WALLDORF — SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2024. SAP meets or exceeds all financial outlook parameters for FY2024 Current cloud backlog of €18.1 billion, up 32% and up 29% at constant currencies Total cloud backlog of €63.3 billion, up 43% and up 40% at constant currencies Cloud revenue up 25% and up 26% at constant currencies in FY2024 Cloud ERP Suite revenue up 33% and up 34% at constant currencies in FY2024 Total revenue up 10% and up 10% at constant currencies in FY2024 IFRS operating profit down 20%, non-IFRS operating profit up 25% and up 26% at constant currencies in FY2024 2025 outlook anticipates accelerating cloud revenue growth Block Quote Block Quote

Harness the power within, drive profitability, and make sustainability a priority The challenges are real. Staffing shortages. Lagging productivity. Asset reliability woes. While we can’t fix all the business challenges you face, we like to think that IFS offers more than software; it’s a partnership for success. As with every release, we are on a mission to simplify the process of using AI. We want you to realize the value of Industrial AI as soon as it’s implemented so that you can just start using it. We’ve developed specific AI-powered use cases tailored to your industry and business needs to achieve this. These use cases are embedded into IFS Cloud, making them easy to access, use, and deliver real value by enabling you to leverage your existing data (projects, assets, services, machine data, maintenance manuals, etc.). We want to empower you with solutions for your industry, and with the latest release of IFS Cloud, that is no exception.  Delivering two releases a year, both releases in 2024 were driven around three key business themes: Power Potential With the release of IFS Cloud 24R2, you can amplify productivity and experiences to overcome staffing issues with AI-powered automation, streamlining workflows, and improving user experiences. You can also extend asset longevity by anticipating and preventing equipment failures and maximizing asset uptime and lifespan. Drive Profitability Fine-tuning your operations is key to achieving profitability, and IFS Cloud 24R2 helps you optimize for success by lowering costs and increasing margins through reducing waste, optimizing resource allocation, and identifying cost-saving opportunities with AI-driven insights. Additionally, it helps build and retain value by streamlining global operations for greater efficiency, unlocking new business models, and empowering your team to deliver exceptional customer service. Make Sustainability a Competitive Advantage Sustainability isn’t just a buzzword, it’s a strategic imperative. IFS Cloud 24R2 equips you to meet compliance demands by staying ahead of complex regulations like CSRD with comprehensive reporting tools and guidance on sustainable practices. It also helps you optimize resource utilization by minimizing waste across your operations and contributing to a circular economy so that you can take action for a better future. Read more about what we’ve explicitly delivered in this latest release below. 24R2 What’s New? Asset Management FMECA, or Failure Mode and Effect Criticality Analysis, is a powerful method for identifying potential failure modes and their potential effects on asset performance. In 24R2, we build into IFS Cloud the ability to identify failure modes, the criticality of an asset in the context of its use, and the different ways you can see the repair optimally perform, helping you proactively identify and mitigate risks. By leveraging document management and AI, we bring in a lot of your asset information and its failure modes and then automatically surface relevant information to a copilot to generate prompts that guide users through the FMECA analysis. This AI-powered approach rapidly consolidates information to speed up the analysis process and improve accuracy, ultimately improving asset reliability and performance. Aviation Maintenance In 24R2, we’ve optimized mobile capabilities to reduce manual data entry for frontline aviation mechanics. By leveraging barcode scanning and automated data retrieval, mechanics can allocate more time to “on-metal” tasks and less to data entry. Furthermore, we’ve strengthened the integration between pilot electronic logbooks and the activity of