Risks and Mitigation of ERP System Implementation

Running head: INFORMATION SYSTEM DESIGN AND MANAGEMENT
Information System Design and Management
Name of the Student
Name of the University
Author’s Note

INFORMATION SYSTEM DESIGN AND MANAGEMENT1
Table of Contents
Executive Summary...................................................................................................................3
Introduction................................................................................................................................4
ERP Management System..........................................................................................................4
Key Benefits of the ERP System...............................................................................................5
Focused Costs of IT...............................................................................................................5
Improved Planning and Reporting.........................................................................................5
Total Visibility.......................................................................................................................5
Improved collaboration..........................................................................................................5
Improved Efficiency...............................................................................................................6
Data Quality and Security......................................................................................................6
Standardized Process..............................................................................................................6
Facilitated Regulatory Compliance........................................................................................6
Architecture of ERP System......................................................................................................6
Two-tier Implementation.......................................................................................................7
Three-tier Server-Client Implementation...............................................................................7
Risks of ERP system Implementation........................................................................................7
No Clear Vision......................................................................................................................7
Selecting Wrong Software.....................................................................................................8
Customization........................................................................................................................8
Exposing Sensitive Data........................................................................................................8

INFORMATION SYSTEM DESIGN AND MANAGEMENT2
Lack of Client Buy-In............................................................................................................8
Poor Project Planning.............................................................................................................8
Mitigation of Risks of ERP system............................................................................................8
Get Buy-In from Start............................................................................................................9
Set Goals for New ERP System.............................................................................................9
Determine the Budget............................................................................................................9
Knowledge about the Hosting Options..................................................................................9
Understanding the Capabilities..............................................................................................9
Focus on Data Migration......................................................................................................10
Change Management Strategy.............................................................................................10
Recommendation......................................................................................................................10
Decision to implement the ERP...........................................................................................10
Selecting ERP system..........................................................................................................10
Implementation Methodology..............................................................................................11
Planning and Implementation..............................................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................13

INFORMATION SYSTEM DESIGN AND MANAGEMENT3
Executive Summary
ERP is a management system of business process and it allows the organizations to
use the system of the integrated system. This paper discusses the risks of th implemenetion of
ERP system in the organation and the techniques in which way the risks can be mitigated.
Ths paper proposed some of the recommendation for the implementation of the new ERP
system in Leadtek Corporation. This paper concludes tha if the organization make the proper
process of the implementation with the proper expectation of the stage of any project, the
ERP system implementation will end as the success. Many organizations are not successful in
realizing the benefits of the ERP system and the implementation. The study formulates the
comprehensive recommendation for Leadtek Corporation for the management of the ERP
system in the project phase.