CLASS REPORT

KAWANGUZI EDGAR ATHANASIUS – MBA II - EVENING

THE NSSF (National Social Security Fund) FIELD STUDY

TOPIC: ERP (Enterprise Resource Planning System) Implementation and

Utilization at NSSF.

Main Objective:

Help students understand Information Systems in real time environment.

Other Objectives;

 Understand the purpose of various Information Systems (IS) in NSSF

 Study IS activities i.e. input and output process storage & Control activities
 What Resources are used in IS in NSSF i.e. Hardware, Software, Human Resource, data &
Network and resources.
 Implementation of integrated IS i.e. ERP. Steps adapted as well various issues during
implementation
 Different modules of ERP systems used in NSSF & their functions.
 Benefits if ERP to NSSF

Introduction:

The National Social Security fund is a corporate-government organization formed in the late 1960’s
under the Uganda labor act which was instituted in 1967. NSSF is the only and sole monopolist offering
its unique products on the market in Uganda and in East Africa put altogether.

The main objective of the NSSF is to Collect, Invest and then reimburse its members at the appointed
time. Basically it is a Social Security fund which protects the interest of its members who are employees
in various institutions and enterprises in Uganda. And when the age of 50 years is reached, one is
reimbursed with their fund contribution that they have contributed over the eras at an interest.

The scheme works in a way where the employee contributes 10% and the employer contributes 15% on
behalf of the employee.

NSSF has a membership of over 8000 members and makes annual reimbursements of over 50BN
Uganda shillings.
ERP System n NSSF.

The ERP of NSSF is made up of 3 basic sections which are:

a) The Biometric System

b) The Central database system
c) The ERP System

The Biometric system was designed to record and integrate all Bio data of the membership and the
employees of NSSF this data which infers unique identification practices like finger print pattern
information which can be used to track the member and verify his information in case of a possible
claim.

The Central database System stores all the information and makes it possible to easily access records
and data about the fund members and employees and also keep track of field staff the software
implemented is Oracle.

Then the ERP system used is JDE (JD Edwards) which integrates all this information and data collected
by the other 2 arms of the system and then integrates it to make information easily accessible and
process transactions very quickly at zero time.

All the 3 part system is integrated and joined by bridges which applications are developed by Software
engineers or application developer to allow communication between the 3 parts of the ERP system and
act as a data capture.

Choice of ERP Cost & Functionality

The NSSF has been challenged under several circumstances. Before 2005 NSSF made its first attempt to
implement an ERP Systems which made a terrible turn and failure. This absurd event cost the company a
whooping $5 million in cost. Mr. Peter Kihiigi a Information systems administrator with world bank was
recruited to set things straight, and implement a fully functional and intergraded information system.

The System was obtained from Oracle company this system is JD Edwards which is a company bought by
oracle itself.

A consultancy firm from South Africa was hired to help in the implementation of this system.
The main objective and function of the system was to

a) Collect contributions

b) Invest

c) and Payback

Initially before these functions were performed independently and the challenge was to get an ERP that
can integrate these functions and coordinate them efficiently.

Mr. Peter Kihiigi and his team were faced with a challenge of setting up this system. Because of its
complexity and the human resource wasn’t very supportive. This all contributed to the challenges in the
implementation of the system.

Challenges faced:
 Training and technology transfer.
 Change Management.
 Migration of data into the system and Data Loss.

Advantages of the ERP to NSSF

In the absence of an ERP system, a large manufacturer may find itself with many software applications
that cannot communicate or interface effectively with one another. Tasks that need to interface with one
another may involve ERP systems connect the necessary software in order for accurate forecasting to be
done. This allows inventory levels to be kept at maximum efficiency and the company to be more
profitable.

 Integration among different functional areas to ensure proper communication, productivity and
efficiency
 Design engineering (how to best make the product)
 Order tracking, from acceptance through fulfillment
 The revenue cycle, from invoice through cash receipt
 Managing inter-dependencies of complex processes bill of materials
 Tracking the three-way match between purchase orders (what was ordered), inventory receipts
(what arrived), and costing (what the vendor invoiced)
 The accounting for all of these tasks: tracking the revenue, cost and profit at a granular level.

ERP Systems centralize the data in one place. Benefits of this include:
 Eliminates the problem of synchronizing changes between multiple systems - consolidation of
finance, marketing and sales, human resource, and manufacturing applications
 Permits control of business processes that cross functional boundaries
 Provides top-down view of the enterprise (no "islands of information"), real time information is
available to management anywhere, anytime to make proper decisions.
 Reduces the risk of loss of sensitive data by consolidating multiple permissions and security
models into a single structure.
 Shorten production lead-time and delivery time
 Facilitating business learning, empowering, and building common visions

Structure of the Feed Back Information System at NSSF:

CEO

CIO (Chief Information Officer)

DCIO

IT Services Systems Security

Networks Applications

*The chief Information officer reports directly to the CEO

Networking and Data Sharing:

NSSF is a country wide organization with over 25 branches across the nation where communication and
data transfer which is done over a reliable network. This network and data communication is done over
data link cables provided by UTL and MTN.

NSSF makes use of two service providers just in case one data connection is not responding the other
connection can be used.
The Server Room:

We later took a tour in to the NSSF Server room which is made up of several routers, switches and
multiple servers to help in the efficient operation of the ERP system. Maximum security is required to
keep data safe and data backup systems to ensure continuity in case of hazards or unplanned
eventualities.

Conclusion:

The NSSF has successfully implemented the ERP system. Thanks to Mr. Peter Kihiigi and his team

Mr. Peter Kihiigi has been awarded the best CIO award in Africa. Hence this has nelp NSSF serve better
its clientele and offer their services all over the country.