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ERP implementation in Omantel: a case study

Article  in  Industrial Management & Data Systems · February 2010

DOI: 10.1108/02635571011008416 · Source: DBLP

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IMDS
110,1
78
Received 12 July 2009
Revised 17 August 2009
Accepted 22 August 2009
Industrial Management & Data
Systems
Vol. 110 No. 1, 2010
pp. 78-92
q Emerald Group Publishing Limited
0263-5577
DOI 10.1108/02635571011008416
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
ERP implementation in Omantel:
a case study
Stuart Maguire
The Management School, University of Sheffield, Sheffield, UK
Udechukwu Ojiako
School of Management, University of Southampton, Southampton, UK, and
Al Said
The Management School, University of Sheffield, Sheffield, UK
Abstract
Purpose – Enterprise resource planning (ERP) systems if successfully implemented bring about
competitive advantages. On the other hand, project failure could, in an extreme case, cause an
organisation to go out of business. Mapped against existing literature on ERP critical success factors,
this paper examines environmental factors that impacted on the adoption of ERP by The Oman
Telecommunication Company (Omantel).
Design/methodology/approach – A case study methodology is used to study perceptions of the
ERP system implementation project in Omantel.
Findings – This paper highlights the particular problems of large organisations that operate
disparate legacy systems.
Research limitations/implications – A single case study is conducted. This provides
opportunities for further research in a number of varied settings.
Originality/value – It is very important that experiences of ERP projects are shared across
countries and sectors. This is because many ERP implementations are rolled out by multi-national
corporations in several countries, often simultaneously. This is one of the few ERP studies that have
been conducted by an internal member of staff. In these situations, it is not just a case of access, but
that the respondents feel able to give practical answers.
Keywords Manufacturing resource planning, Project management, Competitive advantage
Paper type Case study
1. Introduction
There are a wide variety of tools and systems that have been developed to enable
organisations to become more competitive, one of these tools is enterprise resource
planning (ERP).
ERP systems are all about ensuring that operational systems being used by an
organisation are fully integrated. The purpose of using ERP is to improve and simplify the
internal business processes, which typically requires re-engineering of current business
processes (Huang et al., 2004). The idea is to combine various systems into a single
database (Payne, 2000). This approach will enable the organisation to have a single view of
its business by ensuring that systems that support different functionalities within the
organisation are combined (Kumar and van Hillegersberg, 2000).
There are quite a few advantages of adopting ERP as part of as an organisational
strategy. For one, ERP systems support an organisation’s desire for systems integration
which means that organisations will not have to manage separate systems independently.
In this case, the organisation optimises its processes which then improves the entire ERP
supply chain process, and integrates functionalities leading to increased transparency implementation
across the organisation. In most cases to continue to support this optimisation, the
organisation also develops sets of expert common capabilities. The result is that the in Omantel
organisation is most likely to save on operational costs due to rationalisation and systems
integration. It is expected that such savings on operational costs will be transferred to
lower costs for the customer. At the same time, the integration of systems should lead to 79
the provision of a more memorable experience for the customer as service provision
becomes more seamless. ERP systems can also empower employees by providing them
with real-time data (Davenport, 1998). It is also connected with greater job flexibility by
providing a platform that enables the expansion of individual awareness, creativity, and
innovation. Overall, existing statistics suggest that 63 per cent of large ERP customers are
of the opinion that they do realise some major business benefits from their ERP
implementations (Gould, 2004). ERP systems are however key strategic resources for the
majority of organisations. Their importance is demonstrated by statistics which show that
they usually comprise the largest segment of an organisation’s applications budget (Aloini
et al., 2007).

