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An empirical study of Moroccan industrial data: challenges and benefits of an

ERP system

Conference Paper · December 2023

DOI: 10.1109/CiSt56084.2023.10409943

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 An empirical study of Moroccan industrial data:
challenges and benefits of an ERP system
Karima Moumane
Software Project Management Naoual Chaouni Benabdellah Imane Rafik
Research Team Software Project Management Supply chain management
ENSIAS, Mohammed V University Research Team Research team
Rabat, Morocco ENSIAS, Mohammed V University Mohammed V University
karima.moumane@ensias.um5.ac.ma Rabat, Morocco Rabat, Morocco
naoual.chaouni_benabdellah@ensias.u i.rafik@um5r.ac.ma
m5.ac.ma

Abstract—Enterprise Resource Planning (ERP) is a Oracle [7]. The level of control and deployment options,
centralized system facilitating interactions among numerous including cloud-based access, are determined by the
organizational stakeholders. Its main function is to streamline agreement between the organization and the editor.
and optimize processes and activities. This research paper
presents the findings of an empirical study conducted by Particularly, ERP systems have progressed significantly
Industrial to explore the fundamental drivers behind the in recent years. Since the early 2000s, modern ERP [8]
adoption of ERP systems. Furthermore, it addresses the systems have integrated additional features like supply
factors that influence the implementation process. chain management (SCM), CRM, and reporting
Additionally, the study incorporates user feedback on the capabilities. Around 2010, business intelligence, machine
system's usability and compatibility with other parameters, learning (ML), and the Internet of Things (IoT) became
including complexity and conviviality. Moreover, the benefits prominent for real-time data processing. Subsequently, the
of the implementation were assessed through practitioners' integration of artificial intelligence (AI) capabilities was
responses recorded in a survey of 40 Moroccan companies. To observed in 2015. In 2020, ERP systems adopted a data-
the best of the authors’ knowledge, this is the first empirical driven and modular-based approach, with expanded cloud
validation that evaluates the challenges of ERP systems choices and advanced security features.
encountered by Moroccan industrial enterprises. The findings
give interesting and practical recommendations and Another case in point is SCM [9] module which
directions to be taken into account by ERP integrators and improves organizational performance and generates
consultants to overcome challenges and difficulties. competitive advantage. In the current era of a highly
competitive business landscape and a rapidly changing and
Keywords—ERP implementation, survey, Empirical study, complex environment, the advent of digitalization has
user feedback, usability emerged as a new and transformative phenomenon that has
influenced various aspects of human life worldwide. In
I. INTRODUCTION
particular, the digitalization trend had a considerable impact
Enterprise Resource Planning (ERP) systems have on supply chain processes, and the transition from a
become a fundamental software package for organizations, traditional supply chain to a digital supply chain (DSC) has
facilitating the integration and automation of various become increasingly apparent. This shift to a DSC is viewed
business processes. The origins of ERP can be traced back as a competitive advantage that can generate sustainable
to the Material Requirement Program (MRP) [1], initially value for organizations.
developed to address manufacturing tasks in the automotive
industry. Over time, MRP evolved into MRP2, integrating SCM can be defined as a network of connected and
financial services and human resources functionalities, and interdependent organizations mutually and co-operatively
later transformed into Manufacturing Executive Planning in working together to control, manage and improve the flow
the 1980s. The term ERP emerged in the 1990s, signifying of materials and information from suppliers to end users
a comprehensive digital system that centralized data and [10].
resources while enabling communication between services. In traditional SCM design, logistics networks are
ERP systems have encountered continuous typically exclusive to a single company, resulting in a
improvement, evolving from integrating services within a hierarchical structure with limited horizontal
company to incorporating modules that directly support interconnectivity. The lack of information and coordination
core business functions [2]. Modules, such as Customer among organizations leads to global inefficiencies and
Relationship Management (CRM) [3] and human resource ineffectiveness in logistics operations. These issues can
management (HRM) [4] are connected to a centralized include poor transportation fill rates due to frequent
database, fostering seamless communication and delivering deliveries, indirect shipment causing transport detours, large
direct benefits to the organization. ERP solutions can be redundant inventories, stock-outs, and other related
tailored to specific company needs or obtained as ready- problems.
made solutions from editors like SAP [5], Microsoft [6], and

XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE

 The growth in business-to-business (B2B) commerce impact on information-sharing and decision-making
has highlighted the role of SCM in the modern digital processes throughout the supply chain. By embracing digital
economy. Inter-organizational systems (IOS) have made it technologies and fostering a culture of digital
possible to have an electronic flow of information across the transformation, organizations can improve collaboration
supply chain. However, some challenges in SCM and make more informed and timely decisions, leading to
implementation include partner alignment, long-term increased efficiency and effectiveness in supply chain
relationship management, reluctance to share information, operations.
the complexity of large-scale SCM, people competence,
performance measurement, and reward systems, and global On the other hand, the authors of this study focused on
competition [11]. logistics planning, specifically addressing the utilization of
static and dynamic analysis in the planning of automated
There are many studies that work on collecting logistics in the automotive industry. The researchers
companies' needs in terms of technologies. Indeed outlined the fundamental stages of the planning process,
companies need innovation and differentiation, authors of which involved gathering essential input data and
the work [12] have conducted an online survey to collect conducting static analysis followed by verification through
these specific needs. The survey contains five parts. The dynamic simulation. Throughout their study, they
first is General Information. The second part is encountered a specific challenge in the static design phase.
Digitalization in General and in Production. The third part This challenge related to determining the required number
is about Inter-Organizational Information Exchange. The of Automated Guided Vehicles (AGV) and accurately
fourth part is on the Value and Risks of Digitalization. The calculating their respective capacities to mitigate the risk of
last and fifth part is for analyzing Feedback. Based on the critical situations arising within the system. Thus, they
survey findings, the companies under study have modified reduce the probability of creating additional costs. They use
and improved their internal processes and structures by dynamic simulation in designing logistic processes where
implementing Industry 4.0 technologies. Their primary the analytical solution is generated. This will save them
focus has been on enhancing company-internal potential significant loss in time and technology. The
digitalization strategies. The benefits derived from application of technical tools involved implementing a static
digitalization predominantly manifest in increased design in an internal logistics system, with the primary
efficiency, including reductions in time, improvements in objective of addressing an internal logistic problem by
quality, and cost reductions. Notably, participants' employing dynamic simulation.
perspectives on the advantages and risks associated with
digitalization exhibit significant variations. The comparison of static and dynamic solutions in
various internal logistic systems was met in this work too
Digitization is transforming the operations of [18]. SCM must be used to oversee the company’s network
organizations and unleashing global opportunities for value effectively. Technology is a necessity for excellent SCM. In
creation across industries. Adopting digital technologies this research, the survey incorporated data and variables
enables companies to achieve superior benefits and has categorized into independent and dependent variables. The
received significant attention from enterprises worldwide findings of this study affirm the significant impact of
[13]. aligning IT with customer responsiveness in the context of
the supply chain.
Companies nowadays are investing substantially in
information technologies (ITs) such as web services, data IT impacts the company’s performance. Many questions
warehousing, CRM, and SCM. These investments aim to were raised regarding the level of reliance and alignment
leverage these technologies’ functions to shape their with the company's strategy, structure, and environment.
business strategies, improve customer relationships, and The Authors include a literature review on SCM, IT
enhance their extended enterprise networks [14]. By alignment, information sharing, supply chain integration,
harnessing the power of these ITs, companies can gain a and supply chain performance [19].
competitive edge, improve operational efficiency, enhance
collaboration, and ultimately achieve their strategic Furthermore, in another study, the authors primarily
focused on examining the role of logistics in the context of
objectives. In addition, information systems aim to integrate
communication between people and technology with ERP Jakarta. The case study, is xyz Cargo, a specialized freight
systems providing real-time and seamless user experiences forwarding and agency company that operates in the
that enable informed decisions and effective management of logistics and shipping sector in Jakarta. This work adopted
overall operations [15]. a systematic approach by employing the Systems
Development Life Cycle (SDLC) framework as the chosen
In this study [16], the objective is to build a new supply methodology. SDLC serves as a method for developing
network, characterized by a digital and interconnected systems in a structured manner, increasing the probability of
infrastructure, leveraging advanced technologies to enhance meeting project deadlines and ensuring the quality of the
collaboration, agility, and efficiency across the supply information systems product that aligns with established
chain. In a separate study, the aim is "to create a digital standards. The results obtained in this study are derived
