--- title: "The ERP Hall of Shame: Lessons from Target Canada & More" number: 78 date: 2024-04-03 url: https://trevin.co/writing/the-erp-hall-of-shame-target-canada standfirst: "Seven famous ERP failures, from Target Canada to Hershey, share the same causes: untested systems, unrealistic scope, poor partner fit and go-lives timed for the worst possible moment." topics: ["ERP programs"] --- # The ERP Hall of Shame: Lessons from Target Canada & More Seven famous ERP failures, from Target Canada to Hershey, share the same causes: untested systems, unrealistic scope, poor partner fit and go-lives timed for the worst possible moment. ### The ERP Hall of Shame: Lessons from Target Canada & More Welcome to the grand tour of the ERP Hall of Shame, where we uncover the most monumental flops in the history of enterprise technology. These aren't just any stories; they're epic tales of ambition, missteps, and, yes, massive financial faceplants. So, grab your popcorn and let's take a stroll down memory lane, learning from the misadventures of companies that dared to dream big but fell even bigger. ### Target Canada: A Bullseye Miss - **Partner Organization:** SAP - **What Went Wrong:** Target aimed to take Canada by storm but got caught in an ERP blizzard instead. Imagine setting up a chain of stores overnight but forgetting how to keep the shelves stocked. That was Target, thanks to its ERP system failing to communicate. - **Business Impact & Estimated Loss:** A cool $2 billion and a hasty retreat out of Canada. - **Lesson Learned:** Even retail giants can get tripped up by technology. The moral of the story? Test, then test again. And maybe don't try to open 124 stores at once on a brand-new ERP system. ### National Grid vs. Wipro: Shocking Outcomes - **Partner Organization:** Wipro - **What Went Wrong:** Picture this—your utility company decides to go high-tech but ends up shocking everyone, and not in a good way. System overruns, cost blowouts, and a whole lot of "Why is my bill so high?" - **Business Impact & Estimated Loss:** Around $945 million, with sparks flying everywhere. - **Lesson Learned:** Clear communication and realistic project scopes are your friends. Oh, and if your implementation partner starts making promises that sound too good to be true—they probably are. ### Lidl's Billion-Dollar Oops - **Partner Organization:** SAP - **What Went Wrong:** Lidl wanted a shiny new ERP system but ended up with a very expensive paperweight. After seven years and $500 million, they realized that maybe, just maybe, their old system wasn't so bad. - **Business Impact & Estimated Loss:** Half a billion dollars and a return to square one. - **Lesson Learned:** If you're going to spend a fortune on new tech, make sure it actually fits your business model. Customization can cost you more than just money—it can cost you time you'll never get back. ### HP's Misguided Migration - **Partner Organization:** It was an inside job—HP tried to consolidate its ERP systems and ended up consolidating its losses instead. - **What Went Wrong:** Imagine moving all your furniture to a new house, only to realize the house is actually a small apartment. HP tried to fit its big business into a too-small tech solution, leading to order chaos. - **Business Impact & Estimated Loss:** A staggering $160 million in vanishing revenues. - **Lesson Learned:** Bigger isn't always better. Sometimes, trying to centralize everything just leads to a monumental mess. Also, knowing your own size helps. ### Waste Management vs. SAP: Throwing Away Millions - **Partner Organization:** SAP - **What Went Wrong:** Waste Management hired SAP to help it stop wasting time, but all they got was more waste—of money, that is. They were promised a custom-fit, but the software was more one-size-fits-nobody. - **Business Impact & Estimated Loss:** Over $100 million tossed into the bin. - **Lesson Learned:** When buying software, make sure it's not just vaporware wrapped in a pretty package. Also, one person's trash is definitely not another's treasure in ERP land. ### Revlon's Not-So-Pretty Results - **Partner Organization:** Not publicly specified, but let's just say it was a makeover gone wrong. - **What Went Wrong:** Revlon tried to beautify its supply chain with a new ERP system but ended up with a logistical look that no one wanted. - **Business Impact & Estimated Loss:** Investors weren't happy, leading to a drop in stock prices and a class-action lawsuit to boot. - **Lesson Learned:** Transparency is key. Don't put on a brave face when your ERP project is looking a little rough around the edges. And maybe have a backup plan for your backup plan. ### Hershey's Halloween Horror Story - **Partner Organization:** A trio of SAP, Siebel, and Manugistics. - **What Went Wrong:** Hershey's ERP system was supposed to be sweet, but it turned Halloween into a nightmare when they couldn't deliver the goods—literally. - **Business Impact & Estimated Loss:** Missed shipments, unhappy customers, and a spooky 8% drop in sales. - **Lesson Learned:** Don't try to implement a new ERP system right before your busiest season. Also, chocolate is too important to be left in the hands of a faulty supply chain. ### And There You Have It! The ERP Hall of Shame is filled with tales of caution, reminding us that while technology can lead to incredible efficiency gains, the path is fraught with pitfalls. The biggest lesson? Choosing the right implementation partner is crucial, but so is planning, testing, and preparing for the unexpected. Remember, in the world of ERP implementations, a little humor can go a long way, especially when you're navigating through the tech wilderness. So, next time you're planning an ERP overhaul, just think of Target Canada, and maybe, just maybe, take it a bit slower.