The importance of apps to businesses
Software applications (apps) are at the heart of modern business success and have transformed the way companies handle their operations. A well designed and developed app with user-friendly methodologies and a security and privacy mindset can be very beneficial to a company’s operating, marketing, and sales strategies.
Apps benefit businesses in numerous ways, providing credibility, higher productivity, and building trusted relationships with their customers. However, developing an app does not always go as planned. Failures do happen. And when they happen, they create major disruptions and financial losses.
Have we learned from past failures?
The good thing about failures is that they can be a great source for lessons learned. In application development, learning from others’ mistakes can be lifesaving.
Healthcare retailer goes bankrupt
In the early 90s, FoxMeyer, a healthcare service company, was the fifth largest drug wholesaler in the United States, with $5 billion in annual sales and around 500,000 items shipped daily. FoxMeyer needed a solution that would make complex supply chain decisions while minimizing cost. They decided that an ERP would offer the best solution to get real-time information, automate, and integrate inventory systems into a unique system. The implementation cost was budgeted at $65 million, and the ERP system was projected to save FoxMeyer about $40 million per year.
Because of poor planning and implementation, the project was a total disaster with a final bill of $100 million. FoxMeyer only saved half of the projected amount, and the ..
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