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Hershey's Enterprise System: Challenges and Recovery from Y2K Implementation Failures

This case study explores Hershey's implementation of the Enterprise 21 system to address Y2K compliance by replacing legacy systems and integrating new software. Despite the ambitious goals, the project faced significant challenges, including insufficient planning, testing, and training, resulting in a financial loss of over $100 million due to empty retail shelves during critical seasons. However, Hershey's resilience is evident as the company has bounced back, reporting $4.5 billion in profits and continuing to expand its offerings in sweets and snacks.

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Hershey's Enterprise System: Challenges and Recovery from Y2K Implementation Failures

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Presentation Transcript

  1. Hershey’sEnterpriseSystem By Carol Flaa

  2. Agenda • Case Introduction • Solving Y2K Problems • Problems Experienced • Financial Information • Current Industry • Competition • Conclusion

  3. Hershey Prepared for Y2K • Enterprise 21 Included: • Replace legacy mainframe systems • Implement an ERP system • Bring in different software systems • Replace 5,000 desktop computers • Install Bar Coding equipment at all sites

  4. Problems with Enterprise 21 • Lack of Planning • Lack of Testing • Lack of Training • Not enough time to implement • Direct Cut over method • Retail candy shelves were empty at Halloween and Christmas

  5. Financial Information • Cost of the Enterprise 21 Project • Over $112 Million • Lost Sales Revenue • Over $100 Million • Current Company Status • $4.5 Billion Profits last year

  6. Current Industry • Industry is Growing • Sales and profits are increasing • Expanding in Types of Products • Candy and gum • Snacks and nutrition bars • Produce mass amounts of products • Halloween and Christmas are the busiest

  7. Hershey’s Products • Hershey bars and Kisses • Twizzlers • Ice Breakers Gum • Reese’s Peanut Butter Cups • Mounds / Almond Joy • Jolly Rancher • Smartzone Nutrition Bars

  8. Hershey’s Competition • Nestle Company • Nestle Crunch Bars, Butterfinger • Mars Incorporated • M&M’s, Snickers, Twix

  9. Hershey’s Conclusion • Enterprise 21 was a huge project • Hershey’s lost millions of dollars in sales from the Enterprise 21 project • Problems could have been avoided • Hershey’s has bounced back and recovered from their losses • Today the company is expanding in • Chocolate and confectionary products • Snacks and nutrition products

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