Toward Customer Satisfaction SEC ERP Implementation Project By: Ali K. Al Fardan For Dr. Abdulaziz A. Bubshait 15 January 2007
Enterprise Resource Planning Systems ERP is a major investment Companies invest between $50,000 to hundreds of millions It is expected that ERP market reach 1 trillion by 2010 Represents an opportunity to reengineer business process and introduce change ERP is a huge investment. Companies invest between 50,000 Dollars to hundreds of millions. It is expected that ERP market reach 1 trillion by 2010.
Enterprise Resource Planning Systems Many organizations are turning to ERP systems To build strong capabilities Improve performance Undertake better decision making Achieve competitive advantage ERP is a huge investment. Companies invest between 50,000 Dollars to hundreds of millions. It is expected that ERP market reach 1 trillion by 2010.
Enterprise Resource Planning Systems ERP is a packaged business software system that allows a company to automate and integrate the majority of its business processes, share common data and practices across the enterprise, and produce and access information in a real time environment ERP is a huge investment. Companies invest between 50,000 Dollars to hundreds of millions. It is expected that ERP market reach 1 trillion by 2010.
Why ERB Implementations Fails? According to one study administered to Chief Information Officers of Fortune 1000 companies showed that the top five critical success factors of ERP implementation projects were: Top management support Project Champion Change management and culture Team work Project management ERP is a huge investment. Companies invest between 50,000 Dollars to hundreds of millions. It is expected that ERP market reach 1 trillion by 2010.
SEC is Transforming through Nebras Nebras: is a strategic initiative of implementing an ERP system Nebras as a continuous program Feasibility study started on 2003 and approved in 2004 1st phase of the project started on August 2005 with projects for Finance and HR followed in 2006 by projects for distribution & customer service and logistics business lines. Nebras goal: to replace existing processes and procedures with international best business practices company-wide using best technological tools available
Business Process Re-engineering It is a fundamental and radical redesign of business processes Normally BPR is associated with ERP implementation projects Organizations should be willing to change their business processes according to those depicted by the system to have full advantage of the ERP system capabilities BPR principles requires a decentralized decision making which has the effect of flatten org layers Successful business process re-engineering requires top management commitment, setting demanding goals, anticipating resistance, focusing on business practices (empowerment, teamwork, innovation…etc) and following up. Re-engineering business processes around the ERP software is critical for successful implementation
Business Drivers Improve customer service Integrate into one system from four (from 4 to 1). Currently there are many fragmented information systems for each operating area (Eastern operating are, Western operating are, Central Operating area and south operating area). Drive efficiency into business processes Integrity (financial) removal of redundancy in process and systems Information security Single information source
ERP Department
Implementation Methodology SEC chose to have a vanilla implementation of the system and replace existing business processes and procedures with those embodied in the system SEC used standard SAP implementation methodology which represent SAP experience in this field
Example: Improving customer satisfaction
Positives Concerns Conclusion CEO sponsorship Striving BPR Striving Team work Heavy involvement of business employees in the projects Concerns BPR – Empowerment – Flatten Organization Education of middle level management about the program
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