SAP ERP implementation case study. http://www.ifour-consultancy.com

1. ERP Implementation Failure
Case study

2.  Company Involved– Company A
 Motivation behind ERP software
implementation
 Reason for ERP implementation failure
 Recommendations
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3. Company Involved
- Company A
Business of the company was principally in
healthcare services
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4. Motivation behind ERP software implementation
 BUSINESS STRATEGY
Cost Leadership
 Differentiation
From Others
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5. Motivation behind ERP software implementation
 COMPETITION
 Traditional Competitors
 40 Major wholesales competed in the market
Manufacturers started
direct selling
 Self-Warehousing
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6. Motivation behind ERP software implementation
 CUSTOMERS
 INDEPENDENT PHARMACIES
 INSTITUTIONS
 RETAIL CHAINS
 ONLINE ORDERS
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7. Motivation behind ERP software implementation
 OTHER REASONS
 Make complex supply chain decisions
 Based on a supply chain analysis, it was decided that an ERP would offer a
perfect solution
 Meet the increased cost pressure
 Management decided to focus on a business strategy of transferring
the company into low cost distributor to increase competitive
advantage
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8. Selection of SAP
 SAP is the largest ERP software vendor
 Vast array of modules, with huge spectrum of
functionalities
 Industry specific solutions with a deep insight.
 Highly integrated with other modules
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9. Implementation of SAP
 Company A contracted with SAP, consulting
company, to implement the R/3 software
 Project covered the entire supply chain from
warehouses, inventory control to shipping and
handling
 Implementation cost for SAP was budgeted at
US$65m
 The ERP system was projected to save Company A – a
great amount of money per year
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10. Reason for ERP implementation failure
 Planning
Poor selection of the Software
 No consideration of other consultants’ advice
Lack of contingency planning
No end user involvement
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11. Reason for ERP implementation failure
 Implementation
No restructuring of the business process was
done
Insufficient testing
Over-ambitious project scope
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12. Reason for ERP implementation failure
 Implementation
Dominance of IT specialists’ personal interest
Poor Management support
Lack of end-user cooperation
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13. Recommendations
 Planning
Software selection
Contingency plan
Stakeholders’ involvement
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14. Recommendations
 Implementation
Inclusion of the necessary business process
reengineering
Thorough testing
Realistic project scope
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15. Recommendations
 Implementation
Close monitoring of project status
Seek end user support
Post implementation review
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16. References
 Symbiosis students
 AkshayMehra
 Devam Shah
 Kanchan Chandrayan
 Sneha Vazirani
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17. http://www.ifour-consultancy.com Offshore software development company India