Risk%20factors%20in%20enterprise-wideERP%20projects

Risk%20factors%20in%20enterprise-wideERP%20projects - RO T...

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Introduction In the past few years many organizations have initi- ated enterprise-wide/ERP (enterprise resource plan- ning) projects using such packages as SAP, Peoplesoft and Oracle. These projects often represent the single largest investment in an information systems (IS) project in the histories of these companies and, in many cases, the largest single investment in any corporate- wide project. These enterprise-wide/ERP projects bring about a host of new questions because they represent a new type of management challenge. The management approaches for these projects may be altogether differ- ent from the managerial approaches for traditional management information systems (MIS) projects. Some of these questions and issues are as follows. (1) What are the major risk factors associated with implementing traditional MIS projects? (2) What are the major risk factors associated with enterprise-wide information management projects? (3) What are the differences? (4) What new risk factors need to be addressed in ERP projects? (5) What are some of the risks in ERP projects that are not factors in non-ERP projects? Most organizations have extensive experience man- aging traditional MIS projects, but these new ERP projects may represent new challenges and present new risk factors that must be handled differently. This paper will provide case studies of seven organizations implementing enterprise-wide/ERP projects and will provide insight into each of these questions based upon their experiences. Risks in implementing IS projects A simple deŽ nition of ‘risk’ is a problem that has not yet happened but which could cause some loss or threaten the success of your project if it did (Wiegers, 1998). A number of research studies have investigated the issue of the relative importance of various risks in software development projects and have attempted to classify them in various ways. Much has been written about the causes of IS project failures. Poor technical methods is only one of the causes and this cause is relatively minor in comparison to larger issues such as failures in communications and ineffective leadership. Studies dealing with risk factors in IS projects have described issues of organizational Ž t, skill mix, manage- ment structure and strategy, software systems design, user involvement and training, technology planning, project management and social commitment. Table 1 provides a summary of the risk factors in IS projects. Organizational Ž t In their paper, Barki et al . (1993) proposed a variety of risk factors associated with the organizational environ- ment, including task complexity, the extent of changes, resource insufŽ ciency and the magnitude of potential loss. In the framework developed by Keil et al . (1998), the risks in the environment quadrant deal with issues over which the project manager may have no control, such as changing scope/objectives and con icts between user Journal of Information Technology (2000) 15 , 317–327 Risk factors in enterprise-wide/ERP projects
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This note was uploaded on 11/05/2010 for the course FCBA MBA608 taught by Professor Dr. during the Spring '10 term at Baptist College of Health Sciences.

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Risk%20factors%20in%20enterprise-wideERP%20projects - RO T...

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