project management a case study of a successful erp implementation

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International Journal of Managing Projects in Business

ISSN : 1753-8378

Article publication date: 25 January 2008

The success rate of enterprise resource planning (ERP) implementations is not high in view of the sums invested by organisations in these applications. It has often been indicated that a combination of inadequate preparedness and inappropriate project management have been responsible for the low‐success rate of ERP implementations. The purpose of this paper is to present a case study of a successful ERP implementation.

Design/methodology/approach

In this paper, the authors use a case study of a very successful roll out of an ERP application in the Irish subsidiary of a UK multinational to investigate the validity of one of the most commonly cited project management frameworks, the project management body of knowledge (PMBOK), to ERP projects. Discussing each category of the framework in turn, the case data to illustrate where the PMBOK framework is a good fit or needs refining for ERP projects is used.

It is found that, by and large, PMBOK, because it is a very broad framework, can shed light on most of the key aspects of an ERP project. However, the specificities of this type of project require a different emphasis on some of the factors, as discussed in the authors conclusions. The case analysis also raised some interesting insights into how companies evaluate the success of such highly complex change management initiatives.

Research limitations/implications

This research work will need to be extended to cover other case studies of ERP implementation across other industries and organisational contexts; for example in less tightly regulated industries and smaller organisations.

Practical implications

This discussion will be of great value to ERP project managers who are in the early stages of a project and need to understand and anticipate the areas which will require specific attention on their part, based on their knowledge of the specific circumstances within their organisational context.

Originality/value

This paper presents an investigation into the project management strategy adopted in the Pharma Inc. case and illustrates the mechanics of a successful ERP project implementation, categorised using the PMBOK framework.

• Manufacturing resource planning
• Project management

Carton, F. , Adam, F. and Sammon, D. (2008), "Project management: a case study of a successful ERP implementation", International Journal of Managing Projects in Business , Vol. 1 No. 1, pp. 106-124. https://doi.org/10.1108/17538370810846441

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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• DOI: 10.1108/17538370810846441
• Corpus ID: 144357355

Project management: a case study of a successful ERP implementation

• F. Carton , Frédéric Adam , David Sammon
• Published 25 January 2008
• Business, Computer Science
• International Journal of Managing Projects in Business

46 Citations

The core critical success factors in implementation of enterprise resource planning systems, iso 21500 and success management: an integrated model for project management, a successful enterprise system re-implementation against all odds - a multisourcing case study, analysis of critical success factors (csf) in enterprise resource planning (erp) implementation using extended technology acceptance model (tam) at trading and distribution company, the effect of enterprise resource planning (erp) systems implementation on organizational performance, fmea as a tool for managing risks in ict projects , based on the pmbok.

• Highly Influenced

The Role and Impact of Project Management in ERP project implementation life cycle

Actors' interaction in the erp implementation literature, erp system implementation in a leading led manufacturing firm in malaysia. a supply chain perspective, erp implementation failures: a case study and analysis, 19 references, a model of erp project implementation, a critical success factors model for enterprise resource planning implementation, investigating success factors in enterprise application integration: a case-driven analysis, learning from adopters' experiences with erp: problems encountered and success achieved, understanding the erp post-implementation discourse, the selection process of enterprise resource planning (erp) systems, erp implementation: a compilation and analysis of critical success factors, intangible benefits valuation in erp projects, enterprise resource planning: an integrative review, reductionism and complex thinking during erp implementations, related papers.

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• Implementation

3 successful ERP implementation case studies to learn from

Because of the high degree of complexity associated with large-scale ERP implementations, over time the proportion of successful outcomes tends to become fifty-fifty propositions from a business case perspective.

ERP case study #1: Cadbury – A Sweet Success

Our first successful ERP implementation case study focuses on Cadbury, a 123-year-old confectioner currently owned by American snack foods conglomerate Mondelēz International. The company was on an accelerated growth track while facing problems meeting its production and distribution requirements.

Subsequently, SAP was engaged to resolve these concerns. Along with other significant changes triggered by the ERP implementation, multi-node resources management was extended throughout its supply chain, along with a complete revamping of existing warehouse and distribution processes.

The consequent impacts allowed Cadbury to reduce overall operating costs, while its newly engaged supply chain produced significantly better production efficiencies throughout its manufacturing chain.

Key takeaway: For an ERP implementation to really pay off, you'll need to see improvements in key areas. A thorough ERP requirements gathering effort during the selection phase is therefore essential.