maintenance personnel streamlining processes in the day of operations. Lastly, we’ve enhanced parts tracking for components that come in without serial numbers and other information by generating internal tracking numbers and managing their flow through the maintenance process, ensuring efficient and effective turnaround. ERP IFS Cloud 24R2 introduces significant advancements in ERP, including an innovative AI-based forecasting method within our time series forecasting model for demand planning. This enhancement improves forecast accuracy, enabling businesses to reduce stock levels while maintaining service levels. Building on the success of our Manufacturing Scheduling Optimization (MSO) solution, 24R2 introduces powerful simulation capabilities so planners can compare capacity ad load scenarios. This AI-driven production planning and scheduling engine considers critical factors such as component shortages, lead times, and demand variability. Now, in 24R2, by analyzing various “what-if” scenarios, manufacturers can increase effectiveness in production planning, optimize resource allocation, maximize capacity utilization for more realistic production schedules, and ultimately better meet customer demand. In the world of HCM, establishing objectives can be time-consuming and difficult leading to low employee engagement. This latest IFS Cloud release introduces SMART Objective Generation. AI supports the creation of meaningful objectives within the context of a job and company values. Service Management IFS Cloud 24R2 introduces significant advancements in service management. AI-powered features like the IFS Home for Dispatchers provide intelligent insights to help dispatchers make informed decisions, such as prioritizing tasks and allocating resources effectively. For example, if a technician hasn’t logged on in the morning. What do we need to do? Presenting information to dispatchers in an intelligent manner in real time is important to help them manage exceptions. The release also enhances appointment booking capabilities, facilitating efficient scheduling and resource allocation. Additionally, for contractor management, the introduction of bucket resources simplifies capacity management at a broader level. Sustainability Organizations face a multitude of sustainability challenges, including regulatory compliance, carbon emissions reduction, and complex reporting requirements. With a little help from our friends, IFS Cloud 24R2 saw the launch of the Sustainability Management solution in IFS Cloud to help organizations navigate the sustainability disclosure landscape. This centralized solution enables efficient management of sustainability data collection, analysis, performance tracking, and disclosure. The solution enables organizations to meet the rigorous requirements of complex directives like the CSRD and other emerging standards. By leveraging the data sourced from IFS Cloud, organizations can make informed decisions that drive sustainability action, enhance transparency, mitigate risks, and optimize resource utilization. The IFS Emission Tracker app continues to advance in 24R2, helping customers calculate their carbon footprint to meet global requirements.​ In this release, we have further expanded Scope 3 or indirect emissions support. There is more good news in the area of sustainability with new functionality in our procurement solution.  Procurement managers can now accurately identify carbon emission figures associated with procured goods and services through primary and secondary sources, enabling a better understanding of the impact of procurement activities at the source. Additionally, we’ve integrated with Climatiq, a third-party carbon intelligence solution provider, and leveraged AI to provide estimated carbon emissions for purchases. This information can be used in Eco footprint management in manufacturing and the new Sustainability module as inputs to key performance indicators (KPIs). Industrial AI is IFS.ai As you have read, there is a lot packed into this release and IFS Cloud 24R2 represents another step towards ensuring Industrial AI solutions are embedded into every aspect of your business. To learn more about the exciting features of IFS Cloud 24R2, please visit our What’s New web page, which provides access to our Release Showcase demonstrations.

