п»їRisk that associated with ERP implementation and measures that can be taken to correct these hazards. A. Risk that are determined with the execution of ERP
1 . Lack of positioning between organization strategies. installment payments on your Lack of Control
3. Complexness of the Project
M. Commitment of top level management.
1 . IT literature has plainly demonstrated that for IT projects achievement management support is critical. 2 . By ENTERPRISE RESOURCE PLANNING any corporation goes through a significant change this could be prepared strategically. 3. The success of ENTERPRISE RESOURCE PLANNING is completely influenced by top management. C. Reengineering the whole organization structure
1 ) Implementation of ERP entails restructuring the corporation to business standards. 2 . Some businesses will be complex consequently ERP will need customization. several. Cost of reengineering and modifying the software in respect to requirements in quite high. D. The use of ERP is same for every firm
1 . Normally want a sole solution for problems coming from ERP. installment payments on your Integration certainly now has been estimated as the most expensive process in ERP implementation. a few. Organizations ought to understand the effectiveness of integration process. В
In order to accomplish maximum efficiency the risk associated with any job must be minimized. Many anatomist, medical organization install various kinds of tools to overcome the danger factor. This is certainly done through the identification of inherent, control and recognition of risk followed by the establishment of your acceptable specified level of general risk that may be function of other hazards 1 . Similar reason could be thought upon for the implementation of your ERP system. In order to have effective implementation in the ERP the firms want identify raise the risk associated with every task and apply suitable controls applied to minimize the risks. The lack of positioning between the organization strategy, composition, and processes and the chosen ERP program is a single risk that is repeatedly recognized in the literature2. Both the anatomist and organization literature make the conclusion that ERP system cannot be powerful unless and until business restructures their operational techniques. Moreover the ERP execution project must be business proposal. This requires the organization to gain ideal clarity and fidelity of purpose. Finally, a bottom line direction is needed to achieve these types of goals. With an ENTERPRISE RESOURCE PLANNING project, loosing control is yet another major risk. Two ways by which loss of control usually takes place: having less control over the project group and the insufficient control over staff once the strategy is operational. The lack of control comes from the devolution of the decision making and subsequent ineffective approval of decisions. If the ERP product is implemented a project team must be given the task to have some knowledge regarding the implementation of ENTERPRISE RESOURCE PLANNING system. On the other hand where the job team offers complete control over the ratification of its very own decisions produces potential risks. The second risk is that a great operational ERP system must always results in the devolution of responsibility and empowerment of lower level workers. Another main risk is usually complexity of the project. A great ERP system implementation requires relatively large expenditure pertaining to the acquirement of the hardware, software, execution costs, talking to fees and training costs3. Also an ERP system completion project has a wider scope in comparison to most other data system implementations, and may cause a important range of changes inside an organization. The product range and the difficulty of the job area supply is significant risk. ENTERPRISE RESOURCE PLANNING system is not just about implementing software program or changing the software program, rather this can be a matter of changing and transfering the whole business practices for an organization. Commitment of best level managing is very important to get the success of projects that require ERP. The IT books has obviously demonstrated that for IT projects to become...
References: 1- Arens, A. A.; Loebbecke, J. T. (1997): Auditing: An Integrated Approach. PrenticeHall. Top Saddle Water. NJ
2- Davenport, To. H. (July/August 1998): " Putting the Enterprise in to the Enterprise SystemвЂќ, Harvard Organization Review, vol. 76, d. 4: 121-133.
3- Barki, H.; Rivard, S.; Talbot, J. (Fall 1993): " Toward a great Assessment of Software Development RiskвЂќ, Journal of Management Info Systems, vol. 10, n. 2: 203-225.
a- Davenport, T., " Putting the Enterprise into the Enterprise System, " Harvard Business Assessment, July September 1998, Vol. 76, Number 4, pp. 121-131.
b- Melymuka, K., " ERP is Growing coming from Being Just an Efficiency Application to One Which could Also Help a Company Develop, " Computerworld, September 1998.
c- Edwards, J., " Expanding the Boundaries of ERP, " CIO, Come july 1st 1, 1998.
d- Schwartz, K., " Putting Consultants on Your Group, " Beyondcomputing, Vol. several, No . 6th, August 1998