Examples of Failures of IS

24 Feb

The most common failure in any information system implementation is end user rejection. This is true of many projects including ERP ,EDRMS and FMIS. What makes information system deployments  that much more challenging  is that they are in essence change management projects not technical projects. Failure to acknowledge this core issue will result in failure to meet the project objectives

An example of a company who tried to introduce an information system but failed doing so is Hersheys Foods Corporation. They’re project was an IBM-led installation and integration of SAP, Manugistics Group Inc. and Siebel Systems Inc. software.

To meet the Halloween and Christmas candy rush, Hershey compressed the rollout of a new $112 million ERP system by several months. But inaccurate inventory data and other problems caused shipment delays and incomplete orders. Hershey sales fell 12% in the quarter after the system went live-down $150.5 million compared with the year before. (computerworld.com)

Similarly , Fox Meyer Corporation launched a SAP ERP system in 1996 with lead the company the bankruptcy.(computerworld.com)  The failure of the ERP from two perspectives: Failure of planning and failure of implementation.


  • FoxMeyer did not listen toother consultants’ advice in the early stage of the project.
  • Only few end users participated in the analysis, and design process. So there was a communication gap between the users and the system planners.


  • Due to the rushed schedule, some modules testing was skipped. Besides, the system was not properly tested to identify its shortcoming in handling large amounts of orders. http://www.higheredbcs.wiley.com)

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