Many organizations have moved from stand‐alone business information systems applications to integrated enterprise‐wide systems, enterprise resource planning (ERP). The implementation of ERP packages has created an opportunity to re‐engineer business processes within and beyond the organizational scope. Most notably, SAP R/3 has been widely implemented to create value‐oriented business processes that enable a high level of integration, improve communication within internal and external business networks, and enhance the decision‐making process. Though many organizations have reported dramatic improvements from SAP R/3 implementation, others have experienced difficulties in getting the R/3 modules aligned with other business components and systems. This paper describes a case study of a failed implementation of SAP R/3 to re‐engineer the business processes of a major manufacturer. Lessons in terms of factors that led to failure and their future implications are discussed in the light of the contrasting experiences of several best practice companies.
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