ERP Intro

Planning Your Company’s Resources
Using Modern Technology
(ERP Concentration – Corporate Perspective)

How Can Technology Serve Organizations

Technological Solutions Consultant
& Business Analyst
Consult@NebalAnaim.com
+966-505610651
1
For benefit, feel free to spread without changes. Modifications are welcome:

In the name of God,
Most Gracious,
Most Merciful

Information
 Fun Facts: Meaning of 'Google‘:
The name 'Google' is a play on the word 'googol,' coined by Milton
Sirotta, nephew of American mathematician Edward Kasner. A
'googol' refers to the number represented by a 1 followed by
100 zeros...

Google's use of the term reflects our mission to organize the
world's immense (seemingly infinite) amount of information and
make it universally accessible and useful.
2001: 2 Billion Webpages
2007: 8 Billion Webpages

 The Machine is Us/ing Us (on-line video):
http://www.youtube.com/watch?v=NLlGopyXT_g

 Thus, IT, Information Technology, refers to the technology
involving the development, maintenance, and use of computer
systems, software, and networks for the processing and
distribution of data
www.merriam-webster.com/dictionary


Audience ‫الجمهور‬
‫حياكم ال جميعا مهما كان تخصصكم‬
Whatever your specialization is
Audience: :‫المستهدفين‬
‫صناع القرار الذين ينوون اختيار أنظمة تطبيقات مناسبة أو عندهم مشاكل في النظمة‬
:‫الحالية‬
Decision-Makers who intend to select suitable application systems or
have problems with existing systems: ‫مستشاري الدارة والهندرة‬ •
• Management & Re-engineering Consultants ‫أعضاء مجالس الدارة‬ •
• Members of the Boards of Directors (& VPs) ‫المدراء العامين ومن ينوبهم‬ •
• MDs, GMs & their replacements ‫رؤساء القسام‬ •
• Departmental Directors ‫مدراء الوحدات المختلفة‬ •
• Section Heads/Supervisors
‫ذوي العلقة والمهتمين‬ •
• Involved & Interested People
‫إلخ‬ •
• Etc.


Abstract / Introduction:
Executive Managers of organizations from different
industries and sectors always strive to find solutions to
improve the way their organizations are run.

There will come a time when they realize that
technology has effective & efficient solutions to assist them
in achieving their corporate objectives.

Enterprise Resources Planning Systems, abbreviated as
ERP (MRPII), represent computer software technologies that
link all departments in one automated system (some of them
web-based).

Agenda:
Information as an organizational Asset
What's an ERP System (A Business Solution or an IT System or both)?
Benefits of ERP Systems including samples of business functions.
Examples of ERP Systems and which organizations use them.
The right process for ERP selection.
The importance of team effort, goal-setting, planning and step-by-step
execution
Success factors and how to apply them (DOs).
Failure factors and how to avoid them (DON‘Ts).
ERP Software Licensing & Pricing Schemes
Out of all ERP Modules why's the HRM software unique in the Gulf Region?
Examples of HRM Systems & their integration to ERP Systems
ERP & Business Intelligence (BI) Systems
In addition to other related topics


Information
Too much of a good thing? Information is a
precious business asset, but in large amounts it
often becomes a burden. The right technology
tools can help you more effectively manage
your data – and get more value from it.

By 2011, we will create enough data to fill
bookcases encircling the earth 33,000 times.
(e-Newsletter: HP Technology at Work - November 2008)


Information
An organization's ability to act swiftly
and make business decisions
is based on having access to
complete and accurate views of enterprise data.
Companies recognize the value
in leveraging all of their corporate information
and the benefits of reconciling data into consolidated views
http://it.toolbox.com
By
www.winshuttle.com

"Biggest room in the world is the room for improvement"
www.meqmp.com Middle East Quality Management Professionals


There’s a strong global demand for a
solution on a single platform that
connects people faster,
links all departments ,
integrates business functions/processes,
improves collaboration ,
generates reports as & when needed,
allows organizations to control costs,
and speeds time-to-decision


What’s ERP ‫ما هو‬

an E.R.P. system ‫.نظام ت. م. م‬

‫نظام‬

‫تخطيط موارد المنشآت‬
Enterprise Resources Planning
System 10

Enterprise Resources Planning (ERP) Module Samples to select from

(SCM)
Financial Logistics
Quality Accounting Supply Manufacturing
Management Chain /
Management Management Production

Project (CRM) BI:
Service / (HRM) Analytics &
Management Maintenance
Customer Human Reporting
Dept.
(PM) Relationship Resources
Management
Management

Different Optional Managerial Programs
& Computerized Business Applications
that are linked

Previously: Paperwork + Different Programs (If any)


Planning the Resources of your Enterprise
‫المستودعات والتوزيع‬ ‫التصنيع والنتاج‬
Warehouses & Distribution Manufacturing/Production

‫تقارير‬
‫إحصائية‬
‫العملء‬ Statistical
Clients Reporting
‫المبيعات/المعارض‬
Sales/Showrooms

‫الموارد البشرية‬ ‫المحاسبة/المالية‬
Human Resources spread without changes. Modifications are welcome:
For benefit, feel free to Finance/Accounting

Enterprise Resources Planning System

Web-based, Multi-
Company, branch, currency, etc.


