Feeds

Avis £30m ERP system crashes and burns

Terminate with extreme prejudice

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Car rental firm Avis watched its shares crash ten per cent yesterday on news that it was binning an expensive new ERP system.

Shares recovered slightly today but are still worth about half what they were late last year. The company said it was ditching a planned ERP system at a cost of about £30m. The system was meant to help the firm cut costs after a difficult few years.

There were three objectives behind the new system: offshore backoffice functions to Hungary, install a new ERP system and make a wider review at IT within Avis. The move of backoffice functions to Budapest has been judged a success but the ERP system and wider review have both been binned.

A statement on the company's website reads: "the new ERP system has encountered substantial delays and consequently higher cost due to a number of fundamental problems with its design and implementation. A decision has therefore been taken to terminate the development of the new system as quickly as practicable to avoid further cost."

Murray Hennessy, chief executive at Avis Europe, said: "We have moved with urgency to review our back office and IT restructuring project... We are very disappointed that major IT parts of the project have incurred significant exceptional costs and will not deliver the anticipated benefits. We felt it was right to take decisive action on the results of the review."

Existing systems will not suffer because the system has not been rolled out. ®

Related stories

Microsoft spruces up Navision
From soup to nuts with Microsoft s collaboration chief
Ford dumps $200m Oracle system

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.