Red Rooster ERP Implementation Analysis

This assignment requires an in-depth analysis of Enterprise Resource Planning (ERP) implementation within the context of Red Rooster, a popular fast food chain. Students need to examine various factors influencing successful ERP implementation, referencing relevant research and case studies. The analysis should delve into the potential benefits and challenges associated with ERP adoption for Red Rooster, considering its operational structure and industry landscape.

Running Head: MANAGING INFORMATION SYSTEMS
Letter to Sponsor
Dear David Duff,
I am <INSERT NAME>, Business and Marketing Manager for Red Rooster. You should
know that as a part of our business plan and strategy, we are looking to implement ERP system
that will not only enhance our business but will also provide us with some new business
opportunities as we continue to grow. It is in my knowledge that you make significant
investments in projects where you can also earn high values of profit. Hence, as we are looking
for sponsor who will invest in our project and support us with sufficient funds, we have selected
you as one of the potential investors in the project. To clear your doubts regarding investment, I
have attached overall proposed budget for the project and the possible cost benefit from which
you will also receive a major share. I have also attached the project plan document so that you
are better prepared to learn about the project and its future prospects. We at Red Rooster hope to
build up a partnership in a short time that will benefit both the parties sufficiently.
Sincerely,
<INSERT NAME>
Business and Marketing Manager
Red Rooster

1MANAGING INFORMATION SYSTEMS
Managing Information Systems
Name of the Student
Name of the University

2MANAGING INFORMATION SYSTEMS
Table of Contents
Letter to Sponsor..............................................................................................................................0
Executive Summary.........................................................................................................................3
1.0 Introduction................................................................................................................................4
2.0 Project Development and Implementation Plan........................................................................4
2.1 Project Objectives..................................................................................................................4
2.2 Identification of Problem and Proposed Solution..................................................................5
2.3 Discussion of SDLC Steps.....................................................................................................6
2.4 Analysis of Existing Business System.................................................................................10
2.5 Project Schedule and Gantt Chart........................................................................................11
2.6 Proposed Budget and Expenses...........................................................................................15
2.7 Stakeholder Analysis...........................................................................................................19
2.9 Risk Identification and Management Plan...........................................................................20
2.10 Change Management Plan.................................................................................................21
3.0 Conclusion...............................................................................................................................22
References......................................................................................................................................23
Appendix........................................................................................................................................27

3MANAGING INFORMATION SYSTEMS
Executive Summary
Information systems are the technical setups that help to grow and manage the business
of an organization. Since manual business management has been replaced by computerized
control, information systems play a very important role in the every business organization. Red
Rooster is an Australia and New Zealand based fast food retail chain that also uses information
system for business management over its entire supply chain. However, the current information
system has a number of problems that must be addressed in order to enhance the chances of new
business opportunities of Red Rooster. This particular report is based on the development of a
project plan that emphasizes on the development of ERP system that will replace the existing
information system at Red Rooster. This ERP system will address all the problems identified in
the current information system of Red Rooster and will also help the company to explore new
business possibilities.

4MANAGING INFORMATION SYSTEMS
1.0 Introduction
Red Rooster is a fast food retail chain that mainly conducts business over various parts of
New Zealand and Australia. Recently it has been found that the current information system used
by the company is not sufficient in terms of the current market and there are a lot of issues
occurring due to this (Gupta and Naqvi 2014). The company wishes to address and solve these
issues immediately as well as venture new business possibilities that will enhance the growth of
the company including entrance in new and international markets.
In this report, a project plan has been provided that deals with the planning of the entire
system development life cycle of the proposed ERP system that will solve the problems
highlighted in the current information system at Red Rooster. The new ERP system will replace
the existing information system and will increase the business efficiency in fulfilling business
goals and opportunities set by the company.
2.0 Project Development and Implementation Plan
2.1 Project Objectives
The main objective of this project is to identify an information system related problem
faced by the chosen organization and propose a system that will be able to solve the identified
problem as well as allow new business possibilities for the organization.
In this particular project, the chosen organization is Red Rooster Australia, which is a fast
food restaurant chain dealing with chicken based food products. From the analysis of the existing
business information system used by Red Rooster, it has been found that the main problem faced

