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ERP implementation failure a case study 2020

ERP Implemenatation Failure in HERSHEY'S

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ERP implementation failure a case study 2020

 

Failure is a scary word. You hear it and think it is something with the thorns. But this is the one thing that teaches you the most valuable lessons. Businesses like to upgrade and even if they don’t, the demand of the market will make them do it.

Now, failure and businesses go hand in hand. It is not always a story of success and never a failure. There are a lot of ERP implementation failure examples as well as successful examples.

So, when it comes to upgrading, organizations think of every possible investment they can make for the sake of efficiency. The client has nothing to do with resources; the only thing he demands is efficiency and on-time work delivery. So, Enterprise Resource Planning (ERP) is one of the systems that make sure of it.

It is an amazing Enterprise Software. But usually, implementation of ERP fails. According to some of the facts, it has a more failure rate than success.

If you want, we can name many reasons and including that; the staff in a relaxing mood without analyzing the outcome of ERP software implementation is on the top.

Case Study of the failure of ERP Solution implementation

 

ERP implementation fails due to many reasons, but lack of involvement, supervision, and recognition are the most common.

Let’s study today the case of Hershey’s SAP ERP failure.

 

It is one of the common case studies, and people take lessons from them before investing millions of dollars in the system. And according to the ERP implementation failure statistics, Hershey is one of the most popular case studies for that matter.

If you are a business owner or going to be a future CEO of any company. Bear one thing in mind, along with the decision making power, the timing for business benefits is the most important thing. Hershey’s made the mistake in scheduling. These are the three mistakes that lead them to the failure of ERP Solution.

hersheys ERP fail

 

  • The operational team of Hershey’s made a terrible mistake of sacrificing systems testing for the sake of convenience. So, no issues came into attention. By the time they get to know, it was too late. If you want to provide real-time experience to your clients, you must sure real-time testing process too.

 

  • Second mistake of textbook implementation mistake. They tried to squeeze a complex ERP system into a short timeline. When you implement anything new, it demands some effort and not giving it the needed attention and effort is the sole reason for any kind of failure. So, it was an easy way to fail.

 

  • The third mistake was to time the cutover period in a busy season. Halloween is the season of candy, and the staff was not trained for the ERP at that time. Hershey’s ignored the fact and didn’t reduce their orders. So, the ultimate reason for the failure was the non-qualified team as they were not proficient, but had to meet the deadlines and orders.

Other than Hershey, Vodafone ERP implementation failure can also be used as a case study.

 

Conclusion

 

Ultimately, it is all about managing ERP implementation failure as a project management perspective. If you want to avoid any of the failures of ERP implementations, keep a few things in mind, testing the system, time cutover period during the slow business period and never squeeze a complex system into a short time. These are only a few lessons from one case study. You must go through a few others before making any investment.

 

identify the ERP failure factors 

 

We offer a rescue plan if we believe that your ERP implementation falls under the failed ERP project ( please read here) 

 

 

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