Triumphs & Trip Ups In 2004By Baselinemag | Posted 2004-12-20 Email Print
Here's a look at the winning and losing technology projects of 2004. Toyota, Ameritrade and Wal-Mart are among the winners. Losers: Wal-Mart suppliers, Wells Fargo and Ford.
$220 Million"> $220 million:
Estimated sum Ford lost on installing an electronic purchasing system.
When Ford Motor Co. launched a procurement system dubbed Everest in 2000, the game plan was simple: exchange information on orders, accounts receivable and inventory status with suppliers electronically.
The system, based on Oracle 11i e-commerce software, was announced in 1999-and dismantled in August 2004.
"We evaluated it and decided to transition back to our current legacy systems," says Paul Wood, Ford's manager for global purchasing and information-technology public affairs.
AMR Research's Mixer estimates the auto giant spent about $220 million over four years on Everest, and pulled the plug when it realized more heavy investment was needed. The big issue: Ford's suppliers were already tied to the automaker's systems via electronic data interchange applications and didn't see a benefit in changing to Everest.
Mel Duvall and John McCormick contributed to this report.