Chapter 10

THE NATIONAL BANK OF KUWAIT.

Question 1: how has NBK benefitted from the implementation of SHOROUQ?

            NBK was the first indigenous bank in the Gulf Region and it was one of its advantage but it did not help to maintain their position anymore. They need change.

NBK decided to build new ERP system and it made NBK able to expend its market share sucessfully. New EPR system would close the gaps between top management and operating management teams. It helped the bank to be more flesible and more productive by coordinatings its business processes more closely and integrating group of processes so that it could focus and efficient resource management and customer service.

            Also, SHOROUQ can be ungrade easily, and additional sercer capacity can be added without a great deal of maintenance. Because of SHOROUQ, NBK was able to expend its market locally, opening 71 local branches spanning all of Kuwait.

Question 2: list the advantages and disadvantages of implementing the SHOROUQ system of NBK?

            Advantages:

ü  ERP system would help the bank to be more flecible and more closely and intergating group of processes so that employee could focus more on the customer service and rsource management.

ü  In the NBK had old system that could not support the huge databases with paper-based system.

ü  After NBK changed to new ERP system, employees can work more efficiently because the ERP system can handle it.

Disadvantages:

ü  It will cost much to set it up.

·         It can be NBK’s dangerous investment implementing the new ERP system because they just servived from the economic crisis in 2008.

·         They night have financial difficulties.

ü  It will take 2-3 years to stablilize the new system.

·         NBK’s employees might have difficult time to learn how to we now ERP system so company will need few years to wait until the system ste up.

·         In oder to make their employees to learn about the new system, it will cost more again.

Question 3: how do you think NBK’s would have developed if it had not integrated SHOROUQ?

            SHOROUQ was a core system for NBK. This system was developed by the team members taking into consideration their mission as well as the NBK regional status. This is why it was critical for the company and development group to develop a strategic system such as SHOROUQ.