropriate Change Management and Training. ✅ Rigorous Test Management. ✅ Ongoing support after Go-Live for future enhancements. These projects are not “𝗢𝗻𝗲 𝗮𝗻𝗱 𝗗𝗼𝗻𝗲”. They require ongoing care and attention to detail. As a CEO or CFO, don’t be pressured into going live until you are confident the system can effectively run your business. Remember, the responsibility for project success ultimately lies with the Client, rather than the Vendor. Do you have any thoughts to add? #ceo #cfo #coo #erp #erpprojects

SAP Joule is not just a chatbot sitting on top of your ERP. The integration architecture tells a more interesting story. When Joule connects with S/4HANA, here is what is actually happening under the hood: The end user interacts through the Application Client, but authentication runs through SAP Cloud Identity Services with Identity Provisioning handling the trust flow between source and target systems. Nothing reaches Joule without that identity layer being resolved first. Inside BTP, the Joule Assistant operates through a Capabilities framework — connected to a Content Channel via SAP Build Work Zone, with Cloud Foundry Runtime underneath. The Destination and Connectivity Services handle the back-end data access back to S/4HANA's OData Services and Content Provider. The Document Grounding component is worth paying attention to. It extends Joule's context beyond transactional data — pulling from Microsoft SharePoint customer documents via CDM design-time access. This is where the "enterprise context" in AI responses actually comes from. Three things this architecture signals: 1. BTP is the non-negotiable integration fabric — Joule does not work around it, it works through it. 2. Identity and trust setup is the first real implementation challenge, not the AI configuration. 3. The value of Joule scales directly with the quality of your content grounding and OData exposure. AI in ERP is only as intelligent as the architecture enabling it.

The biggest businesses can get major programmes horribly wrong. Here are 4 famous examples, the fundamental reasons for failure and how that might have been avoided. Hershey: Sought to replace its legacy IT systems with a more powerful ERP system. However, due to a rushed timeline and inadequate testing, the implementation encountered severe issues. Orders worth over $100 million were not fulfilled. Quarterly revenues fell by 19% and the share price by 8% Key Failures: ❌ Rushed implementation without sufficient testing ❌ Lack of clear goals for the transition ❌ Inadequate attention and resource allocation Hewlett Packard: Wanted to consolidate its IT systems into one ERP. They planned to migrate to SAP, expecting any issues to be resolved within 3 weeks. However, due to the lack of configuration between the new ERP and the old systems, 20% of customer orders were not fulfilled. Insufficient investment in change management and the absence of manual workarounds added to the problems. This entire project cost HP an estimated $160 million in lost revenue and delayed orders. Key Failures: ❌ Failure to address potential migration complications. ❌ Lack of interim solutions and supply chain management strategies. ❌ Inadequate change management planning. Miller Coors: Spent almost $100 million on an ERP implementation to streamline procurement, accounting, and supply chain operations. There were significant delays, leading to the termination of the implementation partner and subsequent legal action. Mistakes included insufficient research on ERP options, choosing an inexperienced implementation partner, and the absence of capable in-house advisers overseeing the project. Key Failures: ❌ Inadequate research and evaluation of ERP options. ❌ Selection of an inexperienced implementation partner. ❌ Lack of in-house expertise and oversight. Revlon: Another ERP implementation disaster. Inadequate planning and testing disrupted production and caused delays in fulfilling customer orders across 22 countries. The consequences included a loss of over $64 million in unshipped orders, a 6.9% drop in share price, and investor lawsuits for financial damages. Key Failures: ❌ Insufficient planning and testing of the ERP system. ❌ Lack of robust backup solutions. ❌ Absence of a comprehensive change management strategy. Lessons to be learned: ✅ Thoroughly test and evaluate new software before deployment. ✅ Establish robust backup solutions to address unforeseen challenges. ✅ Design and implement a comprehensive change management strategy during the transition to new tools and solutions. ✅ Ensure sufficient in-house expertise is available; consider capacity of those people as well as their expertise ✅ Plan as much as is practical and sensible ✅ Don’t try to do too much too quickly with too few people ✅ Don’t expect ERP implementation to be straightforward; it rarely is

Modern ERP systems have enabled many parts of sourcing activities to be put into a single enterprise wide edifice of “truth”; from planning what to buy , when to buy and from whom to buy to the eventual fructification of the whole cycle of activities that traces a contract between a supplier and the firm to the receipt of goods and services to the perpetual cycle of supplier relationships that pervades the entire life of the supplier engagement as firms seek circular procurement partnerships (repetitive and constantly innovating to improve) and not a linear display that must start with contracting and end with the receipt and payment to the supplier. This in short is referred to the Supplier Life Cycle engagement. Supposing you want to buy an equipment, you cannot simply restrict yourself to the procurement of the equipment alone together with the service agreement as a onetime affair, but a circular process that enables you to partner with the supplier throughput the life of the equipment right up to the eventual end of life, after which the supplier could be involved in various recycling of the parts of the equipment such that the process remains sustainable. The life cycle engagement has other numerous connotations as during the running of the equipment all the necessary innovation needed on the equipment can only be done if the supplier is part and parcel of every running hour of the equipment. As the life cycles are getting shorter, the demand on innovation rises that much and it is only expected that the supplier remains entrenched with the firm in a myriad of exchanges that must be on a platform that makes allowance for all vital information to be stored and easily retrievable. In modern times this falls in the realm of Big Data, which essentially is a seamless continuous exchange of terra-bytes of information that can be visualised and put to best use by algorithms. But even in small measures, much of the supplier interactions are not part of the legacy ERP systems most firms use. Even when you have plugged most of the gaps in your ERP systems by adding several other layers of added re-inforcements, you will still find that the quest for finding the missing gaps still remain in our systems that incorporate the modules that sit on top of the ERP modules. These systems often fail to capture all data related to supplier interactions for several reasons, like Limited functionality, Data silos, Lack of integration Limited scalability Obsolete technology Poor user experience Lack of governance and standards Addressing these challenges often requires investing in modern, integrated, and scalable solutions that can effectively capture, manage, and analyze supplier data throughout the entire lifecycle. Thus migrating away from legacy systems towards cloud-based platforms specifically designed to address the complexities of SLCM, is the way forward. #procurement #clouderp #SRM #sustainablesourcing #slc #scm #scmforum #circularity