Everest : Ford And Oracle Essay

Everest : Ford And Oracle Essay

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Everest: Ford and Oracle
Abstract:
This paper clearly explains the reasons for the failure of automatic procurement systems which is built for their production and non-production suppliers. The factors that leads to shut down the project are represented in this paper. The two main things that cause project failure are over budget, not meeting deadlines.
Introduction:
Ford Motor Company is a popular leading U.S. automaker which delivers automobiles with brand name Ford. “In 2010, it is the fifth largest automaker in the world as per the vehicle sales”.
Initially, A third party company “COVISINT” which acts as a mediator between Ford with other carmakers and its vendors used to maintain all the information like biddings, purchasing, and supply management. In 1999, the Ford Company observed that there are communication gaps between their suppliers, vendors, dealers with the company which impacts on productivity. Then they decide to integrate all their main systems into single. And also want to introduce automatic web based procurement systems with “COVISINT” where all vendors, suppliers, dealers around the world who works with ford can place a bid, buying raw materials i.e., all transactions are in single web based system. Then in 1999 Ford partnered with Oracle a leading IT Company to develop procurement systems, replace non-integrated systems in the name of EVEREST with USD 200 million as budget. The project started with a set of deliverables at different phases. The main objectives are improving operational efficiency, sharing right information at right time, integrated procurement systems, minimizing production costs, improving customer relationship with CRM modules.
The phases involved with Everest project are replacing IT s...


... middle of paper ...


...ck to our proven current custom built system instead of an automated procurement system” without any impact on other Oracle projects with Ford. All the mislead factors right from start of the project caused to shut down the “EVEREST”. Ford not only lost money with project but also lost advantage gaining in successful implementation which makes them even more stronger automaker than present.


References:
1. https://www.360dissertations.in/wp-content/uploads/2013/sample-coursework.pdf
2. http://spectrum.ieee.org/computing/software/why-software-fails
3. http://adtmag.com/articles/2004/11/01/oops-ford-and-oracle-megasoftware-project-crumbles.aspx
4. http://www.informationweek.com/ford-drops-oracle-based-purchasing-system/d/d-id/1026849?
5.http://www.computerworld.com/article/2566114/enterprise-applications/ford-kills--everest--procurement-software-system.html


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