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Case Studies of Successful Enterprise Resource Planning

Enterprise Resource Planning (ERP)  solutions are vital for all kinds of companies, especially those that are growing or very large.

ERP may also be discussed within the corporate setting as Information Management Technology (IMT) , or it may have other code names.

Companies look to software providers for help in managing all kinds of enterprise resources . Some of the biggest needs fall in the categories of accounting, financial analysis, human resource management, client relations, manufacturing, supply chain, and inventory management. Some of the largest solution providers include Oracle , IBM, SAP , Salesforce , and Microsoft.

Below are a few ERP success stories to help understand some companies’ biggest challenges and goals in this area.

Key Takeaways

• Choosing the Oracle ERP Cloud solution helped Western Digital merge three businesses.
• In 2018, Walmart announced a five-year agreement with Microsoft for Microsoft Azure, which creates a framework for multiple ERP systems.
• The TD Bank Group of companies also contracted with Microsoft Azure for a cloud framework that can integrate multiple capabilities and create more digital innovation opportunities.

Western Digital

Western Digital is a technology company with offerings in the areas of data, data storage, data systems, and data solutions. A merger of Western Digital, SanDisk, and HGST was a big challenge for the company around 2019. With the merger, Western Digital wanted to centralize ERP so that all three companies could better work together.

After final deliberations among two providers, the company went with the Oracle ERP Cloud. This choice also followed with an Oracle Suite of products that included solutions for performance management and analytics, all integrated together.

The major benefits of the Oracle choice included integrations from the three businesses across the following:

• Cost center management
• Information technology
• Human resource management
• Payroll processing
• Streamlined systems for forecasting business analytics and forecasts
• Workforce planning
• Comprehensive dashboards and automated reporting
• Improved customer relationship analysis
• Systems all running efficiently in the cloud for easier accessibility and document management

As of August 2022, Walmart is one of the top fifteen largest companies in the United States by market capitalization. Sales for the company in FY 2022 were over $570 billion.

The company operates globally with brick and mortar supercenters, discount stores, and neighborhood markets. It owns hundreds of brands, including the well known Sam’s Club. To successfully keep its shelves stocked it works with thousands of suppliers. Its e-commerce business is also a behemoth, with a long list of online seller partnerships. The sheer size of Walmart’s business is one of its greatest advantages, but also challenges when it comes to ERP.

Walmart works with many ERP providers. In 2018 however, it announced a strategic partnership for building out a digital transformation through Microsoft Azure. Benefits of the Microsoft Azure relationship include:

• Building out a cloud-based enterprise system that serves as the framework for managing all of its resources
• The capability to plug-in existing ERP applications to the Microsoft Azure framework
• Integration of Microsoft 365
• Broader and more efficient opportunities for e-commerce
• Broader opportunities for automated warehousing capabilities
• Use of artificial intelligence for supplier relationships
• Integration with SAP Hana and other legacy inventory management solutions
• Integration with blockchain-based solutions that are evolving

TD Bank Group

A migration to a sound cloud framework was also the driver for a relationship between TD Bank and Microsoft for the Microsoft Azure ERP. For the TD Bank Group, some of its biggest challenges are centered around digital storage and the digital experience for customers.

With Microsoft Azure, the TD Bank Group will also integrate Office 365. Some of the greatest benefits TD Bank will experience with its Azure relationship include:

• Enhancements in derivative pricing and risk management for TD Securities
• Integrations for its proprietary data and analytics database used in cross-bank reporting
• Integrations with artificial intelligence developments through its subsidiary Layer 6
• Greater opportunities for managing TD Bank customer relationships and digital experiences

The Bottom Line

ERP systems are usually big-ticket projects with high costs and varying timeframes. Often, the commitment to an ERP system is one a company hopes to keep over the long haul. Comprehensively, a company can utilize many different ERP solutions and providers, which can create a lot of compatibility complexity.

Oracle. " Inside Western Digital's Massive Cloud ERP Migration ."

CompaniesMarketCap. " Largest American Companies by Market Capitalization ."

Walmart. " 2022 Annual Report ," Page 53.

Walmart. " Walmart Establishes Strategic Partnership with Microsoft to Further Accelerate Digital Innovation in Retail ."

Microsoft. " TD and Microsoft Enter into a Strategic Relationship to Power the Future of Digital Customer Experiences ."

Microsoft. " TD Bank Group: Focused on Making Every Customer Experience Legendary ."

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3 successful ERP implementation case studies to learn from

Because of the high degree of complexity associated with large-scale ERP implementations, over time the proportion of successful outcomes tends to become fifty-fifty propositions from a business case perspective.

