[White Paper] A Hazardous Waste – Israel Chemical Limited’s SAP Implementation

Israel Chemical Limited (ICL) is an Israel-based chemical company with global operations.

ICL White paper coverThe company grew leaps and bounds through acquisitions and embarked on an ambitious program to deploy a common SAP-based operating template across its three operating units.  The results were disastrous.

The initial program definition indicated a project cost of approximately $120M USD, but ultimately the expected costs of the program ballooned to $500M and the program was stopped before any major implementation began.  What followed was a write-off of $290M in project costs, the resignation of the CEO, and a freshly minted lawsuit against IBM filed in an Israeli district court.

This white paper will provide an in-depth overview of the company and a chronology of events highlighting the key decisions that were made, along with the downstream implications of each of these key decisions.  This chronology was assembled from publicly available documents and confirmed with interviews with principals of the program.  As the lawsuit is outstanding, we expect to update this case as more information becomes publicly available.

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