Royal Group Gains 40% in Productivity with Single Instance of Enterprise Resource Planning for More Than 45 Companies and Subsidiaries
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Royal Group Gains 40% in Productivity with Single Instance of Enterprise Resource Planning for More Than 45 Companies and Subsidiaries

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Royal Group is a conglomerate of 60 large and midsize companies based in the United Arab Emirates. It has business activities in all major industries. Launched in the late 1990s, the group employs more than 4,000 people from a wide variety of countries and cultures.

Today, Royal Group is one of the largest business and investment holdings in the Gulf region. It has a significant and growing international presence, with a broad spectrum of investments and partners throughout the Middle East, Asia, the United States, and South America.

In a matter of only two-and-a-half years, the Royal Group deployed Oracle E-Business Suite Release 12 in 48 companies and subsidiaries, facilitating system administration and maintenance substantially and improving overall productivity between 30% and 50%.

 
 

 
 

Challenges

A word from Royal Group

  • “We selected Oracle E-Business Suite Release 12 because it is the only solution in the market that suits both our organizational structure and our business needs perfectly, across all industries. With efficiency gains between 30% and 50% in our key performance indicators, the decision proved to be correct.” – Abdulrahman Ishtaiwi, Head of Information Technology, Royal Group

  • Deploy a comprehensive enterprise resource planning (ERP) platform across Royal Group’s companies to overcome the enormous efforts and costs linked to using different ERP and legacy systems in dozens of companies
  • Implement an ERP system capable of serving Royal Group in diverse lines of business—such as high technology, hospitality, investment, manufacturing, media, real estate, and trading—and establish full control over the group’s budgets, purchases, inventory, and financial situation
  • Eliminate duplicate data across companies and establish a single data source at group level for enterprisewide visibility
  • Provide Royal Group’s management with detailed and accurate insight into the group’s financial and operational position at any given time to enable agile and informed decisions

Solutions

Oracle Product and Services

  • Deployed Oracle E-Business Suite Release 12 in 48 companies and subsidiaries of the Royal Group in only two-and-a-half years, facilitating system administration and maintenance substantially and improving overall productivity by 40%
  • Standardized on Oracle E-Business Suite as the group’s ERP platform, centralized implementation, and installed robust backup systems to ensure high availability, thus laying the foundation for strong productivity gains
  • Established full control over the group’s budgets, purchases, inventory, and financial situation
  • Deployed Oracle Database as a two node Real Application Clusters on a SPARC Enterprise M5000 server on Oracle Solaris 10 and Oracle EBS on two SPARC Enterprise M4000 servers on Oracle Solaris 10, without using virtualization, to achieve mission-critical availability in turn of 70%
  • Established a single data source with Oracle Database, Enterprise Edition 11g across companies, eliminating duplicate suppliers, customers, and items, reducing the time required to identify the company’s financial status by a factor of three, and enabling the group’s developers to create business intelligence dashboards for management reporting with ease
  • Enabled the Royal Group to reduce the time required for preparing management reports by 50%, generating accurate financial statements at the subsidiary, company, and group levels, and enabling managers to make decisions within a much shorter period than ever before
  • Reduced the time required for processing the month-end closing by more than 50%—from two or three months to less than one month
  • Streamlined payroll generation for 4,000 employees, unified recruitment procedures across companies, and facilitated intercompany personnel transfers by centralizing policies and processes for human resource at the group level

Why Oracle

“When we researched the market for a comprehensive ERP platform suitable for all industries, we found that Oracle E-Business Suite Release 12, with its large degree of flexibility, met our needs perfectly. Oracle’s strong background in the Gulf Cooperation Council (GCC) region supported our decision further,” said Abdulrahman Ishtaiwi, head of information technology at the Royal Group.

Partner

Royal Technology Solutions is a subsidiary of Royal Group in charge of the group’s information technology, from servers and storage, to applications.