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Akanksha Gautam Rai
(09609151)
Ankit Garg
(06502921)
Sakshi Malhotra
(09609105)
 Ô



þ Ôn the past several years many organizations have initiated

information management systems projects, using packages as
SAP, Peoplesoft, and Oracle.
þ Projects often represent the single largest investment of any
corporate-wide project.
þ A ͚pilot͛ study was conducted to describe the experiences of
seven companies and understand the major risk factors
involved in implementing enterprise-wide information
systems.

Risk Factors in Enterprise Wide Ônformation

05-08-2010 2
Management Systems Projects
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Ô 

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‰ÔÔ ‰Ô
Beverage Manufactures food and beverage SAP Cost reduction of
Manufacturer products operational systems
Military Aircraft Manufactures military aircrafts Peoplesoft Cost reduction; data
Manufacturer integration
Electrical Manufacturer of electrical and Oracle Ônventory reduction;
Manufacturer electronic products and systems headcount savings;
reduced lead times
Ônvestment National investment brokerage Peoplesoft Data integration;
Brokerage Firm firm common systems
Pharmaceutical Manufacturers and markets high- SAP Standardization; cost
Manufacturer value agricultural products, reduction of core
pharmaceuticals, and food operational systems
ingredients
Consumer Product Manufactures dog/cat foods and Oracle Cost reduction; data
Manufacturer dry cell battery products integration

Chemical Manufactures and distributes SAP Headcount savings;

Manufacturer biochemicals, organic systems integration
05-08-2010
chromatography products
Risk Factors andWide Ônformation
in Enterprise
3
diagnostic reagents Management Systems Projects
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A simple definition of "risk" is a problem that hasn't

happened yet but could cause some loss or threaten
the success of your project if it did.

Risk Factors in Enterprise Wide Ônformation

05-08-2010 4
Management Systems Projects
 What are the major risk factors associated with
Enterprise-Wide Ônformation Management Projects?

Risk Factors in Enterprise Wide Ônformation

05-08-2010 5
Management Systems Projects
 



 
 
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ͻ Failure to re-design business processes

ORGANÔ ATÔONAL ͻ Failure to follow an enterprise-wide design
which supports data integration
FÔT ͻ Lack of data integration and lack of data
standardization

ͻ Ônsufficient training and re-skilling

ͻ Ônsufficient internal expertise
ͻ Lack of business analysts with business &
SKÔLL technology knowledge
MÔ
ͻ Failure to effectively mix internal & external
expertise
ͻ Lack of ability to recruit & retain qualified ERP
systems developers
Risk Factors in Enterprise Wide Ônformation
05-08-2010 6
Management Systems Projects
 ͻ Lack of senior management support
MANAGEMENT ͻ Lack of proper management control structure
STRUCTURE & ͻ Lack of a champion
ͻ Ôneffective communication
STRATEGY
ͻ Lack of change management strategy

ͻ Failure to adhere to standardized

SOFTWARE specifications which the software supports
ͻ Failure to effectively integrate ͞add-on͟
SYSTEMS modules
DESÔGN ͻ Failure to recognize the importance of
application-specific knowledge

ͻ Lack of disciplined, flexible project

PROJECT management
MANAGEMENT ͻ Failure to recognize the risk of scope
expansion(time, cost)

Risk Factors in Enterprise Wide Ônformation

05-08-2010 7
Management Systems Projects
 ͻ Ônsufficient training of end-users
USER ͻ Ôneffective communication
ÔNVOLVEMENT ͻ Lack of full-time commitment of
customers to project management and
& project activities
TRAÔNÔNG ͻ Lack of sensitivity to user resistance
ͻ Failure to emphasize reporting

ͻ Ônability to avoid technological bottlenecks

TECHNOLOGY ͻ Lack of an integrated technology strategy
to support client-server implementation
PLANNÔNG ͻ Attempting to build bridges to legacy
applications

Risk Factors in Enterprise Wide Ônformation

05-08-2010 8
Management Systems Projects
 ͞Summary͟ Ôdeas for successful
implementation of Enterprise-Wide
Ônformation Management Systems Projects:-

þ Cost Justification
þ Modify the Business Processes NOT the software
þ Re-skill the existing ÔT workforce
þ ͞Business Analysts͟ = Technology knowledge +
Business Knowledge
þ Obtain Top management support
þ Train end-users
þ Change Management through leadership and effective
communication

Risk Factors in Enterprise Wide Ônformation

05-08-2010 9
Management Systems Projects
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Risk Factors in Enterprise Wide Ônformation

05-08-2010 10
Management Systems Projects