Success vs. Failure – ERP Implementations
ERP (Enterprise resource planning) implementations are a common way for a business to gain an edge in their systems, if done correctly. An Enterprise resource planning is “business management software – typically a suite of integrated applications that a company can use to collect, store, manage, and interpret data from many business activities, including:
• Product planning cost.
• Manufacturing or service delivery.
• Marketing and sales.
• Inventory management.
• Shipping and payment.” (Wikipedia – Enterprise Resource Planning)
When an ERP is done correctly, the company can enhance flexibility, profit and productivity, while eliminating cost and inefficiencies. However, not all ERP systems are
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Hershey’s Foods, a partner of The Hershey Company is an internationally leading chocolate and non-chocolate confectionery. “The Hershey Company is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products. The company also is a leader in the gum and mint category.” “The Hershey Company also carries on a significant international presence with operations in more than 90 countries.” (The Hershey Company) In 1996, Hershey’s goal was to upgrade its legacy IT systems into an integrated ERP environment. Hershey’s implemented the following “three new software applications at the same time:
1. SAP/R3 enterprise application suite
2. Manugistics (demand planning and transportation)
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With new systems and workflows, Hershey’s did not allow employees to be fully trained vs. timing cutover during a less critical time of year which would’ve allowed for proper training, and any corrections that needed to take place. Testing the business processes and systems using a methodology, and planning a realistic implementation schedule are key factors in implementing an ERP system, which unfortunately Hershey’s failed to
“His decision to focus on the production of the Hershey milk chocolate bar is now hailed as one of the most important decisions in the history of American business” (Milton Hershey 1). Certain aspects of Milton Hershey’s life are impossible to not take notice of. A simple chocolate bar completely changed the world of business, Milton S. Hershey impacted the world in a huge way.
Milton Hershey is best known for being the creator of Hershey’s chocolate. However, he has accomplished more than concocting caramels and candies. Mr. Hershey was a philanthropist, someone who has an aspiration to aid people and end social problems. They do so by donating large amounts of their personal fortune to help people or things, somewhat like a charity, but the purpose is for it to last a long time rather than just for a while. Likewise, Milton Hershey was a caring man who sought to make life better for people, whether they be man, woman, or child.
You all know the Chocolate Company: Hershey's; but where did it all begin? As with Walt Disney, it started with a dream. A dream that a certain person could rule the candy market. This certain person is Milton Snavely Hershey. Milton Hershey founded Hershey’s Chocolate Company in 1900. Did you know that his first product wasn't chocolate? No, he created and sold many other confections; his greatest being caramel. His highest achievement of all was creating the world's largest candy manufacturing company today. Milton S. Hershey learned most of his work from Joe Royer, the owner of an Ice Cream Parlor and Garden. Joe Royer taught Milton for four years until he quit. Milton didn't quit because he didn't like the apprenticeship. No, he quit to start his own confectionary business. Milton S. Hershey gave this world a company that changed the way we see chocolate today.
