Question

please answer it with your own info not old or repost an old one

Accounting Information Systems:

List at least five threats in the process of ERP implementation (any of these steps: ERP product brand selection, module design, installation, testing, and daily operation), and propose at least 10 controls to mitigate the threats in your list.

a.) For each threat, there should be at least one proposed control.

b.) Elaborate on both the threats and controls.

Answer 1

a.) Some of the threats that an organisation face in the process of ERP implementation are:

1. Selection of the wrong vendor- To overcome this threat organisation can use bechmarking, point score analysis, comparing with aquisition standards etc as tools to select the correct vendor which can be a powerful control check
2. Bad coded program- To overcome this threat the coded program must be subjected to stress testing, performance testing by the programmers
3. Modules not designed as per business needs- To overcome this threeat the module must be subjected to an on-going review with both the end users and upper management and obtain their approval of its usage in achieving the busines needs
4. System Installation failures- To overcome this threat we need to ensure that the system is installed at the right location and is installed as per Operations manual, training of end users,further testing of system post installation by vendor needs to be done, these controls will help n overcoming this threat.
5. ERP Maintenance issues-To overcome this threat we need to have controls like scheduled maintenance, perfective maintenance, adaptive maintenance, corrective maintenance carried out at regular intervals

b.) Elaboration on both the threat and controls:

1. While selecting the vendor from whom the hardware, software or both needs to be aquired, we may make a mistake of selecting a vendor who may not supply the hardware, software etc of desired quality or desired rate that meets the requirements of the organisation. This is one of the major threats in implementing ERP. To overcome this threat- Organisation can use controls like Benchmarking where the vendors hardware, software etc is compared with a benchmarked set of performance and if the vendors supply crosses the benchmark then it is selected or rejected, similar control is point scoring analysis where vendors products are given points based on objective needs and vendor with the highest point is selected.
2. Generally while coding program for ERP there may be chances that the coded program may have logiccal syntax errors, or may be a hard coded program which does not pass strenous volume. To overcome this threat programmers need to test program like stress testing where the program is subjected to maximum volume in a given day and its resources are extended to see if the coded program can handle stress volume and function effectively, similarly Performance testing where the programmer tests that the coded program performs only the tasks it is performed to and does not perform taks it is not coded for
3. While designing a module, that module must me meeting the organisations objectives and needs, otherwise the module will not be useful. There are chances that th module does not meet the organisations goals and objectives or there are error in module designing. To overcome this we have controls like architectural designing of the module where the couple and cohesion are used, database design control where the module is properly stored in logical and physical media and also the modues are tested with end users and managers who may point out if the module is functioning as per business needs or not
4. While installing a system chances are there that the installation maynot be successful because of reasons like installation of system at places with high temperature, humidity, dust or not installing in the right sequence as per the manual, or not checking the power source. To overcome this threat we need t first select the correct place of installation where the external conditions are perfect, we need to ensure that the installation takes place only as per the steps given in the operations manual, the users are well trained to handle the system and services by vendor is obtained in installing and test running the newly installed ERP.
5. After Implementation of ERP there maybe chances that suddenly ERP may not function properly, or new bugs not previously tested may come to the fore, or there is additional requirements which ahs creeped up with regards to the ERP. To overcome this threat the ERP must be subjected to Maintenance like Scheduled maintenance where the ERP is subjected to Maintenance at regular pre decided intervals, Corrective maintenance takes place when new bugs are discovered, perfective maintenace takes place to improve the functionality of the ERP etc.