In this new world of AI agents, strategic technology partnerships are more important than ever to unlock trapped data and power agentic AI experiences. By collaborating with key technology providers like AWS, Salesforce is extending the boundaries of possibility. One year into their expanded strategic partnership, Salesforce and AWS have made making significant strides in integrating data and AI capabilities across their respective platforms, with joint customers like Buyers Edge Platform already seeing the benefits. This collaborative effort is facilitating the development of a new class of agentic systems, positioned to deliver enhanced experiences for both businesses and consumers. At the same time, the two industry leaders have been aligning data and AI related initiatives to build an ecosystem for supporting AI agent delivery. In the last year, for example, the companies created zero copy functionality in Data Cloud with Amazon Redshift and integrated Salesforce’s Model Builder’s BYO LLM (bring your own LLM) capabilities with Amazon Bedrock.  “By integrating data and AI capabilities across our platforms, Salesforce and AWS are building a strong foundation for the future of agentic systems,” said Brian Landsman, EVP of Global Business Development and Technology Partnerships at Salesforce. “With a majority of large companies planning to implement agents by 2027, it’s critical for organizations to be able to turn to trusted, innovative partners to help them build a successful agentic enterprise.”  Block Quote Unleashing AI accessibility for all   Salesforce is ensuring that its innovations are easily available to customers by offering AI  technology through the AWS Marketplace, including Agentforce, the agentic layer of the Salesforce Platform for deploying autonomous AI agents across any business. All Salesforce clouds are available on AWS Marketplace in 23 countries, simplifying the procurement process and helping customers easily unlock value and maximize their existing technology investments. This offering allows companies to manage their IT spending, access flexible pricing options, and take advantage of a streamlined billing process, all through a single platform. This seamless experience empowers businesses to focus on using technology rather than navigating complex procurement processes. As Salesforce and AWS continue to build on these offerings, they’re setting the stage for a new era of enterprise that relies heavily on data and agentic capabilities‌ — ‌allowing businesses to execute complex tasks more efficiently and effectively. “Our partnership with Salesforce empowers our mutual customers to realize the full potential of their data and AI investments. Together, we’re delivering immediate, reliable, and actionable insights with agentic AI, enabling customers to automate strategically and deliver more value from every part of their business,” said Chris Grusz, Managing Director of Technology Partnerships, AWS. “It’s a promise to fundamentally change the way enterprises operate and thrive.” Powering tomorrow’s agentic enterprises Companies like Buyers Edge Platform are benefitting from the Salesforce-AWS expanded partnership with more streamlined data management, increased productivity, and new AI capabilities. The integration work is helping businesses scale at unprecedented rates and is providing the structured and unstructured data agentic systems they need to perform and deliver for enterprises.  For example, Salesforce Data Cloud, enhanced by AWS’s cloud capabilities, allows for zero-copy, bidirectional integrations. Tied to the Zero Copy Partner Network, this technology provides a comprehensive, real-time view of a company’s data without cumbersome processes like data duplication or reformatting. This has proven transformative for Buyer’s Edge, a leading software and analytics company providing data-driven insights and technology to the foodservice industry.  Over the past five years, Buyers Edge has acquired 23 companies, creating a fragmented data landscape that had become increasingly complex to manage. But with zero copy technology, Buyers Edge has been able to streamline data from more than 30 disparate sources‌ — ‌including Amazon Redshift‌ — ‌into one unified system that helped them simplify data management and gain full visibility into all of the organization’s data. “The Salesforce-AWS partnership is enabling rapid growth for us. By unifying allowable data from across our 20+ software offerings and leveraging zero copy technology, we’re able to leverage unified data to drive more powerful insights for our customers,” said Josh Tackett, CTO at Buyers Edge. “Without this type of technology, we were fighting an uphill battle trying to map disparate systems together, but now we have a seamless tool to combine our data which allows us to focus on building more impactful products.” Block Quote The impact of the Salesforce-AWS partnership extends beyond individual enterprises — it’s also reshaping entire industries. By equipping organizations with data-driven, AI-powered solutions, the two companies are helping sectors like automotive unlock new levels of operational intelligence and efficiency. For example, Salesforce Connected Vehicle has data integrations with AWS IoT FleetWise, which enables automakers to easily integrate vehicle and fleet data that streamlines connected car experiences while removing complex manual integrations. These capabilities are built on a shared foundation of data that flows freely across platforms, allowing businesses to capitalize on emerging technologies without having to overhaul existing infrastructures. As more industries move toward agentic enterprises, the Salesforce-AWS partnership will help businesses deploy customized agents that can navigate multiple systems, databases, and applications with ease. These autonomous agents have the potential to revolutionize how industries operate, creating efficiencies and improving outcomes on a monumental scale. Looking ahead: a partnership built for tomorrow Customers will continue to benefit from the partnership between Salesforce and AWS, with more innovations and regional support planned for 2025. With advancements laser-focused on privacy, compliance, and building trust in the agentic era, customers can expect future updates, including enhancements to the Zero Copy Partner Network and new integrations like Private Connect and Salesforce Contact Center with Amazon Connect. As the partnership evolves, companies are positioned to harness the combined power of agentic AI and data in ways that not only drive efficiency but also open doors to new business models. For technology leaders and enterprises worldwide, the collaboration represents an opportunity to embrace the future of AI‌ — ‌a future where agents powered by trusted data can make decisions, execute tasks, and drive meaningful outcomes at scale. By enabling businesses to unify data, automate processes, and create a powerful environment for agentic innovation, Salesforce and AWS are helping organizations embrace the full potential of their digital landscapes.

