History Erp Software Industry Fraught Failed Implementations One Latest Lawsuits Montclair Q43861726
The history of the ERP software industry is fraught with failedimplementations. One of the latest lawsuits is by Montclair StateUniversity in New Jersey, which is suing Oracle for a failedimplementation. Originally, the school contracted with Oracle(PeopleSoft) to buy an ERP package for $4.3 million, with anadditional $15.75 million for the implementation. The followingyear, after some delays, Oracle sought an additional $8 million tocomplete the project. Montclair University refused the additionalfee, and Oracle left the project. Now Montclair is estimating thatit will take it a further $20 million to complete theimplementation.
Experts agree that lawsuits such as these are not productive; noone really wins. It is essential that customers pay closeinspection to the legal contract drawn up between themselves andthe software vendor. ERP software is extremely complex, and it isoften difficult to ask the right questions when negotiating thecontracts. Most importantly, the customer should understand its ownbusiness processes and be able to relay them to the softwarevendor. The customer must also accept that their business processeswill need to change to fit the software. To top it off, the pricingof many ERP packages is very complex, with a variety of differentlicensing models to choose from. The bottom line is: Understand thecontract you are signing.
Question:
1. Research the topic of ERP contracts on the Internet. Howcould ERP vendors make it easier for customers to understand theirlicensing models? What could customers do to ensure a contractcontains all possible eventualities?
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