Middle-east Arab News Opinion | Asharq Al-awsat

Middle East to see large-scale implementation of ERP solutions, says Al-Falak Chief | ASHARQ AL-AWSAT English Archive 2005 -2017
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Dubai-Ahmed Ashadawi, President and CEO of Al-Falak Electronic Equipment and Supplies, a leading IT and communications solution provider in the Gulf region, has commented that countries in the Middle East and North Africa (MENA) region, especially Saudi Arabia, are witnessing extensive implementation of Enterprise Resource Planning (ERP) solutions, with over 75 per cent of the companies in the Kingdom alone gearing up to deploy or upgrade ERP solutions.

&#34There is now a greater understanding of the importance of technology in complementing growth strategies of enterprises. Businesses have realized that the implementation of ERP solutions is no longer a luxury but a necessity to remain competitive and profitable. As a result, more and more companies in the region are implementing ERP solutions to streamline internal and external business processes such as human resources, financials and customer relationship, and facilitate efficient management of the organization”s day-to-day operations,&#34 Ashadawi said.

&#34ERP solutions offer total business control from a single, integrated package. ERP reduces the administrative costs of sharing information, and process standardization and integration across organizational units to enable the centralization of administrative activities,&#34 he said.

Ashadawi added: &#34Saudi Arabia has emerged as leaders in this segment, and ERP spending in the Kingdom accounts for nearly 40 per cent of the overall spending in the MENA region. Moreover, a recent independent study has found that over 75 per cent of the companies in Saudi Arabia are gearing up to deploy or upgrade ERP solutions.&#34

ERP is an information system that integrates all manufacturing and related applications for an entire enterprise. ERP covers the broad set of activities supported by multi-module application software that help an enterprise manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders.

&#34There has also been a marked trend towards outsourcing in the region. Outsourcing allows organizations to focus on their primary business objectives and shift the management of administrative tasks such as human resources and payroll to a dedicated provider, thereby ensuring access to better services while reducing costs. Major overseas businesses are now realizing that pursuing a Middle East sourcing strategy will help them gain in business process efficiencies, and as a result, the region is set to witness a surge in outsourcing activities,&#34 Ashadawi said.