ERP Failure Case Study - Hershey’s

Summary

This video discusses the importance of strategic implementation and key lessons from top business leaders, including Bernard Arnault. It covers the challenges of managing large-scale projects, such as the difficulties faced during go-live phases and the importance of choosing the right system integrator. The video emphasizes the need for proper planning, risk mitigation, and avoiding common pitfalls like budget cuts and timeline compression. By highlighting successful case studies and practical advice, the video provides insights into achieving smooth software implementation and business transformation while avoiding operational disruptions.

Takeaways

• 😀 Business consultants must understand the importance of selecting the right software and system integrators for success.
• 😀 One key lesson from successful companies is learning from case studies, especially those involving high-profile clients and big projects.
• 😀 Implementing new software can cause significant disruptions if not managed properly, such as operational delays and issues during a go-live phase.
• 😀 Timing is crucial when going live with new software; for instance, avoiding major holidays can reduce customer dissatisfaction.
• 😀 System integrators play a vital role in ensuring the success of a software implementation project.
• 😀 The right software and system integrators can make or break a project, so it’s critical to choose carefully and plan appropriately.
• 😀 Project implementation requires a solid understanding of organizational change management to ensure smoother transitions and fewer disruptions.
• 😀 Business consultants should be prepared to adjust their strategies and bring in additional help when necessary to avoid project failures.
• 😀 Failure to follow through with key steps in the implementation process, such as proper risk mitigation and timing, can result in lost revenue and productivity.
• 😀 A compressed timeline or unrealistic budget can lead to issues during project implementation, including unanticipated complications and operational delays.

Q & A

What key lesson does Bernard Arnault teach in the video?

The video discusses business lessons inspired by Bernard Arnault, focusing on leadership and the strategies behind building a successful business empire, particularly in private leasing and luxury goods.

What challenges did the team face during the implementation of the project?

The team faced challenges such as system integration issues, operational disruptions, and difficulties with timely execution, including trying to go live during a holiday season, which created additional complications for the business and its customers.

What is emphasized as a critical factor in ensuring a project's success?

Choosing the right system integrator and ensuring that they are capable of guiding the project toward successful execution are emphasized as critical factors in project success.

How important is the selection of software in the discussed business context?

Selecting the right software is crucial as it supports business operations, ensuring smooth execution and minimizing operational disruptions. The video also highlights the importance of working with the right software vendors and partners.

Why is organizational change management mentioned as important in the implementation process?

Organizational change management is highlighted as crucial because it helps businesses adjust to new systems and processes, minimizing resistance and ensuring that the transition to new technologies or methods is smoother and more efficient.

What is the significance of system integrators in business transformation?

System integrators play a pivotal role in business transformation by ensuring that the implementation of new software systems is smooth and effective. Their expertise in integrating various systems is necessary to avoid disruptions.

What does the transcript suggest about time management in project implementation?

The transcript suggests that managing timelines effectively is essential, as the team faced compressed timelines and budget constraints, which made the project more challenging to implement without compromising on quality or causing significant delays.

How does the video describe the role of vendors in the implementation process?

Vendors are described as important partners in the implementation process. It stresses that having reliable vendors who can provide the necessary tools and support is crucial to ensuring the project's success.

What lesson is learned from the challenges faced during the 'go live' phase?

The lesson learned is the importance of thorough preparation before going live, as rushing into this phase without adequate testing or planning can result in significant operational disruptions and negative impacts on customer experience.

What does the video suggest about handling operational disruptions during project implementation?

The video advises that businesses need to plan for potential disruptions, providing adequate support and resources to manage any issues that may arise. It emphasizes the importance of clear communication and readiness to address problems promptly.