community of partners executing coordinated processes in a from the application of the waterfall approach, which was
more organized and informed way than in the past"[17]. By the first widely adopted model within the Systems
constructing this new supply network, organizations can Development Life Cycle (SDLC) framework for ensuring
gain a competitive advantage and foster sustainable success the success of software development projects. [20].
in today's rapidly evolving business landscape. For both
reported studies, the conclusion is to recognize the necessity There is another technology that provides a good
of technology and the vital role played by digital evaluation of companies’ processes which is information
transformation. These advancements have a significant system logistic management (ISLM). The tool is efficient in
assessing the performance of staff members. The ISLM on the experimental process proposed by [25], [26],
enables these capabilities at the appropriate moment, [27],[28].
thereby fostering increased internal interaction.
Additionally, Open-source ERP systems which are The different steps of the empirical study are presented
enterprise resource planning software released under an and described in the bottom sections.
open-source license, allow businesses to access and modify A. Experiment subjects
the system's source code[21]. This feature makes these This empirical study is based on the responses of
systems highly flexible and customizable to meet individual different companies’ representatives. These companies are
business needs [22]. Key advantages of adopting such of different types in terms of their industrial fields. Their
systems, as indicated by research, include cost savings due sizes vary from small to large. This allows us to get different
to the absence of software license fees, making them an opinions and viewpoints. Different ideas, as well as many
affordable choice, specifically for small enterprises[23]. suggestions and feedback about the implementation of ERP
Furthermore, each open-source ERP system offers a unique systems, were reported. However, the number of
set of benefits, ranging from flexibility to scalability[24]. participants in the empirical experiment depends on several
Examples of these open-source ERPs include systems like factors such as time, cost, availability, and effort needed to
Odoo, ERPNext, and Dolibarr. be deployed for collecting and analyzing the data.
While ERP systems have been extensively studied in In this study, 40 companies of different sizes (Small,
various contexts, there exists a research gap regarding the Micro, Medium, and Large companies) that operate in
challenges and benefits specific to Moroccan companies different industrial areas have participated in this
operating in different area especially logistics and supply experiment.
chain companies. Understanding the unique circumstances
and requirements of these companies, particularly small and As presented in Fig.1, the sample of the experiment is
medium-sized enterprises (SMEs), is crucial for providing composed of 42.5% of companies that have been
insights into the implementation and utilization of ERP categorized as large companies with more than 100
systems in this specific context. Therefore, an empirical employees, 25% categorized as micro-enterprises, 20% as
study of Moroccan companies’ data is necessary to bridge medium companies, and 12,5% as small companies.
this research gap and shed light on the challenges and
benefits experienced by Moroccan companies in adopting
and implementing ERP systems. By addressing this
research gap, valuable knowledge can be gained to assist
Moroccan SMEs in making informed decisions regarding
ERP system adoption and implementation strategies. The
experiment has been performed through a questionnaire
filled by 40 Moroccan enterprises to answer three research
questions (RQs):
1. RQ1: what are the essential motivations
behind the implementation of ERP systems?
2. RQ2: what are the factors and challenges that
impact the implementation of ERP systems
for Moroccan companies?
3. RQ3: what are the expected benefits of the
implementation of ERP systems?
Fig.1. Distribution of companies by size
This empirical study will serve as a reference for
Managers, directors, ERP Integrators, and consultants to
As presented in Fig.2, 22.5% of the questioned
help Moroccan enterprises choose the most adequate and
efficient ERP to meet different needs and requirements. companies are operating in the Trade field, 17.5% in
Transit/Import/Export, and 15% in Logistic transport. The
This paper is structured as follows: after the rest of the companies are operating in different fields such
introduction, the design of the experiment is described in as Energy, Customs, Education, Insurance, Banking,
section II. In the third section, the results are reported. The Finance, etc.
discussion and interpretation of the obtained results are
presented in the fourth section. This was followed by threats
to the validity of this study. The last section concerns the B. Instrumentation:
conclusion of the conducted study and future research In this experiment, the use of a questionnaire composed
directions. of a set of targeted questions is the instrument, since the key
role of using questionnaires in experimental research
II. EXPERIMENT DESIGN [29],[30]. These questions are related to challenges, and
Implementing ERP systems for industrial companies advantages of the implementation of ERP systems within an
remains a challenging task and a key constraint for every enterprise context, with free input fields for feedback and
type of company, as it requires more effort, commitment, suggestions as presented in Table 1.
and financial resources. To evaluate the challenges and
difficulties encountered during the implementation of ERP
systems, an empirical experiment has been conducted based
 Table 1: example of the Assessment questionnaire questions

