CONSULTANCY Sarah Jawad 201400800

Maryam Alkhunaizi 201400869

Zahra Khalaf 201500769
Khalid Alkhedri 20141115
REPORT
BU7201 – Operations Management | December 20th, 2017.
TABLE OF CONTENTS
Introduction ................................................................................................................................................... 2

Purpose .......................................................................................................................................................... 3

Features: ........................................................................................................................................................ 3

Advantages of ERP ......................................................................................................................................... 5

Disadvantages of ERP..................................................................................................................................... 6

SAP ................................................................................................................................................................. 7

SAP compared to Oracle/ why sap?........................................................................................................... 8

SAP ERP Recommendations: .................................................................................................................... 11

Recommended Applications .................................................................................................................... 12

Process of Implementing SAP ERP: .......................................................................................................... 17

Estimated Cost and Implementation period............................................................................................ 22

Conclusion.................................................................................................................................................... 26

Bibliography ................................................................................................................................................. 27

Appendix: ..................................................................................................................................................... 31

1
INTRODUCTION
The report aims to consult VIVA Bahrain about ERP. The main features will be discussed in
addition to the advantages and disadvantages of implementing ERP. Moreover,
recommended SAP software will be mentioned including the implementation process and
estimated costs. An interview with VIVA’S CTO “Mr. Hisham Badawi” has been conducted.
See appendix

Company Overview:

VIVA Bahrain was established back in March 2010 as a secondary branch to the mother
Telecommunication Company (STC) in Saudi Arabia. The purpose behind that launch was to
provide an extensive commercial service as well as to shift the telecommunication landscape
in the Kingdom of Bahrain. VIVA Bahrain has impacted the telecommunication market
positively by launching the latest high-tech devices first to inspire the innovation and to be
the forefront company which introduced a “comprehensive wholesale and enterprise
portfolio with national and international services”. Additionally, VIVA became the first
operator to successfully launch the HSPA+ (High Speed Packet Access) network back in 2011
that provides internet speeds of 42 Mbps to its subscribers in Bahrain; which led them to
upgrade their internet services to 4G/LTE in early 2012 with its official release to the
customers being held in January 2014. Hence, it allowed VIVA to substantially grow over the
past 6 years as well as becoming the market leader of telecommunication industry in the
Kingdom of Bahrain (VIVA, About Us, 2017). See appendix

2
PURPOSE
VIVA implemented ERP during start-up in 2010. However, the implementation was not fully
fledged. The organization is still progressing today as they increase processes and
automation. So far, VIVA have 90% of their processes fully automated. The reason behind
VIVA’s decision in obtaining Oracle ERP system is that, Saudi Telecommunication Company
(STC) which is VIVA’s mother company uses Oracle. VIVA has to report financial information
which includes the revenues to STC, because they have to be in PPL profit lost report of the
mother company. Therefore, for the ease of integration, VIVA chose Oracle ERP solution for
their operations. Furthermore, based on the interviewee’s response, the company believed
Oracle to be a much easier system than SAP or Microsoft at the time. In accordance to Nasser
Al- Nasser, the senior vice president of STC, the company implements Oracle for the purpose
of fast customer response as well as quick response for new market competitive offers. This
system allows the company to obtain fast transactions, allow high ability of innovation as well
as provide savings to the company (Arab News, 2015 ). In addition, VIVA uses the customer
facing solution stack from Oracle like the social relationship management (SRM). The
organization chose to stick with this technology and upload their data for the aim of obtaining
an integrated environment. The implementation of Oracle seemed better suited for VIVA than
to introduce a new technology.

FEATURES:
VIVA utilizes ERP’s features in three main areas. To start with, Finance includes account
payable, fixed assets, general ledger, inventory, property management and procurement. It
is used to manage the interactions with VIVA’s mother-company as well as to direct any
connections between VIVA and their suppliers. Moreover, the features help in running the
government or bank related records that VIVA might need to showcase. However, more
importantly, finance features are useful to control and manage VIVA’s financial framework.
The financial information in the system displays real-time analysis that is useful for the
organization to predict future financial situations that are comprehended, based on the
operational requirement of the company (Carlton, 2017)

3
Another area of ERP that VIVA uses is Human Resource which involves order management,
payroll, performance management, learning management and time-on-labour. ERP solutions
for HR department assure a quick access to employees’ specific records which includes
contact information, payment details, attendance records, performance evaluation as well as
promotions. Also, these features make the business operations more flexible and automates
the human capitals. It is reducing time, human efforts as well as lowering costs for
administrative operations (Eresource, 2017)

Moreover, Viva utilize ERP for its Customer Relationship management (CRM) solution. One
of the major advantages to this feature is that it allows the organization to obtain a 360
degree view of their customer segmentations. It showcases areas like customers needs, order
record, customers preferences and more. This feature provides Viva with a better perception
to their customer base which will increase customer retentions by predicting customers
needs. The CRM solution provides Viva with better access to the customers information in
real time to increase the efficiency level as well as maintain customers satisfaction. In
addition, the automation of the workflow of customers needs cuts down the time and human
resources contributed to achieve the tasks (Workwise LLC, 2017).

