Software // Enterprise Applications
News
7/25/2003
04:39 PM
Connect Directly
RSS
E-Mail
50%
50%

Dial Scraps Its Enterprise Software, Switches To SAP

The deal is part of a seven-year, $110 million outsourcing agreement with EDS.

Dial Corp. has decided a single suite of enterprise software is its best bet, so it's scrapping several software packages from Oracle, Siebel Systems, and Manugistics for SAP.

The deal, revealed this week, is part of a $110 million, seven-year IT outsourcing agreement with EDS; the SAP implementation includes manufacturing, supply-chain, finance, accounting, performance management, and customer-relationship management software and is expected to cost $35 million--a price tag that includes licenses, implementation services, and maintenance. The implementation will begin next month and is expected to be completed by early 2005.

"Over the last two to three years, we've been working on stabilizing our business and focusing on core brands. Making a technology change was always part of the plan," Dial CIO Evon Jones says. Jones and his team took "cursory looks" at other enterprise software vendors but went with SAP because "SAP and the processes with SAP's software are regarded as best in class and will drive operational efficiencies, particularly when you start to get greater visibility within your supply chain."

Dial will take an $8 million write-off for the Oracle software. But the maker of Dial Soap and other consumer packaged goods expects to save up to $21 million in capital and operational expenses over the term of the EDS outsourcing agreement. It also expects the SAP implementation to augment that savings and to make Dial a more competitive company.

"If you take a look at the [consumer packaged goods] space, most of our major competitors run SAP today," Jones says. Implementing SAP "allows us to gain parity."

Comment  | 
Print  | 
More Insights
Building A Mobile Business Mindset
Building A Mobile Business Mindset
Among 688 respondents, 46% have deployed mobile apps, with an additional 24% planning to in the next year. Soon all apps will look like mobile apps – and it's past time for those with no plans to get cracking.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 20, 2014
CIOs need people who know the ins and outs of cloud software stacks and security, and, most of all, can break through cultural resistance.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.