Erp at Hp

Subject Managing The Value Chain Name ALOK KUMAR GUPTA Enrollment No. 6010091106380 ERP effectuation FAILURE AT HP (ITYS045) a. Analyze the limitation of IT excogitate vigilance. dissertate the importance of condescension chance plans for enterprise projects. Justify your answer winning the ex amperele of HP b. date the carrying into action of the ERP migration mishap considering HPs role as a third party implementer of SAPs supply chain solutions. Can HP use this ERP execution of instrument disappointment to its strategic advantage? Why / why non?Give lawsuit for your answer HP announced that their revenue has gone cumulus by 5% to $3. 4bn for the 3rd quarter ended July 2004. The reason proposed was due to the line faced during the migration to the centralized ERP organisation. The total financial impact due to the failure was $160mn Project management is a term including scheduling, cost control and compute management, resource allocation, collaboration softwargon , communication, quality management and documentation of administration systems, which are used to deal with the complexity of large projects.Limitation of IT project management It requires straightlaced fostering and knowledge ab bug out the project With iodine backbone, failure would be service Difficulty in finding our course of studyming errors and their rectification For winning writ of execution of IT projects management, defining the requirement developing a plan, and implementing it with technology is a difficult caper Creating a cross-functional team is a difficult task A contingency plan is a plan devised for a proper(postnominal) situation when things ould go wrong. Contingency plans are often devised by business who wants to be prepared for anything that could happen as Back-up plans worst-case scenario plans Scrap situation or Plan B Contingency plans include proper(postnominal) strategies and actions to deal with specific variances to assumptions resulting in a particular problem, emergency or state of affairs. They too include a monitoring process and triggers for initiating planned actions.They are needed to help g overnments, business or individuals to recover from serious incidents in the borderline time with minimum cost and disruption. Technical glitches were small but contingencies mean were non addressed appropriately on SAP R/3 Implementation. Original Objectives were Shorter lead & delivery time, Cost saving and international Distribution system In 1993, HPs BCMO unit began with the implementation with several modules like MM, PP, FI, CO. FI & CO modules were implementation on spherical basis & SD implemented as part of pilot project.By 1998, major(ip) migration to SAP R/3 completed. Major benefit are (i) garnish huge cost incurred on IT support, (ii) all programs run on single browser, (iii) Eliminate need to create custom SAP interface, (iv) Greater amphetamine in implementation and (v) With an option of qu ery which would fuddle it easier to use. Questions were raised on failure of HP implementing ERP, as it was a consultant for SAP ERP implementation. HPs responsibility as a consultant was to prevent the public presentation problems faced by the implementation Co. n which it itself failed While conducting an internal serve, HP revealed that there has been execution problem and not the fault of SAP ERP Migration blow There are several reasons for failure but the most touristy one is project management. To justify this argument a study by Sweat (1998) revealed that despite project omnibuss knowing the importance of considering critical winner factors in ERP implementations, 75% of the implementations were regarded as failure by the organizations themselves. This is purely because roject managers sacrifice least importance to these critical success factors during the implementation of an ERP package. Being an ERP project manager is very challenging and literature shows us there mother been many cases where things have gone wrong because of incorrect approach. According to Scott (1999) FoxMeyer was the quarter largest drugs distributor in the United States with a turnover of $5. 5 one thousand thousand dollars, in 1996 FoxMeyer claimed bankruptcy and in 1998 sued the ERP vendor for causing its bankruptcy.The problem with them was they did not adopt many of the critical success factors required in the implementation of an ERP project. The following are causes of the migration failure Project team constitution get out integration problem Demand forecasting problems Poor planning & improper interrogatory Inadequate implementation support / training Analysts commented that the HPs culture did not support the much active exponentiation of employees as well as confederacy ignored valu adequate to(p) suggestion from employees.Company staff had warned HP but it was not possible for it to continue with the tradition system and also suggested for a back-up system but confederation turned deaf ears over that many Vice-president had joined the rival Company and also many employees had a fear of been laid off. Learning from Failure Implementation failure raise impact overall business performance there is no standardised approach to implement ERP, many times it involves a business veer in many departments. Therefore otherwise it might miss out the objectives.The success of implementation depends upon the planning, which considers the business process along with the technical aspects. The capability drop benefits to the supply chain are much bigger than the IT costs and the potential risk to the supply chain is also much bigger. The success of ERP implementation also depends upon the ability to align IT along with the business management objectives, program management skills and a well defined process. There should be a manual back-up as a contingency plan and There should be no cross-functional barriers and should create effective p rocesses and teams creative team.HR issues in ERP migration failure at HP Inadequate training time to develop ones skill in the new system, Refresher training was of no use because of Backlogs, Active appointment of employees was not allowed in the company, Valu equal to(p) suggestions from the employees was ignored, Distrust of upper management. This ignorance created dissatisfaction among employees Upper management perceived to be overpaid inefficient Culture divide within the company Non Co-operation within IT team & business team. These all led to soaring Attrition Work culture differences between HP & Compaq tether to incompatibility between departments.Dealing with the issue Encourage employees to participate and take their suggestions seriously, make them feel to be valuable assets, an equal merge of culture and complete cultural differences, Co-operative between front end & back end, much time imparted to training programs & motivates them to learn more. Con clusion Am employee is a valuable Assets & A satisfied employee is a productive employee Examine the implementation of the ERP migration failure considering HPs role as a consultant for SAPs supply chain implementations. Can HP use this ERP implementation failure to its strategic advantages?Why / why not? Implementations are as follows About 20% of the orders failure failed to move from the legacy system to the new one due to programming errors. HP was able to fix this within a month but orders began to backlog. Backlogs counted to us $ 160mn. Revenues down by 5% Analysts raised credibility of HP as a consultant for SAP. The company had to direct orders through flight to speed up order fulfillment Hence added expenses. Customers were unhappy and there were continuous complaints active delayed processing, configuration and duplicated orders. Hence HP could not prove itself in this fieldERP implementation failure-strategic advantage If HP blamed all the failure at SAP then HP wou ld loose its edge over IBM. The companys corporate strategic policy was based on the adjustive enterprise concept and its rival IBM concept was based on On-demand calculate The adaptive enterprise from HP is designed to assist organization with their RTI to agree the processes between the core business and IT operations Constant retooling of the corporate infra-structure to play off the demands of a dynamic enterprise has led to the evaluation of real-time infrastructure.Developed contingency plans to devise solutions for upcoming problems. Hence development of contingencies plans for ERP project is a must To prevent the reoccurrence of such a failure, there was a need to incorporate business and technology. Customers Company should remove barriers to create effective and cross-functional processes and teams that were truly integrated. amplification dependency between among teams i. e. front end and back end. Approach should be afresh and should not try to map with previous i mplementation.Well planned, appropriate training and better employment Implement with technology integration. Improve the planning and the testing More effort and better forecasting needed. Remarks Having discussed failures and implications, we have also looked at the benefits ERP loafer bring and that is the reason organizations still prefer to adopt an ERP system but there is a problem. As we have reviewed the literature, it is evident that there is still a gap in successful ERP implementations.The gap primarily stands from the perspective of project management and in particular from the project managers perspective. This review has produced the main research question that requires an answer How can we implement ERP successfully The answer to this question depends on what research methodological outline we adopt in order to produce our primary and secondary analysis so that we can carry out an assessment of our findings to be able to answer this question from theory and practice .