Perfecting your ERP project team, schedule and budget know will ensure a smooth implementation later. The success of the ERP implementation at Cisco Systems was measured in several ways. Post-implementation, the company reported considerable improvements in inventory management, financial consolidation, order tracking, and customer service.

  1. According to a recent study, 45% of ERP projects go over budget, so developing a goal ahead of time and clearly communicating that to vendors can help reduce the likelihood of exceeding financial capacity.
  2. ERP systems are usually big-ticket projects with high costs and varying timeframes.
  3. Developing clear goals is one of the first steps that companies should take when considering ERP implementation.

HP’s then-CEO Carly Fiorina mentioned the failed implementation as a prime factor in a $400 million revenue shortfall. In this ERP case study, you can see the importance of understanding current technological and workflow processes before implementing a new system. A whitepaper from Acumatica examined how a project “champion” erp implementation case study is an essential component of an ERP project because this person will provide visibility and encouragement throughout the company. Francisco Callegari, CIO at Guardian Sealtech, said in the paper that IT should not be the owner of the project and that users should be heavily involved every step of the way.

Successful ERP Implementation Case Studies

In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the «Deloitte» name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. The company operates globally with brick and mortar supercenters, discount stores, and neighborhood markets.

Nestlé, a multinational food and beverage corporation, undertook an ambitious project to standardize its operations and processes worldwide. The key step in achieving this goal was the successful implementation of SAP’s ERP system. Creating an accurate budget or budget estimate is key in making sure that the solution you go with is affordable for your business while still retaining all of the functionality that you need. According to a recent study, 45% of ERP projects go over budget, so developing a goal ahead of time and clearly communicating that to vendors can help reduce the likelihood of exceeding financial capacity. Nike’s 2000 ERP implementation led to $100 million in lost sales and a decrease in its stock price by 20%. The issue with the system was that its demand planning module overpredicted the amount of Air Garnett sneakers needed and underestimated the amount of Air Jordans that customers would want.

Most of the products are private-labeled and they are sold through regional and national distributors. They had a legacy ERP that was no longer a good fit and that lacked essential tools such as planning, scheduling, and MRP. ABC Compounding employs about 150 people and presents an interesting study as most examples use much larger multinational companies.

It’s important to listen carefully to what they can actually deliver, looking beyond basic features and capabilities. What does the future look like—is the vendor truly invested in the emerging technologies you’ll need to compete? You’ll also want to hear what industry analysts, such as Gartner, say about cloud ERP solutions, including Oracle Fusion Cloud ERP. For over 25 years, she successfully designed and implemented complex IT and Cloud-Based ERP systems for corporations in North America and Europe. She is a Thought Leader for the National Science Foundation’s Center of Excellence in IT and serves on the Council of Business Advisors for the Santa Fe Business Incubator.

Before starting an ERP implementation project, you need to define your business goals. Are you deploying the ERP system to address greater supply chain visibility, for cost and margin related issues, for compliance, or to achieve more efficiency within the facility? Building a  manufacturing ERP implementation strategy is the first stop on the ERP roadmap. After that, decide who will be on the project team and work to define performance management goals. Post-implementation, Hershey’s reported a marked improvement in business processes efficiency, inventory management, and data accuracy.

Case studies videos

A positive ERP case study also usually indicates an overall willingness to adapt to new forms of technology. Companies whose employees aren’t open-minded about changing their workflows or dealing with new tools in day-to-day processes will have more difficulty using their ERP than companies that are entirely onboard. With IoT capabilities, PCI and other companies can connect to devices on the manufacturing floor to perform tasks such as the monitoring of production and the exchange of data. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee («DTTL»), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as «Deloitte Global») does not provide services to clients.

Four ERP implementation case studies you can learn from

The system used an outdated database and was eventually ported to a Linux operation system. With the entire company running on one ERP system, every brand does financial reporting in the same way. “Whether it’s their cash flow, their income statement, or their balance sheet items,” Sheehan says. In other words, all that teamwork enhanced their ability to operate as one team. With procurement in all countries except China and Brazil now on the same platform, it’s easier to analyze vendors as well. For instance, the company discovered that some of its brands paid more than others for the same item.

ERP implementation in hospitals: a case study

Myra Hager, chief information officer, had used Sage ERP X3 in a prior position, and was familiar with its comprehensive manufacturing capabilities. “The time was right, and the pricing to make the switch was very competitive,” she says. Apparently, a manager had chosen a live information database to use during pre-launch testing, although no one thought that the regime would uncover any sensitive company information.

Several Taylor managers who were initially skeptical now are leading the way in bringing their colleagues around. “They’re now jumping in, and they’re doing the talking, they’re doing the change management,” Warpinski says. With a long history of making strategic acquisitions, Hormel Foods owns more than 50 iconic brands, such as Dinty Moore, Planters Peanuts, SPAM, and Skippy Peanut Butter. Ultimately, the technological landscape of ERP is at an exciting stage, and its natural benefits are well-aligned to current innovations. Data centralization allows for many automation opportunities that can be connected to AI and IoT functionality. Below are a few ERP success stories to help understand some companies’ biggest challenges and goals in this area.

Consequently, rather than approaching its business challenge on the basis of an iterative approach, it decided to execute a holistic plan, involving every operating center in the company. Subsequently SAP was engaged to implement a $10 million systems upgrade, however, management problems emerged immediately. A legacy software system was in place that primarily supported the telemarketing efforts of the in-house sales organization.

List of Business Processes

Their IT landscape was complex and lacked standardization, which resulted in slow and sometimes inaccurate reporting. Moreover, the accounting team and their counterparts in financial analysis and planning needed more scalable systems to support their growing workloads. After evaluating several vendors, Discover chose to simplify its environment by consolidating systems on Oracle Fusion Cloud ERP, integrated with Oracle Fusion Cloud Enterprise Performance Management (EPM). David Dozer is a business consulting and IT specialist with more than 15 years of experience in the enterprise software realm. He has dedicated his career to helping clients find and implement software solutions that meet real-world business needs.

Look for a solution that can not only integrate disparate data and business processes but can also integrate with existing systems and applications your business will continue to run. Additionally, you’ll want capabilities that are purpose-built for functions, such as cash management or procurement, giving you faster and more accurate information to improve decision-making. It’s also smart to choose a system that can both monetize and measure business value as you plan new products and set pricing strategies. Besides crafting a vision, working as one team, and enlisting the support and patience of employees at all levels, other factors can lead to a successful ERP implementation. First, you’ll need to clearly define the project’s scope, objectives, and budget.

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