December 21, 2008

An Introduction to SAP NetWeaver

[This article is sponsored by Peningo Systems, Inc., a provider of SAP Consulting Services on a nationwide basis. For more information on Peningo Systems, please go to the Peningo SAP Consultants page or to the Peningo SAP Netweaver Consultants page.]

NetWeaver is SAP’s integrated technology platform and is the technical foundation for all SAP applications since the SAP Business Suite. SAP NetWeaver is marketed as a service-oriented application and integration platform. SAP NetWeaver provides the development and runtime environment for SAP applications and can be used for custom development and integration with other applications and systems. SAP NetWeaver is built using open standards and industry de facto standards and can be extended with, and interoperate with, technologies such as Microsoft .NET, Sun Java EE, and IBM WebSphere.

SAP NetWeaver's release is considered as a strategic move by SAP for driving enterprises to run their business on a single, integrated platform that includes both applications and technology. Industry analysts refer to this type of integrated platform offering as an "applistructure" (applications + infrastructure). It is widely held that this approach is driven by industry's need to lower IT costs through an enterprise architecture that is at once (1) more flexible; (2) better integrated with applications; (3) built on open standards to ensure future interoperability and broad integration; and, (4) provided by a vendor that is financially viable for the long term.

SAP is fostering relationships with system integrators and independent software vendors, many of the latter becoming "Powered by SAP NetWeaver".

SAP NetWeaver is part of SAP's plan to transition to a more open, service-oriented architecture and to deliver the technical foundation of its applications on a single, integrated platform and common release cycle.

NetWeaver is essentially the integrated stack of SAP technology products. The SAP Web Application Server (sometimes referred to as WebAS) is the runtime environment for the SAP applications -- all of the mySAP Business Suite solutions (SRM, CRM SCM, PLM, ERP) run on SAP WebAS.

The core products that make up SAP NetWeaver include:

·         SAP NetWeaver Application Server - SAP NetWeaver Application server is a component of the NetWeaver solution which works as a web application server to SAP solutions. From the SAP point of view the Web AS is the foundation on which most of their product range runs.

·         SAP NetWeaver Process Integration (PI) - SAP NetWeaver Process Integration (SAP NetWeaver PI), based on SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI), is SAP's platform for process integration using the exchange of XML messages. SAP Exchange Infrastructure (SAP XI) is SAP's enterprise application integration (EAI) software, a component of the NetWeaver product group used to facilitate the exchange of information among a company's internal software and systems and those of external parties. Like other NetWeaver components, SAP XI is compatible with software products of other companies.

·         SAP NetWeaver Enterprise Portal (EP) - SAP Enterprise Portal (EP, aka. SAP Netweaver Portal) offers users role-specific, Web-based and secure access to all relevant information, applications and services. Employees only need a desktop and a Web Browser, and can begin work once they have been authenticated in the portal. SAP Enterprise Portal contains the NetWeaver components Portal, Knowledge Management, and Collaboration.

  • SAP NetWeaver Master Data Management (MDM) - SAP Master Data Management (SAP MDM) is a component of SAP's NetWeaver product group and is used as a platform to consolidate, cleanse and synchronize a single version of the truth for master data within a heterogeneous application landscape. It has the ability to distribute internally and externally to SAP and non-SAP applications. SAP MDM is a key enabler of SAP Enterprise Service-Oriented Architecture. Standard system architecture would consist of a single central MDM server connected to client systems through SAP Exchange Infrastructure using XML documents, although connectivity without SAP XI can also be achieved.
  • SAP NetWeaver Mobile - SAP NetWeaver Mobile is SAP's, a component of the NetWeaver product group used mobilizing business processes. Like other NetWeaver components, SAP NetWeaver Mobile is compatible with software products of other companies.
  • SAP NetWeaver Business Intelligence - SAP Business Information Warehouse BY SAP AG (SAP BW) is the name of the Business Intelligence, analytical, reporting and Data Warehousing (DW) solution which is one of the major enterprise software applications produced by SAP AG. It was originally named SAP BIW, (Business Information Warehouse), but is now known as "SAP NetWeaver BI".  SAP BW consists among other things of components for data management (Data Warehousing Workbench), extensive data modeling capabilities, an embedded analytical engine, a suite of rich front-end analytical tools referred to as Business Explorer (BEx), and operational tools used for importing the most current transactional data into the system.
  • SAP NetWeaver Composition Environment (CE) - SAP NetWeaver Composition Environment (CE) is a product of SAP AG that is intended to develop "composites", which means applications that are built through the use of already existing SOA services. The product includes SAP NetWeaver Application Server and SAP NetWeaver Developer Studio with additional tools for the development of service based applications.

