Symantec Corporation, founded in 1980, is a prominent software vendor specializing in security and information management. It has operations in 40 countries and employs around 17,500 individuals. Symantec’s growth has been fueled by acquisitions, including Norton, Brightmail, Altris, and other smaller developers. In 2005, the company made its largest acquisition to date by purchasing Veritas Software for approximately $13 billion.
Although both companies were of similar size, Symantec focused on providing security and information management solutions for consumers while Veritas specialized in storage management software for large-scale licensing. Prior to the merger, both entities utilized customized versions of Oracle E-Business Suite 11d which presented integration difficulties.
Symantec implemented the “Project Oasis” ERP Project to tackle the issue of merging the information systems utilized by both companies. The objective was to establish a consolidated ERP system that partners and customers could use to make orders for Symantec’s vast assortment of products, which includes more than 250,000 distinct items. This endeavor aimed to decrease expenses related to maintaining Symantec’s IT infrastructure and enterprise software licensing fees, while also improving customer service delivery.
However, Symantec neglected the needs of many customers while creating an ERP system that was technically advanced but difficult for users. To correct their mistakes, the company initiated a follow-up project called Project Nero. The objective of Project Nero was to regain the trust of customers who were dissatisfied with the changes introduced by Oasis and to assure them that Symantec still prioritized their interests. According to Slooten and Yap (1992, p226), ERP is a comprehensive system that integrates multiple dimensions for all functions, based on a business model that aims to plan, control, and optimize the entire supply chain using cutting-edge IS/IT technology, while providing value-added services to internal and external stakeholders.
According to Elliott (2004), an ERP system is a comprehensive business system that encompasses a variety of business units and functions to handle and manage business processes and databases. Research conducted by Collins Group (2010) indicates that companies implement ERP systems primarily for the purpose of improving business performance, replacing outdated ERP or legacy systems, enhancing efficiency, and standardizing global business operations.
In basic terms, ERP involves the integration of people, hardware, and software to create a profitable system for production, service, and delivery (Khosrow 2006). The ultimate goal of ERP is to have a unified software solution that integrates various functions and activities, allowing for seamless sharing of information across departments. This ensures that actions taken by one department lead to appropriate follow-up actions throughout the organization.
A comprehensive assessment and appraisal of Symantec’s strategy for implementing their ERP system, known as Project Oasis and subsequently Project Nero, yielded the following findings: The system was deemed to be technically proficient and operating as intended. This implies that an in-depth examination and analysis of the current procedures must have been conducted to identify the drawbacks of the existing system in alignment with the company’s goals.
Despite the negative reaction received upon the initial launch of the system, it was evident that the stakeholders were not adequately involved in the design process. As a result, they faced difficulties in handling the extensive information provided to them and found the increased number of steps for placing orders to be overwhelming.
Symantec’s failure to coordinate the development of its new ERP system with the launch of other products from different divisions resulted in issues with customer support. The inability to effectively manage multiple projects simultaneously led to an increase in average response time from 2 minutes to 25 minutes.
Furthermore, Symantec aimed to simplify and improve the product ordering process by implementing a single set of codes for all applications within their stock-keeping unit system. However, this decision caused dissatisfaction among partners and smaller distributors who were required to update their systems for electronic purchase orders, which they viewed as unnecessary given their satisfaction with the previous system.
Lastly, customers experienced further frustration due to changes made by Symantec in the software licensing process.
Before the ERP rollout, license certificates were usually received within a few days. However, after the rollout, it became significantly more difficult, causing customers to wait for several weeks for their licenses. These problems could have been prevented if all the key parties involved in the project analysis and design (including business partners, customers, and customer service staff) were identified and included. This is because they are the main users of the system and possess firsthand knowledge of its benefits and restrictions. They also comprehend what they anticipate from the new system.
Including end users in systems design has several benefits, such as increasing the achievement of organizational objectives, creating ownership of the system, promoting knowledge transfer (Shackel and Richardson 1991), and turning users into project champions and implementers (Mingers 1995). Users are also more likely to assist in finding solutions to the initial challenges of system implementation compared to those who have a system forced upon them (RGU note 2010).
Project Oasis could have been more successful if it integrated the socio-technical approaches of ETHICS, SSM, and SDLC. ETHICS focuses on job satisfaction and end user participation, while SSM aims to identify stakeholders and involve representatives from the stakeholder community to achieve a cultural consensus at the beginning of any information system project. SDLC is a technique of business information systems that follows structured sequential stages of development.
