Case Study: The High Cost of Low Cost Quality
Frustrated that you aren’t able to find the right SAP QM consultant for your project needs? Tired of being presented with resumes from “Certified QM Consultants” with no actual QM project experience and disappointed your QM consultants aren’t performing as you had hoped? Our market research shows that it can currently take 6 months or longer for an end client to find a qualified SAP QM resource compatible with both their project needs and their individual corporate culture. The Chiroptera Group specializes in providing senior level SAP QM consultants to Fortune 500 companies.
Top consultants are expensive for good reason. They have proven their ability to deliver in high stress environments, and the market has rewarded them. They have attenuated their “knee jerk” reflex. Cool and calm under pressure, they have learned over countless years what low experience consultants have yet to learn. Inexperience hampers the ability to satisfactorily deliver against the customer’s requirements… wasting project time, wasting money, and extending timelines. Experience diminishes risk and in the end, the cost of doing a project.
We recommend that you always hire the most experienced person you can find. You might pay a little more money for their expertise but it is money well spent or perhaps invested. You get better quality, you get better workmanship, you get better results, and you get a better experience. Experience delivers. Budget for it and move on.
THE LONG-TERM EFFECTS OF LOW COST CONSULTANTS
A simple Google search of SAP “project failures” leads one to Articles, Publications, Books, and Blogs warning against the high cost of inexperienced low cost SAP Providers.
The FoxMeyer Drugs’ bankruptcy: Was it a failure of ERP?
J Scott – AMCIS 1999 Proceedings, 1999 – aisel.aisnet.org
… as a “training ground” for “consultants who were very inexperienced” (Computergram International …
In conclusion, FoxMeyer’s experiences provide valuable lessons on how to avoid ERP failure. …
Cafasso, R. “Success strains SAP support”, Computerworld, 28(36), September 5
Designing effective incentive-oriented outsourcing contracts for ERP systems
KM Bryson, WE Sullivan – System Sciences, 2002. HICSS. …, 2002 – ieeexplore.ieee.org
… HICCS – ERP Page 4 of 10 Table 1: Example of General ERP Risk Items and Risk
Prevention/Resolution Strategies Risk Item Risk Prevention/Resolution Action Software Failure
(eg SAP Apparel Sector module) … 2. Do Nothing Inexperienced consultants assigned to project …
[PDF] The Mediating Role of Absorptive Capacity in Knowledge Transfer: ERP
F Adisa, J Rose – researchgate.net
… Inexperienced consultants may have little knowledge of practice variations and idiosyncrasies
in the target organization, whereas inexperienced users have … is ensured by a set of shared factors:
all three organizations were SMEs, they had implemented SAP BusinessOne within …
[PDF] The Mediating Role of Absorptive Capacity in Knowledge Transfer: ERP
F Adisa, J Rose – researchgate.net
… Inexperienced consultants may have little knowledge of practice variations and idiosyncrasies
in the target organization, whereas inexperienced users have … is ensured by a set of shared factors:
all three organizations were SMEs, they had implemented SAP BusinessOne within …
ERP Critical Success Factors: an exploration of the contextual factors in public sector institutions
D Allen, T Kern, M Havenhand – System Sciences, 2002. HICSS …, 2002 – ieeexplore.ieee.org
… ERP systems come as standardized software packages from firms like SAP, Baan, Oracle,
Peoplesoft, and JD Edwards, allowing customers … were head-hunted from University A, consultancy
costs spiralled to over twice the budgeted figure as inexperienced consultants on their …
[BOOK] Fads and fashions in management: the case of ERP
MP Caldas, T Wood Jr – 2000 – SciELO Brasil
… First came all sorts of implementation difficulties: inexperienced consultants, unprepared users,
chronic delays, and significant budget overruns. … in management consulting and supplementary
software, and up to US$ 10 billion in hardware and accessories (SAP…, 1998). …
M Seth, R Kiran, DP Goyal – Managing in Recovering Markets, 2015 – Springer
