2692-2967ISSN (Online)
2770-0216ISSN (Print)
Volume 2 , Issue 1 , PP: 39-50, 2021 | Cite this article as | XML | Html | PDF | Full Length Article
Abdel Nasser H. Zaied 1 * , Shaimaa Mohmed 2
Doi: https://doi.org/10.54216/AJBOR.020101
The implementation of ERP projects is a specific case of information system projects that require modifying pre-produced software according to the condition specified for an organization to fulfill particular benefits. ERP systems adoption is a complicated, lengthy, risky, and costly process for all sizes of organizations that usually faces critical failures and challenges. Especially for SMEs with limited capabilities and resources, they lack the experience of requirement specification and ERP implementation. This failure could be costly and may cause corporate bankruptcy. This study proposes a Risk Diagnosing Methodology for implementing ERP projects in SMEs (RDMERP). The proposed methodology is systematic and a global road to proactively identify, assess, analyze, and treat the various risks associated with any ERP implementation through all the phases for protecting the SMEs’ assets and mission and meeting the ERP project objectives.
Enterprise Resource Planning, Small-and-Medium-Sized Enterprises, Risk Management.
[1] T. Kiran and A. Reddy, “Critical success factors of ERP implementation in SMEs,” J. Proj. Manag., vol. 4, no. 4, pp. 267–280, 2019.
[2] P. Iskanius, “Risk Management in ERP Project in the Context of SMEs.,” Eng. Lett., vol. 17, no. 4, 2009.
[3] D. Saxena, B. Dempsey, and J. McDonagh, “Beyond the One-dimensional Construct of Failure: the Curious Case of Enterprise Systems Failure rates.,” in UKAIS, 2016, p. 38.
[4] C. J. Stefanou, “Adoption of free/open source ERP software by SMEs,” in Information Systems for Small and Medium-sized Enterprises, Springer, 2014, pp. 157–166.
[5] A. Zareravasan and T. Mansouri, “A dynamic ERP critical failure factors modelling with FCM throughout project lifecycle phases,” Prod. Plan. Control, vol. 27, Jul. 2015, doi: 10.1080/09537287.2015.1064551.
[6] P. Sudhaman and C. Thangavel, “Efficiency analysis of ERP projects—software quality perspective,” Int. J. Proj. Manag., vol. 33, no. 4, pp. 961–970, 2015.
[7] N. Y. Conteh and M. J. Akhtar, “Implementation challenges of an enterprise system and its advantages over legacy systems,” Int. J. Comput. Sci. Eng., vol. 7, no. 11, p. 120, 2015.
[8] M. Haddara and T. Hetlevik, “Investigating the effectiveness of traditional support structures & self-organizing entities within the ERP shakedown phase,” Procedia Comput. Sci., vol. 100, pp. 507–516, 2016.
[9] L. A. Joia, D. G. de Macêdo, and L. G. de Oliveira, “Antecedents of resistance to enterprise systems: The IT leadership perspective,” J. High Technol. Manag. Res., vol. 25, no. 2, pp. 188–200, 2014.
[10] D. Aloini, R. Dulmin, and V. Mininno, “Risk management in ERP project introduction: Review of the literature,” Inf. Manag., vol. 44, no. 6, pp. 547–567, 2007.
[11] E. A. Khvalev, “Key characteristics in ERP implementation projects: conceptual model for analysis,” in Proceedings of the 4th Conference on Theory and Practice of Modern Science, Moscow, Russia, 2010, vol. 30, p. 31.
[12] S. Hashi, “Role of Small and Medium Enterprises In Economic Development.” 2019.
[13] M. C. Antero, A Multi-case Analysis of the Development of Enterprise Resource Planning Systems (ERP) Business Practices. Frederiksberg: Copenhagen Business School (CBS), 2015.
[14] J. Branch, “The role of enterprise resource planning (ERP) for small and medium enterprises (SMEs),” Res. J. Appl. Sci. Eng. Technol., vol. 5, no. 7, pp. 2317–2320, 2013.
[15] V. Tsamantanis and H. Kogetsidis, “Implementation of enterprise resource planning systems in the Cypriot brewing industry,” Br. Food J., 2006.
[16] P. Helo, P. Anussornnitisarn, and K. Phusavat, “Expectation and reality in ERP implementation: consultant and solution provider perspective,” Ind. Manag. Data Syst., 2008.
[17] C. J. Costa, E. Ferreira, F. Bento, and M. Aparicio, “Enterprise resource planning adoption and satisfaction determinants,” Comput. Human Behav., vol. 63, pp. 659–671, 2016.
[18] F. Tasevska, T. Damij, and N. Damij, “Project planning practices based on enterprise resource planning systems in small and medium enterprises—A case study from the Republic of Macedonia,” Int. J. Proj. Manag., vol. 32, no. 3, pp. 529–539, 2014.
[19] L. Aversano, M. Di Brino, D. Guardabascio, M. Salerno, and M. Tortorella, “Understanding enterprise open source software evolution,” Procedia Comput. Sci., vol. 64, pp. 924–931, 2015.
[20] M. B. BAKER and Z. YOUSOF, “FACTORS INFLUENCING KNOWLEDGE SHARING IN ENTERPRISE RESOURCE PLANNING SYSTEM USAGE IN SMALL AND MEDIUM ENTERPRISES.,” J. Theor. Appl. Inf. Technol., vol. 95, no. 8, 2017.
