Study On Formation Mechanism And Evaluation Of BPR Risk In ERP Project

As market competition intensifies, enterprise informationization has become an irresistible trend. Enterprise resource planning (ERP) has been enterprise management mode popularly in today's society. However, it is inevitable that the implementation of ERP projects is complex and high-risk because the investment of project is large and life cycle of the implementation is long. In the ERP project, Business Process Reengineering (BPR) is one of the most important activities, and the results will seriously affect the quality of ERP implementation. Previous studies showed that improper implementation of BPR has become an important source of risk in ERP project. Therefore, it is great significant to in-depth study BPR risks in ERP projects in order to improving the effect of the BPR implementation and reducing risk of ERP implementation.The BPR risk in ERP projects is the object of the study in this paper. First, the formation mechanism of BPR Risk in ERP Project is analysised based on the theoretical of asymmetric information, and then it is proposed that the inner and outer external information asymmetry situation is the root causes of BPR risk, and risk factors, risk events and risk loss of BPR is analysised respectively. Second, according to the mechanism of previous study, the evaluation index system of BPR risk in ERP projects is established, and the AHP-DEA evaluation model of BPR risk in ERP projects is established based on DEA model with input only or output only and AHP model with the theory of risk preference; Finally, in accordance with characteristics of BPR risk in ERP projects, the corresponding risk control measures is proposed aimed at "adverse selection" and "moral hazard" problem caused by the situation of related information asymmetry.In this paper, the BPR risk is studied scientifically and objectively. It is used to providing the basis on risk control strategy for the risk management policy makers. It is a very valuable study for reducing the impact to the ERP implementation caused by BPR risk and improving the success rate of ERP implementation.