This document discusses the tangible and intangible benefits of an ERP system, including reduced costs and improved financial management and customer service. It also outlines the main risks of an ERP implementation project, such as people issues, process risks, technological risks, and implementation risks. Finally, it provides recommendations for mitigating risks, including taking a phased approach and providing sufficient training, testing, and IT support.

2. Session 2
Tangible and Intangible Benefits of an ERP
Risks of ERP
Risk Mitigation
Technologies related to ERP

3. Tangible Benefits of an ERP
Reduced Inventory costs
Reduced Manpower costs
Reduced Material costs
Improved Sales and Customer service
Efficient Financial Management

4. Intangible Benefits of an ERP
Accounting
Product and Process Design
Production and Material Management
Sales
MIS Function

5. Risks of ERP
People Issues
Process Risks
Technological Risks
Implementation Risks
Operation and Maintenance issues

6. People Issues
Change management
Internal staff adequacy
Project team
Training
Employee re-location and re-training
Staffing
Top management support
Consultants

7. Process Risks
Program Management
Business Process Reengineering
Stage Transition
Benefit Realization

8. Technological Risks
Software Functionality
Technological Obsolescence
Application Portfolio Management
Enhancement/Upgrades

9. Implementation Risks
Project Size
Length Implementation Time
High Initial Investment
Unreasonable Deadlines
Insufficient Funding
Interface
Organizational Politics
Scope Creep
Unexpected Gaps

10. Risk Mitigation
Phased-out approach to migration
Sufficient Training
Legacy System planning
Thorough testing
Provide plenty of IT support
Develop contingency plan

11. Technologies related to ERP
Business Process Re-engineering (BPR)
Data Warehousing
Data Mining
On-line Analytical Processing (OLAP)
Product Life cycle Management (PLM)
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
ERP Security