Implementation Failures S3 by Rosalyn Marlene Di Cesare

SAP Implementation at Avon

di_roz — 2017-03-05 15:50:56 UTC

When: 2013

Impact: $100M and $125M write-down on Balance Sheet

Why: The software did not work with Avon's business model.

Link: http://www.informationweek.com/software/enterprise-applications/avon-pulls-plug-on-$125-million-sap-project/d/d-id/1113061

Rosalyn M. Di Cesare

Samsung Galaxy Note 7

2017-03-09 16:01:42 UTC

When:2016

Impact: 35 reports of phones overheating (one smoking and caused an evacuation of an airplane). There were also reports on phones catching on fire. They recalled 2.5 million devices and the consumers were told to return the phones immediately

Why: Company blamed assembly defects that caused the phones lithium ion battery to overheat.

Link: https://www.technologyreview.com/s/603191/the-biggest-technology-failures-of-2016/?set=602944
S. Marenchuk

Southwest Airlines Co.

2017-03-09 19:43:00 UTC

When: 2014

Impact: More than 1,450 flights were delayed and 168 cancelled. Customers had to stay another day in the city until Southwest could get their planes going again

Why: The Southwest Airlines, technical disruptions grounded some planes, blocked use of its website and prevented travelers from checking in for flights

Link:
https://www.bloomberg.com/news/articles/2016-07-20/southwest-says-technology-failures-disrupt-flights-check-ins

V. McFadden

Hover-boards

bhaumikjain — 2017-03-09 22:27:46 UTC

When: 2015

Impact: Two wheeled, self balancing scooters started catching fire as soon as riders ride on the board causing explosions. Over 60 reports of fire caused the company the loss of $2 million dollars.

Why: These hover-boards use lithium batteries inside them which is highly flammable. There was not a proper separation of sort circuit. Only a small piece of plastic was used which melted easily. So while charging it generated too much heat Melting the plastic and setting it up on fire. After these incident hover-boards were banned to be shipped by air as well.

B. Jain

Iphone 6s Recall

oyoussef1213 — 2017-03-10 04:47:37 UTC

A technology failure that occurred to me was when my iPhone 6s had a problem with the battery and my phone would simultaneously shut down at critical times I needed phone access. I had an experience when i was in a foreign city and needed directions and my phone shut down and resulted in much difficulty to find my way around the city. The reason this was occurring to my phone was apple had made a recall on its iPhone 6s battery. The cause is the battery shit down was mainly caused by the hardware of the battery not being able to handle the stress multiple of multiple apps being used at the same time. The problem was resolved in a replacement phone.
O. Youssef

http://fortune.com/2017/01/25/apple-iphone-6-battery-recall/

Nike’s Supply Chain IssuesWhen: - 2000 - 2001 Impact: - They spent $400 million dollars updating their supply chain system, Demand forecasting was one of the biggest issues. Demand for a number of products and locations was either overestimated or underestimated. The company reported a loss of $100 million in sales in the 3rd quarter of 2001 due to this problem.Why: - they implement a new demand planning software solution without testing it and everything went wrong. Rather than helping Nike match their supply with demand, narrowing their sneaker manufacturing cycle, they ended up ordering low-selling sneakers in place of high demand ones, collapsing the supply chain.http://www.cio.com/article/2439601/supply-chain-management/nike-rebounds--how--and-why--nike-recovered-from-its-supply-chain-disaster.html

2017-03-11 02:12:41 UTC

:- Jay Patel

ERP Software Malfunction in U.S. Universities

2017-03-11 04:55:15 UTC

When: September 2000

Back in 2000, students at the University of Massachusetts, Stanford University, and Indiana implemented a new ERP software which was supposed to make student's lives easier (much like FOL and webadvisor combined). The entire system was filled with so many bugs and errors, students had issues with everything from accessing their class schedules to being unable to collect their student loan cheques. It was eventually resolved a few days later, and all the students ended up getting access to their money and class schedules. But for the first three days of classes, most of the lecture halls were only half full and the campuses were in a complete state of disarray from no one knowing where to be or what to do.

M. Dunbar

HP's "Perfect Storm" of ERP Problems

2017-03-11 20:44:50 UTC

When: 2004

Impact: The project eventually cost HP $160 million in order backlogs and lost revenue—more than five times the project's estimated cost.

Why: HP tried to centralize its disparate North American ERP systems onto one SAP system. The project managers knew all of the things that could go wrong with their ERP rollout. But they just didn't plan for so many of them to happen at once. Said Gilles Bouchard, then-CIO of HP's global operations: "We had a series of small problems, none of which individually would have been too much to handle. But together they created the perfect storm."

http://www.cio.com/article/2429865/enterprise-resource-planning/10-famous-erp-disasters--dustups-and-disappointments.html

Min Xu

Fiat Chrysler Automobiles Recall

2017-03-12 01:31:14 UTC

When: 2016

Impact: FCA was forced to recall almost 50,000 small SUV's

Why: There was a problem with the camshaft/crankshaft sensor that may have caused the vehicle to either stall while moving or fail to start altogether.

