Case Study The Root Cause Behind The Failure Of ERP

Case Study The Root Cause Behind The Failure Of ERP Systems http://www.hemantjha.in/content/3/requirements-engineering-the-root-cause-behind-the-failure-of-erp-systems.html

Identified Problems Implementation/Consulting Implementation Engineers lack an understanding of the complexity of the business system Lack of Staff Management Plan - Attrition Lack of Documentation Paying Company (Buyer) No No No No Education/No Preparedness/All Hype Understanding of the impact Risk Analysis Project Plan

High Level Solution Buyer Identify the Need (Not Hype) The Buyer needs to know enough to Understand the complexity of the target business system Either model it or understand a model created by consultants Understand the Capabilities of the System Demo it with Sample Data

Ingram Micro Founded 1979, Fortune 100 Wholesale provider of technology products and supply chain services World’s largest IT distributor, providing sales and logistics services Based in Santa Ana, California.

Situation Transitioning from old ERP software and implementing a new one with SAP in Australia. The rollout of SAP in various regions “Australia which hosts one of Ingram's largest operations has presented some difficulties due to increased complexity in the existing IT landscape” http://www.cio.com/article/681055/ SAP Project Woes Impact Ingram Micro s Profits

Effects The system problems resulted in delayed orders that hurt sales and profit margins in first quarter 2011 Net income 56.3 million, Down from 70.3 million in the same quarter last year, A drop "primarily attributable to difficulties transitioning to a new enterprise system in Australia"

Solution Systems Integrators are expected to Give customers a realistic set of project timelines Deliver on agreed milestones Staff the job with well-qualified technicians.