General

Production-–-Planning-and-scheduling

Production – Planning and scheduling

As you know proper planning and scheduling is of key importance for production companies. Dynamics 365 supports this process by optimization through the preparation of plans and schedules in the area of ​​materials. The preparation of demand forecasts and the building of a flowchart on them is essential to ensure smooth production. Whole process depends on warehouse, logistics and shipment management. Efficient planning enables the calculation of delivery times and the creation of a realistic schedule. Production scheduling is based on the allocation of specific material resources, meeting specific guidelines, to carry out selected production orders, taking into account the specified time and in accordance with the adopted planning rules. The effect of scheduling is to define the dates of commencement and completion of production works. The goal of scheduling is, in the simplest terms, to efficiently use the available resources in specific time intervals. Main thing is to realize what is production planning and scheduling? The basics of production planning is to: determine the size of the production volume that should be performed in a specific time period. By controlling and managing production process in terms of capacity, it is possible to ensure the best possible use of the production capacity at company. We can minimize production downtimes and maintain optimal stock levels. However, it should be borne in mind that the production plan should be a process integrated with the complex strategy of activities of the entire company. Capabilities of Microsoft Dynamics 365 The functionality of Dynamics 365 enables the prediction of various demand resources and takes into account data on the said demand and its coverage. The most important thing is to remember about the need to balance both of these areas. In the Microsoft Dynamics 365 software, you can plan production and the system allows you to make whole or certain parts of operations or tasks. The basic elements of operation planning include planning direction, resource capacity, and material optimization. By using the option of planning operations in the Microsoft Dynamics 365 system, it is possible to define a planning method and optimize the use of materials. The Microsoft Dynamics 365 program enables: creating schedules for materials and semi-finished products scheduling machines, tools defining the planning direction, creating schedules forward or backward from a specific date preparation and modification of schedules delivery time definition using Availability to Promise (ATP) or Captable to Promise (CTP) method. Integration with Overall Production Management It is worth to remember that the planning of operations and tasks in Microsoft Dynamics 365 affects the master planning and the calculation of material requirements, taking into account such aspects as resources required for production, inventory, sub production and deliveries, as well as products that are already scheduled, released or started. Right now, as we know ale companies at the world have problem with planning their production because of broken supply chain processes, market demand is higher than production capabilities because of subcontractors have not got parts. In addition, the system is prepared to work with limited materials – in this case, planning is even more important in managing the entire production and guaranteeing its smoothness. It is worth to remember that the planning of operations and tasks in Microsoft Dynamics 365 affects the master planning and the calculation of material requirements, taking into account such aspects as resources required for production, inventory, subproduction and deliveries, as well as products that are already scheduled, released or started The entire production management process using the ERP system is completed – in the case of Microsoft Dynamics 365 – with other modules, such as resource management, production routes, tracking and reporting of production processes. Microsoft Dynamics 365 enables a comprehensive approach to production control, which ultimately enables smooth operation of the entire production plant without the risk of problems with.

