CASE STUDY #3 - NEW TECHNOLOGY DISASTER : WHO OR WHAT IS RESPONSIBLE?

 

Failed information technology implementations have created serious financial problems for a number of corporations. Hershey Food Corporation, for example , issued a major profits warning because of massive distribution problems following the flawed implementation of an Enterprise Resource Planning (ERP) Systems. This resulted in many stores lacking Hershey products before Halloween and Christmas. Whirlpool Corporation had similar problems due to a problematic ERP implementation. Problems with an ERP implementation at the pharmaceutical distributor FoxMeyer caused the company to announce a $500 million lawsuit against SAP and Andersen Consulting (now Accenture). British organizations, including the BBC and Newcastle University, also experienced major ERP implementation problems.

 

Adapted from : Gordon J.R (2002) Organizational Behaviour : A Diagnostic Approach. 7th ed. Pearson. Upper Saddle River, New Jersey.

 

 

QUESTION 1 :

Describe three (3) effects of ERP failure based on the case above.

u Three effects of ERP failure based on the case above are :-

a. The company will facing a major profits warning because of the massive distribution problems.

b. Many stores that implement the ERP is resulting lack in products storing due to the problematic ERP systems.

c. The company has to announce their fight and file a lawsuit against the ERP ’s vendors because of the problems that the systems brought itself.

 

QUESTION 2 :

Describe four (4) factors that organization should assess in choosing ERP vendor.

l The four factors that organization should assess in choosing ERP vendor are :-

i. Flexible - The systems must be able to quickly respond to the changing needs of the organization.

ii. Modular and open - ERP must have an open systems architecture, meaning that any module can be interface with or detached whenever required without affecting the other modules.

iii. Comprehensive - The systems must be able to support a variety of organizational functions for a wide range of business. 

iv. Beyond the company - The systems also must supports external partnerships and collaboration efforts.