Therefore,

An ERP System
is one
Multi-software
Business Solution
that
connects / links / integrates
all Departments
via complete Business Processes

‫الفشل في التخطيط يقود إلى التخطيط للفشل‬
The failure in planning will lead to planning to fail

L'échec en planification mènera en planification vers l'échec


ERP System
The WHO Question is:
Who
Plans
The Resources
Of your Enterprise (Organization)???
Company / Group of Companies, Establishment, Factory, Hotel, Hospital,
Supermarket, Chain of Restaurants, etc.???

Answer:
The Chairman / President / CEO, etc. plans the Resources of the
enterprise as a whole
* The CFO / Finance Manager plans the Financial Resources
* The HR Director plans the Human Resources
Etc.


Business Solutions Project Manager
As soon as an ERP system is thought of, you
must hire a dedicated full-time manager with:
• Strong Business Acumen
• ERP Experience (Full-Cycle implementations)
• Organizational Change Management
• IT Project Management (PMP)
• Technology (IT) Background

Other skills go without saying: Presentation skills (oral &
written), etc.


ERP System
The HOW Question is:
How does an ERP System facilitate work?:
Answer:
Certified ERP systems offer built-in Best-Of-Breed
(BOB) Int’l Best Business Practices (BBP) such as:
 Accounting : Generally Accepted Accounting
Principles (GAAP)
 Auditing : Sarbanes-Oxley (SOX) Act
 Projects : PMP – Project Mgmnt Institute (PMI)
 Manuf & Inv. : American Production & Inventory
Control Society (APICS)
 Etc.


Avoid Common Mistakes
• Avoid getting a computer programmer /
software developer to create an accounting
software, warehouse management software,
personnel & payroll, etc……How can a
technical person understand such critical
business functions???
• Avoid getting a different stand-alone program
for each department… How can the
organization run as one entity???


Facts ‫حقائق‬
According to international & local statistics derived from
studies conducted by consulting firms & solution providers.
‫%52.16 من مشاريع التطبيقات تفشل‬
61.25% of ERP Implementation Projects Fail.
‫%05 من مشاريع برمجيات ت.م.م. تتوقف خلل مراحل التطبيق‬
50% of ERP software projects are terminated
somewhere along the implementation process.
(‫%57 حكم عليها المستخدمين )الموظفين( بأنها ضعيفة )غير مرضية‬
(‫)من التي تم تطبيقها ووصلت إلى المرحلة العملية‬
• 75% are rated poor by the users (Of those that
are implemented and reached the operational phase).

?Why ‫لماذا؟‬
‫أسباب هذه الرقام المحزنة‬
The reason for these disappointing numbers is too often based on
‫غالبا يعتمد على‬
a lack of ‫عدم وجود‬
knowledge‫المعرفة‬
Experience‫الخبرة‬
Or‫أو‬
‫آلية لختيار نظام تخطيط موارد المنشأة‬
ERP system selection methodology

‫ليست الحترافية زعما فقط‬
‫وإنما هي ما يلحظ أثناء العمل وبعد النجاز‬
Professionalism isn’t just a claim
but it’s what’s noticed during work and after achievements

Cost justification: How do you know that you are getting
the right / best value for your invested money when purchasing a technology?

is the first hurdle that a business system implementation project must clear:

Costs – Capital expenditures, on-time project expenses, and ongoing support activities
include:

• Application software and hardware
• Modification of applications software, which potentially increases the risk and length
of the project, in addition to having future cost implications such as custom code
maintenance
• Software and hardware maintenance
• Communications equipment and installations
• Education and training – including management, train-the-trainer, and hands-on as
well as personnel costs
• Conversion of initial operating expenses, including the cost of parallel operations (if
necessary), part-timers, consultants, and programmers (if modification is necessary);
and
• Consultant and temporary staff expenses, until the new operating environment
settles down.


Cost justification
The best justifications match the Technology Project Goals to the Organization’s
Business objectives.

