National Grid & SAP $1 Billion Upgrade Cost

Published 2014/10/27 | By

http://www.businessinsider.com/national-grid-sap-1-billion-upgrade-cost-2014-10

I chose this article because it demonstrates what could happen if an ERP isn’t implemented with complete thought and limited time and what the consequences are. Plus the natural disaster of Hurricane Sandy brings in the reality of an opportunity to present a new ERP. The article doesn’t mention why they approved a new ERP or what was wrong with the previous one but this issue has been discussed before and it’s relevant to our discussion on ERP . It’s important not to be desperate for changes to be made because it will cost in the end. If you’re interested in more detail about the issues that caused the financial hardship the other articles are linked below. Some of the numbers are off as far as the before and after costs but this article is the most recent and updated.

Here are the other articles linked to this topic:

http://www.computerworld.com/article/2494622/enterprise-applications/sap-payroll-software-woes-plague-electric-utility-for-months.html

http://www.computerworld.com/article/2691661/enterprise-software/cost-of-troubled-sap-project-will-skyrocket-to-nearly-1-billion-audit-says.html

Questions

1. In the case of a natural disaster, would it be best to implement a new ERP or stick with the original? If so, why?

2. If you find the flaws while implementing the ERP and they can be fixed, do you still try to implement the system or stop the project altogether?

3. Do you think it was a wise decision for SAP and NG to continue with the project?

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National Grid & SAP $1 Billion Upgrade Cost

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