Quality in Technology Selection · o Great Planes ERP used by Baghlaf & Albaik o Navision ERP used...

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Quality in Technology Selection(ERP Focus – Corporate Perspective)

How Can Technology Serve Organizations

Nebal Abdulrazzak AnaimTechnological Solutions Consultant

& Business Analyst Work: [email protected]: [email protected]

+966-505610651


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 Webpages2007: 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 الجمھور

حیاكم اهللا جمیعا مھما كان تخصصكم

:المستھدفین:صناع القرار الذین ینوون اختیار أنظمة تطبیقات مناسبة أو عندھم مشاكل في األنظمة الحالیة

مستشاري اإلدارة والھندرة•.أعضاء مجالس اإلدارة•. المدراء العامین ومن یحل محلھم•.رؤساء األقسام•.مدراء الوحدات المختلفة•

Whatever your specialization isAudience:

Decision-Makers who intend to select suitable application systems or have problems with existing systems:

• Management & Re-engineering Consultants• Members of the Boards of Directors (& VPs)• General Managers & their replacements• Departmental Directors• Section Heads/Supervisors


Abstract Introduction:Executive Managers of organizations from

different industries and sectors always strive to findsolutions to improve the way their organizations are run.There will come a time when they realize that technologyhas effective & efficient solutions to assist them inachieving their corporate objectives. Enterprise ResourcesPlanning Systems, abbreviated as ERP (MRPII), representcomputer software technologies that link all departments inone automated system (some of them web-based).

Around 61% of ERP implementation projects fail according to international & local statistics derived from studies conducted by consulting firms & solution providers.


Agenda: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 executionSuccess factors and how to apply them.Failure factors and how to avoid them.ERP Software Licensing & Pricing SchemesOut of all ERP Modules why's the HRM software unique in the Gulf Region?Examples of HRM Systems & their integration to ERP SystemsERP & Business Intelligence (BI) SystemsIn addition to other related topics


(SCM)

SupplyChain

ManagementManufacturing

/ Production

FoundationFinancial

AccountingManagement Distribution

Service / Maintenance

Dept.(HRM)Human

ResourcesManagement

Project Management

(PM)

(CRM)

Customer

Relationship

Management

BI:Analytics & Reporting

Sample of Enterprise Resources Planning (ERP) Modules

Different Management Programs& computerized Business Applications

that are linked


Previously: Paperwork + Different Programs (If any)


Avoid Common MistakesAvoid 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???


Planning the Resources of your Enterprise

العمالءالعمالءClientsClients

الموارد البشریةالموارد البشریةHuman ResourcesHuman Resources

المالیةالمالیة//المحاسبةالمحاسبةFinance/AccountingFinance/Accounting

المعارضالمعارض//المبیعاتالمبیعاتSales/ShowroomsSales/Showrooms

المستودعات والتوزیعالمستودعات والتوزیعWarehouses & DistributionWarehouses & Distribution

التصنیع واإلنتاجالتصنیع واإلنتاجManufacturing/ProductionManufacturing/Production

تقاریر تقاریر إحصائیةإحصائیة

Statistical Statistical ReportingReporting


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

Enterprise Resources Planning System


An ERPis one

Multi-software Systemthat

connects / links / integratesall Departments

Therefore,


Factsحقائق من مشاریع التطبیقات تفشل% 61.25

61.25% of ERP Implementation Projects Fail.تتوقف خالل مراحل التطبیق. م.م.من مشاریع برمجیات ت% 50

50% of ERP software projects are terminated somewhere along the implementation process.

) غیر مرضیة(بأنھا ضعیفة ) الموظفین(حكم علیھا المستخدمین % 75)من التي تم تطبیقھا ووصلت إلى المرحلة العملیة(

75% are rated poor by the users (Of those that are implemented and reached the operational phase).


?Whyلماذا؟ أسباب ھذه األرقام المحزنة

The reason for these disappointing numbers is too often based on غالبا یعتمد على

a lack of عدم وجودknowledge المعرفة

Experience الخبرةOr أو

آلیة الختیار نظام تخطیط موارد المنشأةERP system selection methodology


Cost justificationis 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• Software and hardware maintenance; • Communications equipment and installation; • Education and training• Conversion of initial operating expenses• Consultant and temporary staff expenses, until the new

operating environment settles down.


Best Justifications Match Technology Project Goals To Org’s Business Objectives

Some of the major elements of a justification model:

• Benefits 1) day-to-day savings that eventually aid the bottom line

2) increased working capital (cash availability)

• Revenue and Profits

• Inventory Management – Inventory is the repository of many of the company’s past mistakes

• Purchasing control - Fewer shortages improve manufacturing performance.


