ERP Implementation and Risk Management

What leadership issue commonly causes ERP failure?

Inadequate leadership and governace

Why does poor strategic alignment cause ERP failure?

The ERP does not support real business goals or justification

How does lack of change management affect ERP projects?

It leads to resistance, poor adoption, and user dissatisfaction.

Why do legacy systems increase ERP failure risk?

They complicate integration and limit system flexibility

Why is user involvement critical to ERP success?

It ensurs the system meets real operational needs and improves adoption

What role does senior executive sponsorship play?

It provides authority, resources, and organisational commitment

Why is experienced project management essential?

ERP projects are complex, high-risk, and cross-functional

Why must ERP projects have clear business objectives?

To guide decisions and measure success

What three high-level factors are critical to ERP success?

• Organisational competitiveness

• Stakeholder engagement and commitment

• Technical understanding of ERP systems

What financial impact can ERP failure cause?

Increased operating costs and financial losses

Why is relying only on technical staff risky?

ERP projects require business, organisational, and strategic leadership

What are the four PMBOK risk management steps?

• Risk identification

• Risk analysis

• Risk response planning

• Risk monitoring and control

Why use independent third-party reviews for ERP risk?

To obtain objective and unbiased risk assessments.