Unit 305 – Operations Management

ENHANCE INTEGRATION IN ORGANIZATIONBY IMPLEMENTING ERP SYSTEM

LECTURER: DR. TONY JEWELS

SUBMISSION DATE: 12/05/2014STUDENT NAME: Ahmed Mohamed Abd El Aziz Saleh

Page | 1

STUDENT ID: 872001Location: Al Ain, UAE

1. Executive SummaryThe purpose of this report is to describe and examine how Khadamat Facility Management (KFM), can manage to utilize the available technology in the market to have better and more efficient Operation Management and to achievesustainable competitive advantage and to increase its market share. In the below report we will explain the strategy KFM acquired during the process ofhave new ERP system.

The objectives from the findings of this report: To enhance the Service provided to UAE University by Khadamat. Ability to achieve the company Key performance indicators KPIs. Exceeding the customer expectations. Reduce the cost and increase the revenue without compromising the

quality. Investigate persisting business problems in an organization that you are

familiar with Suggest a suitable approach to implement such systems successfully. Explore suitable Information System solutions. Following the company vision of achieving Operational Excellence.

KFM will be implementing its strategy of having new ERP system which covers most of its requirement and the integration between the departments that KFMlacked from before due to using more one system.

The success of implementing new ERP system can be the excessive analysis of the firm requirement and selecting the right team to manage the system life cycle process:

Pre-Implementation Implementation Post-Implementation

As result to the success in implementing the new ERP system KFM become closer to its vision which mainly about the following:

World class best practice. Operating efficiencies.

Page | 2

Effective service delivery. Value for money.

Also after reading this report we will be able to

Describe why business, mission, culture, and goals are important in organizations.Understand how organizations set strategic directions by assessing where they are now and seek to be in the future.

http://www.oocities.org/shaw4545/mk/kerinmarketing2.htm Access on 10/05/2014

Table of ContentsUnit 305 – Operations Management..............................................1Enhancing The Integration In the Organization.................................1

1. Executive Summary.........................................................2Table of Contents.............................................................3

Table of Figures..............................................................32. Introduction..............................................................4

Organization Background.....................................................43. What is ERP system........................................................5

4. Defining the problem......................................................75. Case Description& Analysis................................................9

6. SWOT Analysis For The Organization.......................................107. Alternative Solutions:...................................................11

8. System Life Cycle........................................................119. Quality Policy Statement.................................................12

10. Conclusion..............................................................1311. References..............................................................14

Page | 3

Table of FiguresFigure 1 - Key Performance Indicator...................................5Figure 2 - The List shows some of the many functions supported by an ERP.......................................................................6Figure 3 - Dimensions of Information Systems...........................9Figure 4 - Laudon & Laudon's module...................................10Figure 5 - SWOT Analysis for Khadamat Facility Management.............11Figure 6 - Comparison of the strengths and weaknesses of SDLC.........12Figure 7 – ISO9001 log................................................13

Page | 4

2. IntroductionOrganization Background

Etisalat is an international, blue-chip organisation with operations in 19 countries across the Middle East, Africa and Asia. It is one of the leading telecom operator with one of the largest market capitalization among Middle East, African and Asian telcos. It is a highly rated telecom company with ratings from Moody’s, Standard & Poors and Fitch (Aa3/AA-/A+); with low leverage and strong UAE Government support.

Etisalat’s focus is on delivering innovative solutions to transform the communities in which it operates and fast track social development and economic growth. This is underpinned by its commitment to actively develop and engineer platforms for growth within the local markets in which it operates through the deployment of advanced technologies, quality networks and customer focused services.

Figure (1) Key Performance Indicator Etisalat has always been strong and aggressive competitor and the reason behind that is ensuring the quality of the service by monitoring the performance using the KPIs below. The KPI process is a whole life project process of evaluating project key performance indicators andteam key performance indicators throughout, and following, the design and construction of new services or facilities, as well as upgrading the currentservice. (cross sales and up sales policy)

Page | 5

There are a wide selection of project, contractor and consultant KPIs with the potential formeasurement, however, any KPI used routinely within the following

