Failure of the project Essay Example | Topics and Well Written Essays - 750 words

Failure of the project - Essay Example Without the help of each group in the company any effort geared to boost the performance of a firm is set to fail. Laying off the experienced staff members and replacing them with temps. This is one of the worst decisions that the company made. Though the company will eventually lay off its entire experienced staff member due to mechanization, the company should have done this gradually in order for the staff to be familiar with the new system. Replacing experienced staff with temps became detrimental as these do not have knowledge on the operations and were probably not given training. Extremely low bids for projects. The company felt very secure in their new technology that even though their decisions would eventually led to the accumulation of huge losses, they still push through because they are desperate for new clients and deals and at the same time hoping that that these losses will be recovered by the new system. Company's reluctance to hear about problems regarding SAP. As the management became confident that SAP will be the cure of their present problems, they were not able to come up with contingency plans to answer what if situations. This implies that the management was not able to know the possible pitfalls in the system which needed to be addressed. Overlooked customer. ... As the customers were not served properly with the new system, its performance and overall image in the community suffered. Aside from these managerial decision pitfalls, the company's external environment also contributed to its demise. The bankruptcy of its largest customer Phar Mor, Inc. also became a significant factor. 2. Who was responsible' For example, what role did FoxMeyer's information technology group play in the failure' As described above, the management team of FoxMeyer largely contributed to the fall of the company due to the decision it implemented. The information technology group can also be responsible as it appears that it had not thoroughly determined the feasibility of using SAP in the company. Also, as problems were not identified in the new system, possible solutions were not laid out in response to problems encountered in the implementation. It is also worth mentioning that the company became nearsighted and was not able to apply the new technology at the right time. The case exemplified that the whole company is not yet ready and was not made ready by the management in adopting a more advanced technology to aid it in its operation.