November 15, 2007
The Fall of Baan
http://www.businessweek.com/2000/00_33/b3694015.htm
I found this fascinating article while walking down memory lane (or at least down memory google search). I worked for Baan during the boom times, and actually was there when it crashed. The end of Baan marked the end of my time as a pure-play ERP consultant. It is strange to see coverage of a key event in my career in the pages of Business Week.
In my humble opinion, Jan and Paul Baan meant well but were simply overmatched. Enterprise Software is not a business for informal management. I don’t think they were out to deceive investors like Enron did.
I was at BaanWorld In april 1998 in Denver. The first night was a typical trade show - walk the exhibits and speak with the various firms selling goods and services. It was a pretty surreal experience….it was like the last days of the roman empire…no expenses were spared. Free Beer and Wine everywhere. Prime Rib and giant shrimp on the exhibit floor. One of the big 6 (at that time) had an operating brewpub on the floor to attract job seekers. Another firm was hosting a private rock concert with the Doobie Brothers. Another firm was sponsoring a private Harlem Globetrotters exhibition game. To attract job seekers, one firm was giving away a new BMW - your resume was your raffle ticket. Other firms were giving away motorcycles and personal electronics.
I was wearing a presenters badge, and people were stopping me on the floor, asking who I was and making job offers on the spot. It was simply amazing.
The next morning, Bill Gates was the featured speaker. His background music was the entire Denver Symphony orchestra. Again, what excess! what profit margins!
That same week, Baan announced that they had to restate revenues…It was almost the end of the conference..what a different mood. Job offers were hard to come by. Within a few months, I left to join CSC’s Baan practice. Within weeks, the Baan practice was shut down, and I found myself in the general consulting pool…My time as an ERP consultant ended in a flameout….I soon found myself doing Y2K and data warehousing work.
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