Enterprise System Risks: Analysis and Mitigation Strategies Report

This report discusses the risks associated with Enterprise Resource Planning (ERP) systems and proposes mitigation strategies to ensure successful implementation and operation. It highlights common failures, such as poor ERP selection, inadequate project scheduling, insufficient training, and improper budget allocation. Steps to avert these failures include proper ERP selection, meticulous project scheduling, comprehensive training modules, and accurate budget planning. The report also addresses enterprise system implementation failures caused by lack of executive involvement, unrealistic expectations, and sacrificing cost and speed. Effective management of these failures involves risk monitoring, learning from past mistakes, and developing a robust risk analysis plan. The conclusion emphasizes the importance of ERP systems in supporting organizations and the need for proactive risk management to meet project delivery expectations. Desklib provides access to this and many other solved assignments.

Running head: ENTERPRISE SYSTEM RISKS AND MITIGATION
Enterprise System Risks and their Mitigation
Name of the Student
Name of the University
Author’s note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 Failures of Enterprise Systems..............................................................................................2
2.2 Steps for Averting the Failures of the Enterprises Systems..................................................3
2.3 Enterprise System Implementation Failures..........................................................................4
2.4 Management of the Failures of the Enterprise System Implementation................................5
3. Conclusion...................................................................................................................................6
4. Recommendation.........................................................................................................................6
5. References....................................................................................................................................8

2ENTERPRISE SYSTEM RISKS AND MITIGATION
1. Introduction
The use of different kinds of different kinds of high form of sophisticated based
enterprise systems would be helpful for developing changes within the underlying processes of
the business systems. This would lead to high form of improvement s within the efficiency of
reengineering. Some of the recent ERP systems help in the identification of several kinds of
errors that occur during the implementation phases of the project (Colombo et al. 2014). The
report helps in the proposing of impacts within the existing systems and thus would discuss the
impact of the risk that are threatening for the systems and thus would help in mitigating of those
kinds of risks (May, Dhillon and Caldeira 2013). The report helps in discussing about the various
kinds of risks that are faced by the ERP systems. These kinds of failures would be highly
detrimental for the success of the ERP systems and would pose major forms of threats within the
system. Hence a proper mitigation plan would be highly needed for securing the highly efficient
systems. These would thus result for the benefit of the systems and thus would help in benefiting
the organisation.
2. Discussion
The proper form of implementation of ERP systems within an organization requires high
form of expertise and huge forms of investments within the development activities of the project.
2.1 Failures of Enterprise Systems
According to the conducted literature reviews by May, Dhillon and Caldeira (2013) there
are some of the main reasons that have led to the failure of the ERP systems are:
1. Poor ERP Selection – A lot of factors are put under major focus during the
implementation of an ERP system such as the speed and costs incurred during the selection of

3ENTERPRISE SYSTEM RISKS AND MITIGATION
the system. The ERP systems help in proper form of review of the internal processes of the
system. Hence the implementation of a proper form of ERP systems would be helpful for
managing the various kinds of risks within the systems (May, Dhillon and Caldeira 2013). Poor
implementation of ERP systems could lead to unsuccessful delivery of results. Selection of an
improper ERP system could lead to dangerous forms of impacts for the organisation who have
been major uses of the low quality ERP systems.
2. Poor Project Scheduling – The schedules of the project are a much important criteria
based on the development of the project. Some of the companies tend to back-schedule the ERP
project. Hence, this results to insufficient form of attention to the project details leading to
uncompleted tasks (Kerzner and Kerzner 2017).
3. Training – The users should have a proper form of knowledge based on the using of
the new kinds of software. Lack of proper form of knowledge would lead to dangerous impacts
for the organisation and the impacts on the software (Mousavi et al. 2013).
4. Implementation Budget – There are some companies who fail to prepare a chart
based on the design of the budget to be estimated for the implementation of the ERP systems
within the organization. Hence there might be some cases where the budget of implementation of
the ERP systems would be much more than the expected budget that have been meant previously
(Othman and Ahmed 2013).
2.2 Steps for Averting the Failures of the Enterprises Systems
Based on the conduction of review by Kuratko, Covin and Hornsby (2014) There are
different kinds of steps that could be taken in order to prevent the failure of the ERP systems
within the development of the project are:

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1. Proper ERP Selection – The proper form of ERP selection would be very much
useful for maintaining the systems and thus implement better form of practices within the
business systems (Stanciu and Tinca 2013).
2. Proper Project Scheduling – There should be a proper form of scheduling of projects.
The projects should be properly scheduled in such an order that they would be able to meet the
expectation of the customers (Alias et al. 2014). The different changes based on scheduling of
tasks within the project help in making of changes within the environment of business and
improving the sector of the business by helping in the gaining of profits. The increasing form of
changes within the global form of business requirements would form a major form of challenge
for the managing of the enterprise systems.
3. Proper Training Modules – There should be proper form of training modules that
would be able to define the better form of measures for the betterment of the systems. There
should be a proper form of monitoring and tracking of the risks within the enterprise systems
would be helpful for mitigating the various kinds of challenges within the system. These risks
should be managed with the proper form of reviews based on the practices of management
(Kuratko, Covin and Hornsby 2014).
4. Scheduling of Exact Budget – The selection of the budget of the project should be
properly determined based on maintaining the scheduling of the budgets required for the project
(Allen et al. 2014).
2.3 Enterprise System Implementation Failures
The failures of the implementation of the enterprise systems could be made to be possible
based on certain reasons are:

