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Managing the risks inherent in implementing enterprise software

Enterprise software discusses enterprise-wide business issues while a software application often solves the problems of the functional department. The software can be designed to deal with accounting, sales, inventory, or just any other aspect of business management. Some may include budgeting software for business finance, and some may include forecasting software that provides sales and demographic information to facilitate decision making. The complexity of enterprise software is one of the main sources of errors.

The steps of installing enterprise software systems are as follows: 1) defining the scope of the project, 2) identifying system functionality, 3) functional planning, 4) selecting software and hardware, 4) customizing, 5), and 6) user acceptance. Risk management of enterprise software detects potential risks in each phase of corporate software development.

The failure of many large IT projects is often a failure of the scope of the project. In the definition phase, the scope of the projects can not be defined as too broad or too narrow.

The critical duration of the use of enterprise software is the implementation period. The normal systems and procedures of the organization or adapt to the new software or change completely. During the implementation process, the software needs to be changed to meet the specific tones of the company. Since no two companies are identical, no enterprise software package will be fully compatible with any company. Implementation can take a few weeks for a small company, or it can work for a large organization for up to a year.

We strongly recommend working closely with software vendors at an early stage of system development. Software vendors have developed software knowledge and implementation experience in other organizations. Your own technical staff will understand how existing systems work better. As a continuation of implementation, the course should be done by class by department to ensure that employees are aware of policy changes and formatting changes that affect them and their work. Trainings serve as a feedback forum for troubleshooting and debugging.

Testing is the last phase of the system development cycle. There are a number of testing types (unit testing, system testing, user acceptance tests, etc.), and each type of test is unique in ensuring the quality of the enterprise software system. In the development phase, much less software fixes are fixed. It is estimated that ten times more errors are corrected after installation.

Enterprise software is a necessity of the information age and knowledge economy to create competitive advantages for organizations of any size. Risk management is one of the most important success factors for corporate software success.

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