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Assignment1_Eric_Matherne

Assignment1_Eric_Matherne - were not made • Orders began...

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Eric Matherne [email protected] Assignment 1: Hewlett Packard‘s Implementation of an ERP System The Problem Christina Hanger was charged with the implementation of a centralized ERP system for HP. When the system went live, as much as 20% of the customer orders did not completely go through because they were stuck between the legacy system and the new SAP system. Data modeling issues prevented the SAP system from processing some customized orders. These programming errors were fixed fairly quickly in few weeks; but during this time, certain orders could not be processed. Customers became angry, and HP lost a large amount of business. In an IT sense, the problem was just a few simple bugs; not a big deal for a new software rollout. But in a business sense when the system was not fully functional, many sales
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Unformatted text preview: were not made. • Orders began to quickly backlog, and HP did not have enough manual workarounds to keep business flowing smoothly. • The loss of revenue as a result of the system errors was $160 million, higher than the cost of the project itself. The Solution • This situation could have been prevented through better testing and a more complete contingency plan. • IT projects rarely have exact results upon initial deployment, and this is why risk management and product testing are so important. • Product testing should be used to make sure the end user gets the desired or required results. • An extensive contingency plan should have been made for a project that involved so much risk. Source: http://www.cio.com/archive/120104/contingencyplan.html...
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