5MANAGING INFORMATION SYSTEMS
by the company is that there is a lack of sufficient business continuity and coordination among
different aspects like marketing, financing and inventory management (Shatat 2015). Hence, the
objectives of the project can be defined as follows.
 To identify the reasons behind the lack of business continuity
 To identify the issues faced by Red Rooster while using the existing business
information system
 To propose a new system to replace the existing business information system (the
chosen proposed system is ERP)
 To prepare an implementation plan for the proposed ERP system
 To analyze seven steps of SDLC for the proposed implementation
 To estimate schedule and budget for the proposed ERP implementation
 To analyze risks associated with the project
 To prepare a change management plan for the project
2.2 Identification of Problem and Proposed Solution
Red Rooster deals with fast food retail chain whose exclusive expertise is various chicken
based food dishes. Due to the quality and taste of the dishes, the company is extremely popular
in Australia and New Zealand. Due the size of the organization, manual management is not
possible and hence, the company has implemented a business information system that helps to
manage all the business operations over all the branches of the supply chain (Zach, Munkvold
and Olsen 2014). However, with the rapid growth of the organization, it has been found that a lot
of business problems have started to appear. Due to lack of coordination between different
branches of the chain, no business continuity can be established anymore. Furthermore, the

6MANAGING INFORMATION SYSTEMS
centralized control can no longer be established as the various chains are almost acting on an
independent basis.
Based on the issues identified, it can be said that the organization needs a new
information system that will not only establish centralized control over the business and
management operations but will also help to maintain a business continuity over all the supply
chain retails (Katerattanakul, Lee and Hong 2014). This will in turn help to explore new
business opportunities and increase business productivity over the annual sales. Hence, the
proposed system for the organization is Enterprise Resource Planning (ERP) that will satisfy all
the proposed requirements and address the problems discussed above. The ERP system will
integrate all the business sectors of the organization, namely, planning, inventory management,
purchasing of raw materials, sales and marketing management, financing and human resource
management. The entire process will be managed and controlled by software that will be a used
in a centralized system (Ram, Wu and Tagg 2014). As a result, a centralized management will be
established that will also monitor and control all the business operations conducted in the
different supply chain retails over the regions served by Red Rooster. Furthermore, it will also
enable Red Rooster to explore new business opportunities including a chance to venture in new
international markets.
2.3 Discussion of SDLC Steps
The implementation of the ERP should be conducted in a series of steps that must be
executed one after another in the right order. The entire implementation process is termed as
System Development Life Cycle (SDLC) that also includes seven distinct steps for
implementation of the new system (Ravasan and Mansouri 2014). For the analysis of the
proposed SDLC, existing business data of Red Rooster have been analyzed that reflects the trend

7MANAGING INFORMATION SYSTEMS
of business operations with respect to the current information system used by the company. The
proposed SDLC steps required for this particular project are discussed and explained as follows.
i. Planning – This is the planning phase of the SDLC where a suitable plan is
prepared for the development and implementation of the proposed system. This
planning phase also has a wide variety of sub-phases that include development of
draft plan, analysis of project feasibility in terms of finances and technical
support, estimation of budget and schedule, estimation of cost benefit, risk
analysis, communication planning, stakeholder analysis and others (Chou et al.
2014). Most of these planning phases should be done accurately and the
organization must ensure all the given conditions are feasible for the development
and implementation of the system. Furthermore, during planning, the company
must also ensure sufficient cost benefit and business feasibility are earned before
proceeding with the rest of the project life cycle.
ii. System Analysis and Requirements – This phase is next to project planning and
is generally executed after the overall project planning is almost finalized. Before
the validation and authorization of the final project plan, system analysis needs to
be conducted to identify the exact problems of the existing system and what needs
to be improved to implement the proposed system (Almajali, Masa'deh and
Tarhini 2016). System analysis helps to identify the loopholes of the existing
system that also helps to prepare detailed project planning as well as develop
more accurate budget planning. After the system analysis is complete, a
requirement list needs to be prepared that will be validated against the prepared

