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Chapter 7 • Operations and Postimplementation 191

CASE 7-1
Opening Case
Hugger-Mugger ERP Implementation

Source: Based on Stafford, Jan (Ed.). (2006). Hugger-Mugger fixes goofed Open Source ERP Implementation,
SearchOpenSource.com, July 5.
Hugger-Mugger is based in Salt Lake City, Utah, with revenues of about $5 million. The
company produces yoga accessories (e.g., yoga mats, bags, and shorts) (www.huggermug-
ger.com). The company is more than 20 years old and had implemented a number of stand-
alone systems over those years. These systems were proving to be out of date with the
needs of Hugger-Mugger, so they decided to implement an integrated ERP.
Hugger-Mugger went through a selection process for midsized ERPs and selected
Compiere. The company chose the package based on its needs coupled with the cost of the
software. Compiere is an open-source ERP system (open-source software (OSS) that required
free distribution applications with the source code. There was no warranty or liability with the
product (i.e., there usually is a cost for support and services). After the selection of Compiere,
the software was installed and implemented in very short period of time. The IT staff made
most of the decisions on how the software was to work. No documentation was created on the
implementation. User training was minimal at best, and a true understanding of the system
was not achieved by “Go-live”—a recipe for disaster. They did use a well-documented or
well-understood project methodology, and users were not involved enough in the implemen-
tation process. Users actually knew very little of how to use the system, nor did they under-
stand its complexity. Data entry was slow and incorrect, which resulted in orders and
customer information that made no sense. To make matters worse, IT staff left after the imple-
mentation. The new company president, Tom Chamberlain, quickly realized there was a
major problem with the implementation and set about to fix many of the oversights made
during the process. A consulting company, which had implementation experience with
Compiere and used a well-documented project methodology, was hired to address the
problems. Two dedicated IT staff, and the inclusion of users in the process, have improved
the system performance immensely. “A customer can place an order in the afternoon of one
day, and it will be on the dock to ship at 9 A.M. the next morning,” Chamberlain said.

CONCLUSION
As ERP implementations go, this one was not well organized, and it lacked a good method-
ology for moving through the phases of an implementation. The new president wisely
brought in an implementation partner to work through the problems and stabilize the system.
The training and readiness for “Go-live” were almost nonexistent.

PREVIEW

The ERP implementation phase, just before going live, is one of the most critical points in a pro-
ject’s success. It is the culmination of a number of planned tasks, activities, and resources
brought together to implement the system based on the goals of the organization. Even though
there were a number of issues that can be identified in the Hugger-Mugger case, it was clear they