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  • ERP Implementation Failure at HP ERP Implementation Failure at HP

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    Amana Pat
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    HP implemented multiple ERP systems over the 1990s and 2000s in an attempt to streamline operations, reduce costs, and integrate systems following their merger with Compaq, but faced major issues including poor planning, testing, and training which led to data integration problems and inaccurate demand forecasting that undermined the goals of the implementations. While some benefits were achieved like e-commerce capabilities and optimized resource management, the failures exposed weaknesses in HP's organization and implementation processes.

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    HP implemented multiple ERP systems over the 1990s and 2000s in an attempt to streamline operations, reduce costs, and integrate systems following their merger with Compaq, but faced major issues including poor planning, testing, and training which led to data integration problems and inaccurate demand forecasting that undermined the goals of the implementations. While some benefits were achieved like e-commerce capabilities and optimized resource management, the failures exposed weaknesses in HP's organization and implementation processes.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    161 views9 pages

    ERP Implementation Failure at HP ERP Implementation Failure at HP

    Uploaded by

    Amana Pat
    HP implemented multiple ERP systems over the 1990s and 2000s in an attempt to streamline operations, reduce costs, and integrate systems following their merger with Compaq, but faced major issues including poor planning, testing, and training which led to data integration problems and inaccurate demand forecasting that undermined the goals of the implementations. While some benefits were achieved like e-commerce capabilities and optimized resource management, the failures exposed weaknesses in HP's organization and implementation processes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 9

    ERP Implementation Failure at HP

    ERP Implementation Failure at HP

    …..LOGO
    About the HP case
    About the HP case
    About Hewlett Packard
    About Hewlett‐Packard
    • Founded in 1938 by Bill Hewlett and David Packard ‐
    as an electronic instructments company
    • The customers were engineers and scientists
    • HP launched its first minicomputers in 1974
    HP launched its first minicomputers in 1974
    • First Personal Computer in 1981
    • HP was the second largest computer manufacturer in 
    HP as the second largest comp ter man fact rer in
    2001
    What did HP try to achieve by 
    implementing an ERP system?

    The 90’s: SAP R/3
    • Shorter lead and delivery time
    • A global distribution system
    A global distribution system
    • Cost savings
    What did HP try to achieve by 
    implementing an ERP system?
    The 00’s: MySAP
    • Handle complex
    Handle complex orders
    • Faster shipping and operational efficiency
    • Reduce IT costs
    IT costs
    • Increased transparency
    • Improve forecasting
    • Embrace new business models fast
    • Reduce complex infrastructure
    • Unite HP and Compaq systems
    What were the implementation issues
    related to the ERP implementation?

    • Project Team Constitution
    j
    • Data Integration Problems
    • Demand Forecasting Problems
    Demand Forecasting Problems
    • Poor Planning and Improper Testing
    • Inadequate Implementation Support/Training
    Were there any benefits obtained by 
    implementing the ERP system?
    • EE‐commercecapabilities
    bili i for sellingcustomized
    f lli i d B2C 
    B2C
    products (1998)
    • Faster forecasting
    F t f ti
    • Improvedforecastingaccuracy
    • Maximumavailabilitycombinedwith
    l bl b d h minimum 
    stocklevels
    • Bettercustomerrequirementsplanning
    B tt t i t l i
    • Optimizedresource management
    • Betterresponse to requirements of localmarkets
    • Weaknesses in organisation exposed (lessonlearned?)
    How could HP prevent some of the implementation 
    issues from repeating themselves when implementing 
    the ERP system for their PC business division?

    What is a good ERP‐implementation procedure?

    • Defining the requirements
    • Developing a plan
    • p gy
    Implementation of technology
    • Usertraining
    Final comments
    Final comments

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