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Problems with the rollout of an Oracle JD Edwards ERP (enterpriseresource planning) system have forced a Pennsylvania constructioncompany to delay the filing of its fiscal 2012 annual report withthe U.S. Securities and Exchange Commission. New Enterprise Stone & Lime Co. said late Wednesday that thesystem, which went live in certain locations and capacities on Jan.1, "will enhance its operations and strengthen its internalcontrols over financial reporting." However, "unexpected delays and other issues," primarily withsystem interfaces and operational and financial reports, have madeit impossible to collect all the information needed for the annualreport, according to a statement. New Enterprise "has engaged substantial external resources andaccounting staff in intensive quality control and review of the newERP," a process that has also impacted its ability to finish thereport "without unreasonable effort or expense," the statementadded. Because of the problems, the ERP implementation has been"tentatively rescheduled" for the first quarter of New Enterprise'sfiscal 2014, according to the statement. Meanwhile, the company expects to complete the fiscal 2012 reportby July 15, but said "there can be no assurances" further delayswon't occur, according to the statement. Despite the system issues, New Enterprise's "current projects,material and product shipments, and customer experience have notbeen materially impacted," the company said. New Enterprise is implementing JD Edwards Enterprise One, companypresident Paul Detwiler III said in a brief phone interview onThursday. Prior to this, the company had used custom-writtensoftware, according to Detwiler, who declined further comment. An Oracle spokeswoman didn't respond to a request for comment. Itwasn't immediately clear what system integrator New Enterprise isusing on the project. The company reported US$215.3 million in revenue for the thirdquarter of its fiscal 2012 ended Nov. 30. For now, however, the company has apparently so far avoided thesort of financial impact felt by other companies with troubled ERPimplementations, which include Lumber Liquidators and Ingram Micro. One expert on IT project failures made an educated guess onThursday as to what went wrong at New Enterprise. "It sounds to me that they implemented the ERP system and nowthey're having trouble getting out accurate data, which they needto do their closings," said Michael Krigsman, CEO of consultingfirm Asuret, which advises companies on how to conduct successfulIT projects. "They may have not sufficiently tested the interfacesto existing systems prior to going live." "Many companies take shortcuts with testing, then discover aproblem and only subsequently invest the time and resources neededto test sufficiently," Krigsman added. "To do a proper test is aproject in and of itself." Krigsman also questioned New Enterprise's contention that thesystem issues have had no material impact. "When an IT failureimpacts a company's revenue or ability to make SEC filings, clearlythe situation is severe." Chris Kanaracus covers enterprise software and general technologybreaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com. I am an expert from rfid-smartcard.com, while we provides the quality product, such as Rfid Card Reader Manufacturer , China Rfid Transponder, Rfid Key Fob,and more.
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