Waste management Sues SAP for Alleged Fraud and Breach of Contract

DCO20119-L07-T2 Chan Hoi Yee(52569566) Kong Lai Yan(52632431) Ng Fung Ting(52642020) Ng Ka Wing(52587222) Pang Chun Hing(52632222)

Introduction of Company Background

Waste

Management Incorporation (WMI)

Integrated

waste & environmental services Provided to commercial, industrial, municipal and residential customers
SAP

AG

Enterprise

software for managing business operations & customer relations Best-known product - ERP

Introduction of Case
In

December 2005
WMI

signed a contract with SAP for its ERP software SAP promised to deliver by Dec 31, 2007
On

March 20, 2008

sued SAP for alleged Fraud and Breach of Contract - used a "fake" software demonstration to trick the trash hauler into believing SAP's products would meet its needs

WMI

Case Questions 1

What actions should WMI have taken to lessen the risk of this project and avoid these problems?

Problem:
software

provided by SAP is failed to work cannot make any IT transaction Loss of profit

Case Questions 1

What actions should WMI have taken to lessen the risk of this project and avoid these problems?

Actions
Black

take:

box testing White box testing Ensure the details of the software before signing the contract

Case Questions 2 What sort of losses has WMI incurred from the delay of this project? How has the lack of success on this project affected SAP?

Losses

of WMI:

Worsen

reputation Caused environment problem

Case Questions 2 What sort of losses has WMI incurred from the delay of this project? How has the lack of success on this project affected SAP?

Losses

of SAP:

Worsen

reputation Relationship with WMI -> broken

Case Questions 3

Do research on the Web to find out the current status of the lawsuits between WMI and SAP. Write a brief report summarizing your findings.
Current
WMI
SAP
pay

Status:
(March 2010)

& SAP

mediation

$80million

Case Questions 3

Do research on the Web to find out the current status of the lawsuits between WMI and SAP. Write a brief report summarizing your findings.
Current
Swiss
SAPs

Status:

Re International

liability insurance provider Responsible to share the settlement fee

SAP

& Swiss Re International

about the settlement fee

Sue

Professional Certification or the chartering of Engineers in HK

Institution

of Engineering and Technology (IET) Hong Kong HK Local Network of IET Licensed by the Engineering Council to award the professional engineering qualifications defined in the UK Standard for Professional Engineering Competence

Professional Certification or the chartering of Engineers in HK

Hong

Kong Institution of Engineers (HKIE) Qualifying engineers in Hong Kong Accreditation of Hong Kong's engineering degrees and sub-degrees Fully verified by 8 countries, e.g. UK, USA and Canada

Implication of Licensing

Capability

Certification and charter are usually released by occupational associations or society qualify the members or candidates The associations are usually leaded and controlled by a group of professionals for such specific aspect Ensure high professional code Hard to obtain Treat it as treasure

Implication of Licensing

Enhance Public Safety

Only duty licensed people: legally perform engineering services for the public Encourage people to follow the highest standards of profession, practicing a code of ethics and avoid malpractice or negligence Violators would be punished such as license revocation or imprisonment

Responsibility could be traced by the organization or association

Implication of Licensing
Licensing

People cannot call themselves engineers/ professional engineers unless licensed Avoid professional negligence and malpractice lawsuit The product quality and safety can be guaranteed Enacted legislation to protect public safety

Implication of Licensing
Without licensing

No requirements for heightened care & no concept of professional malpractice Cannot protect public safety avoid responsibility of law & legal penalties Counterfeit charter or certification owner will be increased Lack of quality assurance