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15 famous ERP disasters, dustups and disappointments

Josh Fruhlinger,Thomas Wailgum | July 11, 2017
It's no wonder ERP has such a bad reputation: The history surrounding the complex and expensive enterprise software market is packed with tales of vendor mud-slinging, outrageous hype and epic failures.


5. PG&E: When "sample" data isn't

Some rollouts aim to tackle this sort of problem by testing new systems with production data, generally imported from existing databases. This can ensure that data errors are corrected before rollout — but production data is valuable stuff containing a lot of confidential and proprietary information, and it needs to be guarded with the same care as it would in actual production.

In May of 2016, Chris Vickery, risk analyst at UpGuard, discovered a publicly exposed database that appeared to be Pacific Gas and Electric's asset management system, containing details for over 47,000 PG&E computers, virtual machines, servers, and other devices — completely open to viewing, without username or password required. While PG&E initially denied that this was production data, Vickery says that it was, and was exposed as a result of an ERP rollout: a third-party vendor was given live PG&E data in order to fill a "demo" database and test how it would react in real production practice. They then failed to supply any of the protection a real production database would need.


6. Definitely not a sweet experience for hershey

Could a failed technology implementation (in this case SAP's R/3 ERP software) take down a Fortune 500 company (in this case Hershey Foods)? Well, it certainly didn't help Hershey's operations during the Halloween season in 1999 or make Wall Street investors thrilled.

In the end, Hershey's ghastly problems with its SAP ERP, Siebel CRM and Manugistics supply chain applications prevented it from delivering $100 million worth of Kisses for Halloween that year and caused the stock to dip 8 percent.

So I guess a failed technology project can't actually take down a Fortune 500 company for good, but it can certainly knock it around a bit.


7. Just do it: Fix our supply chain system!

What did a $400 million upgrade to Nike's supply chain and ERP systems get the world-renowned shoe- and athletic gear-maker? Well, for starters, $100 million in lost sales, a 20 percent stock dip and a collection of class-action lawsuits.

This was all back in 2000, and the horrendous results were due to a bold ERP, supply chain and CRM project that aimed to upgrade the systems into one superstar system. Nike's tale is both of woe and warning.


8. HP's "perfect storm" of ERP problems

The epic tale of HP's centralization of its disparate North American ERP systems onto one SAP system proves that one can never be too pessimistic when it comes to ERP project management. You see, in 2004, HP's project managers knew all of the things that could go wrong with their ERP rollout. But they just didn't plan for so many of them to happen at once.


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