SVS-Supplies

Sandvold & Velde Supply strengthens processes with RamBase QMS

Sandvold & Velde Supply (SVS) has built a reputation on solving their customers’ toughest challenges, but their internal systems weren’t keeping pace with their growth. As a supplier of critical components to shipping companies and industrial businesses worldwide, SVS understands the importance of quality. Their decision to adopt RamBase Quality Management System (QMS) was driven by a need to enhance their internal processes and meet growing demands from customers. General Manager Håkon Sandvold and Executive Chairman Per Sigurd Velde are actively engaged in their company’s operations. At the RamBase offices they are receiving dedicated training and expert guidance from Pia Heia, Customer Success Manager at RamBase. They also set some time aside to discuss why they chose the RamBase Quality Management System. From SVS, Per Sigurd Velde and Håkon Sandvold, and from RamBase, Pia Heia. From complexity to clarity SVS has long been a trusted supplier of specialized parts and solutions, working with thousands of suppliers worldwide to deliver essential components such as pipes, electronics, valves, and more. Their motto, “The easy way, to the hard-to-find” reflects their unique ability to go beyond their extensive product catalogue. What truly sets them apart is their expertise in helping customers locate those rare, hard-to-find parts that others cannot provide. However, their impressive growth has also brought operational challenges. As Per Sigurd Velde explained:  Block Quote Wide selection: SVS goes the extra mile to find what the customer needs. Recognizing these challenges, SVS evaluated several systems, ultimately selecting RamBase QMS for its comprehensive approach to quality management.  Velde highlighted the decisive factor: Block Quote Another key factor in their decision was RamBase QMS’s use of visual tools. Block Quote Supporting ISO standards As SVS continues to expand, meeting rigorous ISO standards has become a strategic priority. The company is working towards compliance with ISO 9001 for quality management, ISO 14001 for environmental management, and ISO 45001 for occupational health and safety. General Manager Håkon Sandvold elaborated: Block Quote This structured approach will enable SVS to not only meet customer expectations but also enhance internal processes and ensure that their quality management system scales with their growth. A perfect fit for SVS Customer Success Manager Pia Heia emphasized how well SVS and RamBase QMS align. Block Quote

Salesforce-Joins-Technology-and-Academic-Leaders-to-Unveil-AI-Energy-Score-Measuring-AI-Model-Effici

Salesforce Joins Technology and Academic Leaders to Unveil AI Energy Score Measuring AI Model Efficiency

Salesforce, in collaboration with Hugging Face, Cohere, and Carnegie Mellon University, today announced the release of the AI Energy Score, a first-of-its-kind benchmarking tool that enables AI developers and users to evaluate, identify, and compare the energy consumption of AI models. Salesforce also announced it will be the first AI model developer to disclose the energy efficiency data of its proprietary models under the new framework. Why it matters: The AI Energy Score aims to address the lack of transparency about the environmental impact of AI models. Similar to how ENERGY STAR transformed energy efficiency standards for appliances and electronics, this initiative establishes a clear, trusted benchmark for AI model sustainability.  Go deeper: The AI Energy Score will debut at the AI Action Summit, where leaders from over 100 countries, the private sector, and civil society will convene to harness AI for good. By enhancing transparency, the score can drive market preference for efficient models and incentivize sustainable AI development. Recognized by the French Government and the Paris Peace Forum for its transformative potential, the AI Energy Score features: Standardized Energy Ratings: A standardized framework for measuring and comparing AI model energy efficiency.  Public Leaderboard: A comprehensive leaderboard that features scores for 10 common AI tasks — such as text generation, image generation, and summarization — performed by 166 models, including Salesforce’s SFR-Embedding, xLAM, and SF-TextBase.  Benchmarking Portal: A platform where AI developers can submit their open or proprietary AI models to be evaluated and added to the leaderboard. Open models can be automatically tested, while closed models can be evaluated through a secured testing sandbox. Recognizable Energy Use Label: A new 1- to 5-star label that rates AI model energy use, with five stars indicating the highest efficiency. This helps developers and users easily identify and choose more sustainable models. Once rated, AI developers can generate standardized labels to share their models’ energy score, with built-in guidance on the proper label display for visibility and impact. Block Quote How Salesforce addresses sustainability through Agentforce: Last fall, the company introduced Agentforce, the agentic layer of the Salesforce Platform for deploying autonomous AI agents across any business function. Agentforce offers tools to build and customize agents, as well as a library of ready-to-use skills for sales, service, marketing, commerce, Tableau, Slack, and more. Agentforce is built with sustainability at its core, delivering high performance while minimizing environmental impact. Unlike DIY AI approaches that require energy-intensive model training for each customer, Agentforce is optimized out-of-the-box, eliminating the need for costly, or carbon-heavy training. Its agentic architecture goes beyond reliance on a single large language model (LLM), instead leveraging efficient small language models combined with agentic reasoning and other advanced AI tools, significantly reducing energy consumption. For example, Salesforce’s SFR-RAG is a small language model optimized for accurate, reliable tasks. It cites sources, extracts precise facts, and handles complex questions, delivering trustworthy answers with greater efficiency and lower energy use. Additionally, Agentforce leverages tailored data and metadata from Salesforce Data Cloud and the Salesforce Platform, enabling high accuracy and responsiveness while minimizing wasted computational resources. 

