...Deloitte: Alleges fraud on SAP project The success or failure of implementing ERP software depends on a number of factors. I will look at the case Marin County sues Deloitte: Alleges fraud on SAP project. Marin County filed a complaint against Deloitte Consulting for its role in an over-budget SAP implementation. The lawsuit alleges Deloitte committed fraud and misrepresented its skills and experience. One of the reasons why this ERP system failed was Deloitte knew the County didn’t have any prior ERP or SAP implementation experience and knew it would be depending on Deloitte to guide and manage the project. The complaint also states that Deloitte mishandled staffing, project management, risk management, and testing. When implementing ERP software customers, software vendors, and system integrators typically share responsibility for project success of failure. However, customers purchasing complex systems, such as ERP software, do have a high responsibility that their own projects outcome is successful. In Marin’s contract suggested the County was concerned about its own ability to manage the project properly. Being concerned with your own company’s ability to manage a project in the early stage of implementation is not a good thing and Marin County should’ve controlled the conversation with their system integrators and lead from that premise. It’s up to the customer such as Marin County to lead and drive the result of their ERP implementation project and can’t rely on their system...
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...1 - What are the failure factors for the first NIKE-i2 ERP-SCM implementation? The following factors contributed to the failure if the ERP-SCM implementation for Nike which then resulted in a loss of $48 million for the year: • i2 Inexperience: Nike although were aware that i2 was unable to provide all the required functionalities initially, requested i2, who were already inexperienced with the footwear industry, to adjust and provide high level of complex customization. • Integration: Nike failed to hire a Third Party Integrator which could have assisted them in overlooking the entire implementation. The integrator could have advised on any issues as well as act as a means of communication between Nike and i2. Instead, i2 was not even integrated with the current SAP ERP, and was rather set up to perform in complete isolation • Customization: Nike underestimated the complexity of the implementation by demanding i2 high level of customization by having an extremely high level of detailed forecasting in addition to trying to forecast too far ahead. i2 was unable to keep up with the quick changes in the market and seasonal trends and thus creating several delays and inaccurate forecasts. • Pilot Test: Nike underestimated the potential risk of failure in implementing i2 and did not conduct any pilot testing. Having done so, could have prevented or at least minimized their losses. A pilot test would have enabled them to be better equipped and deal with...
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...ERP lmplementation Failure at Hershey FoodsCorporation Case study Reference 908-001-1 no This case written InduPerepu, was by under direction Vivek the of Gupta, lcFAl center Management for Research. intended be used thebasis lt is to as for class discussion rather thanto illustrate either effective ineffective or handlinq of a management situation.The was case compiled published from sources. @2008, ICFAI Center Management for (ICMR). Research Nopartof thispublication be copied, may stored, transmitted, reproduced or distributedanyformor medium in whatsoever without permission the of thecopyright owner. DlrtÍibuted by sch,UK and USA NoÍth AmcÍie RestoÍth. woÍld GE - thecase learninqffiffI;ïi" for ;ïl;:llï;:ï a ecchusa@ecch.com ;ïillll;:Íïiï; € êcch@ecch.com PÍinted in UK and UsA 908-001-1 ERP IMPLEMENTATION FAILURE AT HERSHEY FOODS CORPORATION "The Hersheydebacleis not an indictmentof ERPsper se, but it should caution any company that choosesto implementsuch a broad suite to make sure that systemwill function smoothly beforeenteringa peak salesperiod."l - Chain StoreAge, in 1999. "There is no doubt that 1999was a most dfficult and disappointingyear for Hershey Foods Corporation. llhile the year got off to a slow start due to excessiveretail inventories, we fully of expecteda strongfinish in the secondhalf of the yea.r.Instead, the implementation theJinal phase of the Corporation's enterprise-wide information systemcreatedproblems in the areas...
