Challenges and Risks of Implementing an ERP System in an Enterprise

Challenges and risks of
implementing an ERP
system in an enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
Report purpose........................................................................................................................1
Report background.................................................................................................................1
Report outline.........................................................................................................................2
MAIN BODY...................................................................................................................................2
Success factors of implementing an ERP system...................................................................2
Challenges of implementing an ERP system..........................................................................3
Risks of implementing an ERP system..................................................................................3
Mitigation strategies of implementing an ERP system..........................................................4
DISCUSSION..................................................................................................................................5
Project management techniques and methods utilised...........................................................5
CONCLUSION................................................................................................................................6
Summary.................................................................................................................................6
Recommendations..................................................................................................................6
REFERENCES LIST.......................................................................................................................8
Books and Journals.................................................................................................................8
APPENDICES.................................................................................................................................9
Personal reflection on the process of managing the learning on this module........................9

INTRODUCTION
Report purpose
The purpose of the report is to upgrade the current information system for a total
enterprise resource planning (ERP) system. The current report basically has the purpose to
compile the information regarding the identification of various key challenges and different risks
or hazards associated with the upgraded ERP system. This also uses the several methodologies
and planning procedures in order to perform the smooth implementation of the information
system without any loss in production and also a seamless transition. This report demonstrates
the the understanding of the project management methodology while developing the plan for
new ERP system and also to support the entire judgement with the help of academic
methodologies which must be suitable for the relevant and authentic content used by using
quality references in the entire report.
Report background
Enterprise Resource Planning (ERP) System can be defined as the type of information
system or a software which is used and implemented by the organizations so that it can be easy
for them to manage their day to day routinely activities and basic functioning or workflow within
the firm. Such activities includes accounting and procurement along with the project
management and risk management which is also followed by the compliance and supply chain
operations. It is considered as the integrated management of the major businesses processes
which is performed often in a real time with the help of mediators such as software and
technology (Fernandez, Zaino and Ahmad, 2018). ERP system is basically the application which
automates different businesses processes that helps in the provision of insights and internal
controls while drawing on the database which is centralised in nature. It gathers the inputs or
instructions or commands from the user and then renders the accurate output as per the quality of
input. Users are the several departments of the organization such as finance and human resource
along with the marketing and operations which is followed by the research and development and
many more. Some of the examples of ERP system are product life cycle management, warehouse
management, supply chain management which includes distribution, purchasing and
manufacturing, customer relationship management, online sales, sales order processing, decision
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support system, costing, budgeting, strategic employee management and many more as per the
needs and requirements of a business (Mahmood, Khan and Bokhari, 2019).
Report outline
The following discussion is based on the upgrading of the enterprise resource planning
system. It includes the success factors of implementing an ERP system and challenges of
executing an ERP software along with the risks of utilizing an ERP system and mitigation plan
of applying an ERP software which is followed by the project management techniques and
methods utilised and in depth research and academic theory used. Conclusion is also included
with summary and recommendations along with the personal reflection on the process of
managing the learning as per the module. Therefore, the below information provides the insight
and view of all such areas to be covered in an effective and efficient manner.
MAIN BODY
Success factors of implementing an ERP system
There are various success factors of implementing an ERP system. Executive support is
one of the factor. This is because leaders and managers are nothing until and unless the executive
team do not perform according to the plan. Employee involvement is an another factor. This is
because engagement of employees helps in gathering of new ideas which supports in decision
making within the organization. Plan to optimise the business processes is also one of the factor.
This is because the entire process of the business is dependent on the functioning of ERP system
so therefore its optimization is necessary. Proactive change management is also an another factor
(Kramer, 2018). This is because change must be initiated so that innovation can come up in order
to implement the ERP system in strategic manner. Project management tools is one of the factor.
This is because the choosing of the relevant and suitable tool of project management helps in
effective implementation of the ERP system. Incorporate BPR in ERP activities is an another
factor. This is because business process re-engineering helps in proper collaboration with the
ERP system which facilitates the integration among different functions. Feasibility study is also
one of the factor. This is because it is important to study the cost and time used while
implementing the ERP system for better analysis of the revenue and profits. Safety and security
system is also an another factor (Chofreh, Goni, Klemeš and Khan, 2020). This is because such
system decides that how well the data and technical resources are protected from any cyber
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