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ERP Systems Implementation & Operational Excellence
CoursesBusiness Administration Courses in the Private Sector
Professional Training Program

ERP Systems Implementation & Operational Excellence

ERP Systems Applications and Operational Efficiency course focused on enterprise resource planning, workflow optimization, departmental integration, and process improvement.

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Course Details

Overview

The course “ERP Systems Applications in Companies and Operational Efficiency Improvement” is an advanced training program designed to enable participants to understand and apply Enterprise Resource Planning (ERP) systems to integrate and automate the company’s core operations, including finance, procurement, inventory, sales, human resources, production, and customer service. This contributes to improving efficiency, reducing costs, and enhancing decision-making.

In light of the digital transformation taking place in the Kingdom of Saudi Arabia and Vision 2030, ERP systems have become essential for companies of all sizes, especially small and medium-sized enterprises that seek to organize their operations and expand.

The course takes participants from the basic concepts of ERP, including its benefits, components, and history, to selecting the appropriate system based on selection criteria and comparisons between systems such as SAP, Oracle, Microsoft Dynamics, Odoo, Zoho, and others. It then moves to project implementation, covering the ERP implementation lifecycle: planning, analysis, design, development, testing, deployment, and support.

The course also covers change management during the transition to ERP, employee training, measuring return on investment (ROI), and best practices for using the system, including Master Data Management, User Adoption, security, and maintenance.

The program is designed to be 60% practical, combining theoretical knowledge with hands-on applications using a simplified ERP system such as Odoo Community Edition or Zoho CRM/Books in a training environment.

Objectives

Program Objectives

By the end of this course, participants will be able to:

• Understand the concept of ERP, its components, and benefits
Define ERP as an integrated system that consolidates data from all company departments, including finance, procurement, sales, inventory, production, human resources, and customer service, into a single database.

ERP benefits include:
(1) Eliminating data duplication.
(2) Providing a comprehensive view of company performance.
(3) Improving information flow between departments.
(4) Automating manual processes.
(5) Reducing errors.
(6) Improving customer service.
(7) Ensuring regulatory compliance.

• Evaluate and select the appropriate ERP system for the company
Selection criteria include:
(1) Suitability of the system for the company’s size, whether SME or enterprise.
(2) Cost, including licensing, customization, maintenance, and training.
(3) Ease of use.
(4) Flexibility and scalability.
(5) Integration with existing systems.
(6) Technical support and training.
(7) Compatibility with local regulations and platforms, such as ZATCA, e-invoicing, Qiwa, and GOSI.

The course includes a comparison of common ERP systems in the Saudi market, such as SAP Business One, Oracle NetSuite, Microsoft Dynamics 365, Odoo, and Zoho One.

• Apply the ERP Implementation Lifecycle
The implementation stages include:

(1) Planning: Defining objectives, project scope, project team, budget, and timeline.
(2) Analysis: Analyzing current processes (As-Is) and identifying system requirements (To-Be).
(3) Design: Configuring the system, customizing screens and reports, and designing workflows.
(4) Development: Programming customizations when required.
(5) Testing: Conducting unit testing, integration testing, and User Acceptance Testing (UAT).
(6) Deployment: Migrating data, running the new system in parallel with the old system, and then launching the full system (Go-Live).
(7) Support and Maintenance: Supporting users, fixing errors, and managing updates.

• Manage Data Migration and Master Data Preparation
Identify the data to be migrated, such as customers, suppliers, products, customer accounts, inventory balances, and unpaid invoices.

This includes cleaning data by removing duplicates and correcting errors, using data migration tools, and verifying data accuracy after migration.

• Measure the Return on Investment (ROI) of an ERP Project
Calculate costs, including software, hardware, consulting, training, and maintenance, compared with benefits such as time savings, inventory reduction, improved collections, lower operating costs, and increased sales.

The course also covers using Key Performance Indicators (KPIs) before and after implementation and calculating the payback period.

• Manage Change and User Adoption
Understand employee resistance to change and apply communication and training strategies.

This includes involving key users in the project, measuring user satisfaction after launch, and ensuring continuous support.

