MANAGING RISK ON ERP PROJECTS

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MANAGING RISK ON ERP PROJECTS
Presented by Apagen Solutions Pvt. Ltd.
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In the pursuit of seamless ERP migration, the
intricacies involved pose a formidable
challenge, with each endeavor carrying a
distinctive blend of business and technical
peril. A multitude of variables influence the
level of jeopardy inherent in an implementation,
encompassing factors such as the extent of
deployment across sites, the scope of legacy
system replacement, and the magnitude of user
impact.
The effective management of risk in an ERP
project stands as a linchpin for its triumph.
What precisely constitutes a risk? Succinctly
put, it denotes a prospective juncture of
failure. Within the realm of ERP projects,
myriad potential pitfalls loom large, spanning
uncharted technological terrain, untested
personnel, and political quagmires. Hence, the
question arises
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While a plethora of risk management literature
and methodologies proffer nuanced perspectives,
a quintet of overarching steps typically guides
risk management endeavors
How does one avert such failures?
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Identifying potential failure points or risks.
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Analyzing said points to gauge their potential
ramifications.
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Evaluating the likelihood of these failures
materializing.
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Prioritizing risks based on the foregoing
factors.
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Employing requisite measures to mitigate
identified risks.
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Project stakeholders must draw upon their
experiential reservoirs and seek counsel from
peers to unearth potential failure points or
risks. Scrutiny of the entire project blueprint
unveils avenues for enhancement. Soliciting
insights from organizations that have traversed
analogous trajectories often proves a fruitful
endeavor. Forecasts pertaining to cost outlays
frequently rank among the most prevalent
potential pitfalls. Other risk triggers encompass
the absence of executive sponsorship, subpar
project oversight, and nebulous project
objectives. Subsequently, the severity of
potential failures vis-à-vis budgetary
constraints, project timelines, or user
requisites warrants scrutiny. Assessing the
probable impact and likelihood of failure assumes
the guise of an art form, intertwining deep
dives into ERP infrastructure and business
dynamics. Assembling a risk management cadre
comprising individuals endowed with experiential
insights equips the endeavor with prescience.
This collective must boast prior engagements with
the deployment of analogous ERP solutions within
comparably sized entities operating within
cognate industries.
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Drawing from the antecedent deliberations, risks
are then accorded prioritization. Deliberations
dictate the eradication of risks deemed
egregiously injurious to critical business
processes. A vigilance regimen is instituted for
risks meriting recurrent managerial attention.
Stakeholders are apprised of risks deemed
sufficiently minor to eschew granular oversight,
yet necessitating vigilant monitoring for
nascent complications.
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A panoply of variables exerts influence over an
implementation's inherent risk, spanning the
breadth of deployment sites, legacy system
replacements, and the sphere of user impact.
Noteworthy among factors mitigating business
risk during migration are
Get management support
Adoption of a phased as opposed to a 'big bang'
migration approach
Change management
Provision of comprehensive training
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Provision of comprehensive training
Leveraging expertise
Legacy system strategizing
Organizational reengineering
Rigorous testing
Provision of robust IT support
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Summary
In essence, ERP risk mitigation mandates holistic
scrutiny, with the aforementioned tenets serving
as bulwarks against undue exposure. Prudent
project planning, budgetary allocations, and
staffing imperatives must encompass these
facets. Risk abatement pivots on diminishing
either the likelihood or the severity of
potential pitfalls. Preemptive measures to
curtail specific risks constitute integral
components of the project risk management
blueprint. Stakeholders must be cognizant of the
designated custodians tasked with rectifying
specific risk manifestations and the prescribed
redressal modalities. Vigilance against
incipient failures mandates proactive
intervention, epitomized by preemptive trials of
operating systems or hardware components
preceding system-wide deployment. Pilot
implementations and prototyping of initial ERP
interfaces exemplify proactive risk mitigation
strategies.
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Apagen Solutions 91-9971-800-665 gaurav.kumar_at_apa
gen.com www.apagen.com H 160, Sector 63, Noida,
India