Briefing Book: Enterprise Software Failures

By Tom Smith

Failure of a major project is the worst nightmare of every IT exec. Earlier this week, Agilent Technologies Inc. served up a powerful reminder of how critical IT systems are to business strategy and success, and how damaging that failures related to such systems can be. Agilent said troubles in implementing an Oracle-based enterprise resource planning system caused it to lose out on $105 million in revenue and $70 million in profit in its most recent quarter.

Unfortunately, project failures -- everything from pulling the plug on software implementations to software's failure to deliver its promised benefits -- are all too common.

From the experiences of Nike, Siemens, Agilent, and others, it's clear that big enterprise software deployments as they've been taking place are too hard, too complex, and too risky for companies. Some vendors have begun to take steps to absorb more of the risk themselves.

Others had better follow suit, or it's only going to get harder to sell big-ticket software. The high-profile failures that have taken place are destined to make big companies more skeptical about costly software projects than ever, and that's saying something.

It's important to note that there are numerous examples of successful software implementations to counter the high-profile failures. But the failures are an important reminder of the risks inherent in every big IT project.

The Agilent Story

Price Tag Of Latest Software Failure: Well Over $100 Million
Agilent Technologies points to troubled ERP implementation for shortfalls of $105 million in revenue, $70 million in operating profits, plus huge additional programming costs.

Case Studies and Features

Sharing The Risk: How To Avoid A Supply-Chain Nightmare
Amid a trail of supply-chain disappointments, some vendors are moving to make licensing easier and lower risk. Experts say it's a great development.

Supply Chain Pain
Survey of big-supply chain users by Bear Stearns shows expenditures will continue shrinking. Manugistics, i2 problems bear out the findings. .

One Supply-Chain Sector Stands Out
New research finds the market for supply-chain process management software is growing off the charts.

Siemens Runs Into Problems With i2 Applications
Siemens, a marquee customer of i2 Technologies, says it's having trouble deploying a key i2 application.

Supply Chain Debacle
Nike takes big financial hit, says i2 supply-chain software is to blame.

Procurement Disappointments Leave Billions On Table
New study from A.T. Kearney on what it calls "e-supply management" find companies foregoing billions in savings by not full leveraging technology they've put in place.

Winn-Dixie's Supply-Chain Success Story
Winn-Dixie Stores deploys Manugistics system for inbound transportation to 13 distribution centers, which serve more than 1,000 stores. It's a far cry from the manual processes it used before.

Grocer's Supply-Chain Strategy Built On Best-of-Breed Approach
Giant Eagle selects new transportation-management application based on its range of functions, need for minimal modification.

TechWeb: Software Quality, Now!
For years, IT managers have put up with buggy, security-flawed software. According to a recent InformationWeek research report, some 40 percent of enterprises have had to apply their own programming resources to fix bugs or squelch glitches. There's a growing consensus among business technology managers that enough is enough.

Hard Times On Supply Chain Gang
IT pros involved in any way with supply-chain software should focus on the market trends that affect enterprises.

Software Deployment News and Trends

Visa Outsources HR App Management

Airbus Chooses i2 Apps In Big Supply-Chain Initiative

Metal Company Taps J.D. Edwards To Manage Supply-Chain Assets

Supply-Chain Solidifies Customer Interactions

Luxury Carmaker Deploys Software For More Efficient Supply-Chain Interactions

Industrial Gas Distributor Picks Manugistics To Automate Supply-Chain Functions

RedPrairie's Low-Risk Approach Yields Key Customer Win

SGI Taps i2 For A Single View Into Supply, Manufacturing

Bus Maker Deploys Supply-Chain Systems, On Rental Basis

Research and White Papers

Measuring The ROI Contribution of IT Departments With Service Process Optimization

ROI: The Good, The Bad and The Ugly

The Financial Impact of ASPs: An IDC ROI Study