- Migration is inevitable. Major ERP vendors like Oracle and SAP are strategically shifting support away from on-premises solutions toward cloud offerings, making migration an inevitability for organizations that have yet to adopt cloud solutions.
- Services are too critical to be interrupted. Because of the critical infrastructure managed by utilities organizations, a major change to an important system with many integrations into work processes (like an ERP) must have robust contingencies in place to ensure little to no disruption to critical services.
- Regulations must be accounted for. The utilities sector also operates under strict regulatory frameworks that vary by jurisdiction, many of which have standards for security and usage of cloud platforms that would be novel to an organization that does not make use of cloud technology. These requirements must be understood and accounted for to avoid exposure to penalties.
Our Advice
Critical Insight
- When done right, risk prevention accelerates rather than impedes progress. Understanding risk tolerance and control measures enables confident, fast-paced execution. Proactive risk management eliminates second-guessing by embedding safeguards directly into your migration process.
- Identify risk across every layer, not just every step. Bring together leaders who understand compliance, legacy systems, scaling needs, and frontline operations. Map risks by looking across business, technical, and regulatory domains.
- Use KRIs to catch risk early before it cascades. Key risk indicators give you early warning signs when risk conditions shift. Tracking them means fewer surprises and faster mitigation.
Impact and Result
- Update your taxonomy. Expand upon your existing enterprise risk taxonomy or use our suggested template purpose built for ERP migration. This framework enables your IT, security, and business leaders to use a common language for risk identification and create a comprehensive overview of the scenarios that lead to undesirable outcomes.
- Identify risk sources and assess severity. Focus on the drivers of risk within the ERP migration context including compliance obligations, legacy and OT integration needs, and the evolution of recovery and operational resilience needs. These will lead you to the risk sources that require coverage and planning to protect your data and operations throughout the migration.
- Establish ownership, treatment, and monitoring practices. Reduce risk severity by assigning ownership to domain knowledgeable personnel and assessing the most effective treatment options. Have an established cadence for reviewing meaningful risk indicators to ensure you are always controlling risk sources as they evolve, not reacting to them.