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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year
PSFT 0.00010000.0%Oct 29 5:00 PM EST

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To: Raptor who wrote (1368)7/7/1998 7:21:00 PM
From: Tom Smith  Read Replies (4) of 4509
 
Interesting note from Information Week concerning a failed SAP R/3 implementation. How many prospective customers are reading this?

Andersen Sued Over 'Flawed' SAP R/3 Job
(07/03/98; 9:56 a.m. ET)
By Bruce Caldwell, InformationWeek

Software integrator Anderson Consulting has been hit by a $500 million lawsuit charging that its flawed implementation of an enterprise resource planning software system played a role in driving U.S. drug distributor Fox Meyer into liquidation in 1996.

FoxMeyer, once a $5 billion drug distribution company, was able to process only a small fraction of its customer orders using the R/3 system, according to the suit.

The company paid Andersen $30 million for its services -- twice the original estimate -- and that Andersen used trainees instead of experienced professionals, the suit said.

But Andersen's prepared response said the claims are "outlandish and totally at odds with the facts."

In August 1996, FoxMeyer filed for bankruptcy protection. It was later bought by a major competitor for just $80 million.
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