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SAP Planning: Best Practices in Implementation by George W. Anderson

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TCO and the SAP Solution Stack

According to recent findings by the Harvard Business School (“ERP: Payoffs and Pitfalls,” Harvard Business School Working Knowledge, October 2002), companies poured $47 billion into enterprise systems in 2001 (not just SAP—all enterprise applications). This did not even include the expense associated with acquiring hardware, training, and implementation services. Therefore, with more than petty cash at stake, an exercise in TCO should represent a “minimum requirement” prior to purchasing the key components of an SAP solution. To this end, a number of general factors contribute heavily to lowering solution stack TCO. These include

  • Procurement or acquisition costs, or the cost of initially purchasing SAP Solution ...

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