“Gartner has projected a near 100 per cent fail rate for cloud ERP projects by 2018.” (Clarke, 2016) Organizations need to learn to resist the pressure from business leaders to start with a business before it is ready. Many of these newbies jump into the business world with no clearly defined Enterprise Resource Planning strategy. Most companies attribute the failure to the confusing nature in the array of solutions provided. There is, at this point, no industry standard for ERP systems which makes it difficult to compare. There is minimal transparency in solutions offered, costs and scheduling. (Gartner, 2016) Most failures happen somewhere within the process, not at the end where it suddenly just doesn’t work. People are the central cause of this technology’s failures; the human element. “How many surgeons leave tools in patients? About 4,000, according to the New York Times. Now ERP and lifesaving surgery have more in common than you might think: they are both very technical affairs involving very bright people who make mistakes.” (...
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... brief description of the company and overall summary of the root causes of failure.
Hershey Foods Corporation did not have as good of luck as Cadbury. Hershey is the leading North American manufacturer of quality chocolate and non-chocolate confectionaries. The international operations span over 70 countries. Hershey set unrealistic time expectations and when it missed the deadline of an April 2009 implementation they decided to launch the remaining untested parts of the system to make up for lost time. Hershey pulled the plug on the old system and was left without a reliable plan for peak season operations. Not all manufacturing sites were included in the system, canceling out any idea of full integration. There was a lack of communication between distribution leaders, no solid strategy and accounting for time was skewed. Hershey failed because they got impatient.
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