Stuff You Never Know About Web App - Web Imp
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Stuff You Never Know About Web App

Khairul Khairul • September 4, 2015

Well, there’s no surprise what wonders Web App could do and how it had helped advance the human race. However, I bet many of you don’t even know what the heck a Web App is.

For starters, some may know it as ERP system, Enterprise Resource Planning, but for me I would like to call it Web Application. Basically, it is a tailored business management software for businesses.

Business owners use it for a huge range of different uses; accounting, managing invoices, managing employees’ salary, supply chain management etc.

It is insanely powerful and useful to manage a business, in fact, I doubt in this era you are able to find an SME and bigger companies not having its own Web App.

Anyway, let me share some of the things you might never know about Web App that I find rather interesting or worth reading.

Was a bitter experience for Hershey.

Could a failed computer project take down a Fortune 500 giant chocolate company?

Well back in 1999, Hershey’s stock prices fell by 8% when there was a problem with its new order taking and distribution system!

This prevented Hershey from making over $100 million worth of kisses and Jolly Ranches delivery for Halloween that year.

Well, I guess a failed system couldn’t take down the giant chocolate company, but it certainly was a bitter experience for Hershey.

“Just do it” may not be the best idea after all.

In 2000, Nike made a daring move spending about $400 million to upgrade its system, not knowing the move would cause 20% drop in stocks prices, $100 million lost in sales and a collection of class action lawsuits (And we thought Hershey was bad).

So what happened? Well, during the upgrade, the system was supposed to predict demand and supply of Nike products, but it was impatiently implemented by Nike.

Apparently the system called for thousands more Air Garnett sneakers and called for thousands lesser Air Jordans sneakers. It was a devastating period for Nike.

Well, Nike learnt it the hard way, paying an expensive cost for a lesson on patience.

IBM’s poor implementation upset nurses.

During that time, the payroll system failed to pay VON’s (Victoria’s Order of Nurses, Canada’s largest home and care community organization) nurses.

Reports have been made that at least 6 months of faulty paychecks while some nurses received more than they deserved.

The payroll system is from SAP (a huge company that makes enterprise software for other huge companies), was implemented by IBM.

Nothing is wrong with the software from SAP, however, the problem actually lies when the system was implemented.

Every nurse pay is different and IBM did not have a clear understanding before implementation.

ERP implementation was never easy, but in this case it strengthen the bad reputation ERP already had.

SAP, Oracle & TommorowNow, Internal Affairs: A new Hollywood movie??

This, ladies and gentlemen, was one of the most groundbreaking, heart-stopping, spine-tingling, nails biting news of the century! 

I’m not even kidding! This would make Hollywood directors fighting over to produce this movie! Alright, folks here’s a brief summary of what took place.

Back in 2005, SAP acquires over TommorowNow (TN), a small, third party Company that does maintenance and support services for Oracle’s products―for half the price.

SAP bought over TN in hopes to persuade Oracle’s customer to become SAP’s instead.

It turns out that TN has been illegally downloading copies of Oracle’s software to provide transitional maintenance services for customers migrating from Oracle to SAP.

In 2007, when Oracle found out that there were thousands of suspicious downloads of its software, he sued SAP.

This started a chapter of exciting and endless lawsuits between Oracle and SAP. SAP eventually abruptly shut down TN.

Coming to last quarter of 2011, the trial judge awarded Oracle with compensatory damages around $272 million, much lower than the initial $1.3 billion the jury had provided in 2010.

Now here’s the exciting end to this saga, co-founder of TN, formed his own company, Rimini Street, providing services similar to that of TN, and has been scooping up former TN business.

Haha oh, by the way, on top of the half-priced Oracle ERP maintenance services Rimini Street provides, it now also provides SAP ERP maintenance services―at half the price. (If any Hollywood directors are interested in this, I’ve prepared the script already.)

Anyway, I’ve been talking so much about disasters happening in Web App implementation, let me teach you some ways that you could have prevented the above scenarios from happening.

Underestimating and inadequately assigning resources, especially time.

This has to be the most important thing so you better note it down. You have to understand how complex implementing a Web App system is.

Above scenarios happened mostly due to assuming that the contractors will supply the necessary resources required for implementation.

Many companies after the purchase of the Web App would try to cut cost by having their IT department to work overtime.

However, this would not only reach their burnout threshold but also would likely cause more mistakes. Web App implementation takes up time, manpower and resources, but it is necessary.

So do not rush and always remember to allocate enough resources to complete it. Patience is a virtue.

Treating Web App as just another IT project.

No no no and no. This is also another common mistake business owners make. Sure enough when your company is small, implementing Web App seems easy and a brisk job.

However when your company starts to grow, bear in mind that with every upgrade your system need, the complexity and the magnitude of the project increases. To unleash the potential of a Web App, every individual should take part in the transformation.

Executives should take the lead to ensure every single department to take the initiative during implementation.

Doing so achieves business process alignment, employee ownership and, of course, employee utilization.

Not aligning with business operation.

Irony as it sounds, some business owners have a poor selection of Web App to their business. Basically having a Web App aids in your business process.

However when it doesn’t, why bother spending tons on money on such a tedious and taxing task?

What should a web app have? Find out by watching our video here!

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