Not all ERP systems will be 100% successful in implementation

      At present, although many enterprises have realized the importance of ERP systems and started preparing ERP projects, not all ERP systems will be 100% successful in implementation. Usually, when considering the factors that lead to ERP failure, people tend to focus on analyzing numerous factors during the implementation process, while often ignoring the potential risks of the ERP system before and after project initiation and implementation completion. For ERP projects, risks exist throughout the entire project process, including project planning, project preparation, implementation process, and system operation.
      In summary, the risks of ERP projects mainly include the following aspects:
1. Strategic planning
      Does the enterprise have an IT system plan for a few years? With the informatization of society, IT systems are not only tools for enterprises, but also technical means. ERP, as an important component of IT systems, serves the long-term planning of enterprises and is a means and guarantee for long-term planning.
      The goal of ERP originates from IT system planning and is the basic criterion for evaluating the success or failure of ERP systems. Based on IT system planning, the scope and content of ERP system implementation should be clearly defined.
2. Project Preparation
      Determining hardware and network solutions, selecting ERP systems, and evaluating consulting partners are the three main tasks of this stage, as well as the three major elements of ERP system implementation.
      Hardware and network solutions directly affect the performance, reliability, and stability of the system; The strength of ERP system functions determines the degree of satisfaction of enterprise needs; The work ability and experience of consulting partners determine the quality and effectiveness of the implementation process.
3. Project Implementation Control
      In the implementation of ERP systems, project management technology is usually used to control and manage the implementation process. Effective implementation control is manifested in scientific implementation plans, clear stage outcomes, and strict outcome reviews. Not only that, effective control also manifests in active coordination and smooth information transmission channels.
      The organizational structure for implementing ERP includes: steering committee, project manager, external consulting consultant, IT department, implementation team of functional departments, and end users of functional departments. The coordination and communication between departments determine the quality and efficiency of the implementation process. At present, in the absence of suitable project managers in enterprises, this risk is particularly evident and serious.
4. Business process control
      Enterprise business process reengineering is completed during the design phase of project implementation. The control and supervision links in the process ensure that all business operations are effectively controlled after the formal operation of ERP, avoiding human losses for the enterprise.
      When designing control processes, both control and efficiency should be taken into consideration. Excessive control links and redundant business processes will inevitably reduce work efficiency. Insufficient control measures can also pose a risk of business loss.
5. Project implementation effect
      Although project evaluation is the final stage of ERP implementation process. But this does not mean that project evaluation is not important. On the contrary, the results of project evaluation are a direct reflection of the effectiveness of ERP implementation. Correctly evaluating implementation results requires clear implementation goals, objective evaluation standards, and scientific evaluation methods.
      There is currently a widespread problem of neglecting project evaluation. Neglecting project evaluation will lead to the hidden danger of the implementation team not caring about the implementation results. This is precisely where the huge risk lies in ERP projects.
6. System security management
      System security includes: operating system authorization, network device permissions, application system functional permissions, data access permissions, virus prevention, supervision of illegal intrusions, tracking of data changes, secure backup and archiving of data, security management regulations for host rooms, supervision by system administrators, and so on.
      At present, there are relatively few personnel proficient in computer technology in enterprises, and there are also not many computers connected to the Internet. Therefore, there is a common phenomenon of neglecting system security when implementing ERP systems. For example, users do not pay attention to password confidentiality, and super users authorize multiple people. The direct consequence of a lack of security awareness is the existence of vulnerabilities and defects in the system's security design. In recent years, there have been constant reports of illegal intrusion into bank or corporate computer systems in newspapers, which has sounded the alarm for businesses.
7. Unexpected accidents or disasters
      Uncontrollable natural disasters such as floods, fires, and earthquakes can bring devastating impacts to ERP systems. After the official implementation of the ERP system by enterprises, this kind of destruction will directly cause interruption of business transactions, bringing incalculable losses to the enterprise.
      A proactive strategy and response measures are a good way to reduce this risk. Establish remote backup and recovery mechanisms; The steps and measures to resume manual business processing in the event that the computer system cannot function properly.
      The information age has arrived, and for enterprises, the key issue of ERP has shifted from whether it exists to whether it can operate with high quality. Having an ERP system that is suitable for one's own production situation will play an important role in improving enterprise production capacity in the future. If a company decides to implement ERP, it must make sufficient preparations in advance to ensure that ERP can truly play its role. “