Risk Management in ERP Project in the Context of SMEs

This paper contributes to the discussion on Enterprise Resource Planning (ERP) implementations in the context of small and medium size enterprises (SMEs). Fewer than 30 % of ERP implementations have been successful, meaning the projects were completed on time, within budget, and with all required characteristics. The principal reason for failure has often been associated with the poor management of ERP implementation projects. Several standardised methods and techniques have been developed to help enterprises to better manage their ERP projects. The purpose of this paper is to identify and assess the main risks in the ERP projects through the case study of three manufacturing SMEs. By using company-specific risk analysis method (RAM), the critical risks of the ERP projects have been identified and assessed. Then, by using characteristics analysis method (CAM), the recommendations of how to divide the ERP projects into manageable sub projects have been given.