Target Audience

Target Audience

• IT Managers and ERP Administrators in companies.
• Operations Managers, Finance Managers, HR Managers, Procurement Managers, and Sales Managers.
• ERP Consultants working in consulting firms.
• Entrepreneurs and owners of small and medium-sized enterprises who wish to implement ERP.
• Business Analysts and Application Developers.
• Graduates of Information Technology, Management Information Systems (MIS), and Business Administration.

Competencies

Core Competencies

Preparing an ERP Implementation Plan

Prepare a comprehensive ERP Implementation Plan of 10–15 pages, including objectives, scope, project team, timeline using a Gantt Chart, budget, risks, and contingency plan.

Evaluating and Selecting an ERP System Using a Decision Matrix

Build an evaluation matrix for five ERP systems using weighted criteria. Calculate the scores for each system and provide a justified recommendation.

Converting the Current As-Is Process Map into a To-Be Process Map for ERP

Use BPMN or a Flowchart to map the purchasing process from purchase request to payment before and after ERP implementation, and identify improvements such as approval automation and reduction of process steps.

Creating a Cost-Benefit Analysis Report for an ERP Project

Create an Excel table showing costs, including one-time and recurring costs, over three years, as well as benefits such as time savings, inventory reduction, and labor cost reduction. Calculate ROI and the payback period.

Simulating Customer Data Migration from Excel to an ERP System

Use an Excel file containing 100 customer records, clean the data by removing duplicates and standardizing formats, then use a simulated migration tool to import the data into the training system and verify data accuracy.

Preparing a User Training Plan for Sales Employees

Define training topics, such as creating a quotation, converting it into a sales order, issuing an invoice, and tracking inventory. Determine the training duration in hours, prepare training materials such as a user guide, and conduct a post-training assessment.

Learning Journey

Program Outline

01

Day One: Introduction to ERP Systems, Their Components, and Benefits

What Is ERP? — Enterprise Resource Planning
Definition of ERP: ERP is an integrated information system that manages and integrates the company’s core operations into one system with a centralized database. Historical Evolution of ERP: MRP — Material Requirements Planning: Developed in the 1970s. MRP II — Manufacturing Resource Planning: Developed in the 1980s. ERP — Enterprise Resource Planning: Emerged in the 1990s and included finance, sales, and human resources. ERP II: Developed in the 2000s and expanded to include e-commerce, customer relationship management, and supply chain management. Examples of ERP Systems: SAP, Oracle, Microsoft Dynamics, Odoo, Infor, Epicor, and Zoho.
ERP System Components — Modules
Financials: General ledger, accounts payable, accounts receivable, fixed assets, cash management, and budgets. Procurement: Requests for quotations, purchase orders, goods receipt, and supplier invoices. Inventory Management: Inventory tracking, automatic reordering, and stock reconciliation. Sales: Quotations, sales orders, invoices, and basic customer relationship management — CRM. Manufacturing: Production planning, manufacturing orders, and cost tracking. Human Resources — HR: Employee data, payroll, attendance, leave management, and performance evaluation. Service Management: Support tickets and service contracts. E-commerce: Integration of the online store with the ERP system.
Benefits of ERP for Companies
Data Integration: Eliminates duplicate data entry. For example, the customer is entered once and appears in sales, finance, and customer service. Real-Time Visibility: Management can view sales, inventory, and cash position at any time. Process Automation: Such as electronic approvals: purchase request → manager approval → purchasing → receiving → payment. Error Reduction: Achieved through standardized data and validation. Improved Customer Service: Sales representatives can quickly access inventory and credit information. Regulatory Compliance: Supports e-invoicing — ZATCA — and standardized financial reporting. Scalability: New modules can be added as the company grows.
ERP Implementation Challenges and Causes of Failure
Insufficient budget, where costs exceed estimates. Unrealistic timeline, where implementation takes longer than expected. Lack of senior management commitment, where leaders do not actively support the project. Employee resistance due to fear of change or difficulty learning the new system. Poor data quality, such as unclean customer and product data. Selecting an unsuitable system that is either too complex or too simple. Insufficient training. Statistic: More than 50% of ERP projects exceed their budget or timeline.
Practical Workshop: Identifying ERP Requirements for a Hypothetical Company
Required Practical Activity — Small Working Groups: Work on a hypothetical company: an online retail business with three branches. Identify current processes, including sales, inventory, procurement, finance, and human resources. Identify pain points, such as duplicate data entry, difficulty tracking inventory across branches, and delayed sales reports. Define system requirements, including required modules, required reports, and integration with the website. Prepare a two-page Business Requirements Document — BRD — listing the requirements.
02

