A Major Failed ERP Implementation—FoxMeyer Drug Mohamed Mohamoud and Jing Lei Table of Contents • Case Study: FoxMeyer Drug o Background of FoxMeyer o Implementation of ERP and the Selection of SAP R/3 o Bankruptcy Nightmare o What exactly went wrong? o Lessons from Failure o Conclusion • References • Appendix Case Study: FoxMeyer Drug Background of FoxMeyer Business FoxMeyer Drug, a holding company in the health care services industry, with 2700 employees in 23 union and non-union locations throughout the US and Canada. In December 1995, FoxMeyer Drug was a $5 billion-a-year company, one of the leaders among distributors of pharmaceuticals. The business of FoxMeyer …show more content…
Consulting Company: Andersen Consulting Anderson Consulting (now Accenture) is a large and diversified IT consulting company. In the area of enterprise business software it provides solutions to clients on a global basis. Andersen had at that time over 15,000 IT consultants dedicated to help clients improve their business result by implementing IT solutions. The strength of Andersen’s global capability with respect to SAP was embodied in the wide breadth of methodologies and tools offered to their customers with their SAP implementation. Because their clients’ strategies vary widely, Andersen actively investigates and evaluates both SAP tools and third party tools. Andersen also has invented its own tools to fill specific SAP functionality gaps or to meet specific customer requirements. Furthermore, Andersen tools are always consistent with SAP approach and complementary to SAP tools. In other words, Andersen seemed to be a most trusted consultant for implementing SAP systems. Implementation of SAP R/3 In September 1993, FoxMeyer contracted with SAP, Andersen Consulting and Arthur Andersen & Co. (AA), the parent company of Anderson Consulting, to implement the R/3 software. This multi-million dollar project covered the entire supply chain--warehouses, inventory control,
The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company
ERP (Enterprise Resource Planning) software system aims in integrating the vital functions of an enterprise leading to a better communication and flow of data through the different units of an enterprise, regardless of their geographical locations. A standard ERP system constitutes of a software component, hardware infrastructure and a process documentation component. An ERP package integrates several functions like production, finance and accounts, supply chain management, asset management, logistics and many more. Different types of ERP software are available in the market catering to the needs of all types of business and corporate houses. Large global organizations require complex ERP package to support more
Kroger uses a number of ERP systems. The first major ERP system Kroger uses is the self-checkout systems. Kroger hired Fujitsu Transaction Solutions to be the sole strategic partner for these systems which are now implemented in most Kroger stores. The next ERP company is PurchasingNet-SQL who Kroger hired in 2000 to streamline its purchasing processes of new store equipment and store refurbishing projects. In few words PurchasingNet-SQL implements an eProcurement system. This system automates approvals and budgeting processes, sends e-mail updates, separates stock requisitions, tracks inventory levels in warehouses, and matches invoices to purchase orders and requisitions to ensure accurate accounting. This system is especially critical because of the numerous retail outlets that all need to be in contact with the single purchasing department. A third company that offers its services to Kroger is the Sterling Information Broker. Kroger is using Sterling to help become more cost-effective and efficient with its trading partners. Kroger with Sterling can exchange electronic documents with essential trading partners including customers, suppliers, freight carriers and financial institutions.
After careful assessment of the infrastructure and inventory systems used at Riordan Manufacturing, our team has identified these systems are outdated and unable to effectively manage the day to day processing. As a global leader in the manufacturing of plastic products, the performance and reliability of the infrastructure is crucial to the continued success and growth of your company’s operations. Therefore, our solution to uplift the infrastructure and launch of the Riordan Global Operations System (R.G.O) a new platform for supporting inventory and managing customer orders . Our system will enable your employees and customers see
SAS is a recognized company that creates business analyst software for all types of businesses. The acronym SAS stands for “statistical analysis system.” It was created at North Carolina State University as a project to analyze agricultural research. SAS’s founder decided to transform this research project into a viable company of its own, where he could provide business consulting services to large and small businesses alike. Shortly after becoming a company they were able to run software applications across all platforms of the business by using multivendor architecture for which it is known today for. SAS’s internal culture has remained the same since it first started, which has made them successful enough to spread
It is vital that the SAP partner provides the correct type that sets up level and support which is required. The provider’s business culture and size should fit ours. If a partner provides all back office support, then it has to be seen that it definitely has bandwidth to do this. The partner should also have a sap b1 support which is more attentive to smaller company and responsive
To help them implement the solution, REV Group selected ThoughtFocus since its expert team had the industry experience, proprietary business process methodologies, and accelerators that could deliver a fast, effective solution at a reasonable cost. The REV Group put a lot of trust in ThoughtFocus since this was the first greenfield implementation of SAP S/4HANA in North America.
