Proactive ERP Risk Management:

Navigating Technical, Operational, and Organizational Change Management

Andy Pratico & Brett Austin    January 10, 2024

When organizations launch a new ERP system, it's crucial to prepare for the potential pitfalls. Let’s take a stroll through the subtleties of ERP risk assessment, tackling technical, operational, and organizational aspects to lay the groundwork for a proactive risk management strategy, shall we?


Scrutinize technical risks by sizing up how well the ERP solution plays with existing systems and potential 3rd-party apps. Ferret out potential snags in integration that might rear their heads during the project, from data migration hiccups like quality and format disparities to foreseeing potential system downtime. Always plan contingencies to keep disruptions to critical business processes on a tight leash.


Tackle organizational risks by acknowledging the human factor. Expect some resistance to change and deploy effective change management strategies to enable a smooth transition. Take stock of internal resources available for the implementation journey, ensuring the organization has the right mix of manpower, skills, and expertise.


Wrap it up with some proactive risk mitigation strategies, highlighting the importance of a risk response plan that's not buried in fine print. Identify specific strategies and lay down clear rules for risk management. Keep an eye on out of tolerance KPIs, regularly giving ERP risk assessments a tune-up to stay on top of changing circumstances. Keep the communication channels wide open with stakeholders, giving them the lowdown on identified risks, mitigation tactics, as the journey's progress.


In a nutshell, strategizing ERP risk management proactively involves technical, operational, and organizational realms. By tackling potential roadblocks head-on and rolling out comprehensive risk mitigation strategies, organizations will negotiate any ERP implementation surprize,  ensuring a safe and successful deployment.

Andy Pratico

Too many companies purchase ERPs and never get the benefits they expected when they bought. I try to educate manufacturers on how to uncover the truth about ERP systems, before you put pen to paper. If you know the truth about ERP systems, you can easily make their own informed decision.
The trick is how to navigate throughout the thick marketing obstacles and get to the see the true core. 

Brett Austin

25+ years of experience in simplifying complexity and uncovering the truth to successful Enterprise Software Solutions for: Manufacturing, Distribution and Highly Regulated industry clients. Created and maintained hundreds of HAPPY customers who have gone "Live" on their enterprise investment on-time, on-budget, and on-value. Provides a unique value in simplifying and reducing the risk of the complex and biased, legacy software evaluation process. 

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