Following are some of the major elements of a justification model:

• Benefits – There are two types of financial benefits:
– Day-to-day savings that eventually aid the bottom line, and increased working capital (cash
availability) resulting from reduced assets such as inventory and receivables.
– Also new systems usually cost less to operate than legacy systems.
• Revenue and Profits – Revenues increase as a result of more responsive customer
service; accurate forecasting and manufacturing scheduling; increased sales
volumes; the competitive edge gained by on-time deliveries made possible by better
manufacturing performance; lower costs through increased quality and productivity;
and having the right stock / material / product at the right place and the right
time for the right price.
• Inventory Management – Inventory is the repository of many of the company’s past
mistakes, and a vast resource of potential working capital. Better scheduling reduces
inventory by taking delivery of the right material at the right time and preventing
buildup of obsolete materials.
• Purchasing control and more reliable scheduling reduces purchase prices and lead
times. Fewer shortages improve manufacturing performance.


Four Areas of Critical Focus
www.itworldcanada.com
• The first critical element is IT strategy. Strategy is one element of a well-defined, well-
understood strategic vision of what the IT environment must be. This vision (environment scan,
market review, business needs analysis, and IT prescience) should position the CIO to support
and grow or to transform the business. Of course, it must be a vision the CIO is capable of
realizing to include closing any gaps. When creating a vision and strategy, the CIO must pay
heed to the whole range of artifacts and circumstances relating to both external
market/business trends and the ITO’s own strengths and abilities to ensure corporate growth
and transformation.
• The second critical element of focus is IT value creation and portfolio management. IT return on
investment capital (ROIC) means growing value for ITO shareholders. Benchmarking and
market comparisons may be necessary to assure the CEO that the enterprise is paying the
appropriate price, or a reasonable premium, for value-add IT services. This means the CIO
must understand and communicate the financial picture of the IT investment portfolio to the
CEO and line-of-business (LOB) executives.
• The third critical area is IT and ITO integration. For a CIO to realize IT strategies, the ITO must
wholly integrate itself into the enterprise as a cohesive, integral part and valued partner (trusted
and respected). Of course, this entails paying close attention to the myriad facts about how the
business operates and what the business needs are, as well as constantly communicating how
IT is aligned and positioned to treating the business as a valued partner and IT services
customer.
• The fourth area is LOB customer satisfaction. An incoming CEO will certainly look at IT financial
performance, IT/LOB investment ratios, benchmarking data, and ITO/LOB strategic alignment.
That said, what is truly important is whether the enterprise perceives it is receiving real value for
the level of IT investment, whether the ITO is credible (e.g., does what it says it will do,
manages expectations), and whether the level of dependency of IT services is high (e.g.,
information is timely, accurate, and reliable). CIOs would be well advised to survey the
organization annually with special attention paid to key stakeholders’ perceptions of the ITO’s
performance and IT ROIC.


Human Factors

The key component in success or failure is the human factor.
The lack of methodology and training is the major cause of implementation
failures:
• Users are unprepared for the size of the task;
• System information flow is not defined;
• No commitment & Participation from Upper management’s;
• System users are not committed to the implementation;
• Initial pains of implementation create resistance;
• Operational ignorance is unchecked;
• There is a lack of system data integrity;
• A feeling of Apathy & dis-interest spreads.

 To minimize the chance of failure, you must ensure that everyone
involved recognizes that change is needed and act as willing
participants in moving to the new world


Human Factors
 According to statistics, People remember:

• 13-20% of what they hear
• 25-35% of what they witness
• 85-95% of what they apply

 Trainees watch ERP trainers working on it (via a projector) and probably writing
things on the board / flipchart but not many trainees take notes.
 User manuals of standard ERP modules should be distributed even if the training is
conducted specifically for your organizational ERP requirements
 ERP training sessions should be conducted in a computer lab preferably equipped
with real or dummy servers configured with real or sample data and real or test
companies on computer terminals for trainees. This will entice your employees to
become eager to learn and be encouraged to use the ERP. If this isn't feasible at this
stage, there are computer labs that can be rented out for SAR 300-600 per day 15
computers per training room including refreshments. Sometimes this is
recommended actually because employees focus on the training only, with no
distractions.
 Piled up work takes some of their time and interrupts the ERP training, especially
when executives call some employees. This influences the training schedule
negatively and delays the go-live date.
 Plan a hands-on training for the ERP users to be confident enough to use it after the
go-live date and get used to it as a daily routine to be realistic not just optimistic.


Enforcing IT Change Management Policy
While planned, authorized changes have obvious
benefits to systems and users; it’s the unknown, poorly
executed, or even imperceptible changes that can result in
serious negative impact to IT systems and processes.

For example, an unauthorized change to firewall
settings can result in serious vulnerabilities that not only
threaten data and disrupt revenue-generating services, but that
can also imperil compliance with regulatory requirements.