Lastly VIVA focuses on supply chain management ERP feature which contains inventory
management, procurement, and logistics management. ERP solutions offer assistance in
creating cross functional teams that understand the processes of supply chain. It is also
utilized in tracking supplies, coordination between manufactures and shipments as well as
balancing the supply with its demand (Scott, 2017). This offers an easy to use software for
managing the supply chain operations which helps the organization in preserving an efficient
work environment (Paulson, 2017). Moreover, these features help VIVA in gaining customers
retention by providing better services with an automated workflow (CompuData Inc., 2014)

4
ADVANTAGES OF ERP
The advantages of ERP to VIVA are related to the overall industry method that most of the
companies are trying to obtain which is automation and digitization. In accordance with Booz
& Company, digitalization is the new market trend (Friedrich, Le Merle, Peterson , & Koster).
To gain a competitive advantage, companies must differentiate themselves from their rivals
by investing in internal and external digital capabilities.

 Streamlined Processes:
An ERP software automates business operations cross-departmentally (Top 15 Benefits of
Implementing ERP Software | WorkWise ERP, 2017). From VIVA’s perspective, ERP automate
some processes that helps the company to add efficiency, accuracy, productivity and accurate
reporting into their work. Additionally, the ERP system helps the employees to handle all self-
services such as applying for a job, vacation, leaves and so on. Moreover, ERP system
documents every process that VIVA needs to include for their final reports such as financial
reports. Thus implies that all these ERP features provides efficiency which helps the company
to enhance their productivity, cost reduction as well as less operational effort in terms of the
number of employees.

 Deep Integration:

Even-though an Excel sheets is the most utilized program that other SME’s apply during their
operations; due to its manipulations that can be done manually. Excel sheets only tend to
provide a standalone work. Whereas larger companies such as VIVA need to keep and invest
into better integrated platform such as ERP in order to create a dynamic movement into their
technology processes.

 Improved Reporting:

The joined reporting system for all operations provides VIVA with the advantage of obtaining
analytical reports including unified information across departments. In addition, VIVA will
benefit from this feature by having a broad level of analytical insight into their processes
which would assess the organization in efficient and detailed reporting. Hence, this feature
allows VIVA to make better and quick decisions based on the analytical reports (Benefits of
ERP - A Look at ERP Advantages & Disadvantages, 2017).

5
  Improved Efficiency:

ERP system can decrease the time and effort required by the employees to perform regular
activities as well as significantly lowering or eliminating repetitive processes (Benefits of ERP
- A Look at ERP Advantages & Disadvantages, 2017). This means that they do not have to do
a lot of manual work which will add cost and slow processes to VIVA. For example, the
financial reports and revenue recognition takes less time for VIVA to create; which gives them
a competitive advantage in comparison to smaller organizations who operate their reports
manually. Therefore, having an automated system such as ERP would help VIVA to deliver an
accurate work with faster rates rather than depending on individuals whom may take longer
time to operate the whole process manually.

 Customer Service:

As mentioned above one of the main reasons why VIVA implements ERP is because of the
Customer Relationship Management feature. Hence, VIVA would gain a competitive
advantage in this area due to the centralization and streamline of customer information. In
addition, this feature will allow VIVA to build and maintain customer relationship as an ERP
system handles most customer interactions (Benefits of ERP - A Look at ERP Advantages &
Disadvantages, 2017).

DISADVANTAGES OF ERP

6
  Connecting business objectives to the system:

The challenges for VIVA were related to their business requirements and wanting to translate
them into a system. In the beginning of the company, a lot of the processes were not matured
enough, therefore, while implementing those processes they had to be changed and modified
along the way. Additionally, their manual processes were not up to the mark yet. Because
during start-up, their priority was to launch the company and get it recognized as other
competitors such as Zain and Batelco were present. Moreover, after they implemented the
first phase of ERP, they had to do a lot of customization later on to meet the changed business
requirements. For example, according to Mr. Hisham, VIVA used to manually record
shipments but later, they needed to make the movement of stocks faster as orders increased.
Furthermore, they used to record that they received the shipments on the system but the
distribution of the shipments happened randomly, which got recorded in a later time. Hence,
this process created a lot of miscalculations and missing data was heavily present because of
the human error integration. However, since VIVA became a mature corporation in the
modern time, they started introducing processes which started to match the old data with
the new data that allowed the organization to do a lot of data-manipulations.

SAP

7
SAP stands for “System Application Products”; the company is synonymous with ERP, as it is
the fourth largest software company worldwide. Products include SAP ERP, SAP industry
solutions, SAP Business One and SAP Business ByDesign (What is SAP (System Application
Products), 2006).

SAP compared to Oracle/why SAP?

1. Firstly, accessibility. For instance, it is available on-premise (hosted on-site, on the user’s
own servers). Additionally, it is available through the cloud. SaaS (Software-as-a-service)
or (web-based-servers). Hence, it can be hosted on the service provider’s servers; which
makes the users able to access the software through any system-compatible device that
has an internet connection. Moreover, SAP is mobile supported (opposite to Oracle)
which is extremely beneficial for on-the-go employees as it will save them the hassle of
carrying excess weight (laptops) as they move around (Edwards, 2017).