SAP has also teamed with hardware vendors like HP, IBM, Fujitsu-Siemens, and Sun to deliver appliances (i.e., hardware + software) to simplify and enhance the deployment of NetWeaver components. Examples of these appliances include:

  • BI Accelerator
  • Enterprise Search

Development tools for SAP Netweaver includes:

  • ABAP Workbench (SE80) - ABAP (Advanced Business Application Programming, originally Allgemeiner Berichts-Aufbereitungs-Prozessor = general report creation processor) is a high level programming language created by the German software company SAP. It is currently positioned, alongside the more recently introduced Java, as the language for programming SAP's Web Application Server, part of its NetWeaver platform for building business applications. Its syntax is somewhat similar to COBOL.
  • SAP NetWeaver Developer Studio (NWDS) based on Eclipse for most of the Java part of the technology (Web Dynpro for Java, JEE, Java Dictionary, Portal Applications etc.) - The SAP NetWeaver Developer Studio is an integrated development environment (IDE) for most of the Java part of SAP technology, mainly building business web applications, but also creating SAP Enterprise Portal projects and SAP Interactive Forms by Adobe. The official abbreviation Developer Studio is used seldom whereas NWDS is common, but unofficial. The Developer Studio is based on Eclipse, contains several plug-ins and provides a range of toolsets for SAP technology
  • SAP Netweaver Development Infrastructure (NWDI) - The SAP NetWeaver Development Infrastructure (short: NWDI) combines the characteristics and advantages of local development environments – as usually provided in a Java environment – with a server-based development landscape that centrally provides a consistent development environment to development teams and supports the software development through the entire lifecycle of a product. The Developer Infrastructure mimics the functionality of ABAP Change and Transport System (CTS). The aim is to control deployment of components in the system landscape in a standardized manner. NWDI can be used to import Business Packages from SAP and enables development teams to modify standard applications. SAP NWDI is also known as SAP JDI (Java Development Infrastructure).
  • Visual Composer - Visual Composer is SAP’s graphical software modeling tool. This web-based application enables business process experts and developers to quickly create business application components, without coding.Visual Composer produces applications in a declarative form, thereby enabling completely code-free execution mode for multiple runtime environments. It provides full application lifecycle support by maintaining the connection between an application and its model throughout its lifecycle. Visual Composer is designed with an open architecture, which enables developers to extend its design-time environment and modeling language, as well as to integrate external data services.
  • Web Dynpro (WD) is a proprietary web application user interface technology developed by SAP AG and exists in a Java (Web Dynpro for Java, WDJ or WD4J) and an ABAP (Web Dynpro ABAP, WDA) flavor. Both have in general the same functionality, but usually one flavor is improved after the other, so temporary one flavor is more advanced than the other. Hence, the decision for one of the two flavors shall be based on organizational and business circumstances, but not on functionality.

IT Practicies with SAP NetWeaver

With the SAP NetWeaver platform, your organization can implement crucial IT practices in a flexible, step-by-step approach at low cost. You can address your immediate IT needs first and, since the platform components are tightly integrated, you can expand your practice projects over time within a sustainable cost structure.

