Project sap - grp3 - implementation case study

ERP Implementation Failure Case study

Company Involved– Company A

Motivation behind ERP software implementation

Reason for ERP implementation failure

Recommendations

SCIT Internalhttp://www.ifour-consultancy.com Offshore software development company India

http://www.ifour-consultancy.com/


Company Involved - Company A

Business of the company was principally in healthcare services

http://www.ifour-consultancy.com Offshore software development company India




BUSINESS STRATEGY

Cost Leadership

Differentiation From Others





COMPETITION

Traditional Competitors

40 Major wholesales competed in the market

Manufacturers started direct selling

Self-Warehousing





CUSTOMERS

INDEPENDENT PHARMACIES

INSTITUTIONS

RETAIL CHAINS

ONLINE ORDERS





OTHER REASONS

Make complex supply chain decisions

Based on a supply chain analysis, it was decided that an ERP would offer a perfect solution

Meet the increased cost pressure

Management decided to focus on a business strategy of transferring the company into low cost distributor to increase competitive advantage




Selection of SAP SAP is the largest ERP software vendor

Vast array of modules, with huge spectrum of functionalities

Industry specific solutions with a deep insight.

Highly integrated with other modules




Implementation of SAP Company A contracted with SAP, consulting

company, to implement the R/3 software

Project covered the entire supply chain from warehouses, inventory control to shipping and handling

Implementation cost for SAP was budgeted at US$65m

The ERP system was projected to save Company A – a great amount of money per year





Planning

Poor selection of the Software No consideration of other consultants’ adviceLack of contingency planningNo end user involvement





Implementation

No restructuring of the business process was done

Insufficient testingOver-ambitious project scope





Implementation

Dominance of IT specialists’ personal interest

Poor Management supportLack of end-user cooperation




Recommendations

Planning

Software selectionContingency planStakeholders’ involvement




Recommendations

Implementation

Inclusion of the necessary business process reengineering

Thorough testingRealistic project scope




Recommendations

Implementation

Close monitoring of project statusSeek end user supportPost implementation review




References

Symbiosis students Akshay Mehra Devam Shah Kanchan Chandrayan Sneha Vazirani







Technology

Project sap - grp3 - implementation case study