Analyzing the Risks in Supply Chain Information System Implementations

Organizations make considerable efforts when implementing Supply Chain Information systems (SCIS) to increase their competitiveness. This chapter attempts to identify the Risk Factors (RFs) in SCIS implementation and evaluate them. Sixteen risk factors were identified based on an extensive literature survey. A comprehensive framework is presented with three major phases to select an adequate SCIS. The risk assessment for SCIS implementation is then empirically investigated. The RFs are formulated as hierarchy structures and Fuzzy AHPs as a Multi Attribute Decision Making (MADM) tool applied to judge the viable candidates. Based on a fuzzy AHP approach, a revised risk matrix with a continuous scale is proposed to assess the RFs' classes. The result classifies the risk factors in different categories (Extreme, High, Medium and Low). The revised risk matrix with continuous scale for risk assessment in SCIS implementation is a novel approach.