Risk management while erp integration

Enterprise resource planning (ERP) is a software solution designed to deal with the day-to-day management of business activities relating to all assets and risks. And these are developed specifically for a particular size or scale of the organization. But regardless of their characteristics, these are prone to certain risks.

It’s because there is a shift in the project and resource management in the business. Also, there are uncertainties involved in the integration of ERPs. Hence, there are chances that the risk management offered in an ERP system may have opposite effects.

Here are some of the best measures that you can take to manage such risks during ERP integration:

1. Avoiding Resource Mismanagement

One major issue when businesses deal with physical resources is that managing many resources becomes tedious. And if it is not coupled with a proper data management and reporting system, then the resource controlling process becomes more complex. Automated data reporting and analysis solutions are available in ERP systems like NetSuite ERP Integration.

They can reduce the risks involved with resource planning errors and help mitigate resource mismanagement. ERPs are designed to remind business teams when they are low on a necessary resource and then eliminate the chance of data entry involved in the whole process.

2. Simple and Clear Business Strategy

When the business objectives outlined for a specific ERP system are unclear, some issues are faced by the organization regarding risk assessment and mitigation. This is why a clear and straightforward business strategy should be addressed to work with ERP solutions for fruitful results.

All resources, including the workforce and stakeholders, should clearly understand the business objectives and how the ERP system will be integrated. Teams at all levels can focus on their tasks if leadership and project management roles are simplified.

3. ERP Customization

ERP software solutions provide endless possibilities regarding system customization to fit a particular business. If you have an organization planning to integrate ERP software, you might require tools that can be customized. But while deciding on such customizations, you must remember that such decisions can increase the time and cost required for the project to finish.

If your business is not complex and your organizational workflow is relatively simple, then you should avoid the customization in ERP systems altogether. And if you go for any modifications at all, then they should be limited to necessity-based customizations.

4. Operational Anomalies

When working with ERP systems, operational anomalies need to be addressed as well. These are associated with small activities in the business. Often these tiny mistakes cause issues in the later operational phases of any organization.

So, detecting such anomalies is very much necessary for your business. Choosing a perfect ERP system that can work for you to detect such anomalies can mitigate the further risks involved in it.

5. Data Migration

While implementing any ERP solution, data migration becomes a vital component that should be handled delicately. Also, one crucial thing that should be kept in mind is that the data transferred to the new software solution should be clean and reliable because reliable data will provide better results in ERP solutions than the ones without significant clarity.

Also, data migration is bound to happen in integrating ERP solutions. Hence, your business should be ready for this process when a decision to implement an ERP system is made. A proper data migration strategy may be the answer to such requirements. Also, it can save both times as well as effort.

6. Management of Organizational change

We must acknowledge the fact that more than technical issues, people and organizational changes are the issues that elevate the risks involved in ERPs and the management of resources. Because at the base level, employees are the ones that interact with the ERP software. This is to improve the productivity of the organization.

So, while planning and implementing a new ERP system, you must prioritize the workforce in the business. It should be done along with all the technical specifications of the software solution. With proper planning, addressing these changes in the system and the workforce can mitigate the risks involved with quality issues and implementation delays.


ERP systems like NetSuite ERP Integration are designed to manage risks. Also, they provide better growth opportunities for your business. These customizable ERP systems are easy to deliver and can be used for specific requirements of your particular workflow. But there are some unavoidable risks involved while integrating the ERP system with business.

Choosing an ERP system to help mitigate such risks is very important. And in this article, we have discussed some of the critical measures you can take to manage the risks associated with integrating the ERP system.