Friday, October 23, 2009

UN and SAP. A clusterfuck starting to happen

Apparently the UN are putting in SAP. And they are looking to spend around $45m to put in SAP for the first time. I hope that is just the Finance module in Head office and not an intent to put it in world wide. UPDATE: Yes it is intended to be worldwide

Based on personal experience of similar programmes in the private sector I would suggest they are well under budgeted. There also does not seem to be hardware in the budget. $5.3m for change management, including programme management!!! Titter, giggle.

They refer to "subsequent build and roll-out phases." - This kind of implies it is going to take them 2 years to get through requirements analysis and design.

SAP is the ERP software of choice at most large companies nowadays. Running on Oracle databases and squeezed at the top end by Hyperion which is more flexible than BW.

I would love to know who has the Systems Integrator contract. They will be looking to make a killing with every small Change Request being priced up and billed at top rates. Change is a natural part of any programme like this and changes to scope are what costs. But you cannot know the real scope until you are doing the job.

I make a prediction now that in 2-3 years time this will become an INCIS style scandal for the UN. Among the 1 or 2 other scandals plaguing the UN. I will post this now and come back to it sometime.

Hmm turns out they have been going since 2000. And they decided on SAP at the start of 2009. That sounds about par for the course for the UN

For those interested read this blog post at CIO magazine where they guessed $300m based on UN rumour and noted such projects have a 7% chance of coming in on time


Software licences and customization ($11,475,000): as a result of the Organization’s stronger negotiation strategy with the software vendors, there would be limited payment for software licensing during the design phase of the project, and any required customizations would be initiated later in 2009.
• Software integration ($21,847,400): based on the above-stated approach to the
acquisition of software integration services, there would be a significant
reduction in the overall work-months required during the biennium 2008-2009, as those resources would be required during the subsequent build and roll-out phases.
• Project and change management ($5,387,700): the ERP project team would postpone the recruitment of its full staffing complement until July 2009 until the initiation of the design phase after the completion of high-level business re-engineering activities in the first quarter of 2009. The change management strategy continues to focus on an awareness campaign for the stakeholders of the ERP project, pending approval by the General Assembly.
• Training ($5,615,400): the commencement of training is dependent upon the acquisition of the ERP software solution, which is in the final phase of evaluation.
• Operational costs ($749,000): the above delays have a corresponding impact on the requirements related to general operating expenses.

1 comment:

Oswald Bastable said...

SAP- AKA Sucking All Profits