Another High-Profile SAP Failure: State Of California
Yet another black eye for German software giant SAP (SAP).
Last month Jeweler Shane Co. blamed difficulties trying to get SAP software running as partly responsible for the company's bankruptcy. Now the State of California -- already in dire financial straits -- is giving up on its SAP implementation after sinking $25 million into the project and seeing nothing out of it.
CIOinsight: Schwarzenegger has long eyed the payroll as a way to stave off financial shortfalls until a budget reaches his desk for signing. Last July, the governor attempted to cut back payroll by temporarily dropping workers down to minimum wage until a budget deal was hammered out by lawmakers.
This plan was obstructed not by political wrangling or labor lobbyists -- it was held up by absolutely ancient IT infrastructure and a beleaguered project to upgrade to SAP.
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