高雄大学资管系.pptVIP

ERP Implementation Literature Analysis 陶幼慧 高雄大學資管系 2009.2 ERP Failure Case: FoxMeyer The FoxMeyer Drugs Bankruptcy: Was it a Failure of ERP? By Judy Scott FoxMeyer Case :Introduction FoxMeyer Drugs: a $5 billion company the nations fourth largest distributor of pharmaceuticals Goal: using technology to increase efficiency, the Delta III project began in 1993 purchased SAP R/3 in December of that year purchased warehouse-automation from a vendor called Pinnacle chose Andersen Consulting to integrate and implement the two systems Implementation of the Delta III project took place during 1994 and 1995 FoxMeyer Case :Introduction Christopher Cole, chief operating officer at Pinnacle, the FoxMeyer mess was not a failure of automation. It was not a failure of commercial software per se. It was a management failure (Jesitus, 1997) Perhaps management had unrealistic expectations. Did management expect technology to be a magic bullet? (Markus and Benjamin 1997a, 1997b) In reality, it was the opposite. FoxMeyer was driven to bankruptcy in1996 the trustee of FoxMeyer announced in 1998 that he is suing SAP, the ERP vendor, as well as Andersen Consulting, its SAP integrator, for $500 million each (Caldwell 1998, Stein 1998) FoxMeyer Case :Risk The Delta III project at FoxMeyer Drugs was at risk for several reasons Using a framework developed for identifying software project risks (Keil, Cule, Lyytinenand Schmidt 1998), this study classifies the project risks at FoxMeyer into customer mandate scope and requirements execution environment FoxMeyer Case :Risk #1 Customer Mandate The customer mandate relies on commitment from both top management and users. At FoxMeyer, although senior management commitment was high, reports reveal that some users were not as committed A definite morale problem among the warehouse employees since the projects Pinnacle warehouse automation integrated with SAP R/3 threatened their jobs. With the closing of three warehouses, the tra