Fig.3. Number of companies that have implemented the ERP systems

Fig.2. Distribution of companies by Activity sector

C. Procedure
Fig.4. The names of the installed ERP systems
First, the questionnaire was designed and inserted in
Google Forms and then shared to be filled by different
members on the social media networks such as LinkedIn,
Facebook, and Twitter for easy and quick data collection. It
has been filled by 40 companies from 4 February to 15 July
2023, to describe their experience with ERP systems and
share their feedback. After having received the answers to
the questionnaire, we proceeded to the collection of the data
in Excel format and then to the data analysis using the
Statistical Package for the Social Sciences (SPSS) tool for
the qualitative and quantitative analysis. These two tasks
have been conducted by three different authors to ensure
accuracy, conciseness, and proper interpretation of data.
III. RESULTS
This section presents the findings of the empirical study, Fig.5. The period of the implementation of the ERP systems
especially those concerning the answers to the questionnaire
launched with 40 surveyed companies. The data analysis As shown in Fig.5, while 40 % of the surveyed
and graphs generation were performed based on the use of companies already have this system between one and two
the SPSS tool under a Microsoft environment. years, 22.5% have implemented this system recently, on the
As presented in Fig.3, 75% of the surveyed companies other hand, 12.5% have set up this system more than two
have already set up an ERP system, while 25% of them have years ago.
not yet implemented it. Based on the results presented in Fig.6, 19 out of 40
As shown in Fig.4, 22.5% of the surveyed companies companies have opted for an ERP system for better
work with Odoo or Sage ERP systems, 12.5% with SAP, visibility of business data, and 15 out of 40 have
10% with Oracle Cloud Fusion, and 7.5% of them work with implemented it to improve operational efficiency. While 3
CEGID. of the surveyed companies have other causes and
motivations behind their choice.
 10 out of 40 see it as quite important, while 1 out of 40 think
that it is not very important (Fig.8).

Fig.6. The motivations behind the implementation of the ERP systems

Fig.9. The challenges of the ERP system's implementation

During the implementation of these systems, 37,5 %

claimed that the cost was high, 22.5% indicated the Staff
Training challenge, 20 % couldn't integrate it with existing
systems, 10 % found that the system was complex, and 10
% claimed other challenges (Fig.9).

Fig.7. The impact of the implementation of an ERP system on the

company activities

As shown in Fig.7, 22 out of 40 surveyed companies

believe that the impact of the ERP system on their business
is very positive, while 13 out of 40 see that this system has
a moderately positive impact on the company's activities.
While the impact is insignificant for other surveyed
companies.

Fig.10. The variation of Challenges and benefits in terms of the

company size

According to Fig.10, we note that for small and medium-

sized companies, the major obstacle to setting up an ERP
system is the high costs.