Quality of Service Parameters includes:1. Fixed Network based Voice Services:• Network Availability of main Telephone Exchange Equipment• Network Effectiveness Ratio 2. Mobile Network based Voice Services:• Network Availability – Core & Radio Network• Call Success Rate• Call Drop Rate• Call Setup Success Rate3. Additional parameters• Dial up connection

file:///C:/Users/Zezo/Downloads/Mobile-Fixed-Network-Quality-of-Service-Report-(2013)_English_full_13.3.2013.pdf

3. Approach to Internationalisation/ Globalization

Etisalat is always seeking for new opportunities wide world to expand its market, following Etisalat Vision and mission it has been growing rabidly recently as going to be discussed below. By the diversity in geography and product/service to create and sustain the most valuable business for the stakeholders in line with the group’s objective, which will maximize shareholder’s return, maximize the economic benefits for host government/communities, maximize the successful delivery of customer’s needs, creating worldwide growth opportunity for employees andcreating an attractive destination for investors.

http://www.etisalat.com/en/ir/faqs.jsp

Page | 6

4. International market entry analysis

The Structured Entry Approach Franklin Root suggests a model for entering international markets It is based on the conclusion that success in market entry results

from a systematic approach to planning & implementing internationalbusiness strategy

Basic elements of this model are to: Assess the products in relation to the markets Set up objectives & goals Choose the entry mode Design the marketing plan Market Analysis The most important tools to use to analyse a potential market is an

independent market analysis & a sensitivity analysis A thorough & reliable market analysis should be conducted by market

experts who are able to assess genuinely representative sample

A sensitivity analysis should be done to determine what happens if you under- or over- estimate the key features of the market such as likely sales volume, sales price & customer demands

Market Analysis The most important tools to use to analyse a potential market is an

independent market analysis & a sensitivity analysis A thorough & reliable market analysis should be conducted by market

experts who are able to assess genuinely representative sample A sensitivity analysis should be done to determine what happens if

you under- or over- estimate the key features of the market such as likely sale volume, sales price & customer demands

Timing Issues The main timing issues to consider when planning entry to new

markets are: Is the organisation ready? Financial preparedness

Page | 7

Organizational readiness Stakeholder support Is the market ready? Economic activity to support a profitable business extension Demand for the product or service Does demand match the capabilities that you wish to transfer to

this environment? What stage is the market entry at? How saturated is the market by

international & domestic suppliers?

Entry Mode Analysis Dunning’s eclectic theory provides a helpful perspective from which

to view market entry strategies In addition to this, availability of R & D for global products &

services is becoming an increasingly important component of international business strategy

Also, international market entry requires financing & its availability varies from one country to another

Systematic versus intuitive approaches to market entry Systematic approaches focus more on long-term opportunities &

ensure that organisation is well established to take advantage of opportunity

http://www.etisalat.com/en/ir/faqs.jsp

5. Etisalat StrategyConsidering the following 5 aspects will help ton succeed in emerging markets. In recent years, the Etisalat Group (EG) has been successfully engaged in a strategy of growing its international operations at record rates, while also maintaining the core strength of its domestic business in the UAE. In 2012, the group updated its corporate strategy from the ENGAGE pillars that were presented in the past to a newer, fresher outlook that setsEtisalat at the heart of a rapidly evolving telecoms industry.

Etisalat's refreshed corporate strategy aims to enhance the company's focus and attention towards the most critical internal and external factors, which will shape its long-term aspirations. EG recognises that within the global

Page | 8

telecoms industry it is facing new and exciting opportunities; the sector is transforming rapidly due to changes in consumption patterns and strong innovations in technology, and the company believes that telecom operators will remain the key enablers of the "Connected Society" of the future. Operators, like EG, will play a vital role in enhancing the customer's experience by leveraging their in-depth knowledge of the customer, deploying enabling platforms for the overall industry and providing the much needed access infrastructure. With the increased complexity in the market comes further emphasis on operators to engage collaboratively with newer entrants in the digital world, which Etisalat is embracing through a wide range of international partnerships.

Looking forward, the worldwide telecommunications industry – with revenues ofapproximately USD1.7 trillion at the end of 2013 – will continue to representa sizeable and attractive industry. In the coming years, the sector's growth potential will be driven largely by emerging markets, where EG will continue to play an active role. In Etisalat's current footprint alone, it is envisaged that there will be significant growth potential in the telecommunications industry, providing EG ample room for further growth. Thisgrowth will be driven primarily by broadband, as well as voice in some markets, and new revenue streams across the company's footprint. The potential opportunities from the enterprise segment, as well as the fixed line business, also remain significant in selected markets. Etisalat fully intends to be one of the leaders of this growth and the company's new 'six pillars' strategy captures its plans to achieve that ambition.

