Erp Implementation In Bplc

EXECUTIVE SUMMARY

Many Indian companies today are investing into information technology with an objective to improve business processes. The wide spread use of information technology is an indicator that information technology is being used to leverage the company's resources and thus create a competitive advantage in the marketplace.

Bharat Petroleum Corporation Limited though not a FMCG company by definition, had embraced an extensive investment in information technology. BPCL envisaged the need for information related to the different petroleum products it offers besides high-speed diesel and motor spirit (petrol). With its refinery at Mumbai (India) and the acquisition of Cochin refinery it has a good presence in India with over 4000 retail outlets and hundreds of LPG distributors.

Given the environment in which BPCL operates today - the liberalization, privatization and globalization phenomenon BPCL may enter into an environment where the administrative price mechanism for petroleum products may be dismantled with market determining the price. This would need BPCL to have complete information about its business transactions. With this objective in mind BPCL has invested in creating an IT infrastructure across its refineries, bottling units, some retail outlets, distributors, and all its offices.

TABLE OF CONTENT

EXECUTIVE SUMMARY.....................................................................1

INTRODUCTION...............................................................................5

LITERATURE REVIEW......................................................................5

I. The Dynamics of ERP implementation Success

II. ERP teamwork and composition

III. Top management support

IV. Business plan and vision

V. Effective communication

VI. Project Management

VII. Appropriate business and legacy systems

VIII. Change management program and culture

IX. Business process reengineering (BPR) and minimum customization

X. Software development, testing and troubleshooting

RESERCH METHODOLOGY...............................................................8

DICUSSION OF FINDING VALIDATE CASE STUDY................................8

I. Company Background

II. Business Strategy

III. Company Vision

IV. Company Mission

IT INITIATIVE AT BPCL....................................................................9

STRATEGIC ALIGNED MODEL IN BPLC...........................................11

I. Alignment Perspectives

PRE-IMPLEMENTATION.................................................................14

II. The need of ERP-SAP system

III. Selection of SAP R/3 System

IV. Requirements and Objectives

V. Vendor's Profile

THE IMPLEMENTATION................................................................16

PHASES OF IMPLEMENTATION .....................................................16

I. Conceptual Design and Planning (CDP)

II. Detailed Design and Implementation (DDI)

III. Key deliverables of the detailed design on implementation phase

IV. Pilot implementation

V. Roll out

POST IMPLEMENTATION...............................................................18

I. Benefit projections

II. Benefits on alignment with business strategy

* Benefits to Customers / Vendors

* Benefits to Internal Customers

* Benefits to Shareholders

* Benefits to Employees

CONCLUSION................................................................................21

REFERENCES................................................................................22

LIST OF FIGURES

Figure 1 Information system framework at BPCL..............................10

Figure 2 Strategic Alignment Model ...............................................12

Figure 3 Benefits from ERP implementation.....................................19

LIST OF TABLES

Table 1 Alignment perspectives....................................................13

LIST OF ABBREVATIONS

BPLC Bharat Petroleum Corporation Limited

SBU Strategic Business Units

ERP Enterprise Resource Planning

FMCG Fast Moving Consumer Goods

INTRODUCTION

In today's life, business means competition. Every business will contend to produce not only a better and more reliable product but also providing a better customer service. In the mean time, they are enforced to minimize their production costs as well as their overhead costs. These can only be achieved through developing a better information system,