Asda's delayed SAP migration forces extension to Walmart's backend support contract

Supermarket chain Asda has extended its deal with Walmart, the US retail giant that once owned the UK business, to support backend ERP systems after a project to replace them hit delays. The supermarket, which Walmart sold to Bellis Finco for £6.8 billion ($8.65 billion) in 2021, signed a deal with SAP to move the on-prem …

[I ain't Spartacus]

koan

Working with systems integrators and cloud hyperscalers, the German vendor said it would be accountable to customers under a "one-hand-to-shake"

What is the sound of one hand shaking?

It is the endless screaming into the void of a customer with no working systems and one contact to talk to at SAP who is always off sick, on holiday or possibly fictional.

SAP have a RISE program.

I would feel safer to employ the BOfH with his PLUMMET program instead. At least you know where you are with him.

[ColinPa]

Re: koan - one-hand-to-shake

One hand to shake - this implies all of your communications will be through one person. Really? - does this person get time off for vacations and illness?

[Anonymous Coward]

Re: koan

"What is the sound of one hand shaking?"

Fap, fap, fap, fap......

[Zippy´s Sausage Factory]

Re: koan

One hand to shake? One tiger to tame? Or one legal department to fight? Hmm.

[abend0c4]

Sounds like the Asda Rollback programme has spread to the IT department.

[Graham Dawson]

Seems Asda jumped out of the frying pan and into the mire, to mangle a phrase.

[Anonymous Coward]

greenfield ERP

A greenfield ERP solution sounds wonderful. Throw away the old crap and start anew with a beautiful system. To truly do a greenfield ERP, though, you'd really have to shut the doors for a few years while you design, build, and roll out the new system.

If you're working somewhere and they want to change ERP systems, brace yourself, and maybe brush off a plan B for your employment.

[munnoch]

Re: greenfield ERP

You'd also have to have a *really* good understanding of how your industry and your own business within than industry works.

My experience with my business sponsors is that they have zero idea of how their business works and even less about how it *could* work. They just wave their hands vaguely and expect magic to happen. "This didn't do what I imagined it ought to". Well, did you ever ask for that? Or did you make it part of the acceptance testing suite when you on-boarded the system? And yet they are the ones who take home the big bucks.

[JamesTGrant]

Portent-ial

Replace legacy on-prem system with cloud-based one

Coordinating US company with no incentive with UK company via Indian subcontractor with SAP in Germany in the mix

It’s SAP

Someone said ‘perfect and greenfield’ where there’s already thousands of suppliers and hundreds of stores already using an existing system

Best of luck to all involved. Looking forward to the follow up later this year, and next year, and maybe the year after that.

[I ain't Spartacus]

Re: Portent-ial

Just kill me now.

[Anonymous Coward]

Re: Portent-ial

"Coordinating US company with no incentive with UK company via Indian subcontractor with SAP in Germany in the mix"

According to the original 2021 press releases, it is all intended to run on Microsoft Azure, so there's a fifth spade in the bucket of poo.

[Anonymous Coward]

Re: Portent-ial

On top of that, ASDA tech have decided to use Azure integration (eminently possible with SAP) instead of SAP BTP. This means that they will not be able to keep the core of SAP clean as they WILL make customisations. BTP allows this, but Azure integration will not - they'll modify S4 with disastrous consequences for the future.

The noise from inside is that they are miles away on nearly all of this future platform. Recent hires will muddy the waters further. Interesting times ahead for ASDA and it's owners.

[Missing Semicolon]

It's SAP

That's how you get to £189m to just swap out one version for another.

Because SAP have decided that you have to.

Asda will go down, not because the Issa brothers run out of money, but because they will become incapable of running the stores with a broken ERP system.

[ColinPa]

The separation programme is one-off and non-recurring in nature. ...padding...

"The separation programme is one-off and non-recurring in nature, and will transition the Group to a standalone, leading edge IT infrastructure using software as a service from best-in-class digital partners. Having no legacy systems will provide significant competitive advantage, deliver operating efficiencies, enable better use of data, and agility in taking on growth opportunities and in responding to customers' needs."

Has any one ever said

- will use tried and tested IT infrastructure

- use second best in class partners (if they are using best in class - then there is only one ...)

- does not provide significant competitive advantage

- will not provide operating efficiencies

- will not provide better use of data

- will not be taking on growth opportunities

- will not respond to customer needs

before delivering all of the above?

[Filippo]

SAP rollout delayed

How many times have we seen that headline?

[skwdenyer]

Re: SAP rollout delayed

As a good friend and senior PM said to me years ago: “the first 80% of the work takes the first 80% of the time & the first 80% of the money; the second 80% of the work takes the second 80% of the time & the second 80% of the money…”

[Brewster's Angle Grinder]

Re: SAP rollout delayed

I think you've missed the third "80%"s in there, and possibly the fourth....

[Anonymous Coward]

Re: SAP rollout delayed

I think it’s ERP rollout delayed - doesn’t have to be SAP!

[computing]

>> Having no legacy systems will provide significant competitive advantage,

A (well running) legacy system provides a more significant competitive advantage.

Walmart sold Asda and wants them out. It's a rip and replace expense.