Risks of Using Computer-Based Procurement Every Complex

Risks of Using Computer-Based Procurement Every complex project requiring the collaborative effort of an organization involves the use of materials, goods, and services that are integrated within the overall project design. The procurement process used to obtain these vital resources is central to the successful accomplishment of project objectives, because every aspect of the management process, from sourcing supplies to shipping products to customers is contingent on procuring the most productive third-party partnerships.

The vendor selection process is used to aid project managers in the effective procurement of essential items and services, with a rigorous screening methodology used to identify the most competent and qualified shipping companies, manufacturers, distributors, and equipment suppliers. Another way project managers have refined the procurement process is through the implementation of computer-based tools, with advances in technology enabling researchers to identify a project's critical path through a complex series of algorithms, software programs, and other advanced analytical tools (Morris & Pinto, 2007, pg. 249).

Although the advantages of using the internet and other computer-based resources to develop precise predictive models that enhance procurement practices have been widely established, there are a number of risks and concerns which must be considered before a project's likelihood of success can be inextricably linked to their use.

By ranking these risk factors according to their potential impact on a project's ability to balance the triple constraint of scope, schedule, and budget, as well as their chances of occurring, one can objectively balance the merits of using computer-based procurement tools against the risks of this relatively novel innovation (Sollish & Semanik, 2011, pg. 7).

Most Likely Risks to Occur: Inadvertently Revealing Proprietary Data -- The advent of cloud computing has alleviated much of the traditional risks associated with data theft, piracy, and other content issues, but anytime computers are used to augment the procurement process there will be an enormous amount of data which is generated, exchanged, and stored.

This cycle will involve multiple connections with foreign networks, with sensitive data being encrypted and concealed for protection, but the threat of corporate espionage, targeted hacking activities, and other invasions of privacy are prevalent when computer-based procurement tools are utilized. During the design phase of a new line of shoes, for example, a single hacked upload of photos depicting proprietary information could be extremely advantageous to competitors, while immediately decreasing the new product's potential value on the market.

Fraud and Corruption in Procurement Process -- During a large and lengthy project there are literally thousands of minor purchases, transactions, and similar exchanges of information which are used to facilitate the project's progress. Computer-based procurement tools, while streamlining the process and adding the advantages of modernized interfaces, allow project team members with unprecedented opportunity to exploit systemic flaws in the pursuit of personal profit. By misallocating funds by exaggerating purchase orders, diverting supplies to partnering firms under the guise of the vendor selection process,.