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...ERP System Failures Jodie Wittenburg Assignment ACG_5647-12 – Week 11 – Course Project Auditing II March 27, 2015 Instructor: Dr. Maryln Fisher Introduction Major project failure is an unfortunate fact for many organizations, and Enterprise Resource Planning (ERP) projects are no exception. Whether the project is a few months or a few years long, whether it’s an upgrade or a new implementation, the financial and cultural well-being of the entire organization is at stake, and the associated costs of the failure range from disruptive to catastrophic. Everything possible must be done to ensure success. What is an ERP System? An ERP System is an industry acronym for Enterprise Resource Planning System, referring to automation and integration of a company’s core business to help focus on effectiveness and simplified success (Syspro, n.d.). ERP is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services, and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales, and marketing. By doing so, a single computer system can serve the unique needs of each functional area. ERP systems support a smooth and seamless flow of information across the organization by providing a standardized environment for a firm’s business processes and a common operational...
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...How to Avoid SAP ERP Implementation Failure 1. Introduction Any company which is implementing an ERP either a small scale or large organizations is taking huge risk as they have to invest a lot of money and it is a time taking process with risks involved. Risks and issues are part and parcel of every major IT transformation project. When we place this in point of large transformation projects like SAP or Oracle these risks and issues can be huge which can collapse the entire project if not managed and monitored periodically. SAP frameworks have executed effectively more then 40000+ clients on the planet and most extend disappointments are not identified with the item or programming however basically attached to extend execution and the product usage accomplice. As defined by Rowe ERP as “ERP systems represent the implementation of old managerial dream of unifying and centralizing all the information systems into a combined one”. The existing techniques or process which is being followed during the implementation have failed so we need to be innovative by following the standard process. In this paper we would discuss about the problems while implementing an ERP and how to overcome those to implement it successfully. 2. Statement of the problem In the late 1990-2005 most of the companies which invested in ERP 50-70% of them have faced a huge disappointment and huge losses. . In a survey it is found that 56% of implementation costs over budget, average of that over budget is...
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...literature concerning ERP implementation problems during implementation phases and causes of ERP implementation failure. A multiple case study research methodology was adopted to understand “why” and “how” these ERP systems could not be implemented successfully. Different stakeholders (including top management, project manager, project team members and ERP consultants) from these case studies were interviewed, and ERP implementation documents were reviewed for triangulation. An ERP life cycle framework was applied to study the ERP implementation process and the associated problems in each phase of ERP implementation. Fourteen critical failure factors were identified and analyzed, and three common critical failure factors (poor consultant effectiveness, project management effectiveness and poo555îr quality of business process re-engineering) were examined and discussed. Future research on ERP implementation and critical failure factors is discussed. It is hoped that this research will help to bridge the current literature gap and provide practical advice for both academics and practitioners. Keywords: Critical Failure Factors, ERP Implementation, ERP Life Cycle. 1. Introduction An ERP system is an integrated software solution, typically offered by a vendor as a package that supports the seamless integration of all the information flowing through a company, such as financial, accounting, human resources, supply chain, and customer information (Davenport, 1998). ERP implementation is...
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...FREE TERM PAPERS ON SITE: www.BesplatniSeminarskiRadovi.com SOFTWARE PROJECT MANAGEMENT A Term Paper ON ERP Implementation-Procedures, Issues, Challenges & Failures Introduction An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. To be considered an ERP system, a software package should have the following traits: ➢ Should be integrated and operate in real time with no periodic batch updates. ➢ All applications should access one database...
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...SAP What is that? What is that? Many people may be bewildered after watching one of the company's limited television commercials - the same question jokingly asked in the ING commercials a few years ago. And the acronym SAP, should not be confused for "soon as possible" or the white liquid that sips from the back of a tree, either. SAP stands for Systems, Applications, and Products in Data Processing. In this highly advanced technological era, it is almost unimaginable for companies not to implement systems such as SAP’s so as to boost their Information Systems. Since the global community has 'gotten much smaller', than say fifty years ago, it is imperative that companies design their Information Systems with integrated features so as to operate effectively between countries. The implementation of SAP technology is no longer an advantage but a competitive parity and its relevance toward the field of Management Information Systems is paramount. "Get in the game or fall off the wayside." The story and development of this giant of a company is remarkable. SAP grew from a very modest five member staff at the founding of the company in 1972 to approximately 53,000 employees 38 years later (sap.com ). That is like hiring an average of 1432 employees per year for the last 37 years; a significant contribution by many standards. The company's success and relevance to the world of Information Systems can be attributed to its founders, management, and employees realizing SAP's mission...
