SAP paid to the client compensation for an ERP project failure

In March, 2008 the Waste Management company made the claim to SAP, having accused her of a failure of implementation of industry solution of SAP Waste and Recycling. According to the garbage-disposal company, Waste Management suffered substantial damages: more than 100 million dollars were spent for the "unsuccessful" project, and the company would receive 350 million more dollars if software implementation of SAP would be successful.

In response to Waste Management charges the SAP company claimed that the client could not "timely and precisely define requirements of the business" and "did not provide participation in the project of competent specialists and heads".

According to court's decision, the Waste Management company received lump money payment which amount is not disclosed from SAP. "Conditions of settlement of the conflict are confidential", - the lawyer of Waste Management said.

According to SAP company, the conflict between SAP and Waste Management is solved, case is closed. The additional information is not provided.

According to the statement of the garbage-disposal company, the company purchased the ERP system which does not require a large number of completions as SAP presented to the customer the solution as "boxed" which implementation cannot be labor-consuming, expensive and risky. According to the statement of Waste Management, SAP used "false" solutions at demonstration of the software product to convince the management of Waste Management that a system meets customer requirements.

Besides, according to complaints of the customer, the technical command of SAP recommended to Waste Management later version of the software, than the version which was really set. According to Waste Management, SAP knew that a system does not contain the basic key functions necessary for the client.

In recent months there were few signs that it will be possible to settle quickly the conflict as lawyers of both parties continued to make statements and to produce the evidence disputing proofs of other party.