BHARAT PETROLEUM

SAP for O&G helps BPCL man- ... (SAP for O&G) solution portfolio. What’s more, ... In-House Expertise At BPCL’s ERP competence center,...

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BHARAT PETROLEUM DELIVERING ACTIONABLE INSIGHT AND BUSINESS VALUE – FAST QUICK FACTS

“When people saw the software in action, they began to understand the power of business analytics. They soon realized that SAP NetWeaver BI is not just about technology, but that it delivers real business value.” K. B. Narayanan, General Manager, ERP Competence Center, Bharat Petroleum Corporation Limited

Company • Name: Bharat Petroleum Corporation Limited (BPCL) • Location: Mumbai, India • Industry: Oil and gas • Products and services: Crude oil refining; manufacture and retail of solvents, petrochemicals, lubricants, and fuel • Revenue: US$27.8 billion • Employees: More than 14,000 • Web site: www.bharatpetroleum.com • Implementation partner: SAP® Consulting Challenges and Opportunities • Enhance functionality across all areas of the enterprise • Enable faster, more efficient decision making • Provide employees with accurate, up-to-date facts and figures • Streamline reporting and analysis • Optimize use of SAP NetWeaver® Business Intelligence (SAP NetWeaver BI), functionality that is now known as the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) component Objectives • Upgrade to the latest version of the SAP for Oil & Gas (SAP for O&G) solution portfolio • Upgrade to the latest release of SAP NetWeaver BI

SAP Solutions and Services • SAP ERP application • SAP for O&G • SAP NetWeaver BW • SAP NetWeaver Business Intelligence Accelerator software, functionality that is now known as SAP NetWeaver Business Warehouse Accelerator software • SAP Consulting Implementation Highlights • Implemented new functionality and performed upgrade smoothly and successfully • Expanded the adoption of SAP NetWeaver BW across the enterprise Why SAP • Extensive existing SAP software−based landscape • Industry-specific functionality that is critical for the BPCL value chain • Total of 9 out of top 10 oil companies leverage SAP software • Good local presence in India Benefits • Better, more accurate decision making • Faster, more efficient reporting and analysis • Enhanced access to business analytics for more employees • Increased sales generated by customer loyalty card programs Third-Party Integration • Database: Oracle • Hardware: Hewlett-Packard • Operating system: HP-UX

SAP Customer Success Story Oil and Gas

Indian oil giant Bharat Petroleum Corporation Limited (BPCL) has always been keen to ensure its IT delivers real business value. That means streamlining business processes and increasing efficiency by keeping abreast of technology trends and implementing powerful solutions. Against this background, staff from BPCL’s own competence center introduced new functionality from the SAP for Oil & Gas (SAP for O&G) solution portfolio. What’s more, they transformed the way SAP NetWeaver® Business Intelligence (SAP NetWeaver BI), functionality that is now known as the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) component, was deployed – giving employees throughout the entire enterprise access to critical facts and figures.

Headquartered in Mumbai, India, BPCL came into being following nationalization of Burmah Shell in 1976. It is the country’s second-largest oil company and was ranked on the 2008 Global FORTUNE 500 list. BPCL specializes in refining crude oil and in the manufacture and retail of a wide range of petroleum products for both industrial and domestic use. As an operator of retail gas stations, convenience stores, and liquefied petroleum gas distributors throughout the country, it is a well-known, high-visibility brand in India. The company currently employs a workforce of over 14,000 and posted revenues of more than US$27.8 billion in 2007.

Innovative Approach to Technology Over the past decade, BPCL has seen the business go from strength to strength. And it is on course for more growth in the years to come. Underpinning the

company’s success is a strong, stable, and state-of-the-art IT infrastructure – based on SAP® software. “We made the transition from our disparate legacy systems to SAP software almost 10 years ago. And we haven’t looked back,” explains K. B. Narayanan, general manager of the ERP competence center at BPCL. The initial project was a first in India: rather than simply selecting a few functions, BPCL opted for an innovative, big-bang approach – introducing the full scope of functionality available at the time (and now found in the SAP ERP application and SAP for O&G). This set a precedent, and the company has continued to pioneer new technologies and implementation strategies ever since. For Narayanan, the company’s relationship with SAP is an ongoing journey. “We’ve come a long way since we set out, but we’re not done yet,” he says.

Keeping Technology Up-to-Date Senior managers at BPCL decided it was time to upgrade the core enterprise resource planning software to the latest version of SAP ERP and to further extend functionality from SAP for O&G. Their motivation? To streamline business processes by giving employees access to some of the most up-to-date technology on the market. SAP for O&G solutions provide industry-specific support – from the extraction of raw materials to refining to selling finished goods. SAP for O&G helps BPCL manage the entire downstream hydrocarbon value chain from the refining of crude oil through to the transportation, distribution, and sales of petroleum products.

