How Do Four Organizations Provide The Risk Factors Associated With ERP System Implementation?
RISK FACTORS
The endings provide the risk factors associated with ERP systems implementation which were
mentioned by senior project leaders and identify risks which actually materialized. These factors are
represented in order of how frequently each one was mentioned.
Failure to redesign the business processes to fit the software:
Based upon their experiences, all of the project managers learned to avoid customization. Many
companies ‘go to war’ with the package and try to make it meet their business process requirements,
only to lead the way to cost overruns and project failure in some cases. Rather than attempting to
modify the soft- ware, the chemical manufacturer re-engineered its business processes in order to
be consistent …show more content…
Management must understand and appreciate the criticality of high- tech worker turnover, recruitment and retention issues. Four organizations developed recruitment
and retention programs specifically designed for addressing the need for ERP systems professionals. In
their experience, the loss of trained ERP analysts to consulting firms was particularly frustrating (four
mentions).
Insufficient training of end-users:
Most firms emphasized making a major commitment to training end-users in system uses. This meant
reskilling the end-users in new technologies and applications and supplementing ‘generalized’ user
training with training in the use of specific application modules. Several firms emphasized user training
in reporting applications, including the use of report generators for designing and generating custom
reports (four mentions).
Inability to obtain full-time commitment of ‘customers’ to project management and project …show more content…
Getting the ‘business’ areas to dedicate people to the management of the project is a
key priority and some of the project managers found this difficult (three mentions).
Lack of integration
In terms of factors conducive to a project failure, one of the major factors associated with failure is
the lack of integration. The project requirements are based on an enterprise-wide design. One project
manager argued that ‘you cannot start with “pieces” and then try to integrate the software components
later on’. Another stated that, ‘it is important to use a “federal” approach; define what is needed at the
enterprise-level and then apply it to the business unit level’ (three mentions).
Lack of a proper management structure
Without central project leadership there is excessive duplication of effort. The pharmaceutical
manufacturer put someone ‘in charge’ and centralized the management structure of the project in
order to avoid dulcification of effort. In implementing a ‘centralized’ system, a centralized
The endings provide the risk factors associated with ERP systems implementation which were
mentioned by senior project leaders and identify risks which actually materialized. These factors are
represented in order of how frequently each one was mentioned.
Failure to redesign the business processes to fit the software:
Based upon their experiences, all of the project managers learned to avoid customization. Many
companies ‘go to war’ with the package and try to make it meet their business process requirements,
only to lead the way to cost overruns and project failure in some cases. Rather than attempting to
modify the soft- ware, the chemical manufacturer re-engineered its business processes in order to
be consistent …show more content…
Management must understand and appreciate the criticality of high- tech worker turnover, recruitment and retention issues. Four organizations developed recruitment
and retention programs specifically designed for addressing the need for ERP systems professionals. In
their experience, the loss of trained ERP analysts to consulting firms was particularly frustrating (four
mentions).
Insufficient training of end-users:
Most firms emphasized making a major commitment to training end-users in system uses. This meant
reskilling the end-users in new technologies and applications and supplementing ‘generalized’ user
training with training in the use of specific application modules. Several firms emphasized user training
in reporting applications, including the use of report generators for designing and generating custom
reports (four mentions).
Inability to obtain full-time commitment of ‘customers’ to project management and project …show more content…
Getting the ‘business’ areas to dedicate people to the management of the project is a
key priority and some of the project managers found this difficult (three mentions).
Lack of integration
In terms of factors conducive to a project failure, one of the major factors associated with failure is
the lack of integration. The project requirements are based on an enterprise-wide design. One project
manager argued that ‘you cannot start with “pieces” and then try to integrate the software components
later on’. Another stated that, ‘it is important to use a “federal” approach; define what is needed at the
enterprise-level and then apply it to the business unit level’ (three mentions).
Lack of a proper management structure
Without central project leadership there is excessive duplication of effort. The pharmaceutical
manufacturer put someone ‘in charge’ and centralized the management structure of the project in
order to avoid dulcification of effort. In implementing a ‘centralized’ system, a centralized