Risk Factors When Implementing an ERP System

In order to analyze the critical risk factors of implementing an ERP, it is important to understand and define what a risk is.

Risk is vulnerability to potential harm or damage to people, organizations, or entities. The greater the vulnerability, the greater the risk, but the more feasible the harm or damage, the greater the danger.

Now that we have a clear definition of risk and orienting it towards the best ERP software, the authors define a risk factor of implementing an ERP as an event or condition, whose occurrence is uncertain and that if it occurs will have a direct impact on at least one of the objectives of the implementation project, which may ultimately influence its success or failure.

ERP systems implementation projects, like any project (MailChimp NetSuite integration), are prone to the presence of risks, and the little control or monitoring of them, leads to failure. In order to analyze these failed implementations, we have a categorization according to those responsible for their occurrence as follows:

Solution

Within this category, we find that the risks of implementing an ERP are generated because the company interested in the system is not clear about its objectives and also has little or no experience with business management software.

Product

This category of implementation risk includes all those risks that are generated due to the discontinuity that the product’s functionality may have with respect to business needs, for example, language, local requirements, among others. This category includes all those risks generated by the need for additional developments or by possible impacts due to the high volume of transactions.

Commercial

To this category correspond those risks that are generated from agreements included in the contract, as well as everything that has not been clearly defined in the contract.

Technology

In this category are listed all those risks of implementing a system associated with the infrastructure required for the implementation and the technical feasibility of the project.

Delivery and operations

It is where most of the risks are normally found because it groups together all the risks related to the normal and correct development of the implementation of the system. Focusing on possible deliverables as well as operations.

The most common reasons are:

  • Lack of definition of roles and responsibilities.
  • Objectives and scope little or nothing defined.
  • Unclear processes by the client or poorly defined by the implementer.
  • Availability of human resources.
  • Lack of steering committees.
  • Little interaction of managers.
  • Lack of experience and knowledge of the work team.

Unfortunately, the elimination of risks in a project is impossible, they will always exist; but if we can work on the control and migration of them in such a way that their probability is reduced.

In order to avoid them, it will also be essential to have a provider that has experience in all areas and works with the best software: NetSuite, If you are looking to implement an ERP in your company, at Anchor Group we also have prepared NetSuite mobile app to take your company to meet its objectives.

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