The document proposes a centralized Enterprise Resource Planning (ERP) system called ADERP for 64 government entities in Abu Dhabi. ADERP will integrate financials, procurement, human resources, projects, and business intelligence capabilities on a shared infrastructure platform. This is expected to align with Abu Dhabi's 2030 vision, improve compliance with financial laws and regulations, provide unified reporting, reduce costs through economies of scale, and increase autonomy and support for the entities. The system is estimated to save over AED 750 million compared to separate ERP deployments across entities.

1. Document No. ITO-FM-001-01 Restricted
November 27, 2013
Abu Dhabi ERP Shared Service
7th OECD MENA SBO
Abu Dhabi, 10th December, 2014

2. Document No. ITO-FM-001-01 Restricted
●Introduction
●Case for Change
●Best Practices
●ADERP Solution
●Benefit Analysis
Agenda

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The Abu Dhabi Shared Enterprise Resource Planning (ADERP) solution is an electronic shared service allowing Government entities to manage their internal and external resources.
The ADERP platform also provides centralized reporting capabilities which empower the AD Government with the visibility needed to manage the enablers of its 2030 vision.
Solution is deployed on shared infrastructure platform which leverages economics of scale.
Definition of the ADERP
Financials & Assets
Procurement Inventory & Supply Chain
Human Resources
Projects
Business Intelligence & Reporting

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DoF Aspires To Establish A Centralized ERP As Per Executive Council Decree, And In-line With Its Vision
Department of Finance’s Vision
DoF’s mandate for the Emirate of Abu Dhabi revolves around five key areas
The Executive Council has decreed a centralized ERP across Abu Dhabi government entities
“Achieving prosperity of Abu Dhabi through world-class financial management and sound fiscal policy.”
•Foster an effective and prudent financial management framework across the Abu Dhabi government
•Provide proper financing for government initiatives including private-sector participation
•Enable optimal use of financial resources through sound planning and performance monitoring
•Advise on fiscal policies
•Provide world class customs administration services for Abu Dhabi government
Source: DoF personnel interviews; www.DoF.gov.sa/english/
•The centralization of the ERP system for 64 government entities within Abu Dhabi into a shared service instance
•Help decision makers.
•The unification of HR system within Abu Dhabi’s entities

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Usage of the ADERP
AD Government entity employee: I use the ADERP to run my HR, Finance, Procurement, Project and Reporting internal processes
AD Government business operations employee: I use the ADERP to run central HR, Finance, Budgeting, Payroll and Reporting cross-Government processes
ADERP

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Phase I
DOF Financials
& Payroll
Implementation
Phase II Phase V
1995 1999 2001 2007
Phase III Phase IV
FMS Upgrade to
Oracle R12 with
New COA
2010
Package
Selection
Deployment of FMS
To Selected
Departments
FMS Deployment
To Remaining
Departments
ADERP Road Map (1995-2014)
Centralized ERP
across 64 Abu
Dhabi government
entities
Phase VI
2013

7. Document No. ITO-FM-001-01 Restricted
●Introduction
●Case for Change
●Best Practices
●ADERP Solution
●Benefit Analysis
Agenda

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Abu Dhabi’s Centralized ERP Is Driven By Laws And Delivers Key Enhancements To Government Entity Operations
Laws drive centralization initiative…
… which accomplishes numerous objectives
2030 vision
Compliance
Reporting
Cost effectiveness
Autonomy
Support
Ease of Access
Integration
Source: Executive instructions of the Financial Law #18 for the year 2006 ; Abu Dhabi Shared Government Enterprise Resource Planning Program (SGERP) objectives
Manage KPIs and benefits of all government initiatives
Consistent compliance with government regulations
Unified and holistic view of business information
Cost-effective infrastructure leveraging economics of scale
Flexible platform allowing autonomous entity operation
Expert and efficient support and training
Timely & efficient access to critical government information
End -to-end business processes across functional boundaries
Executive instructions of the Financial Law #18 for the year 2006 assert that:
•DoF is to prepare budget and closing
•Entities are to adhere to a unified CoA
•Entities have certain governance responsi- bilities on their data
•HR payroll is to be unified across entities

