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Turning on the Tap
Tuesday 30 October 2007, by : Alex Malouf
By any accounts, SWCC is a huge organization. The largest desalination firm in the world, SWCC manages 30 water desalination plants and four thousand kilometers of pipelines, has over 10,000 employees, and owns just over US$21 billion dollars worth of assets. Several new plants are set to come online over the next few years, dramatically boosting SWCC’s water output and ensuring that it’s operations utilize the latest in desalination know-how. The company also generates a fifth of the Kingdom’s electricity to round off its to-do list.
And it’s not only demand for water that is raising the stakes at SWCC. Following King Abdullah’s vision to energize the public sector, SWCC is looking to go down the IPO route in the coming two years by offering a 60 percent stake to private sector investors. With all these tasks in hand and in its drive to improve efficiency across the board prior to privatization, SWCC has turned to technology.
The brainchild of Engineer Abdullah Al Khedher, restructuring programme team member and executive director to the initiative, SWCC’s electronic transformation programme aims to rehaul how the corporation does business. “This project is the largest technology transformation scheme of its kind in not only the public but also the private sector today. There’s nothing of this size and scope in the Kingdom today, and there won’t be for some time.”
Led by Al Khedher, SWCC’s technology team has been tasked with some tight deadlines and lofty goals. The three-tiered strategy involves a number of overlapping projects, including the implementation of Oracle’s ERP of choice – Oracle E-Business Suite alongside Datastream’s asset management system. SWCC’s second step is to review and modify existing corporate systems for streamlining with Oracle’s ERP. The third and longest phase will be to link SWCC’s systems and services to other government departments through the Kingdom’s Yesser programme.
“Our aim is to develop the organization into the leading utility firm in not just Saudi Arabia, but across the wider region. By offering Saudi citizens, SWCC suppliers, and our business partners the ability to benefit from online services we’ll be pushing the boundaries of customer service and reliability,” claims Al Khedher.
The challenges facing SWCC are startling; with over 30 stations and three central bases the implementation team will have their work set out traveling across the Kingdom ensuring that systems are in place and business processes are being followed. Add to that the Kingdom’s relatively poor communications infrastructure, and the challenge of rolling out change management programmes for over 10,000 employees among other obstacles, and the scope of work needed to make the project work becomes crystal clear. By bringing in the experts, including Ernst and Young, Booz Allen Hamilton, and Devoteam among others, Al Khedher is fully confident that SWCC can succeed where others have failed.
“By leveraging off their expertise, their talents, and their understanding of what we are trying to achieve, we believes that we’ll have the capabilities to realize the aims of the electronic transformation programme. What’s most important for us is two things – the results of our change management initiatives, and the support from our executive management and the Governor himself,” notes Al Khedher.
A key driver in the IT business, as any seasoned professional will tell you management buy-in can make or break any technology project. As part of its long-term strategy to attract investment through privatization, C-level support for Al Khedher and his team is helping to overcome any resistance to change and push through the necessary changes.
“SWCC has to show that it is worth investing in; an investor will not seriously consider your company if your equipment, your people, and your processes are out of date. We have to modernize our technology, our equipment, and roll out the latest standards to encourage the private sector to invest. SWCC is confident that the outlays we are making today will result in not only greater efficiencies and savings but also a higher valuation come privatization, and that does matter to me and the board,” explained Governor Feheid Bin Fahd Al Shareef.
According to Al Khedher, that backing will become vital as the clock ticks down to privatization. With bold schedules including 12 months for a full Oracle HRMS, financial, and supply chain implementation, SWCC’s undertaking has been billed as one of the most ambitious projects in the public sector. When you take into account the widespread adoption of IT projects among government departments thanks to King Abdullah’s e-initiative, it’s no small boast. But the pay off for SWCC will be worth the risk, reckons Al Khedher.
“We want our employees to use the latest technology and be well trained before privatization to ensure the utmost confidence in our customers and investors. By taking these steps today and by addressing issues such as effective change management we are ensuring that SWCC will remain on a strong footing for decades to come and become a technology leader in both the government space as well as in the private sector when we privatize,” added Al Khedher.
