Bharat Petroleum Corporation Ltd*

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Introduction

The BPCL case presents an ERP (Enterprise Resource Planning) 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. This diagnosis is organized in two segments: 3/29/12

ERP IMPLEMENTATION STAGES

It is now well known that an ERP implementation is designed in several inter-connected stages like: Need for ERP (based on the current business practices, changed or changing environment conditions, and the proposed business strategy). Evaluation of organizations preparedness (issues related to data 3/29/12 availability and consistency, process

BPCL Experience
The BPCL experience is similar to these well known implementation procedures. There are no major surprises or uniqueness associated with the BPCL implementation plan. Some noteworthy features are: Top management involvement and guidance. Financial 3/29/12 analysis). evaluation (cost-benefit

ERP-RELATED ISSUES

The ERP implementation (as described in the case) in BPCL raises some important managerial issues, which we discuss briefly below, to identify a positioning for ERP.

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Cost-Benefit Evaluation

Often, the implementation organization does a cost benefit analysis of ERP and generates a solution approach based on economic considerations (typically an investment analysis orientation). There are several shortcomings (possible) related to this approach.
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ERP implementation would provide opportunity to increase productivity at all managerial levels in the organization. This is primarily due to easy availability of relevant data, consistency on data elements, and improved process (connecting various departments) integration.
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Productivity (Improved) and Manpower Rationalization

Managers and executives would now

Organizational Flexibility
It is widely believed that organizational flexibility may be reduced because of ERP, which is not a true. An organizations flexibility is a way by which the competitiveness of the organization is managed as a consequence of external environment, intensity of competition, and expected trends in the market place.
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ERP is only enabling the appropriate

Benchmarking, Module Mix, and Interfaces

These are desirable features. Benchmarking should be done to understand the potential gap in performance. Benchmarking is useful to initiate redesigned processes. Often, the best benchmark may not be realizable given the environment in which the firm operates. In any case, the redesigned processes would improve the performance (by an order 3/29/12

ERP and BPR Interlinkages

There is a close relationship between BPR and ERP. Organizations usually have two broad options: Conduct a BPR project, select an ERP, and customize it for the proposed BPR. Adopt an ERP, customize the current processes to the ERP process, and hence achieve a moderate BPR.
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Approach 1 is very attractive and has

Creativity and Process Discipline Trade-off

ERP, once implemented, would require data integrity and process discipline. Often, this is considered as a restriction. This is not true. Process discipline is neither in conflict with creativity nor is it a substitute for it. The creativity would be reflected in the redesigned process before customizing ERP. Also, there are several opportunities in the organization to 3/29/12

In-house ERP Consultants

True consultants who played an important role in implementation would find a natural settlement. The best would become in-house maintenance and enhancement consultants. They may even leave the organization for a similar position. The rest need to be given other responsibility as change agents. After 3/29/12 all, they are the ones who have proved

CONCLUSION
ERP needs to be positioned as a strategic enabler. It provides a platform to implement a competitive strategy on dimensions related to data integration, process redesign and up gradation, and interfacing functional systems. Also, ERP is not the end of all that an organization can do. It is one of the tools (process based) which an 3/29/12