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B. Prasanthi 2012PGP079
As we map these with the critical success factors, we can easily identify the commonality. In this writeup we would like to elaborate on these five risk factors individually and give our opinion on them.
3. Limitation in Resources
Limited resource availability is another major factor that throws the success of ERP project into risk. Resources in terms of human capital, time and finance are the major reasons. Human resources play a vital role in implementation since the team engaged with heavy load or fewer loads will lead to demotivation. ERP implementations tend to fail often due to improper estimations made by organisations in terms of developing a project plan with realistic timelines thereby leaving no contingencies to accommodate delays which may occur due to even minor unforeseen circumstances. In fact, these "unknowns" might result in significant project overruns, as dependencies between various
implementation activities tend to compound schedule slippage and resource costs because team members are not effectively utilized. While it is important to give consideration to resource loading to ensure team is equipped enough to handle the project, it is equally difficult to maintain a fully resourcebalanced plan at the task level for a large ERP implementation.