Erp at Hp

Subject Managing The Value Chain Name ALOK KUMAR GUPTA Enrollment No. 6010091106380 ERP IMPLEMENTATION FAILURE AT HP (ITYS045) a. Analyze the limitation of IT project steering. Discuss the importance of business contingency plans for enterprise projects. Justify your answer taking the example of HP b. hit the books the implementation of the ERP migration failure considering HPs role as a third party implementer of SAPs supply cosmic string solutions. Can HP use this ERP implementation failure to its strategic benefit? Why / why non?Give reason for your answer HP announced that their revenue has at peace(p) ingest by 5% to $3. 4bn for the 3rd quarter ended July 2004. The reason proposed was ascribable to the problem faced during the migration to the centralized ERP system. The total financial impact due to the failure was $160mn Project management is a term including scheduling, cost control and budget management, resource allocation, collaboration softw be, communication, qua lity management and documentation of administration systems, which are used to deal with the complexity of large projects.Limitation of IT project management It requires proper training and knowledge about the project With single backbone, failure would be attend Difficulty in finding our programmeming errors and their rectification For successful implementation of IT projects management, defining the requirement developing a plan, and implementing it with technology is a difficult working class Creating a cross-functional team is a difficult task A contingency plan is a plan devised for a specific situation when things ould go slander. eventuality plans are often devised by business who wants to be prepared for anything that could happen as Back-up plans worst-case scenario plans Scrap situation or Plan B Contingency plans take on specific strategies and actions to deal with specific variances to assumptions resulting in a particular problem, emergency or state of affairs. The y also include a monitoring process and triggers for initiating be after actions.They are required to help governments, business or individuals to recover from serious incidents in the minimum time with minimum cost and disruption. Technical glitches were small hardly contingencies planning were not addressed appropriately on SAP R/3 Implementation. Original Objectives were Shorter lead & delivery time, Cost saving and Global dispersion system In 1993, HPs BCMO unit began with the implementation with several modules like MM, PP, FI, CO. FI & CO modules were implementation on global basis & SD implemented as part of pilot project.By 1998, major migration to SAP R/3 completed. Major benefit are (i) Reduce huge cost incurred on IT support, (ii) all programs break away on single browser, (iii) Eliminate collect to create custom SAP interface, (iv) Greater speed in implementation and (v) With an option of query which would make it easier to use. Questions were embossed on failure of HP implementing ERP, as it was a consultant for SAP ERP implementation. HPs responsibility as a consultant was to prevent the transaction problems faced by the implementation Co. n which it itself failed While conducting an internal serve, HP revealed that in that location has been execution problem and not the fault of SAP ERP Migration Failure there are several reasons for failure but the most popular one is project management. To justify this argument a study by Sweat (1998) revealed that contempt project managers knowing the importance of considering vital success factors in ERP implementations, 75% of the implementations were regarded as failure by the organizations themselves. This is purely because roject managers give least importance to these critical success factors during the implementation of an ERP package. Being an ERP project manager is very challenging and literature shows us there have been many cases where things have gone wrong because of incorrect approac h. According to Scott (1999) FoxMeyer was the fourth largest drugs distributor in the United States with a turnover of $5. 5 billion dollars, in 1996 FoxMeyer claimed bankruptcy and in 1998 sued the ERP vendor for cause its bankruptcy.The problem with them was they did not adopt many of the critical success factors required in the implementation of an ERP project. The following are causes of the migration failure Project team character Date integration problem Demand forecasting problems Poor planning & improper testing Inadequate implementation support / training Analysts commented that the HPs culture did not support the much active involvement of employees also company ignored valuable suggestion from employees.Company staff had warned HP but it was not possible for it to continue with the tradition system and also suggested for a back-up system but company turned deaf ears over that many Vice-president had joined the affect Company and also many employees had a fear of been l aid off. Learning from Failure Implementation failure can impact overall business mathematical operation there is no standard approach to implement ERP, many times it involves a business change in many departments. Therefore otherwise it mightiness miss out the objectives.The success of implementation depends upon the planning, which considers the business process along with the technical aspects. The potential benefits to the supply chain are much bigger than the IT cost and the potential risk to the supply chain is also much bigger. The success of ERP implementation also depends upon the ability to align IT along with the business management objectives, program management skills and a well defined process. There should be a manual back-up as a contingency plan and There should be no cross-functional barriers and should create effective processes and teams creative team.HR issues in ERP migration failure at HP Inadequate training time to develop ones skill in the new system, refr esher course training was of no use because of Backlogs, Active involvement of employees was not allowed in the company, Valuable suggestions from the employees was ignored, Distrust of upper management. This ignorance created dissatisfaction among employees Upper management perceived to be overpaid unable Culture divide within the company Non Co-operation within IT team & business team. These all led to High Attrition Work culture differences between HP & Compaq leading to incompatibility between departments.Dealing with the issue Encourage employees to participate and take their suggestions seriously, make them feel to be valuable assets, an equal merge of culture and carry away cultural differences, Co-operative between front end & back end, much time imparted to training programs & motivates them to learn more. Conclusion Am employee is a valuable Assets & A satisfied employee is a productive employee Examine the implementation of the ERP migration failure considering HPs ro le as a consultant for SAPs supply chain implementations. Can HP use this ERP implementation failure to its strategic advantages?Why / why not? Implementations are as follows About 20% of the ranks failure failed to go away from the legacy system to the new one due to programming errors. HP was able to fix this within a month but orders began to backlog. Backlogs counted to us $ 160mn. Revenues down by 5% Analysts raised credibility of HP as a consultant for SAP. The company had to direct orders through flight to speed up order fulfillment Hence added expenses. Customers were unhappy and there were continuous complaints about delayed processing, configuration and duplicated orders. Hence HP could not prove itself in this fieldERP implementation failure-strategic advantage If HP blamed all the failure at SAP then HP would loose its edge over IBM. The companys corporate strategic policy was based on the adaptive enterprise concept and its rival IBM concept was based on On-demand com puting The adaptive enterprise from HP is intentional to assist organization with their RTI to harmonize the processes between the core business and IT operations Constant retooling of the corporate infra-structure to meet the demands of a dynamic enterprise has led to the military rating of real-time infrastructure.Developed contingency plans to devise solutions for upcoming problems. Hence development of contingencies plans for ERP project is a must To prevent the reoccurrence of such a failure, there was a need to integrate business and technology. Customers Company should remove barriers to create effective and cross-functional processes and teams that were truly integrated. Increase dependency between among teams i. e. front end and back end. Approach should be afresh and should not try to map with previous implementation.Well planned, appropriate training and better employment Implement with technology integration. Improve the planning and the testing More effort and better f orecasting needed. Remarks Having discussed failures and implications, we have also looked at the benefits ERP can bring and that is the reason organizations still prefer to adopt an ERP system but there is a problem. As we have reviewed the literature, it is evident that there is still a gap in successful ERP implementations.The gap mainly stands from the perspective of project management and in particular from the project managers perspective. This review has produced the main research point that requires an answer How can we implement ERP successfully The answer to this question depends on what research methodology we adopt in order to produce our primary and secondary analysis so that we can carry out an assessment of our findings to be able to answer this question from theory and practice.