29 Mar Unit 5 discussion response_MT433
13342Respond or elaborate on the response below:
One notable example of a business that failed in its ERP implementation is Hershey’s. Hershey’s is a well-known American multinational company famous for its chocolate and confectionery products. Founded in 1894, it has grown to become one of the largest chocolate manufacturers in the world.
Why They Failed
In 1999, Hershey’s attempted to implement a new ERP system to streamline its operations and improve efficiency. The implementation, however, suffered from several issues. A deadline was set that was aggressive. Considering the project’s scope, Hershey’s set an unrealistic deadline of 30 months for completing the ERP implementation. In order to reduce complexity and risk, they upgraded their hardware, software, and network infrastructure simultaneously. Inadequate testing led to unforeseen problems with the system. A poor change management system was in place. As a result of inadequate training, the new system caused operational disruptions.
How They Dealt with the Issue
Hershey lost $100 million in sales due to the failed ERP implementation, causing delays in fulfilling orders. Hershey’s took the following steps to resolve the issue. Orders and shipments were temporarily managed by manual processes. A team of external consultants was hired by Hershey’s to help stabilize the system and resolve technical issues. A phased approach was adopted to implement the ERP system, ensuring thorough testing and training during each stage.
Key Lesson to Learn
The key lesson from Hershey’s ERP failure is the importance of realistic planning and thorough testing. Companies should avoid overly aggressive timelines, ensure comprehensive testing, and provide adequate training to employees. Additionally, it is crucial to manage changes incrementally rather than attempting simultaneous upgrades across multiple systems (Gross, 2019).
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