ERP case study #1: Cadbury – A Sweet Success

Our first successful ERP implementation case study focuses on Cadbury, a 123-year-old confectioner currently owned by American snack foods conglomerate Mondelēz International. The company was on an accelerated growth track while facing problems meeting its production and distribution requirements.

Subsequently, SAP was engaged to resolve these concerns. Along with other significant changes triggered by the ERP implementation, multi-node resources management was extended throughout its supply chain, along with a complete revamping of existing warehouse and distribution processes.

The consequent impacts allowed Cadbury to reduce overall operating costs, while its newly engaged supply chain produced significantly better production efficiencies throughout its manufacturing chain.

Key takeaway: For an ERP implementation to really pay off, you'll need to see improvements in key areas. A thorough ERP requirements gathering effort during the selection phase is therefore essential.

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ERP case study #2: Nestle SA – Integration Excellence

As an enormous international candy-maker, Nestle SA headquartered in Konicki Switzerland, had harbored a goal of integrating ERP across all three of its operating companies; Nestle SA, Nestle UK, and Nestle USA.

The latter operation had been working toward complete integration of a set of ERP solutions since the late 90s, but various requirements, organizational, and policy problems had plagued the complete initiation.

By the turn of the millennium, its management finally decided that a holistic re-approach to its business requirements was in order. Consequently, this effort paid dividends that allowed SAP to finally get the $200 million job done.

Ultimately, positive business impacts included the consolidation of an outdated accounting structure, better and more efficient communications throughout its supply chain, and a much more confident workforce.

Key takeaway: Integration across different sites requires a lot of upfront effort - but it pays off in the long run.

Guide: ERP Implementation: 11 steps to success

 ERP case study #3: ABC Compounding – A Timely Switch

ABC Compounding, based in Atlanta, Georgia in the United States, provides industrial cleaning supplies to businesses around the world. Most of the products are private-labeled and they are sold through regional and national distributors. 

They had a legacy ERP that was no longer a good fit and that lacked essential tools such as planning, scheduling, and MRP. The solution for ABC Compounding was Sage ERP X3.

ABC Compounding employs about 150 people and presents an interesting study as most examples use much larger multinational companies.

ABC is a process manufacturing business. Some of their customers are in food processing and other industries that require FDA and similar control systems.

Myra Hager, chief information officer, had used Sage ERP X3 in a prior position and was familiar with its comprehensive manufacturing capabilities. “The time was right, and the pricing to make the switch was very competitive,” she says. A common thread among companies using ERP at the time.

New Sage functions

ABC lets the MRP function create work orders for us based on orders and stocking levels. Previously they printed reports, did separate calculations, and manually entered the work orders. There were often several hundred work orders active at once, each with dozens of items.  Eliminating the manual data entry tasks has been an enormous time saver.

Step-Saving Tools 

Intercompany transfers of inventory are common, as are transfers between site locations within each company. Using Sage ERP X3, such transfers are straightforward and easily traceable. Previously, ABC Compounding had to enter separate buy and sell transactions to transfer ownership of the material.

Sales and customer service staff appreciate the software’s easy and intuitive navigation. Six staff members that enter more than 200 orders each day. Speed is of the essence, and Sage ERP X3 provides the tools they need to quickly enter orders and answer any customers’ questions that arise throughout the work day.

Quick Access to Actionable Data 

The single biggest benefit of Sage ERP X3 to ABC Compounding is the easy access to critical information. The ability to drill down and tunnel around following a transaction is invaluable.

They have access to relevant documents and data with just a few clicks. The staff loves what they call the Left List, a display of tasks and data related to the screen they’re working on. It’s a quick way to navigate and uncover all the information we need.

Hager says it is still too early to accurately measure the actual return on investment ABC Compounding will realize with the switch to Sage ERP X3, but many dividends became obvious from the start.

“We have only been live for a short time, but already our team is positive about the contribution of Sage ERP X3,” she concludes. “It is a powerful ERP solution with strong manufacturing capabilities.

We have been able to abandon several third-party applications that we had needed, because the functionality they provided is part of Sage ERP X3. That saves us money and effort. In addition, the comfort level of relying on a software solution that uses a modern, industry-standard database and platform can’t be underestimated.”

Key takeaway: Success in ERP implementation can lead to significant efficiency gains, cost savings, and improved customer service, as evidenced by ABC Compounding's experience with Sage ERP X3.

To read about ERP implementations that didn’t go nearly as smoothly, click here .

