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ERP & BPR-SUCCESS &

FAILURE STORIES

Submitted To- Submitted By-
Prof. Gunmala Suri Renuka Negi
UBS,PU MBA GEN
Operations

WHIRLPOOL CASE- ERP
IMPLEMENTATION

Fettig . Michigan. United States. near Benton Harbor.  Founder: Frederick and Louis Upton  CEO: Jeff M. About the Company  The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances.  Headquartered in Benton Charter Township. Michigan.

Case  It is about the change in the pricing strategy of whirlpool in lieu of the introduction of new model by LG to target the rural market. .  New pricing system helped the company to increase the effectiveness of overall operations and also bring down the costs.

Contd.The sensitive information is produced and sent to the concerned departments through mail and online transfers.Integration of data from all the departments of the company.  Administration.  Implementation of the ERP in the company helped making the entire chain of company integrated and online.  Manipulation of sensitive information. .

 Database marketing.  Cultural development and communication. . Contd.By seeing the customer buying pattern and looking at their demographics and psychographics company can produce products according to their needs.It helps in communicating change in a single department to the whole organization.

Contd.  Streamlining of business processes. .Any change in business processes or any involvement can be communicated to all the employees and the personnel connected with it.

SWOT Analysis Strengths Weakness •Strong brand presence •Concentration in one •Reputation and core category competencies •Less area coverage Opportunity Threats •Diversification •Cheap substitutes •Market presence •Economic factors .

ERP IMPLEMENTATION .LG.

South Korea  Parent organization: LG Corp .About the company  LG Electronics Inc. Seoul.  LG Electronics (LG) . Seoul. more than 82.000 employees across 40 countries. and is part of the LG Group. is a South Korean multinational electronics company headquartered in Yeouido-dong. South Korea.having 114 subsidiaries.  Founder: Koo In-Hwoi  Founded: October 1958.

limited outlook. no room for information or best practices sharing  Limited localized resources for employee learning & training  Challenges with decision making.The challenges for LG  Location specific multiple systems leading to unclear top-level reporting. with significant business impact . lack of optimum resource utilization  Location specific processes lacking transparency and automation needs for a global reporting  Disengaged employees.

 LG hired Oracle Consulting to build a single centralized system which integrates available Oracle HR modules for uniform use at global level.  It offered large data hosting. thereby replacing location specific system dependency.Adopted solution  LG’s familiarity with Oracle technology due to earlier Oracle usage made it easier to finalize a solution. seamless migration of old data. . multiple modules addition as needed and centralized access and control. easy scalability.

engaging and rewarding performance based on the right competencies and proven performance  Real time reporting for higher management and tracking of set goals and objectives  Informed decision making due to readily available real time reports  .Achieved benefits  Centrally managed a single system with minimal maintenance costs  Transparency in the recruitment and employee appraisal processes which enabled hiring.

with region level flexibility to implement localized changes  Efficiency improvement for HR functions and processes  Cost savings due to not having to maintain multiple systems  Easy sharing of best practices across the various centers  Easy access self-service function made available for employee self-help  .  Centralized control over HR processes.Contd.

 Easy learning facilitated for common tasks through document sharing and online tutorials.Contd. productivity and engagement . resulting in time and cost savings  Increased employee morale.

NIKE’S-ERP IMPLEMENTATION .

United States(Near Beaverton. and worldwide marketing and sales of footwear. manufacturing. development. Oregon. Oregon)  Area served-Worldwide . Phil Knight  Headquarters-Washington County.About the company  Nike is an American multinational corporation that is engaged in the design. accessories. 1964. apparel. equipment.  Founded-January 25. and services. 53 years ago  Founder-Bill Bowerman.

 Nike’s profit dropped by 50% from US$ 798 million to US$ 399 million. .NIKE’S SUPPLY CHAIN  In 1975.  Implement its ERP.  Launched NSC Project. Nike’s global operations were broadly divided into 5 geographic regions. & CRM Software onto a single SAP Platform.  Initiative of “Shelley Dewey”.  Supply Chain Management was inadequate. Supply Chain.  1998. Vice President of Supply Chain and Steele. Nike introduced Future Program.

 Cost of this project was US $40 million.  To reduce the amount of raw material.i2’s Software Implementation  First part of supply chain strategy.  To match supply with demand.  Used it as a legacy system rather than as apart of SAP ERP project .

 Trying to forecast too far out ahead.  Customization.  Inadequate information.  Inexperience of i2.  Complication of NSC project.REASONS FOR i2’S SOFTWARE FAILURE  Third party integrator.  Pilot test  Problems in smooth integration.  Review meetings .  Changing market conditions.

HP.ERP FAILURE STORY .

United States  Founded: 1 January 1939. United States  Founders: David Packard.About the company  The Hewlett-Packard Company or shortened to Hewlett-Packard was an American multinational information technology company  CEO: Dion Weisler  Headquarters: Palo Alto. William Redington Hewlett . California. Palo Alto. California.

 Gilles Bouchard became the CIO and Executive Vice- president (EVP) of global operations at HP. the result of the migration had decreased revenues.  HP started their migration of data with SAP into mySAP ERP. .  SAP had already roll out the application 4 times and this roll out was number 5.ERP Implementation  HP implemented mySAP ERP.  After two months. He was made responsible for both the supply chain and ERP software implementations.

which was not addresses properly.Reasons for failure  HP revealed that there was execution problem and there was no fault of SAP in it.  The other issues were like:  Data Integration Issues  Demand Forecasting Problems  Poor planning & Improper Testing .  There were small technical glitches but the main issue was contingency planning.

MAHINDRA & MAHINDRA- BPR SUCCESS STORY .

Maharashtra.  Industry-Automotive  Founded-1945. 72 years ago (Ludhiana)  Headquarters-Mumbai.About the company  Mahindra and Mahindra Limited is an Indian multinational car manufacturing corporation  It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. India  Parent-Mahindra Group .

militantly organized Unions  Corruption was widespread.  Unhealthy work culture.Why BPR was needed?  Manufacturing Inefficiencies  Poor productivity  Long production cycle  Sub-optimal output.  Management lenient & often crumbled under pressure .

 Cultural resistance had been effectively tackled.  Sustained top management commitment and leadership.  Formation of exclusive core team.Factors for success of BPR  Barriers were identified correctly.  Personal involvement of CEO. .