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ERP Implementation Failure at HP

Case Code: ITSY045
Case Length: 16 Pages
Period: 1998 - 2005
Pub Date: 2005
Teaching Note: Not Available
Price: Rs.500
Organization: Hewlett Packard
Industry: Information Technology, Hardware
Countries: United States
Themes: Information Technology,
ERP Implementation Failure at HP
Abstract Case Intro Excerpts


Background Note

Stanford engineers Bill Hewlett and David Packard started HP in California in 1938 as an electronic instruments company. Its first product was a resistance-capacity audio oscillator, an electronic instrument used to test sound equipment...

The ERP Implementation

HP's products were known for excellent quality and reasonable prices. HP had a highly decentralized organizational structure and every business unit independently designed, marketed and manufactured its own products....

ERP Migration Failure

In December 2003, Gilles Bouchard (Bouchard) became the CIO and Executive Vice-president (EVP) of global operations at HP. He was made responsible for both the supply chain and ERP software implementations...

The Impact

The ISS division's order system became unstable due to problems with data integrity and a simultaneous increase in demand for HP's Standard Servers. This technical glitch led to improper routing of orders and caused backlogs to escalate till the end of August 2004...

The Learning

Analysts commented that ERP implementation failure at HP was a demonstration of how such failure could impact overall business performance. HP had spent huge amounts of money in speeding up delayed order...


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

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