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...The FoxMeyer Drugs' Bankruptcy: Was it a Failure of ERP? Judy E. Scott, The University of Texas at Austin, Judy.Scott@bus.utexas.edu Abstract This interpretive case study of FoxMeyer Drugs' ERP implementation is based on empirical frameworks and models of software project risks and project escalation. Implications of the study offer suggestions on how to avoid ERP failure. warehouses, the transition to the first automated warehouse was a disaster. Disgruntled workers damaged inventory, and orders were not filled, and mistakes occurred as the new system struggled with the volume of transactions. $34 million worth of inventory were lost (Jesitus 1997). Second, the scope of the project was risky. FoxMeyer was an early adopter of SAP R/3. After the project began, FoxMeyer signed a large contract to supply University HealthSystem Consortium (UHC). This event exacerbated the need for an unprecedented volume of R/3 transactions. Although, prior to the contract, testing seemed to indicate that R/3 on HP9000 servers would be able to cope with the volume of transactions, in 1994 R/3 could process only 10,000 customer orders per night, compared with 420,000 under FoxMeyer's original mainframe system (Jesitus 1997). Third, the execution of the project was an issue due to the shortage of skilled and knowledgeable personnel. FoxMeyer did not have the necessary skills in-house and was relying on Andersen Consulting to implement R/3 and integrate the ERP with an automated warehouse system from...
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...FUNCTIONS OF IT: 1. Technical support in SAP, RAMCO, DOTNET, JAVA, SQL 2. Functional support in SAP, RAMCO Before 2002, we have stand alones for supporting modules and in the year 2002, we came with RAMCO.RAMCO is an integrated software, and we have integration among each and every modules. This is the main reason, we came from stand alones to RAMCO. Upto 2009, we worked with RAMCO and later move on to SAP.The SAP ERP application is an integrated EnterpriseResourcePlanning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions. In today’s competitive market, individuals who possess essential business and technological skill enjoy a significant advantage over their peers. This is particularly true if your expertise includes SAP software. The SAP Certification provides that competitive edge. When you are sap certified, you join a distinguished community of experts recognized globally. Today more than 14,000 consultants and users worldwide are part of this exclusive community.In SAP we have the following modules: * Sales and Distribution (SD) * Production and Planning (PP) * Plant Maintenance (PM) * Material Management (MM) * Finance & Costing (FI CO) * Human Resources (HR) * Sap Basis * SALES AND DISTRIBUTION SAP SD refers to the sales and distribution module which is aimed...
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...Snacker has two products, the NRG-A and NRG-B bars. The NRG-A bar touts “Advanced Energy,” while the NRG-B bar touts “Body Building Proteins.” Multiple versions of the Fitter Snacker Company have been configured in SAP ERP system Depending on which class you are in, you will be assigned to a particular client in an SAP system. In SAP, the term ”client” has a different meaning than the typical usage of client in the computer world. In the beginning, while not technically correct, the easiest way to understand the SAP usage of client is to think of a client as a separate database. Information in one client, say client 503, is not accessible from other clients. When you log into the SAP system, you have to choose which System/Server you are logging into, then when you log in to that particular server, you have to specify which client you are using. Within each client in the system, there are 100 copies of the Fitter Snacker data. You have been assigned to one of these sets of data. On your SAP System User ID sheet, you have been given the system and client your account is on. You have also been given a Data Set Number, which tells you which set of data you should be using within your client. IT IS CRITICAL THAT YOU USE ONLY YOUR DATA SET. FAILURE TO DO SO WILL CAUSE YOU PROBLEMS AS WELL AS OTHERS IN YOUR CLASS. All of the data in the Fitter Snacker database begins with a Data Set Number. For example, the NRG-A bars are entered as 00 NRG-A, 01 NRG-A, 02 NRG-A...
