Applying PRINCE2 project management disciplines to address key risks in ERP System Implementation Projects

The successful implementation of an Enterprise Resource Planning (ERP) System can help an organisation to redefine its business processes and enhance its competitive advantage. An ERP System Implementation is a transformation project, which changes the way an organisation thinks and acts about its business. An ERP System implementation is also a complex endeavour, and as such, it requires rigorous risk management. The understanding and management of risks relevant to ERP System Implementation Projects are critical in order to ensure that the project delivers on its objectives within the specified budget and timelines, and eventually realises the envisaged business benefits.The purpose of this study is to discuss how key risks relevant to ERP System Implementation Projects could be addressed by applying project management disciplines derived from the PRINCE2 (PRojects IN Controlled Environment) project management methodology. This methodology was developed by the Office of Government Commerce in the United Kingdom. This study also provides a framework that could be applied at the outset and during an ERP System Implementation Project by business management, to understand the risks (“what could go wrong?”) and project management disciplines that should be applied to address these risks (“what must go right?”).This framework was derived by:• Identifying key risks relevant to ERP System Implementation Projects;• Mapping these key risks onto SAP Implementation phases to highlight where these risks could materialise in the SAP Implementation process;• Then mapping these key risks across PRINCE2 project management processes and SAP Implementation phases by creating the SAP Implementation Key Risks Map; and finally• Providing a detailed description of how to apply PRINCE2 project management disciplines to address each risk in the SAP Implementation Key Risks Map.