According system. Firstly, they apply SAP system to

According to this failure, HP had affected by
some impacts which are failing in fulfilling the orders and it led to loss of
sales. Also, it led to increase the expenses trying to order fulfilling and
this would affect the company’s profit. Customers’ dissatisfaction is one of
the impacts also which led them to complain continuously about delayed
processing. In addition, company’s revenue growth had gone down from its
Enterprise Servers and Storage (ESS) which attributed to migrating to a
centralized ERP system. Reasons behind that are the unaddressed issues left for
contingency planning of ERP implementation and executing issues, not related to
SAP software. The company claimed that the problems of data modeling were minor
nature between new SAP and the old system, and they didn’t hold the
responsibility of SAP’s failure. Thus, the poor implementation of ERP system
demonstrates the adverse financial and business impact for an IT company, especially
for the role of consultant implementation. To terminate this problem, HP had
collaborated with SAP to find solutions that designed specifically for
difficult implementation of SAP.logistics. The
benefits that they expected to gain cost saving, shorter time in delivering and
leading, and being global distribution system. Firstly, they apply SAP system
to some several modules. Then, they wanted to expand it as a large distributed
application system covering all relative processes of the corporation. Suddenly
after many years of implementing, they faced many several problems including,
project team constitution, data integration problems, demand forecasting
problems, poor planning, improper testing, and inadequate implementation
support and training.


The other
company that faced failure in implementing ERP system is HP. The Hewlett-Packard Company is an American
multinational company that headquartered in California. . It is a small and
medium sized businesses and large enterprise. It provides and develops high
quality and responsible prices hardware components, software, and services that
are related to serve customers. HP had a highly decentralized organizational
structure and independently designs for each business unit. Moreover, they attain a highly production in their
industry and increasing in sales volume of their products. In light of that,
the company planned to replace legacy systems with SAP R/3 as a standard ERP
solution in order to reorganize their business processes and managing more efficiently
the complex operations of manufacturing and

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one company’s negative experience


experience with
implementing ERP.MIE used more than 5 systems developed internally or by local
vendors before they start to implement ERP. These systems were hard to maintain
and develop also, they are expensive to operate. Moreover, they did not provide
accurate, consistent and timely information to support faster and good decision
making. The main down fall of the system was lack of communication between
individual sites and prone to manual manipulation due to that tracking,
inventory and stock take problems had appeared. In fact, these systems did not
support growth of the business and were not sufficiently agile to keep pace
with the changing business environment. At this point MIE decided that adoption
of ERP system will be the solution that could enable the company to overcome
theses challenges. A consulting company called Syscorp was hired because of
their substantial experience within manufacturing industries to monitor the ERP
implementing program. ERP project at MIE covers many departments and areas of
the business each must be associated with risks so, implementation team
conducted risk analysis method and other analysis methods such as CAM to
identify risks and manage the ERP project in proper way to ensure its success.
Many benefits gained by implementing ERP at MIE which are: lower IT cost,
ability to promise and deliver to the customer on time. These are things old
system could not attain. Ability to deliver on time will improve the customer
relationship and trust on company thus, will increase orders and profitability.
Additionally, supply chain relationship was improved because of electronic
communication the transactions were done easier and faster.

Mesfine Industrial
Engineering (MIE) is a medium company in Ethiopia had a successful