1. Discuss the pros and cons to launching the foxy brand in the United States.
The services of a consultant are being engaged to work with the teams at the different levels across the organization to improve and develop the system with all components linked together. They envisage that this system should have standard operating procedures (SOP) – expectations, information requirements, methodology, data collection tools, data analysis procedures and techniques, data quality assurance, reporting channels, dissemination processes and a central repository. The system will have descriptions and documentation of how the various components are supposed to
In 1994, after a significant strategic planning effort took place, NIBCO Inc., decided to implement a plan to, “Go Live” with a new SAP program. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) The reasons behind NIBCO’s decision to implement and ERP System are those that are familiar to other companies who have made the same decision. One of the key conclusions from the strategic planning that led to the ERP implementation was that the organization could not prosper with its current information systems. (Brown, Dehayes, Hoffer, Martin & Perkins. 2012) They systems that they were currently using had evolved into a patchwork of legacy systems and reporting tools that could not talk to
To provide tools that help companies satisfy their customers, Customer Relationship Management Systems include different technologies. They use software such as SAP AG, Oracle, Siebel Systems, Epiphany, and People Soft. All of the mentioned software are
According to a case study by Scott, (n.d), FoxMeyer was worth over 5 billion in 1993 this was a time when the company was the fourth largest pharmaceuticals distributer. In 1993 FoxMeyer Drugs stated an ambitious project aimed at increasing efficiency through the use of technology, in the last months of 1993 a
SAP Americas is a subsidiary of SAP AG, overseeing the company's business operations in the U.S., Canada, Latin America and the Caribbean. SAP has 115 companies with research and development facilities in Germany, Turkey, Canada, China, Hungary, India, Israel, Bulgaria and North America. In addition, SAP have laboratory centers in France, Sofia, Hungary, Sao Leopoldo, Brazil, Palo Alto, California, Bangalore and Gurgaon, India, Ra' Anana and Karmiel, Israel, Vancouver, Canada and Shanghai, China. SAP targets six industry sectors including consumer industries, discrete industry, financial services, process industries, public services, and service industries. SAP focuses on vertical industries, such as media, which helps provide growth as these industries expand. A potentially large area of growth could come in the relatively new services-oriented architecture (SOA), which enables the customers to link and connect its various applications. SAP expects its SOA, called NetWeaver, to be well received by its large installed customer base. Many of the industries SAP operates in are fragmented in terms of the software brands used. SAP offers more than two dozen industry solution portfolios and more than 550 resolutions for small and mid-size companies. SAP primary marketing areas are products, consultation and training. A significant part of SAP AG's success is making it easy for customers, partners, vendors, and the
The business model of SAS is such that it in general it offers services coupled with software. Unlike typical firms in the industry it follows an annual software subscription model. Rather than sell its software, SAS leases to its customers - a strategy of immense importance in understanding the company’s relationship to its users. The fact that leases must be renewable annually creates a tremendous emphasis on customer satisfaction and quality in addition to stabilising its revenue. Furthermore, its products are made based on what customers require and its developmental process is almost wholly customer driven. There is also a strong focus on employee satisfaction leading to customer retention and loyalty which SAS
ABC Technologies is a fast growing computer hardware and network re-seller in Sri Lanka. Due to the expansion in business in recent years ABC has decided to implement Sage Accpac ERP system within the organization. ERP system consultants for the project will be XYZ Solutions.