Assessing Elements of Risk in Implementing an ERPFF System

8/4/2019 Assessing Elements of Risk in Implementing an ERPFF System

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Name ID

Tefo Kebitseng 9901855

Bame Rachai 200908020

Apelo Letsomo 200205356Gookeditswe Mogapi 200100595


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Enterprise Resource Planning (ERP) is anintegrated computer-based system used to manageinternal and external resources, including tangibleassets, financial resources, materials, and humanresources. Its purpose is to facilitate the flow ofinformation between all business functions inside theboundaries of the organization and manage theconnections to outside stakeholders.


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Assessing Elements of Risks in Implementing an ERP

System

A UB Case Study

Objectives of the Study

To explore the possible risks inherent in the

implementation of the ERP system in the University ofBotswana.

To find out the impact of the risks in the projectfunctions of the ERP system.

To assess the magnitude of the risk. To find out the user friendly standard framework that

can serve as a guideline in combating the risksassociated with the implementation of the system.


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Final Product

Risk Management Framework


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Scope of Project

This project shall be aimed at developing a framework thatwill guide UB in managing the risks that are inherent inimplementing an ERP system. The framework shalldocument possible risk areas to take note of during theproject planning & implementation. Although not covered

in depth, the framework shall attempt to spell out howthese risks may be managed or controlled.

The assumption made is that the risks that will beidentified are not exhaustive.


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As such the following will not form part of the scope for theframework development:

The framework will not cover the whole process of an ERPproject implementation i.e. the framework is not a guide on howto implement an ERP system in its entirety

Furnish the customer with a plan to aid in decision making in asfar as which risks the customer should handle is concerned, and

which ones to monitor only. This all depends on the size of therisks and size of impact should the risk not be handled properly.

The technical build-up of software application will not be part ofthe assessment, although light reference may be made in thispaper


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Methodology study population,

data collection methods,

sampling techniques and procedures, data analysis,

ethical consideration


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Focused group interview

Questionnaires


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Literature Review Top Management Support

Excellent Project Management

Education and training Communication


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The total number of our possible participants in oursurvey is about 2200 consisting of 880 Academic staffmembers and 1300 Support staff members. Out of thetotal number only 1500 use information systems tocapture data that aids in decision making. Thetargeted number that could be possible reached wasset to 10% of the potential participants which is 10% of1500 giving us 150 participants. One third of 150participants yielding 50 concluded the number ofquestionnaire to be sent out.


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Data analysis This section gives results of questionnaire that was

collected from 24 respondents who were selected fromthe following departments; Information andTechnology ,Human Resource Management,Administration) department using ERP modules inthe University of Botswana.

The following is the figure 1, showing the sample frameresults.


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Identified Problem Areas


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RISKS IDENTIFIED Poor system configuration resulting in system

sluggishness; lack of seamless f low; non-existence oftrouble shooting messages etc

System not configured to best-fit specified userrequirements

Rejection by stakeholders- notably lack of top

management support Lack of integration of various functionalities of the

university

Inadequate system user training.


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Risk FrameworkStep1-Risk Analysis Identifies potential areas and quantifies the risks to the project. Activities at this stage: Identify & categorize the risks to the project Estimate the chance of a potential loss and the consequences of the potential Evaluate the overall consequences of the risk on the project. - Risk analysis

Step 2-Risk Management Responds to the risks. Activities at this stage: Plan methods to control risks and contingencies to respond to risks that occur.

Step 3 - Risk Management (On-going Activities) Implement methods to control risks through reduction or protection. Activities at this stage: Monitor the risks and the execution of contingency plans, then refine the plans as required.


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Risk Frameworkconcl.Risk 1: Poor system configurationStep1-Risk Analysis This is an Operational Risk The probability of the risk occurring is Moderate. Consequences may include system

sluggishness; lack of seamless f low; non-existence of trouble shooting messages etc

The overall impact of the risk on the project, should it occur is High.

Step 2-Risk Management Ensure that at the project planning stage, there is a best-fit between Functional

requirements and System Requirements, ultimately configuration.

Step 3 - Risk Management (On-going Activities) Continuous monitoring of the best-fist matrix between the functional requirements and

system configuration. Adjustments may be made to either of the two for a near 100% fit,although it appears this is rare in Information technology projects.

NB: The risk of the system not configured to best-fit specified user requirements hasnot been dealt with separately as the risk management process is the same as the one forthe risk identified above.


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Risk Frameworkconclusion.Risk 2: Rejection by stakeholdersStep1-Risk Analysis This is a Strategic risk to the project The probability of the risk occurring is Low If this risk were to occur, this would actually signal the Death of the

project. Risk analysis

Step 2-Risk Management The Project Team has to keep the UB top management informed about

the project especially highlighting the milestone achievements of theproject.

Step 3 - Risk Management (On-going Activities) Continually monitor top management position and act accordingly to

keep them satisfied with project progress.


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Risk Frameworkconcl.Risk 3: Lack of integration of various functionalities of the universityStep1-Risk Analysis The is an Operational The probability of this risk occurring is Low

If this risk were to occur, this would signal a False Start and bring aboutconfusion into UB.

Step 2-Risk Management The best way to manage this risk is by involving all the stakeholders in the early

stages of the project, preferably at the planning stage. This will ensure that thesystem configuration takes into account the mapping of the desired business

processes of the various departments at the university. This generally is riskavoidance.

Step 3 - Risk Management (On-going Activities) Develop and continually monitor the Business Benefits Plan for the project.


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Risk Frameworkconcl.Risk 4: Inadequate system user trainingStep1-Risk Analysis This is an Operational risk The probability of this risk occurring is Low However, if this risk were to occur, there would be a lot of anxiety and frustration on the

part of the users, and the impact will be High.

Step 2-Risk Management Ensure that there is Super User training plan developed as well as training of all the

would-be users of the system. The Super Users are trained in order to retain expert

knowledge of the systems operations within UB. This is yet another risk avoidancestrategy.

Step 3 - Risk Management (On-going Activities) Continually monitor the progress on the training plan as it unfolds and make any

necessary amendments along the way.


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APPLAUSE!

Documents

Assessing Elements of Risk in Implementing an ERPFF System