SAP NetWeaver enables the following IT practices. For each practice, SAP NetWeaver supports a variety of key IT activities – all of which are easy to perform using the platform's integrated components.

  • User productivity enablement – Help users and groups improve their productivity through enhanced collaboration, optimized knowledge management, and personalized access to critical applications and data.
  • Data unification – Consolidate, rationalize, synchronize, and manage all master data for improved business processes.
  • Business information management – Increase the visibility, reach, and usefulness of structured and unstructured enterprise data.
  • Business event management – Ensure that business events from multiple systems are distributed to the appropriate decision makers in the context of the relevant business processes.
  • End-to-end process integration – Make disparate applications and systems work together consistently to perform business processes.
  • Custom development – Rapidly create new enterprise-scale applications that drive your company's differential advantage.
  • Unified life-cycle management – Automate application management processes and optimize all facets of an application's life cycle.
  • Application governance and security management – Maintain an appropriate level of security and quality in your intellectual property and information assets.
  • Consolidation – Deploy a consolidated technology platform with the ability to allocate computing power according to changing business needs.
  • Service-oriented architecture design and deployment – Consolidate and standardize your basic processes and leverage existing investments to compose new, distinctive business processes.
SAP has put together a report, “IT Practices Overview”, which helps organizations explore how you can tap into SAP NetWeaver to solve business problems.

Click here to view the IT Practices Overview  Report

In  case study, learn how Nordzucker AG improved communication and productivity with SAP NetWeaver Portal.  Nordzucker AG is the second-largest sugar producer in the European Union (EU). With sugar production of approximately 1.9 million tons and 3,300 employees, Nordzucker generated revenues of approximately €1.2 billion in the 2004–2005 fiscal year). 

Click here to view the SAP Case Study.

If you are an "End Client" looking for IT Consulting Service providers to support your Applications, Peningo Systems provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page or go to the Peningo SAP Consultants page.

December 02, 2008

Logistics to Supply Chain Management with SAP Logistics

[This article is sponsored by Peningo Systems, Inc., a provider of SAP Consulting Services on a nationwide basis. For more information on Peningo Systems, please go to the Peningo SAP Consultants page.


SAP Logistics is an enterprise software application that helps automate supply chain operations related to logistics. Logistics refers to the process of getting a product or service to its desired location upon request. There are many tasks that are involved in this process including transportation, purchasing, warehousing, and others. If all these tasks work efficiently, the product or service gets to its desired destination on time and at the lowest possible cost.


In Collaboration with SAP and Capgemini,  a white paper, “From Logistics to Supply Chain Management with SAP”, has been released which discusses finding from surveys that have been conducted in a 2006 survey at 76 Dutch companies that use SAP as the main business application

. The study focused on the maturity of and satisfaction on the main supply chain processes within these companies. The usage of SAP functionality to support these business processes was also part of the survey. The study gives insight in the stages of supply chain maturity and best practices in leading companies.


We at Peningo Systems strongly recommend this “White Paper” for any SAP Consultant / SAP Architect or IT Executive who are involved in the planning on implementing SAP Logistics.

The Contents of this White Paper Consists of:

1 Management summary


2 Introduction to the survey


3 Processes, maturity and technology


4 Sales Forecasting / Demand Planning

4.1 Survey results

4.2 Present IT-solutions

4.3 Improvement areas

4.4 Conclusions


5 Supply planning

5.1 Survey results

5.2 Present IT-solutions

5.3 Improvement areas

5.4 Conclusions


6 Production Planning & Scheduling

6.1 Survey results

6.2 Present IT-solutions

6.3 Improvement areas

6.4 Conclusions and recommendations


7 Production control / Shop floor control

7.1 Results of the survey

7.2 Present IT-solutions

7.3 Improvement areas & Conclusions


8 Logistics execution / Warehouse management

8.1 Results of the survey

8.2 Present IT-solutions

8.3 Improvement areas

8.4 Conclusions


9 Supply Chain Performance management

9.1 Results of the survey

9.2 Present IT-support

9.3 Conclusions and recommendations


If you wish to view this white paper, please click the link below:


Click here to download “From Logistics to Supply Chain Management with SAP


If you are an “End Client” looking for a Consulting Service provider to support your Applications,  Peningo Systems provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page.



