according to your readings/study, what is the success rate for erp implementation?

Did SAP deceive and defraud Waste Management (WM) during ERP selection and implementation? That's the question at pale in a $500 million lawsuit confronting SAP relating to a Waste material Management ERP failure.

According to documents filed in court past WM, SAP pitched WM on a well-tested, sector-specific, ready-to-install ERP package. WM learned after the implementation had started that no such software existed. Rather, the ERP system in question was even so in development and had "never been tested in a productive environment."

The jury should accept its hands total trying to untangle this mess. Bold that all of the allegations are proven, SAP should end upwardly on the losing side. WM, however, will probably share part of the blame.

The Fraud Allegations at the Root of the Waste Management ERP Failure

WM's fraud allegations become much deeper than unproblematic misrepresentation. Before contracts were signed, SAP purportedly demonstrated the fully functioning software to WM. WM claims information technology relied on SAP'southward demonstrations when it chose the SAP software. WM says that SAP demonstrated a "mock-up" version and that the demonstrations "were rigged and manipulated to describe false functionality."

SAP denies the allegations. Withal, if WM wins on its fraud and misrepresentation claims, this case could bulldoze a stake through the heart of the world's leading ERP vendor. No customer will desire to build its business concern operations on a foundation of lies and charade. In addition, SAP will likely confront criminal investigations.

Members of SAP'due south C-Suite were directly involved in landing the WM account. Some of those executives are no longer with the company. In that location'due south plenty of speculation about whether their departures are related to the WM fiasco.

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Waste matter Direction's Share of Liability

Merely on the PR boxing, SAP is getting pretty banged upwardly. WM is also taking its share of hits. A close reading of its ain court filings shows that information technology's partially responsible for its own losses.

Here are two of the about glaring examples taken from WM's court pleadings:

#1: "Waste product Management relied on [SAP's] Business organisation Instance estimates in agreeing to license the SAP software."

As part of its sales pitch, SAP prepared a "business case." SAP stated that its software would enable WM to achieve between $106 million and $220 million of almanac benefits.

WM showed questionable judgment in relying on SAP's projections. Conspicuously, SAP was partial. It was trying to make a big auction. In my analysis, WM was imprudent and arguably negligent when it decided to rely on an apparently conflicted business case projection.

WM should accept done its due diligence. If information technology needed help, it should have turned to an impartial 3rd-party advisor. An independent analysis might have shown that the SAP software wasn't the best choice.

#2: "Waste Management believed that developing a new software posed unacceptable risk… and instead decided to look for an 'off-the-shelf' solution that was already fully developed and fully tested."

Earlier information technology selected the software, WM admits it knew that SAP's "Waste and Recycling Software had been developed specifically for Waste Direction," according to courtroom pleadings.

This is a case of WM both having and eating its cake. On the 1 hand, WM wanted a generic and well-tested system. In the stop, though, WM selected the SAP organisation knowing it was designed for WM's business organization lone.

I agree with the prudent approach that WM considered but didn't follow. A company of its size and calibration had little reason to presume the risks of early on applied science adoption. It should accept fabricated certain that system stability and system track-tape were unassailable pick criteria. Had information technology washed then, it wouldn't accept selected the SAP system and wouldn't be embroiled in this lawsuit.

In the end, if SAP acted deceptively, at that place's probably little that WM could have done to protect its investment. All the same, it could have mitigated some of its losses had it applied more rigour to its project management.

Originally published hither past Manufacturing AUTOMATION on February 26, 2010.

Update on the SAP vs. Waste Management ERP Failure Lawsuit

The lawsuit between WM and SAP was settled in 2010 with SAP making an undisclosed, one-time cash payment to WM according to court documents and a regulatory filing.

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Source: https://www.pemeco.com/sap-v-waste-management-a-500m-erp-implementation-fiasco/

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