Inderscience Publishers

Risk management as a strategic issue for the implementation of ERP systems: a case study from the oil industry

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The introduction of complicated and expensive Enterprise Resource Planning Systems (ERP) in companies operating in the process industry has become a strategic issue. The success of Information Technology (IT) implementation projects is dependent upon technological issues (software and hardware), the design of new efficient processes and the utilisation of human resources that will participate in new processes using the new IT solution. Risk management can be an important component of strategy helping in the identification and control of project-related risks. The methodology presented in this paper proposes a structured risk management approach for the successful implementation of ERP systems. The application of the proposed methodology is demonstrated within a case study concerning a European company operating in the petroleum sector. The conclusion drawn by the study is that the risk management strategic approach is of significant importance when the best outcome from the implementation of an ERP project in industry needs to be obtained.

Keywords: risk management, strategy, ERP systems, SAP, case study, petroleum industry, process industries

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