Erp implementation failuer at hp

1. ERP IMPLEMENTATION
FAILUER AT HP
Based on case study by:Ruchi Chaturvedi N.

2. INTRODUCTION
• August 2004, HP announced that their revenue for
3rd quarter from its Enterprise Servers and Storage
(ESS) segment had gone down by 5% to $3.4 bn
• Reasons stated for the downfall was due to
migrating to a centralized ERP system at one of its
North American division

3. BACK GROUND
• Founded in 1938 by Bill
Hewlett and David Packard as
an electronic instrument
company
• The company was founded in a
one-car garage
• HP launched its first mini
computer in 1974
• First Personal Computer in 1981

4. OBJECTIVE
• To keep orders and deliveries flowing during the
problem period
• To ready solutions assuming the new system would fail
during final rollout
• Make sure to have additional manufacturing capacity
ready, before the ERP rollout

5. WHAT IS ERP SYSTEM
• An Enterprise Resource
Planning System, commonly
known as an ERP system, is a
set of business software tools
designed to facilitate the flow
of information between all
departments or functions
within a business.

6. USE OF ERP SYSTEM
• ERP systems make it easier for order tracking, inventory
tracking, revenue tracking, sales forecasting and related
activities.
• Advanced e-commerce integration
• Cost Savings

7. ERP FAILUER
• HP revealed that there was execution problem and there
was no fault of SAP in it.
• There were small technical glitches but the main issue
was contingency planning, which was not addresses
properly.
• The other issues were like:
– Data Integration Issues
– Demand Forecasting Problems
– Poor planning & Improper Testing

8. IMPACT OF FAILUER
Dissatisfied employees
Dissatisfied customers
Bad reputation
• Loses according to HP
• $400m in revenue.
• $160m during the implantation.
 Lost market share to IBM, Dell.
Doubtful future for next SAP implementations

9. SUGGESTION
 Decide upon all 3 basic factors before migrating
• Define the requirements
• Develop a plan
• Implement the plan using IT integration & user training
 “Enterprise software isn’t just software. It requires changing the
way you do business.”

10. Thank You