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
Enterprise Resource Planning Systems

Many organizations are turning to ERP
systems
 To build strong capabilities
 Improve performance
 Undertake better decision making
 Achieve competitive advantage
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
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
SEC is Transforming through Nebras

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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
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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

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

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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
Executive Committee
(CEO + all Executive and Senior VPs)
Steering Committee
Project Owner and concern VPs
ERP Department & Project
Manager
Project
Coordinator
Solution Architect
Cost Engineer
Finance Project
Manager
HR Project
Manager
Distribution &
Customer Service
Project Manager
Logistics Project
Manager
Technical
Development
Manager
Change
Management and
Training Manager
Implementation Methodology

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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
Conclusion

Positives

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CEO sponsorship
Striving BPR
Striving Team work
Heavy involvement of business employees
in the projects
Concerns

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BPR – Empowerment – Flatten Organization
Education of middle level management
about the program
Thank You