5 risks worth considering before implementing an ERP system for your business. Risk has both subjective risk and objective risk: subjective risk is the part the business can influence, customer risk is the part the business cannot influence but depends on external factors.

  1. The first is the risk that the ERP product does not meet the expanding needs of the business (Technology Risk). At present, businesses only use a small amount of resources, the requirement for the system is to be able to manage the actual operations being done in Excel using the software. However, the need for more management becomes more and more. If the product cannot be expanded, the architecture is limited, no more can be added, costs will arise or purchasing additional systems and then connecting to the old system will occur. currently in use or completely replace the system currently in use.
  2. Second is the personnel involved in the ERP project (Staffing Risk): it will be very risky if the Project Manager leaves midway, all knowledge is not fully transferred, new people need to learn starting from scratch and having difficulty grasping old ideas or changing in new directions. As a result, implementation will go around in circles, wasting time and effort previously done.
  3. Third is the risk of departments not cooperating (User Organization Risk), using software will involve many departments communicating with each other. ERP is a data inheritance so this department will be the input. and is the output of another department. Like a chain link, if it breaks midway, it will not be able to operate. Therefore, leadership's attention and determination are needed to keep the connections tight.
  4. Fourth is the risk of project scope (Project Size Risk): initially not being able to predict all the work that will arise during implementation, when actually done, the project scope will be expanded, while the project scope will be expanded. The old work is not yet completed.
  5. Fifth is the risk of incompetent implementation unit (Project Manager Structure Risk): weak organization and implementation method of the selected unit will lead to a whole process that cannot meet implementation requirements. such as: survey work, building ERP processes, professional consulting, user training,...

In addition to the above main risks, there are also other risks such as infrastructure, data, support and leadership commitment.

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