The Board of Supervisors in California’s Marin County voted to stop an ongoing SAP project and seek a replacement solution, implicitly accepting that it wasted over $30 million on software and related implementation services from Deloitte Consulting.
The dramatic decision to replace SAP comes after relations between Marin and Deloitte Consulting, the implementation consultant on this project, deteriorated to the breaking point. Marin filed a lawsuit against Deloitte “seeking actual and compensatory damages of at least $30 million, along with unspecified punitive and, or exemplary damages and interest.” Deloitte has countersued Marin for approximately $550,000 in unpaid fees and late charges. SAP remains convinced that the software is working perfectly, and any issues in this implementation in no way reflect on SAP. So who's to blame?
The following article is a valuable lesson learned through another's failure. The lack of organizational preparation for a transformational event such as an ERP system implementation, as well as the lack of governance and the inability to manage the business changes required played key roles.
Read more about this learning opportunity here: Understanding Marin County's $30 million ERP failure
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