Topic > ERP Implementation Failure at Hershey Company

ERP Implementation Failure at Hershey Foods CorporationNikola DjokovicNorthwest UniversityIntroduction:The technology is amazing. Some people might argue that technology is bad, others might argue that technology is good, but no one can deny that the technological achievements of the modern era are impressive. It is a fact, however, that society as a whole relies heavily on technology. Everyone uses technology in everyday life such as mobile phones, laptops, the Internet and so on. You could say that technology is one of the reasons why people living today enjoy a higher level of comfort and a higher standard of living than people living a hundred years ago. However, even today, with so many technological advances, it is still possible for technology to fail. Today, approximately 77% of businesses rely on information systems for their success, and when an information system fails, it causes a significant problem for the business. There are many famous information system failures throughout history, such as the failure of Snap-On's order entry system that caused the company to lose $50 million in the first half of 1998, or the failed implementation of FoxMeyer's ERP that drove the company into bankruptcy. The information systems failure that this article will focus on is Hershey Foods Corporation's failure to implement enterprise resource management (ERP) in 1999, causing problems with order management and fulfillment, making Hershey Foods Corporation unable to fulfill many orders, which the company's revenues decreased by 12% compared to the previous year. This essay will examine what enterprise resource planning is, how and why the implementation at Hershey Foods Corporation failed (compared to other companies... middle of paper... Shey's order management and fulfillment, even though l The company had finished products in its inventory, the initial startup seemed to go smoothly, however, little by little, problems began to arise with order fulfillment, processing and shipping. Some batches were shipped in delay, and among them some were shipped incomplete. Because of this, Hershey lost its credibility in the highly competitive food industry market. The effects of this failed implementation were immediately reflected on the Hershey Company, reducing its revenue company for the third quarter of 1999 significantly by 12%, which led to a total loss of nearly $150 million in revenue, compared to the previous year. Discussion: What they did about it, how they addressed the failure Future recommendations: future implementation projects, Conclusion: restate the most important thing