Exploring the Critical Success Factors (CSF) and Limitations of Enterprise Resource Planning (ERP) Systems: The Case of Egyptian Hotels

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.