2. SAP is better suited for big corporations1. For example, the software is designed to be
integrated on many computers and it is able to contain large amounts of data. In addition,
it is multi-user supportive (Kimberling, SAP vs. Oracle vs. MS Dynamics vs. Infor: Lessons
from the 2016 Clash of the Titans Report, 2015). View the opinion of Pepsico on SAP in
appendix

3. SAP is quicker with payback. SAP is the ERP vendor with the largest market share 2
(O'Donnell J. , 2017). SAP falls second after Oracle in implementation cost. Also, research
found that implementing SAP delivers the quickest financial payback in comparison to
other vendors. For example, the average SAP customer spends 4% of their annual revenue
on total ownership cost whereas Oracle customers spend an average of 1.7% of revenue.
However, that is believed to be due to levels of functionality which SAP products provides
as well as having a wide range of functions to be used all together. For example, SAP ERP
consists of many software’s that can be implemented and used in an organization (HR,
Finance, Supply Chain, Marketing...Etc.). In addition, as customization is more receptive

1
Corporations with over 1,000 employees.
2 SAP has 19% of the total market share

8
 in SAP, the cost will definitely increase, but the end result would be a more comprehensive
functional software. Hence, SAP customers would be more satisfied after the
implementation period (Kimberling, SAP vs. Oracle: Which ERP implementation is right for
you?, 2014).

4. The implementation duration is lower compared to its peers; which SAP falls second after
Oracle. For instance, the average SAP customer takes 18.5 months to fully implement the
ERP software whereas Oracle customers finish the implementation period in 22.5 months.
Nevertheless, SAP is relatively faster because of their pre-configurations that moderate
risk chances and try to eliminate them which results in a higher success rate (Kimberling,
SAP vs. Oracle vs. MS Dynamics vs. Infor: Lessons from the 2016 Clash of the Titans Report,
2015).

5. Oracle is overpriced at the start-up for an SME. As the interviewee mentioned “We have
had problems with the budget during implementing Oracle at the start”. Additionally, the
implementation cost is unpredictable; there is fluctuations in price between the planned
and actual expenses of implementation which is the highest amongst ERP vendors.
(Kimberling, SAP vs. Oracle vs. MS Dynamics vs. Infor: Lessons from the 2016 Clash of the
Titans Report, 2015)

6. System scalability. Organizations find SAP more scalable 3 . That is because SAP is
standardized and consistent (the products have been developed from scratch). Moreover,
as an ERP software is the backbone of the operational functionality in an organization;
companies prefer scalable ERP systems such as SAP because they accommodate to larger
businesses processes and functions. (Kimberling, SAP vs. Oracle vs. MS Dynamics vs. Infor:
Lessons from the 2016 Clash of the Titans Report, 2015)

3Scalability includes the capability of a system or a process to handle growing levels of work. For instance, a
business that is constantly developing and growing (Levine, 2017).

9
7. Competitive advantage. As the interviewee mentioned “most companies in Bahrain and

the Middle East use Oracle”. Hence, by using an innovative and reliable ERP system, VIVA
will be able to interact better with customers. For instance, it is known that the customer
service in VIVA is not satisfactory. However, by implementing SAP CRM “Customer
Relationship Management” software, VIVA will be able to enhance their relationship
methods and provide their customers with better experience (Bagmare, 2016).

8. Customer Support and Training. An Oracle user said “Support from vendor is pretty poor.
Enhancement requests stay pending for years. Support requests go on for months, and in
the end, get closed when a new technician enters who has no idea of the background.”
Nevertheless, SAP excels in customer support. They provide users with a support portal
and users are able to search for SAP notes, articles and documentations, community
content, report and view incidents, request keys, manage connections and download
software (Heckmann, 2017).

10
SAP ERP Recommendations:

The main reason VIVA went with Oracle in their implementation period was because their
mother-company (STC) uses Oracle. Hence, for ease of integration and flexible
communication such as financial reports, they have implemented Oracle. In addition, another
reason is the cost; as they implemented ERP at start-up; Oracle is deemed to be lower in cost
at start-up4 and gets more expensive the larger the company is. Due to these reasons, Oracle
seemed to be the sensible solution for VIVA.

As for our recommendations, we encourage VIVA to incorporate SAP applications in HR, CRM,
and Finance and Supply Chain management solutions as SAP is proficient in those areas.
Firstly, the practice of implementing Oracle and SAP together is encouraged; as you will rarely
get everything you need from one specific provider, flexibility and variety is always a benefit.
SAP and Oracle have been teaming up for over twenty years to provide end-users with a
SAP/Oracle supported environment. For example, customers are able to run SAP applications
on Oracle databases easily with no hassle. Furthermore, Oracle have recently announced the
extension of the long-term agreement with SAP which includes technical and customer
support for both solutions. For instance, new and existing SAP customers are able to acquire
Oracle licenses from SAP or Oracle to support their SAP business application integration.
Additionally, this is the case with VIVA as they are already using Oracle databases, which will
not affect the smooth performance of either software. (Schikora, 2015)

4
in comparison to other vendors (Edwards, 2017)

11
Recommended Applications

Application
SAP SCM “Supply Chain Management”
Department Supply chain
SAP SCM offers a flexible and automated system for the processing of goods,
stock movement and stock management in warehouses. The application is
supported of the workflows and process of the logistics and warehousing
departments within the organization. Moreover, it synchronizes the flow of
the SCM elements including development, procurement, production, sales,
distribution and recycling functions (explorewms, 2017).