Fig.8. the variation of the importance of the ERP systems implementation

29 out of 40 surveyed companies are considering the

ERP and information management system very important,
 IV. DISCUSSION AND INTERPRETATION usage. Therefore, actions must be addressed to reduce and
This section discusses the findings in section 4, it is overcome these hurdles and to reach enterprise objectives
structured to meet the three RQs representing the main efficiently. To do that, Moroccan enterprises must focus on
objective of this experimental study. the earlier and more critical phase which is the selection
phase of the adequate ERP system to fit their needs [44].
RQ1: what are the essential motivations behind the The selection phase is the first step of the selection ERP
implementation of ERP systems in Morocco? process that must be based on practical guides [45], the
Choosing and implementing an ERP system depends on study of the existing system, company priorities, existing
different parameters such as the size of the enterprise, the resources (financial, material, human, etc), enterprise
activity domain, the fixed strategy, the involvement of the strategy, different stakeholders of the system, Data
top management, future needs, etc [31]. Based on the Management Strategy [46], etc. Each enterprise should
results of this study (Fig.6) an enterprise can opt for ERP develop its own ERP selection criteria, selection process,
systems for better data analysis and visualization. It is and best practices that help to avoid failure and to fit
possible to provide modules related to the monitoring organizational requirements and needs efficiently and
process and reporting. More essentially a set of Key quickly.
Performance Indicators (KPIs) are available in the majority
of the ERP in the market [32]. This is for supervising RQ3: what are the expected benefits of the
promoting activities and for an efficient decision-making implementation of ERP systems?
process [33]. Establishing Dashboards for KPIs allows us ERP systems presents several benefits for the
to measure results, predict, make necessary adjustments if stakeholders at all levels: organizational, financial,
needed, improve profit, and to increase business business, human resources, environmental, etc [47]. Based
performance [34]. on the findings of the survey conducted with 200 Saudi
Additionally, ERP adoption can reduce costs by Small and Medium Enterprises (SMEs) that worked with
improving operational efficiency through digitalization and the ERP systems [48], enhancing enterprise business and
computerization [35]. financial performance [49] are among the significant
positive impact of setting up such systems. They have also
RQ2: what are the factors/challenges that affect the positive effect on employees' performance, productivity,
implementation of ERP systems for the companies? and quality of work since they can produce more in the
ERP systems are challenging and resources are intensive same period [50],[51] without stress which improves job
[36]. The results shown in Fig.9 depict that ERP systems and career satisfaction [52] In addition, ERP systems allow
are high-cost information systems that constitute a vital enterprises that produce both products and services, to
factor for ERP purchase and implementation for Moroccan efficiently use all of their resources (human, material,
enterprises. This is because there are many types of costs to financial, etc) [41].
consider. These include Software costs, Consulting Costs, Recently, the ERP domain has evolved significantly,
Data migration Costs, Training Costs, Customization and and we are talking about postmodern ERP with the
Integration Costs, etc ([37],[38]). Additionally, staff emergence of Cloud Computing and AI, hence the name of
training affects ERP system usage, because it is often Cloud ERPs [53]. ERPs Cloud-based appeared in the mid-
expensive and it must be taken seriously since effective 2000s because of the perceived benefits of the management
training is among the critical success factors of ERP of upgrades, and maintenance, while avoiding on-premise
ERPs management [54],[55]. Indeed, by selecting a Cloud-
implementation [39]. To do that, Moroccan enterprises can
based ERP [56], the customer can take advantage of the
rely on Communities of Practitioners (CoPs) to improve the reliability, availability, low hardware cost, and scalability of
quality of the training which should help to better target Cloud ERPs as Software as a Service (Saas) or Platform as
business and organizational needs with continual added a Service (Paas) [36]. They can access the functionalities
value [40]. and modules using the internet browser without any client
ERP systems are also characterized by their complexity installation or configuration of the system [57] unlike the
in terms of understandability, maintainability, usability, etc traditional ERP that needs all the previous steps to access
They are composed of different layers, several modules the ERP services [58]. SAP Business ByDesign is one of the
[41], and different architectures. Therefore, enterprises famous ERP cloud in the market which incorporates Cloud
may experience difficulties and limitations during the computing, Agility, the Internet of Things (IoT) [59], and
integration of ERP components with an existing system Business Intelligence via real-time data analytics [60].
because of the networking differences and requirements of
According to [61], the Cloud-based ERP systems
each implementation process. The infrastructure is market should reach a growth of $ 68.58 billion in 2026 with
supposed to migrate and requirements need to be met. The a compound annual growth rate (CAGR) of 13.2%,
architectures need to be reprocessed, and the whole indicating the importance of this area. Nevertheless, in
conceptual design is to establish. addition to opportunities [62], implementing ERP cloud-
Based on the findings of the [42] study, there is a based should present particular challenges [63], and can be
significant relationship between ERP system usage and impacted by several factors [64] that must be taken into
user satisfaction. In the survey of large Taiwanese account.
corporations conducted by [43], it was found that
information and system quality in addition to management
support may impact directly or not directly ERP system
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