Hershey's Case Study For ERP Implementation 2022

Running head: HERSHEY’S CASE STUDY FOR ERP IMPLEMENTATION
CASE STUDY FOR ERP IMPLEMENTATION FAILURE
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HERSHEY’S CASE STUDY FOR ERP IMPLEMENTATION1
Section A:
Integration of System and ERP role in achievement of physical and logical
integration –
Integration of system is the process of combining the sub processes all together into a
complete integrated system so that the system can provide all the functions required. The system
also ensures that the entire system is well coordinated and the requirement functions are
processed as a single unit. Enterprise application integration, networking and programming and
management of business processes are the technologies used to integrate the sub systems into an
entire system (Garg and Garg 2013). The existing processes of a system are sometimes
integrated with the new sub processes within the existing system or with some external system in
order to increase the customer values and so that the benefit can be earned by the organizations.
With the increase in use of internet over the world, the integration of systems has become more
relevant and important and thus many such system design are needed. Vertical and star
integration are the two processes associated with the implementation of the integration of
systems. In the vertical integration process, the functionalities of the system is considered in
terms of systems integration. The star integration system combines all the sub systems in order to
make one single process. The productivity and the employee motivation are the two important
factors of the business plans and system integration helps in the process of business plans.
The software system process by which the entire functional areas of a system are
integrated into a unified system for the performance enhancement of the organization is termed
as Enterprise Resource Planning (ERP). The core business areas of a company like the financial,
accounting and HR production and one of the main important aspect customer relationship

HERSHEY’S CASE STUDY FOR ERP IMPLEMENTATION2
management (CRM) are the software components of ERP system (Leon 2014). The various
databases of the ERP system are associated together and all the data are accessed from that
database only. In the physical and logical integration process of the system of an organization the
ERP plays an important role and the various processes are mentioned below. The
synchronization is the main aspects in terms of ERP system and the uniform system solution
across the various departments of an organization as because all the departments generally works
in a synchronization and this synchronization is the key aspect (Ram, Wu and Tagg 2014). The
entire units of the organization are to be synchronized together into on single system and thus
ERP softwares are needed. The time and cost reduction should be an important aspect in the ERP
implementation and it may be implemented to reduce cost and time of the entire organization by
standardizing the system with one single software model. The ERP softwares are also effectively
manage the huge amount of transactional data that are generally handled everyday by the
organizations. The error detection and reduction is also carried out by various ERP softwares,
whether they are in different departments of the organizations like sales, marketing or finance
(Schniederjans and Yadav 2013). Thus it can be stated that Enterprise Resource Planning (ERP)
is an important aspect in terms of physical and logical integration in an organization.
Section B:
The Reasons for the implementation failure of Hershey’s –
Due to the failure of implementation scheduling and system testing, the ERP
implementation of the company Hershey’s failed miserably, however, some other issues which
are generic in nature can also be related as causes of this failure. The company suffered a
significant amount of loss due to the ERP system failure as because it occurred during the peak