ERP Implementation at BPCL

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IT Intiatives at BPCL Contd...

The ERP implementation was part of the company's 'Project CUSEC (Customer Service and Satisfaction), which had to meet the challenge of an imbalance between refining and marketing. The company selected SAP R/3 as it was already being successfully used by major oil companies in the world. It was also the only package which had an oil industry specific package and an India specific package. BPCL appointed consultants Coopers and Lybrand13 for the planning process of SAP R/3's implementation. The consultants worked in close co-ordination with functional experts within the company. The first phase of the implementation began in April 2000. The company's existing network was redesigned and restructured and all its branches were linked to a central connectivity cloud.14 This was done through routers15 and switches,16 which were in turn connected to servers and workstations (Refer Table II).

Table II
System Components Used By BPCL

* Juhu is connected to ISDN cloud.

BPCL realized that security would determine success of online business. BPCL ensured security through Sun Ultra 5 firewalls¹⁷, Real Secure, Internet Scanner, Floodgate, Web Trend and Web Sense. Web servers were installed at Bangalore and other metros with Compaq Proliant 1600 servers. Tests to modify and customize the SAP modules were carried on the quality assurance server (QAS). New developments and customization were made on the Development Server and then moved to the QAS for quality tests. (Refer Table III).

Table III
The Server Architecture

Source: ICMR

The server architecture included a Compaq Proliant NT server, an SCO box, a Sun Firewall and other servers. The Cisco 2610 routers at each location led to a Cisco 1900 family switch for distribution. BPCL had also setup a data warehouse with business objects and query-by-mail. The company also implemented a Tivoli ESM (Enterprise System Management)¹⁸ solution. By November 2001, BPCL became the first Indian company in the oil industry to have implemented ERP. According to analysts, BPCL managed to complete the ERP implementation much ahead of its arch rivals IOC and HPCL, mainly because of its efforts to streamline its IT initiatives.

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13] Merged with consultants Price Waterhouse in 2000.
14] A cloud refers to a public or semi-public space on the transmission lines between the end points of a transmission.
15] Router is a device that connects any number of local area networks. Routers use headers and forwarding table to determine where packets (packet is a piece of a message transmitted over a packet-switching network and it contains the destination address in addition to the data) go, and they use Internet Control Message Protocol (ICMP supports packets containing error, control and informational message) to communicate with each other and configure the best route between any two hosts.
16] A device that filters and forwards packets between local area network segments.
17] Firewall is a system used to prevent unauthorized access to or from a private network. They are frequently used to prevent unauthorized Internet users from accessing private networks connected to Internets, specially the intranet.
18] ESM provides clients with comprehensive service and software solutions for all enterprise management needs.