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3 ERP Implementation Case Studies

Mark Jackley | Content Strategist | January 2023

In This Article

Why Do ERP Implementations Fail?

Keys to successful erp implementation projects, your erp implementation starts by choosing the right system, erp implementation case study faqs.

Enterprise resource planning (ERP) software connects the most important functions of businesses—including financials and asset management, supply chain management, customer relationship management (CRM), and human resources. That’s why an ERP implementation is such a big deal. The payoff can be substantial: A single system to connect and standardize data in real-time gives teams across the business a shared view of performance—and one source of truth to improve decision-making and planning.

However, ERP implementations have potential pitfalls. If your project team fails to create a vision to guide the project, instill a spirit of teamwork among everyone involved, and communicate its objectives to employees, you might not solve your business challenges and get the results you need.

The following three case studies spotlight companies that did things right. By borrowing from their playbooks, your business can also enjoy the benefits of a successful ERP implementation.

1. A clear vision: Discover Financial Services moves to cloud ERP

In 2019, Discover Financial Services, the third-largest credit card brand in the United States, was running seven highly customized on-premises ERP systems. Their IT landscape was complex and lacked standardization, which resulted in slow and sometimes inaccurate reporting. Moreover, the accounting team and their counterparts in financial analysis and planning needed more scalable systems to support their growing workloads. After evaluating several vendors, Discover chose to simplify its environment by consolidating systems on Oracle Fusion Cloud ERP, integrated with Oracle Fusion Cloud Enterprise Performance Management (EPM).

The project team had a clear vision: The ERP implementation was more than an IT upgrade. It was an opportunity to create and sustain business value companywide, generating “more data and higher quality,” says Michelle Green, vice president, business technology: strategy, transformation, and governance. “Ultimately, the functionality and automation help us make more effective enterprisewide decisions.”

This vision helped Discover complete the ERP implementation on time and on budget, despite working remotely during the COVID-19 pandemic. “There are two things I look for in an implementation,” says Green. “The first is when people say the implementation was a nonevent. The second is when people start giving unsolicited feedback that they’re loving the systems. On day 15, post go-live, we heard both.”

The modernized ERP platform has paid off. With faster access to financial information, Discover employees companywide can more effectively manage expenses . Lines of business enjoy more accurate planning projections and cost analysis. With standardized functionality replacing customization, employees spend less time deciphering technology and more time achieving results. And with quarterly cloud functionality updates delivered automatically, Discover can continue to enhance its processes and ways of working.

2. Teamwork and trust: ERP helps Hormel Foods unify the business

With a long history of making strategic acquisitions, Hormel Foods owns more than 50 iconic brands, such as Dinty Moore, Planters Peanuts, SPAM, and Skippy Peanut Butter. But at one time, it also owned a patchwork of different IT systems.

“We had various systems for various companies that did not interface well together,” says Jim Sheehan, executive vice president and chief financial officer, Hormel Foods. “They did not provide us with a clear view of the company's performance, were difficult to maintain, and honestly, had become a burden to our competitiveness.”

In some cases, the human capital management (HCM) and ERP applications hadn’t been upgraded in more than 15 years. Some systems depended on a single person—“whoever remained who understood the code it was written on,” Sheehan says. Adding to the complexity, Hormel Foods had customized many of its applications to meet the needs of individual brands.

To simplify business processes and improve data quality, Hormel worked with KPMG to implement Oracle Cloud ERP, part of the Oracle Cloud Applications suite that now also supports Hormel’s supply chain management, enterprise performance management, and human resources.

“We had to rely on teamwork,” says Assistant Controller Eldon Quam. “We had Oracle, KPMG, and Hormel Foods people all working together. If you weren’t familiar with the group, you wouldn’t have known the difference between a Hormel Foods person and someone who worked for another company.”

When the ERP system went live, Hormel gained a unified system to standardize business processes, data, and decision-making. “We have visibility into every business from the same point of view,” Sheehan says.

Hormel Foods also has a forecasting model to pinpoint growth opportunities across its many brands. “In the past, we looked at things brand by brand,” says Jana Haynes, vice president and controller. “That’s still important to do, but now that we’re on a centralized platform, we’re able to notice things that weren’t apparent before.”

With procurement in all countries except China and Brazil now on the same platform, it’s easier to analyze vendors as well. For instance, the company discovered that some of its brands paid more than others for the same item. Hormel can also pinpoint the number of vendors that are the sole source of items its brands rely on. Knowing this allows the company to explore alternative sources and be ready should a vendor prove unable to meet demand.

