Posted: May 25th, 2022

An innovation projecting a failed project

Systems Implementation

System Implementations

Describe the company, the business problem the company was addressing with the system implementation, the system chosen to implement, and the company’s rationale for selecting the system to solve the problem.

Wal-Mart, a company that enjoys a significant market share in the U.S. food industry, rolled out its multi-phased project. This marked the beginning of implementing the company’s long ditched in-house IT systems, which favored their operations with vendors. However, implementation of the SAP system is already raising red flags. This is because the system comes with costly financial works, which have strained the company (Scheck, 2010). While the project was aimed at leading the firm to growth, Wal-Mart recorded a significant sales decline. This was one of the company’s worst performance over three decades now, been beaten by new corporations from Germany and South Korea. As local competitors maintained the pace set by Wal-Mart, most customers became culturally alienated from the company choosing to opt for rival products. In fact, as winter approached, most faithful Wal-Mart clients have spent much on gasoline and natural gas. These people do not intend to become enthusiastic shoppers that queue at Wal-Mart stores (Jacobs, 2012).

Wal-Mart has been ranked as one of the biggest and vats companies than some nations. However, it appears to experience a fickle perpetual success and growth in overseas markets. Instead of making further expansions, the firm should design ways of dealing with the prevailing economic realities. This involves focusing on alternative priorities. For instance, one alternative priority would be to deliver the failed RFID promise. With great anticipation, the company blindly introduced the SAP project. Perhaps they should have developed new capacities of IT to maintain the complex logistics, be consistent with supplier systems and meticulous clients. The implementation of SAT as Wal-Mart’s corporate goal that lacks chances to succeed was an innovation projecting a failed project (Hellens, Nielsen, Beekhuyzen & Ebrary, 2008).

2. Evaluate the circumstance that leads to the failure indicating the factors that management failed to consider and how each impacted the failed implementation.

If managers are fast at implementing SAP, they are likely to realize the sustainable and significant business benefits from service deliveries that fulfill the company’s needs. The management should be free to concentrate on strategic work founded on value addition and access better talents and workforce. Better talents lead to improved ways of delivering services; a way that would have put Wal-Mart at a competitive advantage. In the interest of implementing SAP systems, Wal-Mart did not have a vision of SAP solutions that fit into the strategic objectives of the company. Therefore, they were incapacitated to apply fast SAP solutions at minimal costs, based on lower risks. This failed to facilitate the success of the solution because the management did not conduct a test drive on the new system and processes (Ramachandran, 2007).

The management failed to embrace the implementation of SAP fully because they lacked awareness of the high costs associated with the project. This led to lower earning that expected, particularly in the negative and short-term returns on investment. The huge investments in SAP have drawn massive criticism leading to plunging stock prices. The failure of the project can be attributed to poor management, which failed to structure Wal-Mart to adopt the system effectively. Therefore, planning was essential for the management to implement the system successfully. The management should not have lost sight of the fact that the primary objective was to achieve improved business performance. Because they did not increase productivity and performance, the firm wasted resources on adopting SAP and transforming a system based on legacy (Hellens, Nielsen, Beekhuyzen & Ebrary, 2008).

The management failed to conduct effective re-implementation and pre-planning activities; Wal-Mart was not prepared and did not have effective plans to adopt SAP implementation adequately. It takes time to enforce organizational practices and culture. The legacy system that employees had developed familiarity with had become a legacy and adopting a new system proved to be challenging. For employees to adapt to SAP system, they must demonstrate the need for the new system. This means that the management is charged with ensuring employees understand why the SAP system may be preferred to the legacy system. This involves explaining tot hem the benefits of implementing the change. Necessary training must accompany this for them to adapt to the system. In this regard, managers must ensure a smooth transition from the old version to the new model to prevent nay efforts of employee resistance (Ramachandran, 2007).

3. As an IT Auditor, propose recommendations to the company’s management team prior to the implementation indicating how each may have increased the chance for a successful systems implementation.

Most system implementations fail due to poor training. If an organization does not invest in training, then, chances are high that the new system will slow down business. Experts have noted that even the most successful implementations have recorded problems with end users in adapting to the change. Often, this has put many projects in jeopardy. Organizations need to squash training into the final phase of the implementation cycle. Most project managers focus on teaching users tactics of navigating through new systems; if the users do not grasp the significance of the system, they are expected to be reluctant to change. An organization must prioritize quality employee training. This must incorporate a training manager because this is fundamental in the outset of the implementation process and training of users should be tailored around the business processes. Employee education can be enhanced using Internet, newsletters, and workshops where regular updates on the importance of the project are provided (Ramachandran, 2007).

Similarly, creating a culture of communication and cooperation by co-locating external and internal teams can foster an attitude of can-do. Neither the management nor the workforce can deliver change independently. The performance of employees must be closely monitored and ensure the organizational commitments are met. Whenever successful milestones are reached, the management should incorporate the workforce and vendors in the celebrations. Risks are inevitable in any project implementation. Therefore, a project team must be successful in planning for success by concentrating on an in-depth possible risk assessment (Hellens, Nielsen, Beekhuyzen & Ebrary, 2008).

4. Assess whether or not the risk was worth it to the company, the ultimate outcome of the system implementation, and the resulting impact to the business.

Wal-Mart’s plan to implement SAP systems for improving financial reporting hit a snag. The company failed to assess how the project had failed in previous installations such as Asda. A close analysis reveals that SAP implementation did not give the company the ability to enhance their inventory valuing methodology under the inventory accounting retail method. The firm had failed to better its capacity of measuring stock at granular levels. In the long run, Wal-Mart failed to replace their ageing accounting models with innovative and flexible systems. The company had embraced this switch because of the need to standardize a single-based approach by gaining improved financial control. As they wished to enhance financial monitoring, they failed to increase capacity before implementing the SAP resource planning system. This would have provided a top down analysis of the accounting operations (Scheck, 2010).

With the failure of the Asda pilot installation, the retail giant was plunged in losses following a series of failed attempts. In connections to a series of implementations and coincidental failures in the financial systems, implementation of SAP did not give them the ability to enhance the methods for inventory valuing under the accounting inventory. It is clear that the firm experienced management challenges during the implementation of the project. These challenged were significant in preventing them from successful implementation in all phases of the project. The new system is not performing as designed because the management issues have not been addressed (Jacobs, 2012).

References

Hellens, L, Nielsen, S., Beekhuyzen, J., & Ebrary, Inc. (2008). Qualitative case studies on implementation of enterprise wide systems. Hershey, PA: Idea Group Pub.

Jacobs, A.J. (2012). Information system implementations: Using a leadership quality matrix for success. S.l.: Authorhouse.

Ramachandran, S. (2007). Digital VLSI systems design: A design manual for implementation of projects on FPGAs and ASICs using Verilog. Dordrecht, Netherlands: Springer.

Scheck, D.E. (2010). Implementation project for traffic signal monitor/recorder and analysis system. Athens, Ohio: Dept. Of Industrial & Systems Engineering, Ohio University.

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