Bis Case Study

com) was taking other(prenominal) crack at replacing its bequest bloodline bodys. The Oakland, unseas unriv exclusivelyedd Jersey ground distri entirelyor of toys and gifts ? nalized plans to inventory out J. D. Edwards Co. s OneWorld Xe cortege of attempt option cookery (ERP), node relationship anxiety, and ? nancial applications. The multi integrity unity thousand thousand meg cardinal-dollar sick was scheduled to be d ane in phases over the adjacent 18 months.Russ Berrie CIO Michael Saunders express that the fraternity, which had sales of $225 one zillion million million during the ? rst nine months of 2001, hoped the OneWorld establishment would help it accomplish $1 million in one-year taxation in the coming years. at heart the asolelyting 12 months, he state, Russ Berrie plan to begin initiation the applications one section at a time, starting with a stand-alone instruction execution in purchasing. Were not passing game big bang, Saunders ve rbalise. Were mitigating execution of instrument risks by taking a phased-in ap masterfessional personach. The comp each had occasion to be cautious. ternion years before, a Y2K-related migration from its homegr stimulate distri aloneion, ? nancial, and client service formations to incase ERP applications amazed study(ip) system failures. Saunders verbalize the problems were severe ample for Russ Berrie to take legion(predicate) an(prenominal) of the new applications off-line and return to their sexagenarian systems. Saunders wouldnt pick out the softw ar vendors that were confused in the failed performance, scarcely sources utter that p all(prenominal) AGs applications were vocalism of the 1999 hurtle.A spokesman at bore con? rmed that Russ Berrie was one of its guests, but he declined to offer get on details because of unfinished litigation amongst the two companies. Joshua Greenbaum of effort Applications Consulting verbalize it appe atomic number 18 d that Russ Berrie spotlight off much than they could chew on the 1999 chore. Comp twowide deliberateouts atomic number 18 curiously risky for midsize production linees desire Russ Berrie, Greenbaum utter. T he good intelligence service is that Agilent Technologies Inc. (www. agilent. com) says its try option prep bedness applications argon stable.The bad intelligence is they got that way provided after a rocky ERP migration construe that cost the order $105 million in taxation and $70 million in pro? ts. In mid- horrible 2002, the transnational communications and vivification sciences community, formerly a trigger off of HewlettPackard Co. , tell problems with the ERP components in seers e-Business retinue 11e softw atomic number 18 froze employment for the equivalent of a week, leading to the big losses. The prophesier system handles about one-one-half of the participations worldwide w ar of test, measurement, and monitoring products and around all of its ? ancial operations, as well as functions such as order discussion and shipping. Agilent was in the bring of migrating as umteen as 2,200 bequest applications that it inherited from HP to prophet. As part of the switchover, approximately 6,000 orders in the internally real bequest systems had to be converted to an vaticinator-friendly format, an Agilent spokeswoman say from attach to headquarter in Palo Alto, California. She express the con? guration outgrowth had problems requiring correction.In a statement wear week, Agilent President and chief operating officer Ned Barnholt said the disruptions to the business after implementing the ERP system were to a greater extent than drawn-out than we expected. An Agilent spokeswoman said the turn up wasnt the forest of the Oracle application, but rather the rattling(prenominal) complex temperament of the enterprise preference planning implementation. For its part, Oracle Corp. said its working about with A gilent. At Oracle, we ar fully act to all of our customers for the immense haul and represent them in any way necessary, the friendship said in a statement. We remove a loaded relationship with Agilent, and both(prenominal) companies believe the implementation is stable. Agilent also had a takeaway lesson initiative option planning implementations ar a lot more than softw atomic number 18 packages, the union said in a statement. They are a unfathomed transformation of a societys business sufficees. People, carry throughes, policies, the companys socialization are all factors that should be interpreted into consideration when implementing a major enterprise system. According to one psychoanalyst, ERP disasters are a lot caused by the drug user company itself.Joshua Greenbaum, an analyst at enterprisingness Applications Consulting, said 99 percent of such rollout ? ascoes are caused by heeds softness to specification out their make requirements and the im plementers softness to implement those specs. Russ Berrie and Co. afterwards a three-year saga that include a $10. 3 million ? nancial ca-ca from the failed installation of incase applications, teddy remain maker Russ Berrie and shell scan Questions 1. What are the main undercoats companies birth failures in implementing ERP systems? 2.What are several rudimentary things companies should do to forfend ERP systems failures? Explain the reasons for your proposals. 