Risk Assessment in Enterprise Resource Planning (ERP) systems implementation in upstream steel industries

Subject Areas : business management

Fatemeh Abbasi ¹ , Jalal Haghighat Monfared ² , Jamshid Edalatian Shahryari ³

1 - Department of Industrial management, Central Tehran branch, Islamic Azad University, Tehran, Iran
2 - Department of Industrial management, Central Tehran branch, Islamic Azad University, Tehran, Iran
3 - Department of Industrial management, Central Tehran branch, Islamic Azad University, Tehran, Iran

Received: 2022-11-12 Accepted : 2023-01-17 Published : 2023-09-23

Keywords: " Enterprise Resource Planning systems", "Risk Identification", "Risk Analysis", "Risk Assessment", "Upstream Steel Industries",

Abstract :

Risks and uncertainty can potentially have serious consequences for enterprise resource planning (ERP) implementation. This paper examines a practical approach to ERP implementation risk assessment in upstream steel industries that supports important project stakeholders such as the customer, contractor or developer, consultant and supplier to fulfill their obligations and the negative effects on ERP project performance in relation to the objectives cost, time and quality are minimize. In this study, after registering the risks and their initial qualitative analysis using the risk matrix, in order to analyze the data more accurately and reduce the volume of variables, using exploratory factor analysis in SPSS software, the risks were categorized into 7 groups, then using confirmatory factor analysis in AMOS software was used to check the validity of the obtained model, and after removing 4 risks, the validity of the model was found to be satisfactory. For the quantitative analysis of the model using the FMEA method, it was shown that the risks related to the project management factor have the highest score, i.e. the highest risk, and the factor related to the internal people of the organization has the lowest risk score with a very small difference from the process factor.