This paper examines the critical success factors for deploying enterprise IT systems — particularly Enterprise Resource Planning (ERP) applications — and compares implementation challenges between China and North America. Drawing on peer-reviewed research, the paper argues that while core success factors such as senior management support, change management, and system integration apply universally, their execution is significantly more complex in China due to linguistic diversity, uneven infrastructure, highly customized training requirements, and the need to navigate relationships with government authorities. The paper highlights how these compounding challenges make ERP deployments in China considerably more resource-intensive than comparable rollouts in North America.
The key success factors for any Information Technology (IT) deployment center on change management and the many supporting aspects of getting those employees most affected by the system to adopt and use it. This process typically involves change management programs that include top management support, project team definition, execution of strategies, in-depth process change, and pervasive education (Woo, 2007). These key success factors are critical for any IT system, yet when evaluating the implementation of an Enterprise Resource Planning (ERP) system, these factors become even more pronounced when comparing deployments between China and North America.
When deploying an IT application, the most critical success factors begin with senior management support, followed by intensive change management strategies and expertise in ensuring system integration across legacy enterprise applications and databases (Chao, 2009). In rapidly emerging economies that have wide variation in the quality of infrastructure, attaining each of these key success factors can be problematic.
In China, for example, gaining the necessary expertise to plan, execute, and continuously lead change management programs across multiple dialects and cultures is often the most expensive and time-consuming task of any IT implementation (Zhang, Lee, Huang, Zhang, & Huang, 2005). The development of educational and training materials for any IT application — and all the more so for the greater complexity of an ERP system — requires expertise in each Chinese dialect, in addition to an understanding of how processes may need to vary by production facility or company location within China (Zhang, Lee, Huang, Zhang, & Huang, 2005).
All of these factors must be taken into account when creating the change management and educational programs to support any IT application, with ERP systems presenting even greater challenges and complexities in China. Compared to North America — where dialects are relatively consistent and business operations are standardized on English — the task of creating change management and training materials for each Chinese province in which a company operates can be daunting (Xue, Liang, Boulton, & Snyder, 2005).
Beyond language and training complexity, ERP deployments in China face challenges stemming from uneven technological infrastructure across provinces. In rapidly developing regions, the reliability and standardization of underlying IT infrastructure cannot be assumed in the same way it can in North America. This forces implementation teams to account for significant regional variation not only in training delivery but also in system configuration and support requirements.
The highly customized nature of training materials needed for Chinese deployments stands in stark contrast to the more standardized approaches available in North American rollouts. Process flows that are well-established in a Western manufacturing context may need to be substantially redesigned for Chinese facilities, adding considerable time and cost to the implementation lifecycle (Zhang, Lee, Huang, Zhang, & Huang, 2005). These localization demands make China one of the most complex environments in the world for large-scale enterprise resource planning deployments.
"Financial data transparency and government scrutiny risks"
Sophisticated, analytics-intensive enterprise systems capable of managing pricing and financial data with greater agility than government agencies can monitor represent a source of concern for Chinese authorities. This dynamic is illustrated by the accusations leveled at Wal-Mart regarding price "fixing" when the company created a distributed supply chain network in China. When building a distributed network in that environment, companies must establish a strong, transparent, yet carefully managed relationship with the Chinese government to ensure the continued operation of both the network and the enterprise application (Zhang, Lee, Huang, Zhang, & Huang, 2005).
This political and regulatory dimension has no direct equivalent in North American deployments, where distributed architectures and cross-regional financial reporting systems are generally viewed as standard business practice rather than as a potential threat to government oversight. The additional layer of stakeholder management required in China represents a meaningful cost and risk factor that implementation teams must plan for from the outset. Understanding the broader foreign business operating environment in China is therefore an essential component of any successful IT deployment strategy.
Key success factors for IT implementations are relatively consistent across geographic regions, yet their interpretation and execution vary significantly by context. The lack of infrastructure consistency in China, the highly customized nature of required training materials, and the recognition that processes will differ substantially between Chinese manufacturing sites and Western locations are all critically important considerations. Overarching all of these factors is the need to ensure that senior management actively supports and champions the implementation program, as without that executive commitment, the considerable challenges outlined above are unlikely to be overcome.
Chao, G. (2009). Identification and assessment of risks associated with ERP post-implementation in China. Journal of Enterprise Information Management, 22(5), 587–614.
Ge, L., & Voss, S. (2009). ERP application in China: An overview. International Journal of Production Economics, 122(1), 501.
Woo, H. S. (2007). Critical success factors for implementing ERP: The case of a Chinese electronics manufacturer. Journal of Manufacturing Technology Management, 18(4), 431–442.
Xue, Y., Liang, H., Boulton, W. R., & Snyder, C. A. (2005). ERP implementation failures in China: Case studies with implications for ERP vendors. International Journal of Production Economics, 97(3), 279–295.
Zhang, Z., Lee, M. K. O., Huang, P., Zhang, L., & Huang, X. (2005). A framework of ERP systems implementation success in China: An empirical study. International Journal of Production Economics, 98(1), 56–80.
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