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4 Lessons You Can Learn from the Most Talked-About ERP Failure Stories

Implementing enterprise resource planning (ERP) software is a massive decision for any business big or small. It can aid in managing day-to-day activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.

However, such a system can also strike fear and cause costly issues when not implemented effectively. Take it from the massive ERP disasters that Nike, Avon, Hewlett-Packard, and Waste Management have experienced.

Keep reading to find out what lessons can the above companies’ failure stories can teach businesses that are looking to invest in an ERP system.

Lesson #1: Test Every Aspect of the ERP Software

Who would have thought that a big player in the sportswear industry like Nike have had their chips? Yes, the multinational shoe and apparel brand has a story about failure.

Back in 2000, Nike did a $400 million upgrade to its supply chain and ERP systems. Sadly, the upgrades in the i2 software contained a glitch, resulting in $100 million lost sales and a 20 percent stock dip.

This ERP disaster should serve as a warning to all businesses. It is important to test every aspect of the ERP application before it goes to lives. Doing this helps to determine if the ERP software meets the business’ needs and produces the desired output.

As what Nike’s famous slogan says, “Just do it!”. Check it now or face the costly consequences later.

Lesson #2: Align the Software to Your Processes

Avon Products Inc., one of the world’s leading beauty companies, is known for its unwavering success. You did your research well if you’re aware that it also faced failure at one point.

In 2013, the makeup giant began an ERP project to implement an SAP-based order management system in its four regions. After rolling out the system for testing in Canada, the company found that the ERP application doesn’t perform its intended purposes.

Avon’s sales representatives had difficulties logging into the new website and accepting orders on it. This discouraged the reps from utilizing the system, causing Avon to lose as many as 16,000 makeup sellers across Canada.

This scenario implies the importance of aligning a particular system for the business. It helps to ask questions such as “Can it keep my business running?” or “Will my staff find it useful?” before implementing it.

Lesson #3: Make a Detailed Implementation Plan

Hewlett Packard also has a disastrous attempt at implementing multiple enterprise systems across their offices.

While its intention of transitioning the region into a simplified group of ERP applications is a clever idea, the company failed to look at the possible effects on team collaboration and the software per se.

The communication and software broke down just when the demand for HP’s products increases, which caused the project to fail. The failed project cost over $160 million—a copious amount of money that can overhaul its business processes and drive costs down.

Gilles Bouchard, HP’s Executive Vice President, noted that the company should have made a contingency plan for four, five, or six weeks. That is what HP’s ERP failure warns businesses about: to have a detailed action plan in place.

Lesson #4: Manage Communications Effectively

Like the first three companies, Waste Management Inc. rolled out an ERP implementation plan to improve productivity and save time, as well as costs.

Unfortunately, things did not turn out well for the trash disposal company. The 18-month enterprise resource planning deal with SAP ended in disaster. WM claimed that they had been fooled by the SAP sales team because the demo they presented did not materialize.

SAP, on the other hand, said that the project failure had been entirely due to Waste Management’s inability to provide key information and delegate adept employees to the project. After a court trial, the case was finally settled in 2010.

To avoid falling into this trap, businesses should maintain clear communications with the ERP software vendor. Both parties should be on the same page to complete the project successfully.

The Bottom Line

Implementing an ERP software solution may offer its users a wide range of benefits. It can help to improve reporting, increase work efficiency, reduce costs, and streamline processes, among others.

But no matter how useful the tool is, ERP implementation fiascos would still be possible—the above ERP failure stories are enough evidence. So if you’re planning to invest in such a system, make sure to keep the above lessons in mind.

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The Secret Recipe to Make Mobile Apps Popular

With the recent boom in the number of mobile app development companies in Dubai, it is somewhat clear that mobile apps can offer more value to business as compared to a mobile website. The Smartphone market is flooded with advanced devices offering remarkable features for downloading and running mobile apps seamlessly.

On an average, a Smartphone owner uses around 23 apps in a day. Going with this fact, where mobile phone companies are investing in new and innovative hardware and software technology, business owners are looking towards app developers who can bring some new ideas to make great apps. These days, apps are considered as a selling object, so we compiled a list of ingredients that makes apps popular, great and fail-safe.

1. The good first impression: The burgeoning app market is full of apps designed with the best user interface. Make sure yours stand out of the rest. Mobile apps should be designed by keeping in mind the small touch screen. Moreover, the logical path of any app should be easy. If your app lacks obvious navigation, the chances are high that users will delete it right away.

