Business information Systems Management pgp18

Case Questions
NITESH BHUWANIA
PGP/18/036
Sec-A

Case: Making IT Happen at BCPL Kochi Refinery:

Defining New
Paradigms of Operational Excellence
through IT Transformation
Questions:
1.

Do you think the IT implementation at BPCL KR as a successful

implementation? If so Why?

A)

Yes, IT implementation at BPCL Kochi refinery was a successful.

-Automation and Optimization of refinery operational processes like planning,
scheduling, blending, Hydrocarbon accounting, reconciliation and performance
management.
- For an end to end integrated solution LIMS, AIMS and SAP were integrated
with MES.
-Each technology supported in holistic decision making support and execution
solution in achieving operational excellence.
-It increased visibility and Optimization within the plant and across

2.

downstream supply chain.

Do you see any challenges in managing the change due to IT implementation
in large public sector organizations like BPCL KR, located in India? How did
BPCL KR manage the challenges?

A)

Challenges faced by the IT Team in formulating the strategy were:

Identification of the system and packages to be implemented.

The solution architecture and infrastructure for each system.
Assessment of the business value generated by the systems.
The roadmap and approach plan to be adopted for the implementation.
Change management.

All communication message during the change management was sent with
the logo : Together we make IT happen. This was the most crucial
aspect of change management.
Exclusive training programs and motivational workshops were
conducted throughout the organization in small and big groups.

Business information Systems Management pgp18

Case Questions
NITESH BHUWANIA
PGP/18/036
Sec-A
A special in-house group bulletin called Mantradhwani was released
to the disseminate different aspect of the SAP R/3 implementation.
Special booklets describing various modules, cross connections and
FAQs about SAP R/3 were published.
For the assessment of benefits Business process analysis study was
conducted for MES.
3. What were the Critical success Factors for the IT implementation? How these
factors are illustrated in this case?
4. Do we have any risks in product implementations like ERP? If so what were the
major risks during the implementation of SAP and how it was mitigated?

A) Risks that are involved in an ERP implementation are

Improper project management

Inadequate training
Over reliance on consultants
Unwanted customization
Insufficient testing
Offshoring SAP design and build

Mitigating the risks

Improper Project Management:
Projects fail not due to software or hardware issue but due to improper
execution
PMO should talk his team through about various stages like design,
development, testing and integration to mitigate the project
management risks
Improper Training:
Lot of employees and users reject the application due to its difficulty in
usage.
Working on SAP applications need exhaustive training in handling

Over

various steps
Improper usage leads to inefficiencies
reliance on Consultants:
Consultants who have business matter expertise are hired.
While this is good they fail to understand the internal picture most of

the times.
Make the consultants accountable

Business information Systems Management pgp18

Case Questions
NITESH BHUWANIA
PGP/18/036
Sec-A
Impose compulsory knowledge transfer to internal employees post go
live
Unwanted customization:
SAP provides lot of inbuilt applications which can be customized
Most companies fail to identify what is required and go for unwanted
customization
Hiring techno-functional consultants who understand both the business
and technology mitigates these risks
Insufficient Testing:
Implementing SAP is a costly affair, applications with insufficient testing
fail to meet the requirements
This results in redeveloping the applications which is extremely costly
Various testings like integration testing, unit testing, functional testing
etc. must be done to ensure proper functionality
Offshoring SAP design and Build:
While offshoring brings the cost down, design and build needs continues
visits to the client site to understand the business.
Offshore activities like development and maintenance while keeping
core activities like design with in the client locality
5. What are the advantages and disadvantages of Big bang implementation?
How do you evaluate the Big bang implementation done at BPCL KR?
A) A straightforward ERP Implementation approach. It means all ERP modules,
such as financials, manufacturing, and human resources, etc, are
implemented in all business units at all geographic locations at the same time
and the -- The old system will be entirely shut down.
Advantages
1) The entire organization reaps the benefits of the deployed system as this
enforces process change.
2) Installing the ERP by Big bang approach may help the company to get
quicker return on the investment.
3) Easier integration and reporting.
4) No temporary interfaces required.

Business information Systems Management pgp18

Case Questions
NITESH BHUWANIA
PGP/18/036
Sec-A
5) Lower cost of running the systems as legacy systems are retired
simultaneously.
6) Faster implementation timeline.
Disadvantages
1) High capital and human resource investment.
2) Any technical performance issue affects the entire user population.
3) Requires training of the entire user population.
4) Complex deployment and testing.
5) The completeness and validity of the converted data is not completely
proved, only in the pre-phases, but not in the whole system situation.
6) This adoption of the new system is vulnerable because of the limited
possibilities to maneuver, and there is a lot of pressure because the deadline
must be met.
6. In your opinion what was the approach adopted by BPCL KR for Information
Technology planning? Can we adopt the same approach to other
manufacturing industries?
A) Many PSUs have used IT to increase productivity and efficiency of processes.
One such example is Project Monitoring Center (PMC, Noida) established by
NTPC. PMC helped in monitoring all the projects from one location. It increased
transparency as the information was available to everyone and could not be
manipulated. Unresolved issues started getting due attention from top
management resulted in prompt solutions. PMC is also made available across
organization by developing a website. It also developed a platform for the
power ministry and citizens to check the status of upcoming projects. It helped
in increasing the individual responsibility. IP cameras were also installed and
linked with the PMC for the effective supervision from remote location.

Business information Systems Management pgp18

Case Questions
NITESH BHUWANIA
PGP/18/036
Sec-A
Ministry of power advised other PSUs to follow NTPC and applauded for its
efforts in building IT to support its business processes.
7. What are the key future technological challenges BPCL KR should address?
A) Key Future challenges BPCL KR should address:
1) Sustainability of the existing IT application.
2) Building IT competency center for refineries.
3) Optimize the existing IT system for more business value.
4) Identifying and implementing new IT system aligning with the business
strategies as envisaged for next 5 years (Project Dream plan).
5) Adoption of refinery specific IT application based on three emerging
technologies : 1) Mobility 2) Analytics 3) Cloud computing.
8. What is your learning on Project Management from this case?
A) BPCL looked at all the aspects of cost, quality, and time without compromising
on any of these facets. The success of its IT projects hinged on its project
management. A clear path was laid during the conceptualization stage itself.
Thorough research helps in identifying potential pitfalls during project
implementation. Cost benefit analysis was done before the implementation of
the project which gives a better idea to the management. Functional experts
were taken from all the departments to make the process effective. A special
committee (project steering committee) was formed to escalate the issues
and take prompt action. Projects should be divided and implemented in
phases so that milestones can be specified and verified. Work assigned to the
teams can easily be checked with proper project planning and milestone
setting. Proper documentation of all the stages is highlighted