NOR-LTD-Expansion-May-2024-scaled

Norwegian Offshore Rental strengthening quality with RamBase QMS

Since its founding in 2005, Norwegian Offshore Rental (NOR) has been dedicated to supporting the offshore, subsea, and renewable industries. Initially focused on ship management and personnel supply for the shipbuilding industry, the company shifted its focus in 2011 to specialize in equipment rental. Today, NOR is a key provider of rental equipment in the North Sea region and other major oil and gas markets. In line with its mission to prioritize safety, quality, and sustainability, NOR has integrated the RamBase Quality Management System into its operations. Norwegian Offshore Rental envisions a world where the offshore, sub-sea, and renewable sectors share a common pool of cutting-edge equipment to create a more efficient, cost-effective, and sustainable future. This vision aligns perfectly with NOR’s operational focus—investing in top-tier equipment, providing excellent customer service, and building long-lasting customer relationships. By implementing RamBase Quality Management System (QMS), NOR is taking a proactive step to ensure they continue meeting their customers’ stringent safety and quality requirements. Tore Gautesen, CEO at Norwegian Offshore Rental, shares his perspective on the implementation: Block Quote Why RamBase QMS? NOR’s operations require meticulous oversight of equipment, personnel, and processes to ensure safety and compliance in a demanding industry. With a growing rental pool of specialized equipment—ranging from lifting gear and ROV tools to buoyancy aids and subsea video inspection tools—the company needed a quality management solution that would simplify documentation, standardize procedures, and ensure compliance with industry regulations. Ingunn Nordbø, HSEQ Manager at Norwegian Offshore Rental, highlights the reasoning behind their choice: Block Quote Øivind Aasland Håkonsen, Sales Manager at RamBase, also emphasizes the perfect match between the two companies Block Quote A Partnership for growth and quality We are proud to welcome Norwegian Offshore Rental as a new RamBase customer. Their dedication to safety, quality, and sustainability is well supported by what RamBase delivers: tools for streamlining processes, enhance compliance, and building a culture for continuous improvements. If your company is looking for help to meet the highest standards of safety and quality, contact us today to learn how RamBase QMS can make a difference.

