Enterprise Resource Planning (Erp) Failure

1527 WordsJul 5, 20137 Pages
In the years following the formal introduction Enterprise Resource Planning (ERP) systems in the early 1990s, there have been few ERP implementations that have been managed successfully, including those introduced by large corporations. Although much capital is usually put into ERP implementation, lack of key business practices has prevented extensive success. This paper reviews failed ERP implementations in three large organizations. It analyzes the reasons for the failures as well as the lessons to be learned so other organizations can avoid similar scenarios. ERP Implementation Failures A Review of Three High-Profile ERP Implementation Failures In August 2004, US-based HP, a top computer hardware and information technology…show more content…
There was nothing to fall back on to prevent the financial fallout documented. 2. Poor project management. This is highly evident in all three cases, specifically as it relates to budget management, schedule management, judgment and impact on the flow of the business. Where Hershey 's is concerned, the focus was on rolling out the new solution before Y2K, despite receiving recommendations to implement over a longer period of time. The project implementation team as well as senior management exercised poor judgment, especially given the fact that the new system would manage the entire flow of orders. The excessive spend on ECSS incurred by DoD took place over seven years, which is a clear sign that there was not enough importance placed on budget management. With HP, the company clearly indicated that the major reason for failed implementation was poor execution, which reflects badly on any project management team. 3. Organizational or departmental culture. As outlined by the case study entitled Assessment of DoD Enterprise Resource Planning Business Systems (Ketrick, 2011, p. 33), there are many different culture-related issues that prevent successful ERP implementation. However, of greatest significance to the ECSS implementation is what was termed as "a risk-averse or hyper-chain-of-command mindset" that "…discourages subordinates from revealing factual, but contrary information that may be

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