Each mobile app should be designed with the context of what users care about. From design and navigation to content, everything which loads instantly on their mobile screen should be exactly what the users want or expect. To enjoy a large user base, make sure your app not only looks good but also performs smooth.

2. Figure out why your rival’s app is lucky: Not necessarily every business owner is leveraging the skilled expertise of Internet Marketing Company in Dubai to make the apps popular. Some apps are getting a considerable amount of praise because of the publicity behind its successful launch, whereas others really have the spark to fulfill the users’ needs. Either way, you should know your market to have a strategy to make your mobile app popular. Consider the price of the app, its performance capabilities on different platforms and new menu structures and style of buttons that make one app more appraisable than the other.

3. Decipher the user’s need: As discussed above, mobile app development companies in Dubai belong to a burgeoning sector where each mobile app is considered as a saleable object. But for the sake of your mobile app, rather than thinking about the business point anticipate the users’ expectations. Developing a mobile app is easy, but maintaining its quality to be on top is a tough game. Regardless of the development platform and technology you have, your mobile app won’t belong to the category of successful apps until it defines the user’s needs.

When you have designed a fantastic app just the ways your users want it to be. The next step is to work tirelessly to ensure the app is streamlined with the current market trends. With evolving technology, the customer preferences will be changed, so be prepared to adapt the changing user needs by providing constant updates that fix errors and provide new features to please the users.

The mobile app market is facing a cut-throat competition, from games, shopping to business and motivational, you will find apps in every category. Gone are the days, when mobile phone owners used to spend their time on the same photo editing app or mobile game app for ages. In this competitive marketplace, your rivals are sneaking out every chance to maintain good relationships with the users. On the other hand, mobile users are also inclined to the thought to delete and move to the rival’s app when an app is not smooth to their expectations. So be aware of the market and bring what people care about in an app.

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How to be a Great Money Coach to your Kids

Enriched Academy founders Kevin Cochran and Jay Seabrook have always been passionate about teaching children and young adults the basics of personal finance. Jay and Kevin originally visited schools to work on their public speaking skills, but they soon found there was a real need and interest for teaching kids about money. This became the basis for starting Enriched Academy and while we now focus on Canadian financial literacy for all ages, our passion for teaching kids has never waned. We recently had our financial education services selected for use in the Alberta Public School system, and we also work with various school boards and colleges across the country. Over the years, we have continuously refined our school programs and have compiled a great list of tips below to help all of you at-home financial educators teach your kids about money matters. 1. Don’t call it an allowance A weekly allowance starting around age seven is a good idea but be careful; it’s not something that’s received, it’s earned, and children need to know the difference. A checklist of weekly tasks and some “pay” for doing each one is a great way to instill this idea. Reinforce the concept by designating a regular “payday” each week. 2. Don’t assume it’s too difficult Should you buy stock for a 10-year-old – absolutely! There are plenty of kids whose parents took the time and effort to explain shareholding and how it works. Kids are very familiar with many publicly traded companies like Disney, Roblox, Mattel and McDonalds. Holding a few shares may not return enough to put them through college, but it will teach them the basics of investing, risk, and return for managing their finances in the future. 3. Don’t stop your kids from occasionally buying junk Rather than prohibiting younger kids from buying something that doesn’t meet your threshold for play value or quality, let them buy it once in a while and learn a lesson about value (see #5). A mood ring is usually interesting for about a day-and-a-half, and $5 won’t break the bank. If someone learns to better evaluate their purchases in the future, it was money well-spent. 4. Don’t give an advance on their allowance The number one financial problem from young adults to retirees is spending money they don’t have – usually with a high-interest credit card. The need for instant gratification is a never-ending struggle but building up resistance while still young will help keep it in check during later life. For big-ticket items, write down your savings goal and create a tracking chart together with your kids to help them visualize their progress. 5. Don’t talk about cost, talk about value and need “How much better is an iPhone 12 than an iPhone 10… well, 2 of course!” If your tween wants that latest and greatest must-have item, challenge them to explain the value beyond being new, trendy, or fashionable. A 30-speed MTB may impress his friends, but does your 12-year-old really need thirty gears to get around the neighbourhood? There is a reason lots of millionaires (and billionaires like Warren Buffett) drive plain cars – it’s all they really need! Financial habits start young and last a lifetime so it’s important to get your kids off on the right foot. After all, you don’t want to be the one paying for their household expenses after they leave home or bailing them out of credit card debt when a lack of financial education catches up with them as a young adult. There is no reason to not have frank and open discussions with your kids about money and getting started early will just make it more comfortable and natural as they grow older. Thank you!

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