Link: http://www.detroitnews.com/story/business/autos/chrysler/2016/12/23/fiat-chrysler-recall/95787018/

Nattany Aka

Apple admits to serious iOS 9 problems.

jennewen3577 — 2017-03-12 19:52:31 UTC

When: 2016

Impact: Updated software caused a breach in security.

Why: When making iOS 9 Apple was trying to fix the bugs that would be brought to their attention by customers using the new software, they would update the software in hopes that the bugs would be fixed, but by doing so they caused a breach in the security of the product.

Link: https://www.forbes.com/sites/gordonkelly/2016/04/06/apple-ios-9-3-1-security-problem/#3962747629da

Jennifer Ewen

Yahoo’s Acquisition of Tumblr

2017-03-13 18:50:48 UTC

When: 2013

Impact: $1.1 Billion purchase of Tumblr leads to little disclosure about its true success, hinting to analysts that it has only earned, at most, double-digit millions in revenue per year.

Why: Poor business model and strategic application as well as market growth of Tumblr, a microblogging platform, has failed to produce monetary results that equate to or exceed its initial purchase at $1.1 Billion.

Link:

Phoenix Pay System

2017-03-14 02:36:53 UTC

When: 2016

Impact: Over 80,000 public servant's pay are affected. Where some will be overpaid, underpaid, or not paid at all. Also employees information is easily accessible causing a privacy issue.

Why: It seems the new pay system was not ready to be put into place as there for still some critical defects in the system, which can cause the problems of properly distributing pay.

Link: http://www.cbc.ca/news/canada/ottawa/phoenix-ottawa-timeline-1.3691812

Alex Shin

Volkswagen’s “defeat device”

2017-03-14 02:54:17 UTC

When: 2015

Impact: Diesel cars were emitting 40 times the amount of pollution that was allowed.

Why: Volkswagen was using software that called "defeat device," which was supposed to hide the amount of pollution emitted from the vehicle. But now they have been caught and fined, "$14.7 billion to cover legal penalties and the cost of replacing or fixing 475,000 automobiles in the U.S."

Link:https://www.technologyreview.com/s/603189/the-biggest-technology-failures-of-2016/

J.Li

Volkswagen's "defeat device" Scandal

2017-03-14 03:06:32 UTC

When: 2016

Impact:
Billions of dollars in legal fines as well as replacing or repairing thousands of previously sold vehicles

Why:
VW claims that they created a system for reducing noise in the engine, but it caused emissions to rise. Their solution was the "defeat device" to offset readings during e-testing. It was illegal, unethical, and led to a massive scandal and executives resigning.

Link:
http://www.roadandtrack.com/new-cars/car-technology/news/a30029/vw-acoustic-function-defeat-device/

R. Patel

Hershey's ERP Failure

2017-03-14 03:37:51 UTC

When: 1999

What: Repeated mishaps involving the company's SAP ERP, CRM and supply chain applications resulted in the company failing to deliver $100 million worth of Hershey's product orders prior to Halloween of 1999

Impact: Operations came to a screeching halt, $100M orders were not fulfilled. Lead to a 19% drop in quarterly profits and 8% decline in stock price.

Why: Hershey's tried to cram a 48-month implementation period of new Supply Chain Management (SCM) software and Customer Relations Management (CRM) software into a 30 month turnaround so the systems could be rolled out by the millennium. Due to busy seasons approaching (Halloween, Christmas), the company had to cut corners on critical testing phases. When the system began in July 1999, system errors prevented orders from being completed and shipped out. $100M worth of orders were not fulfilled even though the inventory was available and in stock.

Link:
http://erpsoftwareblog.com/cloud/2015/03/a-lesson-learned-from-hersheys-failed-erp-implementation/

S. Sparks

Google Nest

2017-03-14 18:55:30 UTC

When: 2014

Impact: Recalled 440,000 smoke detectors in 2014 the year google acquired it for 3.2 billion dollars.

Why: Found users could accidently turn off the smoke detectors which could be very dangerous had there been a real fire.

Link: http://www.cnbc.com/2016/09/13/after-samsung-note-7-recall-10-biggest-tech-recalls-ever.html?slide=3

K. Balicki

Space Shuttle Challenger Disaster

2017-03-14 23:02:15 UTC

When: January 28th, 1986

Impact: During the tenth flight of the space shuttle challenger the vehicle suffered a catastrophic failure of an O-ring seal located in it's right-most solid rocket booster. As many of us can remember this lead to burning gas compromising the structural integrity of the rear joint housing and external fuel tank immediately after launch. The combined damage and structural stress caused the shuttle to break apart shortly after - all hands were lost.

