ERP Disasters, Dustups and Disappointments

ERP Disasters, Dustups and Disappointments - 10 Famous ERP...

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1/29/2014 10 Famous ERP Disasters, Dustups and Disappointments http://www.cio.com/article/print/486284 1/3 From: www.cio.com 10 Famous ERP Disasters, Dustups and Disappointments – Thomas Wailgum, CIO March 24, 2009 The world of enterprise applications ( ERP , CRM , BI and supply chain apps) may seem boring to those caught up in the hysteria over Twitter and iPhone applications , but there's plenty of drama to be found (even more than on an episode of "The Bachelor"): Troubled multimillion-dollar software deals that produce spectacular failures and huge spending nightmares; vendor marketing bravado that breeds cut- throat competition and contempt; and embarrassing and costly lawsuits over botched implementations and intellectual property breaches. MORE ON CIO.com Wake Up People! Forget Twitter and iPhone Apps, and Focus on SAP and ERP Apps ERP Backlash Coming Soon to a Company Near You Want to Save $10 Million or More on ERP? Don't Buy Oracle or SAP It's no wonder ERP has such a bad reputation among executives. All of this drama is, in fact, creating a nasty and very real ERP backlash . Consider CIO.com's brief and semi-chronological history of 10 ERP scandals as a warning if you're contemplating an upgrade or implementation. 1. Definitely Not a Sweet Experience for Hershey Could a failed technology implementation (in this case SAP's R/3 ERP software) take down a Fortune 500 company (in this case Hershey Foods )? Well, it certainly didn't help Hershey's operations during the Halloween season in 1999 or make Wall Street investors thrilled. In the end, Hershey's ghastly problems with its SAP ERP, Siebel CRM and Manugistics supply chain applications prevented it from delivering $100 million worth of Kisses for Halloween that year and caused the stock to dip 8 percent. So I guess a failed technology project can't actually take down a Fortune 500 company for good, but it can certainly knock it around a bit. 2. Just Do It: Fix Our Supply Chain System! What did a $400 million upgrade to Nike's supply chain and ERP systems get the world-renowned shoe- and athletic gear-maker? Well, for starters, $100 million in lost sales, a 20 percent stock dip and a collection of class-action lawsuits.
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