Recently, there have been multiple reports of large-scale system overhaul projects failing in Japan. Notable examples include companies like Glico and Unicharm, both of which, despite operating in different business domains, have faced significant challenges with their SAP S/4HANA implementation projects.
While the news articles provide detailed reasons for these failures, I’d like to share my personal insights into what might be contributing to these issues. Having transitioned from a background in web-based services (such as e-commerce and online advertising) to my current role as a manager in the IT department of a manufacturing company, I’ve observed several critical factors at play.
Observations from the Field
Cultural and Technical Differences
One of the most striking differences I’ve noticed is the prevalence of IT department members who lack a strong technical background. This is particularly evident in traditional industries like manufacturing, where many IT staff primarily manage vendor relationships rather than possess in-depth technical expertise.
In my previous roles, it was common for IT professionals to have a solid understanding of the technologies and frameworks they were working with. This foundational knowledge enabled them to drive projects effectively and innovate within their domains. However, in my current environment, many colleagues rely heavily on external vendors for technical work, which limits their ability to contribute meaningfully to large-scale IT projects.
Dependency on Vendors
The reliance on vendors is a significant issue. Without a foundational understanding of IT, these professionals can do little more than manage vendor contracts and oversee project timelines. This lack of technical insight means that they cannot effectively lead or even participate in complex projects like an SAP S/4HANA implementation.
Consequently, these projects often fall into the hands of specialized consultants. While consultants are hired for their expertise and are expected to deliver high-quality results, the low skill level of the internal IT staff can hinder the project’s progress. Internal staff may provide inadequate support or fail to grasp the consultants’ recommendations, leading to miscommunication and project delays.
The Role of Consultants
Consultants, despite being professionals paid to deliver results, can only do so much when the internal team lacks the capability to support their efforts. In many cases, the internal IT staff’s inability to contribute effectively can lead to suboptimal outcomes, even when the consultants perform their duties diligently.
Moving Forward
To prevent similar failures in the future, it may be necessary to replace or significantly upskill IT personnel who are overly reliant on external vendors. Just as critical as the system overhaul itself is ensuring that the internal team has the necessary skills and knowledge to manage and maintain the new system. This shift will require a commitment to ongoing education and professional development within the IT department.
Conclusion
The failures of large-scale system overhauls in Japan highlight a fundamental issue within many IT departments: the lack of technical expertise and over-reliance on vendors. To successfully implement and manage complex systems like SAP S/4HANA, companies must invest in their internal teams, ensuring they possess the skills and knowledge necessary to lead these projects. Only then can they hope to achieve the seamless integration and operational efficiency such systems promise.
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