“We made the transition from our disparate legacy systems to SAP software almost 10 years ago. And we haven’t looked back.” K. B. Narayanan, General Manager, ERP Competence Center, Bharat Petroleum Corporation Limited

Around the same time, decision makers took a closer look at the way SAP NetWeaver BI was being deployed. The software had been installed some years previously, and management felt it was time to optimize and expand its usage. SAP NetWeaver BI integrates data from across the enterprise and beyond. It provides employees with the tools they need to retrieve vital facts and figures and transform them into valuable business insight – fast.

“We’ve developed a strong, long-term partnership with SAP. And we definitely want to build on it. SAP software offers a tremendous opportunity to innovate and find flexible solutions to specific business challenges. . . . And we’re very excited about what the future holds.”

K. B. Narayanan, General Manager, ERP Competence Center, Bharat Petroleum Corporation Limited

In-House Expertise At BPCL’s ERP competence center, certified experts test, implement, and maintain the company’s extensive SAP software−based environment. The 100-strong team has extensive experience and hands-on knowledge of SAP products, which is extremely useful

“We are in frequent contact with experts from SAP Consulting. They are only a phone call away whenever we need them. And we certainly wouldn’t go anywhere else for advice.” K. B. Narayanan, General Manager, ERP Competence Center, Bharat Petroleum Corporation Limited

when supporting end-user queries and issues. “Thanks to our highly skilled resources, we were able to successfully perform the upgrade and implement software from SAP for O&G ourselves,” says Narayanan. “However, we are in frequent contact with experts from SAP Consulting. They are only a phone call away whenever we need them. And we certainly wouldn’t go anywhere else for advice.” Parallel to the upgrade, competence center staff went ahead with the task of internally checking how SAP NetWeaver BI was being used. “We were quite surprised to find the component wasn’t being leveraged to its full potential,” explains Narayanan. On the back of these findings, a quick-action team was estab-

lished to explore ways to drive SAP NetWeaver BI adoption across the enterprise and enhance its business value.

Facts and Figures for Everyone In the past, SAP NetWeaver BI had been predominantly leveraged by managers from various regions and at company headquarters. But Narayanan’s team discovered that middle management and sales staff could also benefit from having timely access to key performance indicators. “Waiting for charts and graphs to be passed down from the head office often takes time,” says Narayanan. “But our people in the field need to see the relevant business metrics as soon as they’re available. It’s not just top executives who make important decisions every day.” So the team went about giving more employees access to SAP NetWeaver BI. They increased the number of user licenses from 200 to 600 and demonstrated the power of SAP NetWeaver BI in various business contexts. What’s more, to help ensure optimum performance, they upgraded to the latest version of the component. As part of the initiative, decision makers opted to integrate data from BPCL’s customer loyalty card programs and give sales managers at retail outlets access to the software – a smart move, as Narayanan explains: “Using the insight gained using SAP NetWeaver BI, our sales force developed strategies to increase membership in the loyalty programs. This move has helped dramatically increase the business generated

by the card schemes. In fact, at least 30% of the growth can be attributed to SAP NetWeaver BI.” And it’s not just sales force that benefited from SAP NetWeaver BI: employees at all levels of the enterprise are now using the powerful analytical component. As a result, they have better insight into vital business metrics. Moreover, decision making, reporting, and analysis are now much faster. “When people saw the software in action, they began to understand the power of business analytics. They soon realized that SAP NetWeaver BI is not just about technology, but that it delivers real business value,” says a satisfied Narayanan.

Simpler, Smoother, Faster With the volume of data and the number of users constantly on the rise, BPCL has decided to introduce SAP NetWeaver Business Warehouse Accelerator (SAP NetWeaver BW Accelerator) software. This solution comprises state-of-the-art SAP software and high-performance servers from leading hardware vendors. It leverages aggregation and compression technology to deliver more accurate results even faster. “User acceptance and satisfaction are closely linked to the user experience,” explains Narayanan. “By offering an even swifter, smoother way of calling up information, we can encourage more people to use our business intelligence software. And this, in turn, will help streamline decision making, boost productivity, and improve the way we do business overall.”

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The Journey Continues Once SAP NetWeaver BW Accelerator is up and running, BPCL expects to increase the number of users to approximately 1,000 – making powerful functionality and business analytics available to an even broader employee base. BPCL has invested considerable time and effort in establishing a cuttingedge IT infrastructure and specialist inhouse resources – and the organization is reaping significant benefits. But the story does not stop here: “We’ve developed a strong, long-term partnership with SAP. And we definitely want to build on it,” explains Narayanan. “SAP software offers a tremendous opportunity to innovate and find flexible solutions to specific business challenges. We’re keen to explore the possibilities a service-oriented architecture can offer BPCL. And we’re very excited about what the future holds.”

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