2. ERP implementation
Although this is the case, it is imperative to highlight that many ERP implementations
have been considered as significant failures (Markus et al., 2000). Examples include
Avis Europe Ltd’s abandonment of its ERP implementation project in 2004 (at a cost of
$54.5 million) and Ford Motors’ ERP purchasing system which was also abandoned in
2004, after the company had spent close to $200 million. Perhaps, the most famous case
of ERP system implementation failure relates to the collapse of the US$5 billion
(GBP£2.5 billion) pharmaceutical giant FoxMeyer Drugs partially driven by a failed
ERP implementation in 1995.
Work examining ERP implementation in the Middle East is not particularly
extensive, although some work has been conducted. For example, Kholeif et al. (2007)
discussed ERP customisation failures in the Middle East. On the other hand, Aladwani
(2001) examined user resistance to ERP implementation from a Kuwaiti perspective
while Ziaee et al. (2006), studying ERP software selection, proposed a two-phase
procedure of selecting ERP vendors in small manufacturing enterprises in Iran.
A review of available research shows that there is a general lack of literature on ERP
systems implementation in Oman.
With developments which have led to the new ERP II, it is now possible for service
providers and their customers to share information by integrating their systems into one
single database (Moller, 2005), leading to more organisations recognisng the huge benefits
from successful implementation of ERP systems. Starting in the late 1990s there has been
growing use of ERPs in many of the larger businesses and organisations. The extensive
use of ERP reflects the need of businesses and organisations to replace older software
systems and achieve integration of different organisational functions and processes.

3. Considerations
Information technology and information systems (IT/IS) serve as a major support
platform for many organisations to build the competitive success of their enterprise. They
serve numerous roles including being a key component of knowledge management and
IMDS customer intelligence, as well as enablers and agents of business change and
110,1 transformation making them a core aspect for the twenty-first century organisation.
The provision of IT/IS in organisations is always demanding and the case of ERP
implementation in The Oman Telecommunication Company (Omantel) is no different
apart from specific characteristics such as the emphasis on active localisation
and Arabisation of digital content (ESCWA, 2003). In addition, the company is one
80 of the few telecommunications still operating in a monopoly market. Previous
studies on implementation strategies adopted in ERP implementation specific to
telecommunications have been conducted, for example, by Berchet and Habchi (2005).
According to Beheshti (2006), the implementation stage is usually a very critical
step during the introduction of ERP systems. As ERP implementation is usually
complex (as in the case of most corporate level IT/IS projects), it is not uncommon that
many organisations do allocate significant resources to this phase of the project.
Unfortunately, current ERP implementation statistics do not look promising with an
estimated 70 per cent of all ERP implementations likely to fail (Sivunen, 2005).
Overall, it is important for organisations implementing ERP systems to recognise
that the introduction of ERP will most likely result in key organisational changes
which, if not managed carefully, can actually result in conflict within the organisation
especially in relation to the question of how to integrate the ERP system, the legacy
system, and the business processes of the organisation.

4. The case study

The success or failure of a research exercise has been demonstrated to be directly related
to the research methodology adopted (Easterby-Smith et al., 1993; Yin, 1989). This
particular study focused on how an organisation behaved during a major exercise of
systems interactions. For this reason, it became imperative that this study was
conducted using a research approach that emphasised both subjective and contextual
interpretation of events (van Strien, 1997). For this reason, we adopted a single case
study approach as the primary mode of research. It is imperative to highlight that the
use of single source-case studies is well represented in research (Eisenhardt, 1989).
In this particular case, based on earlier work by Yin (1989), the use of Omantel as a single
case study is valid as it can be argued that within the Omani context, due to the size of its
operations, it is representative of the telecommunication industry. Our main reason for
choosing this approach was because our investigation was primarily directed at
studying current phenomena in a real world context (Yin, 1989). This approach has been
used even though it is not generally popular in project management. In particular, we
mention the work of Jaafari (2003), who suggests that creative-reflective models are
most appropriate when studying complex projects. Of particular relevance is the fact
that this approach is heavily reliant on the competencies of project management
professionals.
Omantel is the sole licensed operator in the Sultanate of Oman for fixed line
telephony. The company presently operates as a monopoly in the Public Switched
Telephone Network and Internet Service Provider markets. The company has a mobile
subsidiary (Omanmobile) which offers mobile services and operates as a duopoly with
Nawras which is owned by Qatar Telecommunication Company. The government of
Oman is the major shareholder of the parent company Omantel. Omantel has been
providing communication services for nearly four decades and currently, the number
of people who are employed in Omantel and its subsidiary Oman Mobile is about 2,600. ERP
The group achieved a profit of 80 Omani Rial (£108 million) by the end of 2006 implementation
(Omantel Financial Statements, 2006).
in Omantel
5. Strategic drivers
Omantel commissioned the ERP project for two major reasons. In the first place, the
company sought to ensure that it was strategically placed and ready for the anticipated 81
liberalisation of the Omani telecommunications industry. To achieve this, it has sought
to upgrade its capabilities in terms of network technologies that will support best
practice controllable work flows (Al Wohaibi, 2006). The second driver was a need by
the organisation to position itself to be able to meet national development requirements
as identified by the United Nations (ESCWA, 2003).
In February 2005, an agreement between Omantel and Oracle, one of the leading
global ERP providers (Huang et al., 2004) with about 14.5 per cent of market share
(Jakovljevic, 2001) was signed, with the project being initiated immediately. The project
was planned to be completed in exactly 12 months after initiation. However, the
implementation process overran by about six months, with completion of all ERP
package transfers from the test environment completed in June 2006. The overrun was
primarily driven by a limited number of IT/IS staff within Omantel possessing
necessary Oracle integration expertise. This caused major communication problems
between Omantel staff and the technical team from Oracle (for example in explaining
systems architecture of existing legacy systems). There was also limited in-house
expertise within Omantel on Oracle products. This meant that Oracle’s initial contract
to focus solely on implementation was soon expanded into a consultancy role.

