Arab Academy for Science and Technology & Maritime Transport

201 Pages·2016·3.87 MB·English

by  George Wanas

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Arab Academy for Science and Technology
& Maritime Transport
College of Computing & Information Technology
Decreasing ERP Implementation Failure in Egypt
A Thesis Submitted to the College of Computing & Information Technology in Partial Fulfillment
of the Requirements for the award of degree of
MASTER of Science in Information System
Submitted By
George Sharmokh Wanas
Egypt
Supervised by

Prof Dr. Ali H. El-Bastawissy Dr. Mona Ahmed Kadry

Faculty of Computer Science Arab Academy for Science, Technology &
MSA University Maritime Transport

Cairo, Egypt Cairo, Egypt
[email protected] [email protected]

June 2016
Cairo
I
Declaration

I certify that this work has not been accepted in substance for any
academic degree and is not being concurrently submitted in candidature
For any other degrees

Any portions of this thesis for which I am indebted to other sources are
mentioned and explicit references are given.

Student name: George Sharmokh Wanas

Signature: George Sharmokh Wanas

II
Declaration
We certify that we have read the present work and that in our opinion it
is fully adequate in scope and quality as a dissertation towards the partial
fulfillment of the Master degree requirements in
……………………………………………….. from the Arab Academy for
Science and Technology and Maritime Transport.
Supervisors:
Name:

Position:

Signature

Name:

Position:

Signature

Examiners:
Name:

Position:

Signature

Name:

Position

Signature

III
Acknowledgement
First and foremost I would like to thank Allah the Almighty for blessing me
with the ability and opportunity to reach my goal.

I would like to thank my advisor Prof Dr. Ali H. El-Bastawissy for his
guidance and patience. Without his insights, feedbacks this thesis would not
have been a success. I would also like to express my thanks to Dr. Mona
Ahmed Kadry for his support and valuable advices and encouragement.

I would like to owe my deepest gratitude to my parents, wife, and children for
their inseparable support and prayers, whose involvement triggered and
nourished my intellectual maturity.

Finally I would to deeply thank my friends for their help and support
throughout my graduate studies. They have shown me the true friendship
which I truly appreciate.

IV
Abstract

The main purpose of this research is to define a scientific methodology that
helps increasing the success rate of ERP implementation projects in Egypt.
This is achieved through defining main failures and failure factors related to
ERP implementations in the Egyptian Organizations. ERP implementation
projects in developing countries like Egypt are faced with high failure rates.
Any mistakes made during the ERP implementation process can affect the
project success. Our model (which builds upon risk management concepts)
aims to organize and guide planning activities for each stage in the ERP
implementation project. The ERP project is then divided into three stages;
Pre, during and post implementation. Each stage is analyzed to define its main
characteristics and its different failures and failure factors. The methodology
then allow for assessment and evaluation of the defined failures and failure
factors providing a quantitative measure for each risk of failure. The
methodology allows for flexible analysis and evaluation through possible
revision of work, reanalyze, and reevaluation of the end of each stage to
assure full coverage of all aspects and all impacts of a failure.
Our model provides the following:
§ Analysis and evaluation of potential failures for organization(s) under
study.
§ A quantitative tool to prioritize potential failures.
§ Interpret the quantitative results of the defined potential failures into a
mathematical equation that defines organization readiness for ERP
implementation.
§ Guide the action plan development and assessment to assure higher
success rates for the ERP projects.

V
Published Work

The work in this thesis is published in one paper as follow:
1. George Sharmokh Wanas, Ali H. El-Bastawissy, and Mona Ahmed
Kadry “Decreasing ERP Implementation Failure in Egypt “The 25th
International Conference on Computer Theory and Applications
(ICCTA 2015) .

