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Case StudyPresented –
Tapomoy Das
Anjula Singh.
Fahid Latheef
Nidhi singh
Rupal Goyal
Ashish Bastia
Vidushi
Lokesh
Shreya Tripath
Soumya Ramakrishnani
Aditya Malpani (Group -3)
Factual Data
No of –
• Retail Stores – 47
• Chemists 1300 – Growth Rate of 30%
DISTRIBUTION
planning to increase by 2,50,000 stock aided by Information
1500 (2013) PRODUCTS System
NETWORK keeping units
• Stockists - 70,000
TURNOVER
Widespread distribution REACH
25,044 unique STOCK
In 2011: US$ 26.61
in Delhi and U.P. and products KEEPING UNITS
million
planning expansion in
By 2013 : US$ 38.56
Punjab
million
Reckitt Benckiser Group plc (RB), is a British multinational consumer goods company.
Secondary: -
In addition to that they had planned to also shift the hardware to the
cloud in the next phase.
What happened?
Barcode Scanning problem
From the first transactions, the new program was unable to read some
barcodes to generate an invoice.
Unexpected Network Outage
The following day, the network refused to support the store’s
processes, and “Network Down” was declared.
Lack of Communications/Compatibility between third parties
Due to lack of proper compatibility among NDPL, the cloud provider
and the Internet provider, NDPL faced communication issue.
How it could have been prevented?
NDPL took the path of ERP based on cloud and it was a failure. There
would have been two possible ways of doing the same.
Sales Revenue
1500
1000
500
Sales Revenue
Million INR
-500
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Year
IT Financials
2,500,000
2,000,000
COST IN INR
1,500,000
1,000,000
500,000
-
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
YEAR
IT FINANCIALS
Learning
Check whether the problem is fixable or not-
Instead of completely dumping the program, modification could have
been done.
Proper testing-
NDPL went live with the ERP-on-cloud without serious and repeated
testing.
Expect Extended timelines and plan accordingly-
Statistics show that 59% of ERP projects end up taking longer to
implement than originally projected.
Doing proper Research and Information Gathering
Learning(Cont…)
Setting Realistic Budget Expectations-
Though ERP can be a very powerful tool for business but with that
comes increased cost of implementation.
Connectivity Issue
Since the cloud provider and the Internet provider were two separate
entities, connectivity issues resulted, which in turn affected the round-
the-clock availability of the software.
How can you measure the success or failure?
As the final verdict was to revert to the previous arrangement of
purchasing software instead of opting cloud, this clearly indicates a
failure of the aforementioned initiative.
Metric to measure Success/Failure
Uptime of the ERP system which includes application uptime,
network downtime, response time etc.
Infrastructure requirements were not studied well.
Data compatibility should have been studied before the proceedings.
Lack of user awareness and customer dissatisfaction.
Vendor lock in.
Timely reconciliation of books
Data accuracy and integrity checks and occurrences
Porter's five forces analysis
Threat Of
Entry
(Low)
Competition
Supplier Buying
Power Enjoyed Power
First mover
(Low) (Low)
advantage
Threat Of
Substitute
(Few)