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ERP Implementations – Case Study (Ooredoo) Nader Rais

A- Case Description:
Service Level Agreement (SLA) – ERP Implementations (NetSuite)
Contracts Duration: 3 Months. (Automatically renewed)
Between: Ooredoo and XYZ (Contractor/Supplier)
Ooredoo appointed XYZ (Contractor/Supplier) to implement an ERP system (NetSuite) in
different locations.

Service Level Agreement (SLA) main Clauses:


1) Confidentiality: XYZ agree they won’t share company confidentialities with other
parties.
2) Delivery requirements: Ooredoo and XYZ decide who will deliver what and when, the
contract should cover both software and services. Up-front, implementation and
ongoing costs should be clearly understood. Responsibilities during implementation
should be clearly laid out.
3) Dispute resolution: In the event of dispute, the SLA states how Ooredoo and XYZ will
resolve their conflict, in this scenario it’s in Qatar.
4) Geographic Locations: Both Ooredoo and XYZ agree on where and when the ERP
system will be implemented.
5) Intellectual property: Ooredoo and XYZ shall decide to how to handle ownership and
usage of all patents and IP’s.
6) Payment terms: These terms show the expected cost and the payment schedule.
Charges are exclusive of any customs or other duty and taxes. Amounts are due upon
receipts of the invoice and payable within 30 days. Late payments fees may apply.
7) Warranties: Both Ooredoo and XYZ should agree on the coverage and scope of the
warranty, mainly after ERP implementation.
8) Scope of Work: Both Ooredoo and XYZ states what each party considers acceptable
work.

Service Level Agreement (SLA) Red flags:


- Duration of Contract: The contract would be for a period of 3 months (taking as example) and
it would be renewed if both parties consent to such renewal in writing.
-Indemnity: XYZ shall be liable to indemnify Ooredoo in the event of:
A. Breach of confidentiality
B. Breach of Intellectual property obligations.
C. Breach of any applicable law.
D. Failure to deliver the service.

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ERP Implementations – Case Study (Ooredoo) Nader Rais

-Limitation of Liability: The liability of Ooredoo under this contract would be limited to the
value of the contract. (Or any lower amount).
Ooredoo will not be liable for special, incidental, exemplary, indirect, or economic
consequential damages, or lost profits, business, value, revenue or anticipated savings.
-IP Indemnity: XYZ shall not while performing services under this agreement Knowingly infringe
or misappropriate any registered intellectual property of Ooredoo or any third party.

Ooredoo Business partners who use or make available services provided by


Ooredoo or Non-Ooredoo products are independent from Ooredoo and
unilaterally determine their prices and terms.
Ooredoo is not responsible for their actions, omissions, statements, or offerings.

B- Termination for Convenience:


XYZ may terminate this agreement for convenience upon sixty (60) days written notice to
Ooredoo. In any termination for convenience under this agreement, XYZ shall be responsible
for payment of any amounts due through the end of the current implementation (Or
subscription) term. XYZ and Ooredoo agree that Ooredoo shall have no obligation to refund to
XYZ any prepaid and unused fees. In addition, Ooredoo may apply penalties.

C- NON-Contract Management Verdict:


Solid ERP contract is a foundation for successful ERP implementation projects.
An ERP implementation is people project, it’s always subject to failure, more than 30% of ERP’s
implementations fails to achieve its objective.

Before implementing any ERP system, we should always consider the below:

-The right ERP system for the business. (If it’s Cloud or on-premise, number of users...)
-Value added to the business growth.
-Proper planning and delivery.
-Strategy in place.
-Right peoples and trainings/support.
-Customization.
-Risk assessment.
-Backup plans.

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