Discussing about the successful factors of ERP projects implementation and the risk management
by Nooredin Etezady The primary functions of Enterprise Resource Planning (ERP) are to integrate the inter-departmental operation procedures and Management Information System (MIS) modules, and to reallocate the resources of a company. How to successfully implement an ERP system in an organization is always a hot research topic for researchers as well as a pending problem for an organization that wants to implement it. A case study on the selection of system suppliers and contract negotiation during the ERP implementation of a local construction company in Taiwan, after reviewing the common key success factors discussed in the literature, discussed seven issues: coding system, working process reengineering, priority of ERP functionality implementation, customization, participant roles, consultant role and performance level of subcontractor, which also affected the implementation. Lessons learned from the case study in discussed seven issues are valuable for a construction company in deciding to implement an ERP system. This study suggests that additional case studies are necessary for the successful application of ERP systems in the construction industry. ERP implementation is a 'Triple Play' that combines people, technology, and processes. It embodies a complex implementation process, especially in developing countries like China, often taking several years, huge amount of fund and involving a major business process reengineering exercise. An attempt has been made to identify some Chinese-specific difficulties in the implementation process and provide solutions to implement ERP system successfully through questionnaire survey, interviews, and secondary data. On the basis of analysis of questionnaire results, some common difficulties have been explored by authors, such as support of top management, costly and time-consuming, cultural differences, technical complexity, lack of professional personnel, and inner resistance. The difficulties are largely due to the nature of enterprise's ownership and size. Suggested solutions to overcome these difficulties: ERP software packages selection, ERP implementation team, BPR, Training, and Outsourcing-Application Service Provider. These solutions can effectively solve ERP difficulties.
The effectiveness of the implementation of enterprise resource planning in improving service quality can be seen in the Taiwanese semiconductor industry by assessing the expectations and the perceptions of service quality from the perspectives of both upstream manufacturers and downstream customers. The study first establishes a modified service quality gap model incorporating: (i) the downstream customers' expectations and perceptions, and (ii) the upstream manufacturers' perceptions of the customers' expectations and perceptions. An empirical study by questionnaire survey is then undertaken to investigate the gaps proposed in the research model. The results show that service quality gaps do exist in the Taiwanese semiconductor industry between upstream manufacturers that are implementing ERP and their downstream customers. The study shows that the proposed model provides valuable guidance to manufacturers with respect to the prevention, detection, and elimination of the demonstrated service quality gaps. The model thus helps manufacturers to evaluate the contribution of various ERP modules to improved customer satisfaction with service quality and also provides guidance on improvement strategies to enhance service quality by eliminating quality gaps. Actually, ERP is widely used in many fields, from public sectors to individual business. Recently, service organizations have invested considerable resources in the implementation of Enterprise Resource Planning (ERP) systems, even using solutions initially targeted for manufacturing companies. To get an insight into how services approach help ERP implementation, a review of ERP projects, especially in services, completed by six case studies has been undertaken. We identify and discuss some characteristics of services, which are discriminatory regarding manufacturing. Main characteristics identified deal with complete or partial integration, product or customer orientation, importance of labor, human factor. In conclusion, trends to standardization and integration seen in the industrial sector are also growing in services, but in different ways. Refers to the overseas some literature material, a successful ERP project, often needs to spend several year times, number thousands of US dollars can complete. Again turns head looks at the home, along with ERP skepticisms gaining ground, price war starting, ERP took one kind of software supplier's product, has actually goes down the god world tendency. ERP leader SAP also promoted Business the One product, the price has been lower than 100,0
  00.Even if the ERP software can achieve
free, or like the IBM esteem according to the boundary which must collect fees, implements the angle from the entire enterprise, considers the personnel, training, the maintenance, the service reorganization, the re-development, three, n development, its expense should also in several 1,000,000 and even surely the scale. This speaking of the domestic enterprise, already was not the small number. But, some many enterprises harbor the beautiful dream, steps the ERP implementation the difficult travel. In which also has many projects to be defeated comes to an end. But regarding these final survivors, whether can the halberd be also put in storage, drinks wine to sing loudly? In fact, the enterprise implements the ERP project after the success will face implements a bigger risk. In future five to ten years in, some solid ERP risk management mechanism had decided whether the enterprise can obtain benefits truly in the initial ERP investment. In 1998 Thomas H.Davenport has published named "Puts in Enterprise System" the article in the Harvard commerce commentary (Putting the enterprise into the enterprise system).This article proposed systematically the enterprise system, or called the ERP system the operation brings for the enterprise positive and negative directs the sound. Simultaneously also directly proposed the future enterprise will have to face a risk: Puts in the enterprise system the entire enterprise the risk. According to US Project management Association to the risk the definition, "the risk" is refers to the project advantageous or the disadvantageous element of certainty. The project is "for completes the disposable endeavor which some unique product or the service station do", the project "the distinctive quality" had decided the project not impossible was by with the before identical way, simultaneously, the project which completed by and the before identical person must create the product or the service, as well as the project possibly involved the scope, the time and the cost all not impossible started when the project completely to determine, therefore, carried on in the process in the project also corresponding to be able to appear the massive uncertainty, namely project risk. Below this article mentioned "the risk" is refers to the project "disadvantageously" the element of certainty. Exists to the project disadvantageous risk in any project, often and can give the project the advancement and the project success brings the negative influence. Once the risk occurs, its influence is various, like causes the project product/service the function to be unable to satisfy the customer the need, the project expense surpasses the budget, the project
plan dragging or is compelled to cancel and so on, it finally manifests for customer degree of satisfaction depression. Therefore, the recognition risk, the appraisal risk and take the measure to be supposed to be the risk management have the extremely vital significance to the risk to the project management. Ⅰ Risk management concrete content The project risk management mainly divides into following several steps: The risk recognition, the qualitative/quota risk analysis, the risk should to plan the establishment and the risk monitoring.