With the entire company running on one ERP system, every brand does financial reporting in the same way. “Whether it’s their cash flow, their income statement, or their balance sheet items,” Sheehan says. In other words, all that teamwork enhanced their ability to operate as one team.

3. Employee buy-in: Taylor Corporation rallies support for digital transformation

A diversified global company that operates printing, data, and marketing businesses, Taylor Corporation embarked on a four-to-five-year effort to implement an ERP solution and modernize its back office, moving financial, supply chain, and manufacturing applications to Oracle Cloud. When all phases of the ERP implementation are completed, Taylor estimates it will see between $20 to $30 million in total cost savings.

CEO Charlie Whitaker has made it his personal mission to see the program succeed. On a kickoff video conference early in the implementation, Whitaker rallied the company’s 10,000 employees, urging them to see the program as key to Taylor’s growth and prosperity. He also led steering-committee meetings and working sessions with project team members.

“If you talk with Charlie, it's not an option to participate. It’s a requirement: Don’t debate it, participate in it, which I think is a fantastic message,” says Jenn Warpinski, Taylor’s vice president of enterprise transformation.

Several Taylor managers who were initially skeptical now are leading the way in bringing their colleagues around. “They’re now jumping in, and they’re doing the talking, they’re doing the change management,” Warpinski says.

Workforce support is necessary to succeed with such a transformational project. Indeed, the scope was significant: Taylor needed to consolidate data and business processes across 85 different systems, some of them no longer supported by vendors. Taylor wanted to make timely and informed financial and supplier decisions, automate manual processes that were costly and time consuming, and make it easier for customers to operate across the company’s business units.

For example, one of Taylor’s five multisubsidiary enterprise groups had customer information sitting in 16 different systems. That made it difficult for the group to cross-sell products across business lines. (Taylor units sell everything from printed wedding invitations to digital marketing services.)

Before phase one of the implementation—a global rollout of cloud financials completed in January 2022—it would take Taylor’s finance teams a couple of weeks to assemble a consolidated view of outstanding accounts receivable across the company. That data is now available for executives to act on in real time.

Now that Taylor is also live on cloud procurement applications, it can negotiate better volume discounts with approved indirect suppliers, while end users can get approvals and execute orders for supplies with just a couple of clicks.

One leading cause is failing to practice contingency planning. At the outset, implementation teams should identify likely causes of delays or cost overruns and plan accordingly. For instance, are there existing vulnerabilities in your company’s business model that need to be fixed before launching the project?

Unrealistic expectations are another reason for failure. If your timetable shrinks but your list of deliverables doesn’t, the ERP implementation could be doomed from the start, or at the very least become chaotic and expensive.

Some careful whiteboarding can help you avoid these potential problems. You can enjoy a successful ERP implementation with the right ERP provider, executive support, and a willingness to learn from other businesses’ successes and mistakes and a willingness to learn from other businesses’ successes and mistakes, you can enjoy a successful ERP implementation.

Besides crafting a vision, working as one team, and enlisting the support and patience of employees at all levels, other factors can lead to a successful ERP implementation. First, you’ll need to clearly define the project’s scope, objectives, and budget. A project team with the right expertise is another must. So are having plans for migrating data to the new system as well as a realistic timeframe for going live. A detailed change management plan that includes user training and education, such as the one Taylor created, is perhaps most critical to success.

Another ERP success factor: The system you implement should be easy for people to use. After all, simplifying the IT landscape and the user experience is a critical objective of any ERP system. If your implementation unfolds in stages, you can conduct periodic surveys to see if employees think the system is user friendly.

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Even if you devise a flawless implementation plan, it won’t yield great results if you choose the wrong ERP system. Look for a solution that can not only integrate disparate data and business processes but can also integrate with existing systems and applications your business will continue to run. Additionally, you’ll want capabilities that are purpose-built for functions, such as cash management or procurement, giving you faster and more accurate information to improve decision-making. It’s also smart to choose a system that can both monetize and measure business value as you plan new products and set pricing strategies.

Of course, your project management team should thoroughly assess ERP vendors. It’s important to listen carefully to what they can actually deliver, looking beyond basic features and capabilities. For example, what is their support offering like? What kind of training do they provide? What does the future look like—is the vendor truly invested in the emerging technologies you’ll need to compete? You’ll also want to hear what industry analysts, such as Gartner, say about cloud ERP solutions, including Oracle Fusion Cloud ERP.

Lastly, consider what else an ERP system can offer your company. Oracle’s solution, for example, includes built-in risk management tools that use AI and machine learning to strengthen financial controls. It also can integrate with your customer relationship management (CRM) system, so your front- and back-office teams can seamlessly share data.