It includes:
1. SAP advanced planning and optimization SAP APO. It helps with
planning the internal supply chain and collaborating with external
supply chain partners (Knolmayer, 2009).
2. SAP inventory Collaboration Hub SAP ICHTM, it was renamed to SAP
SNCTM. It is responsible for the collaborating aspect between
Benefits
customers and suppliers.
3. It also includes SAP Forecasting and Replenishment SAP F&RTM, it is
helpful for planning for high-volumes. For example, when VIVA
introduced Apple’s iPhone X; they had to plan for the massive
demand and be able to provide all customers who pre-ordered their
desired product.
4. SAP Event Management SAP EMTM, it is beneficial for tracking orders
and ordering chains.
5. SAP Extended Warehouse Management SAP EWMTM, it is helpful for
the decentralized management of warehouses and for keeping track
of quantities of stock remaining (Products, 2017).

12
 Application
SAP CRM
Department Marketing, Sales, Customer-Service
This application allows VIVA to automate all of the marketing activities. For
instance, it allows them to build a loyal customer-base by the integrated
marketing capabilities in SAP CRM5. For instance, the tools available include,
Segmented lists, personalized offers and cost-effective marketing campaigns
(Product, SAP CRM: Marketing , 2017).
The marketing product allows the company to align marketing resources,
track expenditure, and build accountability. For instance, VIVA can make
plans and budgets and receive reports on the actual costs against each plan;
this will help to minimize expenditure on irrelevant resources. Secondly, the
module provides a centralized view of all marketing activities; which allows
VIVA to monitor all activities fully. Moreover, there is a program manager that
Benefits
controls task management, campaign templates and workflows in order to
keep the activities on-track and on-budget. Additionally, VIVA would be able
to store and manage rich media files across the organization and make it
accessible for campaign use. Furthermore, the software provides
segmentation properties; VIVA will be able to identify and target frequent
customers from large groups (up-to millions) accurately.
Another feature is “campaign automation”. VIVA will be able to run marketing
programs that personalize follow-up interaction based on existing customer
data which would increase customer satisfaction and loyalty. In addition, the
availability of E-marketing6.

5 The way businesses interact with current and future customers. Traditionally, this has been done with
Software that automates and integrates your customer-facing activities: sales, marketing, and customer service.
But today, best-in-class CRM software systems go beyond that core functionality – providing additional tools for
customer analytics, personalization, e-commerce, social media, collaboration, and more (Product, What is CRM?
, 2017).
6 Using low-cost online and email channels to deliver high-volume, personalized, and relevant messages.

13
 Application
SAP ERP HCM (SAP Corporation, 2017)
Department Human Resources
This application is focused primarily on core HR functions such as payroll,
recruitment, on-boarding, administration, professional development and
promotion processes (the pack for this software includes a support pack until 2025)
It has been developed for over 30 years and it has over 16,000 global customers.
The application includes all core processes; that are essential for a fully-automated
department. Such as; payroll, organizational and time management. It includes a
different version for employees, managers and HR professional. Each with a
different level of access towards data. In order to gain higher security.
The software is also available as a mobile application; with a separate version for
employees and managers. The application is always updated for continuous
development. (see appendix) & (see appendix)
Another feature that was recently added is the ability to mass-hire; it includes
processing large amounts of data and segregating the suitable candidates on a
larger scale; which is beneficial for VIVA as they are an enterprise.

Benefits
The application is concerned with employee administration; it gives employees and
managers access to up-to-date personnel data, and consistent information from
the database that support HR and business-related decisions. Moreover, features
like employee relocation, industry planning and preparation of projects.
Moreover, payroll and legal reporting processes are included to help the business
to handle payroll efficiently, and follow legal regulations in reporting to eliminate
any legal issues.
Another feature is Manager Self-Service; it provides managers with access towards
employee information regarding development, compensation planning and
approval and budgeting. Whereas Employee Self-Service provides employees with
access to information required to manage their life and work events.

14
 Customization abilities:
This application is mostly written in ABAP and Java programming languages, it
includes the development licenses and it is compatible with Oracle databases.
Which means it is compatible with VIVA’s database; resulting in a highly
harmonious merger of data.

 The software does not acquire additional licenses

Maintenance &
training  SAP ERP HCM has maintenance guaranteed until 2025.
 Free training is available by SAP HR experts through tutorials.

15
However, if VIVA chooses to fully switch to SAP, we would recommend using this finance
solution:

Application
Financial Accounting and Controlling (SAP FICO)
Department Finance
SAP Financial Accounting (FI):
This module includes manging the internal financial transactions. It unifies
all data that is involved in the organization. It also has reporting features.
Moreover, this application is very flexible and it performs well under any
economic situation; which is suited for VIVA as they are an enterprise in
Bahrain. Also, the application helps organizations manage diverse data
including business transactions and legal requirements. Furthermore, it
helps to gain a real-time financial position in the market (Verma, 2017).

Benefits SAP Controlling (CO):

This module is offered mainly to enterprises. It involves controlling the
process of planning, reporting and monitoring business operations. The
procedures include viewing and organizing costs for financial reporting.
Moreover, this application controls, manages and configures data that is
relevant in cost-elements, cost-centre, internal orders and profit-centre.
(Verma, 2017) This is relevant to VIVA as they need a software to monitor
their expenditure and provide a precise and accurate financial reports to
be sent to their mother-company STC.

