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Risk factors in enterprise-wide/ERP projects
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Journal of Information Technology (2000) 15, 317–327
TLE D
U
& Fr ci s G
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M ARY SUM NER
School of Business, Southern Illinois University, Campus Box 1106, Edwardsville, IL 62026, USA
The purpose of this study was to identify the risk factors in implementing traditional management information systems projects, describe the risk factors associated with enterprise-wide/ERP (enterprise resource
planning) projects and identify the risk factors in ERP projects which are unique to these projects. Some
of the unique challenges in managing enterprise-wide projects which were highlighted through the ndings
included the challenge of re-engineering business processes to ‘ t’ the process which the ERP software
supports, investment in recruiting and reskilling technology professionals, the challenge of using external
consultants and integrating their application-speci c knowledge and technical expertise with existing teams,
the risk of technological bottlenecks through client-server implementation and the challenge of recruiting
and retaining business analysts who combine technology and business skills.
Introduction
In the past few years many organizations have initiated enterprise-wide/ERP (enterprise resource planning) projects using such packages as SAP, Peoplesoft
and Oracle. These projects often represent the single
largest investment in an information systems (IS)
project in the histories of these companies and, in many
cases, the largest single investment in any corporatewide project.
These enterprise-wide/ERP projects bring about
a host of new questions because they represent a
new type of management challenge. The management
approaches for these projects may be altogether different from the managerial approaches for traditional
management information systems (MIS) projects.
Some of these questions and issues are as follows.
(1) What are...