Abstract

In recent times, service establishments have invested considerable resources in the implementation of Enterprise Resource. Enterprise resource planning (ERP) systems are highly complex information systems. Many ERP implementations have been classified as failures because they did not believe in the importance of the key success factors of achieving a competitive advantage. This paper has the objective of getting insight into the major Critical Success Factors (CSFs) and limitations of the ERP systems, particularly in the sector of hospitality industry, through the five-star hotels located in Egypt. A self- administered questionnaire was distributed to the directors of information technology in 140 five- star hotels. The survey instrument incorporated three sections; the first depicted demographics of the respondents, the second investigating the most critical success factors; and the third included open questions to explore the ERP limitations. The findings revealed that “Clear understanding of strategic goals” was the lowest perceived factor. While, others such as "Appropriate ERP consultants, avoidance of software changes, confirmation of finalized solutions, extensive employees’ training/education and involvement of project team members” were the highly perceived critical success factors of implementing ERP system in Egyptian hotels. There is no ERP that could cover all the hotel processes. This paper fulfils an identified need to study the most CSFs of implementing ERP system in Egyptian Hotel enterprises for managing the introduction and implementation of an ERP system with acceptable probability of success. Egyptian hotel managers can benefit from a deeper understanding of the issues related to those major CSFs. This study is considered a primary stride in understanding the ERP systems in Egyptian hotels. Key words: Enterprise resource planning, ERP systems, critical success factors (CSFs), hotels, Egypt.

Highlights

  • The rapid development of information technology and the emergence of the internet have created a demanding market competition (Chang et al, 2008)

  • No empirical study has been found in Egypt context; it is worthwhile to build a case for exploring the most important success factors that may influence the introduction or implementation process of an Enterprise Resource Planning (ERP) system in the Egyptian hotels through this paper. This assures that this research aims to contribute a better understanding of the present situation of ERP systems in Egyptian hotels and all Critical Success Factors (CSFs) may be encountering in implementing those systems

  • When respondents were asked to identify their years of work experience in the hospitality industry, it was found that 70 % were above 7 years, and 30% were between 5 and 7 years

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Summary

Introduction

The rapid development of information technology and the emergence of the internet have created a demanding market competition (Chang et al, 2008) In order to achieve the previous targets, and maintain competitive advantage, companies have been introducing Enterprise Resource Planning systems (ERP) (AlMashari, 2003; Umble et al, 2003). The implementation of these systems is a difficult and high cost scheme that brings great demands on business time and resources (Ibid)

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