… OB 8. Unrealistic expectation. 3.67. 0.8. OB 9. Inexperienced consultants. 3.64. 0.7. … Secondly,
the study does not include the views, opinions, and perceptions of software experts that are
involved in the development of SCMIS from organizations like IBM, Oracle, and SAP. …
The Changing Business Environment
UG Seebacher – Template-driven Consulting, 2003 – Springer
… In the US, data transmis- 5 Glick, Bryan: “SAP Consigns ERP to History”, VNU Business
Publications, 2001, http://www.vnunet.com/NewsI1121188 … The big brands have sent in
many inexperienced consultants who have come up short in the end. …
[PDF] The role of consultants in the implementation of enterprise resource planning systems
E Metrejean, MH Stocks – Academy of Information and Management …, 2011 – mkwright.org
… effectively reengineer business processes, a lack of management support for the project,
ineffective pre-implementation activities, and inexperienced consultants or IT … so few responses
were received via rented email lists, the public domains of websites for the SAP, Oracle, and …
Review paper: critical success factors for ERP implementation
M Amini, N Sadat Safavi – International Journal of Information …, 2013 – papers.ssrn.com
… While there are a handful of software vendors that populate the top sellers in the ERP system
sales (eg SAP, Peoplesoft, and JD Edwards), there are a plethora of vendors available. … important
to distinguish between experienced and inexperienced consultants. Some Page 7. …
A stakeholder analysis of barriers to enterprise system adoption: the case of a transition economy
P Soja – Information Technology and Management, 2015 – Springer
… [ 23 ] whose respondents, 48 IS professionals—members of the SAP Australian User Group,
reported on barriers to benefits realization during the second wave of ES adoption. … Provider
support—inadequate ongoing support; incompetent and inexperienced consultants. ✔. ✔. …
A Bayir, B Shetty – 2011 – diva-portal.org
… SAP has Accelerated SAP methodology which aims at speeding up the implementation of SAP
solutions (Esteves & Pastor, 2001 … of corporate operational processes 2.22 Inadequate IT members
2.23 Lack of cross-functional team members 2.24 Inexperienced consultants …
[HTML] Reductionism and complex thinking in ERP systems implementations
T Wood Jr, MP Caldas – Revista de Administração Contemporânea, 2001 – SciELO Brasil
… But, for those who may venture onto the road, at first several implementation difficulties may arise:
inexperienced consultants, unprepared users, chronic … Options end up being limited to the leading
software vendors – such as SAP, PeopleSoft, JD Edwards and BAAN – on the …
C Blazer – Research Services, Miami-Dade County Public …, 2012 – ERIC
… SAP and Waste Management reached a confidential settlement agreement in March
2010 (Binstock, 2010; Kanaracus, 2010; Wood, 2010b; Bhagwani, 2009; Wailgum,
2009). Page 5. 5 6. ParknPool. … 1. Inexperienced consultants. …
[PDF] How consultants can help organizations survive the ERP frenzy
MP Caldas, T Wood – Academy of Management, Chicago, 1999 – Citeseer
… First came all sorts of implementation difficulties: inexperienced consultants, unprepared
users, chronic delays, and significant budget overruns. … SAP, the market leader, is the fastest
growing software company in the world (Davenport, 1998). …
[PDF] The Variation in the Use of ERP Software in Thailand
P Hawat, S Chookhiatti – Issues in Information Systems, 2005 – iacis.org
… Major problems encountered by most informants are inexperienced consultants, bugs in the
systems, and high initial costs of the systems and upgrade costs. In addition, an informant raised
the problem of errors resulting from transferring data between SAP modules and the …
[DOC] ERP gone bad: Lessons from real-world failures
A Binstock – InfoWorld, 2010 – facstaff.uww.edu
… In 2009, for example, Léo Apotheker, the then-CEO of SAP (and now CEO of Hewlett-Packard),
decried in remarkably blunt terms … The practice of integrators sending out inexperienced consultants
is so pervasive that almost every lawsuit in ERP projects claims this as a cause of …
Contact the Chiroptera Group today to see how our services can help your business.