'What is an ERP System? – FAQ' featured image

What is an ERP System? – FAQ

An ERP (Enterprise Resource Planning) system is software designed for comprehensive business management. It oversees and organizes critical processes across various company sectors, including sales, finance, production, human resources, and logistics (such as warehousing and goods receipt and issuance). A key feature of an ERP system is its operation on a single database, ensuring that all information entered is immediately accessible to all users. History of ERP Systems MRP Software The first systems for managing enterprise resources emerged shortly after World War II, known as MRP (Material Requirements Planning) programs. The inaugural MRP system was developed and implemented for the American company Black and Decker. By 1980, over 8,000 companies were utilizing such systems, driven by the rapid advancement of computers, which replaced paper archives with electronic forms and databases. MRP systems had limited applications compared to modern ERP programs, primarily focusing on forecasting deliveries, production planning, determining raw material needs, and managing current inventory levels. Integrated Management Systems MRP systems evolved significantly until the late 1990s, propelled by advancements in computing that enabled the handling of larger information volumes, opening new possibilities for enterprises. This evolution led to the development of ERP software, which allows for the management of every business area by integrating various processes. The widespread availability of the internet facilitated the creation of integrated, modern ERP systems classified as 4.0. We are witnessing a digital transformation resulting in increasingly advanced technological solutions. Today’s ERP management systems are multifunctional software that combines numerous modules and applications into a cohesive whole. Implementing a modern ERP system offers unlimited benefits and possibilities compared to smaller solutions that manage only selected company processes. Seamless ERP System Implementation An ERP system features a multi-module structure, highlighting its flexibility. This design allows it to adapt perfectly to business processes and the specific needs of an enterprise. Leading solution providers enable clients to purchase only the modules and functionalities that are truly applicable to their operations. For instance, production modules may not be relevant in a trading company. ERP Systems Support Stability and Security Modern ERP systems can scale according to an enterprise’s size, structure, and business activities. This means that the number of users or the volume of data does not affect the software’s performance and stability. Advanced IT systems, such as those based on cloud infrastructure, facilitate this capability. ERP Systems Should Be Functional and Mobile The flexibility of ERP systems is also evident in their accessibility across various devices, including computers, tablets, and smartphones. This adaptability allows employees to perform their duties regardless of location, provided they have internet access. Such mobility is crucial in today’s dynamic business environment. Purchasing an ERP System Brings Numerous Benefits Investing in an ERP system offers several advantages, including: Process Optimization: Streamlining and automating business processes leads to increased efficiency and reduced operational costs. Data Centralization: A unified database ensures that all departments have access to up-to-date information, enhancing decision-making processes. Improved Communication: Enhanced information flow between departments fosters better collaboration and coordination. Scalability: ERP systems can grow with the company, accommodating new processes, users, and data volumes without compromising performance. ERP Systems from Users’ Perspectives Users often highlight the following aspects of ERP systems: User-Friendliness: Intuitive interfaces facilitate quick adoption and reduce training time. Customization: The ability to tailor modules and functionalities to specific business needs enhances relevance and usability. Reliability: Robust systems minimize downtime and ensure continuous business operations. Get to Know ERP Systems – Questions and Answers Is an ERP system suitable for small businesses? Yes, ERP systems are scalable and can be customized to meet the needs of small businesses, providing tools to enhance efficiency and competitiveness. How long does it take to implement an ERP system? The implementation timeline varies depending on the company’s size, complexity, and specific requirements. It can range from a few months to over a year. What are the costs associated with an ERP system? Costs include software licensing, implementation services, training, and ongoing maintenance. These expenses vary based on the system’s scope and the provider’s pricing structure. Implementing an ERP system is a strategic decision that can significantly enhance a company’s operations, efficiency, and adaptability in a competitive market.