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Covering the key issues faced by businesses selecting and implementing ERP.

ERP case study #2: Nestle SA – Integration Excellence

As an enormous international candy-maker, Nestle SA headquartered in Konicki Switzerland, had harbored a goal of integrating ERP across all three of its operating companies; Nestle SA, Nestle UK, and Nestle USA.

The latter operation had been working toward complete integration of a set of ERP solutions since the late 90s, but various requirements, organizational, and policy problems had plagued the complete initiation.

By the turn of the millennium, its management finally decided that a holistic re-approach to its business requirements was in order. Consequently, this effort paid dividends that allowed SAP to finally get the $200 million job done.

Ultimately, positive business impacts included the consolidation of an outdated accounting structure, better and more efficient communications throughout its supply chain, and a much more confident workforce.

Key takeaway: Integration across different sites requires a lot of upfront effort - but it pays off in the long run.

Guide: ERP Implementation: 11 steps to success

 ERP case study #3: ABC Compounding – A Timely Switch

ABC Compounding, based in Atlanta, Georgia in the United States, provides industrial cleaning supplies to businesses around the world. Most of the products are private-labeled and they are sold through regional and national distributors. 

They had a legacy ERP that was no longer a good fit and that lacked essential tools such as planning, scheduling, and MRP. The solution for ABC Compounding was Sage ERP X3.

ABC Compounding employs about 150 people and presents an interesting study as most examples use much larger multinational companies.

ABC is a process manufacturing business. Some of their customers are in food processing and other industries that require FDA and similar control systems.

Myra Hager, chief information officer, had used Sage ERP X3 in a prior position and was familiar with its comprehensive manufacturing capabilities. “The time was right, and the pricing to make the switch was very competitive,” she says. A common thread among companies using ERP at the time.

New Sage functions

ABC lets the MRP function create work orders for us based on orders and stocking levels. Previously they printed reports, did separate calculations, and manually entered the work orders. There were often several hundred work orders active at once, each with dozens of items.  Eliminating the manual data entry tasks has been an enormous time saver.

Step-Saving Tools 

Intercompany transfers of inventory are common, as are transfers between site locations within each company. Using Sage ERP X3, such transfers are straightforward and easily traceable. Previously, ABC Compounding had to enter separate buy and sell transactions to transfer ownership of the material.

Sales and customer service staff appreciate the software’s easy and intuitive navigation. Six staff members that enter more than 200 orders each day. Speed is of the essence, and Sage ERP X3 provides the tools they need to quickly enter orders and answer any customers’ questions that arise throughout the work day.

Quick Access to Actionable Data 

The single biggest benefit of Sage ERP X3 to ABC Compounding is the easy access to critical information. The ability to drill down and tunnel around following a transaction is invaluable.

They have access to relevant documents and data with just a few clicks. The staff loves what they call the Left List, a display of tasks and data related to the screen they’re working on. It’s a quick way to navigate and uncover all the information we need.

Hager says it is still too early to accurately measure the actual return on investment ABC Compounding will realize with the switch to Sage ERP X3, but many dividends became obvious from the start.

“We have only been live for a short time, but already our team is positive about the contribution of Sage ERP X3,” she concludes. “It is a powerful ERP solution with strong manufacturing capabilities.

We have been able to abandon several third-party applications that we had needed, because the functionality they provided is part of Sage ERP X3. That saves us money and effort. In addition, the comfort level of relying on a software solution that uses a modern, industry-standard database and platform can’t be underestimated.”

Key takeaway: Success in ERP implementation can lead to significant efficiency gains, cost savings, and improved customer service, as evidenced by ABC Compounding's experience with Sage ERP X3.

To read about ERP implementations that didn’t go nearly as smoothly, click here .

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3 ERP Implementation Case Studies

Mark Jackley | Content Strategist | January 10, 2023

In This Article

Why Do ERP Implementations Fail?

Keys to successful erp implementation projects, your erp implementation starts by choosing the right system, erp implementation case study faqs.

Enterprise resource planning (ERP) software connects the most important functions of businesses—including financials and asset management, supply chain management, customer relationship management (CRM), and human resources. That’s why an ERP implementation is such a big deal. The payoff can be substantial: A single system to connect and standardize data in real-time gives teams across the business a shared view of performance—and one source of truth to improve decision-making and planning.

However, ERP implementations have potential pitfalls. If your project team fails to create a vision to guide the project, instill a spirit of teamwork among everyone involved, and communicate its objectives to employees, you might not solve your business challenges and get the results you need.

