Erp Implementation at Foxmeyer Drugs
ERP Implementation at FoxMeyer Drugs
By Name…………
Presented to .......................
Course……………….
Institution……………
February 19, 2011
Summary of the Nature of Implementation
This paper investigates the implementation of ERP project at FoxMeyer Drugs in 1993. The paper will identify lessons learnt from the failure of the project implementation. However a critical analysis of what went right and wrong will be carried out.
According to a case study by Scott, (n.d), FoxMeyer was worth over 5 billion in 1993 this was a time when the company was the fourth largest pharmaceuticals distributer. In 1993 FoxMeyer Drugs stated an ambitious project aimed at increasing efficiency through the use of technology, in the last months of 1993 a project named Delta İİİ was started where SAP the hired company was to supply and install SAP R/3. In addition another company Pinnacle was also commissioned to supply warehouse automation software; the software’s were to be integrated in order for FoxMeyer to achieve efficiency this project was to be implemented directly. Anderson Consulting was hired as the consultants with particular duty of ensuring that the two systems were integrated and implemented. By the start of 1994 the project had started and was implemented during the year and in 1995 initial schedule was to have the project implemented within 18 months. However, during the less than two years of the project implementation the company could not sustain it and the company was declared bankrupt in 1996 two years after the ERP project started.
While the FoxMeyer management had a hand in the failure of the project, equally the project vendor SAP and integrator Pinnacle had a greater role in the failure of the project. The two failed in mitigating the risks associated with such a big project, at some time the management of pinnacle consulting accused FoxMeyer of failure to follow up on the project, the COO of Pinnacle that the failure was in management, but in reality SAP
By Name…………
Presented to .......................
Course……………….
Institution……………
February 19, 2011
Summary of the Nature of Implementation
This paper investigates the implementation of ERP project at FoxMeyer Drugs in 1993. The paper will identify lessons learnt from the failure of the project implementation. However a critical analysis of what went right and wrong will be carried out.
According to a case study by Scott, (n.d), FoxMeyer was worth over 5 billion in 1993 this was a time when the company was the fourth largest pharmaceuticals distributer. In 1993 FoxMeyer Drugs stated an ambitious project aimed at increasing efficiency through the use of technology, in the last months of 1993 a project named Delta İİİ was started where SAP the hired company was to supply and install SAP R/3. In addition another company Pinnacle was also commissioned to supply warehouse automation software; the software’s were to be integrated in order for FoxMeyer to achieve efficiency this project was to be implemented directly. Anderson Consulting was hired as the consultants with particular duty of ensuring that the two systems were integrated and implemented. By the start of 1994 the project had started and was implemented during the year and in 1995 initial schedule was to have the project implemented within 18 months. However, during the less than two years of the project implementation the company could not sustain it and the company was declared bankrupt in 1996 two years after the ERP project started.
While the FoxMeyer management had a hand in the failure of the project, equally the project vendor SAP and integrator Pinnacle had a greater role in the failure of the project. The two failed in mitigating the risks associated with such a big project, at some time the management of pinnacle consulting accused FoxMeyer of failure to follow up on the project, the COO of Pinnacle that the failure was in management, but in reality SAP
References: Ellen, M., Brett, W. (2009) “Concepts in Enterorise Resource Planning” 3rd.ed. Course Technology Cengage Learning. Boston. 2009. Scott, J., E. (n.d). The FoxMeyer Drugs’ Bankruptcy: Was it a Failure of ERP? Cited on 19 Feb. 2011. Accessed from < http://www.uta.edu/faculty/weltman/INSY5375/FoxMeyer.pdf. Turban, E., Leidner, D., McLean, E., Wetherbe, J., C., (2008). Information Technology for Management, Transforming Organizations in the Digital Economy. Massachusetts: John Wiley & Sons, Inc. pp 319-321.