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QUESTION 1

Top Six ERP Implementation Failures

Posted by Melissa Monahan

Enterprise Resource Planning (ERP) implementations should smoothly integrate both internal and external information management across the organization that implements them, and yet many organizations that utilize ERP end up running into failure. It is believed that as many as 29 percent of all ERP implementations end up failing, and there are some well-known examples in the news that reinforce this belief. Here is a look at some of the top ERP implementation failure incidents that have occurred recently.

  • Hershey’s Blunder

Perhaps one of the best known ERP implementation failure incidents hitting the news occurred during the Halloween season in 1999. Due to mishap after mishap involving the company’s SAP ERP, CRM, and supply chain applications, the company failed to deliver $100 million dollars’ worth of Hershey Kisses during the season, which resulted in a startling 8 percent stock dip.

  • Nike’s Supply Chain Issues

Back in 2000 and 2001, Nike spent $400 million dollars updating their supply chain system and ERP implementation. They were surprised to find that what it got them was a ghastly 20 percent dip in their stock, $100 million dollars in lost revenues and a myriad of class action lawsuits.  Where did they go wrong? They implemented a new demand-planning software solution without testing it, and everything went awry. Rather than helping Nike match their supply with demand, narrowing their sneaker manufacturing cycle, they ended up ordering low-selling sneakers in place of high demand ones, collapsing the supply chain.

  • Hewlett Packard’s Disaster

While it is not uncommon for small disasters or issues to occur during the rollout of a new ERP system, total ERP implementation failure can occur when too many of these little issues occur all at once. Moving all of the company’s North American divisions into a single centralized ERP system ended up costing the company $160 million dollars in backlogged orders and lost revenues, more than five times what the project was estimated to cost in 2004.

  • Waste Management’s Trashed System

Waste Management began an 18-month installation process in 2005 that turned into a $100 million dollar legal battle which has been going on since 2008. Waste Management filed suit against SAP executives who apparently participated in fraud leading to a massive ERP implementation failure.

  • FoxMeyer Drugs’ Bankruptcy

FoxMeyer Drugs, a $5 billion dollar company implemented a $100 million dollar ERP system and went completely bankrupt not long after. Did the two have a correlation? They launched the Delta III project in 1993, and implementation began between 1994 and 1995. By 1996, FoxMeyer had been driven into bankruptcy, and by 1997 the pharmaceuticals company was suing SAP, the ERP project vendor as well as Andersen Consulting, responsible for integrating the system for $500 million dollars apiece.

  • The Navy’s $1 Billion Dollar Blunder

Perhaps most startling, the United States Navy has sunk $1 billion dollars into four different ERP pilot projects since 1998, and all four have failed. These projects were based on SAP AG software. All four installations turned out to be incompatible and redundant, ultimately failing to meet the requirements of the Navy. While in this case, the only cost was the money spent on purchasing the programs, this is an ERP implementation failure of epic proportions.

Learn From the Past Mistakes of Others

These are just a few of the serious ERP implementation failure occurrences that have happened over the past few decades. Businesses and organizations must look upon these examples, and use everything these companies and organizations learned through experimentation and failure to rise above and find greater success with an ERP implementation. ERP implementations can be successful without failure, but only when the right system is implemented by the right people to do the job.

References

Krigsman, M. (2010, February 3). ERP failure: New research and statistics. ZDNet. Retrieved April 15, 2014, fromhttp://www.zdnet.com/blog/projectfailures/erp-failure-new-research-and-statistics/8253

                                                QUESTION 2

Question 2: Web search please!

Visit the website http://www.diversityinc.com and find their latest “top 50 list.” What criteria are used to evaluate companies that appear on this list? What are the top five companies for the current year? Develop a brief commentary about the site. What do you think about the articles available here?

