Analysts felt that this high attrition must have affected project

Analysts felt that this high attrition must have

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Analysts felt that this high attrition must have affected project implementation. A survey of employees at HP cited that employees had been under a steady fear of layoffs. It also revealed that there was ample distrust of upper management and they were perceived as being overpaid and inefficient. Some employees pointed to a cultural divide within the company which they felt was a matter of serious concern leading to non co-operation between the IT management team and the business team. Internal culture conflict: Most analysts felt that HP had traditionally been very systematic, risk averse and slow; Compaq’s culture had been very aggressive and risk loving. And, as one employee said, “The fissures, between these groups now seem to be resulting in serious operations problems and not just vocal attacks.” Crawford DelPrete, an analyst with IDC, agreed, “While issues came to light from the system migration troubles, they are rooted in the changes taking place.” Analysts suggested that HP should have hired an outside operations chief for strict control over operational issues. ERP systems are very large and complex and warrant a careful planning and execution of their implementation. They are not mere software systems; they affect how a business conducts itself. How a company implements an ERP system determines whether it creates a competitive advantage or becomes a corporate headache. The top contributor for a successful ERP implementation is strong commitment from upper management, as an implementation involves significant alterations to existing business practices as well as an outlay of huge capital investments. The other important factors are the issues related to reengineering the business processes and integrating the other business applications to the ERP backbone. Upper management plays a key role in managing the change an ERP brings into an organization. Organizational commitment is paramount due to possible lengthy implementation and huge costs involved. Once implemented, an ERP system is difficult and expensive to undo. Since no single ERP solution can satisfy all the business needs, organizations may have to implement custom applications in addition to the ERP software. Integrating different software packages poses a serious challenge, and the integration patchwork is expensive and difficult to maintain.
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