Risks Identification & Analysis in Enterprise Resource Planning (ERP) systems in upstream steel industries

Subject Areas : Urban Transportation

Fatemeh Abbasi ¹ , Jalal haghighat Monfared ² , Jamshid Edalatian Shahriary ³

1 - PhD student, Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor, Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Assistant Professor, Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2022-07-01 Accepted : 2022-11-16 Published : 2023-02-20

Keywords: Risk identification, enterprise resource planning systems, Risk Evaluate, Upstream Steel Industries,

Abstract :

Need to create within organizational and inter-organizational integration in the supply chain environment and extensive changes in the field of technology and information systems have been the main factors in the formation of enterprise resource planning (ERP) systems. One of the factors for the success of the implementation of these systems and also the main purpose of this study is to correctly identify the risks in the three phases before, during and after the implementation of ERP systems in the study industry, then evaluate the risks obtained and it is appropriate to respond them. Literature reviewed and 52 factors were identified as failure factors of ERP projects. Then, with purposive sampling methodology were interviewed by six experts in the field of ERP systems, which adjusted the risk indicators and achieved 40 risk indicators. A questionnaire was used to collect data to analyze the risk values and data were analyzed by SPSS and Excel software. This paper examines a practical approach to using the risk matrix to assess the risks of ERP implementation in the upstream steel industry. This approach supports key project stakeholders such as the employer, contractor and consultant to meet their obligations and minimize the negative effects on ERP project performance in terms of cost, time and quality objectives . Finally, the risks were divided into three levels: Critical (unacceptable), High (significant) and Medium, and the strategy for dealing with them was described in three categories: Risk avoidance, Active acceptance and Transfer.