16
Process of Implementing SAP ERP:

Since ERP systems are always improving, there are different opinions on how to approach the
implementation process. One notable view is to focus on ERP as a product or service in terms
of software application. SAP’s installation process requires decent product-knowledge which
means that it should be handled by a professional in-case interference is necessary (Alizai,
2014).

ERP implementation includes a step-by-step process starting with ERP project inception
(start-up), planning, design, configuration, testing and project delivery (go live) which is a
dynamic process as it is always changing and developing according to the requirements of the
clients or stakeholders (Alizai, 2014).

In order to enhance the likelihood of the success of the implementation process. A company
must take these aspects into consideration (Arguin, 2017). See appendix

Strategic
Planning

Procedure
Evaluation
Review

implementation
process

Data
Collection
Go Live and Clean-
Up

Training
and
Testing

17
 1. Strategic Planning:

 Project team:

Assign a project team with employees from different functions (sales, customer-service,
accounting, purchasing, operations and top management). Each member must be devoted to
the success of the project. Moreover, they must be held accountable for specific tasks. For
instance, developing a timeline is given to the operations department, whereas finalizing
objectives is the top management’s responsibility. Also, the selection must be based on the
knowledge of the employee not title (O'Donnell S. W., 1981).

 Examine Current Business Processes:

Performing analysis to improve the business processes. Can be done by gathering key
documents such as invoices, batch tickets and bills. Ask questions during team discussions
that stimulate thoughts7. The team must also conduct interviews with key people to uncover
additional information for improvement (O'Donnell S. W., 1981).

 Set objectives:

Objectives must be clearly defined before implementing the ERP software. Questions to ask
includes8.

 Develop a project plan:

The team must choose a project plan which is similar to pervious goals, objectives, training
procedures as well as team obligations. Moreover, the plan must be in-line with the
organizations’ vision. VIVA’s vision is “to be Bahrain’s communication leader by enriching the
lives of our customers in an increasingly connected world” (VIVA, Mission and Vision, 2017).

7 Questions like: Are your procedures up to date? Are there processes that could be automated? Are personnel
spending overtime processing orders? Does your sales force and customer service personnel have real-time
access to customer information?
8
Does the solution reduce backlogs? Can the solution improve on-time deliveries? Will you be able to increase
production yields?

18
 2. Procedure review:

 Review software capabilities:

Intensive review of the software capabilities for the project team. Train on every aspect
of the ERP software to fully educate the team and identify areas of improvement. The
organization decided whether adjustments are required prior to training (O'Donnell S. W.,
1981).

 Identify manual processes:

Find the processes that should be automated instead of manual functionality. For
instance, as mentioned above, VIVA need a more advanced CRM software as they are
lacking in customer relationships with providing unsatisfactory services. Furthermore,
that function needs to be automated as it reduces the chance of human error/bias
(O'Donnell S. W., 1981).

 Develop Standard Operating Procedures (SOPs9):

Every business aspect needs procedures. They should be documented formally.

Ensure that the documents are modified along with the SOPs10.

9
An SOP is an operations procedure that specifically describes activities necessary to complete a task (SOP is
documented in relations with industry regulations, company standards or provincial law (SBEC, 2017).
10
Examples of SOPs:

 How do you handle global price changes? 

 What are the processes for inputting new customer records? 
 How do you currently handle the paperwork on drop shipments? 
 How do we add a new product or formula? 

19
3. DATA COLLECTION & CLEAN-UP

 Convert data: Deciding on whether to convert information through an analysis of the

current available data. As companies cannot be certain that all data must be converted
(outdated data is always present).
 Collect new data: Identify new data for acquirement. Moreover, you must identify the
source of data. Use tables to logically arrange acquired data. (Most ERP systems will
have a utility to upload data from a spreadsheet to their database).
 Review all data input: After all data is entered into the ERP database, it must be
reviewed to ensure accuracy and completeness. The business succeeds upon the
information it holds, so it is very important that the data remains precise.
 Data clean-up: Find old data by reviewing current information. For example,
customers who have not made any purchases for a long time or are no longer
operational. Hence, these customers should be communicated with in order to reform
a relationship with them.

4. TRAINING AND TESTING

 Pre-test the database: The project team is responsible to conduct a test on the
database to ensure that all data is precise and working efficiently. It is recommended
that a full-week of real data is pushed through in order to validate output. Moreover,
Real-life scenarios must be conducted to test data accuracy. Finally, they must ensure
that all integration issues are resolved so that the software runs smoothly with other
systems.
 Verify testing: ensure the test mirrors the “SOPs” discussed in step 2; and make
amendments when needed.
 Train the trainer: It is an inexpensive and very effective method. For instance, the
organization can assign team members to run on-the-job training. For example,
Members can set-up workstations to train by a specific function. Additionally, the
training is conducted in 2-3 days and it includes all necessary tools (such as cheat-
sheets and training documentations).

20
 Final testing: A final test is vital to be run on the data and processes once the training
is conducted and make any modifications required.

5. GO LIVE AND EVALUATION:

 Develop a Go-Live checklist:

 Physical inventory process is complete.

