In the realm of Enterprise Resource Planning (ERP) projects, there exist distinct risks that demand careful consideration. Unlike conventional projects, ERP endeavors present unique challenges stemming from various organizational, technological, and human factors.

1. What are the
unique risks
of ERP
projects?
Apagen Solutions Pvt. Ltd

2. Table of
Content
About Us
Understanding Unique Risks in
ERP Projects
Mitigation Strategies
Conclusion
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3. About Us
www.apagen.com

4. > Apagen Solutions, head office is based out of Noida
> Track record of world class product & service delivery since inception in 2009
> International presence in Malaysia, UK, Nigeria, Kenya, USA, Canada, Saudi Arabia, Dubai,
Oman, Kuwait and UAE
> Rich portfolio of alliances with major industry players
> Expert in Manufacturing, Construction, Media, Healthcare, Ecommerce domain
> World class ERP consulting services for Auto component Manufacturers, Radio station,
Newspaper, TV channel, oil and gas drilling companies, Logistic companies, Plastic
processing units, Cement Units, Retail, Export Companies
> Having huge pool of products for Help Desk, Smart Card, Biometrics Payroll system,
Accounting, mobility, Production automation & Private Enterprise ATM etc.
> Rich experience in offshore delivery through ODCs (Offshore Delivery Model) at Noida and
Next focus is on Bengaluru in India .
Appearance
Experience

5. Understanding
Unique Risks in
ERP Projects
www.apagen.com

6. Organizational Factors
ERP projects entail risks associated with organizational
dynamics. Failure to align business processes with best
practices inherent in ERP systems poses a significant
threat. Customizing systems to fit existing, often inefficient
processes can impede integration, eliminate redundancy,
and streamline operations.
Employee Skills
A critical risk lies in the acquisition and retention of
necessary skills. Inadequate training and reskilling of IT
personnel, along with a shortage of ERP-trained
developers, pose substantial challenges. Balancing internal
and external expertise, alongside the scarcity of proficient
business analysts, further complicates this aspect.

7. Software Systems Design Issues
Non-adherence to standardized specifications and
challenges in data migration from legacy systems are
inherent risks. These issues can disrupt workflow and
compromise data integrity, necessitating meticulous
planning and execution.
Technology Integration Factors
Effective technology integration is pivotal for ERP success.
Lack of top management support and insufficient
investment in IT infrastructure can hinder seamless
integration, leading to project delays and cost overruns.

8. Mitigation
Strategies
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9. Embrace Best Practices
Prioritize aligning business processes with ERP system
functionalities to leverage best practices. Resist the
temptation to customize excessively, as it can impede
system integration and organizational efficiency.
Invest in Training and Development
Commit to comprehensive training programs to equip IT
personnel with the requisite skills. Foster a culture of
continuous learning and development to retain top talent
and mitigate turnover risks.
Ensure Stakeholder Support
Secure buy-in from top management and key
stakeholders to facilitate smooth project execution.
Communicate the benefits of ERP implementation
effectively to garner support and ensure project alignment
with organizational objectives.

10. Implement Robust Data Migration Plans
Devise meticulous data migration strategies to minimize
disruptions and maintain data integrity. Conduct thorough
testing and validation to mitigate risks associated with
legacy system migration.
Foster Collaboration
Promote collaboration between internal teams and
external consultants to leverage diverse expertise.
Encourage knowledge sharing and cross-functional
collaboration to enhance project outcomes.

11. The complete list is given in Table

12. Conclusion
While ERP projects present inherent risks,
proactive risk management strategies can
mitigate potential challenges. By addressing
organizational, technological, and human
factors comprehensively, organizations can
enhance the likelihood of ERP project success
and realize the transformative potential of
these initiatives.

13. www.apagen.com
+91 9971 800 665
H 160, Sector 63, Noida,
India.
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