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Various Clauses Within Executive Instructions Of Financial Law 18 Of 2006 Are Enabled Or Supported By A Shared ERP At DoF (1/5)
Source: Executive instructions of the Financial Law #18 for the year 2006
Section
Article
Clause
Instruction
Implication (required capabilities)
1
3
2
The Department of Finance is to prepare the general budget and closing accounts (balances)
DoF needs comprehensive, timely access to entity financials which would be highly optimized through an automated system running on centralized data, as opposed to manually polling entities for information
2
7
1
It is required that all government entities whose budget is constituted within the general budget to adhere to the approved government chart of accounts
The Instructions require a consistent implementation of a unified chart of accounts across all government entities, adhering to the approved DoF CoA. This is not the case across all government entities today, and would be both enabled and enforced through a centralized system with one CoA
3
14
Several
[entities are required to use a unified payroll system across the government, with the DoF responsible for reviewing payroll variance]
A centralized HR system would greatly facilitate a consistent system for payroll by entities and variance review and analysis by DoF, which would otherwise be very cumbersome to manually review without errors
Not exhaustive

10. Document No. ITO-FM-001-01 Restricted
●Introduction
●Case for Change
●Best Practices
●ADERP Solution
●Benefit Analysis
Agenda

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Besides Ensuring Fulfillment of Requirements, Looked at Best Practice Around Shared Services
Laws and Requirements
Additional Best Practices
•We will make sure that our way forward both:
−Supports the law
−Fulfills entity requirements and objectives
•In addition, best practices on which the proposed solution will be based
+
ADERP will respect the law, take into account the Executive Council decree, ensure fulfillment of entity objectives, and be based on best practices

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Similar Implementations
UK
MoF, Bosnia
MoF, Egypt
MoF, Uganda MoF, Saudi
Arabia
MoF, UAE
MoF, Jordan
Ministry of
Treasury, Russia

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ADERP Benchmark Analysis
S. No.
Application
Ministry of Finance, Bahrain
Department of Finance, Madhya Pradesh - India
Department of Finance, Dubai
Ministry of Finance, UAE
Ministry of Finance, Singapore
Department of Finance and Personnel, Northern Ireland
1
Human Resource (HR)
Oracle e-Business suite
Custom Application based on J2EE/SOA
Oracle e-Business suite
Oracle e-Business Suite
SAP Human capital Management
Oracle e-Business suite
2
Finance application(Budget)
Oracle e-Business suite
Custom Application based on J2EE/SOA
Oracle Application
Oracle Hyperion Planning
SAP Financial Management
Custom Application based on J2EE/SOA
3
Finance (Accounting)
Oracle e-Business suite and custom application
Oracle e-Business suite
Oracle e-Business suite
Oracle e-Business Suite
SAP Financial Management
Oracle e-Business suite
4
Finance (Treasury management)
Oracle e-Business suite – and custom Treasury contract system (based on .Net)
Custom Application based on J2EE/SOA
Oracle e-Business suite
Oracle e-Business Suite
SAP Financial Management
Oracle e-Business suite
5
Finance (Asset management)
Oracle e-Business suite 11.5.10
Custom Application based on J2EE/SOA
Oracle e-Business suite
Oracle e-Business Suite
SAP Financial Management
Oracle e-Business suite
6
Finance (Inventory, Purchase, Support, Property management)
Oracle e-Business suite 11.5.10
Custom Application based on J2EE/SOA
Oracle e-Business suite
Oracle e-Business Suite
SAP Property and Inventory Management and Custom application based on J2EE/SOA
Oracle e-Business suite
7
Business Intelligence/Reporting
Crystal reports
Oracle BI Enterprise Edition
Oracle BI Enterprise Edition
Oracle reports
SAP Reports and Oracle Reports
Oracle reports

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Shared Services Have Proven To Impact Cost Savings
Significantly …
0.73
1.26
-42%
47
89
-47%
0.68
0.85
-20%
Finance Cost
As a percent of total budget
HR Cost
USD spend per employee
Procurement Cost
As a percent of total spend
Source: Hackett Shared Services Performance Study Results
Standard
Shared service

15. Document No. ITO-FM-001-01 Restricted
●Introduction
●Case for Change
●Best Practices
●ADERP Solution
●Benefit Analysis
Agenda

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DoF Proposed Solution Was Carefully Composed To Address The Implications of Financial Law’s Executive Instructions (1/5)
Source: Executive instructions of the Financial Law #18 for the year 2006
Instruction
Implication (required capabilities)
Required Solution Components
The Department of Finance is to prepare the general budget and closing accounts (balances)
DoF needs comprehensive, timely access to entity financials which would be highly optimized through an automated system running on centralized data, as opposed to manually polling entities for information
Government entities are responsible for setting up an internal governance system in compliance with financial governance requirements …
Entities require consistent and comprehensive governance tools to enable them to track and monitor transactions and information access, as well as log and report on these findings to ensure compliance with law and financial regulations
The head of a government entity is given the right to delegate approval rights and other authorities …
Entities require a system with a consistent and comprehensive set of workflows for approvals and devolution of power, in adherence with a consistent set of laws, regulations, and instructions
Financials
Financial Mgmt
Planning
FDQM
Financial Mgmt
BI & Reporting
GRC
Core ERP & HCM
GRC

