Ford And Oracle Case Study

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Everest: Ford and Oracle
Abstract:
This paper clearly explains the reasons for the failure of automatic procurement systems which is built for their production and non-production suppliers. The factors that leads to shut down the project are represented in this paper. The two main things that cause project failure are over budget, not meeting deadlines.
Introduction:
Ford Motor Company is a popular leading U.S. automaker which delivers automobiles with brand name Ford. “In 2010, it is the fifth largest automaker in the world as per the vehicle sales”.
Initially, A third party company “COVISINT” which acts as a mediator between Ford with other carmakers and its vendors used to maintain all the information like biddings, purchasing, and supply …show more content…

All the major decisions, functionalities, are taken by central management at organizational level and even, at IT level also all major decisions are centralized in Ford Company. But, at application level it consists legacy systems instead of integrated ones means using different programming languages, different software and procedures leads to miscommunication or communication gaps which affects the productivity.
For Everest project Oracle uses its chain supply management system which is an official business suite from Oracle. This suite is specially designed to deliver goods based on real-time demand it is a package automated unified chain supply system along with CRM modules. The advantages of this suite are integrated chain supply system, future estimation and planning by observing consumer trends with CRM. Immediate response in case of emergencies, etc. automatically fills communication gaps.
Reasons for IT projects failure:
Generally, the software projects that failed are evaluated in terms of cost, time, human resources (employees involved in project), Objectives caused to start a project have to be changed. The failure of the software projects may happen at any level sometimes at designing phase, requirements phase, etc. Many researchers, summarized that the main reasons for projects failures are:
1. Poor planning
2. Adding additional …show more content…

On August 18, 2004 a Ford spokesman said "We completed an evaluation of all of our production and non-production procurement systems, and we made a decision to go back to our proven current custom built system instead of an automated procurement system” without any impact on other Oracle projects with Ford. All the mislead factors right from start of the project caused to shut down the “EVEREST”. Ford not only lost money with project but also lost advantage gaining in successful implementation which makes them even more stronger automaker than

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