Risks affecting ERP post‐implementation

Abstract

Purpose -The purpose of the study reported in this paper is to identify, assess and explore potential risks that can affect long-term viability of Enterprise Resource Planning (ERP) systems in the post-implementation and exploitation phase. Design/methodology/approach -The research took a large Chinese private group as a case study. A theoretical ERP risk ontology, which was adopted from the literature, was used to frame the study and generate data collection tools. Two questionnaires were thus designed and used to explore ERP post-implementation risks in the case company. Findings -The study identified 37 risk events, of which seven were identified as the most critical for ERP exploitation in the case company. The findings show that organisational and human-related risks are the crucial factors for potential ERP failure and not the usually suspect technical risks. Research limitations/implications -This study contributes to the knowledge of ERP in general, and provides valuable insights into ERP post-implementation risks in large companies in particular. Practical implications -The findings will not just be useful in supporting ERP risk identification and management in the large Chinese companies, but will also be beneficial to other large companies in general, which may be confronted with similar ERP exploitation challenges. Originality/value -The majority of large companies in China and in the West have implemented ERP systems and engaged in the system post-implementation phase. Most of the existing literature in the field focuses on the process of implementation. This paper looks forward to the risks involved in the post-implementation phase. Understanding potential risks that may occur during ERP exploitation is vital for these large firms to achieve and sustain business success though their ERP systems.

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“…The measured items regarding TOE and innovation characteristics were selected from prior studies [5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20]24,35,[40][41][42][43][44][45][46]. In addition, the measured items regarding resistance characteristics were selected from revisions of existing items to better fit the research context [3,13,[21][22][23]38,[47][48][49][50][51][76][77][78][79][80][81][82][83]. Using a five-point Likert scale (1: very strongly disagree to 5: very strongly agree), all the measurements were scored.…”

The Impact of Culture Differences on Cloud Computing Adoption

“…While calculation of costs for an individual Cloud Computing solution depends on numerable things, basically it is based on the six following factors: Many researchers adopted case studies to study cloud computing issues in different countries [16][17]. However, limited studies paid attention to the role of national culture in explaining cloud computing acceptance across countries.…”

Critical internal organization’s forces influencing sustainability of post ERP in UAE service industry

“…Understanding the risks of enterprise resource planning (ERP) will help companies achieve sustainable business success using an ERP system (Pan et al, 2011). While many companies experience challenges after implementing ERP, in diverse industries and business functions, continuous ERP improvement helps sustain a seamless alignment between the structure of an organization and its ERP applications (Peng and Nunes, 2017).…”