Human Factor

• Users are unprepared for the size of the task; • System information flow is not defined; • No support from upper management; • 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 and dis-interest spreads.

To lessen 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


Benefits of an ERP

• Visibility on all operations and future path• Much easier, faster & cost-efficient to introduce a new

product (e.g. if U R a manufacturer)

• Identifying faults and planning improvements: What if you need to know the life cycle of a product?

• Better & faster Inventory Management• Process Improvement based on historical methods• Real-Time operations using networking technologies

for multi-access


Paperless Work Environment

أنظمة تخطیط موارد المنشأة تبرمج األعمال وتجعلھا آلیةERP systems Program & Automate Work functions


Benefits of an ERP

• 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 >>>


Multi-Access * Central Storage

ApplicationServers

Web/EdgeServers

DumbTerminals

HostSystems

Host Databases

Clients

Servers

Browsers

Internet

PDA

DistributedDatabases

PDA

خادم مركزي في مقركم الرئیسCentral Server In your HQ

e-Commerceالتجارة اإللكترونیة


Imbedded Sub-modules (in some ERP Sys)Document Management System (DMS)Content Management System (CMS)Business Intelligence (BI) Systems:

• Business Performance Management (BPM)• Balanced Scorecards (BSC)• Key Performance Drivers (KPDs)• Key Performance Indicators (KPIs)• Budgeting• Forecasting• Ad-hoc queries• OLAP – OLTP• Data Warehouse• Etc.


Work Flow (Organized, Superior Productivity, etc.)


Secure Authorizations & Audit Trail

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

the old and new data

Digital

For benefit, feel free to spread without changes. Contributions are welcome: [email protected]: Budgets, Available Resources, etc.

Analytics & Reporting


Available for any Industry


Examples of Local ERP Applications & Individual Computerized Business Programs

• AccuSoft• Alameen used by Almazalat• Alpha used by Rio Contracting• Asas• EMIS used by Annahdah Medical Co.• GintSolutions.com used by Mubarak Alqithmi, Fast, etc.• IFS used by Halawani Brothers• Info used by Sawary• 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.

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


Examples of Int’l ERP Systems• ABAS ERP used by Copatra Graphics• Epicor iScala ERP used Abuljadayel & Jeddah Cables• Focus ERP used by Aloula RE & SNASCO• www.Infor.com SSA ERP (Formerly BaaN) used by

Nesma & Partners Contracting (Formerly Nesma-Alfadl)

• Microsoft ERP Systems:www.dynamics.com(future: Project Green) :

o Axapta ERP used by Alessa Group & Mattexo Great Planes ERP used by Baghlaf & Albaiko Navision ERP used by IKEA & Sleep Higho Solomon ERP used by SPIMACO الدوائیة



Examples• www.oracle.com Oracle Apps used by Emmar,

Attiah Steel, Rusd Group, Fine, Alkhorayefo PeopleSoft ERP used by Alajou Groupo JD Edwards ERP used by BEMCO & APSCO

• Orion ERP used by ALFOZAN & AIC Steel• www.Sage.com used by WATANIA Group,• www.Sap.com used by IDB, ARAMCO, SABIC,

Alfaisaliah, Maghrabi Opticals, Banawi, SV• Visualacc.com



What’s the question?

Which ERP is the best?X

Which ERP is the most suitable of our organization?


ERP Selection Steps

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

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.


ERP Selection Steps• Consultants must be scheduled in advance to visit any company looking for

an ERP.• Studying the requirements and analyzing all departmental needs and

expectations from the ERP takes months and must be budgeted for and planned properly.

• Consultants will write a REQUEST FOR PROPOSAL (RFP) documenting all requirements collected from all departments during their study.

• 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


Avoid Common MistakesDon’t Work Hard, Work Smart

Technology, just like HR,is an investment not an expense.

Choose the most suitable single point of contactDifferent Technology Sources Can be cost-effective vs putting all eggs in one basketBe cautious of sales talks,

involve implementers especially when editing contractsEstablish Long-Term bonds with solution providers & mutual respect(e.g. Don’t waste their efforts & be gentle with promises)

Check references & site visits to ERP usersGuard Professionalism & Business Ethics


Avoid Common MistakesPlan for the data entry (e.g. Parallel Run, HR Training –Data Migration – Data Corruption, Date Changes, etc.)

