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.
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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.
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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. |