This article shows the problems Enterprise Systems have given real life companies. It demonstrates 10 Famous ERP disasters, dustups, and disappointments companies have experienced with these products. Here are a few examples from the article that show ERP have cause problems for big companies.
1) Hershey Foods - The culprit in this case was SAP R/3. This enterpise system prevented Hersheys from delivering $100 mil worth of kisses for halloween, and causing a stock drop of 8%.
2) Nike - Nike went through with a $400 mil upgrade in ERP and supply chain systems, creating a super system. Good Idea? If $100 mil in lost sales and a 20% stock dips qualifies as a good idea. The icing on the cake is that Nike had a collection of class action lawsuits also.
3) HP - Wanting to centralized its ERP system into one SAP prjoect. So many problems occurred, which resulted in the project costing $160 mil in order backlogs and lost revenue. This cost was 5x the project estimation.
4) UMASS - An estimated 27,000 Umass students were unable to find classes and pick up financial aid checks due to buggy portals and ERP applications. Though after a few tense weeks everything was restored.
5) Waste Management - Waste Management is in a legal battle with SAP over an 18 month installation of ERP software. WM filed a lawsuit claiming SAP executives took part in fraudulent sales scheme that resulted in massive failure.
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