What are the top challenges of ERP implementations?

Three of the most common challenges are:

• Defining a vision of what the ERP system needs to do and how to manage the implementation—who should lead it and set priorities
• Engendering trust and teamwork between the project team, your ERP provider, and your consulting partner
• Communicating with employees about how the implementation will benefit them, freeing up time from mundane tasks to do more interesting work

See how Oracle Cloud ERP gives you the agility to adopt new business models and processes quickly, helping you reduce costs, sharpen forecasts, and innovate faster.

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Case Study: Successful ERP Implementation

case study, erp, erp system

Enterprise Resource Planning (ERP) systems have become a cornerstone in the operations of businesses worldwide. These systems integrate all facets of an enterprise into a single, coherent structure, simplifying and unifying processes such as planning, purchasing, inventory, sales, marketing, finance, and human resources. The importance of ERP systems is underscored by their ability to streamline workflows, improve efficiency, and ultimately, drive profitability. In today’s digitally-driven business landscape, ERP systems are not just advantageous they have become practically indispensable, gaining widespread recognition and adoption.  

To underscore the significance and showcase the efficacy of ERP systems, let’s delve into real-world applications. These case studies will illustrate how diverse businesses have successfully integrated ERP systems, reaping substantial benefits in terms of efficiency, workflow optimization, and overall profitability. By analyzing these examples, businesses can gain a clearer understanding of how ERP systems function in practice and how to maximize their potential. Therefore, without further ado, let’s explore three illuminating case studies. 

3 Successful ERP Implementations 

Case Study: ERP Implementation at Nestlé  

Nestlé, a multinational food and beverage corporation, undertook an ambitious project to standardize its operations and processes worldwide. The key step in achieving this goal was the successful implementation of SAP’s ERP system.  

Nestlé initiated the ERP implementation process with a comprehensive analysis of their existing systems and processes in their various locations worldwide. By undertaking a detailed audit, the company identified areas of improvement and potential challenges that could arise during the integration of the ERP system.  

Once these areas were identified, a dedicated team was formed to oversee the implementation. This team, composed of IT experts and process owners, worked closely with SAP to tailor the ERP system to Nestlé’s unique needs. Rather than rushing the implementation, the team opted for a phased approach, allowing for continuous testing and fine-tuning of the system. 

The roll-out of the ERP system was done incrementally, with the system first being implemented in the company’s less complex markets. This strategic approach allowed the team to gain experience and insights, which were then applied to the subsequent roll-outs in more complex markets.  

Throughout the implementation process, Nestlé placed great emphasis on training its employees to use the new system effectively. This was essential to ensuring a smooth transition and maximizing the system’s benefits. Despite facing initial challenges, Nestlé’s careful planning and execution resulted in a successful ERP implementation, leading to improved efficiency and standardization of processes across its global operations.  

Case Study: ERP Success at Cisco Systems  

Cisco Systems, a worldwide leader in IT and networking, also embarked on an ERP implementation journey. The company recognized the need for a comprehensive, integrated solution to manage its complex operations and chose Oracle’s ERP system. 

The implementation at Cisco Systems was strategic and highly structured. The company assembled a cross-functional team, comprising representatives from each department, to oversee the process. Cisco further streamlined the implementation by focusing on standardizing and simplifying operations before starting the system configuration. 

Cisco opted for a “big bang” approach, launching the entire ERP system at once, which was a risky yet rewarding strategy. This method required extensive planning, testing, and employee training, but the outcome was a fully functional ERP system in a relatively short timeframe. 

The success of the ERP implementation at Cisco Systems was measured in several ways. Post-implementation, the company reported considerable improvements in inventory management, financial consolidation, order tracking, and customer service. The ERP system provided Cisco with a unified view of its operations, leading to more informed decision-making and strategic planning. 

Additionally, the ERP system allowed for streamlined processes and reduced redundancy. With improved efficiency and reduced operational costs, Cisco was able to allocate more resources towards innovation and strategic growth, positioning the company for long-term success. 

Overall, despite the challenges and extensive efforts involved, the implementation of the ERP system at Cisco Systems was a resounding success. The company’s experience serves as a valuable example of the potential benefits an ERP system can bring when implemented effectively and strategically. 

Case Study: ERP Transformation at Hershey’s  

Hershey’s, a global confectionery giant, embarked on an ERP transformation journey to streamline its operations and increase efficiency. The company chose SAP’s ERP system with the aim to integrate various aspects of its business such as finance, procurement, manufacturing, and distribution. 

