a) Factors to consider in deciding between in-house development or buying an existing ERP system, with advice:

Factors:

1. Cost Implications: In-house development involves high upfront costs for developers and time, while buying (e.g., SAP or Oracle) has licensing fees but lower customization expenses. Per cost-benefit analysis (topic 1.1), buying is often cheaper for Ghanaian banks post-recapitalization (BoG Notice BG/GOV/SEC/2023/05).
2. Time to Implementation: In-house can take years, delaying benefits, whereas off-the-shelf systems deploy faster, crucial in volatile environments like post-DDEP Ghana.
3. Customization and Fit: In-house allows tailored features for specific needs (e.g., integrating BoG reporting under Act 930), but buying requires adaptations, risking gaps.
4. Expertise and Resources: Banks may lack internal IT skills for in-house, as seen in collapses like UT Bank; buying includes vendor support, compliant with BoG’s outsourcing rules (Act 987).
5. Scalability and Maintenance: Bought systems offer scalable updates; in-house demands ongoing internal maintenance, increasing operational risks under Basel III.

Advice: Management should opt for buying an existing system, customized as needed, due to faster ROI and compliance ease, as successfully done by GCB Bank with Temenos ERP, avoiding the pitfalls of in-house failures in resource-strapped post-cleanup scenarios.

b) Key issues affecting success of IT projects like ERP and measures to minimize:

Issues:

1. Scope Creep and Poor Planning: Requirements changing mid-project, leading to delays and overruns.
2. Resistance to Change: Staff reluctance, impacting adoption, as in digital shifts post-COVID.
3. Integration Challenges: Compatibility with legacy systems, causing data silos.
4. Budget Overruns: Unforeseen costs, violating cost-benefit principles.
5. Security and Compliance Risks: Breaches during implementation, per BoG’s 2020 Cyber Directive.

Measures:

1. Adopt Agile Methodology: Iterative planning to manage scope, with regular stakeholder reviews, as Ecobank Ghana uses for projects.
2. Change Management Training: Conduct workshops per BoG’s governance directive to build buy-in.
3. Thorough Vendor Due Diligence: Ensure integration testing, compliant with Act 987.
4. Phased Budgeting with Contingencies: Monitor via dashboards, aligning with Basel standards.
5. Incorporate Security-by-Design: Embed audits from start, minimizing risks as Stanbic Bank does.