Risks Assessment using Fuzzy Petri Nets for ERP Extension in Small and Medium Enterprises

Risks Assessment using Fuzzy Petri Nets for ERP Extension in Small and Medium Enterprises

S. Vijayakumar Bharathi (Symbiosis International University (SIU), India), Dhanya Pramod (Symbiosis International University (SIU), India) and Raman Ramakrishnan (Symbiosis International University (SIU), India)
DOI: 10.4018/978-1-7998-1760-4.ch031

Abstract

In this paper a Fuzzy Petri Net model (FPN) is developed and tested to assess the risks involved during Enterprise Resource Planning (ERP) adoption in Small and Medium Enterprises (SMEs). This model pertains only to the risks and risk factors identified in the extension phase of ERP adoption in SMEs. In other words, this work studied only the risk perception relating to extending the ERP integration between the supply chain partners. This paper addresses the problems of risk identification and assessment during the extension phase. There are two motives for this research namely, one to define the ERP extension risks and two to assess and quantify the risks in a simple yet robust model. The uniqueness of this paper is three dimensional because in addition to presenting and quantifying the risk values in FPN, the risks are categorized and further graded for decision support to SME stakeholders. Realignment and standardization of SMEs business process, lack of support from larger enterprises and incompatibility issues are perceived to be most critical risk factors.
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2. Literature Review

Fuzzy Petri Nets (FPNs) have widespread application in identifying and analyzing parallel and concurrent behaviour of many physical and societal arrangements. A host of control problems has used FPN to model various issues which include control of CNC-milling machines (Hanna et al., 1996), control of nuclear instrumentation for safety (Son and Seong, 2000), autonomous vehicle control (Parhi and Mohanta, 2011, Rigatos 2003, Wai and Liu 2009, Zouaghi et al., 2014), railway traffic control (Fay 2000, Cheng and Yang 2009), control of excavation robot (Wang 2004) etc.

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