Have you experienced the pain of a failed ERP project? And when ERP implementation goes wrong, it goes really wrong. As enterprise resource planning systems usually have several real-time touch points within an organisation, a rocky implementation can result in widespread outages, customer order issues and manufacturing and delivery delays.
Here are some of the most monumental ERP failures over the last Two decades.
Unfortunately, Hershey had a terrible experience with an ERP
It could be a failed technology implementation (in this case SAP's R/3 ERP software) pull down a Fortune 500 company (Hershey Foods)? Well, it certainly didn't help Hershey's operations during the Halloween season in 2000 or make Wall Street investors thrilled.
In the end, Hershey's ghastly problems with its SAP ERP, Siebel CRM and Manugistics supply chain execution applications unable to integrate & prevented it from delivering $100 million worth of Kisses for Halloween that year and caused the stock to dip 8 percent.
So We can understand a failed technology project can't actually pull down a Fortune 500 company for good, but it can certainly knock it around a bit.
Just help us to Fix Our Supply Chain Execution System! But what happened next?
You must know what happened to a $400 million upgrade to Nike's supply chain and ERP systems get the world-renowned shoe- and athletic gear-maker? Well, for starters, $100 million in lost sales, a 20 percent stock dip and a collection of class-action lawsuits.
This was all back in 2000, and the horrendous results were due to a bold ERP, supply chain and CRM project that aimed to upgrade the systems into one superstar system eventually left them best at unable to find their supply flow and worst at ableness to collect their incoming demand.
HP showed an example to world how not to implement an ERP-A perfect storm of problems
The epic tale of HP's centralization of its disparate North American ERP systems onto one SAP system proves that one can never be too pessimistic when it comes to ERP project management. You see, in 2004, HP's project managers knew all of the things that could go wrong with their ERP rollout. But they just didn't plan for so many of them to happen at once.
The project eventually cost HP $160 million in order backlogs and lost revenue—more than five times the project's estimated cost. Said Gilles Bouchard, then-CIO of HP's global operations: "We had a series of small problems, none of which individually would have been too much to handle. But together they created the perfect storm."
The tempting Oracle Fusion Applications
Back in January 2006, Oracle boasted that it was halfway through the Fusion Applications development process. You might remember the hype about Fusion Apps: a killer enterprise application suite that combines the best features and functionalities taken from Oracle's expansive E-Business Suite, J.D. Edwards, PeopleSoft and Siebel product lines.
Oracle's master plan was to "build the next-generation of applications that are completely standard." More than 5 years later, clients we're waited for the first generation of Oracle's suite of Fusion Apps.
CSC left UK NHS ERP project as “Incurable Patient”
A national project to implement a new patient record system for the UK NHS was abandoned and reportedly cost the UK taxpayer in the region of £10bn.
This number doesn't even include the future costs of a new ERP system to replace the failed project, which could run into many millions of pounds more.
After the project was launched in 2002, it struggled on until 2011 when it was officially dismantled. The provider, CSC, was accused of "poor performance" and a "failure to deliver". In 2013, over ten years after the project was started, no NHS trust had a functioning care records system delivered through the original project scope.