  1. risk recognitions The risk recognition, is refers distinguishes and records possibly has the adverse effect to the project the factor. Because the project is in develops in unceasingly the change process, therefore the risk recognition also passes through in the entire project implementation entire process, but is not merely the project initial stage. The risk recognition is not the disposable work, but need more systems, crosswise thought. Possesses nearly about the project plan and the information all possibly takes the risk recognition the basis, like project progress and cost plan, work decomposition structure, project organizational structure, project scope, similar project historical information and so on. Needs to pay attention, all risks all may carry on the management by no means through the risk recognition. The risk recognition only can discover the known risk (for example: In the known project organization some member ability cannot satisfy the request completely) or the known unknown risk (known-unknown, namely "event name known", like "customer side personnel participates in dynamics being insufficient"); Before but certain risks, as a result of the project distinctive quality, not impossible to occur in it know in advance (unknown-unknown, namely unknown-unknown risk).
  2. qualitative/quota risk analysis The latent risk quantity distinguishes which through the risk recognition process are very many, but these latent risks to the project the influence are various. "The risk analysis" namely through the analysis, the comparison, the appraisal and so on each way, to determined various risks the importance, sorts to the risk and appraises it to
the project possible consequence, thus causes the project to implement the personnel to be possible to concentrate the main energy in the few in number main risk, thus enable the project the overall risk to be under the effective control. The risk analysis mainly may use the method includes: Risk probability/influence appraisal matrix, sensitive analysis, simulation and so on. When carries on the above analysis, mainly pays attention to following several risk factor: Risk probability: Namely the risk event occurs possible percentage expression. This numeral is, like the expert who obtains through the subjective judgment appraises, the interview or the basis before similar project historical information. Risk influence: Namely the risk has possibly the influence size which creates to the project. This kind of influence is possibly in the time, possibly is in the cost, also is possibly other various aspects. Risk value (required value EMV): The risk value = risk probability * risk influence, is to the risk the influence most direct appraisal which creates to the project, its overall evaluation probability with has affected two aspects the factors.
  3. risks should plan the establishment The risk should lie in to the plan goal through the formulation corresponding measure, comes to be supposed to the risk the threat which possibly creates to the project.Most often uses should to threat several measures be: The circumvention, reduces, the shift, accepts. The circumvention, namely eliminates this risk through the elimination risk origin; Reduces, namely through takes the measure to reduce "the risk probability" or "the risk influence", thus achieved reduces the risk value the result; The shift, soon the risk shifts to another side, like purchase insurance, sub package and so on;
Accepts, namely does not take the measure to this risk, accepts result which it creates, or occurs after this risk uses the contingency plan to carry on processing again. Selects what method to come specifically to be supposed to some risk, is decided in this risk value (EMV), plans to adopt should to the measure possible cost, the project management personnel treat the risk the manner (utility function) the type and so on various aspects, cannot be generally spoken. The risk should be aims at the risk to the plan which distinguishes to carry on; Regarding the unknown risk, not impossible to choose in advance the formulation corresponding to be supposed to plan or the contingency plan, therefore, may stockpile using the management should be right.
  4. risk monitoring The risk monitoring mainly includes following several aspects the duty:
  1) Carrying on in the process in the project to track has distinguished the risk, the monitoring remaining risk and distinguishes the new risk: Along with the project implementation as well as the risk should to the measure execution, each kind the influence factor be in the process to the project which changes unceasingly, therefore, needs in the entire project process, the time surveillance risk development and the change situation, determined follows the new risk which certain risks vanishing comes and formulates the corresponding processing measure.
  2) Guaranteed the risk should to the plan execution and appraised the risk should to plan carry out the effect. The appraisal method may be the project cycle (stage) the natural review, the achievements appraisal and so on.
  3) "accepts" to the sharp-edged risk the risk takes the suitable flexible measure. Through the risk monitoring process, the project pers
 

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