VI
TABLE OF CONTENTS
Dedication ……….…………………………………………………… II
Acknowledegment ………..…………………………………………...III
Abstract ………..…………………………………………………… IV
Published Work ……….………………………………………….........V
List of Tables …………………………………………….…………….IX
List of Figures…………………………………………….…………… X
List of Abbreviations …………………………………….……………XII
Chapter 1 Research problem and methodology......................19
1.1. Introduction..............................................................................19
.1.2 Motivation................................................................................19
1.2.1. ERP implementation challenges in developing countries....................20
1.3. Problem Statement....................................................................21
1.4. Research objectives...................................................................21
1.5. Research methodology..............................................................21
1.6. Contribution..............................................................................22
1.7. Thesis Organization..................................................................22
Chapter 2 ERP Information Systems.......................................24
2.1. ERP Systems.............................................................................24
2.2. ERP system components and functions.....................................26
2.3. Why ERP systems.....................................................................27
2.4. Enterprise Applications.............................................................28
2.5. ERP Industrial products............................................................30
SAP R/3 and B1.................................................................................30
Oracle E-Business Suite Financials and PeopleSoft Enterprise..........30
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LN/Baan.............................................................................................30
Microsoft Dynamics NAV and AX 2009...........................................31
JD Edwards EnterpriseOne................................................................31
2.6. ERP implementation stages.......................................................31
2.7. Failures & Risks & ERP Evaluation..........................................32
Risk 32
Failure................................................................................................32
ERP evaluation...................................................................................33
2.8. ERP Failure rate........................................................................33
Chapter 3 Related Work............................................................34
3.1. ERP implementation failure Literatures....................................34
3.2. Challenges of ERP implementation...........................................34
3.3. IS / ERP measurement approaches............................................36
3.3.1. “Updated IS Success” Model..............................................................36
3.3.2. The Revised Model.............................................................................37
3.3.3. The extended ERP Systems Success measurement model...................38
3.3.4. Adopted Enterprise System Experience Cycle....................................38
3.3.5. Ex-ante evaluation of ERP software....................................................39
3.3.6. Task-Technology Fit (TTF) construct as an indicator of ERP success.40
3.3.7. Revised IS Success model by Chien and Tsaur, (2007).......................41
3.3.8. ERP Success model by Chung, Miros ław and Young (2008)..............42
3.3.9. A conceptual model by Kaiser and Frederik (2010)............................42
3.3.10. Comparison and area of Application of the Models.............................43
3.4. Risk assessment tools................................................................47
3.4.1. Fault Tree Analysis (FTA)..................................................................47
3.4.2. Hazard Analysis and Critical Control Points (HACCP).......................47
3.4.3. Hazard Operability Analysis (HAZOP)..............................................48
3.4.4. Preliminary Hazard Analysis (PHA)...................................................48
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3.4.5. Failure Mode Effects Analysis (FMEA)..............................................49
3.5. Risk assessment tools comparison.............................................49
3.6. Literature review conclusion.....................................................52
Chapter 4 A Multi Stages Assessment Model (MSAM)..........53
4.1. Various failure factors in Egypt................................................53
4.1.1. ERP failure factors identification in Egypt..........................................53
4.1.2. Questionnaire content.........................................................................54
4.1.3. Questionnaire Variables......................................................................54
4.1.4. Questionnaire analysis........................................................................57
4.1.5. Analysis tool......................................................................................58
4.1.6. Pareto Chart Ranking..........................................................................58
4.1.7. Most significant factors in every ERP Implementation stage...............62
4.2. Multi Stages Assessment Model “MSAM”...............................63
4.2.1. Pre ERP implementation stage:...........................................................65
4.2.2. During ERP implementation stage:.....................................................66
4.2.3. Post ERP implementation stage:.........................................................67
4.2.4. Preparation and assessment part:.........................................................70
4.2.5. Risk Analysis & Evaluation................................................................70
4.2.6. Organization readiness measurement for ERP Implementation...........76
4.2.7. Stage readiness measurement for ERP Implementation.......................76
4.2.8. Assign or modify Recommendations..................................................77
4.2.9. Implementation “Execution” for Stages..............................................78
4.2.10. Acceptance and Re-Evaluation...........................................................78
4.2.11. Organization success score measurement for ERP Implementation.....78
4.3. MSAM data storage & Application...........................................79
4.3.1. Entity Relationship Diagram (ERD) Extraction..................................80
4.3.2. Entity Extraction................................................................................81
4.3.3. Relationship Extraction......................................................................84
4.3.4. Forms for data input development.......................................................88
4.3.5. Queries for retrieval important information.........................................96
4.3.6. Reports for retrieval important information.......................................102
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Chapter 5 Experimental study and performance evaluation113
5.1. Environment............................................................................113
5.2. The experimentation steps........................................................114
5.3. Case “I” Pharmaceutical Industry............................................115
5.3.1. MSAM model Preparation Phase......................................................115
5.3.2. MSAM Evaluation...........................................................................116
5.3.3. Pharmaceutical organization readiness measurement for ERP Implementation
118
5.3.4. Modified Recommendations.............................................................119
5.3.5. Action Plan Execution......................................................................120
5.3.6. Acceptance and result conclusion.....................................................120
5.3.7. Pharmaceutical Organization success score measurement for ERP
Implementation...............................................................................................122
5.4. Case “II” Automotive Industry Case Study..............................125
5.4.1. Automotive organization readiness measurement for ERP Implementation
127
5.5. Comparison between the two case Studies for ERP implementation
readiness...........................................................................................131
5.6. Comparative analysis:..............................................................132
Chapter 6 Conclusions and Future Works............................134
6.1. Conclusions.............................................................................134
6.2. Future Work.............................................................................135
References.....................................................................................136
Appendix (A) Significant Failure questionnaire in Egypt.......142
Appendix (B) Questionnaire results and statistics...................145
Appendix (C) Pharmaceutical case study system component
structure........................................................................................152
Appendix (d) Pharmaceutical industry case study
experimentation result................................................................154
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