43. Inventory Control Package
• 1960s most organizations designed,
developed and implemented centralized
computing systems, mostly automating their
inventory control systems using inventory
control packages (IC).
44. Material Requirement Planning
• Material requirements planning (MRP)
systems were developed in the 1970s which
involved mainly planning the product or parts
requirements according to the master
production schedule.
45. Manufacturing Resource Planning II
• Following this route new software systems called
manufacturing resources planning (MRP II) were
introduced in the1980s with an emphasis on
optimizing manufacturing processes by synchronizing
the materials with production requirements, MRP II
included areas such as shop floor and distribution
management, project management, finance, human
resource and engineering
• included areas such as shop floor and distribution
management, project management, finance, human
resource and engineering
46. Enterprise Resource Planning
• ERP systems first appeared in the late 1980s and the beginning of
the 1990s with the power of enterprise-wide inter-functional
coordination and integration, ERP systems integrate business
processes ,including
• manufacturing,
• distribution,
• accounting,
• financial,
• human resource,
• management,
• project management,
• Inventory management,
• service and maintenance,
• and transportation.
47. Enterprise Resource Planning II
• During the 1990s ERP vendors added more
modules and functions as “add-ons” to the
core modules giving birth to the “extended
ERPs.”
• These ERP extensions include advanced
planning and scheduling (APS), e-business
solutions such as customer relationship
management (CRM) and supply chain
management (SCM)
49. Critical Success Factors, introduction
• ERP systems provides a wide range of benefits
and enhancements across different functional
areas of an organization.
• Inspite of these benefits, reports show that
about 75% of the ERP projects are classified as
failure!(Garg, 2010)
• This is mainly due to the amount of business
changes required for its adoption (business
process management)
50. Drivers of ERP Adoption
• Studies showed that there are three
categories for ERP drivers of adoption:
• Infrastructure (in terms of existing information systems
that support ERP implementation)
• Capacity (level of investment in hardware and software)
• Performance (type of strategies adopted by the
organization)
51. Critical success factors of ERP
implementation
• Inspite of the adoption of ERP in many small,
medium and large companies (with different
ratios), there must be a consideration for the
environment and country in which it is
implemented.
• Internal factors are not the only success factors
for ERP implementation
• A recent study showed that 88% of ERP market is
in developed countries compared by developing
countries (Amr, 2008)
53. Egypt case
• In 2012 a study was conducted in Egypt to
investigate which environmental and
organizational factors would lead to the
success ERP implementation in large
companies working in developing countries,
managers responses toward each of the
previous factors were as follows:
54. Egypt case continued
• 100% of managers agreed that the information
and communication technology (ICT) within a
country is a main factor for ERP successful
implementation
• Regional location and economic growth gained
large acceptance among mangers as major driver
for ERP success
• Government support and encouragement to use
such advanced systems (the Egyptian GVT initiated a
regulation that encourages organizations to implement ERP
systems) gained 96.2 % acceptance.
55. Internal success factors
• The factors that were most agreed upon were
IT maturity of an organization and business
size. This is obviously expected as ERP systems
are based mainly on improved IT systems and
large investment embraced by larger firms.
56. ERP Success Cases
• Bak Ambalaj story: a leading Turkish
company that manufactures printed and non
printed paper bags that are used for: hygiene,
food, magnetic tapes and beverage. The
exploitation of enterprise resource planning
permits them to make high quality products,
giving them the chance of growing quickly and
possibly even leading the market by means of
long term.
57. ERP Success Cases
• Jada Precession Plastics: Jada Precession Plastics Inc.
uses two diverse versions of ERP. The primary version
was established to assist them in lifting their capability
levels.
• It really helped them make the labor easier to carry on,
but they required more than that. After the attainment
of an updated Enterprise Resource Planning, the
outcomes were truly eye-catching for the entire staff
• That is because The new software had been
particularly designed for them, whilst the primary one
tried to solve Jada’s problems through packaged
solutions instead of offering custom made functions.
58. Conclusion
• ERP system have a direct impact on adding
value to organizations and enhancing its
competitive position, but its successful
implementation is contingent on its
surrounding environment whether internal or
external
• Context is the main player in any new system
implementation