ERP Software in Pakistan: Market Overview and Final Strategy

Topics: Enterprise resource planning, Supply chain management, Enterprise system Pages: 10 (2573 words) Published: December 21, 2010
ERP Pakistan: Market Overview and Implementation Strategy

By

SYED AAMIR ABBAS & SAHBAN ZAFAR ALI

ABSTRACT
Title: ERP Pakistan: Market overview and Implementation Strategy Authors: Syed Aamir Abbas / Sahban Zafar Ali
Purpose - The aim of this paper is to (1) get an overview and provide consolidated figures of the existing ERP market in Pakistan, (2) To assess which Critical Success Factors (CSFs) are viewed more important in the ERP implementation process in Pakistan and (3) prepare a meaningful strategy, with main focus on the pre-implementation strategy, for Pakistani enterprises to practice in ERP projects based on the research information of the first two points.

Without proper homework and extensive preplanning this exercise can cost any company a lot of capital and poor payback periods that subsequently create a difficult position for the management. ERP products are very expensive proposition and failures are likely without meticulous planning and effective project management. Design/methodology/approach – The paper is based on 1) an exploratory study, which consists of discussions with the ERP consultants, Project Managers, 2) Literature review and case studies of Pakistan through questionnaire to establish effective guidelines for successful implementation of ERP project. Findings - The paper identifies the variance in company sizes as a major factor for selecting ERP products 2) main problems faced by the Pakistani companies during ERP implementations, 3) A rating of various critical success factors with the role of company’s top management as highest 4) Minimum pre-planning steps, 5) A strategy for successful / smooth implementation based on the above 4 points Originality/value- This paper provides an outlook & consolidated figures for the present ERP scenario in Pakistan (the same have not been complied before nor are publically available), a structured methodology for the firms planning to implement ERP for the first time in Pakistan. Keywords: ERP, Pakistan, Market scenario, Implementation Strategy, CSFs. Article Type: Research paper

1.0 Introduction

Growing competition and a need to restructure the business processes by attempting to bring a more transparent approach, has made many manufacturing companies in Pakistan embark upon enterprise resource planning (ERP) implementation.

An ERP system is an integrated software innovation that is aimed at enhancing organizational performance through providing end-to-end connectivity. ERP software, which attempts to integrate all departments and functions across a company into a single computer system, is one of the most important developments in information technology in the last decade. It promises one database, one application, and a unified interface across the entire enterprise [1].

The failure rates of these ERP implementations have been highly publicized in international magazines as evidenced by suggestions that: (1) more than 40% of large software projects fail, (2) 90% of ERP implementations end up late or over budget, and (3) 67% of enterprise application initiatives could be considered negative or unsuccessful [11, 12, 13, 14].

On the other hand this has not distracted companies from investing significant funds on ERP systems. ERP systems have, in recent years, begun to revolutionize best practice business processes and functions. They automate core corporate activities such as manufacturing and the management of financial, and human resources and the supply chain, while eliminating complex, expensive links between systems and business functions that were performed across legacy systems [11].

As shown by various researches and case studies, most ERP implementations unfortunately have not lived up to their market expectations [11, 12, 13, 14]. ERP implementations are notorious for taking a longer time and costing more money than is projected. Too often, the best-laid plans for full organization integration become...

References: [13] Davenport, T. H. (1998). Putting The Enterprise Into The Enterprise System. Harvard Business Review. July-August, pp. 121-131
[14] Boston Consulting Group
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