Professional Documents
Culture Documents
At HP
Submitted to:
Submitted by:
Prof. D.N VERMA
Deepak kr. Gupta
Nisha Prasad
INTRODUCTION
• HP announced that its revenues has gone
down by 5% to $3.4bn for the 3rd quarter
ended July 2004.
• The reason proposed was due to the
problem faced during the migration to
the centralized ERP system
• The total financial impact due to the
failure was $160mn.
•
Conti…
• Questions were raised on failure of HP
implementing ERP, as it was a consultant
for SAP ERP implementation.
• HP’s responsibility as a consultant was to
prevent the execution problems faced by
the implementing Co. on which it itself
failed.
• While conducting an internal serve, HP
revealed that there has been execution
problem and not the fault of SAP.
• Technical glitches were small but
contingencies planning wasn't addressed
appropriately.
•
SAP R/3 Implementation
• Objectives:
1) Shorter lead & delivery
time
2) Cost Saving
3) Global Distribution System
• In 1993, HP’s BCMO unit began with the
implementation with several modules
like- MM, PP, FI, CO.
• FI & CO modules were implemented on
global basis & SD was implemented as
part of pilot project.
• By 1998, major migration to SAP R/3 was
• BENEFITS OF MySAP:
o Reduce huge cost incurred on IT
support
o All programs will run on single
browser
o Eliminate need to create custom SAP
interface
o Greater speed in implementation
“A Satisfied Employee is a
Productive Employee”
Qs. 3. Examine the
implications of the ERP
migration failure considering
HP’s role as a consultant for
SAP’s supply chain
implementations.
Can HP use this ERP
implementation failure to its
strategic advantage?
Why/why not? Give reasons
Implications are as
follows:
• About 20% of the orders failed to
move from the legacy system to
the new one due to programming
errors.
• HP was able to fix this within a month
but orders began to backlog.
• Backlogs counted to US$ 160 mn.
Revenues down by 5%.
• Analysts raised credibility of HP as a
consultant for SAP.
•
• The company had to direct orders
through distributers and other
orders through flight to speed up
order fulfillment.
• Hence added expenses.
• Customers were unhappy and there
were continuous complaints about
delayed processing, configuration
and duplicated orders.
• Hence HP could not prove itself in
this field.
ERP implementation
failure-strategic advantage
• If HP blamed all the of the failure at SAP
then HP would loose its edge over
IBM.
• The company’s corporate strategic
policy was based on the “Adaptive
Enterprise Concept” and its rival IBM
concept was based on “On-Demand
Computing”
• The Adaptive Enterprise from HP is
designed to assist organizations with
their RTI to harmonize the processes
between the core business and IT
Limitation of IT Project management
difficult task
• A Contingency plan is a plan
devised for a specific situation
when things could go wrong.
Contingency plans are often
devised by businesses who want to
be prepared for anything that could
happen. They are sometimes
known as "Back-up plans", "Worst-
case scenario plans", "Scrap
Stituation" or "Plan B" .
• Contingency plans include specific
strategies and actions to deal with
specific variances to assumptions
resulting in a particular problem,
emergency or state of affairs. They also
include a monitoring process and
“triggers” for initiating planned actions.
They are required to help governments,
businesses or individuals to recover from
serious incidents in the minimum time
with minimum cost and disruption.
Thank you!
Questions??????