The only way to truly prevent these kinds of changes
is to create a culture of change management that has zero
tolerance for unauthorized change by detecting &
documenting change, and enforce your change policies.
http://www.itbusinessedge.com/offer.aspx?o=01030004site


Benefits of an ERP
• Real ERP systems comply with International Quality
Measures & Standards from:
• SixSigma
• ISO (International Organization for Standardization)

• Real ERP systems developed a special module called:
Quality Management and can work as a platform /
base for other modules


Benefits of an ERP (If Implemented successfully)
• Visibility on all operations and future path.
• Automatically creates a plan that guarantees there
will be no violation of resource constraints.
• Performs "what if" scenarios & analyses by
considering fixed & variable resource options
• Much easier, faster & cost-efficient to introduce a
new product (e.g. if U R a manufacturer or mobile phones
importer)
• Identifying faults and planning improvements:
What if you need to know the life cycle of a
product?
• Process Improvement based on historical methods


Benefits of an ERP (If Implemented successfully)
• Better & faster Inventory Management
• Real-Time operations using networking
technologies for multi-access
• Intelligently adapt to market changes and
proactively respond to shorter, less predictable life
cycles via faster info flow.
• Communicates all stakeholders operations between
buyers, sellers, supplier, agents, distributors,
resellers, etc.
• Provides the ideal platform to do business
regionally and globally.
• Provides a unique platform to explore new business
opportunities and exchange information


Paperless Work Environment

‫أنظمة تخطيط موارد المنشأة تبرمج العمال وتجعلها آلية‬
ERP systems Program & Automate Work functions

Benefits of an ERP
• The right people (authorized employees)
get the right information (needed to complete
their tasks)
for the right use (to progress a business
function)
at the right time (real-time, as needed, when
needed, at their fingertips on a click of a button)
in the right place (wired or wireless in office,
road, warehouse, branch, etc.)


Benefits of an ERP
• Single Source of Truth – Data Integrity
• E.g.: System recognized by U.S. Congress for
substantially improving defense readiness and
saving multiple hundreds of millions of dollars.
• Costs are reduced resulting in increased profits
• The organization is under control (e.g. fraud
halt)
• Trained staff efforts become more effective and
efficient.
• More to come >>>

e-Commerce ‫التجارة اللكترونية‬
Multi-Access * Central Storage
Dumb
Terminals
Host
Databases Host
Systems

Distributed Clients
Databases
Servers

PDA

Internet

Application Web/Edge
Servers Servers
PDA Browsers

‫خادم مركزي في مقركم الرئيس‬
Central Server In your HQ


Imbedded Modules (in some ERP Sys)
Enterprise Document Management System (EDM)
Enterprise Content Management System (ECM)
Enterprise Asset Management System (EAM)
Project Management Software


Imbedded Sub-modules (in some ERP Sys)
Business Intelligence (BI) Systems:
• Enterprise Performance Management (EPM)
• Balanced Scorecards (BSC)
• Key Performance Drivers (KPDs)
• Key Performance Indicators (KPIs)
• Budgeting
• Forecasting
• Ad-hoc queries
• On-Line Analytical Processing OLAP
• On-Line Transactional Processing OLTP
• Data Warehousing
• Etc.

Work Flow ( Organized, Superior Productivity, etc.)


Secure Authorizations & Audit
Trail Digital

The audit trail feature available in some systems
tracks who (user name) did what, when, what’s
the old and new data

Analytics & Reporting

Dashboard: Budgets VS. Actual, Available Resources, etc.

Available for any Industry


will help You

Walk the Walk
not just Talk the Talk
‫نظام تخطيط موارد المنشأة سيساعدكم في‬

‫تسيير المسيرة والمسار‬
‫وليس فقط بالقيل والقال‬

Examples of Local ERP Applications &
Individual Computerized Business Programs
• AccuSoft
• Alameen used by Almazalat
• Albazar
• Almeezan
• Alpha used by Rio Contracting, Almiro Ceramics, Alshuaib Ovens, Durrat Alsharq
• Al Shamil
• Asas
• Aswaq (Ajyal.com) used by Arifco
• Egnaa.com
• EMIS used by Annahdah Medical Co.
• GintSolutions.com used by Mubarak Alqithmi, Fast, etc.

Listing sample customers doesn’t imply the success or failure of their implementations
Listing ERP names doesn’t imply they’re good. Not listing an ERP doesn’t imply it’s bad

Examples of Local ERP Applications &
Individual Computerized Business Programs
• IFS used by Halawani Brothers
• Info used by Sawary
• Injazat ERP
• MFG Pro
• Morooj used by Okaz
• Osus
• Rida used by Labbaik
• SMAAC used by ARTECH - Gulf Arabia for Contracting
• Soft Waves (Profit Waves) used by Batool Publishers
• Venus, Data Ocean used by Heritage Carpets, Seraj Jeddah Tiles, Some hospitals
• Etc.


