A Case Study in Chinese Failure in ERP Implementation
Keywords:
Change management, Project Management, Business Process Re-engineering (BPR), CultureAbstract
This article is a single-case study on ERP implementation processes at a Chinese enterprise. The enterprise, Ω, implemented the second generation of ERP system supplied by SAP R3 to supersede its earlier own custom-designed first generation ERP system. We selected five Key Critical Success Factors (KCSFs) of; top management support, business process re-engineering (BPR), change management, project management, and company context for analysis of second generation ERP SAP R3 implementation at Ω. The primary reason for change over from first generation to second generation ERP SAP R3 was business expansion and modernization. Ω failed to customize SAP R3 to its business processes. There were variety of reasons for this failure with amongst others, users’ resistance, company culture, complex business processes, error in input to database, lack of understanding of business processes by SAP consultants and understanding of SAP functions by key users.
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