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The failure of HP's ERP implementation

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Published date
documents in English
7 pages
13 times
Validated by
  1. Avoidance of the problems
  2. Organisational Problems
  3. Project Management Problems
  4. Possibilities and Threats in the HP implementation project
  5. Possibilities
  6. Threats

In June 2004, Hewlett Packard started the implementation of a new Enterprise Resource Planning Software in its North American Enterprise Servers and Storage (ESS) division. HP, known for its expertise in a lot of product fields and consulting capabilities, especially in the segment of SAP ERP implementations, faced several severe problems during the execution of the project.
After two months, the result of the migration of the new ERP had a decrease in revenues of about 5 percent (total financial impact: $160 million) during the third quarter compared to the same period of the previous year. The initial estimation of the cost by AMR Research has been $30 million.
Two questions were raised concerning this project. On the one hand, whether the problems and aspects which endangered the project could have been avoided and on the other hand, what possibilities and threats can be assessed in the implementation of the project? The following two sections of this case study will answer these questions.
While the question about the potential avoidance of the problems discusses HP's weaknesses from an internal point of view, the second question discusses the opportunities and threats from an external point of view. The answer to these questions can be given by accomplished SWOT-Analysis.

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