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Don’t Become An ERP Horror Story – You Need Risk Management!

With planning comes risk. With risk comes wasted money and time. It does not need to be that way. When most of us think of horror stories, we think of monsters under the bed or zombies on the lawn. We tend not to think of risk management gone wrong when, in fact, that is the horror story we are most likely to be a part of. In an article from shows us why the risk management process can be scary:

If the ERP implementation risks are already known and there are well established processes to manage risk, then why do the risk management processes fail? Risk by definition, is not a problem. Risk is the anticipation of a future problem. Risk leads an insidious and elusive existence. It is present and absent, hard to pinpoint but very important. If everything goes according to plan, nothing bad happens. But as the saying goes, without risk there is no reward. The only way to eliminate risk entirely is to do nothing at all, which by the way brings its own risks to the business

The article notes that, if we look back at trends within our own organization as well as others, we will find 5 things that “repeatedly derail ERP implementation risk management”:

  1. Failure to establish the proper context
  2. Flawed executive engagement model
  3. Not recognizing and addressing biases in the identification and assessment process.
  4. Failure to account for risk interrelationships
  5. Lack of rigor

</a>Each of the items listed may seem like common sense things to consider, yet it seems that they are continuously overlooked. Remember, as the article said, doing nothing about ERP implementation risk management brings about its own risks. If you are looking for somewhere to start, consider analyzing your context and executive engagement model. Also, try to identify and address as many biases as you can. In short, taking small steps to prevent disaster will ensure you are not the star in your own ERP horror story.

About Anne Grybowski

Anne is a former staff writer for CAI's Accelerating IT Success, with a degree in Media Studies from Penn State University.

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