Indu, under the direction of vivek gupta, ibs center for management research. Pdf a case study on hersheys erp implementation failure. In late 1996, hershey began modernising hardware and software systems in the company. Find, read and cite all the research you need on researchgate. In this report, the failure of the erp system in the compny is explored by 5ws and th porters value chain to identify the root cause of the system failure. Erp implementation failure at hershey foods corporationit. A case study method has been adopted for determining the specific cffs, how they. Hershey companya case analysis 2667 words bartleby. Erp implementation failure at hershey foods corporation by.
The two key lessons i describe below relate to systems testing and project scheduling. Real costs of choosing the wrong software vendor forbes. A case study on hershey s erp implementation failure. Hersheys sap landscapes reach across north america, the philippines, china and soon. The case examines in detail the reasons behind the failure of erp implementation at the us based hershey foods corporation. In the decades since enterprise resource planning erp technology was first introduced, there have been many highprofile successes and failures. Hard pressed for time, hershey went in for big bang erp implementation, which led to several problems pertaining. Here is a short case study and success story on implementing erp system at cadburys. The implementation of enterprise resource planning erp systems has been known to be much more difficult than the development of a computer application supporting a single business function. The company was running on legacy systems, and with the impending y2k problems, it chose to replace those systems and shift to clientserver environment.
If you continue browsing the site, you agree to the use of cookies on this website. In late 1996, hershey began modernizing hardware and software systems in the company. In the case of creating the asia instance, hershey used the livecompare to. Case study the hershey company modernize is service delivery strategy with improved infrastructure and platform services, high performance and scalable infrastructure, platform, and software capabilities. Kenneth wolfe, hershey s ceo at the time, attributed the sales loss to problems with the systems setup, and experts generally agree.
Analysis of hersheys enterprise system cutover term paper. Intellicorps applications are great tools to conduct a fully automated sap analysis to. Erp implementation failure at hershey foods corporation story cont. If your organization is to reap the benefits of erp, it must first develop a plan for success. Failed attempt at enterprise resource planning by hershey. To download erp implementation failure at hershey foods corporation case study case code.
The disaster wasnt caused by the erp system itself. Erp system implementation and business process change. Hershey erp case study enterprise resource planning. Itsy059 click on the button below, and select the case from. In this article, the researcher presents a case study of an erp system implementation by a. Different stakeholders including top management, project manager, project team members and erp consultants from these case studies were interviewed, and erp implementation documents were. Align infrastructure services with the related erp transformation program. While it is true that successful implementation of an enterprise resource planning erp system is a task of herculean proportions, it is not impossible. Successful erp implementation case study scrum inc. In the case of hershey, the quick implementation of the erp system led to its failure and cost the company a huhge amount of business. Solution application of hersheys erp implementation. Erp implementation failure at hershey foods corporation. One memorable case of erp deployment fraught with operational issues is hershey s adoption of a system in 1999.
This paper examines a case study of erp failure at hershey that was largely brought on by fears of how embedded microprocessors with limited date representation would handle the date change from the last day of the twentieth century to the first day of the twentyfirst. This case examines in detail, the reasons behind the failure of enterprise resource planning erp. Pdf on jan 1, 2007, joseph bradley and others published erp training and user satisfaction. Learn about the importance of erp system testing and project scheduling. Enterprise resource planning systems a what is an erp. A successful erp implementation in an ethiopian company. A case study on the successful upgrade of erp system. Hersheys case study erp implementation failure youtube. Enterprise resource planning implementation success and failure stories. However, the failures often draw more attention than erp triumphs. Hershey s case analysis introductioncurrent situation missionvision, corportatebusiness strategy the hershey company aims to maintain the number one market share in north america and to become the top three in emerging markets the hershey co. What we can learn from the 1999 hersheys erp failure. The enterprise saw the implementation of an erp platform as being central to its future growth.
Erp case studies on cadbury and hershleys biz learners. You can read as many white papers and research papers as you want, but sometimes the best way to really get a grasp on how an erp system can best be implemented, is to look at a reallife case study. Layers of problems not chocolate the company planned on having all three systems deployed by april of 1999. Erp implementation failure at hershey foods corporation hershey is one of the oldest chocolate companies in the united states, and an american icon for its chocolate bar. While there are several benefits to erp, companies must be cautious in taking the right measures to implement and integrate the system to support their functions. This case examines some of the issues related to the hershey chocolate company and west african cocoa communities. This is what happened to hershey after their erp implementation. Also, we would theoretically reveal what it takes to be a better than an average consultant. Erp software automates the process of syncing multiple functions, such as sales, manufacturing, customer relationship management and accounting, to provide a. Chapter case study update hersheys enterprise system.
Implementation failure hershey foods corporation authorstream presentation. The importance of testing and scheduling imagine waking up one day to find out that your companys. The purpose of this paper is to present a case study of a successful erp implementation. Enterprise resource planning implementation success and. Hershey s implementation team made the cardinal mistake of sacrificing systems testing for the sake of expediency. It is impossible to fulfil over 100 million in candy orders. History and evolution bpr has become one of the most popular topics in organizational management, creating new ways of doing business tumay, 1995. Many leading organizations have conducted bpr in order to improve productivity. In an effort to help companies implement erp correctly the first time i have decided to rehash this old hershey s case. Pdf on jan 1, 2005, ada wong and others published critical failure factors.
The systems of erp are information system backbones and they reach within every business areas and supply chain to enhance its values. Itsy0059 co py ibs center for management research erp implementation failure at hershey foods corporation d o n o t this case was written by p. This time, not only were they on schedule, but they were also below budget. This case study examines how schlumberger partnered with scrum inc. This case was written by indu perepu, under the direction of. A multiple case study research methodology was adopted to understand why and how these erp systems could not be implemented successfully. For hershey s confectionary manufacturing and distribution operations, this nightmare came true in 1999. Company introduction cadbury india is a fully owned subsidy of kraft foods inc.
Case study update hershey s enterprise system creates halloween tricks despite all the difficulties that hershey encountered with its erp installation, they announced in august 2002 that they had completed a successful upgrade of their sap erp system. Hershey is not doing enough to stop labor exploitation on cocoa plantations. A lesson learned from hersheys failed erp implementation. One memorable case of erp deployment fraught with operational issues is hersheys adoption of a system in 1999. Erp lmplementation failure at hershey foods corporation. Shares growth strategies, 20 according to a hershey s blog the mission of the hershey s. Hershey foods have suffered from difficulties in erpimplementation and stabilization because the training plans are haphazard, ill conceived, and focused on the wrong topics, and. A case study on hersheys erp implementation failure. The hershey company, known until april 2005 as the hershey foods corporation and commonly called hershey s, is the largest chocolate manufacturer in north america. Hershey erp implementation case study a lesson in failure imagine one day you wake up and find your companys supply chain has shut down. Hersheyused to ensurepeakseason inflow of productsfrom its manufacturingunits by placing the productswhereverthe spacewas available. Today we would look into the case studies of hershey, cadbury, and nike.
Hershey s history the hershey chocolate company was founded in 1894 by candymanufacturer milton hershey. In the case, erp implementation failure at hershey foods corporation, the erp debacle led to a 12% decrease for hershey in annual revenues from 1998 to 1999. This case examines in detail, the reasons behind the failure of enterprise resource planning erp implementation at the us based hershey foods corporation. Read this case study on hersheys erp implementation failure. Four erp implementation case studies you can learn from. Erp implementation failure hershey foods corporation. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads.
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