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SAP ERP implementation case study. http://www.ifour-consultancy.com
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ERP Implementation Failure Case study
Company Involved– Company A
Motivation behind ERP software implementation
Reason for ERP implementation failure
Recommendations
SCIT Internalhttp://www.ifour-consultancy.com Offshore software development company India
Company Involved - Company A
Business of the company was principally in healthcare services
http://www.ifour-consultancy.com Offshore software development company India
Motivation behind ERP software implementation
BUSINESS STRATEGY
Cost Leadership
Differentiation From Others
http://www.ifour-consultancy.com Offshore software development company India
Motivation behind ERP software implementation
COMPETITION
Traditional Competitors
40 Major wholesales competed in the market
Manufacturers started direct selling
Self-Warehousing
http://www.ifour-consultancy.com Offshore software development company India
Motivation behind ERP software implementation
CUSTOMERS
INDEPENDENT PHARMACIES
INSTITUTIONS
RETAIL CHAINS
ONLINE ORDERS
http://www.ifour-consultancy.com Offshore software development company India
Motivation behind ERP software implementation
OTHER REASONS
Make complex supply chain decisions
Based on a supply chain analysis, it was decided that an ERP would offer a perfect solution
Meet the increased cost pressure
Management decided to focus on a business strategy of transferring the company into low cost distributor to increase competitive advantage
http://www.ifour-consultancy.com Offshore software development company India
Selection of SAP SAP is the largest ERP software vendor
Vast array of modules, with huge spectrum of functionalities
Industry specific solutions with a deep insight.
Highly integrated with other modules
http://www.ifour-consultancy.com Offshore software development company India
Implementation of SAP Company A contracted with SAP, consulting
company, to implement the R/3 software
Project covered the entire supply chain from warehouses, inventory control to shipping and handling
Implementation cost for SAP was budgeted at US$65m
The ERP system was projected to save Company A – a great amount of money per year
http://www.ifour-consultancy.com Offshore software development company India
Reason for ERP implementation failure
Planning
Poor selection of the Software No consideration of other consultants’ adviceLack of contingency planningNo end user involvement
http://www.ifour-consultancy.com Offshore software development company India
Reason for ERP implementation failure
Implementation
No restructuring of the business process was done
Insufficient testingOver-ambitious project scope
http://www.ifour-consultancy.com Offshore software development company India
Reason for ERP implementation failure
Implementation
Dominance of IT specialists’ personal interest
Poor Management supportLack of end-user cooperation
http://www.ifour-consultancy.com Offshore software development company India
Recommendations
Planning
Software selectionContingency planStakeholders’ involvement
http://www.ifour-consultancy.com Offshore software development company India
Recommendations
Implementation
Inclusion of the necessary business process reengineering
Thorough testingRealistic project scope
http://www.ifour-consultancy.com Offshore software development company India
Recommendations
Implementation
Close monitoring of project statusSeek end user supportPost implementation review
http://www.ifour-consultancy.com Offshore software development company India
References
Symbiosis students Akshay Mehra Devam Shah Kanchan Chandrayan Sneha Vazirani
http://www.ifour-consultancy.com Offshore software development company India
http://www.ifour-consultancy.com Offshore software development company India