[21] S. Saini, S. Nigam, and S. C. Misra, “Identifying success factors for implementation of ERP at Indian SMEs: A comparative study with Indian large organizations and the global trend,” J. Model. Manag., 2013.
[22] J. G. Rosario, “On the leading edge: critical success factors in ERP implementation projects,” Bus. World, vol. 17, no. May, pp. 15–29, 2000.
[23] H.-B. Kittlaus, C. Rau, and J. Schulz, “Software-Produkt-Management,” Nachhalt. Erfolgsfaktor bei Herstellern und Anwendern, Berlin, 2004.
[24] P. K. Dey, D. Bennett, and B. Clegg, “Managing risk in enterprise resource planning projects,” 2009.
[25] S. Shukla, P. K. Mishra, R. Jain, and H. C. Yadav, “An integrated decision making approach for ERP system selection using SWARA and PROMETHEE method,” Int. J. Intell. Enterp., vol. 3, no. 2, pp. 120–147, 2016.
[26] A. Aslanyan, “Risks in ERP projects implementation: How communication and business processes re-engineering risks effect ERP projects.” 2017.
[27] S.-C. Chong and A. Lakshanthi, “LITERATURE BASED REVIEW -RISKS IN ERP SYSTEMS INCLUDING ASIAN COUNTRIES Samantha Mathara Arachchi #1,” Eur. J. Comput. Sci. Inf. Technol., vol. 3, pp. 1–14, Apr. 2015.
[28] T. S. Kiran and A. V. D. Reddy, “Evaluating critical success factors of ERP implementation in SMEs,” Int. J. Recent Technol. Eng., vol. 8, no. 2, pp. 1144–1149, 2019.
[29] K. Srinivas, “Process of Risk Management,” in Perspectives on Risk, Assessment and Management Paradigms, IntechOpen, 2019.
[30] G. Thangamani, “Modified Approach to Risk Assessment-A Case Study on Product Innovation and Development Value Chain,” Int. J. Innov. Manag. Technol., vol. 7, no. 1, p. 16, 2016.
[31] R. Nafkha and D. Strzęciwilk, “Risk assessment for ERP system implementation,” Inf. Syst. Manag., vol. 3, 2014.
[32] P. K. Dey, B. Clegg, and W. Cheffi, “Risk management in enterprise resource planning implementation: a new risk assessment framework,” Prod. Plan. Control, vol. 24, no. 1, pp. 1–14, 2013.
[33] P. Dey, B. Clegg, and W. Cheffi, “Risk management in enterprise resource planning implementation: A new risk assessment framework,” Prod. Plan. Control - Prod. Plan. Control, vol. 24, pp. 1–14, Jan. 2011, doi: 10.1080/09537287.2011.597038.
[34] P. K. Dey, B. Clegg, and W. Cheffi, “11 Risk management in enterprise resource planning implementation,” Risk Manag. Eng. Constr. Tools Tech., p. 205, 2019.
[35] D. Aloini, R. Dulmin, and V. Mininno, “Risk Management in Enterprise Resource Planning Systems Introduction,” in Handbook On Business Information Systems, World Scientific, 2010, pp. 297–320.
[36] H. Y. Ching and T. M. Colombo, “Enterprise risk management good practices and proposal of conceptual framework,” J. Manag. Res., vol. 6, no. 3, p. 69, 2014.
[37] A.-L. PRIOTEASA, C. N. CIOCOIU, A. CHITIMIEA, and V. R. VĂDUVA, “Quantitative Approach to The Implementation of Risk Management In Operating Activities of Romanian SMEs,” 2020.
[38] P. M. Institute, “Practice standard for project risk management,” 2009.
[39] D. ALOINI, “Risk Management in ERP introduction projects,” 2008.
[40] K. Sadgrove, The complete guide to business risk management. Routledge, 2016.
[41] M. Ojala, I. Vilpola, and I. Kouri, “Risks and risk management in ERP Project-cases in SME Context,” in Business Information Systems–9th International Conference on Business Information Systems (BIS 2006), 2006.
[42] A. Wong, H. Scarbrough, P. Chau, and R. Davison, Critical Failure Factors in ERP Implementation. 2005.
[43] T. M. Somers and K. G. Nelson, “A taxonomy of players and activities across the ERP project life cycle,” Inf. Manag., vol. 41, no. 3, pp. 257–278, 2004.
[44] V. Kumar, B. Maheshwari, and U. Kumar, “An investigation of critical management issues in ERP implementation: emperical evidence from Canadian organizations,” Technovation, vol. 23, no. 10, pp. 793–807, 2003.
[45] S. S. Ariss, T. S. Raghunathan, and A. Kunnathar, “Factors affecting the adoption of advanced manufacturing technology in small firms,” SAM Adv. Manag. J., vol. 65, no. 2, p. 14, 2000.
[46] U. Hussaini, A. A. Bakar, and M.-B. O. Yusuf, “The effect of fraud risk management, risk culture and performance of banking sector: A conceptual framework,” Int. J. Multidiscip. Res. Dev., vol. 6, no. 1, pp. 71–80, 2019.
[47] N. Ekwere, “Framework of effective risk management in small and medium enterprises (SMESs): a literature review,” Bina Ekon., vol. 20, no. 1, pp. 23–46, 2016.