Adoption of Oracle’s widely touted E-Business Suite should see SWCC leverage off its business operations much more effectively once the ERP is live. With an effective human resources management system (HRMS), SWCC will be able to substantially cut people-related costs whilst measuring the performance, productivity and effectiveness of employees. Looking towards best practices from the US, SWCC is currently implementing a HRMS competency model; currently only deployed in the private sector, SWCC will be the first government organization to deploy a competency model allowing for effective performance measurement of employees weighed against their authorities and responsibilities.
“Developing and training our workforce is a priority for SWCC. Over 75 percent of our 10,000 employees are Saudi nationals based throughout Saudi Arabia and it’s vital that we have the ability to comply, automate, measure, and align our HR systems across the country. By rolling out a competency model, which is only used in two other Saudi corporations as of today, we’ll be able to deploy a single integrated data model for an up-to-the-instant accurate view of any HR activities, including recruiting, performance management, learning, compensation, benefits, payroll, time management, and real time analytics,” notes Al Khedher.
An overhauling of SWCC’s financial systems may prove to be a more complicated affair. With dual payment systems – one for the private sector and one for the public sector – SWCC’s monetary processes will require a multi-dimensional analysis approach within a single system. With privatization looming large, Al Khedher’s remit is to develop SWCC’s financial capabilities to measure more effectively the performance of each business unit against planned work and budgets, improve the recording of financial transactions, and isolate sources of variance.
One other area which SWCC’s IT team has been tasked with tackling is the corporation’s supply chain systems. At present, managers are not able to track where spare parts are in the system, or are they able to report on stock levels without lengthy and time-consuming stock taking. Oracle’s Supply Chain module should ensure that SWCC has an up-to-date record of every piece of equipment owned by the corporation. Furthermore, the system will allow SWCC to link electronically with suppliers, cutting down on operational and maintenance costs as well as lead time for spare parts while increasing the level of service afforded to its infrastructure. SWCC’s supply chain application will enable the organization to accurately and efficiently report on stock parts through the implementation of intelligent systems while also reducing the amount of stock parts.
Last but not least, there’s the upgrade of the maintenance systems. As of today, SWCC uses diverse, separate maintenance systems across its network of stations and power plants. Al Khedher’s aim is roll out a single solution integrated with other systems to provide a single view of information as SWCC upgrades from a material management system to a modern enterprise asset management. The new system includes machine utilization, maintenance, and human resources, and report production.
“Our goal is to enable SWCC to restructure for best business practices and set an example for other government bodies to follow. Through deploying an integrated, single point of truth for management, we’ll be leading the way in terms of technology utilization. We will continue to work towards improving our efficiency and service offerings as well as automating and integrating our systems to deliver accurate and fast information to the executive management at SWCC,” maintains Al Khedher.
As head of the project management office, Al Khedher has to co-ordinate between all the different parties involved in the electronic transformation programme. By working to a standard methodology for project management – that of the internationally-renowned Project Management Institute – Al Khedher and SWCC have avoided duplicating work between themselves, their consultants, and implementers. However, as Al Khedher will readily admit to, the IT transformation is simple. It’s the people which most concerns him.
“Without acceptance from our employees, any changes we make in terms of business processes and technology will have gone for nothing. We’re focusing on individuals to achieve a number of set goals, to help the employee accept the change and minimize any resentment. What we’re hoping for is that our change management initiatives will reduce the impact of change on daily operations and enable SWCC to manage change effectively by minimizing the time required for employees to do their jobs during any period of change.”
If all goes to plan, then SWCC will join the ranks of Aramco and SABIC as being labeled technology leaders in both the public and private spaces. Within two years time and following privatization, the organization will become the largest private desalination company in the world.
“We have been operating for over 35 years in the water sector, and the Saline Water Conversion Corporation is a major player in the desalination industry producing around 18 percent of the world’s desalination production. We are at a transition stage in the organization’s history, and our transformation programme is one of the largest such initiatives in the Kingdom of Saudi Arabia. Following the guidance of the custodian of the Two Holy Mosques, King Abdullah Bin Abdul Aziz Al Saud, SWCC is looking to adopt technology as a pillar of our operations. The implementation of such state of the art technology will minimize risks, ensure critical success factors and allow the organization to realize its true value upon privatization,” explained Governor Alshareef.
