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HP’s Software Problems opening case Erina Bhattarai

Chapter 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT. HP’s Software Problems opening case Erina Bhattarai. Introduction. Each and every organization from business to farming today, is affected by technology and is innovated, operated, and improved by software development.

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HP’s Software Problems opening case Erina Bhattarai

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  1. Chapter 11 SYSTEMS DEVELOPMENT AND PROJECT MANAGEMENT HP’s Software Problems opening case ErinaBhattarai

  2. Introduction • Each and every organization from business to farming today, is affected by technology and is innovated, operated, and improved by software development. • Transformation of any commercial enterprise is possible through correctly built, reliable, and user interface software. • Consequences of software success and failure are key to business operation. They indicate: • Increase or decrease revenues • Repair or damage to brand reputation • Prevent or incur liabilities • Increase or decrease productivity

  3. System Development Life Cycle (SDLC) • It is the overall process for developing information systems from planning and analysis through implementation and maintenance. • It includes:

  4. Software Development Methodologies • Software Development Methodologies includes: • Agile • Waterfall • Rapid Application Development (RAD) • Extreme Programming • Rational Unified Process (RUP) • Scrum

  5. HP’s Software Problems • Hanger was moving one of HP’s biggest North American division onto centralized ERP system from SAP. • She had unbroken record of success migrating 5 product groups within the two former companies onto one of two SAP systems with approx. $7.5 billion annual revenue. • The division involved with this latest project, ISS, was much larger than any of others that Hanger had migrated to SAP to that point. • She took the same contingency plan that her team had developed for other 5 migrations and adjusted to accommodate the ISS divisions larger sales volume. • She planned 3 weeks of IT snafus by modifying a legacy-order entry system to work with the new SAP system. • She had backup plan for any problems that would result from the new system and had already booked 3 weeks worth of extra servers in Omaha.

  6. Problems Cont…. • Some data modeling issues between the legacy-system and SAP system resulted in 20% of customer orders server failure. • Although, the problem was fixed within 4-5 weeks, the committee never realized the impact on business. • As the orders began to backlog, HP did not have enough manual work around to keep servers flowing fast enough to meet customer demand. • This lead to financial impact of $160 million: $120 million order backlog that resulted in $40 million in lost revenue. • This loss was bigger than the project worth of $30 million. • This shows the impact of IT problems in disturbing the company’s supply chain.

  7. Discussion • Which aspect of SDLC in this plan layout would have lead to the success of this software development?

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