8MANAGING INFORMATION SYSTEMS
project planning. After addition or deletion of requirements from the checklist, the
final project plan is developed, validated and authorized.
iii. Systems Design – This is the design phase of the project when the proposed new
system is designed based on the requirements. This phase is similar to the
preparation of the blueprint of a building and it is essential that a proper system
design is prepared else the rest of the project may fail entirely. For this project, a
suitable system design must be prepared for the proposed ERP system that should
include all the technical aspects of the project (Galy and Sauceda 2014). The
technical aspects of the project include hardware and software that should
installed and developed in order to implement the proposed ERP system. This will
also include the development of a centralized server that will enable the
management team to have more control over the business operations in all the
retail chains.
iv. Development – Development phase is the longest of all the phases in the SDLC
and will follow project plan and the system design. After the system design is
finalized by the project management team, the development will start and the
technical experts will start developing the ERP system. However, for the
development to start, suitable hardwares and softwares should be procured at
suitable prices from the vendors (Sun, Ni and Lam 2015). Hardwares are needed
in order to upgrade the existing technical setup available at the organization and
after hardware installation is completed, software development and
implementation will start. Different types of softwares like development platform,

9MANAGING INFORMATION SYSTEMS
coding, system development, system security and support softwares will be used
accordingly.
v. Integration and Testing – Integration and testing phase comes after the
development and the new system has to be integrated with the existing system i.e.
this is the phase when the new system is to be tuned and tested so that it can be
used for the organization’s purposes (Zach, Munkvold and Olsen 2014). The
integration process includes development of online business portal, online
database and an online data management system with commands to perform
operations required for the organization. After integration is complete, testing is
conducted for a number of reasons. The first reason behind testing is to detect any
fault or error that may remain within the system. During testing, these faults are
detected and addressed (Bintoro et al. 2015). The second reason for the testing is
to find whether the developed system has actually integrated with the existing
system or not. The integration process must be successful so that the organization
is able to use the developed system for their business operations and purposes.
vi. Implementation – When all the integration and testing processes are complete,
the developed system is finally ready for implementation. The created business
portal will now be connected with the actual business system of the organization
along with the implementation of other online services provided by the developed
system (Abdinnour and Saeed 2015). The business processes will now be able to
use the online database to store and manage all types of business data and
information. Furthermore, after implementation, the new ERP system will

10MANAGING INFORMATION SYSTEMS
integrate the business processes conducted by the organization and will help them
explore new business opportunities.
vii. Operations and Maintenance – Operations and maintenance are the last steps of
the SDLC and will mainly cover regular business operations as well as
maintenance of the system. According to some project managers, a project is over
when the development is complete and the developed system is running
successfully as per the requirements of the business operations. However, it is to
be noted that regular maintenance of the system is also a part of the project
(Rajnoha et al. 2014). Regular maintenance is required in order to ensure the
system is running successfully without any errors and even in case of occurrence
of any errors, suitable steps are taken to address such errors in course of
operations. After the end of the project, post-implementation review needs to be
conducted in order to identify any risks associated with the project. It must also be
ensured that the new implemented system will satisfy the requirements of the
business goals set by the organization. A support team will be recruited along
with a help desk to guide employees as well as customers to get accustomed to the
new ERP system.
2.4 Analysis of Existing Business System
In order to analyze the existing business system at Red Rooster, a SWOT analysis has
been performed as follows.
STRENGTH WEAKNESS
High Brand Value
High Popularity in Australia and New
Lack of Centralized Control