Day Two: Selecting an ERP System, Feasibility Study, and Proposal Evaluation

ERP System Selection Criteria
System Fit for Company Size: SME vs. large enterprise. Cost: License fees, whether one-time or annual, customization fees, hosting fees — cloud or on-premises — and training and support fees. User-Friendliness: User interface, built-in reports, and intuitive navigation. Flexibility: Ability to add new modules and customize screens and fields. Integration: Integration with existing systems such as e-commerce websites, point-of-sale systems, banks, and the ZATCA platform. Support and Training: Availability of certified trainers and 24/7 technical support. Compliance with Local Requirements: Support for e-invoicing, VAT, Saudi financial reporting standards — GAAP — and Arabic language support.
Comparison of Common ERP Systems in the Saudi Market
SAP Business One: Suitable for small and medium-sized enterprises, strong in finance and inventory, with a relatively high cost. Oracle NetSuite: Fully cloud-based, integrated, suitable for mid-sized companies, with a high cost. Microsoft Dynamics 365: Excellent integration with Microsoft products such as Office and Power BI, highly flexible, and moderately priced. Odoo: Open-source, with a free Community Edition, multiple modules, high flexibility, and suitable for companies with technical capabilities. Zoho One: An integrated suite of applications, including CRM, Books, Inventory, and Projects, with a low cost and strong suitability for small enterprises. SAP S/4HANA: Designed for large enterprises, high-cost, and high-performance. Approximate Annual Price Comparison: Zoho: approximately SAR 500–1,000 per user. Odoo: approximately SAR 1,000–2,000 per user. Dynamics 365: approximately SAR 3,000–5,000 per user. SAP Business One: approximately SAR 5,000–8,000 per user.
Estimating the Total Cost of Ownership — TCO — for ERP Implementation
Costs: Licenses: Annual or perpetual usage fees. Consulting: Consultant fees for system configuration and customization. Training: Employee training. Data Migration: Data cleaning and migration. Integration: Connecting the ERP system with other systems. Infrastructure: Server hardware if the system is on-premises, or cloud costs if cloud-based. Annual Maintenance and Support: Usually 15–20% of the license cost.
Calculating the Return on Investment — ROI — for ERP
Annual Maintenance and Support: Usually 15–20% of the license cost. Calculating the Return on Investment — ROI — for ERP: Quantifiable Benefits: Reducing labor costs through automation. Reducing inventory through improved reordering. Reducing procurement costs through better supplier negotiation supported by data. Increasing sales through improved customer service. Reducing technical support costs. Example: ERP cost = SAR 500,000, annual savings = SAR 150,000. Payback period = 3.33 years. ROI = (Savings - Cost) / Cost × 100.
Practical Workshop: Selecting an ERP System Using a Decision Matrix
Required Practical Activity — Small Working Groups: Work on a hypothetical retail company with 100 employees. Identify six selection criteria with different weights. Evaluate four ERP systems — SAP Business One, Microsoft Dynamics 365, Odoo, and Zoho One — using scores from 1 to 5 for each criterion. Calculate the weighted score for each system. Present a recommendation by selecting the system with the highest score and justifying the choice. Estimate the total cost over three years for the recommended option.
03