November 02, 2008

How to implement SAP CRM Without Compromise

This article is sponsored by Peningo Systems, Inc., a provider of SAP Consulting Services on a nationwide basis. For more information on Peningo Systems, please go to the Peningo SAP Consultants page.

SAP has release a white paper “CRM Without Compromise – A Strategy for Profitable Growth” that describes the concept of  elucidating how organizations can maximize their results by taking a more structured, holistic approach to CRM across the enterprise to gain a competitive advantage and promote sustainable, profitable growth.  We at Peningo Systems strongly recommend this “White Paper” for any SAP Consultant / SAP Architect or IT Executive who are involved in the planning of an SAP CRM implementation.


Investments in customer relationship management (CRM) applications have produced a broad spectrum of results. Some companies report amazing outcomes, such as dramatic increases in revenue and boosts in customer satisfaction along with significant savings in operating costs. For others, such investments have delivered only limited benefits or proved disappointing.


While implementing CRM, many organizations have lost sight of their customers. They focus on efficiency gains in specific areas like sales force automation (SFA) instead of looking at the bigger picture – from a customer perspective. They fail to become truly customer centric because they rely on point solutions with little or no integration – solutions that are not aligned with the organization’s long-term strategy and provide only a limited view of the customer. They focus on single channels and rarely achieve true multichannel coverage, resulting in bad customer experiences. They either compromise on functionality or try to achieve too much at one time and end up with a complex, expensive implementation with hardly any return on investment. Organizations often just automate existing bad processes instead of redesigning their customer-facing operations based on best practices. No wonder customer satisfaction is near an all-time low in many industries. It’s time to refocus on what CRM really is about – the customer – to achieve the results CRM has promised to deliver. In order to be successful, organizations must approach CRM without compromise.


Focusing primarily on bottom-line costs and departmental goals limits the top-line potential of CRM investments. The benefits of CRM can be much greater if more companies take CRM to the next level by designing their CRM strategy for future ambitions instead of just implementing software to support current capabilities.


This white paper describes the concept of “CRM without compromise,” elucidating how organizations can maximize their results by taking a more structured, holistic approach to CRM across the enterprise to gain a competitive advantage and promote sustainable, profitable growth.


This white paper by SAP will help enlighten the SAP Professionals who are implementing SAP CRM in a Best Practice approach to address a CRM implementation.

The following is the Table of Contents:


  • The CRM Paradox
  • A Customer-Centric Business Strategy
    • Customers Define Your Business
    • A Strategic Perspective on CRM
  • Strategic Business Challenges
    • Driving New Growth
    • Operational Excellence Redefined
    • Competitive Agility
  • The Path to CRM Success
    • Evolution of CRM
    • Customer-Centric Ecosystem
  • A Strategic Framework for CRM
    • A Framework to Outsmart and Outgrow Your Competition
    • Capitalizing on Customer Insight
    • Balancing Frontline Efficiency and Effectiveness
    • Aligning Marketing, Sales, and Service with the Customer in Mind
    • Managing Customer Experience Across Touch Points
    • Guiding Customers to the Right Channel
    • Beyond the Touch Point: Connecting Front Office and Back Office
    • Creating a Customer-Driven Value Network
    • Technology Framework for Adaptability and Integration
    • Managing Performance Improvement
    • Creating a CRM Culture – Because Employees Matter
    • CRM Deployment Options: Making the Right Choice
  • A Catalyst for Business Transformation


If you wish to view this white paper, please click the link below:

Click here to download “CRM Without Compromise - A Strategy for Profitable Growth

If you are an “End Client” looking for a Consulting Service provider to support your Applications, Peningo Systems provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page.