11MANAGING INFORMATION SYSTEMS
Zealand
High Profit Margin
No Business Continuity
Lack of Business Integration
OPPORTUNITY THREAT
New Business Opportunities
Chance to Explore International Market
More Revenue from New Business
Setup
High Competition in Market from
International Brands like KFC
Heavy Expenses for ERP
Implementation
Failure of Project Implementation
2.5 Project Schedule and Gantt Chart
The overall project schedule is shown in the following table.
Task Name Duration Start Finish
Development of ERP System for Red
Rooster
144 days Tue 06-02-18 Fri 24-08-18
Project Planning and Preparation 28 days Tue 06-02-18 Thu 15-03-18
Meeting between Client and Sponsor 3 days Tue 06-02-18 Thu 08-02-18
Preparation of Requirement List 2 days Fri 09-02-18 Mon 12-02-18
Development and Installation of Test
System Setup
3 days Tue 13-02-18 Thu 15-02-18
Demo Session with Client 2 days Fri 16-02-18 Mon 19-02-18

12MANAGING INFORMATION SYSTEMS
Approval of Proposed System by Red
Rooster
2 days Tue 20-02-18 Wed 21-02-18
Signing of Contract between Sponsor,
Client and Developer Organization
2 days Thu 22-02-18 Fri 23-02-18
Development of a Proper Project Plan 10 days Mon 26-02-18 Fri 09-03-18
Validation and Approval of Project Plan 4 days Mon 12-03-18 Thu 15-03-18
Project Initiation 72 days Fri 16-03-18 Mon 25-06-18
Granting of Project Funds by Sponsor 4 days Fri 16-03-18 Wed 21-03-18
Requirement Analysis for the New
System
2 days Thu 22-03-18 Fri 23-03-18
Development of a System of Blueprint 5 days Mon 26-03-18 Fri 30-03-18
Estimation of Project Schedule and Team
Division
2 days Mon 02-04-18 Tue 03-04-18
Project Execution 59 days Wed 04-04-18 Mon 25-06-18
Procurement of Hardware 2 days Wed 04-04-18 Thu 05-04-18
Procurement of Software 2 days Wed 04-04-18 Thu 05-04-18
Installation and Integration of Hardware 10 days Fri 06-04-18 Thu 19-04-18

13MANAGING INFORMATION SYSTEMS
Installation of Necessary Softwares 3 days Fri 06-04-18 Tue 10-04-18
Development of Online Business Portal 15 days Wed 11-04-18 Tue 01-05-18
Development of Online Database 15 days Wed 02-05-18 Tue 22-05-18
Implementation of ERP System 15 days Wed 23-05-18 Tue 12-06-18
System Testing 5 days Wed 13-06-18 Tue 19-06-18
Integration with Existing System 4 days Wed 20-06-18 Mon 25-06-18
Training 35 days Tue 26-06-18 Mon 13-08-18
Training of Red Rooster Employees 10 days Tue 26-06-18 Mon 09-07-18
Training for Managing ERP System 10 days Tue 10-07-18 Mon 23-07-18
Traning for Administrating the Central
Server
10 days Tue 24-07-18 Mon 06-08-18
Final Training 5 days Tue 07-08-18 Mon 13-08-18
Project Closing 9 days Tue 14-08-18 Fri 24-08-18
Review of the Project 2 days Tue 14-08-18 Wed 15-08-18
Documentation of the Project 5 days Thu 16-08-18 Wed 22-08-18
Stakeholder Sign Off 1 day Thu 23-08-18 Thu 23-08-18