'The Biggest ERP Implementation Failures' featured image

The Biggest ERP Implementation Failures

ERP (Enterprise Resource Planning) system implementations play a crucial role in efficiently managing enterprise resources. However, some deployments have ended in significant failures, causing major financial and operational losses for companies. Below are some of the most notable cases of failed ERP system implementations: Leaseplan: A Monolith Unfit for the Digital Age In 2016, Leaseplan hired HCL Technologies to develop a new centralized leasing system based on SAP to manage operations across 32 countries. By March 2019, the project faced numerous challenges, leading to its abandonment and a €92 million loss. Leaseplan stated that SAP’s monolithic architecture hindered the ability to swiftly introduce improvements in a rapidly changing technological landscape. MillerCoors: Persistent Challenges In 2014, MillerCoors began consolidating seven different SAP ERP instances by hiring HCL Technologies to implement a unified system. The project encountered delays and budget overruns, ultimately resulting in a lawsuit against HCL Technologies. Revlon: Investor Discontent In 2018, Revlon implemented a new ERP system in one of its North American factories. Implementation issues disrupted production and distribution, negatively affecting the company’s ability to fulfill orders. As a result, Revlon faced lawsuits from investors who accused the company of poor project oversight. Lidl: German Supermarket Giant’s Struggles After years of using proprietary software, Lidl decided to implement SAP to standardize its processes. The project, launched in 2011, faced numerous difficulties, including challenges adapting the system to the company’s specific needs. In 2018, after spending approximately €500 million, Lidl abandoned the project and returned to its previous system. National Grid: A Perfect Storm National Grid, a U.S. energy company, invested about $1 billion in a new ERP system. The implementation faced delays and budget overruns, leading to operational disruptions. Consequently, National Grid filed a lawsuit against Wipro, the implementation partner, seeking compensation. Worth & Co.: A Rollout Ending in Litigation Worth & Co., a mechanical installation company, invested in a new ERP system to streamline its operations. Unfortunately, the implementation encountered numerous issues, including system errors and delays, resulting in financial losses. The company sued the software provider, alleging contract breaches. Vodafone: The Long Arm of Compliance Vodafone, a global telecommunications giant, invested in a new ERP system to integrate its global operations. The implementation faced issues such as data migration challenges and system integration problems, leading to delays and cost overruns. The company also faced regulatory investigations related to financial reporting issues. Woolworths Australia: Loss of Institutional Knowledge Woolworths Australia attempted to implement a new ERP system to modernize its operations. The project faced challenges related to inadequate employee training and the loss of critical institutional knowledge, leading to disruptions in business activities. PG&E: Data Breach Pacific Gas and Electric Company (PG&E) invested in a new ERP system to improve customer data management. Unfortunately, the implementation faced security challenges, resulting in a customer data breach and regulatory penalties. Hershey’s: A Bitter Lesson In 1999, Hershey’s implemented a new ERP system to automate its production and distribution processes. Implementation issues caused delivery delays, coinciding with a critical sales period. Conclusion ERP systems have the potential to revolutionize business operations, streamline processes, and enhance decision-making. However, as the cases presented illustrate, poor planning, inadequate change management, and unrealistic expectations can lead to disastrous outcomes. Companies embarking on ERP implementations must ensure robust project governance, thorough training, and effective communication between stakeholders. Key TakeawaysThorough Planning Is EssentialA well-structured roadmap, realistic timelines, and a clear understanding of business needs are critical to preventing project derailment.Stakeholder Involvement Is KeyEngaging employees and decision-makers at every stage of the project ensures smoother transitions and higher adoption rates.Flexibility and Scalability MatterChoosing an ERP system that adapts to evolving business needs can prevent obsolescence and enable long-term success.Invest in Training and SupportLack of user training and insufficient support often result in operational disruptions and employee resistance.Learn from Past MistakesBy studying notable failures, businesses can avoid repeating the same errors and improve their chances of success.ERP implementation is a challenging but rewarding journey, provided the right strategies and precautions are in place. Learning from these high-profile failures can guide companies toward more successful outcomes, transforming their ERP projects into strategic assets rather than liabilities.

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'The Biggest ERP Implementation Failures' featured image
ERP (Enterprise Resource Planning) system implementations play a crucial role in efficiently managing enterprise resources. However, some deployments have ended in significant failures, causing major financial and operational losses for companies. Below are some of the most notable cases of failed ERP system implementations: Leaseplan: A Monolith Unfit for the Digital Age In 2016, Leaseplan […]
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MarekMac

'What is an ERP System? – FAQ' featured image
An ERP (Enterprise Resource Planning) system is software designed for comprehensive business management. It oversees and organizes critical processes across various company sectors, including sales, finance, production, human resources, and logistics (such as warehousing and goods receipt and issuance). A key feature of an ERP system is its operation on a single database, ensuring that […]
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MarekMac

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Since its founding in 2005, Norwegian Offshore Rental (NOR) has been dedicated to supporting the offshore, subsea, and renewable industries. Initially focused on ship management and personnel supply for the shipbuilding industry, the company shifted its focus in 2011 to specialize in equipment rental. Today, NOR is a key provider of rental equipment in the […]
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<p>For years we&#8217;ve relied on ABAS ERP and witnessed its transformative impact. Its robust features, seamless integration, and intuitive interface have optimized our operations, enhanced productivity, and fueled sustainable growth. A true game changer!!!</p>

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5/5
<p>&#8220;After implementing our ERP system, we&#8217;ve seen significant improvements in efficiency and communication across departments. It&#8217;s made a real difference in our daily operations!</p>

- Bart

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