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1. Lack of Involvement of Executives – The management team would be highly
involved with each of the steps of implementation. This would help them to be in touch with the
various kinds of updates, technical based aspects and scope of work. The management would be
the primary form of key for getting the employees for performing the actions and decide upon
purchasing the ERP software in the primary place (Kaur and Sengupta 2013).
2. Unrealistic Expectations – The ERP vendors should be able to quickly implement the
ERP solutions at a lower cost. Any form of unrealistic expectations from the clients should be
properly met otherwise it would be lead to the failure of ERP systems.
3. Sacrificing the Results of Cost and Speed of Implementation – There is a lot of
focus based on the speed and the variations of cost within the ERP systems. These two of the
major factors are very much important for improving the functionality of the systems within the
company.
2.4 Management of the Failures of the Enterprise System Implementation
The management of various forms of enterprise based risks should be highly looked
within the selection of enterprise based projects. The various kinds of changes within the IT
based projects help in making of changes within the environment of business. The increasing
form of changes within the global form of business requirements would form a major form of
challenge for the managing of the enterprise systems. The success of the enterprise system would
largely depend on the proper form of managing of the various processes (Chang 2016). Poor
form of managing of the systems would lead to tremendous forms of impact within the systems,
which would lead to failure of the enterprise systems. Poor form of management of risk,
inadequate form of scope, improper allocation of human based resources and management of a

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proper vendor who would help in implementation of the enterprise systems would pose some
form of problems within the implementation of the enterprise systems.
Many of the factors based on critical management of projects should be able to contribute
for protecting the system from failure and success based on the ERP systems if the company.
2.5 Application of the Perspective of a Project Manager
Applying the perspective of a project manager, it could be recommended that there
should be a proper form of monitoring of risk based on the scenarios of the organization.
Monitoring the risks would be helpful for mitigating the various kinds of challenges during the
phases of implementation of the ERP systems. Monitoring of the risks within the enterprise
systems would be helpful for mitigating the various kinds of challenges within the system. These
risks should be managed with the proper form of reviews based on the practices of management.
Based on the lessons learned from the previous mistakes during the implementation phases, it
could be suggested that a proper form of review based on the management of risk should be
assessed and thus be removed from the system. Risk analysis plan should be made as per the
requirements of the project (Hoch and Dulebohn 2013). There should be proper kind of actions,
which should be successfully completed. The designing of a risk analysis plan would be helpful
for suggesting the employees of the organisation to develop the various forms of strategies and
thus they would review the entire project for the detection of any kind of problems within the
system.
3. Conclusion
Based on the conclusion drawn from the above report, it could be concluded that the use
of ERP systems help in supporting the organizations and the enterprise systems. The report helps

7ENTERPRISE SYSTEM RISKS AND MITIGATION
in focusing of different kinds of risks and also discusses about the various kinds of mitigation
systems that should be majorly adopted by the systems. The report focuses on the various kinds
of failures that occur within the systems of the enterprise. The report helps in discussing about te
various kinds of procedures based on the aversion of the systems. There are major forms of
reasons based on the failure of the implementation of the enterprise within the various
organizations. These ERP systems help in proper form of review of the internal processes of the
system. Hence the implementation of a proper form of ERP systems would be helpful for
managing the various kinds of risks within the systems and thus would help in meeting the
expectation of delivery of the projects.

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5. References
Alias, Z., Zawawi, E.M.A., Yusof, K. and Aris, N.M., 2014. Determining critical success factors
of project management practice: A conceptual framework. Procedia-Social and Behavioral
Sciences, 153, pp.61-69.
Allen, M., Alleyne, D., Farmer, C., McRae, A. and Turner, C., 2014. A framework for project
success. Journal of Information Technology and Economic Development, 5(2), p.1.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Colombo, A.W., Bangemann, T., Karnouskos, S., Delsing, J., Stluka, P., Harrison, R., Jammes,
F. and Lastra, J.L., 2014. Industrial cloud-based cyber-physical systems. The IMC-AESOP
Approach.
Hoch, J.E. and Dulebohn, J.H., 2013. Shared leadership in enterprise resource planning and
human resource management system implementation. Human Resource Management
Review, 23(1), pp.114-125.
Kaur, R. and Sengupta, J., 2013. Software process models and analysis on failure of software
development projects. arXiv preprint arXiv:1306.1068.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kuratko, D.F., Covin, J.G. and Hornsby, J.S., 2014. Why implementing corporate innovation is
so difficult. Business Horizons, 57(5), pp.647-655.

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May, J., Dhillon, G. and Caldeira, M., 2013. Defining value-based objectives for ERP systems
planning. Decision Support Systems, 55(1), pp.98-109.
Mousavi, S.M., Tavakkoli-Moghaddam, R., Vahdani, B., Hashemi, H. and Sanjari, M.J., 2013. A
new support vector model-based imperialist competitive algorithm for time estimation in new
product development projects. Robotics and Computer-Integrated Manufacturing, 29(1), pp.157-
168.
Othman, E. and Ahmed, A., 2013. Challenges of mega construction projects in developing
countries. Organization, technology & management in construction: an international
journal, 5(1), pp.730-746.
Stanciu, V. and Tinca, A., 2013. ERP solutions between success and failure. Accounting and
Management Information Systems, 12(4), pp.626-649.