FORD–ORACLE IT PROJECT FAILURE

(2004)

GROUP E – 7
ADVAIT GOMKALE | AKANKSHA SINHA | MANISHA PAHADIYA
SHANKHADIP MAJUMDER | SARTHAK MEHRA | VAIBHAV SURANAA

Time consuming (nicknamed “neverest” by suppliers) 2. 4.Project Everest  Intended to facilitate increase of information between Ford and suppliers  Idea was to integrate about 30 portals used by different ford units into a single portal What eventually happened 1. Difficult to operate (Suppliers had to navigate through multiple screens for pretty simple functions) 3. . The planned global rollout never made it past North America. The then chief announced that the company would switch back to the old system. but wont make a formal announcement about it.

What was different about Everest ?  The things expected out of the information system were  Operational efficiency  Expense control in production and manufacturing  Timely and accurate information  Better visibility of inventory  Global reach of the ford products .

The data was not present even after following these steps. there was no incentive for suppliers to shift to the new system. the suppliers who shifted to the new system had to go back to the old system. and then through five screens. the final expenditure by Ford is estimated to be 400 million USD by various reports.  Not user-friendly: The final users were the suppliers. Further. as lot of functionality was missing. These suppliers had to enter through the old web interface.Factors that led to system failure  Rising Costs: Costs kept escalating as implementation progressed. Starting with 200 million USD. . Having the new and old systems run in parallel.

 Choice of oracle as a partner: Oracle has been criticized for integration problems and with this project involving multiple teams. various components of the project like security. The analysts saw this as an unattainable goal.Factors that led to system failure  Integration challenges: Due to lack of perfect communication and teamwork. integration was a major factor for successful implementation of the project. standardize processes & methodology in all production plants and rationalize Ford’s supplier network. app servers and customer relationship management systems did not integrate seamlessly with each other.  Unrealistic Goals: The project aimed at integrating various legacy based procurement systems. .

Recommendations  Proper planning of the project  End-user should have been kept in mind  Greater integration between teams from Ford and Oracle.  Phase wise implementation  Incentivize the end-user to use the new software .