foxmeyer<\/p>\n
Using the Foxmeyer case study (Scott) discuss how Foxmeyer’s failure might have been caused by ineffective conception and planning.
\nAbstract
\nThis interpretive case study of FoxMeyer Drugs’ ERP
\nimplementation is based on empirical frameworks and
\nmodels of software project risks and project escalation.
\nImplications of the study offer suggestions on how to
\navoid ERP failure.
\nIntroduction
\nFoxMeyer Drugs was a $5 billion company and the
\nnation’s fourth largest distributor of pharmaceuticals
\nbefore the fiasco. With the goal of using technology to
\nincrease efficiency, the Delta III project began in 1993.
\nFoxMeyer conducted market research and product
\nevaluation and purchased SAP R\/3 in December of that
\nyear. FoxMeyer also purchased warehouse-automation
\nfrom a vendor called Pinnacle, and chose Andersen
\nConsulting to integrate and implement the two systems.
\nImplementation of the Delta III project took place during
\n1994 and 1995.
\nAccording to Christopher Cole, chief operating officer
\nat Pinnacle, the FoxMeyer mess was “not a failure of
\nautomation. It was not a failure of commercial software
\nper se. It was a management failure” (Jesitus, 1997).
\nPerhaps management had unrealistic expectations. Did
\nmanagement expect technology to be a “magic bullet”?
\n(Markus and Benjamin 1997a, 1997b). In reality, it was
\nthe opposite. FoxMeyer was driven to bankruptcy in
\n1996, and the trustee of FoxMeyer announced in 1998
\nthat he is suing SAP, the ERP vendor, as well as
\nAndersen Consulting, its SAP integrator, for $500 million
\neach (Caldwell 1998, Stein 1998).
\nProject Risks
\nThe Delta III project at FoxMeyer Drugs was at risk
\nfor several reasons. Using a framework developed for
\nidentifying software project risks (Keil, Cule, Lyytinen
\nand Schmidt 1998), this study classifies the project risks
\nat FoxMeyer into (1) customer mandate, (2) scope and
\nrequirements, (3) execution and (4) environment.
\nFirst, the customer mandate relies on commitment
\nfrom both top management and users. At FoxMeyer,
\nalthough senior management commitment was high,
\nreports reveal that some users were not as committed. In
\nfact, there was a definite morale problem among the
\nwarehouse employees. This was not surprising, since the
\nproject’s Pinnacle warehouse automation integrated with
\nSAP R\/3 threatened their jobs. With the closing of three<\/p>\n","protected":false},"excerpt":{"rendered":"
foxmeyer Using the Foxmeyer case study (Scott) discuss how Foxmeyer’s failure might have been caused by ineffective conception and planning. Abstract This interpretive case study of FoxMeyer Drugs’ ERP implementation is based on empirical frameworks and models of software project Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-238129","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/238129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=238129"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/238129\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=238129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=238129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=238129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}