Examples of Int’l ERP Systems
• ABAS ERP used by Copatra Graphics
• Compiere ERP
• Epicor iScala ERP used Abuljadayel & Jeddah Cables
• Focus ERP used by Aloula RE & SNASCO
• www.Infor.com SSA ERP LN (Formerly BaaN) used by Obeikan
& Mahmood Saeed Groups
• www.JDA.com ERP used by Alothaim
• Microsoft ERP Systems:
www.dynamics.com
(future: Project Green) :
o Axapta ERP used by Alessa Group & Mattex
o Great Planes ERP used by Baghlaf & Albaik
o Navision ERP used by IKEA & Sleep High
o Solomon ERP


Examples
• www.oracle.com Oracle Apps used by Emmar, Attiah
Steel, Rusd Group, Fine, Alkhorayef
o PeopleSoft ERP used by Alajou Group
o JD Edwards ERP used by BEMCO & APSCO

• Orion ERP used by ALFOZAN & AIC Steel
• RAMCO ERP
• www.Sage.com used by WATANIA Group,
• www.Sap.com used by IDB, ARAMCO, SABIC,
Alfaisaliah, Maghrabi Opticals, Banawi, SV
• Visualacc.com
• Ximple by iCAP
• Etc.

What’s the question? W
 Which ERP is the best?
X

 Which ERP is the most suitable  for our
organization?

Which Technology best
satisfies our requirements?
q Which ERP has the highest
probability % of catering to our
organizational needs?


Pre-ERP Selection
 Careful Software Selection is Critical for
Financial Gain. (http://www.idii.com/esn/vol3num02.htm)
 The organization must have already set
across the whole org. its
• Business Processes & Functions (Across
departments)
• Policies & Procedures
• Rules & Regulations


Pre-ERP Selection Steps

B)The Business Management
Drivers answering
why you are considering
investing in such a technology.


Pre-ERP Selection Steps
B) (Management Role & Commitment) The corporate and departmental objectives,
Vision & Mission statement(s) so that all parties involved are going in the same
direction working to achieve the same results with the consulting firm, ERP
implementation partner, solution provider, system integrator, etc.

C) (Role of Departmental Managers) Organizational processes, policies and procedures
(e.g. in HRM: What’s the Recruitment process, Training Process, Workflow,
Career Path Plan, Time & Attendance, etc.) which should lead to the objectives
above.

D) Operational transactions forming each process, i.e. a set of functionalities translating
to system features that make up your organizational needs analysis; i.e. a further
detailed RFP (Request for Proposal) listing your requirements and expectations
from the system. (e.g. inventory management or tracking material in production
process, there may be many systems that perform each detailed function, but
there may only be one or two that perform it the way needed for your business.
These functions should be described by a detailed information flow.)


Important Structures to be Prepared
• Enterprise Architecture
• Business Architecture
• Operations Architecture
• Technology Architecture

They must comply


Project Charter will take time to be composed & will save you a lot of
time, effort & money from project inception to completion

• Step 1: Identify the Project Vision
- Vision
- Objectives: Each objective should be Specific, Measurable, Achievable, Realistic and
Time-bound (SMART).
- Scope & Deliverables
• Step 2: Describe the Project Organization
- Customers: A customer is a person or entity that is responsible for accepting the
deliverables when the project is complete.
- Other Stakeholders
- Roles
- Structure: Project Organization Chart.
• Step 3: Plan the Approach to Implementation
- Implementation Plan
- Milestones: A milestone is typically an important project event, such as the
achievement of a key deliverable.
- Dependencies
- Resource Plan
- Financial Plan
• Step 4: List the Risks, Issues, Assumptions & Constraints

Source: www.Method123.com


Alignment of Business & IT
According to: www.itworldcanada.com
• CIOs must balance portraying themselves as team
players and projecting themselves into leadership
roles. They must be business-savvy and have the
ability to negotiate and support sound opportunity-
seizing business objectives.
• Please, visit this site about the involvement of
Executives: e.g. Does the CEO consistently identify
information technology outcomes as a key measure
of institutional performance, including incentive
compensation goals for the senior team?
Source:
http://www.itworldcanada.com/Pages/Docbase/ViewArticle.aspx?title=The-state-of-the-(IT)-union:-CIO-to-CEO&ID=idgml-9c6c680d-a18b-4cd1-9c7c-cec4ca438724&lid=ee6

http://www.itworldcanada.com/V.aspx?i=9c6c680da18b4cd19c7c


ERP Selection Steps
• Departmental Managers should write their department’s RFP with key employees to
contribute
• Otherwise, Consultants must be scheduled in advance to visit any company looking
for an ERP.
• Writing the AS-IS situation and the TO-BE scenario + Studying the requirements
and analyzing all departmental needs and expectations from the ERP takes months
and must be budgeted for and planned properly. (including business case development & solution
design (The business case quantifies the desired process improvements)
• Consultants will write a REQUEST FOR PROPOSAL (RFP) documenting all
requirements collected from all departments during their study.
(www.technologyevaluation.com :
• The RFP can simplify the software selection process—and alleviate a lot of
headache…
• Save weeks or months of time on your software selection project…
• The RFP document communicates all your software requirements to prospective
software vendors…
• There are 1000s of criteria on 100s of different technological solutions. Having
a professional RFP will help you narrow this down to a shortlist of 3-4
software providers that will satisfy your business requirements


