
HP-EDS: the failed CRM project that cost it £200m ...and counting - monkeygrinder
http://www.computerworlduk.com/management/it-business/supplier-relations/news-analysis/index.cfm?articleid=2975
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monkeygrinder
The case is unique because Sky claimed EDS was fraudulent, and had dishonestly
exaggerated its abilities and resources when bidding for the contract.

This case result shows two things: IT suppliers’ sales teams must be more
careful about their claims when they are trying to sell a system. Gone are the
days when there was a disparity between what is sold and what is delivered.

Second, the liability cap is immaterial in fraud cases. EDS had a cap that it
would not be liable for more than £30m worth of damages. But because Sky sued
for fraud, the liability cap was rendered irrelevant.

What do you think?

~~~
rogersm
It's a clever way of suing your provider. Accenture was sued using the same
strategy: [http://blog.obiefernandez.com/content/2008/03/sap-sued-
for-t...](http://blog.obiefernandez.com/content/2008/03/sap-sued-for-ty.html)
But Does Sky need to demonstrate EDS sales team was acting in bad faith?

These kind of sales processes are so long and complex that badly selling the
solution does not imply bad faith. I'm completely sure that the sales team had
not all the information of how things were going to be delivered and for sure
they took some optimistic assumptions, but I'm sure they're not trying to
swindle sky.

Just for laughs, I recommend this scribd presentation:
[http://www.scribd.com/doc/2304178/Confessions-of-an-Ex-
Enter...](http://www.scribd.com/doc/2304178/Confessions-of-an-Ex-Enterprise-
Salesperson-by-Doug-Mitchell)

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ordinaryman
Reminds me of the recent news on <http://bit.ly/Sydney-Water-CRM>

"expected to cost $55 million, more than double original budget of $21 million
and one-and-a-half years behind schedule"

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mseebach
It absolutely blows my mind how these things can be so complicated. There's a
pipe and a meter. The meter is read _n_ times a year. Invoice. Done.

I can see how asset management can be complicated for a utility, but what
exactly is keeping Sidney Water from using an off-the-shelf product for
friggin' CRM?

~~~
weego
If you can sign off $55 million you must be a very powerful person. Anyone can
sign off buying a software box.

Same reason why in Japan there are bridges that link 2 places no one needs to
go to.

~~~
dreemteem
Same thing in Scotland, with the Edinburgh Parliament building. Started out as
costing £40m, ended up costing more than £400m.

In this case, the architect died before it was finished. Noone to sue.

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artlogic
I worked for EDS for 9 years... they were barely able to keep their own
internal CRM running. It was a nightmare. I sometimes wondered how the sales
staff were able to hide the internal dysfunction so well. Practice I guess.

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sailormoon
_The judge noted in his judgment of the case that the Entire Agreement Clause
failed to explicitly cover EDS from claims of negligent misrepresentation._

I guess I'm not really cut out to be a lawyer; I can't really imagine having
the gall necessary to demand a clause in a contract protecting me from
"negligent misrepresentation" ...

~~~
conover
That's what I thought as well. Putting a clause like that in contract says to
me, "It's possible we'll do this so badly you will sue us." I'm not sure I'd
want to do business with a company like that.

~~~
sailormoon
It's like those Halliburton contracts which apparently force you to give up
your rights to complain if you're _raped_.

It's like .. right, does this happen often? What exactly inspired this
clause's inclusion?

