WATER MANAGEMENT INTIATIVE WMI INTRODUCING INTEGRATED ENTERPRISE RESOURCE

WATER MANAGEMENT INTIATIVE (WMI) INTRODUCING INTEGRATED ENTERPRISE RESOURCE PLANNING SYSTEMS AND ISO IN JORDAN’S WATER UTILITIES Speakers: Mahmoud Al-Zoubi, IT Manager, YWC Tamer Al-Assa’d, Water Sector Governance Advisor, WMI March 2019 Arab Water Week 1

OUTLINE Enterprise Resource Planning (ERP) vision for the Water Sector • Current situation • A new vision • Benefits • Success requirements Yarmouk Water Company (YWC) ERP • ERP phases and status • Achievements • Making the Difference March 2019 Arab Water Week 2

ERP VISION FOR THE WATER SECTOR March 2019 Arab Water Week 3

CURRENT SITUATION – ERP March 2019 No. Item WAJ YWC Miyahuna AWC JVA MWI 1 Brand Oracle Sage / Acc. Pac (Financials) MS Dynamics 365 Oracle 2 Version 11 i R 12 - - 11 i 3 Utilization Low 90% - - High - 4 Licensing Under - - 5 Go-Live Date 2005 2018 2004 2018 2003 2005 6 Current Phase 1 Core Mod Off 7 Future Phase Re-Imp. 2 All Mod. New All Mod. 2 All Mod. - - Arab Water Week 4

CURRENT SITUATION – IT SYSTEMS • One Customer Information System, but Information flow – Lacking many functions Miyahun a MWI – Many databases and disintegrated • Many other IT systems – Operate as islands WAJ YWC JVA AW – No standardization – Different platforms – Limited quality assurance March 2019 Others Arab Water Week 5

IDEAL SOLUTION FOR ALL UTILITIES Unified Database and Application ERP, CIS, CRM, HR, Procurement, Budgeting & Consolidation reports at Owner’s end MWI WAJ Miyahun a JVA Unified Platform YWC Others March 2019 AW Arab Water Week 6

A MORE EFFICIENT IMPLEMENTATION • • • March 2019 One integrated business Needs integrated systems across the water sector System with all modules Standardization of processes and information Data base management Optimized hardware environments less costly to sustain and maintain IT manpower efforts Faster implementation Knowledge transfer in many areas of the ERP True Customer Information System (CIS) with full functionality is currently missing Arab Water Week 7

KEY FINANCIAL PRINCIPLE • Unified structure of Chart of Accounts (COA) – Ease consolidated reporting – Efficient comparability • Each governorate shall be treated as a separate entity that has its own balances and financial reporting. – Maintain accounts balances for each governorate separately. – Increase the ability to properly evaluate the performance of each governorate. – Significantly facilitate any future commercialization activity for any governorate at any point of time. • Intercompany accounts will have to be used for transactions between different governorates March 2019 Arab Water Week 8

ERP DEVELOPMENT PHASES March 2019 Arab Water Week 9

BPR AND ISO BPR ISO • Aims: Processes improvement • Aims: Continuous process improvements • How: Re-design of business processes • How: Optimizes processes through risk based management • Normally radical change • Recommended first • Continuous and constant • After BPR • Management responsibilities are defined and documented • Standardization of processes March 2019 Arab Water Week 10

COST-BENEFIT ANALYSIS FOR ONE ERP – DIRECT BENEFITS Benefit item Benefit description Net Benefit ERP license • • • Reduce licenses cost for database Reduce license cost of application users Reduce annual maintenance support fee Cost saving by 30 -40% ERP hardware • • Cost saving by 30 -50% • • • Eliminate redundant hardware usage Using a one centralized Information Communication and Technology Unit (ICTU) More secured network and hardware Enforce using common standards Reduce hardware maintenance & support cost Hardware with Virtualization technology Reduce IT support staff Hardware maintenance time • • Shorter implementation life cycle One Request for Proposal (RFP) Lower implementation cost Water sector business strategy Cost saving by 30% ERP implementation March 2019 Arab Water Week 11