October 30, 2008

Available SAP Product Costing Consultant

The following Consultant from Peningo Systems has become available with an expertise in SAP Product Costing.  Should you have an interest in this candidate, please contact Peningo Systems by going to the following link:

Request information on a Peningo Consultant




Candidate PEN51



Independent SAP CO Senior Consultant with excellent communication and managerial skills, extensive cross-functional implementation experience since 1992. Experience in the CO module, coupled with several years of manufacturing background. Former Product costing instructor at a big five’s academy, Project experience includes; Business processes assessment, system modeling and configuration, business scenarios identification such as Product cost planning, cost object costing,  material ledger for transfer prices and actual costing. Manufacturing environment: Engineer to order, make to order, process industry, discrete manufacturing, etc, for integration testing, cutover practice, support post go live. Integration knowledge includes: PP: Bill of materials, Routings, Recipes, Work centers, Quantity structure determination, etc. SD: Sales orders for make to order environment with valuated stock, MM: Material master, Material types, Inventory valuation, and Movement types. FI: Automatic posting for product costing such as process/account modifier configuration. Schedule manager. SPL. PS: Networks, WBS, PM: Configuration of costing pieces, PA: Posting of standard cost and variances to PA and reporting, PA configuration. PCA: Posting to PCA and reports, PCA configuration. BW: Basic query creation. Attended April, 2004 BW and Portal conferences in Orlando, October 2004 SEM conferences and March2005 SAP Financials.




11/2007 – 07/2008 - As independent consultant. 

SAP CO PC (Independent consultant) 5.0


  • To lead SAP COPC Product Costing implementation for high tech company using SAP for 10 years without using costing.
  • Implementation involved  review of COPC requirements, design and configuration, variance reports, report strategy, interfaces and knowledge transfer  on scrap calculation and failure cost processing.


08/2007 -11/2007 -   As independent consultant. 

SAP CO PC (Independent consultant) 4.7


  • To support a live system as part of the core competence center in a validated environment.
  • To support functionality enhancement initiatives in the costing arena.


4/2007 – 07/2007  – As independent consultant. 

SAP CO PC (Independent consultant) ECC6.0


  • To complete configuration setting, support integration testing, support cut over plan, for first roll out of worldwide implementation. Make to stock, make to order and engineer to order environment.


01/2007 – 03/2007 – As independent consultant. 

SAP CO PC (Independent consultant) ECC5.0


  • To troubleshoot a productive system on WIP and variances calculation on collective orders environment.


10/2006 – 12/2006 –As independent consultant. 

SAP CO PC (Independent consultant) 4.6C


  • To troubleshoot a productive system on WIP calculation.
  • Support for new year plan upload, cost estimates.


02/2006 – 10/2006 –As independent consultant. 

SAP CO PC (Independent consultant) ECC5.0


  • To take over configuration of Product costing functionality.
  • Completion of technical specification for development objects and coordination of data gathering for their testing.


03/2005 – 02/2006   

SAP CO PC (Independent consultant) 4.6C


  • Lead consultant COPC ,  implementation for an apparel industry solution.
  • To configure delivery cost functionality using condition types to calculate purchased materials cost.
  • To create costing formulas pertaining to cutting and sewing activities.
  • To implement base planning object functionality for new product.
  • To create summarization hierarchies for month end analysis.
  • To present schedule manager functionality for month end close process.


12/2004 – 02/2005  

SAP CO PC (Independent consultant) 4.6C


  • To provide support on product costing related issues to existing clients of outsourcing service center.
  • Support on standard setting, custom reports, CO PC, PA, PCA redesign, etc.


10/2004 – 11/2004

SAP CO PC (Independent consultant)


·         To configure CO PC for a 4.7 implementation, to consolidate two SAP legacy systems, one in 4.6c and one in 4.7.

