The Observation
Revlon attempted to roll out SAP across its North American business. The implementation failed so severely that the company could not fulfill 64 million dollars in product shipments. Stock prices dropped nearly 7 percent in 24 hours. Investors launched a class-action lawsuit.
The Analysis
This was not a software bug. It was a failure of executive preparation. The company ignored the fundamental requirement to understand its own business processes before attempting a massive integration. They had just acquired Elizabeth Arden and were struggling to merge operations.
Forcing a new enterprise resource planning system onto a broken foundation guarantees operational collapse. Excessive system customization and a complete lack of business process reengineering are the primary killers of these projects.
The Checklist
Validate readiness before launch. Never deploy software onto fragmented operations.
Appoint a named human owner for the transition.
Implement an incremental rollout. Big bang deployments multiply your risk profile.
Question for the network
Are you preparing your business processes before integrating new enterprise software, or are you just hoping the technology fixes broken operations?
References
- Henrico Dolfing: Case Study 6, How Revlon Got Sued by Its Own Shareholders Because of a Failed SAP Implementation.
- Analysis of ERP Critical Failure Factors: A Case Study in an Indonesian Mining Company.
By Michael Lennard Gnaedinger. © 2026 Gnaedinger Consultancy. All rights reserved.
Discuss this with our team.
Senior, evidence-led conversations on operational excellence, ERP, supply chain, and risk.