Risks affecting ERP post‐implementation

Purpose – The purpose of 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 ...

[1]  Jane P. Laudon,et al.  Management Information Systems: Managing the Digital Firm , 2010 .

[2]  Chian-Son Yu,et al.  Causes influencing the effectiveness of the post-implementation ERP system , 2005, Ind. Manag. Data Syst..

[3]  C. W. Kenneth Keng China's Unbalanced Economic Growth , 2006 .

[4]  Philip E. T. Lewis,et al.  Research Methods for Business Students (2nd edition) , 2000 .

[5]  Omprakash K. Gupta,et al.  Enterprise resource planning: a case of a blood bank , 2004, Ind. Manag. Data Syst..

[6]  Maris G. Martinsons,et al.  Management information systems in the Chinese business culture: An explanatory theory , 1997, Inf. Manag..

[7]  Ike C. Ehie,et al.  Identifying critical issues in enterprise resource planning (ERP) implementation , 2005, Comput. Ind..

[8]  R. Yin Case Study Research: Design and Methods , 1984 .

[9]  J. Cerviño,et al.  International franchise expansion of service chains: insights from the Spanish market , 2012 .

[10]  Jos Gamble,et al.  Transferring human resource practices from the United Kingdom to China: the limits and potential for convergence , 2003 .

[11]  Angappa Gunasekaran,et al.  Measuring uncertainties in MRP environments , 2000 .

[12]  N. D. Burns,et al.  Investigating factors affecting ERP selection in made-to-order SME sector , 2008 .

[13]  Bennet P. Lientz,et al.  Risk Management for IT Projects: How to Deal with Over 150 Issues and Risks , 2006 .

[14]  Angappa Gunasekaran,et al.  Enterprise information systems project implementation:: A case study of ERP in Rolls-Royce , 2004 .

[15]  J. Cerviño,et al.  Identifying the factors driving market selection in Latin America. An insight from the Spanish franchise industry , 2011 .

[16]  W. Boulton,et al.  ERP implementation failures in China: Case studies with implications for ERP vendors , 2005 .

[17]  Jacky Swan,et al.  A knowledge‐focused perspective on the diffusion and adoption of complex information technologies: the BPR example , 2000, Inf. Syst. J..

[18]  David C. Chou,et al.  BI and ERP integration , 2005, Inf. Manag. Comput. Security.

[19]  Ilan Alon,et al.  Service Franchising: A Global Perspective , 2005 .

[20]  Robert W. Scapens,et al.  ERP systems and management accounting change: opportunities or impacts? A research note , 2003 .

[21]  José Miguel Baptista Nunes,et al.  Identification and assessment of risks associated with ERP post-implementation in China , 2009, J. Enterp. Inf. Manag..

[22]  Ravi Kalakota,et al.  e-Business: Roadmap for Success , 1999 .

[23]  Michael Rosemann,et al.  What is ERP? , 2000, Inf. Syst. Frontiers.

[24]  Junsen Zhang,et al.  Economic returns to schooling in urban China, 1988 to 2001 , 2005 .

[25]  J. O'Brien Management Information Systems: Managing Information Technology in the Networked Enterprise , 1996 .

[26]  T. C. Loh,et al.  Critical elements for a successful enterprise resource planning implementation in small-and medium-sized enterprises , 2004 .

[27]  Jos van Hillegersberg,et al.  Enterprise resource planning: introduction , 2000, CACM.

[28]  Yaohui Zhao,et al.  Foreign direct investment and relative wages: The case of China , 2001 .

[29]  George Wright,et al.  Sales information systems in the UK financial services industry: an analysis of sophistication of use and perceived barriers to adoption , 2002, Int. J. Inf. Manag..

[30]  Shi-Ming Huang,et al.  Assessing risk in ERP projects: identify and prioritize the factors , 2004, Ind. Manag. Data Syst..

[31]  Jaideep Motwani,et al.  Critical factors for successful ERP implementation: Exploratory findings from four case studies , 2005, Comput. Ind..

[32]  Ahad Zare Ravasan,et al.  Identification and classification of ERP critical failure factors in Iranian industries , 2012, Inf. Syst..

[33]  Dave Oliver,et al.  Researching ERP adoption: an internet-based grounded theory approach , 2005, Online Inf. Rev..

[34]  Matthew K. O. Lee,et al.  Critical success factors of enterprise resource planning systems implementation success in China , 2003, 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the.

[35]  Brian T. Pentland,et al.  Information systems and organizational learning: The social epistemology of organizational knowledge systems , 1995 .

[36]  W. Currie A knowledge-based risk assessment framework for evaluating web-enabled application outsourcing projects , 2003 .

[37]  Abhik Roy,et al.  Chinese puzzles and paradoxes: conducting business research in China , 2001 .

[38]  Hong Woo Critical success factors for implementing ERP: the case of a Chinese electronics manufacturer , 2007 .

[39]  Injazz J. Chen,et al.  Planning for ERP systems: analysis and future trend , 2001, Bus. Process. Manag. J..

[40]  Zoonky Lee,et al.  Impediments to successful ERP implementation process , 2005, Bus. Process. Manag. J..

[41]  Nigel Slack,et al.  Operations management , 1994 .

[42]  José Miguel Baptista Nunes,et al.  Surfacing ERP exploitation risks through a risk ontology , 2009, Ind. Manag. Data Syst..

[43]  Guo Chao (Alex) Peng,et al.  Issues and Difficulties in Doing Participative Research in China: Lessons Learned from a Survey in Information Systems Research , 2008 .

[44]  Birdoğan Baki,et al.  Determining the ERP package-selecting criteria: The case of Turkish manufacturing companies , 2005, Bus. Process. Manag. J..

[45]  Melanie Manion,et al.  Survey Research in the Study of Contemporary China: Learning from Local Samples , 1994, The China Quarterly.

[46]  Glen R. Burrows,et al.  Knowledge management in China , 2005, CACM.

[47]  Philip E. T. Lewis,et al.  Research Methods for Business Students , 2006 .

[48]  T. Hillman Willis,et al.  Extending the value of ERP , 2002, Ind. Manag. Data Syst..

[49]  Judy E. Scott,et al.  Implementing Enterprise Resource Planning Systems: The Role of Learning from Failure , 2000, Inf. Syst. Frontiers.