Research On Risk Management During Implementation Of ERP Project Of HL Company

As a standardized management information system covering all aspects of enterprise activities,ERP(Enterprise Resource Planning)system integrates advanced management ideas and methods,and has been regarded as an essential tool for modern enterprises to enhance their comprehensive competitiveness.A successful ERP implementation project can usually help enterprises achieve internal resource sharing and business process optimization.At the same time,it can help enterprises gain more market competition advantages by reducing operating costs,improving management efficiency and ability,as well as improving service quality.However,ERP projects are usually accompanied by high risks in the implementation process.For the growing SMEs,these risks may bring great losses which are difficult to make up for.Therefore,what risk factors should be paid attention to and how to effectively manage and control these risks in the implementation of ERP projects in SMEs has become an important problem for these enterprises to think about before the implementation of ERP.This paper applies the implementation of ERP project of HL Company,a medium-sized enterprise in oilfield service industry,as the studying case,and combines project risk management theory to study the application methods and value of risk management in the process of ERP project implementation.Hopefully it can provide practical reference for similar enterprises when implementing ERP projects in the future,and help them to get ERP system launched successfully and running efficiently.This paper first reviews the theories of ERP,project management and risk management,and extensively consults the domestic and foreign literature related to ERP project risk management to get the relevant research results.Then it introduces the basic situation of HL Company,the characteristics of its industry,and the background,necessity analysis and risk management planning of its ERP project.After that,the risk factors affecting the implementation of HL Company's ERP project are identified,by using the method of brainstorming.There are four first-level risk factors and several second-level risk factors,within which the firstlevel risk factors include software risk,personnel risk,organization risk and project management risk.The risk factors are then assessed by qualitative and quantitative analysis.Qualitative analysis adopts Delphi Method;the risk factors are sorted according to their risk value in the risk matrix by the expert group,which is composed of senior managers of HL Company,members of ERP project team and external experts.Quantitative analysis adopts Analytic Hierarchy Process(AHP)to further rank the risk factors according to their weight values.By synthesizing the two assessment results,the risk rating of each risk factor is finally determined.Then according to the ranking result,targeted risk reaction measures are put forward for all the medium and high level risks.At last,this dissertation sets up three measures for project risk monitoring,including dynamic risk monitoring,regular project risk review meeting and risk monitoring work list.This paper puts forward a set of risk management solutions for HL Company's ERP implementation project,focusing on the five links of risk management theory: planning,identification,assessment,reaction and monitoring.From the current application situation of HL Company,this risk management system has realized its expected value well.However,since HL Company's ERP project is still in the process of implementation,the risk management system proposed in this dissertation still needs to be verified,and the author will continuing pay attention to it.