MC JECSTER A GIPALA

BSIT 3B
SIA 101 – System Integration and Architecture
Prelim Project
Case on Point
Refer to the Hershey case (in the Engage part of the module) for questions 1 - 3 and answer the
following questions.
1. What were the goals and details of the Enterprise 21 project?
Ans: The Enterprise 21 project, an integrated system that used client-server architecture and a
SAP/R application suite, was approved with the aim of not only fixing the Y2K problem but also
for the advancement of Hershey's IT environment to a twenty-first century system, as what was
presented from the Hershey case discussed above. At that time, the current Information
Systems (IS) were replaced with packaged software solutions with the following specific
objectives: create a single company-wide supply chain strategy across all divisions; streamline
the entire business process by reengineering all the functional areas throughout the company;
use new supply chain efficiencies to help increase gross margin; maintain sales growth of at
least 3-4 percent per year; save $75-80 million by the end of 2002 through the use of packaged
software solutions.
2. What were some of the key problems that Hershey encountered when choosing, integrating,
and implementing their new ERP system?
Ans: Because the highest management level lacked the essential personnel, decisions about
the project's implementation strategy were not clearly established. Before employing George
Davis, it was said that Hershey had any senior IT executives, which contributed to the
company's downfall. The first implementation was being strained by numerous issues. Hershey
first tried to make too many adjustments quickly. Given the difficulty of integrating the three, the
project completely replaced the older mainframe legacy system used at Hershey with new
software applications, including the SAP/R3 enterprise application suite, Manugistics (demand
planning and transportation) Systems, and Siebel Systems (CRM and sales tools). Data entry in
the new ERP system added another layer of complexity. Employees at Hershey were
unprepared for SAP's strict data input requirements. Last but not least, the absence of senior
management backing
 3. What difficult lessons did Hershey learn from this entire process? Did Hershey ultimately achieve
its original goals by implementing this new ERP system?
Ans: Hershey learned that before implementing projects, especially those that involve their
system, the necessary top management group and all other employees should
have the background knowledge and the required skills, and competent enough for them to
have full control on the implementation process. This is where the importance of a
well-established implementation plan and support group is realized. Regarding on whether
Hershey achieved its goals with the implementation of the new ERP system, with the claims of
the first statement of this case, I suppose they did achieve their goals later. Although, the
company experienced $150million of lost sales due to problems associated with its
new ERP system, Hershey still completed the upgrade to their SAP/R3 enterprise software
installation on schedule which was already a big achievement for the company

4. Provide examples of ERP components in an organization that you know of or where you are
working. Provide examples of the hardware, software, people, processes, and databases.
Ans; ERP components are consists of hardware, software, information, process and people.

I work in procurement and we use an ERP system called SAP R/3. To be able to use and
access this system, we require a PC and the SAP R/3 software which is installed in a server.
We follow and adhere to our procurement policy when are processing and raising requisitions
as requested by our internal clients.

Besides SAP R/3, my team uses an access database where we keep electronic copies of all the
documentation used to raise requisitions.

5. If you had a choice between customizing an ERP application to meet the organization processes
and modifying organization processes to meet the ERP functionality, which would you choose?
Explain.
Ans: It's possible that you bought the ERP because you liked some of its modules but didn't like
how some of them worked. There is no ERP that will be perfect in every module. You should
think about modifying your procedure because ERPs likely employ much more systems experts
and business analysts than your company does. However, their solutions won't necessarily be
the ideal for your company because they'll be "generic." Once you change a module, it will cost
a lot to take an update, which will tempt you to miss releases. You could be less hesitant to
make updates that can be easily updated into the new version because they are isolatable.

6. Where are ERP systems heading in the future? Do you agree or disagree with the trends
discussed in the chapter? Explain.
Ans: ERP systems is heading its functionality to the Internet and e-Business as well as
becoming an open-source software (OSS) and service-oriented architectures (SOAs).

I agree with the trends discussed in the chapter. Almost everything to do with businesses are
now becoming online or on the Internet. With the availability of technology, I believe that it is
the way to go. You need to ‘go with the flow’ as they say to be able to stay in business. I
studied Digital Marketing last semester and the use of Internet is a positive move. It allows
everyone to collaborate internally and externally

7. Why is it necessary for the project triangle to be balanced at all times for project success?
Discuss the implications of an unbalanced project triangle.
Ans: The project triangle is consist of organisations resources, time and scope. Any changes to
one of these, either big or small, will affect the rest.

The implications of an unbalance project triangle are project not being completed on time, going
over the budget and getting out of the original scope. In some organisation, this will be a huge
cost and waste of time.