6. Findings from the case study

The findings obtained from the case study are discussed and analysed in this section,
and combined into themes. These findings (not determined directly from this case
study) are mapped against earlier discussed critical success factors that impact on ERP
systems implementations (Finney and Corbett, 2007; Nah et al., 2003):
.
stakeholder consultation;
. vendor selection;
.
project management;
.
stakeholder management and communication;
.
training;
.
risk management; and
.
system re-engineering and software customisation.

6.1 Stakeholder consultation

Omantel understood that each of its customers were not only a stakeholder, but also an
important collaborators in the ERP implementation. For this reason, the company was
committed to full consultation and transparency with not only its customers, but also
with its competitors (predominantly Nawras), and the regulator (Telecommunications
Regulatory Authority (TRA) of Oman). Omantel’s principle ERP consultation
philosophy was not necessarily to seek unconditional consent from either Nawras or
IMDS the TRA, but rather based on the recognition that such consultation will ease
110,1 competitive concerns (especially in relation to Nawras). Success of the project was
based on bilateral discussions that would hopefully lead to consent. Consultation
covered four specific areas of the implementation (Table I). Each consultation process
was managed independently as part of a specific working group.
Lessons. Omantel’s decision to implement a consultation programme was in
82 recognition that it shared where possible commercially sensitive information on the scope
of the ERP implementation. By sharing such information, Omantel anticipated that
stakeholder needs were to be fully understood and reflected in the implementation plan.
Thorugh this consultation process, the company was able to address the various concerns
raised by stakeholders which included creating a greater focus on collaborative testing.
In effect, the consultation programme represented an approach for Omantel to create
a more detailed understanding with its suppliers, customers, its mobile subsidiary
(Omanmobile), competitors (predominantly Nawras), and the regulator (TRA of Oman)
of the project. The consultation was limited to the operational and technical impacts
arising from the sequencing and timing associated with Omantel’s implementation plan
(thus falling within the remit of the Implementation and Migration Working Group).
Three major issues emerged from the consultation process, clarity on:
(1) operational impact of the timing of the implementation, especially in relation to
specific customers;
(2) a specific request for implementation freeze periods from customers due to a
specific event (e.g. billing runs); and
(3) whether the implementation plan will negatively impact or impede Omantel’s
ability to meet regulatory and contractual obligations, and possible cost
implications if the implementation fails.

Omantel’s objectives were to ensure that these three issues were resolved prior to
completion of the issuing of test cases and schedules. This was regarded as feasible as
it was not expected that the implementation plan would remain unchanged and fixed
throughout the duration of the project. Omantel sought to reach solutions acceptable to
all parties through its change control process.

6.2 Vendor selection

The decision to select Oracle as the ERP vendor was based on recommendations by
Omantel’s in-house software evaluation team. Selection of Oracle was conducted through

