National Bank of Kuwait Case Studay

< Chapter 1 > The National Bank of Kuwait

1. NBK was the first indigenous bank in the Gulf Region and it was one of its advantages but it did not help to maintain their position anymore. They needed change. NBK decided to build new ERP system and it made NBK able to expand its market share successfully. New ERP system would close the gaps between top management and operating management teams. It helped the bank to be more flexible and more productive by coordinating its business processes more closely and integrating groups of processes so that it could focus on efficient resource management and customer service. Also, SHOROUQ can be ungraded easily, and additional server capacity can be added without a great deal of maintenance. Because of SHOROUQ, NBK was able to expand its market locally, opening 71 local branches spanning all of Kuwait.

2. As I mentioned above, there are many advantages of implementing the SHOROUQ system at NBK. First, ERP system would help the bank to be more flexible and more closely and integrating groups of processes so that employees could focus more on the customer service and resource management. It would make them work efficient and fast. In the past, NBK had old system that could not support the huge databases with paper-based system. After NBK changed to new ERP system, employees can work more efficiently because the ERP system can handle it.

There are also the disadvantages of implementing the new ERP system at NBK. First, it will cost much to set it up. It can be NBK’s dangerous investment implementing the new ERP system because they just survived from the economic crisis in 2008. They might have financial difficulties. Secondly, it will take 2-3 years to stabilize the new system. NBK’s employees might have difficult time to learn how to use new ERP system so company will need few years to wait until the system set up. In order to make their employees to learn about the new system, it will cost more again. It can...