Toward Customer Satisfaction SEC ERP Implementation Project

1. Toward Customer SatisfactionSEC ERP Implementation Project By: Ali K. Al Fardan For Dr. Abdulaziz A. Bubshait 15 January 2007

2. 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

3. Enterprise Resource Planning Systems • Many organizations are turning to ERP systems • To build strong capabilities • Improve performance • Undertake better decision making • Achieve competitive advantage

4. 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

5. 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

8. 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

9. 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

10. 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

11. ERP Department

12. 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

13. Example: Improving customer satisfaction

14. Conclusion • Positives • 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

15. Thank You