Board Details

External industry focus Focus on external operations of Omantel and how the ERP
implementation will impact on corporate, government and
other high-value customers
Product management working group Focus on product management and expected new product
introduction resultant from the ERP implementation
Conformance testing Focus workshops on test execution plans, especially on
Table I. operational readiness
Omantel consultation Implementation and migration How Omantel will approach implementation (and subsequent
activity migration to new platforms)?
an evaluation workshop organised by the vendor evaluation team during which all ERP
interested stakeholders (including representatives from its mobile subsidiary implementation
(Omanmobile) and other lines-of-businesses such as its Al-Ufuq Prepaid Card Unit,
were invited to review various bids and proposals from potential vendors. One major in Omantel
parameter which was considered was how such an initiative could impact on existing
integration with legacy systems (especially some stand-alone systems used for billing
mobile customers). From interviews with the Omantel ERP Implementation Manager, it 83
emerged that Omantel’s decision to award the project to Oracle was based on Omantel’s
perception of Oracle’s ability to demonstrate an understanding of its business.
Lessons. Previous research by Ponis et al. (2007) and Swan et al. (1999) lists vendor
selection as one of the critical management issues in ERP implementation. Oracle was
able, according to the Omantel ERP Implementation Manager, to demonstrate that
its solution was the “most practical, suited application, able to address Omantel’s
business objectives”. In addition, “Oracle was able to demonstrate that it had the
infrastructure, experience and reputation to support Omantel’s vision” (Al Wohaibi,
2006). These are two key parameters discussed by Ponis et al. (2007) and Ziaee et al.
(2006), which also influence ERP vendor selection. Overall, again on this point, we note
that the role of reputation (Keil and Tiwana, 2006) and trust (Benders et al., 2006) has
been discussed within the context of ERP vendor selection criteria.

6.3 Project management

The major concern about the overall project management approach related to
knowledge sharing and transfer. The Omantel staff expressed concerns that the Oracle
consultants seemed to have no time, or were unwilling, to share knowledge with the
Omantel technical project staff. This perception was especially prevalent during
the first stages of project implementation.
Overall, the scope of work of the project involved:
.
validation of scope and quality of service;
.
definition of service architecture and interfaces;
.
development of a test mechanism;
.
development of procedures to ensure that no loss of service would occur during
systems implementation; and
.
establishment of success criteria.

A phased implementation approach was adopted, with key milestones (Table II) and
distinct objectives being identified for each project phase (Table III). Monitoring and
control of the overall project plan was through a formal change control process which
sought to:
.
Track and manage requests for changes to sequencing and timing of any aspect
of the plan (through stakeholder consultation).
.
Modify the plan over the course of project duration (initially 12 months). The
plan was updated and published monthly under change control and made
available to all stakeholders.

If possible, reduce this very large gap (obviously check that it does not as a result split
tables up too much).
IMDS
Milestone Definition
110,1
Definition of project dashboard Success criteria are defined to facilitate
implementation performance to be assessed
Baseline procedural establishment Focuses on the establishment of baseline
processes for various aspects of the project
84 including communications and back-out. These
procedures will also need to be tested successfully
Customer premises equipment compatibility Assist stakeholders in designing test plans for
customer premises equipment in order to establish
compatibility with new implemented platforms
Stakeholder awareness Commencement of programme of general
awareness of migration to all stakeholders
Migration cases and schedule issued Undertaking to verify that (where necessary) all
migration cases (especially in relation to legacy
platforms) have been issued, reviewed and agreed
by all stakeholders
Test cases and schedule issued Undertaking to verify that all test cases have been
issued, reviewed and agreed by all stakeholders
Network and product compatibility testing Undertaking to verify completion of compatibility
complete testing of all products on the network
Post-implementation review All lessons from completed phases of the project
successfully collated
Table II. All customers migrated All customers migrated
Omantel ERP milestones Live Systems go live

Lessons. The implementation was managed by utilising a strong matrix project structure.
Omantel assigned project management responsibility to its in-house project management
office, leaving Omantel team leaders in each domain with full responsibility while overall
management responsibility resided with the Omantel project manager. Support was
provided by Oracle which provided an independent integration team (in order to facilitate
development, support and knowledge transfer). However, in reality this approach did not
work as what appeared to be a parallel implementation team emerged. To resolve the
developing conflict, the project team was reorganised into one team. Overall,
responsibility was assigned to an Omantel project manager, while technical leadership
and consultancy was provided by Oracle. Other subtle efforts were made to support
integration. For example, to break down the possibility of poor project level focus
(Kuprenas, 2003), improve communication (Zomorrodian, 1986) and facilitate a greater
sense of a shared project agenda (Lamproulis, 2007), the project team was moved from
individual offices into a single open plan office.