 Beginning balance entry procedures are developed for all modules.
 Any transition issues are addressed.
 Documents & modifications are tested thoroughly.
 Executives and departments heads are fully trained.
 Vendor is available for go-live day.
 Users will have assistance during their first live transactions.

 Evaluation:
Evaluating the objectives set in the planning step; to ensure that they are being met.
Additionally, a post-implementation audit is performed after software has been
installed and running for at least a week (to ensure the system is running effectively).
Another post-implementation test is run after three to six months to check whether
the business benefits are being achieved. Moreover, they check for the functionality
of the software (by comparing actual numbers to pre-determined benchmarks).
Furthermore, they check if it does what it is supposed to do (adding value to the
organization). Moreover, in order to ensure a successful implementation, these
strategies must be taken into considerations. See appendix

21
Estimated Cost and Implementation period

For the implementation of SAP, we have two recommendations for VIVA. One, is to fully switch to SAP on
the cloud by implementing Business ByDesign. Secondly, if VIVA chose to remain integrated with STC by
Oracle’s database; they can implement Business All-in-One.

SAP business ByDesign software is a company’s software as service (SaaS); it is beneficial for
companies who are looking for extending their premise system by switching to the cloud. The
business ByDesign includes four main enterprise software classifications, Customer
Relationship Management (CRM), supply chain management (SCM), Human Resources
management (HRM), Financial and professional service automation (PSA) (erpsearch, SAP
Business ByDesign Software Review, 2017).

This system is suitable for the organization because the cloud can deliver the company with
full integration of CRM and ERP functions to meet the organization requirement. Moreover,
the platform (cloud) makes the integration easier than any on-premise service and quicker.
The automation of the workflow is more flexible than BusinessOne and business All-In-One
software. Additionally, the pricing is competitive since the maintenance fee and support is all
included in the monthly or yearly subscription and the company does not need to hire any
additional expertise for this installment. Lastly, this product allows users to access the
software anytime from anywhere as it is accessible through mobile apps. (erpsearch, SAP
Business ByDesign Review, 2017).

License cost:

According to Mohammed Al Kaushal, the chief Human Resource officer of VIVA, there is
approximately 1300 employees who work in VIVA premises (Partner, 2017).

User Type Cost Per User

Standard $11
Self service
SCM $24
Team user Projects $24

22
 Standard $149
Enterprise user
SCM $199

In order to calculate the License cost, we need to multiple the numbers of users with the
license price (it depends on the company decision). For example, after asking the chief Human
Resource offices about the approximate classification of the staff needed for each user type,
we found these estimation:

The total license cost will be: 5775+10800+1800+29800+9950= $58125

 ard Self-service users: 525*$11= $5775

 SCM self-service users: 450-$24= $10800
 Team users: 75*$24= $1800
 Enterprise standard users: 200*$149=$29800
 Enterprise SCM users: 50*$199=$9950

OR

The company could give a standard enterprise license to all employees (as the chief Human
Resources officer mentioned it as a possible approach) and it will cost 1300*149= $193,700
(adminstrator, 2014).

The calculation above depends on how much accessibility the company wants to offer for its
employees.

The company can also pay annual license fee which would be cheaper for the company.

1560*1300= 2028000/12= $169000

The company will get a discount rate of 14.6% which means that they will save 28280 if the
payment is annually.

So, if the company decided to go with our approximate classification they will have to pay $
49638.75 which means that they will save 8486.25 (Auld, 2017).

23
  Customization cost:

The customization cost is the part where the system adapts to the business needs. This can’t
be measured until the system it used (Sharma, Easy Price Maintenance in SAP Business
ByDesign, 2017).

 Data Migration cost:

It is the cost of moving the data to the current software. It depends on the amount,
complexity, and availability of the data which cost time and money (Approximately $20000)
(Sharma, Easy Price Maintenance in SAP Business ByDesign, 2017).

 Training cost:

There is two types of training that can be provided to the company:

1- Certification: this means sending the employee to a course which costs the company
$400 per employee.
2- Online training: the good thing about the cloud is that there is a course which is called
MOOC (Massive Open Online Course). This course is a video which provides the
employee with all of the essential information about SAP and it is followed by a self-
test; 90% of the course participant indicated that they benefited of the course
(Lucarelli, 2017).

 Maintenance cost:

There is no maintenance cost since it is online and there is SAP experts that can help
with backups, upgrades, and downtimes. (It is all included in the monthly payment).

 Implementation:
The implementation takes 30 days maximum since it is online and it does not need
anything but contacting the SAP experts and customizing it afterwards to the need of

24
 the organization. BYD installation and customization is easier than the software
because it is online (Systems, 2017).

SAP Business all in one:

The SAP Business all in one ERP software provides specific industry based functionalities that
can be beneficial to improve customer relationships and enhance operations efficiency. This
SAP ERP solution allow the organization to obtain a single platform to manage all financials,
human resource, SCM as well as CRM (Top10erp.org, 2017). SAP Business all in one product
is suitable to Viva as it can be implemented with Oracle as stated in the recommendation
section above. If the organization does not want to move to iCloud then this option would be
appropriate to implement. This solution is known for its fast implementation therefore,
employees can be trained and become proficient quickly. It has been developed with the aim
of providing maximum productivity in an easy to use software (SAP All-in-One, 2017). This
solution is user friendly because of its ease of use also, it is affordable compared to other
solutions (Top10erp.org, 2017). This solution can be implemented quickly and cost effectively
to the existing business solution (Oracle) thus, this will benefit Viva in growing the business
and obtaining a long-term investment solution. This solution is powered by SAP NetWeaver,
this platform is ideal to integrate both SAP and non-SAP software therefore, it is suitable for
the recommendation made above (SAP Business All-in-One, 2017). Business all by one is less
costly than Business by design as it is price range falls between $120K-2M in comparison to
business by design range of $150 per user or device (Top10ERP.org, 2017).

