1. 3 effects of ERP failure based on the case above :
- Failed information technology implementations have created serious financial problems for a
member of corporations.
- Hersyey Food Corporation, for example issued a major profits warning because of massive
distribution problems following the flawed implementation of an ERP system.
- Many stores lacking Hersyey ERP imlplementation.
- Whirlpool Corporation had similar problems due to a problematic ERP implementation.
- Problems with an ERP implementation at the pharmaceutical distributor FoxMeyer caused the
company to announce US 500 million lawshit against SAP and Andersen Consulting (now
Accenture).
- British organizations, including the BBC and Newcastle University also experienced major
ERP implementation problems.
2. 4 factors that organization should access in choosing ERP vendor :
There are four factors that an organization should assess when choosing ERP vendor. First factor is establish an internal project team comprised of IT leaders and process or functional owners from different areas to review potential vendors. Most software companies offer a wide variety of solutions but typically specialize in four to five vertical markets. To find out which companies have the best track records in your industry and functional areas, do market research. Second factor is study IT industry analyst reports. They will tell you which software products are best-of-breed and which vendors are committed to your industry. Both publications and analyst reports will keep you up to date on general trends and developments in the industry. Third factor is develop pointed questions that address any key concerns or unique needs.For example, do you need a payroll module? Do you use encumbrance accounting? Not every vendor offers these capabilities. The fourth factor is evaluate each vendor’s financial stability, including its available cash, its ability to continue product investments, its outstanding obligations, payment history (by looking at Dun & Bradstreet reports), and company profile and credit ratings. For public companies, financial data is accessible from financial Web sites and public filings like 10Ks and 10Qs. Review the company’s balance sheet, profitability, market share, market capitalization, and analyst opinions. For private companies, limited information may be available.
