SRX sierra rutile holdings limited

Implementing SAP

  1. 8,918 Posts.
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    From a recent job posting for a finance manager, SRX are about to implement SAP.

    Generally used as an integrated finance / manufacturing ERP (Enterprise resource planning).

    Why mentions this? Good question

    SAP is a very expensive system to implement and carries significant risk, and benefits if done correctly . Generally it is only tier one companies that can stand the cost to implement and maintain. Implementation costs often run into the millions, and I'd be surprised if anyone can get this in for finance and manufacturing for much less than $1m. Large manufacturers will budget upwards of $10m.

    So it would suggest management is pretty confident of some reasonable expansion in the near future. They have the build capability with the new plant coming on-line, they have a huge increase in field operatives to market the product, they are about to implement very serious software systems. All they need are the trial results to back their marketing for 1st line treatment.

    At the same time we must hope that the implementation goes very well, as the stories of failed SAP implementations are legend within the IT industry. Some cases have gone to law with 10's of millions in settlement.

    I do hope SRX hire the right people to oversea this and not rely on their internal resources who are probably very stretched as it is - often the reason why these gigs go belly up.

    IMO, overall a very positive sign, but some risk of getting it right.
    Last edited by cafa: 29/11/14
 
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