Sobeys' McEwan Explains Reason |
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Nipawin - January 28, 2001 - by: Mario deSantis | |
dropping |
Bill McEwan, Sobeys' president and CEO, has stated that the company is dropping its SAP(1) |
software after two years of problems that culminated this December with a massive five-day | |
crash(2). As a consequence, Sobeys(3), which is the second largest grocery's chain in Canada, | |
will take an after-tax charge of $49.9 million. The market reacted immediately to the news and | |
Sobeys' stock fell 16.53 per cent to $19.70 on Thursday, January 25, 2001. | |
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systemic problems |
Referring to SAP software, McEwan has confirmed that |
"we have come to the conclusion that what appeared to be growing pains with the implementation of enterprise-wide system are in fact systemic problems of a more serious nature... The bottom line is that SAP was not going to create a sustainable system solution for this organization." |
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complete |
So it took two years for McEwan to realize that SAP software was a complete disaster for its |
organization. He had no choice but write off all the assets related to SAP information | |
technology initiative so that further losses would be minimized. But in Saskatchewan things | |
are different; our leaders cannot recognize an asset from a hole in the ground(4) and therefore | |
they keep writing off our poor children(5) and our Native people(6). | |
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lie |
We have the Big Brains looking after the shareholders of this province; and instead to be |
truthful to our shareholders, the Big Brains continue to to them. And you know why? | |
Because of our leadership's philosophy "Common problem, no problem." | |
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Delta project |
Therefore, we continue to dig holes in the ground(7) in the name of globalization and |
advances in information technology. Saskatchewan Power has stated some years ago that | |
SAP software used for its Delta project would cost $55.6 million and would produce | |
$131.7 million in benefits. | |
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Land Titles |
Some years ago, the Land Titles office was experiencing a ballooning cost for its SAP |
software, from $20 million to $47.5 million, with the benefit of displacing some 140 | |
employees. | |
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SAHO |
Some years ago, Brian Rourke, fixed chair of the Saskatchewan Association of Health |
Organizations (SAHO), after lying to its membership, purchased SAP payroll software | |
at a cost of $4 million with the benefit of saving $38 million over a ten year period along | |
with an immediate increase of processing fees for its membership. | |
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Nurses |
In the meantime, we have come to know that SAP payroll was having problems in processing |
pay cheques for the International Brotherhood of Electrical Workers and for the Saskatchewan | |
Nurses. | |
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wasting |
I have a small question which is worth millions of dollars for our stepping down Premier |
Romanow(8) and Brian Rourke: How much shareholders money are you wasting into SAP | |
and how far down are you going to dig into the ground? | |
------------References/endnotes: | |
List of relevant political and economics articles http://ensign.ftlcomm.com | |
SAP is dedicated to helping companies, their employees, customers, and partners collaborate and succeed in this new "new economy" http://www.sap.com/ | |
Software crash hits Sobeys hard, CBC Canada, January 25, 2001 | |
Welcome to Sobeys Inc. | |
Our leaders can't recognize an asset from a hole in the ground, by Mario deSantis, December 2, 1999 | |
Honourable Eric Cline has not balanced the budget yet, he forgot our school-children, by Mario deSantis, April 2, 2000 | |
A Dramatic Scenario Of Saskatchewan Changing Demography: The Aboriginal People Are Our Forgotten People, by Mario deSantis, January 20, 2001 | |
Health Reform in Saskatchewan: Digging Holes in the Ground, by Mario deSantis and reviewed by James deSantis, October 20, 1999 | |
Premier Roy Romanow's Legacy: Nine Years of Lying! By Mario deSantis, January 24, 2001 |