Speakers : Mahmoud Al- Zoubi , IT Manager, YWC

1. 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

2. 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 Arab Water Week

3. ERP VISION FOR THE WATER SECTOR Arab Water Week

4. CURRENT SITUATION – ERP Arab Water Week

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

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

7. A MORE EFFICIENT IMPLEMENTATION 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

8. 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 Arab Water Week

9. ERP DEVELOPMENT PHASES Arab Water Week

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

11. COST-BENEFIT ANALYSIS FOR ONE ERP – DIRECT BENEFITS Arab Water Week

12. COST-BENEFIT ANALYSIS FOR ONE ERP – INDIRECT BENEFITS Arab Water Week

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

14. ERP IMPLEMENTATION IN YWC Arab Water Week

15. OVERALL PHASES AND STATUS ERP Implementation Phase ERP Post-Implementation Life Cycle 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 • Business cycles reengineered • Upgrade & Implementation • User training • Testing • Data Cleansing • Go-live • 9 Modules – see next slide • Interfacing with the Customer Service Department • Interfacing with the main Bank Accounts • Financial Statement Generator • Reporting Arab Water Week

16. ACHIEVEMENTS – 9 WORKING MODULES 9 Modules of Oracle EBS release 12.2.6 have replaced the outdated of 2006 EBS 11i Add-on Cash Management Arab Water Week

17. ACHIEVEMENTS – BEFORE & AFTER Arab Water Week

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

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

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

21. MAKING A DIFFERENCE! • Developed new scalable Chart of Accounts (CoA) & 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 • Automated Bank reconciliation Arab Water Week

22. 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. Arab Water Week

23. Thank You Arab Water Week