25
CONCLUSION

To sum up, we recommend VIVA to adapt to SAP as it has better functionality and will guarantee better
results and satisfied customers.

26
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APPENDIX:

Functional Capabilities of SAP ERP

 Procure to Pay Reduce costs with support for end-to-end procurement and logistics
processes.
 Plan to Product Speed up your entire manufacturing process – from planning and
scheduling to monitoring and analysis.
 Order to Cash Support customer-focused processes – from product sales to service
delivery to warranty claims and returns.
 Request to Service Enhance sales and customer satisfaction by offering super service
in every customer experience.
 Core Human Resources Get support for recruiting, onboarding, administration,
professional development, and promotion.
 Core Finance Automate and streamline your financial operations while ensuring
regulatory compliance.

Technical Capabilities of SAP ERP

Applications – Best-in-class applications built around SAP ERP integration

Cloud – Add-on cloud modules that integrate seamlessly with SAP ERP

Mobile – An intuitive and secure mobile interface for SAP ERP – available anytime, anywhere

Analytics – Integrated, real-time analytics based on reliable ERP data

Database and Technology – Tools, speed, standards, and flexibility that reduce landscape
complexity

Languages – Arabic, Bulgarian, Catalan, Chinese, Chinese Traditional, Croatian, Czech, Danish,
Dutch, English, Finnish, French, German, Greek, Hebrew, Hindi, Hungarian, Italian, Japanese,
Kazakh, Korean, Norwegian, Polish, Portuguese, Romanian, Russian, Serbo-Croatian, Slovak,
Slovenian, Spanish, Swedish, Thai, Turkish, Ukrainian, Vietnamese

31
SAP ERP modules explained
The modules are segregated into two sections; functional and technical modules. They are all
integrated with each other for highest functionality. They include:

 SAP FICO module

 MM Module
 SD module
 HR module
 PP module
 PS module
 Basis module
 security module
 ABAP module

Functional SAP ERP Modules

 Human Resource Management (SAP HRM), also known as Human Resource (HR)
 Production Planning (SAP PP)
 Material Management (SAP MM)
 Financial Supply Chain Management (SAP FSCM)
 Sales and Distribution (SAP SD)
 Project System (SAP PS)
 Financial Accounting and Controlling (SAP FICO)
 Plant Maintenance (SAP PM)
 Quality Management (SAP QM)

Example of a company that switched for Oracle to SAP HANA

“As a basis for our performance comparison, we used statistical data from the customer’s
productive Oracle database. They had launched approximately 10.000 analytics in Click
Stream and on an average, each of the analytics took about one minute to calculate. For each
of these reports, an audit table within the database told us the exact milliseconds of runtime

32
as well as all the settings and selected time frame. So we were able to rerun the exact same
reports on the exact same dataset on HANA. The result was a performance increase of factor
45 on average” (Paolis, 2012).

SAP ERP HCM newest updates for 2017 include:

1. E-Recruiting, HCM Processes and Forms, Benefits

2. Continuous Customer Connect Project
3. Payroll Control Center: Enhanced Process & Alert Management
4. UX: SAP Fiori (mobile application)
 Redesign of Apps
 New: Personal Information App
5. Data Security
6. Performance Improvements

Examples of new updates for easier integration:

1. Delete Job agents of a candidate

Pain Point: Candidate‘s job agents cannot be deleted by the Recruiter.

Improvement: recruiter will be able to delete the job agents through an activity and send
correspondence. It is possible to have a custom activity as well. This function can be activated
with the T77S0 switch RECFADELJA.

2. "Tell a Friend" for employees

Pain Point: Prior to this development, ‘Tell A Friend’ functionality is not available to
employees (internal candidates).

Improvement: employees (internal candidates) will be able to inform their friends about a job
postings via emails. New interface parameter ITF_SEND_METHOD is introduced to determine
the method for sending the job posting information (Email from E-REC server or from locally
installed email software). This function can be activated with the T77S0 switch RECFAINTAF.

33
3. Social media integration

Pain Point: Candidates were not able to create their profile using information already
available on social media.

Improvement: candidate will be able to register using LinkedIn profile. This function Nan be
activated with the T77S0 switch RECFA LNKDN.

Important factors to be considered during the preparation of

ERP implementation by (Alizai, 2014):
Technical aspects:

 Infrastructure Resource Planning: For pre & post implementation stages. There must
be a reliable infrastructure that is able withstand the network standards for the ERP
systems.
 Local Area Network: According to the network trends and requirements of ERP
systems, LAN is necessary to be established as it supports ERP systems and other
applications.
 Servers: The servers can be ordered after selecting the ERP system. Therefore, it is
important to make sure that the server is compatible with the ERP software.
 PCs: hardware is essential to be meet the technical requirements of the ERP software.