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...According to the book “Why ERP?: A Primer On SAP Implementation” by Jacobs and Whybark, the overall situation can be summarized into three main parts. First of all, the novel introduces us with a manufacturing manager of a furniture plant called Billy. His boss, Mr. McDougle, who owns the company, wants to buy his brother’s furniture plant in Ohio. Virtually, Ohio plant has already implemented SAP R/3, and MR. McDougle desires to run the same software at both company in order to get efficiency. Consequently, Billy learns about EPR systems, and he has some considerations of its implementation. Moreover, Billy feels deeply that his plant is operating well with its existing software system (MRP). Then, as a result, Mr. McDougle sends Billy to an SAP training seminar. He attends it to learn more about the system and to decide whether this system is appropriate for the plant. Finally, Billy goes to Ohio to evaluate the SAP R/3 installation in use at there which works successfully, and to learn about how the plant works depending on a comparison between the two companies. He ends up with several concerns about transferring the software from the Ohio plant to his. Finally, Billy presents his final recommendations to his boss, and he gives some guidelines for how ERP systems should be implemented. He agrees that the system will be useful only in accounting sector to provide integrated financial statement at both plants. Mr. McDougle insists the ERP should be implemented as the system...
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...and customer relations globally. The company has been wildly successful in this business, such that they are considered to be the world’s largest business software company and the third-biggest independent software provider by revenue and have expanded business operations and productivity over the past 43 years. In this analysis, I intend to highlight a couple of problems with the company, as it pertains to innovation, apply Porter’s five forces and the concept of competitive advantage, and provide a couple of projections related to SAP by industry analysts for present and future indications. Primary Problems Related to Innovation with SAP 2008 - 2010 Early signals of turbulence began to appear at SAP in the years 2008 to 2010. Failures of the companies SaaS strategies were to blame. Primary problems with the innovation included adding too many features too soon, not really understanding how customers would use the technology together with their platform, and a cultural bias of SAP’s salesforce to sell on premise software only. This also caused a disruptive innovation, by disrupting an existing market and value network, displacing established market leaders and alliances. Additionally, causing frustration with middle management whose responsibility was to engage at the customer level. SAP competitor Oracle Corp, filed a lawsuit against SAP for malpractice and unfair competition in the California courts in 2007. SAP lost the case in 2010, and was ordered to pay US $1...
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...KAPIL SHARMA AND ASHUTOSH MUTSADDI Configuring SAP ERP Sales and Distribution ® SERIOUS SKILLS. Configuring SAP ERP Sales and Distribution ® Kapil Sharma Ashutosh Mutsaddi Acquisitions Editor: Agatha Kim Development Editor: Laurene Sorensen Technical Editor: Dheeraj Oswal Production Editor: Liz Britten Copy Editor: Kim Wimpsett Editorial Manager: Pete Gaughan Production Manager: Tim Tate Vice President and Executive Group Publisher: Richard Swadley Vice President and Publisher: Neil Edde Book Designer: Franz Baumhackl Compositor: Craig Johnson, Happenstance Type-O-Rama Proofreader: Word One, New York Indexer: Ted Laux Project Coordinator, Cover: Lynsey Stanford Cover Designer: Ryan Sneed Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada ISBN: 978-0-470-40473-7 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken,...
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...t Introduction: Event management is basically an organization responsible for conducting events like conference, product launch, seminars, ceremony etc as per the requirement of the customer. Basic task: Prepare event design, finding a site/place, arranging a food décor, pickups and accommodation, coordinating activities etc The number of task that would be undertaken would depend upon the size and theme of the event. Purpose: Is to put customer at ease by providing management services to customers like accommodation, sending invites, certificate distribution, setting up platform etc. The main focus of the company is to come up with the successful events without any hiccups and without consuming much of the customer’s time. Customers often lack the expertise and time to plan the event and thus hire event management companies to manage the event on their behalf so that they could solely focus on their work. Type of market: cooperate market and social market Cooperate market includes seminars, conferences, charities collection, trade show, company picnic, meeting of board members and stockholders Accounting market of events Profit margin, expenses and deal with customers for gain,(rent of place, service charges, one person serving for catering services, transportation charges, décor expenses tent reception, entertainment and accessories, printing charges, accommodation charges, contingency fund (if something went wrong then in that case we could use that fund...
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