As far as I know, DELL had a huge success with SAP program. Remember that before '95, DELL was a low p/e stock due to its unpredictable financial results. I believe SAP implementation gave real boost to efficiency and predictability of its earnings stream. And now, DELL is treated like a classic growth stock in a highly cyclical industry. When other high tech companies noticed DELL's success with SAP, DELL decided to do others one better by implemanting its own corporate resource system - possibly on top of its SAP legacy system. I read that they are constantly tweaking this new in-house enterprise system.. DELL shares haven't suffered from this decision to improve their operation.
The reason I call this 'SAP revolution' is that there may be real and large economic advantages to companies that implement SAP enterprise software system. Savvy high tech companies like Intel, MSFT, Lucent, and DELL were the first to reap the profit. But now other non tech companies ( MCI, Colgate, Phillips, GM ) are buying into the revolution. In my view, SAP story has a long way to go.
Once again, this is just one person's view ( someone who bought in at 168!! yikes!.... :( ...) so take it with grains of salt. I welcome your opinions and comments. |