EG's 2017 vision and mission have been established with these thoughts in mind. The new strategy also has several principal pillars designed to deliverthe objectives of the organisation. EG believes that the pillars of Service Offering, Customer Experience, Operational Excellence, Portfolio, One Companyand People & Culture are the cornerstones of the organisation's five-year strategy.

The main companies in which Etisalat invested and in which markets they operate

Page | 9

6. Defining the problem6.1 Operations Strategy To help identifying the problem and finding the relevant solution we need to understand that Operations Strategy consists of goals, plans, and a directionfor the operations function that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm.

There are normally three levels of strategy:

Corporate (or organisational) strategy

The corporate level is where top management directs overall strategy forthe entire organization.

Business unit (or tactical) strategy

The business unit refers to an organization that markets a set of related products to a clearly defined group of customers and set the direction for their products and markets.

Operations (or operational) strategy

The Operations level is where groups of specialists actually create value for the organization.

(Lecturer presentation, DR Tony Jewels 2014)

http://www.oocities.org/shaw4545/mk/kerinmarketing2.htm

6.2 Benchmarking  Is discovering how others do something better than your own firm so you can imitate or leapfrog competition.

In order to be able to compete better in the market we need to reduce the cost of our service as of now Khadamat Facility Management is the most expensive Facility Management in UAE. We need to reduce our cost without compromising our quality which is our trade mark.

We took the following steps to achieve successful process improvement

Step 1 - Initiate Improvement Program

Page | 10

Identify the business needs and drivers for process improvement.

Critical groundwork is completed during this step. The business reasons for change are clearly defined as effective process improvement must be driven by the organization needs and business goals

Identify the business needs and drivers for process improvement.

Document high level Improvement Plan i.e. general improvement goals & objectives established from business needs of your organization – this ensures your PI program is linked to your business goals.

Educate all staff members on reasons for and benefits of process improvement and change principles - this will help to build support and assess the climate for change.

Provide orientation to business units on benefits of and reasons for PI.

Obtain senior management approval for Improvement Plan and their commitment on the allocation of time and resources necessary.

Establish required infrastructure for implementing improvements and assign appropriate resources i.e.

Communicate the start of the PI initiative to all staff and business units.

Step 2 – Evaluate Current Practices

This step involves gaining a complete understanding of the current state of practices within an organization. Once this is understood then the organization can prioritize and plan how to progress forward.

Plan & perform baseline assessment (is recommended to use a recognized model such as the CMMI).

Present findings and recommendations to organization

Step 3 - Establish New Processes

The activities in this step ensure the implementation of the work that has been planned and prioritized in previous steps.

• Kick-off Process Group and document their own procedures and guidelines

• Kick-off Process Improvement Teams - PIT and agree and document detailed plan for tasks & agree key milestones

• Ensure each PIT understands their objectives & goals – provide training if necessary

Page | 11

• Workshops for each PIT to agree and define process for their area of Improvement

• Each PIT define solutions for areas prioritized in PI plan

• Solutions reviewed with Peers and Process Group

• Pilot solutions on appropriate projects & make amendments as necessary

• Train appropriate members of staff on new processes and ensure anyone not directly involved in the use of the processes is aware of their existence andpurpose

• Formally release new processes for use to whole organization – ensure are centrally available

Step 4 – Learn

This step evaluates whether planned targets have been achieved and expected benefits have been delivered. Remember process improvement is a continuous activity, which supports your organization to continuously evolve to meet itsbusiness goals. Therefore, once an improvement cycle has been completed, thatis the time to think again what are the organization’s objectives and what can be improved to better achieve them. Then a new improvement cycle can be started.

