INFOSYS 321 Semester 1: Risk Mitigation Measures for Milk Bar Project

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Added on  2023/01/11

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This report provides a comprehensive analysis of risk mitigation measures for Milk Bar, a case study likely related to an ERP implementation project. It addresses critical aspects such as cost considerations, including budgeting for software, hardware, consultants, and manpower, as well as ongoing maintenance. The report emphasizes the importance of understanding organizational requirements, defining specific user specifications, and ensuring the project team possesses the necessary qualifications and skills. It highlights the significance of proper user training to facilitate ERP adoption and successful data transfer, including data migration strategies and software. The report also references relevant academic sources to support its findings and recommendations, making it a valuable resource for students and professionals alike.
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Running Head: RISK MITIGATION MEASURES BY MILK BAR 1
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
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RISK MITIGATION MEASURES BY MILK BAR 3
coordination in the tasks performed by the different department roles. This will also greatly
speed-up implementation and also ensure the production of a perfect system since everybody in
the team knows what they are supposed to do and is affluent with his/her skills.
c) Lack of Proper Training.
It is very needful, even after Milk Bar has acquired the ERP that is totally convenient for it
that the users also share in the mutual feeling of the management towards the ERP. The user
attitude is very important since it determines how receptive to the new concept they are and view
it better than the former. Milk Bar should have proper trainers that are conversant with the
system and completely understand its functions in order to effectively train the users and most
appropriately bring them onboard. The factor of the end-users has been identified to be highly
crucial to the success of an ERP (Albadri, 2012).
d) Data Transfer.
This is the transfer of data from storage system types, computer systems or formats (Bertrand
Dufrasne, 2017). It is an important consideration in system implementation, consolidation or
upgrades. Validating of the data migrated to ensure completeness and decommissioning of the
storage of the legacy data should be considered as key actions of the whole process, made
possible by the use of the best data migration software in the market. Data migration should be
done in the most automated way possible, saving the personnel from the most difficult tasks.
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References
Albadri, F. (2012). Cases on Enterprise Information Systems and Implementation Stages:
Learning from the Gulf Region: Learning from the Gulf Region. IGI Global.
Bertrand Dufrasne, A. W. (2017). DS8870 Data Migration Techniques. IBM Redbooks.
Bradford, M. (2015). Modern ERP: Select, Implement, and Use Today's Advanced Business
Systems.
Tadeusz Dudycz, G. O.-P. (2015). The Essence and Measurement of Organizational Efficiency.
Springer.
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