·         Configuration completed in two weeks.


7/2004 – 10/2004 –

SAP CO PC (Independent consultant)


·         Call in to address variance analysis concerns for the manufacturing process managed through production orders in a live system.

·         To continue variance analysis initiatives for an aircraft manufacturing company using R3  4.5.

·         To assess needs and conduct training reinforcement sessions on SAP cost and variances, including scrap’s impact.

·         To review configuration pieces within variance computation.


5/20024 – 10/2004 – 

SAP CO PC (Independent consultant)


·         Call in to address specific issue on scrap reporting for a live system.

·         Troubleshoot on Scrap reporting for a live SAP 4.6c system in a discrete manufacturing environment for the aerospace division.

·         Task included:

·         Creation of customized application to report scraps on a daily basis.  (Failure cost processing).

·         SAP notes applications, knowledge transfer on scrap reporting, Improvement on period end closing performance, material ledger analysis.  Support on actual costing functionality. Make to order configuration for valuated stock without cost object. Base Planning Object. Training in Schedule manager.


2/2002 – 2/2004 -

Application engineer (Independent consultant)


·         SAP CO PC4.6c Application engineer for Puerto Rico affiliate of pharmaceutical company roll out.

·         Responsibilities included; make sure Puerto Rico affiliate fit global design for a multi country implementation. Testing business scenarios during informal and formal integration testing. Scenarios were: Product cost planning, process order costing, costing reports, etc.  In addition CO PC support for mainly for North America and occasionally Europe and South America implementation.

·         Support on cost center accounting, Special ledger purpose, PPPI environment. Integration points with MM, PP and FI.

·         Phases from affiliate assessment through go live and post production. Extensive SAP OSS interaction. Tools used include: Documentum, Test director, etc.


Task included:


·         Activity types mapping to cost centers – Cost center mapping to work centers.

·         Cost center planning, activity price calculation.

·         Product cost planning, costing run including mixed costing. Base planning objects.

·         Cost object controlling – Process order costing, Period end closing.

·         Conduct team members and power users knowledge transfer as well as end user training.

·         Show BW reporting capabilities to PC users. BW overview, query creation after being exposed to training in BW and exposed to BW corporate implementation team.

·         Lead integration testing and issues resolution.  Support cut over activities and go live and post go live activities.


11/2000 - 6/2001

SAP CO PC Consultant


Task includes:


·         To support Product Costing PPPI for a four plant’s roll out on Nov, 2000 in 4.OB. Product cost planning, process orders cost.

·         Configuration review and update to include a six plant roll out April 2001.

·         To provide SAP team with troubleshooting knowledge.

·         To conduct business scenarios testing.

·         To help on PA and CCA assessments cycles definition.


6/2000 - 11/2000  

SAP CO PC Consultant


Task includes:


·         To Configure Product Costing for the North American Power Division roll out in 4OB

·         To help in the CO module upgrade to 4.OB

·         To teach end user on the costing process.

·         To upgrade PCA and CCA report writer reports to 4.0B


1/1995 - 12/1999  

Senior consultant


Senior Product Costing Consultant for more than 13 implementations. Activities ranging from design, gap analysis, configuration, testing, training, new plant rollouts, upgrades, troubleshooting, team lead, consultant training, etc. Clients in manufacturing, chemical, high tech, pharmaceutical and consulting includes: Witco Chemical in Germany, Searle in Chicago and Puerto Rico, Century furniture in North Caroline, Whirlpool in Michigan, Kohler in Wisconsin, Menasha Corporation in Wisconsin, Fujitsu and Ban tec in Dallas, CSR in West palm beach an Augusta,  Ablestik in Long Beach, St. Lawrence Cement in New York, Condea Vista in Houston. R3 versions up to 4.0B


