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ERP Implementation Failure at Hershey Food Corporation

   

Added on  2020-04-21

4 Pages743 Words77 Views
ERP Implementation Failure at Hershey Food CorporationTable of ContentsERP Implementation Failure at Hershey Food Corporation..................................................................2Introduction.......................................................................................................................................2Background Summary.......................................................................................................................2Assessment – Reasons for Failure.....................................................................................................2Assessment – Resulting Benefits.......................................................................................................3Conclusion.........................................................................................................................................3References.............................................................................................................................................41

ERP Implementation Failure at Hershey Food CorporationERP Implementation Failure at Hershey Food CorporationIntroductionHershey’s Food Corporation is the US manufacturer of chocolates and sugar confectionary.There have been numerous success and failure stories related with Enterprise ResourcePlanning (ERP) projects. One of the high-profile failure in the history is Hershey’s adoptionof the business in the year 1999. Background SummaryERP platform was poorly adopted by Hershey that made it unable to cater the requirement of$100 million of order of the products. As a result, the market share of the company wentdown. The annual revenue earned by the company in 1999 was US$ 150 million lesser thanthe revenue earned in 1998 (Ukessays, 2015).Assessment – Reasons for Failure There are a few reasons that can be concerned as the prime factors in the failure of theproject. The recommended deployment period for the project was 48 months; however, seniormanagement insisted to restrict the time period to 30 months (Accenterp, 2015). This led torushed deployment and it also coincided with the busiest period of the company which led toemergence of implementation and deployment issues. The company also did not focus upon asingle point of focus. It rather decided to launch three varied resource planning technologiessimultaneously. This brought many conflicts as an outcome. The company wished to launchthe project before Y2K that made it mandatory to carry out conversion processes in thebusiest sales and distribution period of the company. The Big-bang implementation approachproved to be a primary factor behind the project failure. Also, ERP systems could not beproperly tested due to this approach that led to the presence of critical and major bugs in thefinal release (Pemeco, 2011). 2

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