Why Foremostco Сompany Failed?

Read Summary

Foremostco Inc. is a family-run business that grew rapidly in the 90s and became the largest source of imported starter plant material in North America. In 2000, they replaced their legacy IT system with a new one and faced issues of computer system breakdown. The primary reasons for this crisis were not allocating sufficient time and cost to application testing, lack of step-by-step activation of a new IT system, and no business continuity and disaster recovery plan. Foremostco failed to track their product and customer data when their computer system failed. To recover from the crisis, they should activate their old system, look into the faults in the new system, check if they have lost any data and try to recover it. They should also build a disaster recovery plan and business continuity plan for the long run. The company should do thorough integration testing while integrating two software solutions and address its clients to regain their confidence and trust.

Table of Content

Foremostco Inc., a family-run business of 60 employees, experienced rapid growth in the 90s, becoming the largest importer of starter plant material in North America. In the year 2000, they upgraded their IT system, replacing their legacy system. However, this change resulted in computer system breakdowns, leading to significant issues for the company.

  • Why did this project get into such trouble?
  • What should be done to recover from the crisis described in the case?

Solution: Foremostco faced a computer system failure, causing panic.

Some possible causes of this crisis are:

  • Not allocating sufficient time and cost to the application testing
  • Lack of step by step activation of a new IT system
  • No business continuity and disaster recovery plan

The previous paragraph discusses the failure to properly test the application during the migration to a new system. Due to the time constraints, the testing process was not given sufficient attention. Consequently, it is emphasized that organizations should adopt a gradual approach when implementing new systems. In this approach, the new system is activated while still maintaining the functionality of the old system.

Foremostco is advised to deactivate the old system after monitoring its performance for a few days, but it is worrisome that they lack a disaster recovery or business continuity plan to handle disasters. As a result, when their computer system malfunctioned, Foremostco was unable to track their product and customer data. To address this issue, it is recommended that they promptly reactivate the old system and resume its usage while engineers investigate the problems with the new system to ensure its functionality. By doing so, Foremostco can continue their business operations and should also assess if any data has been lost in order to make efforts to recover it.

Foremost needs to prioritize the establishment of both a disaster recovery plan and a business continuity plan in order to prepare for the future. Additionally, Foremostco made an attempt to implement the system by combining their own application with packaged software. When integrating two software solutions, it is important for companies to exercise caution and conduct thorough integration testing. However, it is unknown whether Formostco performed this testing. To regain customer confidence and trust, it is essential for the company to communicate with its clients and provide assurance regarding future performance.

Cite this page

Why Foremostco Сompany Failed?. (2016, Nov 22). Retrieved from


Remember! This essay was written by a student

You can get a custom paper by one of our expert writers

Order custom paper Without paying upfront