6/1986 - 12/1994 

Jul 1992- Dec 1994

Implemented R2 release 5.0 as a RK-D, RK-S, RM-PPS team member. Involved in a 2 1/2 year implementation project for 3 plants. Modules included were MM, RH, RK-S, and RM-PPS. ·Responsible for product costing application including production orders for actual cost calculation, training material for Product costing and  for testing customized costing application in Germ

October 23, 2008

How an organization should Plan for an SAP ERP 6.0 Upgrade

This article is sponsored by Peningo Systems, Inc., a provider of SAP Consulting Services on a nationwide basis. For more information on Peningo Systems, please go to the Peningo SAP Consultants page.

SAP LogoSAP has released a White Paper titled “How to Plan for an SAP® ERP 6.0 Upgrade”. The White Paper provides decision makers the information they need to evaluate, plan, and perform an upgrade to the SAP® ERP 6.0 application. It also introduces the tools and services SAP offers its customers during the transition to this new enterprise software.

Through extensive experience with customer upgrades, SAP has learned how important it is to safeguard production systems for your mission-critical activities – which is why SAP ERP 6.0 strongly supports system requirements for stability and availability while at the same time offering the high degree of adaptability and flexibility you need for business process innovation.

We at Peningo Systems strongly recommend this “White Paper” for any SAP Consultant / SAP Architect or IT Executive who are involved in the planning of an SAP ERP Upgrade.

The Contents of this White Paper Consists of:

  1. Why Customers Are Choosing SAP ERP 6.0
  2. Upgrade Scenarios
  3. Technical Upgrade.
  4. Functional Upgrade.
  5. Strategic Business Improvement Upgrade.
  6. Best Practices During an Upgrade Project
  7. Planning an Upgrade.
  8. Handling Modification .
  9. Simplifying the Testing Process.
  10. Additional Tools, Preparations .
  11. Building the SAP ERP 6.0 Landscape.
  12. What SAP Customers Are Saying About the Upgrade.

If you wish to view this white paper, please click the link below:

Click here to download “How to Plan for an SAP ERP 6.0 Upgrade”

If you are an “End Client” looking for a SAP Consulting Service provider to support your Applications, Peningo Systems provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas page.


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October 22, 2008

The Peningo SAP Consultants Blog

Welcome to the Peningo SAP Consultants Blog.  This Blog is intended to support the issues that affect the SAP Consulting market, as well as, follow SAP product related news and issues.

Peningo Systems has identified that the SAP technical services industry is moving in a direction that we at Peningo do not want to follow.  Our reasons for rejecting such a direction are:

Suppliers of SAP IT services have been organized into Networks of organizations or Cartels, with the purpose to control and enforce a reduction in the rates of individual consultants.  On the one side the Networks hopes to control demand and through the Networks force the rate reduction that will allow them a larger Margin.

The "End Client" recipient of the SAP Consulting Services continues to pay an ever increasing rate for such services, while the quality of the Consultants being delivered to them, declines; as the more “experienced SAP Consultants” refuse to participate in such equalitarian scheme.

Over the years, we at Peningo Systems have seen that the rates for the SAP Consultants have been reduced or become stagnant. As the Networks of these “Prestigious” SAP Consulting Service providers have increased needs to provide SAP Services, they seek "offshore" resources or lower paid H1-B / L-1 based resources to maintain their margins.  The more “Experienced Consultants” are not part of the equation, since their rate requirements would not fit into the “Prestigious” SAP Consulting Service provider’s lofty profit margin.  These "offshore and H1-B / L-1 resources" generally are not in tune with the needs of the American Business Community.

We invite your efforts to participate as a Commenter on this Blog in order to bring to the attention of the "End Client" the benefits of contracting direct, which will result in increase rate for the Consultant and lower billing rate to the "End Client”.

Peningo Systems supports and provides Consultants with expertise in many areas including:

To see Peningo Systems areas of expertise, please go to the Peningo Technical Areas.


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