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Change
Management
Use r Productivity Kit
Master Data Management
Technology
Infrastructure
Business Intelligence & Reporting
Procurement & Spend Analytics
EPM
GRC
Public Sector
Budget
Core ERP & HCM
Financial Analytics
Human Capital Mgmt Analytics
Planning
Financial
Management
Project
Finance
Financial Data Quality Management
Financials
Procurement
Human
Capital
Mgmt
GRC Control
GRC Manager
GRC Intelligence
Data Relations Management
Sites
Banks
Customers
Suppliers
Inventory
Others
DoF Proposes A Robust, Functional Solution To Support Abu Dhabi’s Centralized System ...

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ADERP Is Designed To Meet Abu Dhabi’s Requirements With Best Practices In Mind
ADERP proposed solution …
… is designed with several key considerations in mind
•Unifying the government’s chart of accounts consistently
•Effectively extending the successful DoF ERP footprint for the benefit of all 64 Abu Dhabi government entities
•Consolidating and centralizing the government ERP and largely standardizing its utilization
•Enhancing the data quality across entities’ financial, customer, supplier, and other data for improved consistency across the government
•Improving governance and visibility on government data and information

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DoF Will Also Create A Competency Center To Provide All The Support And Continuous Improvements For The Shared ERP
Organizations are establishing competency centers to leverage on the gained experience and trained resources to maintain continuous improvement and solution evolution to get the best outcome of system investment
Develop strategy
Build business case
Manage programs
Prioritize requirements
Implement requirements
Develop knowledge
Develop talent
Manage complexity
Develop strategy and roadmap to accomplish DoF’s objectives
Build ROI/Business case for each project and manage the funding
Manage and control the approved projects / programs
Prioritize and evaluate the business and technical change requests
Implement new requirements based on business priorities
Develop knowledge to increase the efficiency and effectiveness of processes
Retain and develop talents who participated in the initial implementation
Manage the cross- functional complexity of the ERP solution
Roles of DoF Competency Center

20. Document No. ITO-FM-001-01 Restricted
●Introduction
●Case for Change
●Best Practices
●ADERP Solution
●Benefit Analysis
Agenda

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Abu Dhabi Stands To Realize Benefits, Not Only In IT, But Also In Other Business Metrics Across Its Government Entities
Proposed solution accomplishes the initiatives’ aspirations and objectives …
… bringing tangible IT as well as other business benefits
Value
IT Benefits
Business Benefits
•Savings in:
−Implementation
−Support
−Infrastructure
•Metric improvements in:
−Time / effort to carry out operational tasks
−Transaction and information governance
−Others
2030 Vision Alignment
Enhanced Compliance
Visible Reporting
Cost effectiveness
Autonomy
Improved Support
Ease of Access
Integration

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108
50
60
126 98
-88%
Cost of Shared
Service ERP
Additional
module cost (+)
34
Infrastructure
savings (-)
Support
savings (-)
Implementation
savings (-)
594
Distributed
816
630
Overall, The Recommended Solution Would Result In Substantial
Savings And Deliver A Best Practice Solution To Entities
Summary of shared service savings
AED millions
Sources: DoF cost assessment workshop
Non-shared
deployment
Savings from shared service
(AED 752 million)
Best practice
additions
Shared service
deployment
Infrastructure
Support
Implementation
Additional modules

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Conducting A Case Study On DoF Itself Suggests Promising
Improvements For Entities, Especially Ones Not Running An ERP
Sample metric improvements at DoF
Sources: DoF ERP results assessment workshop
Finance
Bank
Reconciliation
(days)
Procurement Human Resources
Annual close
(months)
Budgeting
process
(months)
Payables
(days)
1
10
1.5
4
1
3
3
45
Purchasing
cycle
(days)
Supplier
registration
(days)
Receiving
Leave request
processing
(days)
Payroll
processing
(days)
Hiring cycle
(months)
Production of
salary cert.
(days)
1
7
1
5
minutes
hours
3
instant
1
7
2
15
1
4
Before ERP implementation After ERP Implementation

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Thank You