BIG FAILURES
Hershey's (1999): Hershey's implemented a new SAP system to manage its supply chain, but the system had numerous problems, including incorrect data, delayed shipments, and production shutdowns. These issues resulted in a significant drop in Hershey's stock price and a loss of $150 million in revenue.
Toys "R" Us (2000): Toys "R" Us implemented a new inventory management system to improve its supply chain and reduce costs, but the system was poorly designed and implemented, resulting in numerous problems, including incorrect inventory data, delayed shipments, and lost sales. These issues contributed to the company's decline, and it eventually filed for bankruptcy in 2017.
Target Canada (2013): Target expanded into Canada but faced significant problems with its supply chain and inventory management systems, resulting in empty store shelves, lost sales, and frustrated customers. Target eventually announced that it would close all 133 of its Canadian stores, resulting in a loss of more than $5 billion.
Healthcare.gov (2013): The United States government launched Healthcare.gov, a website intended to allow people to enroll in health insurance plans under the Affordable Care Act. However, the website was plagued by technical problems, including slow page load times, error messages, and difficulties in completing the enrollment process. These issues led to significant criticism of the government's handling of the implementation, and it took several months to resolve the problems.
TSB Bank (2018): TSB attempted to switch its customers to a new IT system, but the migration was fraught with issues, including customers being locked out of their accounts, seeing other customers' account details, and being unable to make payments. The problems persisted for weeks, resulting in a loss of customers, reputational damage, and a significant financial hit to the bank.
Boeing (2019): Boeing was forced to ground its 737 Max aircraft after two fatal crashes caused by a faulty automated system known as MCAS, which was poorly designed and implemented, and pilots were not adequately trained on how to handle the system. The crashes led to a significant loss of trust in the company, billions of dollars in costs and compensation, and the resignation of the company's CEO.
Revolut (2020): Revolut experienced a series of technical issues, including failed transactions, frozen accounts, and issues with its customer support. These problems were largely attributed to the company's rapid growth, which put a strain on its infrastructure and systems. The issues led to a loss of customers, negative publicity, and questions about the company's ability to scale.
Hertz (2020): Hertz filed for bankruptcy after being hit hard by the COVID-19 pandemic, but the company also faced significant issues with its IT systems, including an outdated and inefficient reservation system. These problems made it difficult for the company to compete with newer, more agile competitors in the market.
KPMG (2021): KPMG was fined $450,000 by the Securities and Exchange Commission for failures in its audit of an oil and gas company. The failures were largely attributed to a flawed system that was used to track and monitor audit work. The system was poorly designed and implemented, and it led to incomplete and inaccurate audit work.
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