6.4 Stakeholder management and communication

The implementation of new IT/IS systems is usually accompanied by changes in
operations and ways of working. If not adequately addressed, new systems
introduction can be met by resistance from stakeholders (Brown et al., 2002). Often this
resistance can manifest in different forms such as system non-use (Maguire and Ojiako,
2007), or withdrawal (Allen and Wilson, 2005). One of the approaches adopted by
Omantel to overcome stakeholder resistance was to choose a robust approach to
stakeholder anaylsis. Table IV provides details on the stakeholders, dividing them into
key groups. Details on a desired response in each case are also provided.
 ERP
Work stream Details
implementation
Customer The customer experience work stream focused on identification, contact and in Omantel
experience management of each line of business impacted by user acceptance testing. In general
this work stream was responsible for putting together a test strategy plan, developing
test scenarios and managing the interface with other lines of business impacted by the
implementation 85
Technology The technology work stream was responsible for ensuring that required technology
was in place to support ERP implementation. Key activities in this work stream include
setting up of required user acceptance test environments, development of required
design and test documents, and resourcing of testing and technical support to the
project team and customers, when required
Systems It was expected that in most cases, the implementation will impact on a majority of
development existing customer interfacing systems. A full compatibility audit of all systems was
conducted prior to systems development
Networks The network and systems readiness work stream was responsible for ensuring that all
and existing (and legacy) networks and systems were migrated (as required). This team was
systems also responsible for ensuring that new designs and necessary changes required for the
successful implementation were successfully completed. The team was specifically
responsible for activities such as production of solution designs, end to end testing of
solution design, and the implementation of the network and systems changes
Customer Omantel’s priority was to ensure that the transfer of customers onto the new platform
migration was conducted with minimal impact on customers. One crucial aspect of this migration
and was to utilise robust and detailed advance notifications (covering service disruptions
assurance and data freezes). At the same time, it is crucial to recognise that customer migration
plans also included a back-out plan which articulated a clear process (if required), Table III.
whereby customers could be migrated back to legacy systems (without substantial loss Omantel ERP project
of service) work streams

The stakeholder management and communication approach facilitated the development

of a framework for stakeholder segmentation that identified not only important
stakeholder groups, but also identified desired responses from them based around:
.
What Omantel wants stakeholders to know about the implementation?
.
How Omantel want stakeholders to feel about the implementation?
.
What Omantel want the stakeholders to do about the implementation?

Lessons. Stakeholder management and communications is a key success factor for ERP
projects and its role has been discussed by various researchers such as Al-Mashari and
Zairi (2000). For example, it is known that communication influences the acceptance of
technology (Amoako-Gyampah and Salam, 2004), and enhances the two-way flow of
information between the vendor and customers, thus enabling feedback. Omantel
sought to communicate and engage with all stakeholders and to provide advice on the
likely impact of the proposed implementation. By engaging in this process, Omantel
sought to reassure stakeholders on service continuity. Omante’s consultation
philosophy was based on an acceptance that the level of engagement was not to be
based on a “one size fits all” approach, but that instead, stakeholder management was
to be tailored to the individual needs of each stakeholder.
Even though processes were put in place to support effective stakeholder
communication (for example, a special implementation webpage was created and
IMDS
Group Categorisation Desired response
110,1
Major customers Know The project objectives, detailed information on
emerging solutions and capabilities
Feel Enthusiastic and confident that Omantel is their best
partner and will continue to deliver desired value
86 Do Identify needs and work with Omantel to exploit the
implemented platform and purchase solutions
Low-value customers Know That they are not affected by the ERP
implementation
Feel That they are reassured about the future and the
service they receive and expect to receive in the
future
Do Continue to remain with Omantel
Employees Know The company’s vision, overall strategy, constituent
projects and potential impacts on company’s
competitive position if failure occurs. At base level,
understand broad impacts of the project
Feel Confident, trusted, valued and part of the company’s
vision and future
Do Possess a shared vision and outlook. Are willing to
create lasting customer relationships, while at the
same time seek opportunities to enhance the
customers’ experience
Investors Know The broad outline plan. Understand value associated
with current project
Feel Confident that the new implementation will enhance
Omantel’s competitiveness
Do Continue to maintain (and in some cases increase)
their investment in Omantel, while at the same time
encouraging others to do so
Regulatory (TRA) Know The outline plan and its compliance with regulatory
and contractual agreements and requirements
Feel Confident that the plans adhere to regulatory
requirements
Do n/a
Table IV. Oracle and other suppliers Know The detailed plan and how they fit in
Omantel ERP Feel Involved in the implementation
management analysis Do Proactively get involved in all aspects of the project

