ERP Implementation Failure at HP
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : ITSY045
Case Length : 16 Pages
Period : 1998 - 2005
Pub Date : 2005
Teaching Note :Not Available
Organization : Hewlett Packard, HP
Industry : Information Technology, Hardware
Countries : United States
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
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Stanford engineers Bill Hewlett and David Packard started HP
in California in 1938 as an electronic instruments company. Its first product
was a resistance-capacity audio oscillator, an electronic instrument used to
test sound equipment...
The ERP Implementation
HP's products were known for excellent quality and reasonable
prices. HP had a highly decentralized organizational structure and every
business unit independently designed, marketed and manufactured its own
products...
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ERP Migration Failure
In December 2003, Gilles Bouchard (Bouchard) became the CIO and Executive Vice-president (EVP) of global operations at HP. He was made responsible for both the supply chain and ERP software implementations...
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The Impact
The ISS division's order system became unstable due to problems with data integrity and a simultaneous increase in demand for HP's Standard Servers. This technical glitch led to improper routing of orders and caused backlogs to escalate till the end of August 2004...
The Learning
Analysts commented that ERP implementation failure at HP was a demonstration of how such failure could impact overall business performance. HP had spent huge amounts of money in speeding up delayed orders...
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Exhibits
Exhibit I: HP - The Adaptive Enterprise Concept
Exhibit II: HP Segment Description
Exhibit III: HP's Segmentwise Revenues and Profits
Exhibit IV: Hp's Product Leadership Position (2004)
Exhibit V: Benefits of Mysap SCM Implementation at HP
Exhibit VI: HP and SAP SCM Collaboration
Exhibit VII: Top 10 Erp Project Management Issues
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