10/9/15

BPR IMPLEMENTATION @ ONGC

Presented ByPrashant Khedekar
Sagar Waghotkar
Rohan Mathkar

INTRODUCTION

ONGCisamultinationaloil&gascompanyheadquarteredinDehradun,
Uttarakhand,India

ItisaPublicSectorUndertaking(PSU)oftheGovernmentofIndia,under
theadministrativecontroloftheMinistryofPetroleumandNaturalGas

ItisIndia'slargestoilandgasexplorationandproduction
company

Itproducesaround69%ofIndia'scrudeoil(equivalentto
around30%ofthecountry'stotaldemand)andaround62%
ofitsnaturalgas

Operationsinclude:
7basins,33,000employeeswithmorethan500offshore

andonshorelocations.

PRE-ERP DAYS OF ONGC

ONGCusedPC-basedlegacysystemformaterialmanagement,project
monitoringandmaintenanceplanning.

FelttheneedforasolutionusingITasONGC spans across 10 countries

outside India- from Russia to Venezuela

EXISTING ENVIRONMENT:

DATABASE:
HARDWARE:
OPERATING SYSTEM :

ORACLE
HP, COMPAQ, IBM AND SUN
MICROSOFT WIN NT, SUN SOLARIS, AND UNIX

Challenges: Transform Business Operations

Collation,consolidation,andanalysisofoperationaldataweredifficultand
timeconsuming.

Standardizemorethan200businessprocessesfor13,000usersacrossatotal
ofmorethan500offshoreandonshorelocations-allinunder30months

Cleanupandmigrationofhugeamountofdatafromlegacysystemsand
creationofdatafromhardcopies

CreateoneofthelargestdatacentersinAsiaPacificforSAP

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Replicationofdataandconfigurationinreal-timeviasatelliteaswellas
linkingtoexistingsystemswasalsorequired.

BUSINESS PROCESS
RE-ENGINEERING
IMPLEMENTATION
AT ONGC

PROJECT OBJECTIVE:
Objective of SAP Implementation:

OptimizationandstandardizationofBusinessprocesses

Highervisibilityofoperationstoimproveproductivity

AlllocalandoffshorebusinessoperationsofONGChadtobe
integratedintoasingleERP

Availabilityofinformationonrealtimebasis
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SOLUTIONS:
SAP Solutions and Services:

ThemySAP.come-businesssolutionsproposedtobeimplemented
overthenext30monthsacross5regionsofONGCforover8500
users

ItIncludedsolutionscoveringfinancials,businessintelligence,
supplierrelationshipmanagement,productlifecycle,etc

TheONGCwasalreadyusingaHumanresourcepackage(Sharmik)
&Financialpackage(Kuber)fromSAP
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SOLUTIONS:
Why SAP was chosen?

SAPforOil&GASSolutionPortfolio:SAPhasexperiencewith
globaloil&gasproductioncompanies.

Solutions&servicescomplementedexistingSAPFinanceand
Humanresourceapplications.

mySAPBusinessSuitefamilyofBusinessSolutions.

IMPLEMENTATION:

SAPIndiasignedthelargesteverdealinONGC.ThedealworthRs
950million.

ItwasalsothelargestconsultingdealfroSAPAsiaPacific.With
8500licensedusersacrossONGC.ItwouldbeAsia'slargestERP
project.

mySAP BusinessSuiteandtheSAPforOil&Gassolution
portfolio,includingtheSAPStrategicEnterpriseManagement
application,SAPBusinessInformationWarehousecomponentpart
andSAPportalwereImplemented.
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IMPLEMENTATION:

TheimplementationalsoincludesotherSAPsolutions,suchasthe
CollaborationProjectssuite,aswellassupplierrelationship
managementandupstreamoilandgasexplorationandproduction
solutions.

ThisprojectintegratedtheirexistingSAPfinancialsandhuman
resourcesolutionsusedinmorethan500ONGClocations.

ThesystemwasimplementedincorporatecenterinNewDelhiwith
abackupinMumbai

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POST IMPLEMENTATION @
ONGC

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BUSINESS PROCESS REENGINEERING

Abusinessprocessisacollectionofactivitieswhichtogether
producesomethingofvaluetoacustomer

e.g.CustomerOrderEntry

Re-engineeringisthefundamentalrethinkingandradicalredesign
ofbusinessprocessestoachievedramaticimprovementsincritical,
contemporarymeasuresofperformance,suchascost,quality,
service,andspeed

What to Re-engineer:

BPRchangesprocesses,andnotfunctions,departments,
geographiesortasks
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IT IN BPR

Shareddatabase,makinginformationavailableatmanyplaces

Decisionsupporttools,allowingorgtobecentralizedanddecentralizedatthesametime

Automaticidentificationandtracking,allowingobjectstotellwhere
theyare,insteadofrequiringtobefound

Process-orientedredefinitionofworkrolesanddutieswereassigned
andthisresultedingreatertransparencyandaccountability

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BPR ACHIEVED THROUGH I.T.

IN ONGC

Improvedanddisciplinedapproachtoaccountingandfinancial
system

Availabilityofcriticaldataonlineforalllevelsofmanagement

LaunchofReverseauctionprocess,firstPSUtodoso.Termedas
liveactioncockpitthesystemenablesONGCtocollectand
comparepriceandbidinformationofvarioussuppliersinrealtime

Thereverseauctionwillensuretransparencyintheprocess
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CONT

ONGCalsoimplementedemployeeself-service(ESS)functionality
ofthemySAPERPsolution,expandingitsreachto36,000users.
TheESScodenamedSamparcwhichfacilitatesemployeestoapply
forleave,submittheirclaimsandviewtheirpaymentdetailsonline

Improvedvisibilityacrosstheenterpriseacrosstheglobe

ImprovedabilitytocompetethroughthestrategicuseofnewIT
platform

Increasedproductivityoftheemployees.
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QUOTES
Atendoftheday,SAPConsultingexcelled,Imustsay.Theygave

usagoodsupportandtriedtounderstandourbusinesstodeliver

theproductwewerelookingfor
By- KS Jamestin, GM and Head of Project, ICE,ONGC
ONGCstronglybelievesinadoptingworld-classprocessesand

technologiestogeneratebettervalueforitsstakeholders.On
thebasisofthepilotprojectitisestimatedthatreverseauction
willbeabletoaccrueacostsavingofnearly10%.
By- Mr. U.N. Bose, Director (T&FS), ONGC

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