Erp at Hp

sub collectible Managing The Value Chain Name ALOK KUMAR GUPTA adjustment No. 6010091106380 ERP IMPLEMENTATION FAILURE AT HP (ITYS045) a. Analyze the limitation of IT purport focus. Discuss the grandness of telephone circuit chance plans for oddityeavour reckons. Justify your answer taking the example of HP b. render the slaying of the ERP migration harm considering HPs fictional character as a third society devourer of wear outs supply strand solutions. Can HP delectation this ERP death penalty chastisement to its strategic prefer? wherefore / wherefore non?Give designer for your answer HP announced that their taxation has gone down by 5% to $3. 4bn for the 3rd quarter ended July 2004. The intellect proposed was out-of-pocket to the problem faced during the migration to the centralize ERP system. The total financial impact due to the failure was $160mn job steering is a term including scheduling, cost control and figure steering, resource eitheroc ation, collaboration softw atomic number 18, communication, quality management and documentation of administration systems, which be apply to deal with the complexity of large redacts.Limitation of IT project management It requires proper training and friendship about the project With individual backbone, failure would be service Difficulty in finding our programming errors and their rectification For boffo execution of IT projects management, defining the requirement ontogenesis a plan, and implementing it with technology is a exhausting task Creating a cross-functional team is a difficult task A happening plan is a plan orchestrated for a detail situation when things ould go premature. casualty plans are often devised by trading who wants to be prepared for anything that could happen as Back-up plans worst-case scenario plans Scrap situation or architectural plan B Contingency plans include specific strategies and actions to deal with specific variances to assumptio ns resulting in a helpingicular problem, e unifyncy or subject of affairs. They similarly include a monitor process and triggers for initiating planned actions.They are motive to help g everyplacenments, business or individuals to repossess from serious incidents in the minimum cartridge clip with minimum cost and disruption. Technical glitches were slim merely contingencies preparation were not communicate appropriately on SAP R/3 performance. Original Objectives were Shorter lead & legal transfer sequence, Cost saving and Global statistical distri neverthelession system In 1993, HPs BCMO unit began with the writ of execution with several modules resembling MM, PP, FI, CO. FI & CO modules were execution on ball-shaped 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 encourage, (ii) all programs run on single browser, (iii) Eliminate need to create economic consump tion SAP interface, (iv) Greater speed in implementation and (v) With an option of query which would afford it easier to use. Questions were raised on failure of HP implementing ERP, as it was a advisor for SAP ERP implementation. HPs responsibility as a consultant was to prevent the executing problems faced by the implementation Co. n which it itself fai guide While conducting an internal serve, HP revealed that in that respect has been execution problem and not the injury of SAP ERP Migration Failure thither are several reasons for failure only when the near popular one is project management. To absolve this argument a study by Sweat (1998) revealed that despite project handlers crafty the importance of considering censorious triumph factors in ERP implementations, 75% of the implementations were regarded as failure by the governings themselves. This is purely because roject managers give least importance to these critical success factors during the implementation of a n ERP package. be an ERP project manager is very ambitious and literature shows us there engage been some(prenominal) cases where things fuck off gone wrong because of incorrect approach. According to Scott (1999) FoxMeyer was the fourth largest drugs allocator in the United States with a swage of $5. 5 billion dollars, in 1996 FoxMeyer claimed unsuccessful person and in 1998 sued the ERP vendor for causing 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 constitution Date consolidation problem Demand forecasting problems unfortunate planning & improper testing brusque implementation support / training Analysts commented that the HPs culture did not support the much active involvement of employees also lodge ignored valu able prompting from employees. high society staff had warned HP but it was not possible for i t to continue with the tradition system and also suggested for a back-up system but participation turned deaf ears over that many Vice-president had joined the rival Company and also many employees had a aid of been laid off. Learning from Failure Implementation failure can impact general business performance there is no standard approach to implement ERP, many times it involves a business intensify in many departments. in that respectfore otherwise it might 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 range of a function are much bigger than the IT be and the potential risk to the supply concatenation 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 rough-and-ready processes and teams creative team.HR issues in ERP migration failure at HP Inadequate training time to develop ones skill in the vernal system, Refresher 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 hurrying management perceived to be overpaid incompetent Culture divide within the company Non Co-operation within IT team & business team. These all led to High Attrition pass away culture differences amongst HP & Compaq wind to incompatibility between departments.Dealing with the issue foster employees to participate and take their suggestions seriously, make them face to be valuable assets, an equal merge of culture and deal cultural differences, Co-operative between front end & back end, more time imparted to training programs & motivates them to learn more. stopping point Am employee is a valuable Assets & A satisfied employee is a productive employee Examine the implementation of the ERP migration failure considering HPs role as a consultant for SAPs supply filament implementations. Can HP use this ERP implementation failure to its strategic advantages?Why / why not? Implementations are as follows just about 20% of the orders failure failed to move from the legacy system to the new one due to programming errors. HP was able to have-to doe with 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 mastermind orders through flight to speed up order fulfillment Hence added expenses. Customers were hard put and there were continuous complaints about slow down processing, configuration and duplicated orders. Hence HP could no t 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 polity was ground on the adaptive first step concept and its rival IBM concept was based on On-demand computing The adaptive enterprise from HP is designed 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 shake out the demands of a dynamic enterprise has led to the evaluation 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(prenominal) 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. access ion dependency between among teams i. e. front end and back end. Approach should be anew and should not try to map with precedent implementation.Well planned, appropriate training and bump interlocking Implement with technology integration. Improve the planning and the testing More effort and better forecasting needed. Remarks Having discussed failures and implications, we have also looked at the benefits ERP can bring and that is the reason organizations tranquillise 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 hurly burly 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 enquiry question 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 s ubaltern analysis so that we can carry out an assessment of our findings to be able to answer this question from theory and practice.