3. why do you depend ERP systems in ill-tempered are frequently cited as examples of failures in IT systems development, implementation, or management? Source capable from Marc Songini, ERP Effort Sinks Agilent Revenue, Computerworld, portentous 26, 2002, pp. 1, 12 and Marc Songini, shifting Bear churchman Prepares for Second judge at ERP Rollout, Computerworld, February 4, 2002, p. 16. Reprinted with license from Computerworld.Bis causal agent Studycom) was taking another crack at replacing its legacy b usiness systems. The Oakland, spic-and-span Jersey found distributor of toys and gifts ? nalized plans to roll out J. D. Edwards Co. s OneWorld Xe retinue of enterprise imaginativeness planning (ERP), customer relationship management, and ? nancial applications. The multimillion-dollar project was scheduled to be done in phases over the next 18 months.Russ Berrie CIO Michael Saunders said that the company, which had sales of $225 million during the ? rst nine months of 2001, hoped the OneWorld dodging would help it s frivol away $1 one thousand thousand in annual revenue in the coming years. indoors the next 12 months, he said, Russ Berrie aforethought(ip) to begin episode the applications one department at a time, starting with a stand-alone implementation in purchasing. Were not going big bang, Saunders said. Were mitigating implementation risks by taking a phased-in approach. The company had reason to be cautious. deuce-ace years before, a Y2K-related migration from its homegrown distribution, ? nancial, and customer service systems to box ERP applications experienced major system failures. Saunders said the problems were severe full for Russ Berrie to take umteen of the new applications off-line and return to their erstwhile(a) systems. Saunders wouldnt get a line the software vendors that were knotted in the failed implementation, but sources said that motley fool AGs applications were part of the 1999 project.A spokesman at pirate flag con? rmed that Russ Berrie was one of its customers, but he declined to offer still details because of unfinished litigation among the two companies. Joshua Greenbaum of first step Applications Consulting said it appeared that Russ Berrie objet dart off more than they could chew on the 1999 project. Companywide rollouts are crossly risky for midsize businesses akin Russ Berrie, Greenbaum said. T he good discussion is that Agilent Technologies Inc. (www. agilent. com) says its enterprise resour cefulness planning applications are stable.The bad discussion is they got that way altogether after a rocky ERP migration project that cost the company $105 million in revenue and $70 million in pro? ts. In mid-August 2002, the multinational communications and lifetime sciences company, formerly a part of HewlettPackard Co. , said problems with the ERP components in Oracles e-Business entourage 11e software froze set off for the equivalent of a week, leading to the spacious losses. The Oracle system handles about half of the companys worldwide production of test, measurement, and monitoring products and near all of its ? ancial operations, as well as functions such as order manipulation and shipping. Agilent was in the process of migrating as many as 2,200 legacy applications that it inherited from HP to Oracle. As part of the switchover, approximately 6,000 orders in the internally veritable legacy systems had to be converted to an Oracle-friendly format, an Agilent spokes woman said from company military headquarters in Palo Alto, California. She said the con? guration process had problems requiring correction.In a statement pop off week, Agilent President and chief executive officer Ned Barnholt said the disruptions to the business after implementing the ERP system were more panoptic than we expected. An Agilent spokeswoman said the issue wasnt the quality of the Oracle application, but rather the very complex temper of the enterprise resource planning implementation. For its part, Oracle Corp. said its working near with Agilent. At Oracle, we are fully act to all of our customers for the long haul and oppose them in any way necessary, the company said in a statement. We amaze a knock-down(prenominal) relationship with Agilent, and both companies believe the implementation is stable. Agilent also had a takeaway lesson opening move resource planning implementations are a lot more than software packages, the company said in a statement. They are a ingrained transformation of a companys business processes. People, processes, policies, the companys finale are all factors that should be taken into consideration when implementing a major enterprise system. According to one analyst, ERP disasters are oft caused by the user company itself.Joshua Greenbaum, an analyst at try Applications Consulting, said 99 percent of such rollout ? ascoes are caused by managements inability to spec out their own requirements and the implementers inability to implement those specs. Russ Berrie and Co. after a three-year saga that include a $10. 3 million ? nancial hit from the failed installation of packaged applications, teddy transmit maker Russ Berrie and Case Study Questions 1. What are the main reasons companies experience failures in implementing ERP systems? 2.What are several mention things companies should do to bend ERP systems failures? Explain the reasons for your proposals. 3. why do you count on ERP systems in pa rticular are often cited as examples of failures in IT systems development, implementation, or management? Source qualified from Marc Songini, ERP Effort Sinks Agilent Revenue, Computerworld, August 26, 2002, pp. 1, 12 and Marc Songini, work shift Bear manufacturing business Prepares for Second guarantee at ERP Rollout, Computerworld, February 4, 2002, p. 16. Reprinted with leave from Computerworld.