The combination of these approaches would ensure that technology closely aligns with the social and organizational factors in the business environment (Elliot 2004).
The projects were mismanaged as evidenced by the failure to synchronize the development of the new ERP system with the introduction of other products from separate divisions. Feeny & McMullen (1995) identify several critical success factors in project management, including obtaining support from top management, designating a reputable project champion, establishing well-defined project objectives, assembling a project team, specifying end-users’ requirements, outlining business prerequisites, involving stakeholders, and addressing user expectations.
An ERP process is both a project and a change and transformation process. Clemons (1995) identified five groups of risks associated with organizational change activities: financial risks, technical risks, project risks, functionality risks, and project risks.
Financial risks occur when a project is not delivered on time and within budget (Clemons 1995). In the case of Project Oasis, although the ERP rollout cost 7.75% less than budgeted, the organization experienced lower earnings and had to cut $200 million in annual costs through layoffs or restructuring activities.
Technical risks arise when there is a significant gap between old and new technology infrastructures (Clemons 1995). This is often the case with ERP implementation (Bancroft et al 1998).
Project risks occur when project phases and activities are improperly sequenced (Clemons 1995). The main causes of project risks include a lack of qualified people, insufficient knowledge and training (Scott 1999), a lack of information communication and sharing among project members, poor consultancy service (Welti 1999), and inadequate definition of project scope (Scott 1999).
Functionality Risk is when business requirements cannot be met by the appropriate system capabilities (Clemons 1995). Political Risk refers to organizational resistance and lack of commitment, which hinder the implementation process (Clemons 1995). This was evident through negative user response to the system. Symantec could have effectively managed change and transformation in Project Oasis by following Kotter’s guidelines (1995):
- Establish a sense of urgency
- Form a powerful guiding coalition
- Create a vision and communicate it
- Empower others to act on the vision
- Plan for and achieve short-term wins
- Consolidate improvements and drive more change
- Institutionalize new approaches
In terms of the fit of the proposed ERP system within the organization, the improved stock keeping unit product system introduced by Symantec did not align with the technology and culture of their customers. The new process required customers to overhaul their existing systems and technology, but some customers did not see the need for this change as the old process worked well.
The process of software licensing did not align with the rest of Project Oasis, as it was not coordinated. Swan et al (1999) state that misalignments between ERP systems and user organizations can occur due to conflicting interests between the two parties. This suggests that there was no compatibility between the proposed ERP process and the organization’s goals and objectives. To address the problems arising from the lack of foresight in implementing Project Oasis, Project Nero was introduced as a solution.
Symantec has taken several steps to address customer satisfaction issues. They have added 150 new customer representatives to handle the increasing volume of complaints. Additionally, their customer sales executives have traveled across the country to resolve issues with unhappy customers and partners. Furthermore, they have addressed the problem of releasing product updates simultaneously with the ERP overhaul by implementing a master list of product releases that is accessible to all stakeholders. They have also standardized the communication methods between departments when it comes to new projects and change management.
Symantec introduced a customer satisfaction survey initiative to identify and address criticisms and problems. This tool has helped the organization improve its customer service by giving more attention to smaller value-added resellers and distributors. Regional representatives and CEO Thompson have also become more involved in this effort, leading to a restoration of customer satisfaction levels to the industry average.
The company does not share the results of its Net Promoter surveys with the public, so it is unclear how much its reputation has improved. The case study found that acquiring Veritas prompted a critical need for an ERP system. While the technical implementation was successful, Project Oasis was a huge failure due to various issues. These included the stakeholders’ lack of involvement in system design and development and the failure to integrate the ERP process with other projects in the organization.
The average response time increased from 2 minutes to 25 minutes due to customer service units’ inability to attend to customer requests and queries, resulting in heightened customer dissatisfaction and potential loss of customer loyalty. To address these issues, Project Nero was introduced as a resolution. It is commonly acknowledged that ERP implementation is primarily focused on people rather than processes or technology. Consequently, implementing an ERP system brings about significant changes that must be effectively managed in order to fully reap its benefits.
The success of the ERP process is contingent upon several critical factors, such as obtaining commitment from top management, reengineering existing processes, involving all stakeholders in the process design, development, and implementation, integrating the ERP with other business information systems, selecting and managing consultants and employees, and providing training to employees on the new system. Additionally, management should not only provide funding for the project but also actively lead and monitor its progress.