ERP Selection Steps
• The RFP should be given to different ERP vendors so that they
prepare suitable demonstrations to present the modules you
require specifically and give an idea about other functionalities
available in the ERP but not listed in the RFP that may benefit
your org.
• After the demo, proposals are requested for the required modules
and sub-modules (including costs for the application licenses,
implementation, training, any required customizations if needed)
• When a suitable, best ERP fit is selected plan with the solution
provider & pay for a proof of concept (POC) exercise (workshop).
• When the POC step succeeds, an implementation methodology is
set including the time period (in man-days) needed to fully
implement each module and integrate all modules in the ERP


ERP Sys Implementation Project Organization


Don’t Work Hard, Work Smart

Technology, just like HR,
is an investment not an expense.
• Choose the most suitable single point of contact
• Different Technology Providers can be cost-effective vs putting all
eggs in one basket
• Be cautious of sales talks,
involve implementers especially when editing contracts
• Establish Long-Term bonds with solution providers & mutual respect
(e.g. Don’t waste their efforts & be gentle with promises)
• Check references & plan site visits to ERP users
Arabic Proverb: “Ask a patient and don’t ask a doctor” ‫إسأل مجرب ول تسأل طبيب‬
• Guard Professionalism & Business Ethics


Building Trust & Strengthening Relationships
According to "The collaboration advantage," a recent study by the Economist
Intelligence Unit sponsored by SAP,

"The biggest challenge in collaborating with business partners
is building trust. One-half of all respondents say that
trusting corporate partners enough to share information is
the toughest aspect of a new business relationship, and 64
percent of executives agree that strengthening personal
relationships is essential in establishing trust with their
business partners. The lack of trust is a particularly thorny
issue in the area of information technology: less than 20
percent of respondents are prepared to share security
systems, process technology or software applications.”
ARC Advisory Group - neptune.arcweb.com
ARCwire for the Week Ending October 17, 2008


• Ensure ERP User-friendliness
• Administratively, standardize your systems, end-to-end
processes & operations.
• Use standard ERP functionalities developed based on
Best Int’l Business Practices & avoid customizations as
much as possible, i.e. be ready to enhance some organizational policies &
procedures to follow the ERP way
• To secure your organization’s info, sign a non-
disclosure agreement with prospective solution
providers.
• Share your budget with them to make sure both of you
are in the same ballpark range.
• An ERP Implementation Project consist of sub-
projects / phases so you must agree on a project charter
at the beginning of the master plan

Just because it’s a technology, don’t through the
responsibility on the CIO, IT Manager. *Just because
it’ll financially control the whole organization, don’t
through the responsibility on the CFO, Finance
Director.
Users find it difficult to communicate what they want
to technical staff. Thus, focus on the RFP.
Identify Segregation of Duties (SOD)
Re-plan your HR recruitment strategy to start hiring
staff familiar with the new tech implemented across
the org. No matter how intelligent your existing
employees are, they won’t grasp the training material
of the new sys. & keep up with daily tasks.

• Don’t think that you can save time, effort or money
by skipping any step. Going through each step
professionally prepares your company for the change
• When you face a problem with the technology or the
implementation co. or any party:
• * Identify it & find its causes to be avoided
• escalate to the director or the mother co. don’t stick to
the local partner or decide to change the system. (Note
that some Int’l ERP organizations have one exclusive partner and others have multiple)

• If you strategically decide to change the ERP (e.g. you
found a much more suitable ERP after research), don’t scrap the
system, change its ownership.