• Monitor use of new processes on a regular basis

• Provide on-going mechanism for ‘Change Requests’ to be raised, analyzed, reviewed and implemented as necessary

• Gather lessons learned from relevant users of new processes

• Highlight successes

• Plan ‘Round 2’ based on improvements required

http://www.cse.dcu.ie/downloads/process/Recommended-Steps-for-Successful-Process-Improvement.pdf

7. Case Description& Analysis

Page | 12

Here we are going to explain why Khadamat Facility Management (KFM) needs new Information System.KFM Systems are suffering from many breakdowns as lake of integration, Time Consuming, Work duplication, less efficient, week reports. Top management at KFM decided to use one system for the whole company ratherthan the different systems we are currently using.

Figure (3) Dimensions of Information Systems (Chifley Business School MIS Lecturer presentation)

After deciding what Khadamat Facility Management (KFM) wants from IS. We identify Some system limitation, repeated incidents of system failure, delay and interruption theCompany’s executive management issued a directive that the company would move toward a single information system for all current and future departments in a new ERP system or acquire the enhanced and upgraded versionof the existing system. Therefore,it was decided to constitute a core team comprised diversified subject matter experts and businessmanagers in order to carry out the sensitive responsibility of selecting thebest solution which meetsstakeholders’ requirements and enable the achievement of KFM strategic objectives.http://www.ameinfo.com/ 223341.html , 2010. (Sample Assignment) Here we decided to follow Laudon & Laudon's Four-Step Problem-Solving module in implementing its new IS

Page | 13

Figure (4) Laudon & Laudon's module (Chifely Business School MIS Lecturer presentation)

8. SWOT Analysis For The Organization

Strengths, Weaknesses, Opportunities and Threats. The fundamental objective of a SWOT analysis is to identify those trends, forces, conditions and factors that potentially affect the formulation and implementation of the organizations three tiers of strategy.

The external analysis will result in a list of opportunities and threats whereas the internal analysis will result in a list of strengths and weaknesses.

The below is SWOT analysis for Khadamat Facility Management.Page | 14

The First step towards successful operations is to identify your Strengths and Weakness, the SWOT analysis is the best to provide you with this information.

Figure (5) SWOT Analysis for Khadamat Facility Management

Page | 15

Strengths Weaknesses Political support to KFM Quality of the Service Funding available Market experience Strong leadership Charity

Project is very complex inUAE university

Likely to be costly May have environmental

impact Very strong competition

Opportunities Threats Innovation Cooperation between

municipalities Project may improve local

economy Will improve safety Project will boost

company's public image

Environmental protection Time delays Opposition to change Long-Term planning still

problematic

9. Alternative Solutions:As part of the designated team responsibilities was to identify any alternative solutions and after analyzing the exact requirement we found the solutions available for us are the following.

I. Implementing new IS which can provide the company with the integration between the departments and the other requirement aforementioned.

II. Our IT Team can coordinate with the support of our systems providers and try to reduce the integration gab.

10. System Life CycleThe systems development life cycle (SDLC), also referred to as the application development life-cycle, is a term used in systems engineering, information systems and software engineering to describe aprocess for planning, creating, testing, and deploying an information system. The systems development life-cycle concept applies to a range of hardware and software configurations, as a system can be composed ofhardware only, software only, or a combination of both.

Figure (6) Comparison of the strengths and weaknesses of SDLC:

Strengths Weaknesses

Control. Increased development time.

Monitor large projects. Increased development cost.

Detailed steps. Systems must be defined up front.

Evaluate costs and completion targets. Rigidity.

Documentation. Hard to estimate costs, project overruns.

Well defined user input. User input is sometimes limited.

Ease of maintenance.

Page | 16

Development and design standards.

Tolerates changes in MIS staffing.

http://en.wikipedia.org/wiki/Systems_development_life_cycle Access on 10/05/2014

11. Quality Policy StatementKhadamat Is committed to providing our clients with products and services that are in conformance with the specified standards and specifications. We will also ensure that we maintain a flexible and professional approach to service delivery.

11.1 Our Objective is to: Measure and report on our Key performance Indicator (KPI) in managing our business and meeting our customer needs.

11.2 Our Commitment is to: Provide a quality service to a professional and ethical standard.

Provide client satisfaction by ensuring that all employees are adequately trained, experienced, competent and properly equipped.

Foster long term client relations based on customer satisfaction with our response and quality of service.

To ensure the provision of a continual improvement ethos, Khadamat has in place a business management system which can meet the requirement of ISO 9001.

