Identification And Assessment Of Risks Associated With Erp Post Implementation

Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf

Foremost among these is that the ERP implementation efforts of many of their larger counterparts have resulted in partial failure, and in some cases total abandonment. Moreover, small manufacturers tend to lack the financial resources to adopt the entire system and may be forced to adopt a piecemeal approach to integrating the typically expensive ERP systems into their services. It is also felt that the lower staff levels in smaller enterprises when compared to their larger counterparts are inadequate for the rigorous and extensive IT training and development requirements for implementing an ERP project. It is however important for these firms to ensure that they make adequate studies of ERP systems before deciding to do away with them altogether because it has been found that they can be of use to the success of the business, especially after successful

ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.

As a result of the vast nature of the ERP implementation process, risks are always present and existent. The related risks are commensurate with the scale of the ERP system project. Risks range from broad to narrow and pervasively affect the outcome of business processes after the “go-live” date when the ERP system is fully operational and available to end users (employees, lower level managers, etc.).

The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.

Risk assessment is one of the most crucial elements in the implementation of an ERP system that determines the success or failure of the whole system. GBI is vulnerable to various implementation risks and failing to assess these risks appropriately may result in budget and resource allocation problems. A careful analysis has been undertaken in this report to identify six major critical risk factors which need to be

Bernroider, E. W. N & Leseure, M. J 2005, ‘Enterprise resource planning (ERP) diffusion and characteristics according to the system’s lifecycle: A comparative view of small-to-medium sized and large enterprises’, Working Papers on Information Processing and Information Management, Institute of Information Processing and Information Management, Vienna University of Economics and Business Administration.

Besides, the creators assert that their examination was particular from earlier studies. The more extensive fields of enthusiasm for ERP frameworks had been principally centered around ERP usage and undertaking administration perspectives (e.g. Oliver et al. 2005; Ehie and Madsen 2005; Yusuf et al. 2004), and those about ERP dangers had been tended to in ERP business issues and perspectives e.g. Kleim and Ludin (2000, p3). Interestingly, the exploration point of ERP post-usage was to a great degree constrained. Accordingly, they particularly focused on dangers in ERP post-usage to satisfy this examination hole. In any case, most as of late, there have been more analysts who have gotten to be keen on this range, for example, ERP post-usage execution in the Chinese producing Industry (Yan et al. 2010).

Besides, the creators assert that their examination was particular from earlier studies. The more extensive fields of enthusiasm for ERP frameworks had been principally centered around ERP usage and undertaking administration perspectives (e.g. Oliver et al. 2005; Ehie and Madsen 2005; Yusuf et al. 2004), and those about ERP dangers had been tended to in ERP business issues and perspectives e.g. Kleim and Ludin (2000, p3). Interestingly, the exploration point of ERP post-usage was to a great degree constrained. Accordingly, they particularly focused on dangers in ERP post-usage to satisfy this examination hole. In any case, most as of late, there have been more analysts who have gotten to be keen on this range, for example, ERP post-usage execution in the Chinese producing Industry (Yan et al. 2010).

The primary goal is on the same lines as the intention of this abridged concept. The auxiliary aim is to turn inside out the outcomes, feasibility and recurrence of the already noted ERP-risk events, as well as to understand the connections drawn, both possible and sure, between all these risks. Peng and Nunes mused that the conclusions that they draw from their research would definitely be a bonus for people working in the deliberation and devising of strategies of ERP systems and other related fields. Also, the researchers have stated that their findings make them stand out among all the previous research. Why? Because the studies about ERP risks have been associated with ERP business happenings, example: . Kleim and Ludin (2000, p3). or delve into ERP execution and project sustaining aspeccts. (e.g. Oliver et al. 2005; Ehie and Madsen 2005; Yusuf et al. 2004). Distinctive from the above examples, this research headline of ERP post-implementation covers a narrow range of topics, focussing on risks only. In the recent times, there are more people who have been gaining an interest in this field and are willing to offer their insights, such as ERP post-implementation

The objective of the aforementioned piece was to carry out a process of analysis, valuation and discovery of potential risks linked with the post-implementation of ERP. The writers conducted this observational and factual quest using a perceptible path. They facilitated and implemented an inferential research design that stood on a review of cross-inspection queries for 118 major bodies to introspect the prospective liabilities of ERP post-implementation. Nonetheless, some impediments should be taken into account. This

Anderson (2014) said “ERP implementations rarely fail in formulation; however, they frequently fail in implementation.” It does not in with just purchasing an ERP system. A well designed implementation plan is the company’s ticket to success. A well designed implementation plan addresses all potential bottlenecks like execution problems such as lack of training, attitude and participation of the entire workforce from leaders to staff, and member selection for the whole ERP project implementation team. An ERP project is

The business world is characterized by heavy technology. Firms are relying on technology to handle numerous processes. It is for this reason that organizations are hunting for integrated systems that can combine all subsystems into a big one capable of sharing common database. Thus, enterprise resource planning (ERP) plays a great role here. The ERP system incorporates several information structures into one system. IT firms can have three main information systems namely manufacturing, human resource and finance. This software integrates data from these subsystems into a single one as well as enhancing data sharing. Any company intending to adopt the systems should consider whether or not it is increasing efficiency (McGaughey &

Although (Newman,2000) suggest that with the implementation of ERP has been successful in business industry rather than universities because universities have distinctive structure and decision making process. Hence, with the implementation of ERP it deliberately affect organizational structure. For instance now universities have consider “education as a business and students as a customer”(Tsichritiz,1999). However with the implementation of ERP panic the academics for use of advanced technology affect in accelerating the clearness of transaction . on the contrary staff horror about their job (Allen,2002).

Enterprise resource planning (ERP), when implemented successfully ,can be linked to all departments of the organization to access, share and collect information. It has many functions such as, order administration, manufacturing, human resources, financial systems, and customers into a tightly integrating system with sharing data and visibility and distribution with external suppliers. (Injazz, 2001).