Ensure ERP User-friendlinessUse standard ERP functionalities developed based on Best Int’l Business Practice & avoid customizations as much as possible, i.e. be ready to enhance some organizational policies & procedures to follow the ERP wayJust because it’s a technology, don’t through the responsibility on the CIO, IT Manager.


Avoid Common MistakesDon’t think that you can save time, effort or money by skipping any step. Going through each step professionally prepares your company for the changeWhen you face a problem with the technology or the implementation co. or any party:

* Identify it & find its causes to be avoidedescalate 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 it ownership.


Avoid Common MistakesAutomating operations using an ERP system is a strategic decision and you need to manage the “change” against routine Caution: Database Access Authorizations

Org policy: no data edition at the database levelUnderstand org sizes targeted by ERP providers (Small, Medium, Enterprise Levels) and be clear about your future projectionsConsider Vertical Solutions, specific to your industry


Avoid Common MistakesDon’t generalize. Every organization is unique to a certain extentDon’t go for an ERP just for Prestige(e.g. users will think it’s an expensive spreadsheet)

Decide on the operational language vs ERP language in advance

Right-Left Programming example when typing checks from the ERP:

بالمقلوب” فأل ةئام سمخ“: قد تظھر” خمس مائة ألف“: التفقیطArabic Proverb: “Ask a patient and don’t ask a doctor”

إسأل مجرب وال تسأل طبیبEnsure a team-decision

not a One-Man show (begin-end)


www.TechnologyEvaluation.com


Licensingالترخیصات

اختیار البرمجیات المطلوبة)التدریب &التطبیق (سعر الخدمات + سعر النظام (

عدد شركات المجموعة وعلى كم خادم؟ عدد رخص المستخدمین المتواقتة /

المتزامنةسجالت / عدد ملفات : نظام الموارد البشریة

)دوالر أمریكي25000تكلف 1000: مثال( الموظفین

عقد الصیانة السنوي

Choice of ERP ModulesApplication Value + Services (Implementation & training)

Sister Companies (If Group)& on how many servers?

Concurrent User Licenses HRMS: Total # of Employee

Records (e.g. batch of 1000 for $25000)

Annual maintenance contract


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

OR

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


SupplyChain

ManagementManufacturingFoundation

FinancialManagement Distribution

Service / Maintenance

Dept.Human

ResourceManagement

Project Management

CRM

Analytics & Reporting

Enterprise Resources Planning Modules

HR HR FocusFocusتركیز تركیز


Why replace the HR Module of Tier 1 ERPs

GULF-REGION REQUIREMENTS:

HR is country-Specific.

We are 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. التأمینات اإلجتماعیة)• Multi-language (including full Arabization)• HR Dev Fund صندوق تنمیة الموارد البشریة• Passport Office جوازات• Etc.


Examples of HRM SystemsAlso 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• Mena HRMS• 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



Example of an Org.

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


Why Focus on HR applicationsAccording 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)


e-Payroll e-RecruitmentManpower

Planning & Org. Mgmt

Time & Attendance

BranchesHR Distribution Appraisals &

Evaluations / e-assessments

Training Management

HR

Self-Service

SuccessionPlanning

HRMS Sub-Modules

e-HRMPersonnel

Admin

HRMS Offer Recruitment to Retirement e-services


e.g. Time & Attendance - Timesheets


Paperless, unwired, networkedEnterprise


Conclusion: ERP Selection Process• Goal-setting & Planning• Knowledge, Experience & Methodology• Understanding Different Types of Software & avoiding

Failure• Roles & Responsibilities• Investment – Cost Justification• Specifications and RFP• ERP Software Demonstrations & Comparisons• ERP Software Suppliers Ranking & Selection• "Concentrate on making things right the first time, rather than

finding faults afterwards." Right the First Time movie. In today’s competitive business world of globalization, you

need not to go with the follow but faster, especially if you want to be a leader in your industry.


Safe Senders ListIn your e-mail configuration put:• [email protected]• [email protected]• [email protected] safe senders so that e-mails go to your inboxnot spam/junk

If what I presented is beneficial it’s by God’s assistance.If anything is wrong I’ll always be learning until death.

Contributions & corrections are welcome.


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How Can Technology Serve Organizations

Focus: Enterprise Resources Planning Systems

Business & Managerial Perspectives

Thank youQuestions

Nebal Abdulrazzak AnaimBusiness-Information Technology Consultant

Work: [email protected]: [email protected]

+966-505610651

Quality in Technology Selection · o Great Planes ERP used by Baghlaf & Albaik o Navision ERP used...

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Transcript of Quality in Technology Selection · o Great Planes ERP used by Baghlaf & Albaik o Navision ERP used...