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Criteria90-100% Far Above Standards80-89% Above Standards70-79% Meets Standards60-69% Below Standards< 60% Well Below StandardsProposed IT Solution20 points

18-20 Points

Proposed solution is appropriate to process and case study, is a SaaS product, and is convincingly justified. Clear and accurate description of proposed technology solution; covers how it meets functional and technical requirements; and an explanation of cost effectiveness is provided.  Uses course vocabulary. 

17 points

16-17 Points

Proposed solution is appropriate to process and case study, is a SaaS product, and is well justified. Concise description of proposed technology solution effectively covers functional and technical requirements and provides an explanation of cost effectiveness. 

15 points

14-15 Points

Proposed solution is appropriate to process and case study, is a SaaS product, and is justified. Adequate description of proposed technology solution is provided and includes functional and technical requirements and an explanation of cost effectiveness. 

13 points

12-13 points

Proposed technology solution description may be unclear or incomplete. Solution does not meet the business/IT requirements for Kelly’s Salon and/or is not a SaaS product.

0 points

0-11 Points

Proposed technology solution is not described or description cannot be understood; or few areas covered.

Vendor Agreement10 points

9-10 Points

This section includes a clear, complete, and accurate discussion of the arrangement to be made with the vendor and the associated costs; is clearly aligned to case study and technology solution; demonstrates thorough understanding of course vocabulary and concepts, analysis and critical thinking. 

8 points

8 Points

This section includes a clear discussion the arrangement to be made with the vendor and the associated costs; is aligned to the case study and technology solution; demonstrates understanding of course vocabulary and concepts, analysis and critical thinking. 

7 points

7 Points

The vendor agreement and costs are described and are appropriate to the case study and the proposed solution.

6 points

6 Points

The vendor agreement and costs are partially covered and/or are somewhat appropriate to the case study project; and may be lacking in demonstration of understanding of course concepts, analysis, and/or critical thinking.

0 points

0-5 Points

Vendor agreement and costs are not included; very few details provided; or are not applicable to the case study or the proposed solution.

Hardware and Telecommunications10 points

9-10 Points

The hardware and telecommunications needed at Kelly’s Salon and how they will be acquired are thoroughly covered and well aligned to the proposed solution and the case study; and clearly demonstrates an understanding of course vocabulary and concepts, analysis, and critical thinking. and critical thinking.

8 points

8 Points

The hardware and telecommunications needed at Kelly’s Salon and how they will be acquired are well covered and aligned to the proposed solution and the case study; and demonstrates understanding of course vocabulary and concepts, analysis, and critical thinking.

7 points

7 Points

The hardware and telecommunications needed at Kelly’s Salon and how they will be acquired are included and adequately aligned to the proposed solution and the case study.

6 points

6 Points

The hardware and telecommunications needed needed at Kelly’s Salon and how they will be acquired are not covered, and/or explanations are not aligned to the proposed solution; may be lacking in demonstration of understanding of course concepts, analysis, and/or critical thinking.

0 points

0-5 Points

The hardware and telecommunications needed at Kelly’s Salon and how they will be acquired are not included; are incorrectly addressed; or paper demonstrates little effort.

Configuration & Testing10 points

9-10 Points

Configuration options and who will configure the system, and how the system will be tested are fully and clearly explained and well aligned to the proposed solution and appropriate to the case study. 

8 points

8 points

Configuration options and who will configure the system, and how the system will be tested are clearly explained and are appropriate to the proposed solution and to the case study.

7 points

7 points 

Configuration options and who will configure the system, and how the system will be tested are appropriate to the proposed solution and the case study.

6 points

6 points 

Configuration options and who will configure the system, and how the system will be tested are somewhat appropriate to the proposed solution and/or the case study.

0 points

0-5 points 

Configuration options and who will configure the system, and how the system will be tested are not addressed correctly or are not appropriate to the proposed solution and/or the case study.

Employee Preparation & Data Migration10 points

9-10 Points

Employee preparation and data migration are fully and clearly explained; and are well aligned to the proposed solution and to the case study; clearly demonstrates critical thinking.

