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Business and Managemet

In: Business and Management

Submitted By pingcindy
Words 8803
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The International Journal of Digital Accounting Research Vol. 1, No. 1, pp. 47-68 ISSN: 1577-8517

Risks and Controls in the Implementation of ERP Systems
Severin V. Grabski. Michigan State University, U.S.A. grabski@pilot.msu.edu Stewart A. Leech. The University of Melbourne, Australia saleech@unimelb.edu.au Bai Lu. Colonial Mutual Group, Australia blu@colonial.com.au
Abstract. The implementation of ERP systems has been problematic for many organizations. Given the many reports of substantial failures, the implementation of packaged ERP software and associated changes in business processes has proved not to be an easy task. As many organizations have discovered, the implementation of ERP systems can be a monumental disaster unless the process is handled carefully. The aim of this study is to identify the risks and controls used in ERP implementations, with the objective to understand the ways in which organizations can minimize the business risks involved. By controlling and minimizing the major business risks in the first instance, the scene can be set for the successful implementation of an ERP system. The study was motivated by the significance, for both the research and practice communities, of understanding the risks and controls critical for the successful implementation of ERP systems. Following the development of a model of risks and controls, a field study of an ERP system implementation project in an organization was conducted to provide a limited test of the model. The results from the field study provided support for risks and controls identified in the literature. The results also identified several controls not mentioned in the reviewed literature. The study lays the foundation for further research into the risk/control framework so important for the success of the implementations of ERP systems. Key Words: ERP Systems, Business Risks, Controls...

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