SAP Who? Inside One of SAP's Smallest ERP Customer Success Stories

Artisan Hardwood Floors, a 37-employee company in Central Texas, doesn't look like a typical SAP buyer. But its decision to purchase SAP, and its experience so far, illustrates the promise and peril for SAP and rivals Oracle and Microsoft as they go after the small business ERP market in a big way.

CONNECTIONS
SAP
Oracle
Microsoft
Thu, September 25, 2008CIO Artisan Hardwood Floors' purchase of SAP's BusinessOne ERP software in late 2007 wasn't anything that triggered a gushing press release from SAP's PR staff. It most likely didn't hit the radar screens of SAP CEO Henning Kagermann or CEO-in-waiting Leo Apotheker over in Walldorf, Germany.

But it's a telling story, nevertheless, that starts with a "de facto" CIO and no IT staff, disparate systems, and almost no customer knowledge of SAP's ERP expertise.

If you've worked in a small business, that scenario doesn't seem so surprising.

But if you work for SAP, that scenario is a radical change from the past.

Located in Austin, Texas, Artisan Hardwood Floors is a family owned and operated company with 37 employees and virtually no in-house IT staff. Like most small businesses, it found itself in 2007 running a couple of disconnected software packages for operations and accounting, and relying heavily on manual processes, says Pat Bailey, a general manager and co-owner of the business, as well as a self-described "guy who does everything."

Pat Bailey
The New Breed of SAP Customers: Pat Bailey, GM of Artisan Hardwood Floors

"We didn't have any network [connection] between operations and accounting," Bailey recalls.

So he began looking for a new package that could unite back-office functions of Artisan's three separate business lines: a flooring installation business; a lumber yard that imports wood from South America and sells both at retail and wholesale; and a distribution arm to a network of U.S. dealers.

Even with the modicum of complexity between the separate operations, Bailey (the de facto CIO for big tech decisions) was going to need only a dozen or so seats for a new software package, which has not been an area that SAP (or Oracle, for that matter) has had much interest in selling to in the past. After all, SAP made its bones implementing large, complex and expensive software rollouts almost exclusively to the Fortune 1000 set: the Coca-Colas and Wal-Marts of the world were its signature deals.

So the chances of Artisan Hardwood Floors using SAP software were seemingly as likely as Larry Ellison inviting Hasso Plattner over for a brats and beer BBQ. But today, Artisan Hardwood Floors is running SAP BusinessOne 100 percent. "I was sold the first day they did the demo," Bailey says.

If that's any indication of future SMB success for SAP, then the small potatoes deal should have at least brought a grin to Kagermann's and Apotheker's faces. For it was perfect execution on SAP's newfound strategy to infiltrate the small business space with easy-to-use ERP applications.

SAP: Just a Name on a Golf Hat

Not every SMB deal is going to have as happy an ending for SAP. What did Bailey know of SAP when he was reluctantly introduced to it by a persistent consulting sales guy? Bailey's response illustrates just how difficult a challenge lies ahead for SAP: "Absolutely nothing. Well, I knew that golfer from South Africa [Ernie Els] wore it on his hat." He also was convinced that SAP was going to be way too expensive.

Besides sponsoring a professional golfer, SAP is spending lots of marketing and partnership dollars to make SMBs take notice of its product set. (Maybe you've seen the "SAP is for great companies, not just great big companies" advertisements.)


Loading...
Applications MarketSpace
Service Level Reporting and Communication
Service level reporting is the most visible output and often the most time-consuming activity in SLM. Learn more »
Lower IT Costs with Oracle Database 11g Release 2
Learn how upgrading to Oracle Database 11g Release 2 can transform your business, budgets, and service levels Learn more »
Managing Your SAP System
Learn how to more effectively manage your SAP system. Learn more »
 
SPONSORED LINKS
 

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

See how AT&T can help protect your network.

Top Five CIO Challenges

Streamline IT Costs. Boost Performance with WAN Optimization.

Want to know how you can maximize employee productivity?

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

A new fleet of PCs with a total ROI in 10 months. Find your ROI.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

Virtualization Technology as a Business Solution

eZine: A Roadmap to Reducing IT Complexity

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

Join us at the US-Brazil IT-BPO Summit, on November 10th in New York.

Unified Communications: Thoughts, Strategies and Predictions. Join the discussion

Read the RSA report: Security for Business Innovation

Webcast: Looking to the Cloud for Email and Collaboration Services

64-page prescriptive guide to security, compliance, and IT operations.

Keep your IT expertise up to date. Join the Intel Premier IT Professionals.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

A Clear View Toward Virtualization

Interactive Q&A helps you discover key ways to maximize IT assets.

 
 
RESOURCE CENTER