Risk Mitigation Measures by Milk Bar

Running Head: RISK MITIGATION MEASURES BY MILK BAR
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Risk Mitigation Measures by Milk Bar
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RISK MITIGATION MEASURES BY MILK BAR 2
a) Cost of Implementing.
Milk Bar needs to create a budget before the work begins. It needs to consider; price of the
software, hardware or software requirements it will use, consultants required, the hours of
manpower it will need, temporary workers needed to help with the work its own staff will be
doing while implementing and the time these costs will be realized. While planning, the team
involved with the project should budget for the maintenance costs it will incur annually at the
time of formulation the Total Cost of Ownership (TCO) (Bradford, 2015). If Milk Bar is short
on its budget, it is needful that it cuts on some costs to get that extra money, constantly
measuring its actual costs and compare them to its budget.
a) Impact on the Organization.
Milk bar needs to be sure of what it requires, the gap is in its daily operations, the functions
that the system will perform and its role space in the organization. This will guide Milk Bar to
formulate specific user specifications and present them to the team developing the ERP to ensure
it serves its rightful purpose in the organization. Milk bar should make sure it gets exactly what it
needs. If it requires General Ledger but does not need Accounts Receivable, it should only take
General Ledger. Putting to use ERP and benchmarking produces better efficiency and business
outcomes (Tadeusz Dudycz, 2015).
b) Project Team Knowledge and Skills.
The team members involved in the ERP development need to have the right qualifications
and skills in their roles. They also need to be in full knowledge of why they are developing the
ERP, its key functions in the organization and its importance to Milk Bar. This ensures that the
team has the right idea in mind of the end result of development and to ensure efficiency and