This week we continued with Implementation. It is important to measure the success of an ERP implementation because different companies measure their ERP implementation success in different ways. It is important to know their measurement system. Some do not even bother to ask questions about the success.
There are some warning signs that can tell a company is their ERP implementation might face failure. For e.g. Negative attitudes, Long process time, problems with data integration, Technical issues, etc.
After the implementation, comes the Stabilization period (Phase-6). Generally every ERP system takes about 3-9 months to work without bugs/crashes. They are treated for consistency, documentation, hardware and software upgrade, etc. This requires the company to have the cost allocated for these activities.
Risk occurs at every phase of ERP life cycle. Major portion of it comes into play in the Implementation. There have been a lot of ERP implementation failures, the credit for which goes to, not accounting for risk during implementation.
There are three basic types of risks:
Technical Risk: Risk of performance due poor Information Technology.
Business Risk: Risk from the newly adopted process.
Organizational Risk: Risk from the environment in which the system is placed.
A survey shows that companies rate Organizational risk as the biggest risk, followed by Business risk, and Technical Risk.
Thursday, November 09, 2006
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