Human aspects:

 Training facilities: Training facilities must be appropriate for the staff; it must meet
the needs of the training and the facility set-up could be either temporary or
permanent.
 Human Resource Planning: Teamwork planning is essential in order to have a
successful ERP implementation.
 Education about ERP: ERP knowledge must be widely spread across the organization
to make it easy for the staff to understand the principles and the tasks they are given.
 Commitment to release the right people: people included in the ERP project must be
committed to working fully for the success of the implementation.

34
Management aspects:

 Top Management Commitment: they must understand the amount of learning

required in the ERP software. Furthermore, exchange of ideas is important between
experienced people in SAP and newly introduced staff to SAP.

 Commitment to implement “Vanilla version”: A policy is required to implement the

ERP software before customization, and a review after three to six months. 80% of
benefits arrive from integration and data transparency. Whereas only 20% of benefits
arrive from customization.
 Reasonably well working manual systems: An audit must be carried out with training
in order to calculate the costs and seek acceptable alternatives when needed.

Strategies to ensure success of ERP implementation by (Alizai,

2014) :

1. Organizational strategies: For instance, project management, business and change

strategies, development, material styles and communication mechanisms must be
taken into consideration.

2. Technical strategies: includes the technological challenges faced during the

installation period. Knowledge about the system configurations, hardware,
capabilities of technical staff must be noted. Moreover, time and cost of the
challenges to be repaired is included.
3. People strategies: the capability to detect and direct staff towards change. The
inclusion of staff in the implementation period is encouraged as well as suitable
training.

35
Opinion on SAP from Pepsico

David Kim from Pepsico stated his opinion on SAP; “The system is very easy to use and
managing data via portlets is extremely intuitive. The system also allows managers to take
actions therefore offering manager self-service” (Capterra, 2016).

Additional information on VIVA

Technology innovation:

The innovation of technology that VIVA incorporated has been prospered over the past 6
years. In collaboration with British Telecom, VIVA were able to launch the first interpretability
hub in Bahrain called Global IP Exchange (GIPX); which in turn led to showcase their enterprise
capabilities to customers addressing the IT security. Additionally, this helped both VIVA and
their partners “to tackle security challenges and mitigate the potential risks that might be
encountered through state-of-the-art technology which would upgrade and secure their
networks and infrastructure” in accordance to Nezar Banabeela, Chief Wholesale and
Enterprise Officer at VIVA (VIVA, VIVA and BT showcase enterprise capabilities to customers,
2017). Moreover, British Telecom were able to advertise the (GIPX) Voice and interoperability
services in the Middle East throughout the partnership that has been signed with by VIVA
(VIVA, About Us, 2017).

Bahrain‘s largest and most diversified retail network:

VIVA owes 24 retail outlets and over 700 payments channels in addition to a distribution
channel with over 3,700 outlets that are distributed across the nation. Thus, implies that VIVA
managed to become the largest diversified sales and payments networks of customer touch
points in Bahrain. In addition, VIVA got recognized on multiple occasions where they have
been awarded “Best Customer Experience Management Loyalty Program” at the Middle East
Call Centre Awards as well as ‘Best Customer Experience Strategy’ at the Telecoms World
Middle East Awards for developing a well-structured customer-centric approach which
implies another accolades being given to them for their world-class service at the prestigious
SAMENA annual ‘Convergence’ (VIVA, About Us, 2017).

36
Community-development Programs:

VIVA participated into local community events such as ‘Make a positive difference in the local
community’ to support and promote these developmental programs for the society which led
them to launch “VIVA Jusoor” per to their Corporate Social Responsibility (CSR) program.
Additionally, this program provided sustainability in terms of connecting with the consumers
and facilitating their experiences, ideas and information’s in order to benefit them in such
projects which led VIVA to be awarded in 2013 with “Golden Order of Merit in the field of
social responsibility” by Tatweej Academy for excellence Awards in the Arab region. By 2014,
VIVA has established a partnership with Labour Market Regulatory Authority (LMRA) which
involves uplifting the foreign workers as a community to assist and ease the communication
process for the foreign works as well as providing mutual support by the government in terms
of migrant’s rights and duties. Moreover, VIVA has partnered with Ministry of Housing to
launch the ‘Fereej VIVA’ program in 2015 as their newest addition to their CSR programs. This
program provided redecorating and furnishing housing units that has been already built by
Ministry of Housing with the aim to support and benefit the Bahraini women including
divorcees and widows (VIVA, About Us, 2017).

Sponsorships and Partnerships:

VIVA Bahrain introduced exclusive services and benefits by joining Manchester United
Football Club which is considered to be one of the greatest clubs around the world that is
filled with international football expertise. Also, VIVA managed to sign other partnerships
with Royal Golf Club as well as Bahrain Football Association in order to develop their strategic
plans locally. Thus, implies that VIVA supports the youth of Bahrain through promoting these
sports activities from its roots and to elevate the participant’s talents across the Kingdom. In
addition, VIVA is aiming to focus and enhance their strategic approach with their customers
to deliver a joyful experience and satisfaction that would enable them to continue offering
excellent customer services on the long-term (VIVA, About Us, 2017).

37
Interview information
Candidate name: Mr. Hisham Al Badawi

Interview audio

38