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By Renee Boucher Ferguson  |  Posted 2004-09-13 Print this article Print

After giving the ESSG six weeks to catch up on the backlog that started building this July when the failed migration forced HP to record orders manually, Bouchard said the issue should be resolved.

But HP customer Ulf Zimmermann, IT manager at Inc., "absolutely" does not agree that HPs order management issues are close to being solved.

"Any order we have placed with HP in the last eight-plus weeks has been delayed, and not a single Customer Quoted Delivery Date was correct," said Zimmermann in Menlo Park, Calif., in an e-mail message. "Right now, I got orders put in the beginning of August, which were supposed to ship by end of August, with a new delivery date of mid-October. This at the same time they quote ship dates [that are two weeks sooner] for the same products if ordered today."

As part of what it calls its Business Process Architecture project, HP is winnowing its 35 ERP systems to four and its 3,500 applications to about 1,500, and it is taking a business-process-based approach to running the company that combines IT with business objectives. The four ERP code bases span three divisions—Consumer, SMB and Enterprise—and are driven on fulfillment modes and are region-based. Three of the four code bases will run on SAPs Fusion platform, while a platform for the fourth has not been determined.

Still, the moves are not meeting deadlines HP executives established more than two years ago. At the time, officials said integration of key HP and Compaq systems, such as ERP and the supply chain, would be completed within a year.

Crawford DelPrete, an analyst with IDC, in Framingham, Mass., said the message from customers is that HP has been inconsistent with executions. While issues came to light from the system migration troubles, they are rooted in the changes taking place, he said.

"If they cant find process and scale across the system by putting this [IT infrastructure] in place, they are going to be lost for years," said DelPrete. "They dont have the advantage of growing from a single company, organically. If you cant get a unified structure, youre not going to get scale."

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