CGEIT · Question #108
A large organization with branches across many countries is in the midst of an enterprise resource planning (ERP) transformation. The IT organization receives news that the branches in a country…
The correct answer is A. Update the ERP business case and re-evaluate the ROI. When critical branches are sold during an ERP transformation, the immediate next step is to update the ERP business case and re-evaluate its ROI.
Question
A large organization with branches across many countries is in the midst of an enterprise resource planning (ERP) transformation. The IT organization receives news that the branches in a country where the impact to the enterprise is to be greatest are being sold. What should be the NEXT step?
Options
- AUpdate the ERP business case and re-evaluate the ROI.
- BCancel the ERP transformation and re-allocate project funds.
- CAdjust the ERP implementation plan and budget.
- DContinue with the ERP migration according to plan.
How the community answered
(56 responses)- A66% (37)
- B9% (5)
- C20% (11)
- D5% (3)
Why each option
When critical branches are sold during an ERP transformation, the immediate next step is to update the ERP business case and re-evaluate its ROI.
The sale of high-impact branches fundamentally alters the scope, anticipated benefits, and cost-benefit analysis of the ERP transformation. The business case, including its projected ROI, must be re-evaluated immediately to determine if the project is still viable, justified, and delivers sufficient value under the new business circumstances before proceeding with any other adjustments.
Cancelling the transformation immediately without first re-evaluating the business case would be premature and could lead to abandoning a project that still holds significant value, albeit possibly reduced.
Adjusting the ERP implementation plan and budget is a subsequent, tactical step that should only occur *after* the business case and ROI have been re-evaluated and confirmed that the project still aligns with strategic objectives and delivers sufficient value.
Continuing with the ERP migration according to the original plan would ignore a significant business change that fundamentally impacts the project's justification, expected benefits, and overall strategic alignment.
Concept tested: Project re-justification due to business change
Topics
Community Discussion
No community discussion yet for this question.