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Tue, Dec 9, 2008 12:28 EST

Surprise, Surprise: SAP Promotes Enterprise Software Investment

Topic: Applications

Blog: Enterprise Software Unplugged

Current Rating: 3 Comments: 2

In mid-October, I blogged about an e-mail top SAP executives sent internally that instructed all SAP employees to adhere to the following mandate: "Do not order any new IT equipment at this time." Software was included in the mix. The edict was listed among several other cost-cutting measures.

I pointed out the presumptive irony of the e-mail, since SAP's marketing arm would surely start flooding the marketplace with, "This is when great companies invest in SAP software to beat the competition!" advertisements. I wondered: Was this a message ("Do not order any new IT equipment at this time") that SAP execs would want their customers to adhere to as well? I felt, at the time, that the impending hypocrisy was noteworthy.

Not everyone agreed with me. I was taken to task by several CIO.com readers (anonymous cowards!) for my "sarcastic remarks." "Author is clueless" wrote one commenter. Another accused me of having no objectivity, stating that the blog was written out of "just plain jealousy" or (even worse) because I was simply ignorant of the importance of cost-cutting measures in the horrific economic environment. I was also encouraged to find "a job with Oracle and the like."

On cue, SAP has flexed its marketing muscle, and the message has been wholly unsurprising. Here's one: SAP Helps Customers Weather the Economic Cycle.

SAP even trotted out Co-CEO Leo Apotheker in late November to appear on a panel discussion. Guess what the topic was? "Why Investing in IT Makes Sense in Troubled Times." I kid you not.

But I particularly liked the 6-minute SAP TV video: "IT Industry and the Economic Crisis." Here's the setup: "Until now the IT industry was a safe haven in difficult economic times. But the current financial crisis seems to be hitting the sector hard. Is this the end of the golden age? Experts say 'no!'" (I love the exclamation point.)

In the video, SAP asks three experts their opinion on what companies should do with IT during an economic downturn. "It seems to be to the nature of mankind to overreact in times like this," says Claudia Funke, a director at McKinsey & Company in Germany. (Sound familiar? Would an order to not buy any new IT equipment qualify as an over-reaction?) There are more pieces of advice for companies in the video that, when taken with SAP's new mantra, seem almost comical.

Listen, I'm not saying SAP should stop marketing and advertising. Far from it. I'm just pointing out the hypocrisy. And, for sure, SAP isn't the only tech vendor trying to push the innate value of their wares in this dismal economic environment. I get several pitches every day: Economy, Tightening Budgets Drive Interest In Storage-As-a-Service. How Companies Are Coping with the Economy Using IT Solutions. The ROI of Adopting Business Intelligence Technology in a Down Economy. Optimizing Current Business Software For Cost Savings.

In the SAP video, the ominous-sounding person doing the voice-overs leaves the viewer with this thought: "All experts agree on one thing: Times of turbulence in the economy are often the best times to make investments and gain marketshare."

There's a shocker. I just wonder why SAP isn't taking a dose of its own marketing medicine.

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Average (2 votes)
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Wed, Dec 10, 2008 14:28 EST
SAP
Anonymous user
Posted by: Anonymous
Rating:

Hi Thomas

I was one of those that answered your previous email and no regrets there.

The company who I work in the middle of a downturn have just commited about 10/15mil Eur to reimplement SAP ( after it was heavily customised to suit marketing ), but why would you say .

About 30-50mil Eur in process improvements across the company .During the good times of the last 10 years it was ok to go crazy ,it was ok to act like children in a candy store ,spend spend spend marketing nonsense -in difficult times we need discipline , standardidation and process improvement reduce TTM , real customer service not adlib promotions, guess where the CEO wants to invest.

G'day mate

 
Mon, Dec 22, 2008 15:37 EST
Posted by: MPatel
Rating:

Hey Thomas,

How about an article on "right way" of marketing ERP in this economy?

For example, how is Oracle marketing their ERP solution currently? What are they telling their customers in their sales pitch? Are they implementing any internal cost controls? etc. etc.

It may help in making a case to your critics for your amazingly and unbelievably unbiased coverage of SAP on CIO.com!

- Manish

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