Enterprise Resource Planning Research Paper

Abstract

Technology plays a vital role especially in the ever changing business environment that we are living in. Organisations need to integrate information technology for successful business operations and as such, many organisations are implementing enterprise resource planning systems.

There are many sources of information that have been composed pertaining to the implementation of enterprise resource planning. In this study, we prolong existing research on enterprise resource planning by integrating it with enterprise risk management for effective risk management, determining the risks as well as the controls to mitigate them as well as incorporate enterprise resource planning with internal auditing activities and elaborate on the role

It is essential due to its leading role in risk management. Risk identification is a procedure used to determine risks that could possibly prevent the enterprise resource planning program from achieving its objectives. The purpose of risk identification is to identify risk early and on a continuous basis. This is imperative as events that can negatively influence the achievement of enterprise resource planning projects may be able to be mitigated before they jeopardise the company. Risk identification is a very challenging process for management because there are various ways and method used to identify risk (Baccarin, Love and Salm, 2004 ).

The success or failure of an enterprise resource planning system is determined by how the risk that might affect the implementation of it is identified (Wallace, Keil and Rai, 2004). This is very challenging because different people have different opinions and different factors need to be taken into consideration when identifying risk. Some of these factors are technology, finance and competition. It is essential for risk to be identified earlier than later to ensure that it is managed effectively throughout the enterprise resource planning system project. (Aloini, Dulmin and Mininno, 2007:

The reengineered processes and structure needs to be decided upon before the category can be determined. The outcome control is what is to be expected and is the difference between what is planned and what the actual reengineered processes appears to be. Reengineering can also take the form of a behavioural control. Management are evaluated on behaviour. If a new process is introduced, the way in which management behaves influences the compliance to the new procedures as they set the standard. Grabski and Leech (2007) further explained that business process reengineering may be a clan control. This is due to employees being dependent on each other and sharing values to achieve certain objectives regarding the reengineering project. Consultants involved can be outcome and clan controls. They are usually employed to undertake a certain task the completion of which is determined objectively. Also, consultants have the necessary skills or specific approach to solve a problem within the organisation. They may also have a specific set of technical abilities which is required to implement enterprise resource planning software. The reengineering can be in the form of the distribution of values, goals and objectives from consultants to the people involved in the