14MANAGING INFORMATION SYSTEMS
Project Manager Sign Off 1 day Fri 24-08-18 Fri 24-08-18
Accordingly, the Gantt Chart of the project can be shown as follows.
ID Task
Mode
Task Name Duration Start Finish Predecessors Resource Names Cost
0 Development of ERP System
for Red Rooster
144 days Tue
06-02-18
Fri
24-08-18
$169,400.00
1 Project Planning and
Preparation
28 days Tue
06-02-18
Thu
15-03-18
$41,200.00
2 Meeting between Client
and Sponsor
3 days Tue
06-02-18
Thu
08-02-18
Project
Manager
$4,800.00
3 Preparation of
Requirement List
2 days Fri 09-02-18 Mon
12-02-18
2 Project
Manager,Technical
Analyst
$4,800.00
4 Development and
Installation of Test System
Setup
3 days Tue
13-02-18
Thu
15-02-18
3 Technical
Officer,Technical
Analyst
$6,000.00
5 Demo Session with Client 2 days Fri 16-02-18 Mon
19-02-18
4 Technical
Officer
$2,400.00
6 Approval of Proposed
System by Red Rooster
2 days Tue
20-02-18
Wed
21-02-18
5 Project
Manager
$3,200.00
7 Signing of Contract
between Sponsor, Client
and Developer
Organization
2 days Thu
22-02-18
Fri 23-02-18 6 Supervisor,Project
Manager
$5,600.00
8 Development of a Proper
Project Plan
10 days Mon
26-02-18
Fri 09-03-18 7 Technical
Analyst
$8,000.00
9 Validation and Approval of
Project Plan
4 days Mon
12-03-18
Thu
15-03-18
8 Project
Manager
$6,400.00
10 Project Initiation 72 days Fri 16-03-18 Mon 25-06-18 $87,600.00
11 Granting of Project Funds
by Sponsor
4 days Fri 16-03-18 Wed
21-03-18
9 Supervisor $4,800.00
12 Requirement Analysis for
the New System
2 days Thu
22-03-18
Fri 23-03-18 11 Business and
Marketing
Manager
$2,400.00
13 Development of a System
of Blueprint
5 days Mon
26-03-18
Fri 30-03-18 12 Business and
Marketing
Manager
$6,000.00
14 Estimation of Project
Schedule and Team
Division
2 days Mon
02-04-18
Tue
03-04-18
13 Technical
Analyst
$1,600.00
15 Project Execution 59 days Wed
04-04-18
Mon
25-06-18
$72,800.00
16 Procurement of
Hardware
2 days Wed
04-04-18
Thu
05-04-18
14 Technical
Officer
$2,400.00
17 Procurement of
Software
2 days Wed
04-04-18
Thu
05-04-18
14 Technical
Officer
$2,400.00
18 Installation and
Integration of Hardware
10 days Fri 06-04-18 Thu
19-04-18
16 Systems
Integrator
$10,000.00
19 Installation of Necessary
Softwares
3 days Fri 06-04-18 Tue
10-04-18
17 Systems
Integrator
$3,000.00
20 Development of Online
Business Portal
15 days Wed
11-04-18
Tue
01-05-18
17,19 Systems
Integrator
$15,000.00
21 Development of Online
Database
15 days Wed
02-05-18
Tue
22-05-18
20 Data
Management
Officer
$12,000.00
22 Implementation of ERP
System
15 days Wed
23-05-18
Tue
12-06-18
21 Developer $12,000.00
23 System Testing 5 days Wed
13-06-18
Tue
19-06-18
22 Developer $4,000.00
24 Integration with Existing
System
4 days Wed
20-06-18
Mon
25-06-18
23 Developer,Systems
Integrator,Technical
Officer
$12,000.00
25 Training 35 days Tue
26-06-18
Mon
13-08-18
$21,000.00
26 Training of Red Rooster
Employees
10 days Tue
26-06-18
Mon
09-07-18
24 System Trainer $6,000.00
27 Training for Managing ERP
System
10 days Tue
10-07-18
Mon
23-07-18
26 System Trainer $6,000.00
28 Traning for Administrating
the Central Server
10 days Tue
24-07-18
Mon
06-08-18
27 System Trainer $6,000.00
29 Final Training 5 days Tue
07-08-18
Mon
13-08-18
28 System Trainer $3,000.00
30 Project Closing 9 days Tue
14-08-18
Fri 24-08-18 $19,600.00
31 Review of the Project 2 days Tue
14-08-18
Wed
15-08-18
29 Technical
Officer
$2,400.00
32 Documentation of the
Project
5 days Thu
16-08-18
Wed
22-08-18
31 Project
Manager
$8,000.00
33 Stakeholder Sign Off 1 day Thu 23-08-18Thu 23-08-1832 Supervisor,Business and Marketing Manager,Data Management Offi cer,Developer,Systems Integrator,Technical Offi cer,Technical A$7,600.00
34 Project Manager Sign Off 1 day Fri 24-08-18 Fri 24-08-18 33 Project
Manager
$1,600.00
Project Manager
Project Manager,Technical Analyst
Technical Officer,Technical Analyst
Technical Officer
Project Manager
Supervisor,Project Manager
Technical Analyst
Project Manager
Supervisor
Business and Marketing Manager
Business and Marketing Manager
Technical Analyst
Technical Officer
Technical Officer
Systems Integrator
Systems Integrator
Systems Integrator
Data Management Officer
Developer
Developer
Developer,Systems Integrator,Technical Officer
System Trainer
System Trainer
System Trainer
System Trainer
Technical Officer
Project Manager
Supervisor,Business and Marketing Manager,D
Project Manager
S M T W T F S S M T
29 J an '18 19 Mar '18 07 May '18 25 J un '18 13 Aug '18

