ERP+Successes+&+Failures

= = = = = = =__SUCCESS STORIES__ = Smooth Planning, flexibility, and quick progress in the project are signs that the organization is on the right track. The organization’s business process needs to give in to change. If this happens, the chances of ERP implementation being successful are very high. If the company remains with the existing process or only slightly modifies its business process, then ERP may not be as successful as projected. The quicker the organization adapts to change, the larger effect on the organization’s return. If an organization is able to link processes to business strategies, analyze the effectiveness and understand the automated solutions, then ERP implementation and deployment will be successful //(Wikipedia)//

Some additional factors that contribute to the successful implementation include specific project management principles, top management support, business process reengineering, and feasibility and evaluation of the ERP project throughout the Firm //(Critical Issues, Ehie & Madsen)// Top Management is important because the project is based on strategic direction, which comes from Top Management; and they would also need to provide continuous support and monitoring. Top management support or executive commitment has been shown to positively influence ERP usage and success //(Examining, Ifinedo).// External expertise and adequate levels of internal computer skills and knowledge are essential factors that can contribute to the success of ERP systems as well. = = =__FAILURES__ = One common reason why companies walk away from ERP projects is that the software does not support one or more of the business processes. In short, not choosing the right ERP packages is a reason for failure. That is why it is important to identify your business needs thoroughly early in the planning process in order to ensure that the software is able to perform specified functions to facilitate the business process. Timing is also important. ERP investments can be unsuccessful and costly since the features of ERP are based on unknown future state.

Hershey, the leading chocolate manufacturer choose to implement their ERP system, SAP, during peak periods when business was at its best. This decision created setback and they suffered a hug loss in profits and sales as a result. Hershey made the mistake of restructuring the business process and changing it along with implementing ERP all at the same time. This disrupts the normal functioning of business preventing Hershey from concentrating on ERP because they were dealing with issues pertaining to income. Hershey’s failure could have been avoided if they would have implemented. //(Analyzing Failure, erpwire.com)//

Unisource World Wide Inc abandoned a nationwide implementation of their ERP system (SAP) and wrote off 168 million. Dell recently abandoned their ERP project implantation of SAP stating that the system is too big to be altered for changing business needs (erpwire.com). Signal International is a multinational corporation based inAustraliawith offices inDetroitandZurichas well. ERP software is specialized in providing services for companies that follows common practices in all their offices; Signal International had acquired companies that had their own style of working. So in this case they system was implemented correctly, but the employees did not use it correctly.

A lot of ERP problems also may arise from poor infrastructure/facilities and lack of proper usage. These issues will not facilitate the maximization of benefits resulting from the integration. Fox Meyer Drug filed bankruptcy in 1996, citing SAP for their financial problems resulting from a failed ERP project. Although this was in the very beginning when ERP was just making its presence known, it is still an example of how even the biggest organizations can fail at implementation and integration if the right steps aren’t taken(//ERP Benefits, systomia. com)//