Automating operations using an ERP system is
a strategic decision and you need to manage
the “change” against routine
Caution: Database Access Authorizations
e.g. Org policy: no data edition at the database level
• Understand org sizes targeted by ERP
providers (Small, Medium, Enterprise Levels)
and be clear about your future projections
• Consider Vertical Solutions, specific to your
industry

Every organization is unique (to a certain extent)
Don’t generalize & Don’t imitate blindly
Don’t go for an ERP just for Prestige
(e.g. problem: users will think it’s an expensive spreadsheet)

• Decide on the operational language vs ERP language
in advance
Right-Left Programming sample problem when typing checks from the ERP:
‫التفقيط: “خمس مائة ألف“ قد تظهر: “فل ةئام سمخ“ بالمقلوب‬
Be excited but not over-excited to avoid “quick & dirty” tasks
Ensure a team-decision
not a One-Man show (begin-end)
"Success occurs when opportunity
and preparation meet ". ERP Recruitment Agency

• Check with 3rd party advisory / consulting firms eg.:
2. The best ERP for your industry / vertical and size
3. The rating of the ERP you already selected and its future
vision.
E.g. Novarica.com, Aberdeen.com, Gartner.com (Bought META Group in
2005), IDC.com, ARC Advisory Group, Nucleus Research,

Accenture.com, McKinsey.com, etc.
Plan for the data entry (e.g. Parallel Run, HR Training – Data
Migration – Data Corruption, Date Changes, etc.)
“Go-Live” to “time-to-benefit” isn’t immediate & requires
patience (Don’t merely listen to: “ERP will solve your
problems” please, understand it)


www.TechnologyEvaluation.com

Other Helpful websites:
www.ITBusinessEdge.com
www.ComputerWorld.com
www.ITToolBox.com
www.InfoTech.com
www.IDII.com

& Many Others

If done: Tangible Benefits of Technology
• IT will no longer be a financial and workforce constraint to
business changes.
• Downtime will be reduced  increased profitability
• It’ll take you a few seconds to generate a report (real-time)
yourself instead of asking someone to prepare it for the next
day or to be prepared for periodical meetings.
• 1000 Transactions  > 1400 Transactions
• A month to introduce a new product  < a couple of days
(Technology aspect)
• Boost productivity & raise customer satisfaction: e.g. fatser
direct-to-consumer or just-in-time replenishment orders
• Perform workload of 3-4 days in a 7-9 hour work-day.
• Business risks & threats become profitable opportunities
because all operations become streamlined.


If done: This wouldn’t have happened
• A Hospital lost SAR 8M
• An Automotive Dealership lost SAR 9M
• An Electronics / Appliances org lost SAR 20M
• A Beverages / Juices org lost US 7M
• A Multi-Industry Group of companies lost > a Billion
SAR
System planning mistakes result in
• delays,
• cost overruns,
• wasted time,
• and ultimately a compromised system.
Much of the trouble can be eliminated by viewing system planning as a data
flow model, with an orderly sequence of tasks that progressively transform
and refine information
www.itbusinessedge.com


Investing in Technology ‫الستثمار في التقنية‬

 Choice of ERP Modules
Application Value + Services ‫ اختيار البرمجيات المطلوبة‬
(‫)سعر النظام + سعر الخدمات )التطبيق & التدريب‬
(Implementation & training)
 Sister Companies (If Group)
‫ عدد شركات المجموعة وعلى كم خادم؟‬
‫ عدد الرخص المسماه للمستخدمين )لكل‬
& on how many servers? ‫موظف سيستخدمه( أو الرخص‬
 Named or Concurrent User ‫المتواقتة / المتزامنة‬
Licenses for employees who will / ‫ نظام الموارد البشرية: عدد ملفات‬
use it ‫سجلت الموظفين‬
 HRMS: Total # of Employee
Records
(e.g. Batch of 1000 for $25000) ‫عقد الصيانة السنوي‬
(e.g. 500 records for payroll EUR7500)
 Annual maintenance contract

Human Capital Managemnt (H.C.M.)
& Identity Management

OR

Human Resources Management Software (H.R.M.S.)

OR

Human Resources Information Systems (H.R.I.S.)


Enterprise Resources Planning Modules

(SCM)
Financial
Quality Accounting Supply Manufacturing Logistics
Management Management Chain /
Management Production

(BI)
Project Business
(CRM) Service / (HRM) Intelligence
Management Maintenance
Dept. Human Analytics &
Customer Resource Reporting
Relationship Management
Management

Focus ‫تركيز‬


Why replace the HR Module of Tier 1 ERPs

GULF-REGION REQUIREMENTS:

HR is country-Specific.

Complementing the Human Resources Management Module / System
integrated with any ERP (or accounting software) to satisfy all
requirements such as:
• Right-Left Alignment
• Hijri Calendar Support
• All regulations (e.g. Saudi, UAE, Kuwait) programmed including
forms (e.g. G.O.S.I. ‫(التأمينات الجتماعية‬
• Multi-language (including full Arabization)
• HR Dev Fund ‫صندوق تنمية الموارد البشرية‬
• Passport Office ‫جوازات‬
• Etc.


