The document discusses risks associated with enterprise resource planning (ERP) implementations. Some key risks include failing to redesign business processes to fit the new ERP software, selecting an ERP system that does not properly fit business requirements, and having insufficient IT infrastructure and automation that can slow down the ERP system. While ERP systems are meant to improve business performance, only about 10% of implementations are considered fully successful. The document advocates redesigning business processes to fit the new ERP system instead of heavily customizing the system, as customization is costly and time-consuming.

1. ENTERPRISE
RESOURCE
PLANNING
RISKS
Sukaina A. Asmieda 1985
Department of Software Engineering Faculty of Information Technology Libyan
International Medical University
Correspondence: sukina_1985@limu.edu.ly
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2. The design and implementation of system disrupts the business
operations.
Lack of metrics for evaluating project work by phases.
Insufficient automation.
Objective

3. For many decades companies have adopted the strategy of using
Commercial-off-the-Shelf Enterprise Resource Planning (ERP)
systems to meet their requirements. Almost all of them do come
with some known ERP implementation risk.
The availability of extensive pre-existing functionality in these
is supposed to reduce risk and improve the performance of
the business. However, a study estimates that only 10% of
ERP implementations succeed with full functionality.
Risk Factors You Need
to be Mindful of

4. 'Failure to Redesign Business Processes to Fit the Software'
There is a strong desire to fit the new ERP system to fit the
current process. But this is hardly the case. In fact, the right
thing is to redesign your current processes to fit to purchase an
ERP system.
The reality is neither option is easy. It is very difficult in the most
business to change old or existing processes and customizing the
ERP system to fit to current processes is a costly and time-
consuming venture. this is the biggest ERP implementation risk
ERP Implementation Risk

5. due to poor ERP selection and evaluation process, ERO software
was found to be ill-fitting with the business requirements. e.g.
ERP was inefficiently managing a high volume of product master
files, and unable to design complicated bills of materials and
production planning formulation. some research results indicate
the ERP system was utilized in a very limited way due to problem
misfit. the project teams relied on heavy customization e.g.
changing the system program, or writing many management
reports, or conducting data transfer as workarounds to solve
problems.
Lack of metrics for evaluating project
work by phases

6. poor IT infrastructure due to top management's insufficient
resource provided for implementation budget, a low performance
IT infrastructure hardware was proposed by consultants and
project manager so as to reduce the costs of ERP
implementation. the poor infrastructure contributed to the slow
processing capability of the ERP system.
Insufficient automation

7. Wong, Ada; Scarbrough, Harry; Chau,
Patrick; and Davison, Robert, "Critical
Failure Factors in ERP Implementation"
(2005). PACIS 2005 Proceedings. 40.
http://aisel.aisnet.org/pacis2005/40
REFERENCES
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Thank
You!
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