Manufactura
Páginas: 20 (4970 palabras)
Publicado: 2 de julio de 2012
TECHNOLOGY
Making
No one ever said enterprise resource planning was easy. Here’s how to make it work — on time and under budget.
ERP T
Succeed:
Turning Fear Into Promise
By Scott Buckhout, Edward Frey and Joseph Nemec Jr.
HE
F OX M EYER C O R P O R A T I O N
systems and installed one with the help of one of the most reputable system integrators. Yet, by 1997, after FoxMeyerhad invested two and a half years of effort and more than $100 million, the company could only process 2.4 percent of the overnight orders that it had with ancient legacy systems — and even that small percentage suffered from information errors. The company fell into bankruptcy and was acquired for a mere $80 million. Its trustees are now suing its system suppliers, blaming the ERP implementationfor its business failure. Is this an extreme case? Clearly.
Is this unusual? Sadly, no. Implementations of ERP systems are struggling throughout the world. They take too long, cost too much and fail to deliver the promised benefits of competitive advantage and cost reduction. Despite the promise and the high investment required to implement ERP systems, statistics show that more than 70 percentof ERP implementations, whether self-created or designed by established ERP software vendors, fail to achieve their corporate goals. In a landmark study, the Standish Group, a market research company
used to be one of the largest
wholesale drug distribution companies in the United States, with more than $5 billion in annual revenues. Attempting to improve its competitive position andprepare for growth, the company decided to use a popular enterprise resource planning (ERP) system, a group of software programs designed to tie together disparate company functions to create more efficient operations in areas such as the assembly or delivery of products. FoxMeyer became an early believer in the potential merits of ERP
...............................
Scott Buckhout is a seniorassociate at Booz-Allen & Hamilton based in San Francisco. He specializes in helping companies develop business strategies and improve production capabilities. Mr. Buckhout earned his B.S. in aerospace engineering from Texas A&M University. He also holds an M.B.A. from the J.L. Kellogg Graduate School of Management at Northwestern University. Edward Frey is a vice president of Booz-Allen based in SanFrancisco. He specializes in improving innovation and production capabilities for clients making aerospace and other highly engineered products. Mr. Frey earned his B.S. and M.S. in materials science from the Massachusetts Institute of Technology. He also holds an M.B.A. from Harvard University. Joseph Nemec Jr. is a senior vice president of Booz-Allen and the leader of its global informationtechnology group. During his 29 years with Booz-Allen, he has focused on helping Fortune 20 multinationals develop strategy and manage changes in organization, processes, culture and systems. Dr. Nemec earned his B.S., M.S. and Ph.D. from the Massachusetts Institute of Technology and is a member of the 81st Advanced Management Program at Harvard Business School.
60
Second Quarter ’99
TECHNOLOGYspecializing in software and electronic commerce, looked at implementations in companies with more than $500 million in revenues. The study found that the average cost overrun was 178 percent; the average schedule overrun was 230 percent of original expectations, and the average slide in functional improvements was an astonishing 59 percent deficit. (See Exhibit I.) Still, such aggregatestatistics hide real, and specific, horror stories about companies such as FoxMeyer Drug and the Dell Computer Corporation that have tried the systems. Dell publicly canceled its ERP system after two grueling years and an expenditure that exceeded $200 million. The company could tell it would not get the results for which it had paid so dearly and switched to a combined system/process solution that has...
Making
No one ever said enterprise resource planning was easy. Here’s how to make it work — on time and under budget.
ERP T
Succeed:
Turning Fear Into Promise
By Scott Buckhout, Edward Frey and Joseph Nemec Jr.
HE
F OX M EYER C O R P O R A T I O N
systems and installed one with the help of one of the most reputable system integrators. Yet, by 1997, after FoxMeyerhad invested two and a half years of effort and more than $100 million, the company could only process 2.4 percent of the overnight orders that it had with ancient legacy systems — and even that small percentage suffered from information errors. The company fell into bankruptcy and was acquired for a mere $80 million. Its trustees are now suing its system suppliers, blaming the ERP implementationfor its business failure. Is this an extreme case? Clearly.
Is this unusual? Sadly, no. Implementations of ERP systems are struggling throughout the world. They take too long, cost too much and fail to deliver the promised benefits of competitive advantage and cost reduction. Despite the promise and the high investment required to implement ERP systems, statistics show that more than 70 percentof ERP implementations, whether self-created or designed by established ERP software vendors, fail to achieve their corporate goals. In a landmark study, the Standish Group, a market research company
used to be one of the largest
wholesale drug distribution companies in the United States, with more than $5 billion in annual revenues. Attempting to improve its competitive position andprepare for growth, the company decided to use a popular enterprise resource planning (ERP) system, a group of software programs designed to tie together disparate company functions to create more efficient operations in areas such as the assembly or delivery of products. FoxMeyer became an early believer in the potential merits of ERP
...............................
Scott Buckhout is a seniorassociate at Booz-Allen & Hamilton based in San Francisco. He specializes in helping companies develop business strategies and improve production capabilities. Mr. Buckhout earned his B.S. in aerospace engineering from Texas A&M University. He also holds an M.B.A. from the J.L. Kellogg Graduate School of Management at Northwestern University. Edward Frey is a vice president of Booz-Allen based in SanFrancisco. He specializes in improving innovation and production capabilities for clients making aerospace and other highly engineered products. Mr. Frey earned his B.S. and M.S. in materials science from the Massachusetts Institute of Technology. He also holds an M.B.A. from Harvard University. Joseph Nemec Jr. is a senior vice president of Booz-Allen and the leader of its global informationtechnology group. During his 29 years with Booz-Allen, he has focused on helping Fortune 20 multinationals develop strategy and manage changes in organization, processes, culture and systems. Dr. Nemec earned his B.S., M.S. and Ph.D. from the Massachusetts Institute of Technology and is a member of the 81st Advanced Management Program at Harvard Business School.
60
Second Quarter ’99
TECHNOLOGYspecializing in software and electronic commerce, looked at implementations in companies with more than $500 million in revenues. The study found that the average cost overrun was 178 percent; the average schedule overrun was 230 percent of original expectations, and the average slide in functional improvements was an astonishing 59 percent deficit. (See Exhibit I.) Still, such aggregatestatistics hide real, and specific, horror stories about companies such as FoxMeyer Drug and the Dell Computer Corporation that have tried the systems. Dell publicly canceled its ERP system after two grueling years and an expenditure that exceeded $200 million. The company could tell it would not get the results for which it had paid so dearly and switched to a combined system/process solution that has...
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