8 points

8 Points

Employee preparation and data migration are explained well; and are clearly appropriate to the proposed solution and to the case study; demonstrates critical thinking.

7 points

7 Points

Employee preparation and data migration are explained; are appropriate to the proposed solution and to the case study.

6 points

6 Points

Employee preparation and data migration are partially explained; and/or are somewhat appropriate to the proposed solution and/or case study.

0 points

0-5 Points

Employee preparation and data migration are not addressed and/or are not appropriate to the proposed solution and/or case study.

System Use & Maintenance10 points

9-10 Points

Users, their purposes and how they will be supported, and how the system will be maintained are fully explained and clearly aligned to the case study and the proposed solution;demonstrates sophisticated analysis, and critical thinking.

8 points

8 points 

Users, their purposes and how they will be supported, and how the system will be maintained are explained well and are aligned to the case study and the proposed solution;demonstrates analysis, and critical thinking.

7 points

7 points 

Users, their purposes and how they will be supported, and how the system will be maintained are explained. 

6 points

6 points 

Users, their purposes and how they will be supported, and how the system will be maintained are partially covered; and/or are somewhat appropriate for the solution and/or the case study.

0 points

0-5 points 

Users, their purposes and how they will be supported, and how the system will be maintained are not included; and/or are not appropriate to the proposed solution and/or the case study.

Conclusion10 points

9-10 Points

Well-written conclusion that provides a compelling call to action for Kelly and includes several benefits to be expected from the project; demonstrates sophisticated analysis and critical thinking.

8 points

8 Points

Good conclusion that provides some call to action for Kelly and includes benefits to be expected from the project; demonstrates analysis and critical thinking.

7 points

7 Points

Conclusion provides some benefits to be expected without a strong call to action.

6 points

6 Points

Conclusion lacks clear action and benefits; conclusion is inadequate or incomplete or irrelevant to the solution and/or the case study.

0 points

0-5 Points

Conclusion poorly addressed.

External Research10 points

9-10 Points

Two or more

external sources are appropriately incorporated and used effectively and includes vendor site for recommended solution. Sources used are relevant and timely and contribute to the analysis and support conclusions. References are listed and cited using APA style.

8 points

8 Points

At least one external resource is appropriately incorporated and used effectively and includes vendor site for recommended solution. Sources used are relevant and timely and contribute to the analysis and support conclusions. References are listed and cited using APA style.

7 points

7 Points

At least one external resource is used and properly incorporated. Reference is listed and cited using APA style.  Vendor site for recommended solution is used as a resource. 

6 points

6 Points

A source other than the textbook may be used, but is not properly incorporated or used, and/or is not effective or appropriate or vendor site not included; and/or does not follow APA style for references and citations.

0 points

0-5 Points

No external research incorporated; or reference listed is not cited within the text.

Report Format10 points

9-10 Points

Report is very well organized and is easy to read. An appropriate introduction sets the context including competitive strategy and business process being improved and what’s to come. Very few or no errors in sentence structure, grammar, and spelling; double-spaced, written to target audience and presented in a professional format. 

8 points

8 points

Report reflects effective organization; has few errors in sentence structure, grammar, and spelling; double-spaced, written to target audience and presented in a professional format. An appropriate introduction sets the context including competitive strategy and business process being improved and what’s to come. 

7 points

7 Points

Report has some organization; may have some errors in sentence structure, grammar and spelling. Report is double spaced and to target audience.  An introduction is provided.

6 points

6 Points

Report is not well organized, and/or contains several grammar and/or spelling errors; is not double-spaced and to target audience; and/or no introduction provided.

0 points

0-5 Points

Report is extremely poorly written, has many grammar and/or spelling errors, or does not convey the information.

Overall Score90-100% Far Above Standards90 or more80-89% Above Standards80 or more70-79% Meets Standards70 or more60-69% Below Standards60 or more< 60% Well Below Standards0 or more

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