Today, Hershey owns or has made over eighteen different candies besides the Kiss, which include: Almond Joy, Cadbury Creme Eggs candy, Hershey 's Cookies 'n ' Creme candy bar, Hershey 's milk chocolate, Mounds candy bars, Hershey 's Nuggets chocolates, Hershey 's Hugs chocolates, Reese 's crunchy cookie cups, Reese 's Nut Rageous candy bar, Reese 's Peanut Butter Cups, Hershey Air Delight, Sweet Escapes candy bars, TasteTations candy, Twizzlers candy, Kit-Kat wafer bar, Whoppers malted milk balls, and York Peppermint Patties. All these candies have made Hershey’s a multimillion company (Bellis,
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
Milton S. Hershey was born in a small Pennsylvania town named Derry Township on September 13, 18571. He was the only child of Fannie and Henry Hershey. His mother was a Mennonite2 and moved often, which disrupted his education and could only finish 4th grade3. Hershey became an apprentice of a Lancaster candy maker for four years and started to get into the candy business. Milton opened his first candy store in Philadelphia on 1876 at the age of 184which failed after 6 years and went bankrupt on 1882.5 Milton then tried his luck at opening candy stores at Chicago and New York, both resulting in failure and went bankrupt again on 1886.6 When Milton visited Denver, he discovered how to mix fresh milk with caramel and returned to Lancaster to start a caramel business on 1883. 7his business proved to be a huge success and was named the Lancaster Caramel Company8. The success of this caramel company was the thing that set Milton as a candy maker and provided him with financial stability to start on his next interest, chocolate. Milton purchased his first chocolate-making equipment from a German company called J.M.Lehmamm Company on 1893 that was displayed in the World’s Columbian Expedition9. He started a sub-company called Hershey Chocolate Company under the Lancaster Caramel Company and began to produce chocolates. On 1900, Hershey sold his successful caramel company for $1,000, 0010and in order to set his sights to begin mass-producing chocolate. Hershey needed a place to produce that much chocolate and returned to Derry Township, PA to build his new factory on 1903. The Derry Township was an ideal location for producing chocolate because of its source of water, fresh milk, and workers. The factory, later named The Chocolate Factory was built on 1905 and used latest mass production techniques that produced the first milk chocolate that was made in America 11.
Ziff Davis, an American publisher and internet company, wrote a small document on the top 5 reasons ERP systems fail and how to fix those reasons. The document makes an interesting point of “failure is often a perception, rather than a quantifiable measure of outcomes (Ziff Davis 2),” meaning companies may think they have failed by their perception, when in actuality they didn’t proper measure their outcomes or potential outcomes. The first reason the document goes over is “setting unrealistic expectations at the outset. (3)” The document claims that a company is eager and excited to implement the system without fully defining business requirements and goals (3). This ties back with that perception and measurement dilemma. The company perceived everything was going to be well with the implementation, but failed to measure out goals and requirements. Ziff Davis goes into the fact that companies fail to realize “the level of resource commitment the project will take (5)” and that “Done properly ERP can and will transform your business by automating and re-engineering its beating heart: its business processes. (4)” Again these point out to that perception and measurement factor. Another reason the document goes over is “Not involving key stakeholders (6)”. Ziff...
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
The Hershey Company is the largest manufacture of chocolate and candy in the United States. The Hershey Company produces and sells a wide variety of sweets, including gluten-free and sugar-free sweets (The Hershey Company). Some famous brands produce by The Hershey Company include, Hershey, Reese’s, York, Kit-Kat, Ice Breakers, Twizzlers, Almond Joy, and Mounds (The Hershey Company). Milton Hershey changed the candy making industry by turning his caramel business into a chocolate industry, caring enough to influence his company to help organizations and individuals, and by remaining successful for over a hundred years.
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
...l for enterprise resource planning implementation¡±, Proceedings of the 7th European Conference on Information Systems, Vol. 1, pp. 273-97.
2. Kerry Group is taking a slow and methodical approach to implementing the parts of SAP ERP Software. What does the company gain and what does it lose by taking its time in this way? reference Kerry Group Is on Your Table: So they role the plan out to Ireland and England throughout our global operation in other countries , by taking the methodical approach Kerry group could have focused on its problem-solving resources on that location, fortunately , no major issues arose. They also implementation, there time in training. Because it’s competent in house training and competent technical, professional Kerry Group hiring expert to train the group. So this completes the required set of capabilities
Hershey Canada is one the largest competitors in the chocolate bar market. Hershey brands have a strong market value and a long history dating back to 1903. Hershey Canada owned three of the top five chocolate bars sold in 2000 to 2001. Hershey's three principle brands held ...
The purpose of implementing an ERP system in a company is when the company isn’t operating efficiently. Look at it like this, when your body is sick, you know you need to take medicine, you just can’t stand the taste. And in the same matter when your company isn’t operating efficiently, you’ve got to take steps to correct it. Most companies just fear the disruption, the learning, and the cost and the inconvenience of it all. “Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. (Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform. Orcacle Corporation World Headquarters,)