Essay about Failure And Success Of Erp Implementations

1397 Words Apr 24th, 2016 6 Pages
Cases of Failure and Success of ERP Implementations
By definition, ERP stands for Enterprise Resource planning- a concept that began to be adopted in the early 90’s as companies attempted to attain seamless management by integration and information sharing between their functions. This creates an efficiency that is difficult to attain using the tradition setup of having independent information management systems in every department (such as CRMs and MRPs). For a business to run successfully, finance, sales, marketing, human resource, inventory among other functions all need to run in tandem like a well-oiled machine. This means that although each business function has its own targets, their collated efforts must ultimately contribute towards the overall success of the business. Some businesses are able to implement the ERPs successfully while others fail at the same.

The first example of a failed ER implementation can be seen in the case of Sunshine Mills Inc. – a family-owned premium pet food maker who contracted Ross Systems (a subsidiary of Chinadotcom Corporation) to implement an ERP for the company. They hoped that the ERP would streamline its business processes and activities so that they would hire fewer employees. Once the system went live, the Pet Food Maker started experiencing problems right away, because there was no synchronization of business activities. Rose systems is reported to have divulged to the client that the ERP was a beta version. This meant that…

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