Managerial Information System Case Analysis Bharat Petroleum Corporation Limited

Submitted to Dr. Gayatri Doctor Submitted by Hardick shobhawat AM2212 Date 5 march 2013

resource creation and deployment. and learning attitude).   Conflict resolution procedures (committee structure. data creation. Evaluation of organization’s preparedness (issues related to data availability and consistency. Efficient project execution team (reporting formats. The first segment reviews the stages in an ERP implementation experience and summarizes the learnings and insights in the context of BPCL. process redesign. changed or changing environment conditions. IT strategy.). . Stability. This diagnosis is organized in two segments. role clarity. These implementation stages are usually supported by:   Top management support (motivation. ability to work in teams. generating backup options. budget support. ERP IMPLEMENTATION STAGES It is now well known that an ERP implementation is designed in several interconnected stages like:   Need for ERP (based on the current business practices. and process team structure). use of external consultants and internal implementation team. behaviour on change management process and managerial process orientation.The BPCL case presents an ERP implementation experience in the context of an integrated energy organization which is geographically well spread and characterized by large size operating in a rapidly changing competitive environment.   Implementation (process mapping. and the proposed business strategy). etc. The second and concluding segment discusses several significant managerial (both tactical and strategic) concerns and concludes with an appropriate positioning of ERP. and enhancement. technical ability of executives. process orientation. resource allocation. etc. time-and cost management-related issues. management culture. gap analysis. maintenance. and propagation). pilot implementation. Training and education (technical.

which we discuss briefly below. to identify a positioning for ERP. the cost of networking and disaster management is not considered. There are no major surprises Or uniqueness associated with the BPCL implementation plan. Some noteworthy features are: • Top management involvement and guidance. . the implementation organization does a cost benefit analysis of ERP and generates a solution approach based on economic considerations (typically an investment analysis orientation). process redesign.BPCL Experience The BPCL experience is similar to these well-known implementation procedures. Therefore. Inventory reduction and other benefits projected are one-time savings and they are not exclusively related to ERP. what is proposed is to replace an investment analysis oriented decision-making environment with an orientation to compare the cost of relevant alternatives. • Appropriate use of consultants and internal team members. the best way of evaluating a need for ERP would be based on cost of operation. There are several shortcomings (possible) related to this approach. Cost-Benefit Evaluation Often. In short. • Project monitoring and identification of key deliverables at every stage. ERP-RELATED ISSUES The ERP implementation (as described in the case) in BPCL raises some important managerial issues. • Stage 1 (process mapping) and Stage 2 (implementation). • Training on ERP. • Financial evaluation (cost-benefit analysis). and change management. This would mean the cost of an ERP solution proposed and the inefficiencies and hence the burden on the company for not implementing an ERP may be used to arrive at a solution. Usually.

Two successive major change initiatives may not be sustainable. and customize it for the proposed BPR. Managers and executives would now spend less time in non-value added activities. Adopt an ERP. Process discipline is neither in conflict with creativity nor is it a substitute for it. But it is risky. customize the current processes to the ERP process. and improved process (connecting various departments) integration. Productivity (Improved) and Manpower Rationalization ERP implementation would provide opportunity to increase productivity at all managerial levels in the organization. select an ERP. Because of process automation. Implementation issues are reduced. Organizations usually have two broad options: Conduct a BPR project. would require data integrity and process discipline.ERP and BPR Interlink ages There is a close relationship between BPR and ERP. Approach 1 is very attractive and has a potential for maximum benefit. Creativity and Process Discipline Trade-off ERP. this is considered as a restriction. Alternative 2 is realistic. When this is effectively practised. Also. there would be one time reduction on activities. it would place a healthy demand on the maintenance and enhancement phase of an ERP. This needs to be absorbed either by redeployment or by business growth. once implemented. This is primarily due to easy availability of relevant data. The confusion is between the process and scope for creativity versus a customized (creative) process. This is somewhat increment in approach and assumes ERP processes are the best possible. and hence achieve a moderate BPR. there would be a surplus situation on manpower. consistency on data elements. Often. The ERP may require extensive customization. Consequently. Subsequent process changes would be influenced by ERP vendor. . The appropriate solution is a function of what the organization is capable of handling. the business needs and the extent to which ERP can be customized without compromising its basic character. there are several opportunities in the organization to unleash the creative potential of individuals in an organization. This is not true. The creativity would be reflected in the redesigned process before customizing ERP.

the best benchmark may not be realizable given the environment in which the firm operates. which is not a true. Benchmarking. An optimization on this dimension would be useful but such an exercise depends on the internal dynamics of the organization related to application mix. An organization’s flexibility is a way by which the competitiveness of the organization is managed as a consequence of external environment. Often. Organizational Flexibility It is widely believed that organizational flexibility may be reduced because of ERP. and expected trends in the market place. The rest need .In any case. To argue that the strategy of the organization would be influenced by ERP is neither correct nor feasible. Module Mix. technology understanding. For several organizations. Hence. a successful ERP implementation would give necessary confidence to the senior management in their ability to implement major organizational changes. In-house ERP Consultants True consultants who played an important role in implementation would find a natural settlement. the module mix optimization would remain as a long-term IT strategy. intensity of competition. Module mix (from ERP Suite) and hardware and software interfaces are desirable elements. As a matter of fact. the employee growth would be at a reduced pace than what it was as a consequence of ERP implementation using process simplification and automation. and Interfaces These are desirable features. and the proactive nature of IS resources. In any case. the redesigned processes would improve the performance (by an order of magnitude). The best would become inhouse maintenance and enhancement consultants. Benchmarking should be done to understand the potential gap in performance. Benchmarking is useful to initiate redesigned processes. for a variety of reasons. ERP is only enabling the appropriate strategy by process improvement and data integration. For such organizations. They may even leave the organization for a similar position. one should view ERP implementation as one step close to benchmark (targets). ERP is a one-time up gradation of IT systems and advancement of IT strategy.

CONCLUSION ERP needs to be positioned as a strategic enabler. that cannot be the reason to assign a large role to this useful concept and tool. It is one of the tools (process based) which an organization would employ to enhance its competitiveness. process may play an important role and hence ERP. strategy first and then the enablers. . they are the ones who have proved that they can help change in an organization. Also. ERP is not the end of all that an organization can do. After all. But. All other things being equal. they would be preferred to initiate other change management activities within the organization as well as with business partners. In some situations of strategy.to be given other responsibility as change agents. It provides a platform to implement a competitive strategy on dimensions related to data integration. and interfacing functional systems. Surely. process redesign and up gradation.

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