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10 biggest ERP software failures of 2011

Chris Kanaracus | Dec. 21, 2011
With the year drawing to a close, one thing seems abundantly clear: There are still an awful lot of ERP and other software projects running off the rails out there.

In the second quarter, net income stood at $59.7 million, down from $67.7 million in the same period last year, Ingram Micro reported in July. However, the SAP project's issues had been largely resolved, it said.

Montclair State University sues Oracle over a PeopleSoft project, but Oracle returns fire

In May, Montclair State University in New Jersey filed suit against Oracle, claiming the vendor had completely botched a PeopleSoft project that was supposed to replace the school's aging legacy systems.

Because of Oracle's alleged misdeeds, it might cost up to $20 million to finish the project, Montclair has claimed.

But Oracle quickly fired back, claiming that the problems were the school's fault.

"When issues arose during the course of the project, it became clear that MSU's leadership did not adequately understand the technology and the steps necessary to complete the project," Oracle said in a court filing. "Instead of cooperating with Oracle and resolving issues through discussions and collaboration, MSU's project leadership, motivated by their own agenda and fearful of being blamed for delays, escalated manageable differences into major disputes."

Montclair recently filed an amended complaint that adds a wealth of detail to its claims, including an allegation that Oracle ran a "rigged" software demo during the sales process and was also guilty of extortion.

Oracle hasn't commented on Montclair's latest claims.

Epicor sued by customer over ERP project that turned into a 'big mess'

Some ERP failures are bigger than others with respect to scope and cost, but they all can have a serious impact on a company's operations.

Commercial outdoor furniture seller ParknPool took Epicor to court in late November over a "big mess" of an ERP project that it says will results in it taking a loss this year.

ParknPool was looking to move up from its QuickBooks system, which it was outgrowing, Jim Fonner, administrative manager of the Lexington, Virginia, company, told IDG News Service in a previous interview.

It chose Epicor over a Sage system because Epicor's product seemed more tightly integrated, Fonner said. But nothing seemed to go right once the contract was signed, according to ParknPool, which has about 20 employees.

"Epicor said they could do it in seven weeks. We gave them seven months, and we got zero," he said in the interview. "I couldn't even look at a profit-and-loss statement. We couldn't process orders. We were saying, 'QuickBooks is so much better than this' and we were paying $3,500 a year for it."

In a previous statement, Epicor denied wrongdoing: "Our products, consulting personnel and partner performed well, all of which Epicor believes will be borne out as we defend our position in any proceedings."

 

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