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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Steve Warkentin who wrote (365)	1/31/1998 5:53:00 PM
From: John Mansfield	Respond to of 3424

'It's too late to fix the entire company with SAP' How will y2k impact the SAP stock? Any thoughts? IMO, it will take a hit end of 1998, beginning of 1999 till end of 2000. John ------ www2.computerworld.com '(News, 01/26/98) Too late for Y2K silver bullet Julia King and Thomas Hoffman Reality is bearing down hard on companies that had planned to replace rather than fix software applications before 2000. They are already out of time. As a result, Plan B is in effect at companies such as $14 billion AlliedSignal, Inc. The Morristown, N.J.-based manufacturer this year will re-direct the lion's share of its information systems budget to fixing legacy systems while it slows down spending on an ongoing $50 million-plus SAP AG R/3 project, Computerworld has learned. ''It's too late to fix the entire company with SAP,'' said Robert Scott, vice president of AlliedSignal's SAP Center of Excellence, in Morristown. There simply isn't enough time between now and the end of 1999 to implement the software, much less analyze and possibly revise thousands of processes across the company's automotive, aerospace and materials businesses. Instead, AlliedSignal will spend millions fixing systems it knows it will scrap once the bulk of its R/3 project is completed sometime after 2002. ''The number of systems we'll fix for year 2000 and then throw away is probably 6% or 7% of the whole portfolio,'' Scott said. ''There were somewhat draconian budget cuts in the IS outlook. The cuts that have been made are related to slowing down ERP [enterprise resource planning],'' another Allied-Signal IS executive said. ''It's a relief to me not to have to push forward on ERP until after year 2000 is behind us.'' AlliedSignal isnt alone. Some companies that embarked on package replacement strategies as early as 1995''aren't going to make it,'' said Stephanie Moore, an analyst at Giga Information Group, in Westport, Conn. '