Revlon faced significant challenges in implementing their new ERP system. The document outlines 15 problems that contributed to Revlon's ERP failure, including a lack of focus on business needs, unrealistic timelines, inadequate testing and training, and failure to properly plan and prepare for the operational impact. As a result, Revlon was unable to fulfill $64 million in sales orders. The document provides solutions to each problem area to help ensure a successful ERP implementation.
Revlon faced significant challenges in implementing their new ERP system. The document outlines 15 problems that contributed to Revlon's ERP failure, including a lack of focus on business needs, unrealistic timelines, inadequate testing and training, and failure to properly plan and prepare for the operational impact. As a result, Revlon was unable to fulfill $64 million in sales orders. The document provides solutions to each problem area to help ensure a successful ERP implementation.
Revlon faced significant challenges in implementing their new ERP system. The document outlines 15 problems that contributed to Revlon's ERP failure, including a lack of focus on business needs, unrealistic timelines, inadequate testing and training, and failure to properly plan and prepare for the operational impact. As a result, Revlon was unable to fulfill $64 million in sales orders. The document provides solutions to each problem area to help ensure a successful ERP implementation.
Revlon faced significant challenges in implementing their new ERP system. The document outlines 15 problems that contributed to Revlon's ERP failure, including a lack of focus on business needs, unrealistic timelines, inadequate testing and training, and failure to properly plan and prepare for the operational impact. As a result, Revlon was unable to fulfill $64 million in sales orders. The document provides solutions to each problem area to help ensure a successful ERP implementation.
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REVLON ERP Implementation Challenges
Marmita Paul | 20-42037-1
Zerin Tasnim | 20-43032-1 Abdullah Al-Amin | 20-42575-1 Prisila Saha | 19-39759-1 Md. Nafish Sadique Shad | 21-45540-3 Content
• Introduction • What is ERP and How its work? • Cost of ERP Failure • Causes of ERP Failure & Solution
Date Footer 2 Introduction ERP is an application that automates business processes and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources. ERP implementation involves several steps, including planning, analysis, design, development, testing, deployment, training and support, and maintenance and upgrades. The process aims to meet an organization's needs.
Date Footer 3 Cost of ERP Failure
The cost of ERP failure can vary depending on the size and complexity of the organization and the severity of the failure. The cost can include lost revenue, legal fees, lost productivity, data recovery costs, and reputational damage. In extreme cases, an ERP failure can lead to the collapse of a business or organization. "As a result of the poor preparation and planning of the implementation of the ERP system, Revlon was unable to fulfill product shipments of approximately $64 million of net sales," claims a lawsuit filed in the U.S. District Court in New York by The Rosen Law Firm on behalf of an investor. Problems responsible for ERP Failure & Solution
Problem 1: Failure to focus on Business outcome over
technology • Failed to prioritize business outcomes over technology during their ERP implementation. Proposed Solution: • Ensure dedicated time and resources for mapping their current and desired workflows. Problems responsible for ERP Failure & Solution
Problem 2: Failure to Confirm System Requirements
• They did not thoroughly confirm system requirements during their ERP implementation. Proposed Solution: • Conduct thorough system requirement analysis and testing to ensure the ERP system. Problems responsible for ERP Failure & Solution
Problem 3: Lack of Process Documentation
• Lacked proper documentation of their business processes, leading to confusion and inefficiencies during ERP implementation. Proposed Solution: • Invest in documenting their business processes in detail to provide clear guidance during ERP implementation. Problems responsible for ERP Failure & Solution
Problem 4: Failure to Secure Adequate Funding (Lack of Top
Management Support) • Faced challenges in securing adequate funding for their ERP implementation. Proposed Solution: • Ensure strong top management support and secure adequate funding for ERP implementation. Problems responsible for ERP Failure & Solution
Problem 5: Failure to Set Realistic Implementation Timelines
(Unrealistic Goals) • Faced issues with unrealistic implementation timelines, leading to rushed and incomplete implementation.
Proposed Solution: • Set realistic implementation timelines based on thorough analysis and planning to allow for proper testing, training, and quality assurance. Problems responsible for ERP Failure & Solution
Problem 6: Failure to Choose a Project Leader
• They did not designate a dedicated project leader for their ERP implementation.
Problem Solution: • Appoint a competent and experienced project leader to oversee the entire ERP implementation process. Problems responsible for ERP Failure & Solution
Problem 7: Failure to Capacity Plan
• They did not adequately plan for capacity and resource requirements during ERP implementation.
Problem Solution: • Conduct proper capacity planning to ensure smooth and uninterrupted ERP implementation. Problems responsible for ERP Failure & Solution
Problem 8: Underestimation of operational impact
• failed due to underestimating the operational impact of the new system.
Problem Solution: • Conduct a comprehensive gap analysis to identify potential challenges and areas that may be impacted by the ERP implementation. Problems responsible for ERP Failure & Solution
Problem 9: Failure to Choose the Right Implementation Partner
• Faced challenges in choosing the right implementation partner.
Problem Solution: • Conduct thorough due diligence in selecting an experienced and reliable implementation partner. Problems responsible for ERP Failure & Solution Problem 10: Failure to Cleanse Data • They did not properly cleanse their data before ERP implementation.
Problem Solution: • Invest in data quality and cleansing projects before implementing ERP to ensure accurate and trustworthy data for the new system. Problems responsible for ERP Failure & Solution Problem 11: Failure to Test Implementations Prior to Rollout
• They did not conduct thorough testing of the ERP system
before rollout, leading to functional and performance issues post-implementation.
Problem Solution: • Conduct comprehensive testing to identify and resolve any issues before ERP system rollout. Problems responsible for ERP Failure & Solution
Problem 12: Lack of Disaster Testing
• They did not adequately test disaster recovery and backup plans during ERP implementation.
Problem Solution: • Conduct thorough disaster recovery and backup testing to ensure data protection. Problems responsible for ERP Failure & Solution
Problem 13: Failure to Invest in Change Management
• They did not invest enough in change management initiatives during ERP implementation.
Problem Solution: • Invest in change management initiatives to ensure smooth transition and acceptance of the new ERP system by employees. Problems responsible for ERP Failure & Solution Problem 14: Hiring the Wrong People for the Job • Faced challenges in hiring the right talent with adequate expertise and experience for their ERP implementation, leading to skill gaps and inefficiencies.
Problem Solution: • Ensure proper recruitment and selection of qualified and experienced personnel for ERP implementation. Problems responsible for ERP Failure & Solution
Problem 15: Failure to Invest in Employee Training
• They doesn’t provide adequate training to their employees for the new ERP system.
Problem Solution: • Invest in comprehensive training programs to upskill and educate employees on the functionalities. Conclusion
The ERP implementation challenges faced by Revlon were
complex and had significant impacts on their operations and financial performance. Revlon must take a strategic and holistic approach to ERP implementation, considering business outcomes, operational impact, process documentation, change management, and employee training. Thank You
