In ERP application management projects, reducing risk helps ensure success. Basically, risk describes the countless potential failure points that exist throughout an ERP project. Risks surface from problems in technology, staff, politics, nature and more. For example, an untested piece of equipment can fail or a hurricane can hit the weekend the project goes live. For more information about ERP Application Management, visit http://www.oneneck.com/Solutions.aspx today.
2. ERP Application
Management
• Risks is described as countless potential failure
point that exist throughout an ERP project
• Risks surface from problems in technology, staff
nature and more
• Project managers can break down risk
avoidance into five steps
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3. ERP Application
Management
Step 1: Identify Potential Points of Failure
• An experienced project team is best defense
against risk
• Well qualified IT outsourcing firms offer the
highest levels of expertise and experience
• Examples of point of failures: cost estimates,
unqualified project managers and lack of clear
objectives for ERP application management
project
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4. ERP Application
Management
Step 2: Assess the Potential Damage
• After identifying point of failure, team must
assess the likely damage:
• What will happen to budget, schedule or users’
requirements?
• What will the impact be at micro or macro
level?
• How severe will damage be and who are
affected?
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5. ERP Application
Management
Step 3: Determine the Probability of Failure
• Assess the probability that failure will actually
occur
• Project team needs in-depth expertise in ERP
application as well as company’s business
• Working with IT outsourcing company, businesses
have opportunity to get expertise they may not
have in-house, as well as experience implementing
package within similar sized company in same
industry
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6. ERP Application
Management
Step 4: Prioritize the Risks
• Team can decide what risks they’ll focus on
eliminating due to detrimental effect on
business
• Project team makes executive management
aware of priority risks
• Monitoring plan should be in place for project
team to oversee all identified and less
important risks
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7. ERP Application
Management
Step 5: Mitigate the Risks
• Team needs appropriate action to mitigate all risks
• Goal is eliminate all risks as much as possible
• Mitigation involves reducing risk’s probability or
impact
• Team needs to address both risk probability and
impact in application management plan
• Plan should identify actions needed to reduce risk
and steps required to recover
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8. About the Author
• Chuck Vermillion is CEO and founder of
OneNeck IT Services, a leading provider of
hosted application management and managed
services since 1997. For more information
about ERP Application Management, visit
http://www.oneneck.com/Solutions.aspx
today.
http://www.oneneck.com