The implementation of ERP at Hershey’s was strategically planned and executed. The company began by mapping out their existing processes and identifying areas for improvement. The insights gained from this initial step guided the customization of the ERP system to suit Hershey’s specific needs. 

Hershey’s assigned a dedicated team of IT professionals, business process owners, and consultants from SAP for the implementation. The team followed a phased approach, initially rolling out the system in areas of the business that were less complex, before moving on to the more intricate aspects of the company’s operations. This allowed for consistent testing and refinement of the system throughout the implementation process. 

To ensure a smooth transition, Hershey’s invested heavily in training its employees. Prior to rolling out the ERP system, the company conducted comprehensive training sessions to familiarize employees with the new system and processes. This proactive approach significantly reduced resistance and enhanced the adoption rate of the new system within the company. 

Post-implementation, Hershey’s reported a marked improvement in business processes efficiency, inventory management, and data accuracy. The ERP transformation was a significant success at Hershey’s, demonstrating the power of a well-implemented ERP system in driving operational excellence and business growth. 

Reasons for ERP implementations failure  

Despite the potential benefits, ERP implementation doesn’t always end successfully. Several factors can lead to ERP failure, which we’ll delve into below: 

1/ Poor Planning and Management  

Inadequate planning and management are often at the root of unsuccessful ERP implementations. ERP systems are complex and require a strategic approach, including setting clear objectives, defining roles and responsibilities, and developing a detailed implementation plan. 

2/ Insufficient Training and Change Management  

ERP systems introduce significant changes to business processes and workflows. If employees don’t receive adequate training, or if the changes are not appropriately managed, the ERP implementation is likely to fail. 

3/ Lack of Stakeholder Buy-In  

For an ERP implementation to succeed, it requires support and cooperation from all involved, from top-level management to end-users. Lack of stakeholder buy-in can lead to resistance, hampering the implementation process. 

4/ Choosing the Wrong ERP System  

Not all ERP systems are created equal, and not every system will be a good fit for every business. Choosing an ERP system that doesn’t align with the company’s specific needs and objectives can lead to implementation failure. 

5/ Over Customization  

While ERP systems can and should be tailored to a company’s unique needs, over-customization can be problematic. It can make the system overly complex, difficult to maintain, and may even cause functionality issues. 

Understanding these potential pitfalls can help businesses better prepare for ERP implementation, increasing the likelihood of success and maximizing the benefits derived from these potent systems. 

Conclusion  

In conclusion, ERP system implementation can significantly transform businesses by optimizing processes, improving efficiency, and fostering informed decision-making. However, the success of an ERP transformation is contingent on strategic planning, adept management, appropriate training, and stakeholder buy-in. Moreover, selecting a suitable ERP system and avoiding over-customization are critical considerations. Cisco Systems and Hershey’s serve as prominent examples of effective ERP implementation. Their experiences underscore the transformative potential of ERP systems when implemented thoughtfully and strategically. Yet, the challenges cannot be overlooked. By understanding and mitigating potential pitfalls, businesses can maximize their chances of ERP implementation success, thereby leveraging this powerful tool to drive operational excellence and business growth. 

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Successful ERP Implementation Case Study: Schlumberger and Scrum Inc.

Enterprise Resource Planning (ERP) software can be a critical component of business success. But customizing and implementing these complex systems can be difficult and extremely expensive.

This case study examines how Schlumberger partnered with Scrum Inc. to successfully land their large scale ERP implementation.

Delivering products and services in more than 120 countries and employing approximately 100,000 people,  Schlumberger is the largest oil and gas services provider in the world. The company had already invested a considerable amount of money into a project that would impact the company’s future: an ERP system that would eventually span its entire global organization. Despite the resources Schlumberger put in, the project was facing significant challenges.

The implementation was failing to meet the goal of 70% data readiness. And the initial cohort of 600 employees and contractors working on the ERP had jumped to 1,300. 

So Eric Abecassis, Schlumberger’s new CIO decided to do something more radical. He wanted to use Scrum. “The experiment with Scrum will only last a few months,” Abecassis told the company’s Executive Management, “but if we are successful, it’s going to be a major breakthrough in terms of efficiency.” It could have the potential to radically affect how the company does things. And not just in the back office.

Key Takeaways

After one year of using Scrum to implement their ERP, CIO Abecassis says “We’ve seen an increase of about 25% in terms of productivity with 25% of cost reduction on a massive program.”  One team, for example, delivered data into the new ERP one week ahead of schedule and at 93% readiness, well above the required 70%.

