Madinah Monawarah Development Authority Ensures Compliance with Government Regulations by Optimizing Public Procurement and Service Contract Management
 
 

Madinah Monawarah Development Authority Ensures Compliance with Government Regulations by Optimizing Public Procurement and Service Contract Management

Al Madinah Al-Munawwarah—commonly written as Madinah Monawarah or Medina—is the second-holiest city in Islam, after Makkah (Mecca), and it is the burial place of the Islamic Prophet Muhammad. The city, known as the capital of Islam, houses the Holy Prophet’s Mosque and is one of the most visited places worldwide, receiving millions of pilgrims and tourists annually. Madinah Monawarah Development Authority (MMDA) is a Saudi Arabian governmental organization focused on developing the Madinah Central Area, which has nearly 1.8 million residents. The organization is responsible for implementing the Madinah region’s development plan, which includes expansion of the Holy Prophet’s Mosque.

 
 

 
 

Challenges

A word from Madinah Monawarah Development Authority

  • “Madinah Monawarah Development Authority is a Saudi Arabian governmental organization that was established in 2009 to design and apply a comprehensive development plan for Madinah. The plan focuses on all development aspects of the Madinah Central Area, including the expansion of the Holy Prophet's Mosque, and it ensures the integrity of all projects run in the city. With Oracle E-Business Suite, we optimized service contract management, enabled compliance with complex government regulations, and introduced a completely paperless working environment. The solution also delivers seamless integration and cost-effective scalability, which are important, as we expect to double our workforce and quadruple budgets within two years.” – Eng. Mohamed Bin Madani Al-Ali, Secretary General, Madinah Development Authority

  • Establish a paperless working environment with automated business processes—from public procurement, to service contract monitoring—to save time, cut costs, and reduce human errors
  • Optimize decision-making with centralized, real-time reporting to provide a clear picture of contracts and vendors, budget consumption, workforce, and fixed assets
  • Ease compliance with multiple government regulations regarding human resources management, public procurement, service contract management, and periodic financial statements
  • Optimize public sector workforce productivity with a state-of-the-art enterprise resource planning (ERP) system

Solutions

  • Deployed Oracle E-Business Suite Release 12.1.3 to optimize service contract management—public tenders, supplier selection, contract monitoring, and corresponding financial transactions—which account for 80% of the organization’s business activities
  • Reduced implementation time by approximately 50%, compared to an ERP system implemented from scratch, thanks to Oracle E-Business Suite’s preconfigured public-sector model
  • Established standardized rules for public tenders that are mapped in Oracle E-Business Suite to ensure that contracts are executed consistently, transparently, and without delay—while minimizing the risk that supplier selection results may be distorted by human error
  • Centralized all information relating to tenders—such as text documents, images, building plans, and financial calculations—in Oracle E-Business Suite, which dramatically shortened vendor selection by enabling staff to find information much faster
  • Enabled 25 Oracle E-Business Suite users to ensure strict compliance with government rules regarding human resources management, periodic financial statements, and transparent public tender management with standardized, automated business processes that are transparent and easily auditable
  • Introduced system alerts to notify managers of pending approvals and unscheduled events, such as impending budget overages—improving operational efficiency and mitigating the risk of cost overruns and missed deadlines
  • Optimized decision-making with automated, real-time reporting to the organization’s board of directors—including reports on tender status, pending procurements, payment approvals, employee overtime, and budget consumption
  • Used Oracle Self-Service Human Resources to simplify and streamline requests for and approvals of overtime, leaves, vacations, as well as banking data for 120 employees—improving productivity and reducing administrative costs
  • Enabled MMDA to better prepare and monitor the Hajj—one of the world’s largest annual pilgrimages—when the region receives nearly 3 million visitors within a few days
  • Ensured cost-effective, solution scalability to support a rapidly growing organization that expects to double its workforce and quadruple budgets within two years

Why Oracle

“Modern government organizations need to consolidate, automate, and integrate processes—including the ability to control all activities with multiple alerts—to optimize public resource use,” said Hatem Al-Rehili, IT manager, Madinah Monawarah Development Authority. “It was seeing the success that other public sector organizations in Saudi Arabia have had with Oracle E-Business Suite that triggered our attention. And, Oracle’s strong presence in the country—with numerous certified partners, who can assist with the implementation—gives us the security that Oracle will be a strategic partner for years to come.”

Partner

“We selected Oracle Platinum Partner Advanced Operations Technology, based on the group’s expertise in Oracle E-Business Suite implementations and its accomplishments in the Saudi Arabian government sector,” said Ahmad A. Al-Raddadi, IT services manager, Madinah Monawarah Development Authority. “Advanced Operations Technology deployed Oracle E-Business Suite Release 12.1.3 in close cooperation with and under the continuous direction of the information technology team of Madinah Development Authority. We benefited from substantial knowledge transfer during the process.

“We would not have had such a successful implementation without the cooperation, as a team, under the noble direction of His Highness the Governor of Madinah, the Head of the Authority, as well as the follow-up of His Eminence the Secretary General of Madinah Development Authority,” Al-Raddadi said.