Tesoro IT Environment
Tesoro IT Environment
mySAP BI
mySAP BW
mySAP SEM
mySAP Enterprise Portal
mySAP Knowledge Mgmt
mySAP Dimension
mySAP CRM
mySAP SCM
mySAP APO
mySAP SRM
mySAP E-Procurement
mySAP PLM
mySAP Netweaver
mySAP XI
mySAP MDM
mySAP DW
mySAP Basis
mySAP
Industry Solutions
IS Oil Downstream
IS - OIL PRA
IS Real Estate
IS OIL TSW
IS - Retail / SSCR
mySAP xApps
mySAP XEM
Business
Transformation
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People
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Design Principles
Te
ch
no
70 Processes
(Phase 1)
14 Current State
Themes
6 Macro
Processes
(Phase 1 and 2)
(Phase 3)
Scope of Phase 1
Current State Assessment
Macro-processes include:
Confirmed based on
bottoms-up view of future
state priorities
Presented to Leadership
Team
Included priorities of
Senior Management
Key Focus
of this
Presentation
Optimization
Origination to
Settlement (O2S)
Commercial
Excellence
Loss Control
Capital Budgeting
Services
Design Principles
People
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P ro
Te
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Business
Transformation
Deal
Capture
Back Office
Middle Office
Credit
Analysis
Bulk Sales
Analysis
Rack Sales
Analysis
Settlement
Schedule &
Manage
Inventory
Trading
Controls
Contract
Management
Movement
Actualization
Tax
Risk
Management
Master
Data
Inventory
Accounting
Transportation
Accounting
GL
Accounting
& Reporting
Operations
SAP AG 2005, Integrated Petroleum Supply Chain / Mark W Evans / 10
Services
Design Principles
Cross-functionally design
processes increase efficiency of
hand-offs between organizations
ss
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P ro
Te
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no
Business
Transformation
log
y
People
1.1
Develop
Demand
Forecast
2.1
Macro
Analysis
1.2
Develop
Production
Plans
2.2
Micro
Analysis
1.0
Supply Planning,
Company Position
2.0
Pre-Trade Analysis
3.1
Issue
Contracts
3.0
Deal Capture
6.0
Crude Option
Selection
10.0
Analysis
Results
4.0
Schedule Logistics
3.2
Manage
Commodity
Risk
5.0
Actualize
Movement
9.0
Settle
Transaction
7.0
Control
Loss
8.0
Manage
Demurrage
Plans
Actuals
Plans
Actuals
Company
Position
Risk Management
et
in
Plans
Actuals
Trad
ing
ling
edu
Sch
an
M
M
ar
k
Plans
Actuals
g
in
r
tu
c
a
uf
Reporting
Review & Analyze P&L
Complete Position
Reporting
Audit Reporting
Market Performance
Custom Reporting
Complex Risk
Management and
Modeling
Paper Mgmt
Paper Trade Ops
Paper Instrument
Mgmt (Futures,
Swaps, Options etc)
Hedging
Value at Risk
Paper Positions
Simulation
Scenarios
Positions What-Ifs
Risk Optimization
Analysis
Design Principles
ss
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P ro
Te
ch
no
Business
Transformation
log
y
People
Middle Office
Front Office
Analyze Results
Spreadsheets
Analyze Results
Spreadsheets
Analyze Results
SAP BW / SEM
Outlook
Form
Deal
Capture
Other
Accounts
Payable
Schedule
& Manage
Inventory
Actualize
Movement
Treasury
Spreadsheets
Billing
Inventory
Accounting
Transp
Accounting
3rd Party
Contract Administration
Master MAXIM,
Data
SAP R/3 & MDM,
Manual
SAP R/3
Cash
Applications
Credit &
Collections
Analyze Results
Spreadsheets
SpreadsheetsAnalyze Results
Trading
Management
3rd Party or Home
Grown
3rd
Deal
Party
Capture
Or
Home
Grown
Schedule
& Manage
Inventory
Back Office
Middle Office
Front Office
Analyze Results
SAP BW / SEM
Risk Management
Customized Integration
Accounts
Payable
Actualize
Movement
3rd Party
Treasury
Billing
Inventory
Accounting
Transp
Accounting
SAP R/3
Cash
Applications
3rd
Party
Contract Administration
Master
SAP R/3
&Data
Manual
Credit &
Collections
Trade Capture
Position Management
Expense Management
SAP Global
Trade Management
Operations,
Scheduling &
Execution
Nominations
Scheduling
Inventory Management
Financials
TRM
Reporting
GTM
RM
TSW
IS-Oil
mySAP ERP
SAP
GTM
Management
SAP
TRM
Complex Risk
Management and
Modeling
Analyze Results
Analyze Results
SAP
BW / SEM
Global Trade
Trading Management
Management
Deal
Capture
SAP
xEDeal
Schedule
& Manage
Inventory
Back Office
Middle Office
Analyze Results
SAPManagement
Treasury
Risk
&Risk Management
Accounts
Payable
Actualize
Movement
SAP
Traders &
Inventory
Transp
Accounting
Accounting
Schedulers Workbench
Contract Administration
Master
Data
SAP
MDM
Treasury
Billing
SAP R/3
Cash
Applications
Credit &
Collections
Heterogeneous
Homogeneous
Functionality
Implementation, Complexity,
Speed
Integration
Investment
Talent / Skills
Heterogeneous
Homogeneous
Upgrades / Patches
On-Going Maintenance
Process / Change
Management
Information Management
Heterogeneous
Homogeneous
Vendor Relationships
Vendor Strength
Market Responsiveness
Conclusion
A conceptual technology solution path was designed through a
collaborative effort between Tesoro and SAP
The proposed solution path features a homogenous architecture
approach based on the existing SAP platform
The solution will minimize the use of in-house developed and nonSAP applications and Tesoro or Integrator developed integration
interfaces
Potential Benefits to the homogenous approach
Exploits initial investment to support functional requirements
Reduces significantly the ongoing IT support costs.
Focuses on leveraging internal IT staff skills versus introduction of new
unknown technology solutions.
Next Steps
Tesoro recognizes the value of a homogeneous solution and is pursuing a
SAP based platform architecture to address the major technology
opportunities arising from the Project Rising Star.
To be successful, a feasibility study is in-process to determine the
functionality and availability of solutions to meet Tesoros business
requirements The study proposed to:
Assess potential technology options with a focus on the SAP platform.
Visit/work with SAP AG for education and exposure to the SAP integrated
petroleum supply chain platform
Validate through education, exposure and prototyping that proposed SAP
technology platform is a fit for the business. Identify gaps.
Develop FEL plans including appropriate cost benefit analysis.
Prototype solution alternatives to assess technical and functional feasibility.
Prioritize solutions and develop potential implementation plan.
Involve appropriate thought leaders in the business community through the
course of the study
Obtain approvals from Business Executives and PMO EPRC (Executive Project
Review Committee) to initiate the solution implementation
Mgmt Decision
FEL Project
FEL Preparation
BOD Presentation
1st Draft
FEL Preparation
2nd Draft
FEL
Final Version
Mgmt Approval
Stakeholder Education SV RFP Process
FEL Phase Change Management
JAN
FEB
MAR
APR
MAY
2005
JUN
JUL
AUG
Questions?
Integrated Petroleum Supply Chain
Mark W Evans
mevans@tesoropetroleum.com
(210) 283-2930