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Case Study 1

The document discusses Hershey's Enterprise 21 Project which aimed to streamline business processes, increase profits, and replace legacy systems to address Y2K issues, but they encountered problems when implementing their new ERP system due to a lack of top management oversight, moving too quickly with the implementation, and not properly training employees on the new rigid data entry processes of the new system. It provides recommendations such as taking a phased approach, limiting changes, and involving workers.

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Mythes Jica
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859 views2 pages

Case Study 1

The document discusses Hershey's Enterprise 21 Project which aimed to streamline business processes, increase profits, and replace legacy systems to address Y2K issues, but they encountered problems when implementing their new ERP system due to a lack of top management oversight, moving too quickly with the implementation, and not properly training employees on the new rigid data entry processes of the new system. It provides recommendations such as taking a phased approach, limiting changes, and involving workers.

Uploaded by

Mythes Jica
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study 1

Roselle Ablir
Clint Joy Amorin
Erica Esturas
Marjorie Navaja

1. Refer to the Hershey case. What were the goals and details of the Enterprise 21
Project?
The Enterprise 21 Project was approved to help fix the Y2k problem and to upgrade
Hershey’s IT environment into a twenty-first century system. The following goals are:
 Establish a single company-wide supply chain strategy across all divisions.
 Streamline entire business process by reengineering all the functional areas
throughout the company.
 Use new supply chain efficiencies to help increase gross margin.
 Maintain sales growth of at least 3-4 percent per year.
 Save $75-80 million by the end of 2002 through corporate restructuring and the
closing of older distribution sites.
 Replace existing legacy software due to Y2k date-related problems.
 Replace legacy mainframe IS with an enterprise client-server architecture.

2. Refer to the Hershey case. What were some of the key problems that Hershey
encountered when choosing, integrating, and implementing their new ERP system?
The company lacked the proper people at top management level to make important
decisions on implementation. Lower level managers were making decisions that were
aligned to their functional areas of business with no one at the top integrating these
decisions to create a system that would work for the whole business. Hershey also tried to
implement too many changes too fast. The three new software applications that was
replaced became too overwhelming and was dropped. Hershey then decided to go with
the Big Bang implementation which was a direct cut over strategy instead of a phased in
approach. Data entry in the new ERP system created another problem because employees
were not trained for the rigid data entry due to the fact that their legacy system was
flexible in how data was stored.

3. (1) Good slowly and use a phased- in approach


(2) Train the worker to get use to the rigid data required system
(3) A team of top management must steer the launch of software
(4) Keep simple and limit the number of software application once a time
(5) Functional group must communicate with IT on data request
(6) Get worker involved in process map

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