Here's a look at some of the top ERP project boondoggles, flameouts and failures of the year -- and these are just the ones that entered public view.
New York's CityTime 'disaster'
CityTime, an effort by New York City to modernize its payroll system, is more of an ERP "project failure of the decade" and then some, as it dates to 1998. But in recent weeks allegations of massive corruption and waste regarding the project have come to a boil.
It was originally budgeted at around $60 million, but has since ballooned to a colossal $700 million-plus, the New York Daily News reported recently.
New York Mayor Michael Bloomberg has called the project a "disaster." This week, federal authorities charged a number of workers on the project with being the ringleaders of a fraud scheme that siphoned some $80 million from taxpayers, reports said.
On Thursday, New York Comptroller John Liu suspended Joel Bondy, executive director of the city's office of payroll administration, and stopped all payments to consulting firm Spherion until a thorough review has been conducted.
New York officials simply did not understand just how complex the project would end up being, Bloomberg said in a radio interview Friday. "Once they started, part of it was they just kept adding things that it made sense to do," he said.
But he stressed that the city still needs the system "desperately," and it is saving money for agencies that are using it. The project is on track for completion by June, he added.
BSkyB settlement from HP/EDS
While the £318 million settlement broadcaster BSkyB received in June from Hewlett-Packard was technically for a CRM (customer relationship management) implementation, not ERP, the award still stands to make a serious impact on the outsourcing business.
A court found that HP's EDS division had lied about how long it would take to finish the project, which was started in 2000 and originally budgeted at £48 million. BSkyB fired EDS in 2002 and completed the job itself, but costs ultimately quintupled.
Some believe the massive verdict will give systems integrators and salespeople pause from here on out when making promises at the contract negotiating table.
Marin County's "rip and replace"
If there is a worst way for an ERP project to end, it's with a "rip-and-replace," and that's what officials in Marin County, California, decided to do in August.
Officials decided that it would be less expensive to simply replace its ailing SAP system with something else, instead of trying to fix widespread problems with it.
Marin County sued system integrator Deloitte Consulting in connection with the system earlier this year, saying Deloitte used the project as "a trial-and-error training ground" for inexperienced employees, and the result was a "costly computer system far worse than the legacy systems it was intended to replace."
- Securing Mobile App Data - Comparing Containers and App Wrappers Analysts agree that Mobile Device Management (MDM) is not enough when it comes to securing app data. Although it remains a critical component...
- IPv6 Fundamentals IPv6 is needed to sustain the growth of the Internet. The transition from IPv4 will require planning and likely some degree of support...
- Optimize IT Performance & Availability: Four Steps to Establish Effective IT Management Baselines More than ever before, your company's ability to grow hinges on IT performance and availability. Download this how-to report on establishing IT baselines,...
- Considerations for Embracing Wireless Monitoring Employee behavior is once again driving major changes for IT departments - this time it's BYOD. This report details three critical steps to...
- Live Webcast 5 Steps to Assuring Quality of Experience In order to align monitoring and management practices with the true demands of the business, IT professionals must expand beyond traditional comfort zones...
- Live Webcast Master the Changing SAP Landscape with Performance Management SAP landscapes are not getting simpler. Gradually, business processes that used to be contained on a single SAP system now involve a range...
- Accelerate your innovation with IBM Bluemix™ Join us for a webcast introducing the new IBM BluemixTM. IBM Bluemix (www.bluemix.net) is a developer oriented Platform as a Service (PaaS) environment...
- On-Demand Webinar: Beyond the Enterprise App Store If you already have a few projects that are RED on your project timeline then join us so you can free up your... All Applications White Papers | Webcasts