Applied Information Technology Project Research Paper

Applied Information Technology Project - Research Paper Example The goal is for companies to minimize the potential for losses and maximize the use of limited resources for improvement. Risks are inherent and managing them will allow decision makers to provide sound strategies. Technological risks lead to a non?completion, under?performance the acquired product or service which likely is traced from supplier. Technological risks happen when suppliers fail to fulfill their promise of providing top notch product or service. Often suppliers encounter internal problems which include substandard technology, obsolete process or ineffective workforce. Companies often experience difficulty in shifting trajectories once a certain technology is used. This may create problems if the procurement takes place before competing technologies have been explored adequately. This risk should presumably be of particular relevance in procurement of products in the fluid phase (Utterback, 1994). Business Problem Statement This proposal explores on Hewlett-Packardâ€⠄¢s method of addressing supply chain issues using Procurement Risk Management (PRM). General Benefits Cost savings. The intention of developing a system such as PRM is to reduce cost of materials and other related costs. PRM is designed to provide flexible schemes that improve the planning and production processes. Moreover, PRM addresses pricing mechanisms that involve pricing and emphasizing value to the materials obtained from the suppliers. HP is involved in the production of materials to ensure that returns are reduced and quality is maintained. Supply availability. The level of supply needs to be maintained at levels that will sustain continuous business. The lack of supply is a big problem especially with firms that rely on such components. For technology manufacturers, memory chips are considered as the most volatile component in terms of supply. Most strategies involve signing long-term deals with suppliers including requirements such as marking clients as priority when su pply decreases. Cost prediction. Companies succeed because their cost forecasts are accurate hence cost planning is implemented. The proposed system aims to identify cost sources. Most important, unexpected costs are prevented and the results are met within the agreed budget. High Level Approaches Enterprise Risk Management (ERM) developed as a structured mechanism combining strategies, resources, technology, and knowledge to assess and manage the uncertainties that various enterprises face as value is being generated encounter (Hoffman, 2009). ERM facilitates effective management of risks that organizations encounter, and the management of potential opportunities entrenched in those risks. The main objectives of the Enterprise Risk Management approach can be summarized through these steps: measurable organizational goals have to be specified; organization has to determine the risks that can adversely affect the goals; methods need to be established to mitigate the risks (Francis an d Richards, 2007). Stebbing (1994) suggests some elements to be emphasized in creating quality manuals. These aspects include policy statement, authorities and responsibilities, organization, system element outlines, and list of procedures. To further ensure quality, the company has some lofty targets. By the time wherein the system has been deemed to be effective, the company will apply for an ISO certification. The recognition is concrete proof of the company’