COST-BENEFIT ANALYSIS FOR ONE ERP – INDIRECT BENEFITS Benefit item Benefit description Net Benefit Information availability for decision making • • • Reduce significantly reporting period Creating redundant reports Improved accessibility Manual compilation of data is reduced Less staff is needed to collect and prepare information Cost saving by 30% Streamlining the Water Sector business Allow data access across the Water Sector Creating Key Performance Indicators (KPIs) and dashboards one time Time Cost saving by 30% Quick access to • information • • Maintaining IT systems • • • One system Support Contract Solution Support Center (SSC) Upgrades and updates Cost saving by 30% Integration • No more issues (duplicate and wrong data) with data spread across separate databases All information will be hosted in a single location Integrated CIS module with Customer Relations Management (CRM) Single sign-on Arab Water Week Add-on module Benefit to the business Time Cost saving by 30% • • March 2019 • • 12

SUCCESS REQUIREMENTS 1. Top management commitment 3. Initial investment - BPR – standardizations - Hardware - Change management and staff resistance - License – ERP and operating systems - Timely decisions and involvement 4. O&M budget - Maintenance support in place 2. Staffing and responsibility - Continuous up-date - Functional and IT - Who manages what? March 2019 Arab Water Week 13

ERP IMPLEMENTATION IN YWC March 2019 Arab Water Week 14

OVERALL PHASES AND STATUS ERP Pre-Implementation Era • Almost daily duties of all divisions was worked out manually • Integrations between EBS’s Modules was not activated • Reports of all kinds were produced Manually or through silo systems • Control was not a focal point March 2019 ERP Implementation Phase • Business cycles reengineered • Upgrade & Implementation • User training • Testing • Data Cleansing • Go-live Arab Water Week ERP Post-Implementation Life Cycle • 9 Modules – see next slide • Interfacing with the Customer Service Department • Interfacing with the main Bank Accounts • Financial Statement Generator • Reporting 15

ACHIEVEMENTS – 9 WORKING MODULES 9 Ad don Modules of Oracle EBS release 12. 2. 6 have replaced the outdated of 2006 EBS 11 i Cash Manageme nt March 2019 Arab Water Week 16

ACHIEVEMENTS – BEFORE & AFTER March 2019 Arab Water Week 17

ACHIEVEMENTS – TRAINING 327 users Got training courses March 2019 Arab Water Week 18

ACHIEVEMENTS – ACCESSIBILITY 33 Locations Across 11 ROUs of the 4 governorates are connected to the ERP for the first time since 2006 ERP User March 2019 173 Arab Water Week 24 40 57 19

ACHIEVEMENTS – GOVERNANCE Policies & Procedural Manuals • • March 2019 New Financial Policy approved on January 2017 Full implementation with detailed manuals and SOPs until January 2018 Arab Water Week 20

MAKING A DIFFERENCE! March 2019 • Developed new scalable Chart of Accounts (Co. A) & Cost Centers (CC), • Recoded the Inventory, Fixed Asset (partially), and Natural Accounts, • Activated the Cash Management module, • Changed the Inventory calculation method from periodic to perpetual, • Built an Approval Hierarchy for the procurement activities, • Integrated the Accounts Receivable Module with the Cash-Desk software • Interfacing the CS systems with the financial systems • Automated the Procurement Cycle; Procure-to-pay Arab Water Week 21

MAKING A DIFFERENCE! • Building the Accrual Budget for the year of 2019 • Policy prepared of: Finance, Fixed Asset, Budget Preparation, Fleet Management, Inventory coding • Report building, high level of accuracy, more integration, more control, saving time, • Closing the year of 2018 through the ERP system • Fixed the recurring formulas and Master Data of the HR & Payroll modules, • Activated the regional financial, procurement and HR branch activities with the ERP for the first time since 2006. March 2019 Arab Water Week 22

Thank You March 2019 Arab Water Week 23