Al-Falak seminar at Eastern Province Chamber of Commerce and Industries highlights the problems in ERP implementation
Posted: 6 July 2004
“Trained staff can contribute to maximizing the benefits of ERP implementation,” says Ahmed Ali Ashadawi
In a step to boost IT adoption by businesses and public sector organisations in Saudi Arabia, the Eastern Province Chamber of Commerce and Industries recently organized a seminar on Enterprise Resource Planning (ERP) systems at Al-Khobar.
The seminar highlighted the importance of ERP in streamlining business operations and increasing profitability; defined the parameters to be considered while implementing ERP; and showcased proven methodologies for easing implementation difficulties, including training and management involvement, encountered by businesses while adopting ERP solutions. The seminar was addressed by Ahmed Ali Ashadawi, President and CEO, Al-Falak, the leading IT and Communications solutions provider in the GCC (Gulf Cooperation Council) region.
Addressing the seminar, Ashadawi, said, “Enterprise Resource Planning is a fully integrated software solution that can run entire back office processes, thus eliminating redundant work-hours and freeing resources for front office operations. In today’s markets, where customers demand quality in services as well as products, ERP will have an important role to play in increasing the profitability of businesses, whether they are big banks, industrial establishments or enterprises in the retail sector.”
“In the past organizations would use different software packages for the different business units with very little or no integration between the actual operations of each department. This would result in repetitive data entries, increasing the risk of human error, as well as longer turn around time in case something had to be traced through different departments. ERP solutions combine the entire organisations resources into a single, integrated software program that runs off a single database so that the various departments can easily share information and communicate with each other. This integrated approach can have a tremendous payback if companies make optimum use of ERP solutions,” explained Ashadawi.
The on-ground implementation of ERP, which integrates disparate organisational workflows in Financial Management; Distribution & Logistics Management (Supply Chain); Manufacturing Management; Maintenance Management; Human Capital Management (HR & Payroll); and Customer Relationship Management (CRM), faces numerous problems that delay or reduce the actual return on investment. Such problems include the lack of a dedicated project team; lack of Top Management involvement and Sponsorship; major customization; resistance to the adoption of best practices; lack of right technical skill sets; and poor planning.
According to Ashadawi, the imperatives of successful implementation of ERP include adoption of the best practices business processes available in the ERP solution; following the parameterized solution to match the actual business processes; re-engineering the processes according to the ERP standards; and conducting Functional Gap Analysis to quantify the efficacy of processes.
Al-Falak’s has been providing ERP solutions to the Middle East market since more than 12 years. It has highly trained and skilled consultants that can offer total installation and integration assistance to businesses exploring the ERP options. Ashadawi drew upon the company’s experience in the market to illustrate the presentation with case studies and open-ended discussion with the participants.
The cost of implementation of ERP solutions would normally cover investment into setting up the organization’s IT infrastructure, purchasing the hardware required, creation of integrated database for the organisation, and the cost of professional services provided by the implementation team. According to a research conducted by the META Group covering Large Enterprise, as well as SMBs (Small and Medium businesses), the Total Cost of Ownership (TCO) could vary from an average of US$ 15 Million, to a high of US$ 300 Million for very large organisations and a mere US$ 400,000 for smaller organizations. While the implementation period can last from 12 to 24 months, most organisations begin to register a Return on Investment (ROI) after 3 years.
An estimated 200 decision makers from all segments of Al-Khobar’s business community attended the seminar.
Al-Falak Electronic Equipment & Supplies Company is one of the leading suppliers of network solutions, computer hardware, application software, manpower and IT consultancy services within the Middle East. Since its formation in 1981, the company has provided the information infrastructure to many prestigious organizations, which range from practically every government ministry and agency to universities in Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Qatar and Oman, as well as domestic and international private companies.
Al Falak’s name is now practically synonymous with IT in the region. This 100% Saudi owned company has built upon its platform of existing partnerships with some of the most reputable companies in the IT industry. The majority of their staff is IT professionals, consultants, specialists or technicians. This combination helps to ensure that Al-Falak keeps fully abreast of industry standard platform changes to offer constantly updated systems integration, installation, programming, training and support.
For further information please visit: www.alfalak.com
Posted by Richard Price,
Editor Pipeline Magazine
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