Risks in ERP projects implementation : How communication and business processes re-engineering risks effect ERP projects

Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Risk Analysis and ManagementEnterprise Resource Planning (ERP) systems have been regarded as one of the most important information technology developments in the past decades. While ERP systems provide the potential to bring substantial benefits, their implementations are characterized by large capital outlay, long duration, and high might be a solution to ensure the success of ERP system implementations in organizations. The overall objective of this research is to to provide detailed analysis and impacts of business processes re-engineering and communication risks on ERP projects. At the begging, the research describes ERP systems in conjunction with the nature of Information Technology projects. Research identifies the communication and business processes re-engineering risks in ERP implementation projects and analyzes the causes. Accordingly, a conceptual research framework is presented, and the procedures and research methods are outlined. Secondly, quantitative data is provided based on twenty-one ERP projects implemented in North America. Data accompanied by based analytical statements and conclusions. Thirdly, an approach is developed based on fault tree analysis to decompose ERP systems failure and assess the relationships between ERP project failure and Communication and Business processes re-engineering risks. The principles and processes of this approach and related fault tree analysis and design methods are presented. Fourthly, certain conclusions and practical strategies are proposed. The current research does not only contribute to the body of knowledge of information system risk management, but also can be used as an effective tool for practitioners to actively analyze, assess, and manage the risks of ERP system implementations