The company is not naming names but the failed software implementation at NCC Group (see NCC rips out its new software system, takes a £6.9m hit) relates to a SAP project that has been a long-term thorn in NCC’s side. Originally scheduled to go live in 2010, the timetable was reset to November 2011 (over a year later), with completion scheduled for 2012. That has all been thrown out of the window now and NCC is reinstating its previous solution (at a cost of c£900K), which we believe is a Sage SalesLogix system.
Even though Sage has apparently won NCC back (for the moment anyway) by accident rather than design, it is an endorsement of sorts – the system did its job and did not disrupt the business. Meanwhile SAP, who has been assiduously courting mid market businesses and divisions of large enterprises with the message that its solutions are not as costly and complicated as they are thought to be, will be more than a little embarrassed.
One incident is not indicative of the wider market but this may give businesses, who are considering software from tier 1 providers in place of dedicated mid market solutions, pause for thought. The next question is, where will NCC seek to lay the blame – at SAP’s door or with the so far unnamed SI who was engaged to specify, install and implement the system?