Erp Implementation in Oil Industry
Acta Polytechnica Hungarica
Vol. 8, No. 4, 2011
ERP Project Implementation: Evidence from the Oil and Gas Sector
Alok Mishra, Deepti Mishra
Department of Computer Engineering, Atilim University Incek 06836, Ankara Turkey alok@atilim.edu.tr, deepti@atilim.edu.tr
Abstract. Enterprise Resource Planning (ERP) systems provide integration and optimization of various business processes, which can lead to improved planning and decision quality, and a smoother coordination between business units, resulting in higher efficiency and a quicker response time to customer demands and inquiries. This paper reports the challenges and opportunities and the outcome of an ERP implementation process in the Oil & Gas exploration sector. This study will facilitate the understanding of the transition, constraints, and implementation process of ERP in this sector and will also provide guidelines from lessons learned in this regard. Keywords: case study; ERP; implementation; oil and gas exploration; SAP
1
Introduction
ERP implementation poses major challenges to organizations, as many of them fail in their early stages or substantially exceed the project cost [1]. ERP systems differ qualitatively from prior large scale Information Technology (IT) implementations in three ways [2]: 1) ERP impacts the whole organization, 2) employees may be learning new business processes in addition to new software, and 3) ERP is often a business led initiative, rather than IT led. ERP is an integrated set of subsystems that integrates all facets of the business, including planning, manufacturing, logistics, sales and marketing. ERP systems originated to serve the information needs of manufacturing companies. Over time though, they have grown to serve other industries, including financial services, consumer goods sector, supply chain management and the human resources sector. These systems provide integration and optimization of various business processes and this was what the companies
Vol. 8, No. 4, 2011
ERP Project Implementation: Evidence from the Oil and Gas Sector
Alok Mishra, Deepti Mishra
Department of Computer Engineering, Atilim University Incek 06836, Ankara Turkey alok@atilim.edu.tr, deepti@atilim.edu.tr
Abstract. Enterprise Resource Planning (ERP) systems provide integration and optimization of various business processes, which can lead to improved planning and decision quality, and a smoother coordination between business units, resulting in higher efficiency and a quicker response time to customer demands and inquiries. This paper reports the challenges and opportunities and the outcome of an ERP implementation process in the Oil & Gas exploration sector. This study will facilitate the understanding of the transition, constraints, and implementation process of ERP in this sector and will also provide guidelines from lessons learned in this regard. Keywords: case study; ERP; implementation; oil and gas exploration; SAP
1
Introduction
ERP implementation poses major challenges to organizations, as many of them fail in their early stages or substantially exceed the project cost [1]. ERP systems differ qualitatively from prior large scale Information Technology (IT) implementations in three ways [2]: 1) ERP impacts the whole organization, 2) employees may be learning new business processes in addition to new software, and 3) ERP is often a business led initiative, rather than IT led. ERP is an integrated set of subsystems that integrates all facets of the business, including planning, manufacturing, logistics, sales and marketing. ERP systems originated to serve the information needs of manufacturing companies. Over time though, they have grown to serve other industries, including financial services, consumer goods sector, supply chain management and the human resources sector. These systems provide integration and optimization of various business processes and this was what the companies
References: Vol. 8, No. 4, 2011 [24]