Business information Systems Management pgp18Case QuestionsNITESH BHUWANIAPGP/18/036Sec-ACase: Making IT Happen at BCPL Kochi Refinery: Defining New Paradigms of Operational Excellence through IT TransformationQuestions: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 downstream supply chain.2. 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. 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 buildMitigating the risksImproper 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 risksImproper Training: Lot of employees and users reject the application due to its difficulty in usage. Working on SAP applications need exhaustive training in handling various steps Improper usage leads to inefficiencies Over 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 Impose compulsory knowledge transfer to internal employees post go liveUnwanted 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 risksInsufficient 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 functionalityOffshoring 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 locality5. 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. Advantages1) 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. 5) Lower cost of running the systems as legacy systems are retired simultaneously.6) Faster implementation timeline. Disadvantages1) 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. 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