Disastrous ERP Implementations and Nightmares

New software implementation is a huge step for many software companies and it is not a step to be taken lightly. Inadequate preparation and incompatible systems can prove to have disastrous consequences which can be extremely costly for companies. ERP Software implementations is a complex process that should not be taken lightly. Without the proper preparation and research, significant problems can occur. Here are some notable examples of ERP Software implementations gone wrong.

Problems with ERP software can have drastic consequences, even with Fortune 500 companies. Hersheys Foods inability to properly use its supply chain software prevented critical deliveries from being made during the Halloween of 1999. This did not sit well with investors and Wall Street as the stock price fell dramatically on this bad news.

Implementation problems can also be costly for large companies. Although HP had done a lot of research into potential problems with its ERP Software rollout, they failed to account for a combination of their problems to all occur simultaneously. Servers were not able to keep up with the customer demand as a backlog of orders built up. The inability for HP to meet customer demands in a timely fashion hurt customer loyalty and may have cost them a number of customers. This resulted from a number of smaller problems associated with its software that eventually grew into larger problems that significantly hampered operations.

Miscommunication between customers and ERP Software providers can also be a source of larger problems. Waste Management, a garbage disposal giant, had an agreement with SAP to install its ERP Software. However, after months of inefficiency and a failure to implement the ERP system, Waste Management filed a lawsuit against SAP for a flawed system that resulted in a failed implementation. Accusations were thrown around and money was wasted on costly legal fees resulting in wasteful spending and wasted time for both companies.

ERP Software is a critical component of many businesses. Although some may underestimate the importance and significance of ERP software, the examples shown above display the problems that can arise from simple problems within your business software. For even more stories on catastrophic ERP failures, read the article found here.

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