These results, Abecassis adds, are just the beginning. “I think we can continue to push the envelope and we can definitely get to maybe 30 – 40% of cost savings and 30 – 40% of productivity improvement.”

Schlumberger’s launch of the ERP in North America, the company’s largest market, successfully went live on April 1st, 2019.

Schlumberger: Successful ERP Implementation With Scrum

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As a result of several acquisitions, Diamondback Energy, a US-based independent oil and natural gas company known for being quick to market, was experiencing significant growth. This expansion caused operational complexities and began to put increased pressure on their current systems. Realizing they had outgrown their accounting and finance platforms, Diamondback needed an enterprise resource planning (ERP) solution that could improve efficiencies in their financial processes and better support their expansion goals.

We wanted an ERP solution that was stable, supportable, secure and scalable. EY Energy Industry Cloud for SAP solutions met those criteria.

Diamondback chose the  SAP S/4HANA ®   suite because of its proven track record with many upstream oil and gas companies. And, when it came time to implement the new solution, Diamondback turned to Ernst & Young LLP (EY) professionals. The EY team has proven experience leading large transformation projects and had already created ready-to-market EY Energy Industry Cloud for SAP solutions, saving Diamondback considerable time and the need for customizations. In addition, the EY team could deploy the solution with little disruption to Diamondback’s employees.

“Our business is growing fast, and we needed to quickly invest in our accounting and finance functions,” said Tracy Dick, Chief Accounting Officer   for Diamondback Energy. “We also recognized the need for an experienced ERP implementation team who understood the essence of what we wanted to achieve. For us, it wasn’t just about choosing a new ERP, it was about finding the right strategic advisor who could help us deploy the solution efficiently with minimal disruption for our employees.”

Smart teaming and proven technologies deliver long-term value

“We wanted an ERP solution that was stable, supportable, secure and scalable,” said Greg Dolezal, VP of Information Technology for Diamondback Energy. “EY Energy Industry Cloud for SAP solutions met those criteria.” 

Smart teaming makes for better decision-making and faster results

Implementing an ERP system is a massive change and can be met with countless challenges including integration with existing systems and processes, flexibility for future growth and all-in support from the various departments within an organization. Acknowledging these potential obstacles, Diamondback brought together business and information technology (IT) stakeholders, resulting in quick and informed decision-making, as well as successful adoption of the new system. Concurrently, the EY team brought professionals from both the Consulting and Tax service lines contributing to a smooth deployment and a better understanding of the downstream effects of data integration. This cross-company teaming allowed for quick implementation and helped manage costs.

Templated tools limit the need for customization aiding in faster implementation

To accelerate the SAP S/4HANA transformation, EY professionals tapped into the EY Energy Industry Cloud for SAP solutions, which seamlessly integrates pre-built, sector-specific ERP assets with the latest versions of SAP offerings. Leveraging over 3,000 EY-created SAP accelerators including processes, training, test scripts, data mapping templates, IT controls and security roles, the EY team helped Diamondback implement the ERP software within a timeline never thought possible. The EY team’s leading-class  Intelligent Transformation Platform  toolset was also leveraged for the effective migration of data and integration of recently acquired companies.

“To help our clients gain the best of the technology while preparing their businesses for the future, we have developed detailed pre-built oil- and gas-specific SAP solutions augmented with our differentiators,” said Jim White, Principal, Technology Consulting, Ernst & Young LLP. “And by quickly adjusting to individual client needs, we’ve proven ERP implementations don’t have to be complex or time-consuming.” 

Leveraging over 3,000 EY-created SAP accelerators, Diamondback implemented the ERP software within a timeline never thought possible.

A new way of thinking about ERP implementations

But success is not just about implementing the right technology – it’s about embracing the right mindset, with proven project and change management processes. While traditional ERP implementations follow a more linear approach, Diamondback adopted the hybrid-agile methodology allowing the team to stay on track and keep a close eye on progress. Solution review sessions were held focusing on adopting industry-leading best practices and demonstrating how end-to-end processes would be executed in the future. This approach allowed the EY team to continually address Diamondback’s feedback and successfully finish this implementation with minimal business disruptions.

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Our cloud and emerging technologies will support and drive your strategic ambitions based on customer, market and business insights.

Built-in functionality means an ERP that continues to extract value

The result is a new SAP S/4HANA suite that accelerates Diamondback’s system performance, improves data integration and availability, and supports its growth strategy. 

Diamondback is already seeing a

reduction in the time required to complete month-end close processes.

And even with two additional acquisitions during the project and the virtual working requirements resulting from the COVID-19 global pandemic, this end-to-end implementation was completed in an impressive 16 months — balancing speed, quality and workload for the client.

