GCC companies are fast maturing and realizing the value of using their ERP systems to proactively drive business decision making, as they gear up for the arrival of free trade with the World Trade Organisation. These IT business solutions are not only driving efficient transactions, but also business growth.
These imperatives emerge from the second Sage Arabian Pulse, business survey conducted by YouGov of 342 senior business managers, working for medium to large organisations in the GCC, in the winter of 2006.
When asked what the main reasons for the company to implement ERP software, the most common reason is ‘to have an integrated system’ (67%), followed by ‘to improve efficiency’ (52%), with the third most common reason being ‘to help management take better business decisions’ (38%), as shown in Chart 1 in the appendix.
“In the aggressively competitive business environment of the Gulf, and free trade becoming an inevitability, companies are urged to transform their ERP systems into decision making weapons. Those companies that go beyond using ERP systems to record business transactions, and begin to use the information held in their ERP systems to make sound business decisions, will do extremely well in the future. For the rest, it will be a slow, inevitable death,” said Marc Van der Ven, Managing Director, Sage Accpac Middle East.
The most important factors when selecting ERP systems, according to the respondents were: product functionality (56%) and product technology (52%). 14% of respondent said it was the quality of implementation partner, as shown in Chart 2 in the appendix.
However, when respondents were asked if they were to select an ERP system again, two clear changes they emerged: 60% said it would be ‘to thoroughly research and the document the company’s requirements’, the next most common change (49%) was ‘to ensure that the implementation partner is of the highest quality’, as shown in appendix, chart 3.
“This shows that local companies have matured tremendously and understand that the quality of the implementation partner plays a vital role in making ERP a successful business project. The other interesting fact is that GCC companies do realize that unless they thoroughly research their own company’s requirements prior to selecting an ERP system, they will struggle to make the project a business success and contribute to the bottom line of the company.” said Marc Van der Ven.
35% of respondents said they would make a business case for ERP implementation in the company, 31% said they would make sure that all stakeholders in the project success are involved in the selection process and 16% said they would get top management sponsorship for the project.
“This research has shown how important it is to get the top management involved in an ERP project. We know from our own experience the value of properly resourcing a project of this kind and getting entire organisations to back it. It is the road to success” continued Marc Van der Ven.
When respondents were asked, what changes they would make to ERP implementation process, the top responses were: 51% of respondents said they would improve communication of project goals and progress within the company, 49% said they would involve the best people in the organisation in the implementation, as shown in appendix, chart 4. Remarkably, none of the respondents said they didn’t know what changes they would make.
“This is another indication that GCC organisations have matured and understand what it takes for an ERP project to succeed. Business Managers in the region know that ERP changes the way businesses function. They know it touches most people in an organisation and that is an extremely effective way to communicate to all staff what the company is trying to do” said Marc Van der Van.
When asked how satisfied they were with their ERP systems, 71% of respondents said they were not entirely satisfied.
“I think companies now understand the scope of ERP systems and what it takes for them to succeed. Going forward, I am confident that the level of satisfaction will improve” commented Marc Van der Ven.
Finally, respondents were asked what steps vendors could take to improve their experience with ERP.
44% of respondents demanded cost-effective extended functionality from vendors while only 1% would reduce vendor maintenance support, as shown in appendix, chart 5.
Van der Ven added: ““Businesses are prepared to invest time, effort and money into reliable and value-added ERP systems and implementation partners. They are prepared to pay their vendors to continuously evolve their products and deliver additional functionality, and that is how it should be. We have seen time and time again how ERP, properly implemented, gives companies the advantage over competition.”
What is ERP?
Enterprise Resource Planning (ERP) software integrates all the departments and functions within a company into a single system. This single integrated system helps companies operate more efficiently by automating various business processes within the organization. Ultimately ERP systems can help companies reduce costs, increase customer service and boost sales.
About Sage Accpac ME
SageAccpac offers leading business management software and services that support the needs, challenges and dreams of medium sized organisations. Its parent company, The Sage Group plc (London: SGE.L), supports 4.7 million customers worldwide. For more than 25 years, Sage Software has delivered easy-to-use, scalable and customizable software for enterprise resource planning, customer relationship management and human resources. It products are used by a range of industries including Manufacturing, Wholesale Distribution, Trading, Banking & Financial Services, Transportation & Logistics, Telecommunications, Oil & Gas, Healthcare, Chemicals, Consumer Products, Defense & Security, High Tech, Government/ Non-profit, Services, Retail, Utilities, Construction/ Real Estate and Education.
For more information, please visit the Web site at www.sage.com
About YouGov:
YouGov is a leading market research and consultation company which specialises in online polling to deliver fast, accurate and cost effective results. YouGov has offices in London, Dubai, Jordan, Iraq. It is the market leader in online research, developing large consumer panels but also offers the full range of research services. YouGov supplies research to Government, major corporations and the media. The company adheres to the UK Market Research Society Code of Conduct, firmly setting the company apart in this region.