Day Three: ERP Implementation — Lifecycle and Project Management

ERP Implementation Lifecycle
Pre-Project Phase: Conduct feasibility analysis, appoint the project manager, and form the project team. Planning Phase: Develop the project plan, including scope, budget, timeline, resources, and risks. Analysis Phase: Document current processes — As-Is — and define system requirements — To-Be. Design and Configuration Phase: Configure the system, including settings, permissions, workflows, and screen customization. Development Phase: Program the required customizations and add-ons. Testing Phase: Conduct unit testing, integration testing, performance testing, and User Acceptance Testing — UAT. Migration and Deployment Phase: Migrate data, run the system in parallel — Parallel Run — and then proceed with full launch — Go-Live. Post-Implementation Phase: Provide user support, review performance, and update the system.
As-Is Process Mapping
Use BPMN — Business Process Model and Notation — or a simple Flowchart. Example: Purchasing Process: Purchase request, prepared manually on paper. Manager approval through signature. Submission to the procurement department. Purchase order issuance using Excel. Sending the purchase order to the supplier by email. Receiving goods through manual inspection. Entering the supplier invoice manually into accounting software. Payment by cheque. Weaknesses Identified: Delays, errors, and duplicate data entry.
To-Be Process Mapping with ERP
The same process after ERP implementation becomes as follows: The employee enters the purchase request into the system through a unified screen. The approval request is automatically sent to the department manager through the system with an email notification. The manager approves with one click. The request is automatically converted into a purchase order based on approved suppliers. The purchase order is sent electronically to the supplier by email or through system integration. Upon receiving the goods, the goods receipt is entered into the system, and inventory is automatically updated. The electronic supplier invoice is automatically matched with the purchase order and goods receipt through 3-way matching. Payment is automatically scheduled. Improvements: Automation, reduced processing time, fewer errors, and real-time visibility.
Data Migration Management
Data Migration Steps: Data Mapping: Identify the data to be migrated, including the fields in the old system and how they match the fields in the new system. Data Cleansing: Remove duplicates, such as duplicate customers and products, correct errors such as incorrect phone numbers, and standardize formats such as dates and currencies. Data Extraction: Export data from the old system to Excel or CSV. Data Transformation: Modify the data to align with the structure of the new system. Data Loading: Import the data into the new system using migration tools or import templates. Verification: Compare the number of records and verify relationship integrity, such as linking customers to invoices. Importance of Accurate Data Migration: If the data is incorrect, the system will not be useful.
Practical Workshop: Preparing an ERP Implementation Plan for a Hypothetical Project
Required Practical Activity — Small Working Groups: Work on a hypothetical company with 100 employees that decides to implement an ERP system. Prepare a six-month ERP implementation plan using a Gantt Chart, including: Contracting with a consultant. System configuration. Data migration. User training. UAT testing. Go-Live. Post-implementation support. Identify the required resources, including the number of internal staff and consultants. Define the budget, including licenses, consulting, training, and cloud costs. Identify five key risks and mitigation plans. Present the plan using PowerPoint.
04

Day Four: Training, Change Management, and System Testing

User Training
Importance of Training: Lack of training is a major reason for ERP project failure. Who Needs Training? All system users, including finance, procurement, sales, inventory, human resources, and management teams. Types of Training: General Training: Provided to all employees, covering the benefits of the system and how to log in. Role-Based Training: Provided to each user group, such as sales representatives, accountants, and buyers, focusing on their specific tasks. Train-the-Trainer: Training senior employees to become internal trainers. Training Materials: User Manuals, instructional videos, and short quizzes. Training Schedule: Training should take place at least two weeks before Go-Live.
Change Management in ERP Projects
Change Management in ERP Implementation: Why Do Employees Resist Change? Fear of the unknown. Fear of job loss due to automation. Difficulty learning the new system. Lack of understanding of the benefits. Change Management Strategies: Continuous Communication: Explain the reasons for change, the benefits, and the implementation plan. Involving Key Users: Include employees from different departments in the project team and listen to their suggestions. Leadership Support: Senior management should publicly support the project. Training and Support: Provide comprehensive training and a support team after Go-Live. Addressing Concerns: Create a channel to listen to complaints and respond to them. Rewards: Reward employees who successfully adopt the system.
System Testing
ERP System Testing: Types of Testing: Unit Testing: Testing each module separately, such as the procurement module, to ensure it works correctly. Integration Testing: Testing data flow between modules, such as creating a sales order that affects inventory and finance. Performance Testing: Testing system speed when used by a large number of users, such as simulating 50 concurrent users. User Acceptance Testing — UAT: Actual users, such as sales representatives and accountants, test the system in a simulation environment and perform real scenarios, such as creating an invoice or processing a purchase. Bug Tracking: Use a tool such as Jira or Trello to record bugs, assign them to developers, and follow up on fixes.
Go-Live and Emergency Response
Go-Live Strategies: Types of Launch Strategies: Big Bang: Stopping the old system immediately and fully switching to the new system. Phased Launch: Activating modules one by one, such as finance first, then inventory, then sales. Parallel Run: Running the old and new systems together for a period of two weeks to one month, then stopping the old system. Rollback Plan: In case of a critical issue after Go-Live, such as system failure, there must be a plan to return to the old system using data backups. Post-Go-Live Support Team: A support team should be available, at least during working hours, to assist users and resolve issues immediately.
Practical Workshop: Preparing a Training Plan for Sales Users
Required Practical Activity — Small Working Groups: Work on a new ERP system that is currently being implemented. Identify the sales representative’s tasks in the system, including: Creating a quotation. Converting a quotation into a sales order. Issuing an invoice. Tracking inventory. Managing customers. Determine the training duration in hours for each topic. Define the training materials, such as a user manual and videos. Define a post-training assessment consisting of five questions. Prepare a three-day training schedule for two groups of employees. Present the training plan.
05

