Every project suffers from risks. There are also risks for the ERP projects such as organizational factors, employee skills, software systems design issues, and technology integration factors. One of the most important risk factors is to redesign the business process to suit the best practice business process.
The main challenge in ERP system is acquiring the necessary skills. Insufficient training and re-skilling of the IT workplace in new ERP technology, insufficient internal expertise, failure to mix internal and external expertise effectively, and lack of business analysts are all the risks associated with the IT professionals. The risk factor is aggravated by the scarcity of ERP-trained systems developers and the high market demand for their skills. The investment in recruiting, re-skilling, and re-training IT professionals is very high.
Some other risks factors that are unique to ERP implementation are non-adherence to standardized specifications, data migration from legacy systems, lack of top management support, etc. The complete list is given in the following table:
|Risk Category||Risk Factors|
|Software systems design issues|
|User training and involvement|
|Technology planning and integration|
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