With so many SAP Industry Specific Solutions, I thought it might be useful to develop a list of what I consider the key benefits of Industry Specific solutions and as I have received many queries about IS-Mill lately, decided it was as good as any.
All Industry Specific benefits mentioned here are generally applicable to any SAP Industry Specific Solution.
Image Courtesy of Creative Commons. Typical Paper Mill
The last benefit is really one of the key ones from my perspective. Many companies routinely buy companies and divest companies.
This means you need a scalable system which supports the complexities of many types of business entities, all within one corporate parent.
There are numerous side effects that are important when considering a SAP Industry Solution, the most important of which is that in many industries, for example, the Cement Industry, SAP is the de facto standard IT system, and by extension, just about all the processes within the industry will operate the same.
This makes it very easy to compare one company to another and to perform benchmarking.
For external investors, this ability to compare like-for-like when making investment decisions as well as for internal management teams to look for areas of potential improvement, is a key reason many investors say the presence or absence of SAP is an investment decision criteria.
For example, Warren Buffet looked favorably upon the BNSF railroad’s SAP implementation when making a decision to acquire it.
As it happens, cargo railroads are very profitable entities, whereas passenger railroads are somewhat less successful at generating a profit.
Other industries, such as the Oil & Gas industry, have problems they have been ‘chewing on’ literally since the 1950s. They could save themselves a lot of money by solving the problems and save the environment a lot of greenhouse gas emissions by solving the SCM related problems they have been working.
By bringing together the industry players to work on the common industry problem, they can expand the potential number of solutions out there.
This is one of the major ways the aviation industry has been able to so dramatically improve safety-by sharing knowledge.
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