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ERO system: implementation, audit and control risks

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par Borhen KHATIB
INSEEC - MSc Program in Audit and Control Management 2010
  

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3.2.2. Design phase

The factors of success in this phase are related to the clarification of structuring points. The purpose is to have a defined objects solution.

However the failure factors are the difficulty in finding «the right level of details» and miss some essential points.

3.2.2.1. Validate options and close open questions

As we saw during the previous phase in which we have identified questions, also the work of the design phase will generate new "opened points". The responses of all opened points will be mad during this phase. This will be the role of project manager.

The decisional process will be related to:

· Operational modes and target organization. Identify the differences or the similarities between existing organizational and change needed to prepare new areas.

· The character of data bases and their administration. This is typically the level of harmonization and centralization between bases.

· Specific needs, the decisions on this point are either accepts the cost of specific development and maintenance or to match capabilities.

· Integration mode of the ERP, either to accept a challenge and reduce functional scope or to agree with an important cost of development and maintenance interfaces.

All Decisions are mainly produced by the ERP team project which identify outstanding issues and take decisions. The project manager should be reactive and must be able to responds to unsolved points.

After solving different questions, team project resume decision and outstanding issues for the area studied. With this summary, they can react immediately on such of opened points and ensuring integration between the different areas.

This approach ensures the end of design decisions and start to structure their solutions, which are identified, quantified and validated by the steering bodies.

3.2.2.2. Define scope and structures

This is the main activity of ERP subproject. All preoccupations are around the definition of an organizational structure, study adequacy and integration between the ERP System and other applications.

For each domain / sub domain / process we will identify:

· Operating modes, which are defined by procedures

· Organizational structures; is the organization of work (who does what) and circulation of information.

· Characteristics of repositories.

This classification will be done during workshop by the team project.

The starting point is always running after a proposal from the repository of the ERP. After that participants can identify differences with their organizations.

The implementation of a functional scope guide allowed need two aspects:

- Complexity of interfaces between the ERP System and other information systems

- Impacts on integrate software package itself

3.2.2.3. Identify and address specific risk

It is important at this stage to identify specific functional mode of the company. These characteristics could lead to a gap in coverage between needs and capabilities of the ERP.

This identification is done during the study of adequacy between desired functional modes and possibilities of the ERP System. It focuses on a solution by seeking changes in the organization and removes discrepancy without specific development and without compromising the original goal.

? Avoid the specific development is the goal number one when we chose a package solution.

These extensions should always be carefully validated, because it reflects the choice of the company and extend existing operating capacity to evaluate and stay in the standard options of the product.

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