ENTERPRISE MANAGEMENT

SYSTEM
Assignment 1
Case Study of ERP Implementation Success and Failure Example

Name: Purva B. Sawant

Roll No.: 21106A1050
 Title: ERP Implementation failure at Hewlett Packard (HP)

Abstract:

Hewlett-Packard was founded in 1938 as a manufacturer of electrical equipment and products. In

2004 profits were $4.2 billion and sales were his $80 billion. The company said its revenue fell
by 5% in the third quarter of 2004, due to failure to implement ERP system. Before
introducing the ERP system into the business, the HP company did not effectively
plan and budget for costs and did not appropriately handle staff communication or
training. $160 million is the expected total loss incurred by the company, five times the cost of
implementing the system. In 1993 the decision was made to switch from many of the systems
used to SAP R/3. The company experienced slow order processing, lost customers and increased
spending due to programming issues. 20% of orders failed to make it through the legacy system;
companies often had to send goods by air.

Problem Statement:

Before introducing the ERP system into the business, the HP company did not effectively plan
and budget for costs and did not appropriately handle staff communication or training.

Solution:

Before implementing any software in the organization, the corporation must first plan and
analyze its requirements. Only after that can it create a cost budget.

Additionally, they must effectively interact with the individual and provide them with the
relevant training as needed.

My Findings:

Before implementing the ERP System in the organization, the company did not conduct the
appropriate planning and research. Before updating or upgrading the program, they did not
consider future estimates, which may have resulted in a loss. They fail to address errors when
they are still minor, which could later turn them into major issues.

Conclusion:

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ERP software is continuously changing, so there are new factors to consider all the time.
However, the steps to success remain the same — develop clear goals, set a suitable budget, and
get help. Implementation failure can impact overall business performance.

Reference:

 https://www.researchgate.net/profile/Iris-Panagiota-Efthymiou/publication/
345944185_CASE_STUDY_ON_FAILED_IMPLEMENTATION_OF_ERP_SYSTEMS
/links/5fb2996da6fdcc9ae059c921/CASE-STUDY-ON-FAILED-IMPLEMENTATION-
OF-ERP-SYSTEMS.pdf
 https://www.slideshare.net/GunjanKalita/erp-project-implementation-failure-in-hp

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 Title: ERP Implementation Success at Pantaloons

Abstract:

With the opening of its fashion retail chain, Pantaloons, in Kolkata in 1997, the company made
its debut in the retail sector. The flagship business of Future Group, which pioneered Indian
retail and serves the whole Indian market, is Pantaloon Retail. The organization has been
successful in bringing together a broad and devoted community of Indian shoppers, sellers, and
enterprises through a variety of retail formats. Every year, almost 300 million people enter retail
establishments and select goods and services from over 30, 000 small-, medium-, and large-scale
manufacturers and entrepreneurs from all across India. More than eight years after entering the
retail industry, Pantaloon Retail concluded that it required an IT solution to help integrate its
operations and keep them competitive in the country's fast-expanding retail market. Pantaloon
needed a trustworthy enterprise-wide application immediately to help manage its operations as it
frequently opened new stores in major cities. Mr. Deshpande quickly assessed the issue after
becoming Pantaloon's CIO in May 2004. He observed that the various units were employing
various systems. He started working on two projects: first, hiring individuals with a project- and
business-focused approach; and second, abandoning the application development projects with
regional vendors that were the root of the disjointed systems. He organized the team to assess the
top-tier ERP systems and select SAP for the company to use.

Problem Statement:

Pantaloons wants to improve the financial tracking and reporting for all retail locations while
also meeting their basic demands by providing an enterprise-wide platform and transaction
management system.

Solution:

Pantaloon's management decided on SAP's retail solution after carefully comparing it to all other
options and software vendors, most of which met Pantaloon's requirements

Among the benefits of SAP retail solutions are their support for product development, which
entails ideation, trend analysis, and collaboration with supply chain partners; sourcing and
procurement, which entails working with manufacturers to fulfil orders in accordance with

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strategic merchandising plans and optimize cost, quality, and speed-variables that must be
weighted differently as business needs, buying plans, and market demand patterns change;
managing the supply chain; and, finally, management of the supply chain.

My Findings:

Pantaloons understand the competition and future enhancement of the business and take wise
decisions at the appropriate time to implement the ERP system in the business. Before
implementing the ERP, they do the proper planning and analysis of the different software to
know the future benefits and ease of the software.

Conclusion:

By deploying the computing power provided by the Information System in an integrated and
consistent manner, the ERP system at Pantaloon greatly simplified the management of business
operations.

Pantaloons may make quicker and better management decisions due to the ERP Information
system's rapid information delivery.

The advantages of implementing ERP in business help a firm become more profitable and
competitive while enhancing productivity, teamwork, and communication.

Reference:

 https://www.sdmimd.ac.in/SDMRCMS/cases/CIM2013/4.pdf
 https://pdfslide.tips/documents/presentation-on-implementation-of-erp-in-
pantaloons.html?page=13