Risk factors in enterprise wide information management systems projects

ABSTRACT

In the past several years many organizations have initiated enterprise-wide information management systems projects, using such packages as SAP, Peoplesoft, and Oracle. These projects often represent the single largest investment in an information systems project in the history of these companies, and in many cases the largest single investment in any corporate-wide project. These enterprise-wide information management systems projects bring about a host of new questions, because they represent a new type of management challenge. Some of these questions and issues are:What are the major risk factors associated with implementing traditional MIS projects?What are the major risk factors associated with enterprise-wide information management projects?What new risk factors need to be addresed in ERP projects? What are some of the risks in MIS projects that are not factors in ERP projects?Based upon the findings, enterprise-wide information management systems projects pose new opportunities and significant challenges. Some of the “summary” ideas which are re-iterated throughout the case studies are: Justify the enterprise-wide projects based upon cost-justification and economies of scale.Re-engineer business processes to “fit” the package, rather than trying to modify the software to “fit” the organization's current business processes.Identify and implement strategies to re-skill the existing IT workforce and acquire external expertise through vendors and consultants when needed. Utilize “business analysts,” with both business knowledge and technology knowledge.Obtain top management support for the project and establish strong project leadership. Make a commitment to training end-users in custom report evelopment. Manage change through leadership, effective communications, and the role of a champion.

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