15MANAGING INFORMATION SYSTEMS
Figure 1: Gantt Chart of the Project
(Source: Created by Author)
2.6 Proposed Budget and Expenses
For the determination of estimated expenses in the project, first the stakeholders are
identified and their shares of budget are calculated as follows.
Resource Name Type Max. Units Std. Rate Ovt. Rate
Project Manager Work 100% $200.00/hr $0.00/hr
Business and Marketing
Manager
Work 100% $150.00/hr $0.00/hr
Technical Analyst Work 100% $100.00/hr $0.00/hr
System Trainer Work 100% $75.00/hr $0.00/hr
Systems Integrator Work 100% $125.00/hr $0.00/hr
Developer Work 100% $100.00/hr $0.00/hr
Technical Officer Work 100% $150.00/hr $0.00/hr
Data Management Officer Work 100% $100.00/hr $0.00/hr
Supervisor Work 100% $150.00/hr $0.00/hr

16MANAGING INFORMATION SYSTEMS
The proposed budget based on the expenses to be done by the stakeholders in each of the
project activities is shown in the following table.
Task Name Resource Names Cost
Development of ERP
System for Red Rooster
$169,400.00
Project Planning and
Preparation
$41,200.00
Meeting between Client
and Sponsor
Project Manager $4,800.00
Preparation of
Requirement List
Project Manager,Technical Analyst $4,800.00
Development and
Installation of Test System
Setup
Technical Officer,Technical Analyst $6,000.00
Demo Session with Client Technical Officer $2,400.00
Approval of Proposed
System by Red Rooster
Project Manager $3,200.00
Signing of Contract
between Sponsor, Client and
Supervisor, Project Manager $5,600.00

17MANAGING INFORMATION SYSTEMS
Developer Organization
Development of a Proper
Project Plan
Technical Analyst $8,000.00
Validation and Approval
of Project Plan
Project Manager $6,400.00
Project Initiation $87,600.00
Granting of Project Funds
by Sponsor
Supervisor $4,800.00
Requirement Analysis for
the New System
Business and Marketing Manager $2,400.00
Development of a System
of Blueprint
Business and Marketing Manager $6,000.00
Estimation of Project
Schedule and Team Division
Technical Analyst $1,600.00
Project Execution $72,800.00
Procurement of
Hardware
Technical Officer $2,400.00

18MANAGING INFORMATION SYSTEMS
Procurement of
Software
Technical Officer $2,400.00
Installation and
Integration of Hardware
Systems Integrator $10,000.00
Installation of
Necessary Softwares
Systems Integrator $3,000.00
Development of Online
Business Portal
Systems Integrator $15,000.00
Development of Online
Database
Data Management Officer $12,000.00
Implementation of ERP
System
Developer $12,000.00
System Testing Developer $4,000.00
Integration with
Existing System
Developer, Systems Integrator, Technical
Officer
$12,000.00
Training $21,000.00
Training of Red Rooster
Employees
System Trainer $6,000.00
Training for Managing System Trainer $6,000.00