“Population growth allied with Saudi Arabia’s economic expansion mean that desalinated water is gradually becoming the only source of potable water in highly populated areas throughout the Kingdom. By attracting additional investment through privatization SWCC will be able to ensure that the water needs of the country today and tomorrow are met by expanding our water production infrastructures and transmission systems. Leveraging off technology will allow our organization to become more efficient while attracting the confidence of Saudi investors,” added the Governor.
So there you have it. Thanks to technology, the desert Kingdom of Saudi Arabia will have an abundance of fresh water for some time to come as well as leading the field in the desalination industry. And a return on investment that you can measure in stocks and shares. Now, doesn’t that appeal to CEOs across the region?
Tuesday 30 October 2007, by : Alex Malouf
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 SWCC's Governor has put his weight behind the plan |
And it’s not only demand for water that is raising the stakes at SWCC. Following King Abdullah’s vision to energize the public sector, SWCC is looking to go down the IPO route in the coming two years by offering a 60 percent stake to private sector investors. With all these tasks in hand and in its drive to improve efficiency across the board prior to privatization, SWCC has turned to technology.
The brainchild of Engineer Abdullah Al Khedher, restructuring programme team member and executive director to the initiative, SWCC’s electronic transformation programme aims to rehaul how the corporation does business. “This project is the largest technology transformation scheme of its kind in not only the public but also the private sector today. There’s nothing of this size and scope in the Kingdom today, and there won’t be for some time.”
Led by Al Khedher, SWCC’s technology team has been tasked with some tight deadlines and lofty goals. The three-tiered strategy involves a number of overlapping projects, including the implementation of Oracle’s ERP of choice – Oracle E-Business Suite alongside Datastream’s asset management system. SWCC’s second step is to review and modify existing corporate systems for streamlining with Oracle’s ERP. The third and longest phase will be to link SWCC’s systems and services to other government departments through the Kingdom’s Yesser programme.
 SWCC's dream team in all their glory |
The challenges facing SWCC are startling; with over 30 stations and three central bases the implementation team will have their work set out traveling across the Kingdom ensuring that systems are in place and business processes are being followed. Add to that the Kingdom’s relatively poor communications infrastructure, and the challenge of rolling out change management programmes for over 10,000 employees among other obstacles, and the scope of work needed to make the project work becomes crystal clear. By bringing in the experts, including Ernst and Young, Booz Allen Hamilton, and Devoteam among others, Al Khedher is fully confident that SWCC can succeed where others have failed.
“By leveraging off their expertise, their talents, and their understanding of what we are trying to achieve, we believes that we’ll have the capabilities to realize the aims of the electronic transformation programme. What’s most important for us is two things – the results of our change management initiatives, and the support from our executive management and the Governor himself,” notes Al Khedher.
A key driver in the IT business, as any seasoned professional will tell you management buy-in can make or break any technology project. As part of its long-term strategy to attract investment through privatization, C-level support for Al Khedher and his team is helping to overcome any resistance to change and push through the necessary changes.
“SWCC has to show that it is worth investing in; an investor will not seriously consider your company if your equipment, your people, and your processes are out of date. We have to modernize our technology, our equipment, and roll out the latest standards to encourage the private sector to invest. SWCC is confident that the outlays we are making today will result in not only greater efficiencies and savings but also a higher valuation come privatization, and that does matter to me and the board,” explained Governor Feheid Bin Fahd Al Shareef.
 Al Khedher is heading up the team internally |
“We want our employees to use the latest technology and be well trained before privatization to ensure the utmost confidence in our customers and investors. By taking these steps today and by addressing issues such as effective change management we are ensuring that SWCC will remain on a strong footing for decades to come and become a technology leader in both the government space as well as in the private sector when we privatize,” added Al Khedher.
Adoption of Oracle’s widely touted E-Business Suite should see SWCC leverage off its business operations much more effectively once the ERP is live. With an effective human resources management system (HRMS), SWCC will be able to substantially cut people-related costs whilst measuring the performance, productivity and effectiveness of employees. Looking towards best practices from the US, SWCC is currently implementing a HRMS competency model; currently only deployed in the private sector, SWCC will be the first government organization to deploy a competency model allowing for effective performance measurement of employees weighed against their authorities and responsibilities.