Figure (7) ISO9001 Log

Page | 17

http://www.generalstandards.com/iso9001.php Accessed online 12/052014

12. ConclusionFacility Management companies mainly focus in achieving their KPIs as most of the contract between organizations and Facility Management companies depends on achieving the KPI. However we cannot compromise the quality of the service provided as it is main factor in our Customer Satisfaction Score CSAT in which impact our ISO9001 certificate.To do the aforementioned Khadamat need to implement new ERP system to increase the integration between our departments, increases the operations efficiency and help in taking the right decisions for futureinvestments. Following the company vision and mission and valuing our customer satisfaction Khadamat Facility Management (KFM) need to focus on the following

1. Analysis the company Strength and Weaknesses by using SWOT analysis.

2. Define and understand the problem.3. Develop alternative solutions.4. Choose the best solution.5. Implement the solution.6. Maintain/improve the quality provided to the customer following

ISO9001 standers.

Page | 18

Implementing such new technology will enhance the Operations efficiencyand will lead to Sustainable Competitive Advantage.

Page | 19

Page | 20

Company Name CountryYear Acquired/ Established

Effective Ownership % (1)

Network Type

Emirates Telecommunications Corporation “Etisalat”

United ArabEmirates 1976 100%

Mobile/Fixed/ IPTV

Etisalat Afghanistan Afghanistan 2006 100% Mobile

Etisalat Sri Lanka Sri Lanka 2009 100% Mobile

Moov CDI(3) Ivory Coast 2005 100% Mobile

Moov Niger (3) Niger 2005 100% Mobile

Etisalat Benin (3) Benin 2008 100% Mobile

Moov CAR (3)Central African Republic

2005 100% Mobile

Moov Gabon (3) Gabon 2005 94% Mobile

Canar Sudan 2005 89% Fixed

Moov Togo (3) Togo 2005 95% Mobile

Telecel Faso (2) Burkina Faso 2005 79% Mobile

Etisalat Misr Egypt 2006 66% Mobile

Telecel Benin (3) Benin 2005 51% Mobile

Zanzibar Telecom Limited (Zantel) Tanzania 1999 65% Mobile

Etisalat DB (2) India 2008 45% Mobile

Etisalat Nigeria Nigeria 2008 40% Mobile

Thuraya UAE 1997 28% Satellite

Etihad Mobily Saudi Arabia 2004 27% Mobile

Pakistan Telecommunications Company Limited (PTCL)

Pakistan 2005 23% Fixed

Ufone Pakistan 2005 23%   Mobile

Maroc Telecom Morocco 2014 53%   Mobile

Sotelma Mali 2014 51%   Mobile

Mauritel Mauritania 2014 41%   Mobile

Onatel Burkina Faso 2014 51%   Mobile

Gabon Telecom Gabon 2014 51%   Mobile

13. References http://www.admin.ox.ac.uk/media/global/wwwadminoxacuk/localsites/estatesdirectorate/documents/capitalprojectsforms/KPI_Process_Guidance_Note.pdf (accessed on 10/05/2014) Figure (1) Key Performance Indicator [online]

Executive summary http://www.oocities.org/shaw4545/mk/kerinmarketing2.htm Access on 10/05/2014

Defining The Problem (Lecturer presentation, DR Tony Jewels 2014) & http://www.oocities.org/shaw4545/mk/kerinmarketing2.htm

ERP System available at http://www.sciencedirect.com/science/article/pii/S0377221702005477 Access on 10/05/2014 [online]

Benchmarking http://www.cse.dcu.ie/downloads/process/Recommended-Steps-for-Successful-Process-Improvement.pdf Access on 10/05/2014 [online]

Figure (2) available at http://www.sciencedirect.com/science/article/pii/S0377221702005477 Access on 10/05/2014 [online]

Figure (3) Dimensions of Information Systems (Chifely Business Schoolpresentation, 2014)

Figure (4) Laudon & Laudon's module (Chifely Business School presentation, 2014)

Figure (6) Comparison of the strengths and weaknesses of SDLC http://en.wikipedia.org/wiki/Systems_development_life_cycle Access on10/05/2014

Figure (7) ISO9001 Log http://www.generalstandards.com/iso9001.php Access on 12/05/2014 [online]

Page | 21

Page | 22