heavily promoted), there were general concerns with stakeholder information

especially in relation to how quickly responses were provided to stakeholder
information requests (especially those requests put forward formally). To address this
problem (and improve information flow), an information database was developed and
delivered.
Perhaps, most worrying is that only a handful of employees (mainly senior managers)
was aware of the project before its inception. Most surprising is that even after
implementation, a small number (admittedly only a handful) was not even aware that
any new systems had been deployed! Studies on systems introduction (Maguire and
Ojiako, 2007; Ojiako and Greenwood, 2007) have highlighted that poor employee
engagement will often lead to a lack of understanding of the system.
6.5 Training ERP
The general perception of the employees was that training was not adequate. implementation
It appeared that the majority of staff involved in the project were first trained on the
new system well after the “go-live” date. This obviously meant that at the time of in Omantel
commissioning, close to one in three employees was not trained on the use of the
system. Perhaps, more worrying is that overall, about 15 per cent of staff involved in
the project did not receive any training at all, while those who did, such as on database 87
languages such as structured query language, only ended up using their newly
acquired skills nearly seven months after training, meaning that knowledge gained
from the original training was forgotten due to lack of practice. This meant that
refresher courses had to be arranged at additional cost to the company.
Lessons. Even though recognised as a crucial means of addressing possible
resistance to organisational change (Maguire and Redman, 2007), and of crucial
importance in ERP implementation (Yu, 2006), the study appears to indicate that
inadequate staff training was a major concern within the project team. It is important
to highlight that an issue with the employee’s perception of training was fully
acknowledged by the project manager. Various reasons have been attributed to this
situation. For example, he pointed out that there was a general problem working with a
limited number of expert users and trainers. In addition, the talent pool available to
Omantel was generally restricted.

6.6 Risk management

Despite numerous consultations, the potential impact of the implementation on
services provided by some stakeholders remained unclear primarily because Omantel
did not have the appropriate knowledge to carry out these tests, leading to an
over-reliance on Oracle to resolve technical queries. At the same time, precise details of
the improved “experience” new systems that users were to be exposed to at the
completion of the project were not clearly articulated. In certain instances, Omantel
was unable to provide exact details on time lags associated with anticipated
“breaks-in-service” which were expected to impact on customers’ systems. This had an
adverse effect on the detailed dialogue conducted with some customers.
In terms of risk associated with the test programme, it was felt that the time
allocated for customer managed inter-operability and equipment testing (one month)
was considerably limited as no time appeared to have been allowed for any
contingencies, late deliveries or significant failures in testing. Overall, the information
provided to support testing was also initially regarded as extremely high level.
Lessons. Successful ERP implementation is dependent on numerous factors and
parameters. One of these parameters is poor information management (Biehl, 2007).

6.7 System testing and software customisation

Failure to test in a robust way can often lead to significant problems when a system
goes live (Maguire, 2004; Ojiako and Greenwood, 2007). Omantel had quite a few
products that had to be reconfigured as part of the introduction of the new ERP
systems. Under the joint system testing and software customisation process run by
Omantel and Oracle, most products were reviewed by specialists to determine what
impact the newly introduced system would have on Omantel’s products and services.
In the majority of cases, confirmation was received that there was unlikely to be any
IMDS impact (subject to more aggressive testing). It was, however, noted that due to the short
110,1 contingency period between testing and “go live” date, if the tests failed, product and
service customisation would need to be managed expertly in order to ensure that the
limited resources of the organisation were used effectively and also to ensure that
disruption was minimised.
Details of test scenarios were produced, and scripts for the testing of products and
88 services that had to be completed prior to migration were also prepared. However,
citing the general lack of technical knowledge within the organisations, a review of
these test scenarios appeared to be insufficient, as each generally lacked the necessary
depth to give assurance of its robustness. The result (which was one of the major
contributors to the project being delivered late) was that product and service offerings
required changes either because the requirement for change had been identified before
testing began and had not been sufficiently addressed, or where changes had to take
place following a problem identified during testing.
Lessons. As the literature suggests that ERP clients should avoid system
modification (Markus et al., 2000), an agreement was reached between Omantel and
Oracle that no part of the ERP system would be customised to meet the system
compatibility requirements for any of Omantel’s products and services. Any system
customisation implemented by Omantel without full sign-off by Oracle would
invalidate the system warranty and support.