Examples of HRM Systems
Also Technological Business Solutions
There are many HRM systems in the market internationally and locally:
• Appian HRMS used by Bugshan-Bridgestone
• www.ATKtech.com/atk_HRMS.htm
• BSHsoft.com
• Civil Soft used by SIC-Banaja & Ben Laden Construction Group
• www.Executrack.com/en/solutions.html
• www.GulfHr.com
• HITS (www.alnafitha.com) used by Basamh Group
• MenaITech HRMS (www.optimizasolutions.com)
• Oasis HRMS (www.saudico.com.sa)
• PeopleGlobe (www.PerformICT.com) used by Arabian Cement & Qatar MA
• www.QCS-sa.com/hrm-management.htm used by Bakheet
• Qusaibi HR used by Altamimi Group
• ZFP (Acrebia) HRMS (www.ZFPit.com) used by Almtbouli Group
• and others

Listing HRMS names doesn’t imply they’re good. Not listing an HRMS doesn’t imply it’s bad

Example of an Org.

The HR Dept. is a function in the org. but it’s the all-encompassing

Why Focus on HR applications
According to Gartner.com:
• To “enhance human resource efficiency and improve employee
resourcefulness.”
• Return on Investment (ROI): make their processes more efficient and
their people more effective.
• “A prime candidate for process improvements — and a "sure shot" for
good payback — are the processes associated with human capital
management (HCM).”
• “Visionaries in this market will look not only at improving administrative
efficiency, but also at developing, enhancing and managing human
capital.”
• Example: “E-Recruitment. One HR process primed for improvement is
new-employee recruitment. Enterprises are looking for vendors that can
help them attract candidates, screen resumes, and manage interviews
and hiring.”

(Publication Date: 10 January 2003/ID Number: LE-19-1149)


HRMS Sub-Modules

e-HRM Time &
Manpower e-Payroll e-
Personnel Recruitment Attendance
Planning &
Org. Mgmt Admin

Training HR Succession
Branches
Management HR Distribution Planning
Appraisals &
Self-Service Evaluations / e-
assessments

HRMS Offer Recruitment to Retirement e-
Services

Time & Attendance - Timesheets


Time-Sheet Management

Multiple benefit, feel free toSheets – Employee Level
For Time spread without changes. Modifications are welcome:

The ERP links all transactions
(e.g. Finance Software and Time & Attendance)

Branch HQ

DELIVERING IT-POWERED BUSINESS INNOVATION

Collaborative, Revolutionized
Paperless, Unwired, Networked
Enterprise


Conclusion: ERP Selection Process
• Goal-setting & Planning
• Knowledge, Experience & Methodology
• Understanding Different Types of Systems
• Performing Success Factors & Avoiding Failure Causes
• Stakeholders Roles & Responsibilities
• Investment – Cost Justification & Sure Return
• Specifications and RFP
• ERP Software Demonstrations & Comparisons
• ERP Software Suppliers Ranking & Selection

• Right the First Time (British movie):
“Concentrate on making things right the first time, rather than finding faults afterwards.”
“Quality Control is everybodies’ business”
 In today’s competitive business world of globalization, you need not to go with the flow but faster, especially if
you want to be a leader in your industry.
 Datamatix Group: Companies that wish to achieve growth in today's business environment must be able to adapt
and keep pace with constant change. They need to find ways to cut costs, while maximizing profits and revenue.

Technology is one of these ways and it’s efficient and effective


Conclusion: ERP’s Chain of Benefits
• Decision makers get a clear visibility over the whole organization, real-time, wherever
they have internet access, on their computer / laptop screens or even their PDAs /
pocket PCs.
• Strengthen organizations to tackle market challenges
• Convert weaknesses into strengths
• Market threats become profitable opportunities
• Control & visibility over all operations
• Cost minimization
• Offer competitive prices
• Get an advantage over your competitors
• Increase your market share
• Leading to increased profitability
• It becomes easier to plan for future growth & org development
• Meet & Exceed your corporate objectives

Rhetorical example: Save five to ten million if you invest say one million in suitable
technologies that satisfy your requirements and adhere to your business workflow,
manufacturing end-to-end processes, HRM policies & procedures, etc. when they
have the organizational readiness and ability to cope with such automated solutions
to become paperless or semi-paperless.


Questions

‫سبحانك ل علم لنا إل ما علمتنا‬
Glory to you,
We don’t know except what you taught us

If what I presented is beneficial, it’s by God’s assistance.
If anything is wrong, remember life is a continuous learning process.


Thank you

Planning Your Company’s Resources
Using Modern Technology
(Business & Managerial Perspectives of ERP Systems)

How Can Technology Serve Organizations

Business-Information Technology Consultant
Work: Consult@NebalAnaim.com
Personal: NEBALS@GMail.com
+966-505610651 84

Your Suggestions
Who strongly believes:
• This seminar should be repeated in Arabic?
• This seminar should be repeated in English?

Who can assist in scheduling it in different cities
with:
• The Ministry of Information?
• The Ministry of trade?
• Etc.


ERP Intro

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