Subject: Managing The Value Chain Name: ALOK KUMAR GUPTA Enrollment No. 6010091106380 ERP IMPLEMENTATION FAILURE AT HP (ITYS045) a. Analyze the limitation of IT project management. Discuss the importance of business contingency plans for enterprise projects. Justify your answer taking the example of HP b. Examine the implementation of the ERP migration failure considering HP’s role as a third party implementer of SAP’s supply chain solutions. Can HP use this ERP implementation failure to its strategic advantage? Why / why not? Give reason for your answer HP announced that their revenue has gone down by 5% to $3.4bn for the 3rd quarter ended July 2004. The reason proposed was due to the problem faced during the migration to …show more content…
The problem with them was they did not adopt many of the critical success factors required in the implementation of an ERP project. The following are causes of the migration failure Project team constitution Date integration problem Demand forecasting problems Poor planning & improper testing Inadequate implementation support / training Analysts commented that the HP’s culture did not support the much active involvement of employees also company ignored valuable suggestion from employees. Company staff had warned HP but it was not possible for it to continue with the tradition system and also suggested for a back-up system but company turned deaf ears over that many Vice-president had joined the rival Company and also many employees had a fear of been laid off. Learning from Failure: Implementation failure can impact overall business performance there is no standard approach to implement ERP, many times it involves a business change in many departments. Therefore otherwise it might miss out the objectives. The success of implementation depends upon the planning, which considers the business process along with the technical aspects. The potential benefits to the supply chain are much bigger than the IT costs and the potential risk to the supply chain is also much bigger. The success of ERP implementation also depends upon the ability to align IT along
Question 1: Describe two effects of database tools and technologies on business performance and decision making.
Q3: How is the adoption of SAP viewed by (a) production staff, (b) IT staff and (c) the management?
6. Once completing your analysis, what is the opportunity represented by addressing the problem? What is the cost of poor quality? What is the impact on customer satisfaction, retention, and loyalty? How could this help increase revenues? How could this help increase our capacity? How could this improve our ability to improve our process controls?
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
4. What would you recommend managers to do insure a smooth integration of the information systems, given the
The IT folks couldn’t communicate properly with the business about their ideas and strategy that confused the business and made them reject the ideas that were actually worth trying.
In general, ERP systems are designed to standardize information entry and create data storage for information sharing across the organization. There are numerous advantages of ERP but skeptics argued on the fact that these advantages can be also achieved by simplification and lean production methods. IT systems could be effective and reliable in the long run but at the same time there is an uncertainty about whether it will align with the concerned business process. For instance, the ERP system implemented at the Korey plant to replace MRP system failed. Though it met the requirements of individual unit and enabled employees with wide range of
1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that ‘Organization has become a textbook silo organization’ because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
5. Evaluate the steps that were taken in the ERP activities. Which were done well and which could be improved?
The project did not achieve desirable standards as far as customer requirements, scope, environment and execution were concerned. It was important that the project integrators to ensure customers do not escalate during the implementation of the project, being the first adopters of the software FoxMeyer should have exercised caution by adopting the software in phases rather than implementing the project directly, furthermore, execution was the biggest problem, despite knowing that the project needed skilled personnel FoxMeyer did not train staff during the early stages of the project and had to rely on consultants. Finally the company should have gained control over the project from the start to ensure that all the staff and management were involved but in this case despite knowing that the project would not work as envisaged the management did not take control or stop the implementation of the project.
stocked in its warehouses. The adverse affects of failed ERP implementation were immediate, with a