19MANAGING INFORMATION SYSTEMS
ERP System
Traning for
Administrating the Central
Server
System Trainer $6,000.00
Final Training System Trainer $3,000.00
Project Closing $19,600.00
Review of the Project Technical Officer $2,400.00
Documentation of the
Project
Project Manager $8,000.00
Stakeholder Sign Off
Supervisor, Business and Marketing
Manager, Data Management Officer,
Developer, Systems Integrator, Technical
Officer, Technical Analyst, System Trainer
$7,600.00
Project Manager Sign Off Project Manager $1,600.00
Hence, on an overall estimation, the proposed budget for the project is $200,000.
2.7 Stakeholder Analysis
In any project, there are a large number of stakeholders involved as they play the most
important roles in the project. Among the various stakeholders, the project duties are divided so
that they can manage each of the activities successfully. Accordingly in this project, there will be

20MANAGING INFORMATION SYSTEMS
a number of stakeholders involved with their own duties and responsibilities. The stakeholders to
be involved in this project are listed as follows.
Stakeholder Duty in the Project
Project Manager To manage, supervise, monitor and control the
entire project and avoid scope creep and other
issues
Business and Marketing Manager To manage financial and marketing aspects of the
project, to convince the sponsor to invest in the
project
Technical Analyst To analyze technical requirements of the project
and guide the developer accordingly
System Trainer To train the company employees to manage the
new ERP system
Systems Integrator To integrate the developed ERP system with the
existing business information system
Developer To develop and implement the proposed ERP
system in Red Rooster
Technical Officer To manage and procure technical requirements
Data Management Officer To manage the developed database and migrate the
business data to the database
Supervisor To supervise and report the progress of the project

21MANAGING INFORMATION SYSTEMS
2.9 Risk Identification and Management Plan
As per the analysis, there are some risks associated with the project. In the following
table, some possible risks are explained and a suitable management plan is provided.
Risk Risk Description Management Plan
Budget and Schedule Risk There may be a significant
shortfall in budget or schedule
due to inaccurate estimation
There should be a contingency
budget procured from the
sponsor, it must be ensured that
the scheduling is done accurately
in order to avoid unnecessary
issues
Scope Creep Scope creep occurs due to lack of
definition of the specific scope
The project manager should
ensure the scope is well defined
and further, he should monitor
and control the project to avoid
scope creep
System Security During or post development of
the ERP, the system may be
attacked by malwares, hackers,
malicious files and others
During development, suitable
security must be applied
including antivirus softwares,
encryptions, honeypot nodes and
others.
2.10 Change Management Plan
Change management is an essential requirement for this project as the organization will
experience a massive change in the existing business system with the implementation of the ERP

22MANAGING INFORMATION SYSTEMS
system. From a distributed supply chain, the organization will turn into a supply chain business
with centralized control (Pramod, Bharathi and Raman 2014). Hence, during the project, the
project manager will have to carry the responsibility of change management and make suitable
changes during the project progress. For this purpose, he needs to monitor the project on a
regular basis and add inputs that will facilitate changes in an advantageous manner for the
organization.
3.0 Conclusion
From the project plan, it is evident that with sufficient funds and time, if the project is
completed successfully, it will bring a lot of advantages for the company. The new ERP system
will address all the issues highlighted in the current information system used by the company.
Furthermore, with the help of integrated ERP system, the company can venture into new regions
and gain access to their regional as well as international markets. These ventures will help the
company to grow rapidly and gain international status that will massively boost their annual
revenues and profit.

23MANAGING INFORMATION SYSTEMS
References
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24MANAGING INFORMATION SYSTEMS
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