“Developing and training our workforce is a priority for SWCC. Over 75 percent of our 10,000 employees are Saudi nationals based throughout Saudi Arabia and it’s vital that we have the ability to comply, automate, measure, and align our HR systems across the country. By rolling out a competency model, which is only used in two other Saudi corporations as of today, we’ll be able to deploy a single integrated data model for an up-to-the-instant accurate view of any HR activities, including recruiting, performance management, learning, compensation, benefits, payroll, time management, and real time analytics,” notes Al Khedher.
An overhauling of SWCC’s financial systems may prove to be a more complicated affair. With dual payment systems – one for the private sector and one for the public sector – SWCC’s monetary processes will require a multi-dimensional analysis approach within a single system. With privatization looming large, Al Khedher’s remit is to develop SWCC’s financial capabilities to measure more effectively the performance of each business unit against planned work and budgets, improve the recording of financial transactions, and isolate sources of variance.
One other area which SWCC’s IT team has been tasked with tackling is the corporation’s supply chain systems. At present, managers are not able to track where spare parts are in the system, or are they able to report on stock levels without lengthy and time-consuming stock taking. Oracle’s Supply Chain module should ensure that SWCC has an up-to-date record of every piece of equipment owned by the corporation. Furthermore, the system will allow SWCC to link electronically with suppliers, cutting down on operational and maintenance costs as well as lead time for spare parts while increasing the level of service afforded to its infrastructure. SWCC’s supply chain application will enable the organization to accurately and efficiently report on stock parts through the implementation of intelligent systems while also reducing the amount of stock parts.
Last but not least, there’s the upgrade of the maintenance systems. As of today, SWCC uses diverse, separate maintenance systems across its network of stations and power plants. Al Khedher’s aim is roll out a single solution integrated with other systems to provide a single view of information as SWCC upgrades from a material management system to a modern enterprise asset management. The new system includes machine utilization, maintenance, and human resources, and report production.
“Our goal is to enable SWCC to restructure for best business practices and set an example for other government bodies to follow. Through deploying an integrated, single point of truth for management, we’ll be leading the way in terms of technology utilization. We will continue to work towards improving our efficiency and service offerings as well as automating and integrating our systems to deliver accurate and fast information to the executive management at SWCC,” maintains Al Khedher.
As head of the project management office, Al Khedher has to co-ordinate between all the different parties involved in the electronic transformation programme. By working to a standard methodology for project management – that of the internationally-renowned Project Management Institute – Al Khedher and SWCC have avoided duplicating work between themselves, their consultants, and implementers. However, as Al Khedher will readily admit to, the IT transformation is simple. It’s the people which most concerns him.
“Without acceptance from our employees, any changes we make in terms of business processes and technology will have gone for nothing. We’re focusing on individuals to achieve a number of set goals, to help the employee accept the change and minimize any resentment. What we’re hoping for is that our change management initiatives will reduce the impact of change on daily operations and enable SWCC to manage change effectively by minimizing the time required for employees to do their jobs during any period of change.”
If all goes to plan, then SWCC will join the ranks of Aramco and SABIC as being labeled technology leaders in both the public and private spaces. Within two years time and following privatization, the organization will become the largest private desalination company in the world.
“We have been operating for over 35 years in the water sector, and the Saline Water Conversion Corporation is a major player in the desalination industry producing around 18 percent of the world’s desalination production. We are at a transition stage in the organization’s history, and our transformation programme is one of the largest such initiatives in the Kingdom of Saudi Arabia. Following the guidance of the custodian of the Two Holy Mosques, King Abdullah Bin Abdul Aziz Al Saud, SWCC is looking to adopt technology as a pillar of our operations. The implementation of such state of the art technology will minimize risks, ensure critical success factors and allow the organization to realize its true value upon privatization,” explained Governor Alshareef.
“Population growth allied with Saudi Arabia’s economic expansion mean that desalinated water is gradually becoming the only source of potable water in highly populated areas throughout the Kingdom. By attracting additional investment through privatization SWCC will be able to ensure that the water needs of the country today and tomorrow are met by expanding our water production infrastructures and transmission systems. Leveraging off technology will allow our organization to become more efficient while attracting the confidence of Saudi investors,” added the Governor.
So there you have it. Thanks to technology, the desert Kingdom of Saudi Arabia will have an abundance of fresh water for some time to come as well as leading the field in the desalination industry. And a return on investment that you can measure in stocks and shares. Now, doesn’t that appeal to CEOs across the region?
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