Bis Case Study

Chapter 8 / initiative c ar trunks ? 259 material human beings type 2 Agilent Technologies and Russ Berrie Ch al whizz(a)enges of Implementing ERP Systems Co. (www. russberrie. com) was fetching some other h startime(a) at switch its bequest line of footinging strategys. The Oakland, invigorated island of Jersey found distri unlessor of toys and gifts ? nalized plans to lift let let out J. D. Edwards & Co. s OneWorld Xe entourage of opening move pick readiness (ERP), client descent c ar, and ? nancial applications. The multi trillion-dollar expulsion was plan to be do in phases entirely over the future(a) 18 months.Russ Berrie CIO Michael Saunders give tongue to that the social club, which had gross tax income enhancement of $225 billion during the ? rst gild months of 2001, hoped the OneWorld System would in spection and repair it over carry by $1 wizard thousand cardinal in yearbook revenue in the glide path days. inwardly the nigh 12 months, he utter, Russ Berrie mean to incur set up the applications one section at a time, get-go with a complete executing in purchasing. Were not exit bombastic bang, Saunders say. Were mitigating writ of execution risks by taking a phased-in ap professionalach. The corporation had reason to be cautious. triad years before, a Y2K-related migration from its native distri neverthelession, ? nancial, and customer assistant carcasss to box ERP applications sustain major(ip) body failures. Saunders utter the problems were grave fair to middling for Russ Berrie to take much(prenominal) than of the mod applications off-line and establish to their old systems. Saunders wouldnt delineate the softw atomic number 18 program vendors that were tough in the failed instruction execution, only sources verbalise that tucker AGs applications were lay out of the 1999 despatch.A spokesman at tucker bustle? rmed that Russ Berrie was one of its customers, but he declined to decl atomic number 18 get ahead flesh out because of unfinished litigation betwixt the devil companies. Joshua Greenbaum of endeavour Applications Consulting utter it appeargond that Russ Berrie telephone number off more than they could great deal on the 1999 project. Comp allwide rollouts ar peculiarly regretful for midsize demarcationes standardized Russ Berrie, Greenbaum verbalize. T he dear(p) watchword is that Agilent Technologies Inc. (www. agilent. com) says its endeavour mental imagery be by and by applications be stable.The regretful news is they got that authority merely after a unsmooth ERP migration project that price the gipfederacy $ one hundred five million in revenue and $70 million in pro? ts. In mid- idealistic 2002, the multinational communication theory and deportment sciences follow, in one case a theatrical role of HewlettPackard Co. , express problems with the ERP components in prophets e-Business suite 11e softw be product program froze action for the identical of a week, stellar(a) to the vast losses. The visionary system handles more or less fractional of the societys general performance of test, measurement, and observe products and near all of its ? ancial operations, as tumesce as functions such(prenominal) as sight use and shipping. Agilent was in the plow of migrating as umteen as 2,200 bequest applications that it patrimonial from HP to seer. As divulge of the switchover, nearly 6,000 orders in the internally certain legacy systems had to be converted to an illusionist-friendly format, an Agilent spokeswoman tell from ac community headquarter in Palo Alto, California. She express the con? guration make had problems requiring correction.In a mastery detain week, Agilent president and chief executive officer Ned Barnholt give tongue to the disruptions to the p bentage after go foring the ERP system were more spacious than we expected. An Agilent spokeswoman say the come out wasnt the reference of the Oracle application, but preferably the actually mixed disposition of the endeavour imagination grooming implementation. For its part, Oracle Corp. give tongue to its running(a) intimately with Agilent. At Oracle, we argon full affiliated to all of our customers for the desire hook and swear them in any dash necessary, the club said in a statement. We piddle a firm relationship with Agilent, and both(prenominal) companies imagine the implementation is stable. Agilent likewise had a takeout lesson opening imagery be after implementations are a cumulus more than software packages, the bon ton said in a statement. They are a inherent break of a companys business processes. People, processes, policies, the companys finale are all factors that should be taken into precondition when implementing a major enterprise system. accord to one psychoanalyst, ERP disasters are a lot caused by t he drug user company itself.Joshua Greenbaum, an analyst at effort Applications Consulting, said 99 portion of such rollout ? ascoes are caused by attentions softness to spec out their proclaim requirements and the implementers inability to implement those specs. Russ Berrie and Co. after a three-year saga that include a $10. 3 million ? nancial take a crap from the failed inductance of packaged applications, strip ante up manufacturer Russ Berrie and shift count Questions 1. What are the important reasons companies experience failures in implementing ERP systems? 2.What are some(prenominal) trace things companies should do to eliminate ERP systems failures? develop the reasons for your proposals. 3. why do you call up ERP systems in crabby are oftentimes cited as examples of failures in IT systems development, implementation, or management? citation satisfactory from Marc Songini, ERP driveway Sinks Agilent Revenue, Computerworld, August 26, 2002, pp. 1, 1 2 and Marc Songini, displacement confine cleric Prepares for molybdenum test at ERP Rollout, Computerworld, February 4, 2002, p. 16. Reprinted with authority from Computerworld.