Case Study - Hershley

1145 Words5 Pages
1. What were the goals and details of the Enterprise 21 project? Ans – Enterprise 21 had several goals, which includes  Upgradation and Standardization of the Hardware.  Moving from Main frame-based network to a client-server environment.  Replace existing legacy software because of Y2K date-related problems.  Main goal is to improve and streamline internal business processes to meet the demands of their suppliers.  Establish a single companywide supply chain strategy across all divisions.  Use new supply chain efficiencies to help increase gross margin.  Save $75-80 million by the end of 2002 through corporate restructuring and the closing of order distribution sites.  Maintain sales growth of at least 3 to 4 percent per year. Duration for the project was 48 months and as the project was modified, the company had only 39 months to complete the project. During that Hershey's information systems management set as a goal a move to an ERP system using software from SAP AG of Walldorf, Germany. In addition the company decided to install software from Siebel Systems Inc. of San Mateo, California. Siebel's software would aid Hershey in managing customer relations and in tracking the effectiveness of its marketing activities.Management believed that the project would help Hershey better execute its business strategy of emphasizing its core mass-market candy business. Afterward, Hershey Foods said it had completed an upgrade to—on schedule and below budget.It was a significant turnaround for a company that had become an example of how not to do a major software project. In 1999, Hershey stumbled while rushing to complete an enterprise systems overhaul, with a new SAP implementation at its core. Basic order management and fulfillment processes broke down, causing the company to fail to meet

More about Case Study - Hershley

Open Document