ERP Implementation Failure at HP (Page 2)

Abstract

The case gives a detailed account of the failure of an ERP migration project at the US-based HP, a leading computer hardware and information technology company. The case traces the history of ERP implementations at HP and presents the rationale behind the decision to migrate to a centralized ERP system. It details the circumstances that led to the ERP migration failure and also examines the damage control efforts made by the company. The case highlights the barriers to successful ERP migrations including project management issues, poor contingency planning and cultural issues. Finally, the case explores whether there are chances of re-occurrence of such failures within the company.


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BACKGROUND NOTE contd...

During the 1950s, HP developed strong technological capabilities in the rapidly evolving electronics business. In 1951, HP invented the high-speed frequency counter, which significantly reduced the time required to measure high frequencies. The company came out with its first public issue in 1957.

HP entered the medical equipments industry in 1961 through its acquisition of Sanborn Company. In 1966, the company established HP Laboratories, to conduct research activities relating to new technologies and products. During the same year, HP designed its first computer for controlling some of its test-and-measurement instruments. During the 1970s, HP continued its tradition of innovation. In 1974, HP launched its first minicomputer that was based on 4K dynamic random access semiconductors (DRAMs) instead of magnetic cores.

In 1977, John Young was named HP president, marking a transition from the era of the founders to a new generation of professional managers.

In the 1980s, HP emerged as a major player in the computer industry, offering a full range of computers from desktop machines to powerful minicomputers. This decade also saw the development of successful products like the Inkjet and LaserJet printers. HP introduced its first personal computer (PC) in 1981, followed by an electronic mail system in 1982. This was the first major wide-area commercial network that was based on a minicomputer. HP also introduced its HP 9000 computer with a 32-bit super chip. HP became a leader in workstations with the purchase of market leader, Apollo Computers, in 1989. ....


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THE ERP IMPLEMENTATION

SAP R/3 IMPLEMENTATION

TABLE I - R/3 INSTALLATION AT HP (BCMO)

IMPLEMENTATION OF MySAP

ERP MIGRATION FAILURE

THE IMPACT

THE LEARNING

TABLE II - BUSINESS CONTINGENCY PLANNING

EXHIBIT I - HP - THE ADAPTIVE ENTERPRISE CONCEPT

EXHIBIT II - HP SEGMENT DESCRIPTION

EXHIBIT III - HP'S SEGMENTWISE REVENUES AND PROFITS

EXHIBIT IV - HP'S PRODUCT LEADERSHIP POSITION (2004)

EXHIBIT V - BENEFITS OF MySAP SCM IMPLEMENTATION AT HP

EXHIBIT VI - HP AND SAP SCM COLLABORATION

EXHIBIT VII - TOP 10 ERP PROJECT MANAGEMENT ISSUES

ADDITIONAL READINGS AND REFERENCES

        Case Code   ITSY045
   Case Length    
16 Pages
              Period    1998 - 2005
 Organization    
Hewlett Packard, HP
        Pub Date     2005
Teaching Note    Not Available
     
Countries    united States
      
Industry    Information Technology, Hardware

Issues

Understand the rationale for implementing ERP software.

Study and analyze the problems faced in an ERP migration project.

Examine the reasons for ERP rollout failures.

Analyze the role of cultural issues in ERP implementation.

Critically examine the strategic impact of ERP implementation failures.

Keywords

Hewlett-Packard Enterprise Resource Planning ERP Migration Failure Adaptive Enterprise Centralized ERP System.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

    Business, Strategy & Management Case Studies | IT & Systems Case Studies | Case Study on ERP Implementation Failure at HP

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