The following three case studies spotlight companies that did things right. By borrowing from their playbooks, your business can also enjoy the benefits of a successful ERP implementation.

1. A clear vision: Discover Financial Services moves to cloud ERP

In 2019, Discover Financial Services, the third-largest credit card brand in the United States, was running seven highly customized on-premises ERP systems. Their IT landscape was complex and lacked standardization, which resulted in slow and sometimes inaccurate reporting. Moreover, the accounting team and their counterparts in financial analysis and planning needed more scalable systems to support their growing workloads. After evaluating several vendors, Discover chose to simplify its environment by consolidating systems on Oracle Fusion Cloud ERP, integrated with Oracle Fusion Cloud Enterprise Performance Management (EPM).

The project team had a clear vision: The ERP implementation was more than an IT upgrade. It was an opportunity to create and sustain business value companywide, generating “more data and higher quality,” says Michelle Green, vice president, business technology: strategy, transformation, and governance. “Ultimately, the functionality and automation help us make more effective enterprisewide decisions.”

This vision helped Discover complete the ERP implementation on time and on budget, despite working remotely during the COVID-19 pandemic. “There are two things I look for in an implementation,” says Green. “The first is when people say the implementation was a nonevent. The second is when people start giving unsolicited feedback that they’re loving the systems. On day 15, post go-live, we heard both.”

The modernized ERP platform has paid off. With faster access to financial information, Discover employees companywide can more effectively manage expenses . Lines of business enjoy more accurate planning projections and cost analysis. With standardized functionality replacing customization, employees spend less time deciphering technology and more time achieving results. And with quarterly cloud functionality updates delivered automatically, Discover can continue to enhance its processes and ways of working.

2. Teamwork and trust: ERP helps Hormel Foods unify the business

With a long history of making strategic acquisitions, Hormel Foods owns more than 50 iconic brands, such as Dinty Moore, Planters Peanuts, SPAM, and Skippy Peanut Butter. But at one time, it also owned a patchwork of different IT systems.

“We had various systems for various companies that did not interface well together,” says Jim Sheehan, executive vice president and chief financial officer, Hormel Foods. “They did not provide us with a clear view of the company's performance, were difficult to maintain, and honestly, had become a burden to our competitiveness.”

In some cases, the human capital management (HCM) and ERP applications hadn’t been upgraded in more than 15 years. Some systems depended on a single person—“whoever remained who understood the code it was written on,” Sheehan says. Adding to the complexity, Hormel Foods had customized many of its applications to meet the needs of individual brands.

To simplify business processes and improve data quality, Hormel worked with KPMG to implement Oracle Cloud ERP, part of the Oracle Cloud Applications suite that now also supports Hormel’s supply chain management, enterprise performance management, and human resources.

“We had to rely on teamwork,” says Assistant Controller Eldon Quam. “We had Oracle, KPMG, and Hormel Foods people all working together. If you weren’t familiar with the group, you wouldn’t have known the difference between a Hormel Foods person and someone who worked for another company.”

When the ERP system went live, Hormel gained a unified system to standardize business processes, data, and decision-making. “We have visibility into every business from the same point of view,” Sheehan says.

Hormel Foods also has a forecasting model to pinpoint growth opportunities across its many brands. “In the past, we looked at things brand by brand,” says Jana Haynes, vice president and controller. “That’s still important to do, but now that we’re on a centralized platform, we’re able to notice things that weren’t apparent before.”

With procurement in all countries except China and Brazil now on the same platform, it’s easier to analyze vendors as well. For instance, the company discovered that some of its brands paid more than others for the same item. Hormel can also pinpoint the number of vendors that are the sole source of items its brands rely on. Knowing this allows the company to explore alternative sources and be ready should a vendor prove unable to meet demand.

With the entire company running on one ERP system, every brand does financial reporting in the same way. “Whether it’s their cash flow, their income statement, or their balance sheet items,” Sheehan says. In other words, all that teamwork enhanced their ability to operate as one team.

3. Employee buy-in: Taylor Corporation rallies support for digital transformation

A diversified global company that operates printing, data, and marketing businesses, Taylor Corporation embarked on a four-to-five-year effort to implement an ERP solution and modernize its back office, moving financial, supply chain, and manufacturing applications to Oracle Cloud. When all phases of the ERP implementation are completed, Taylor estimates it will see between $20 to $30 million in total cost savings.