“It’s easy to forget that a transformation is as much about the journey, as it is about the destination,” said Mike Kelly,  EY Americas Finance Consulting Leader. “The real value comes from delivering measurable business impact over time. By embedding lasting change in the way an organization works and operates, hidden potential can be unlocked and the organization can be set up for long-term success.”

Six months post-launch, Diamondback is already seeing a 30% reduction in the time required to complete month-end close processes and a 25% reduction in the time required for their first year-end closing.

Additional ERP benefits include:

• Highly stable system
• Improved data integration
• Efficient close processes
• Increased mobility capabilities

While Diamondback has reinvented its finance functions to achieve faster outcomes and to prepare for future growth, the flexibility of the SAP S/4HANA portfolio has potential benefits across several other areas of the company. In fact, they have already begun addressing back-office simplification and automation opportunities including integrations and further data automation. And with emerging technologies like artificial intelligence (AI) and machine learning built into the software, Diamondback Energy can see more benefits in the future.

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International Journal of Managing Projects in Business

ISSN : 1753-8378

Article publication date: 25 January 2008

The success rate of enterprise resource planning (ERP) implementations is not high in view of the sums invested by organisations in these applications. It has often been indicated that a combination of inadequate preparedness and inappropriate project management have been responsible for the low‐success rate of ERP implementations. The purpose of this paper is to present a case study of a successful ERP implementation.

Design/methodology/approach

In this paper, the authors use a case study of a very successful roll out of an ERP application in the Irish subsidiary of a UK multinational to investigate the validity of one of the most commonly cited project management frameworks, the project management body of knowledge (PMBOK), to ERP projects. Discussing each category of the framework in turn, the case data to illustrate where the PMBOK framework is a good fit or needs refining for ERP projects is used.

It is found that, by and large, PMBOK, because it is a very broad framework, can shed light on most of the key aspects of an ERP project. However, the specificities of this type of project require a different emphasis on some of the factors, as discussed in the authors conclusions. The case analysis also raised some interesting insights into how companies evaluate the success of such highly complex change management initiatives.

Research limitations/implications

This research work will need to be extended to cover other case studies of ERP implementation across other industries and organisational contexts; for example in less tightly regulated industries and smaller organisations.

Practical implications

This discussion will be of great value to ERP project managers who are in the early stages of a project and need to understand and anticipate the areas which will require specific attention on their part, based on their knowledge of the specific circumstances within their organisational context.

Originality/value

This paper presents an investigation into the project management strategy adopted in the Pharma Inc. case and illustrates the mechanics of a successful ERP project implementation, categorised using the PMBOK framework.

• Manufacturing resource planning
• Project management

Carton, F. , Adam, F. and Sammon, D. (2008), "Project management: a case study of a successful ERP implementation", International Journal of Managing Projects in Business , Vol. 1 No. 1, pp. 106-124. https://doi.org/10.1108/17538370810846441

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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Successful implementation of ERP systems in small businesses: a case study in Korea

• Original Paper
• Published: 31 July 2008
• Volume 2 , pages 275–286, ( 2008 )

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• Choong Kwon Lee 1 ,
• Hong-Hee Lee 2 &
• Moonsik Kang 1  

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The implementation of enterprise resource planning (ERP) systems supporting business processes across many different departments and partners has been known to be much more difficult than the development of a computer application supporting a single business function. In this article, we present a case study of an ERP system application by a small business. Jinyang Oil Seal Co., Ltd. is a professional oil seal manufacturer for automobiles and electronic equipment in Korea. Jinyang has recently adopted and implemented an ERP system, which has helped the organization to achieve a competitive advantage. This article reports how Jinyang coped with the typical challenges that most small business organizations face when implementing an ERP system.

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College of Business Administration, Keimyung University, 2800 Dalgubeoldaero, Dalseo-Gu, Daegu, 704-701, Korea

Choong Kwon Lee & Moonsik Kang

School of Business and Economics, Dankook University, 126, Jukjeon-dong, Suji-gu, Yongin-si, Gyeonggi-do, 448-701, Korea

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Lee, C.K., Lee, HH. & Kang, M. Successful implementation of ERP systems in small businesses: a case study in Korea. Serv Bus 2 , 275–286 (2008). https://doi.org/10.1007/s11628-008-0045-3

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Received : 07 March 2008

Revised : 17 April 2008

Accepted : 18 April 2008

Published : 31 July 2008

Issue Date : November 2008

DOI : https://doi.org/10.1007/s11628-008-0045-3

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