Why: The O-ring in question was not designed to operate in the low temperature conditions that were present at launch. NASA management staff were aware of the potentially catastrophic flaw since the 1970's; but failed to address the issue and ignored NASA safety protocols to proceed with the launch.

Results: A re-hauling of NASA safety regulations, changes to the decision making process for management, a grounding of the NASA shuttle fleet for three years and a redesign of the solid rocket booster system.

https://en.wikipedia.org/wiki/Space_Shuttle_Challenger_disaster

~ Eric D. Jenkins

U.S. Failure in Air Force -ECSS project

2017-03-15 12:01:58 UTC

When: 2013

Impact: The U.S. spent over 1 billion on an ERP system, that was eventually deemed useless.

Why: Proper research was not obtained to determine that best way to create/implement the software.

Their down fall was also how many times the project leader was switched in the span of 7 years. Which made it difficult to be consistent with their expectations for the product.

http://spectrum.ieee.org/riskfactor/aerospace/military/us-air-force-blows-1-billion-on-failed-erp-project

A. Smith

Toyota

2017-03-15 15:03:04 UTC

When: 2009-2011

Impact: Massive Global recalls of

4RUNNER
AVALON
CAMRY Models
COROLLA
ES Models
GS Models
HIGHLANDER Models
IS Models
LS Models
PRIUS
RAV4
RX
SIENNA
TACOMA
TUNDRA2

Why: Electronic Throttle Control System. Causing unintended acceleration

Link: http://www.garyeto.com/auto/toyota-recall.html

C. Clark

Navy's $1 Billion Failure

2017-03-15 15:17:08 UTC

When: Continuous since 1998
Impact: $1 Billion, plus a potential $800 Million is wasted funds.The failure took place over 4 separate projects all based on SAP AG software.
Why: The Navy wanted to modernize as far as supply chain,acquisition, financial
management, and others. They were unsure if it was feasible to begin with, and in the end according to Michael Taffe, an analyst from Boston AMR Research, " trying to implement ERP on the scale required by the U.S. Navy is an overwhelming undertaking. Under the best of circumstances, it has a high degree of risk".
Link: http://www.computerworld.com/article/2558133/enterprise-resource-planning/gao--navy-sinks--1b-into-failed-erp-pilot-projects.html

J. Wright

Smartboard Reluctance

2017-03-15 23:43:14 UTC

When: 2010

Impact: thousands of dollars wasted across many school boards

Why: Like many new technologies the intended users lacked the training and the confidence to overcome their intimidation of the equipment. This leads to a feedback loop of teachers not using the smartboards because nobody else uses them and can give guidance when needed.

Link:http://www.ictinpractice.com/why-do-smart-board-implementations-fail/

Brad Furtah

Rage Wireless Guitars

2017-03-16 01:00:26 UTC

When: October 22,2008

Impact: Performance Designed Products LLC had to recall 57,000 wireless guitars, which sold for $40-$60

Why: Defect on the circuit board caused batteries to leak if installed improperly. The leaking battery acid caused chemical burns on consumers.

Amanda Hibbs

Nest thermostat Leave users in the cold

2017-03-16 02:52:25 UTC

When: Jan 2016

Impact: the Nest smart thermostat owned by Google was hit by software glitch that left users in the cold. The software update went wrong and left the device battery drained leaving it unable to control the
thermostate

Why: Nest said the fault had been caused by December 4.0 firmware update, plus issues such as old air filters or incompatible boilers
Results: 4.0.1 update was rolled after and it seems to fix the problem for 99.5% of the affected customers.

Link
http://www.computerworlduk.com/galleries/infrastructure/top-10-software-failures-3599618/
Abeer Rkie

Apple Maps Release

2017-03-16 04:52:48 UTC

When: September 9, 2012 (Release date)

Impact: Apple users were given incorrect directions and got lost repeatedly. Also incorrect information was appearing on the maps which included capitals were spelled wrong and places were mislabeled. Outdated Business information was also on the maps, chains that no longer existed were appearing all over.

Why: Apple stated they underestimated the complexity of the project. Meanwhile the company they sourced their mapping Data from called TomTom, stated apple was trying to combine too many sources of data to create Apple Maps, which resulted in the data getting "lost in translation" and being incorrect.

Overall they should have released it initially as a beta, and now apple maps is continually improving and asking users to notify them when they come across incorrect information so it can be corrected.

Link:
http://www.techradar.com/news/software/applications/ios-6-maps-what-went-wrong-1118121

- Brooke Fountain

Volkswagen

2017-03-16 13:04:13 UTC

"defeat device"
Impact: the company advertised their cars being extremely fuel efficient, however the emissions that were emitted, were not within regulations

https://www.technologyreview.com/s/603189/the-biggest-technology-failures-of-2016/

C.Norris