CEO Charlie Whitaker has made it his personal mission to see the program succeed. On a kickoff video conference early in the implementation, Whitaker rallied the company’s 10,000 employees, urging them to see the program as key to Taylor’s growth and prosperity. He also led steering-committee meetings and working sessions with project team members.

“If you talk with Charlie, it's not an option to participate. It’s a requirement: Don’t debate it, participate in it, which I think is a fantastic message,” says Jenn Warpinski, Taylor’s vice president of enterprise transformation.

Several Taylor managers who were initially skeptical now are leading the way in bringing their colleagues around. “They’re now jumping in, and they’re doing the talking, they’re doing the change management,” Warpinski says.

Workforce support is necessary to succeed with such a transformational project. Indeed, the scope was significant: Taylor needed to consolidate data and business processes across 85 different systems, some of them no longer supported by vendors. Taylor wanted to make timely and informed financial and supplier decisions, automate manual processes that were costly and time consuming, and make it easier for customers to operate across the company’s business units.

For example, one of Taylor’s five multisubsidiary enterprise groups had customer information sitting in 16 different systems. That made it difficult for the group to cross-sell products across business lines. (Taylor units sell everything from printed wedding invitations to digital marketing services.)

Before phase one of the implementation—a global rollout of cloud financials completed in January 2022—it would take Taylor’s finance teams a couple of weeks to assemble a consolidated view of outstanding accounts receivable across the company. That data is now available for executives to act on in real time.

Now that Taylor is also live on cloud procurement applications, it can negotiate better volume discounts with approved indirect suppliers, while end users can get approvals and execute orders for supplies with just a couple of clicks.

One leading cause is failing to practice contingency planning. At the outset, implementation teams should identify likely causes of delays or cost overruns and plan accordingly. For instance, are there existing vulnerabilities in your company’s business model that need to be fixed before launching the project?

Unrealistic expectations are another reason for failure. If your timetable shrinks but your list of deliverables doesn’t, the ERP implementation could be doomed from the start, or at the very least become chaotic and expensive.

Some careful whiteboarding can help you avoid these potential problems. You can enjoy a successful ERP implementation with the right ERP provider, executive support, and a willingness to learn from other businesses’ successes and mistakes and a willingness to learn from other businesses’ successes and mistakes, you can enjoy a successful ERP implementation.

Besides crafting a vision, working as one team, and enlisting the support and patience of employees at all levels, other factors can lead to a successful ERP implementation. First, you’ll need to clearly define the project’s scope, objectives, and budget. A project team with the right expertise is another must. So are having plans for migrating data to the new system as well as a realistic timeframe for going live. A detailed change management plan that includes user training and education, such as the one Taylor created, is perhaps most critical to success.

Another ERP success factor: The system you implement should be easy for people to use. After all, simplifying the IT landscape and the user experience is a critical objective of any ERP system. If your implementation unfolds in stages, you can conduct periodic surveys to see if employees think the system is user friendly.

Your Complete Guide to Modern ERP

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Even if you devise a flawless implementation plan, it won’t yield great results if you choose the wrong ERP system. Look for a solution that can not only integrate disparate data and business processes but can also integrate with existing systems and applications your business will continue to run. Additionally, you’ll want capabilities that are purpose-built for functions, such as cash management or procurement, giving you faster and more accurate information to improve decision-making. It’s also smart to choose a system that can both monetize and measure business value as you plan new products and set pricing strategies.

Of course, your project management team should thoroughly assess ERP vendors. It’s important to listen carefully to what they can actually deliver, looking beyond basic features and capabilities. For example, what is their support offering like? What kind of training do they provide? What does the future look like—is the vendor truly invested in the emerging technologies you’ll need to compete? You’ll also want to hear what industry analysts, such as Gartner, say about cloud ERP solutions, including Oracle Fusion Cloud ERP.

Lastly, consider what else an ERP system can offer your company. Oracle’s solution, for example, includes built-in risk management tools that use AI and machine learning to strengthen financial controls. It also can integrate with your customer relationship management (CRM) system, so your front- and back-office teams can seamlessly share data.

What are the top challenges of ERP implementations?

Three of the most common challenges are:

• Defining a vision of what the ERP system needs to do and how to manage the implementation—who should lead it and set priorities
• Engendering trust and teamwork between the project team, your ERP provider, and your consulting partner
• Communicating with employees about how the implementation will benefit them, freeing up time from mundane tasks to do more interesting work

See how Oracle Cloud ERP gives you the agility to adopt new business models and processes quickly, helping you reduce costs, sharpen forecasts, and innovate faster.