Summary: The National Australian Bank wrote down the asset value of its software by $409m, including a $200m writedown of its SAP-based group wide ERP system. Following a review the Bank delayed indefinitely the roll out of its Integrated Systems Implementation program, which was a group-wide project designed to be rolled out to all banks across the globe. Following a series of cost over-runs and implementation problems the relationship between NAB and its implementation partner Deloitte Consulting broke down and Deloitte sued NAB for $28m in unpaid feeds.
Article Title:NAB in $409m software disaster
Source: James Riley
Article Title: UK banks hit by SAP roll-out delays
Source: CW360, Antony Savvas
Summary: Problems with MFI’s SAP inventory system led it to issue a profits warning and fire two board members. MFI invested £50m in the system but faced additional costs of £30m to sort out problems with customer orders and fix the system.
Title: MFI and BA hit supply chain problems; Retailer and airline experience disruption to processes in SAP legacy systems update
Source: VNUnet.com, Computing, James Watson
Summary:Problems during the roll out of SAP supply chain software led to the sacking of three Hewlett Packard executive and hit Hewlett Packard’s bottom line. Quarterly results for the Enterprise Servers and Storage group saw a 5% fall in revenue to %3.4bn, a large part of this was due to problems with the implementation of a new order processing and supply chain system. The problems were quantified as costing the ESS group about $400m in revenue and $275m in operating profit. Hewlett Packard faced huge delays in delivering laptops, resellers said only 40% of laptops were delivered on time.
Title: SAP "Fusion" database delays cause massive HP product shortfall ; Update Delays all round
Source: The Inquirer, Esther Tigre
Date: 3/15/04, 09:54
SA Municipal Workers' Union
Summary:SA Municipal Workers' Union (SAMWU) says it is unhappy with the City of Cape Town's SAP payroll system, which it says has been unable to produce a flawless pay run since around July last year. There have been many problems since the implementation of the SAP system and in particular the payroll module.
Title: SAMWU unhappy with CT SAP system
Source: ITWeb, Stephen Whitford
Summary: Fluor had many problems installing SAP software, it replaced its CIO, ditched part of the software and took a $13m charge.
Title: Large Software Customers Refuse to Get With the Program; Some Corporate Buyers Start To Resist Forced Upgrades, Higher Maintenance Fees
Source: KEVIN J. DELANEY and DAVID BANK , Staff Reporters of The Wall Street Journal
Summary: Bata Ltd issued a claim against SAP Canada alleging that SAP installed "inadequate software, design flawed software" that ultimately forced the retailer to reinstate its own in-house system, which SAP was hired to replace. R/3 lacked "significant functionality" and was unable to manage footwear distribution, accounting and inventory, Bata claimed. The speed of processing orders across the chain slowed by at least 30 per cent, the shoe company alleged. The cost of the system increased to over $8m, from an estimated $2.8m and Bata cancelled the contract in 2001.
Article Title: Bata, SAP in contractual dispute over software program, retail sales taxes; Shoe giant claims system 'extremely cumbersome and retailer-unfriendly'
Source: The Globe and Mail, Keith Damsell, Technology Reporter
Summary:BOC lost £5m following problems with a SAP implementation in its US operation.
Article Title: SAP roll-out troubles cost BOC £5m
Summary: ICI had to write off a total of £25m as a result of a failed mySAP Business Suite supply chain software implementation in its Quest flavours and fragrances division. A profits warning issued by ICI resulted in a drop of 39% in its share price. The system went live in 2002 at 4 locations in the Netherlands but encountered problems from the start, with staff unable to locate materials and fulfil orders. As a result some of Quest’s customers defected to competitors and its chief executive left the company.
Summary: Milwaukee-based manufacturer Brady claimed its attempts to install SAP led to disruptions in its direct marketing business forcing it to miss its earnings targets. In total it missed revenue targets by 50%. Problems were attributed to the fact that data was loaded from other systems incorrectly, and Brady employees found it difficult to use the SAP software.
Article Title: Software troubles hit firm's bottom line
Source: ZDNet News, Alorie Gilbert
Summary: Problems with a SAP R/3 implementation brought the spare parts business at the locomotive unit of General Motors almost to a standstill. 6 months after the software went live, General Motors had to launch an emergency turnaround strategy. This involved reconfiguring the software, flushing it and repopulating it with clean data. General Motors claimed the applications were not properly configured to its business and so the aftermarket department could not forecast demand or manage its parts inventory.
Article Title: GM forced to take emergency measures
Summary:Volkswagen hit problems with the installation of a SAP R/3 system at its warehouse in Kassel in Germany, intended to help it extend its just in time supply of spares. Problems occurred in making the new installation work, VW’s warehouse was so big SAP had to modify its software, and in data conversion and synchronisation, which VW staff had to work over Christmas to sort out.
Title: VW in trouble over SAP roll-out Source: Computer Weekly, Mike Simons
Summary: Following its merger with Kwik Save, Somerfield, the UK supermarket group, delayed plans for a company-wide roll out of SAP R/3 whilst it evaluated cheaper alternatives.
Article Title: SAP plans on hold Source: Computer Weekly, Bill Goodwin
Summary:Problems with a newly installed SAP system at Whirlpool led to missed and delayed shipments. This led to Home Depot cancelling an agreement to sell Whirlpool appliances and would instead sell appliances from its rival Maytag. The agreement with Home Depot was reportedly worth $650m in annual sales. Whirlpool lost the ability to track orders properly, it decided to focus on larger orders from its main customers, but this meant it overlooked Home Depot, whose stores typically placed small individual orders.
Article Title: SAP Software Snarls Cost Whirlpool a Contract With Home Depot
Date: San Rafael, California, April 28
Article Title: Whirlpool latest to hit ERP production snags; Whirlpool blames SAP R/3 installation for shipping delays
Summary:WH Smith’s roll out of its SAP system to its newspaper and magazine distribution depots was reported to be £8m over its £15m budget. Problems faced by newsagents, who claimed they had to clear up delivery problems in the areas covered by the SAP system, led to threats of legal action.
Article Title: SAP under fire from retailers
Source: Computer Weekly, Bill Goodwin
Summary:The BBC announced that its implementation of SAP R/3, begun in 1994 and expected to be completed by 2000, would not now be competed until 2001 or later due to technical difficulties and organizational resistance.
Article Title:UK: DEADLINE FOR BBC SAP INSTALLATION EXTENDED.
W W Grainger
Summary: For three consecutive quarters problems related to the installation of a new SAP R/3 system have hit earnings at W W Grainger. Profits for the fourth quarter were expected to be as much as 45% below expectations and problems with the system have already cost Grainger $19 million in lost sales and $23 million in reduced earnings in the second and third quarters of 1999.
Article Title: ERP Woes Hit Grainger Again; W.W. Grainger's SAP R/3-based enterprise resource planning software hurts earnings for third consecutive quarter