7. Discussions
The introduction of the new ERP system is the most significant change within Omantel
since the drive to liberalise the Omani telecommunications industry commenced. These
new systems have the potential to deliver significant benefits to the organisation. They
are also expected to fundamentally transform the way Omantel delivers services to all
of its customers. Ultimately, it is the first major step the organisation has taken in
readiness for the full liberalisation of the telecommunications industry in Oman.
Unlike the more chaotic strategic alignment approach adopted by NITEL (Ojiako
and Maguire, 2006) which led to poor customer perception (Onwumechili and
Okereke-Arungwa, 2003), the findings indicate that the impact of the ERP system on
Omantel is considered in a more positive light. For example, a majority of the
company’s employees were of the opinion that the newly introduced systems had made
a considerable difference to their jobs.
It is however important to highlight that overall evaluation of the performance of
the system still raises concern. We show that just over half of employees sampled felt
that the new system was easy to use. This point reinforces the need to address
employee training as a matter of urgency. At the same time, it reiterates that the effects
of earlier failure of management to engage with employees during system design is still
lingering.

8. Conclusions
ERP is no longer a western European or North American issue. By its very nature its
implementation is complex and far-reaching. There are plenty of opportunities for
things to go wrong. Its multinational nature means that further research should be
undertaken in a range of countries to identify the political, cultural, and behavioural
repercussions of implementation. The scope and complexity of ERP means that any
opportunity to gain insights from this system development process should be grasped ERP
with both hands. We do not have all the answers with regard to this process and so any implementation
way the process can be facilitated should be made available to a wider audience.
This research has examined the key environmental factors that have impacted on the in Omantel
adoption of ERP by a large organisation in Oman. It highlighted the implementation of
strategic systems that would transform the capabilities of the company at a time of
major change within the sector. There has been a dearth of research with regard to ERP 89
implementation with Oman. There has been some research in the Middle East in the area
of ERP but the fact that an internal member of staff undertook the interviews meant that
fur [. . .] study? Their insight into internal strategies and documentation was made
available and this added to the richness of the research. This research has also shown
how important it is to view ERP implementation as a strategic operation for the
organisation at every stage. Adopting a stakeholder involvement philosophy at an early
stage of development paid dividends for Omantel. This openness seems to have
facilitated an effective system development process that, in turn, led to a successful
implementation.
This particular investigation has highlighted the benefits that can accrue from a
commitment to full consultation and transparency throughout the various stages of
ERP implementation. During any large system development there is a temptation for
the various stakeholder groups to be secretive about the scope of the project and their
roles within it. However, this can often have serious consequences in relation to areas
such as system testing. This crucial area can only be wholly addressed if rigorous
testing takes place – and this will only occur if there is a united effort to provide the
requisite test data for the various processes and elements of the system.
Many organisations underestimate the organisational impact of ERP
implementations. Even the timing of the implementation can have adverse effects on
various parts of the organisation or strategic partners, i.e. customers and clients.
Viewing the consultation process as important also allowed Omantel to collect
strategic intelligence that would help with the risk management that should always
underpin any ERP implementation. The critical aspect of vendor selection was based
on Oracle’s commitment to make great efforts to understand Omantel’s core business.
However, probably more important in the longer term was Oracle’s ability to
demonstrate that it had the infrastructure, experience and reputation to align with
Omantel’s vision and business objectives.
What Omantel has gone some way to achieving is to view an organisational ERP
implementation as external and strategic rather than internal and operational. This very
important distinction increased the chances of the ERP implementation being a success.
This does not mean that there were no glitches in the overall process, i.e. some Omantel
staff expressed concerns that Oracle’s consultants were unwilling to share information
and knowledge with them. This is of particular concern as knowledge transfer should be
a key part of any ERP implementation, especially where it is normally taken as a given
that the vendor’s consultants will disappear soon after implementation.
It would be especially constructive if the stakeholder management and
communication approach could be tested in other countries and sectors, and with
different sizes of organisations.
Even though single case study research, especially if undertaken by internal
managers, can provide researchers with a significant amount of rich data, it is often
IMDS very difficult to determine firm conclusions. This is why further research in a number
110,1 of varied settings and environments is needed to consolidate any of the conclusions
revealed by this particular research.

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Corresponding author
Udechukwu Ojiako can be contacted at: udechukwu.ojiako@soton.ac.uk

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