Information Systems in Organizations

Inside Avon’s Failed Order-Management Project

http://www.informationweek.com/software/information-management/inside-avons-failed-order-management-project/d/d-id/1113100

Avon began an ERP project to implement a SAP based order management system, which was intended to go global. The project was piloted in Canada, but Avon decided against a global implementation after the software project went wrong. The new site that was launched in Canada combined SAP ERP and CRM applications with a front-end system built on IBM WebSphere e-commerce software. This new system caused Avon’s sales representatives many problems. The new mobile ERP system was suppose to allow sales reps to use the website as an easy and more efficient way to accept orders, reserve inventory, and communicate with other business units. However, they had difficulties logging into the new website and accepting orders on it.  This caused Avon to lose as many as 16,000 representatives across Canada. SAP was the main vendor in this project, but SAP only worked on the ERP and CRM applications. Avon used SAP as the back-end engine for order entry, but Avon used IBM WebSphere e-commerce software for the web front end.

1) Who do you think is to blame for this ERP failure- Avon, SAP, IBM WebSphere, the sales representatives, or a combination?

2) Chapter 7 talks about five recommendations that provide an understanding of some of the challenges involved in implementing enterprise systems: 1) Secure executive sponsorship, 2) Get help from outside experts, 3) Thoroughly train users, 4) Take a multidisciplinary approach to implementations, 5) Look beyond ERP. Which of these recommendations do you think Avon failed to do?

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