1. What actions should WMI have taken to lessen the risk of this project and avoid these
Answer: To lessen the risk of this project and to avoid these problems, Waste Management, Inc. (WMI) together with SAP should understand each other and the both parties should have an agreement so that there would be no conflict or any problems between them.
2. What sort of losses has WMI incurred from the delay of this project? How has the lack of success
on this project affected SAP?
Answer: Aside from losing their clients, they will also lose their sales. As a result, they will gonna lose their job.
3. Do research on the Web to find out the current status of the lawsuits between WMI and SAP.
Write a brief report summarizing your findings.
Answer: Waste Management’s lawsuit against SAP for a “complete failure” of a $100 million software implementation boils down to promises. What did SAP promise Waste Management? And how much responsibility does Waste Management bear for believing those promises?
As background, news surfaced last week that Waste Management filed a complaint against SAP in the district court of Harris County, Texas. The suit, filed March 20, was fairly well publicized, but many of the accounts were thin on detail. Typically, IT failures aren’t black or white. There are many shades of gray. Projects change, there’s scope creep and often the vendor and the customer share some of the blame.
With that in mind, I’ve been perusing Waste Management’s complaint against SAP. For its part, SAP doesn’t comment on ongoing litigation. If this spat ever does get to court, it will highlight the enterprise software sales process, which really revolves around promises. According to Waste Management’s complaint, SAP said it could offer an out-of-the-box ERP system with no customization. Waste Management’s reality was different. That disconnect isn’t all that noteworthy. Enterprise software companies typically say there is no customization required and customers still need to tweak. What’s interesting is that Waste Management is going after SAP in a very public manner. I’m familiar with Waste Management from a previous case study on the company. In a nutshell, it’s a giant company that has been built via acquisition. Legacy systems were everywhere and a good chunk of them were outdated. From 2003 to 2005, Waste Management was becoming more than an army of small waste hauling firms and an integrated company. In 2005, Waste Management was looking to overhaul its order-to-cash process–billing, collections, pricing and customer set-up.