Day Five: ROI Measurement, Best Practices, and Comprehensive Case Study

Measuring Return on Investment — ROI — After Implementation
Measuring ERP ROI After Implementation: Metrics should be measured before and after implementation, at least 3–6 months after Go-Live. Key metrics include: Invoice Processing Time: Before implementation, for example, 10 minutes per invoice; after implementation, 2 minutes per invoice, resulting in 80% time savings. Inventory Accuracy: Before implementation, 85%; after implementation, 99%. Reduction in Excess Inventory: Before implementation, SAR 1,000,000; after implementation, SAR 700,000, resulting in savings of SAR 300,000. Month-End Closing Cycle Time: Before implementation, 15 days; after implementation, 3 days. Customer Satisfaction: Improvement in CSAT and NPS scores. Labor Cost Reduction: Achieved through automation and reduced need for manual data entry. Annual ROI Formula: Annual ROI = (Savings - Annual Maintenance Costs) / Initial Investment Costs × 100.
ERP Best Practices
ERP Best Practices After Implementation: Master Data Management: Assign a Data Steward to continuously verify the quality of customer, product, and supplier data. Regular Maintenance: Update the system and apply security patches. Backup: Perform daily data backups, either cloud-based or on-premises. Access Control: Grant users only the minimum permissions required to perform their tasks, following the principle of least privilege. Procedures Documentation: Document how to use the system for each task to support auditing and training of new employees. Periodic Review: Evaluate system performance every six months and identify improvement areas, such as new reports or additional modules.
Information Security in ERP Systems
ERP Cybersecurity and Data Protection: Threats: User account breaches. Data leakage involving customers, prices, and financial information. Viruses and ransomware. User errors, such as accidental data deletion. Security Controls: Multi-Factor Authentication — MFA: For user login. Encryption: Protecting data at rest and in transit using SSL/TLS. Audit Logs: Recording all operations, such as who created an invoice, who modified a price, and who deleted a customer. Regular Backups and Restore Testing: Performing regular backups and periodically testing restoration to ensure backup validity. Firewall and Security Patches: Using a firewall and applying the latest security updates. User Security Awareness Training: Training users not to share passwords and not to open suspicious links. PDPL Compliance: Complying with the Personal Data Protection Law when handling customer data.
Comprehensive Case Study: Final Application
Comprehensive Case Study: Scenario: A trading company with 100 employees, three branches, and 5,000 products uses separate systems: Excel for accounting, a separate inventory system, and email for sales. The company suffers from high operating costs due to duplicate data entry, errors, delayed reports, and stockouts or excess inventory. Required Practical Activity — Small Working Groups: Analyze current problems and link them to ERP benefits. Select a suitable ERP system using the decision matrix from Day Two. Prepare a brief implementation plan with a four-month timeline. Identify project costs, including licenses, consulting, training, and data migration. Estimate annual savings, including inventory reduction, time savings, and error reduction. Calculate ROI and the payback period. Define a user training plan. Define a change management plan explaining how employee resistance will be handled. Present the proposal to senior management using PowerPoint.
Final Assessment and Review of the Fifteenth Course
Final Assessment and Course Review: Short objective questions covering ERP concepts, components, benefits, selection criteria, implementation phases, change management, data migration, and ROI measurement. The session also includes a review of the key points covered over the five days.
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