ITSY/005

IBS Center for Management Research

ERP Implementation at BPCL

This case was written by K. Subhadra, under the direction of A. Mukund, IBS Center for Management Research. It was
compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either
effective or ineffective handling of a management situation.

 2002, IBS Center for Management Research. All rights reserved.

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 ITSY/005

ERP Implementation at BPCL

“It’s true that 9 out of 10 ERP implementations in India failed.”
- Girish Menon, Vice-President, Global Marketing and Planning, Ramco Systems, in
October 2001.

THE BPCL-ERP STORY

In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in the Indian
petroleum industry, successfully implemented an Enterprise Resource Planning (ERP).
Implementation began in April 2000 after the company decided to integrate all its activities
through the ERP package SAP R/31.
The company hoped to speed up its decision-making and respond faster to customer needs through
ERP. The intention was to show the differentiation in service, retain customers and help increase
the business of its Industrial & Commercial (I&C) customers 2. BPCL also wanted to increase its
retail thrust by exploiting IT initiatives to the maximum.
The noteworthy aspect was that the company was one of the very few Indian companies to have
successfully implemented ERP. With the successful implementation, BPCL customers could
access information and do business online, which enabled BPCL to increase its share of I&C
customers from 14.9% in 2000 to 15.8% in 2001. After the ERP implementation, BPCL’s revenues
grew by 2.28% in 2000-01, even as the revenues of the petroleum industry declined by 3.4%.

BACKGROUND NOTE

BPCL
In 1951, the Government of India entered into an agreement with UK-based Burmah Oil Company
and Shell Petroleum Co. (Burmah-Shell) for establishing an oil refinery in Bombay. In 1952, this
agreement led to the incorporation of Burmah Shell Oil Refineries Ltd. In January 1955, the
refinery at Bombay went on stream, and in 1962, the refinery started processing crude oil from
Ankleshwar in Gujarat.
In December 1975, following the passing of ‘The Burmah-Shell (Acquisition of Undertaking in
India) Bill,’ the Government of India signed an agreement with Burmah-Shell. Subsequently, the
government took over the operations of the company and changed its name to Bharat Refineries.
Initially, the company sold only kerosene, but later it set up service stations to sell petrol as well.
Bharat Refineries became the first Indian company to introduce LPG for domestic cooking
purposes. In January 1976, the government acquired 100% shares in the company, and in August,
1977, the company’s name was changed to Bharat Petroleum Corporation Ltd. (BPCL).

1
SAP R/3 is a popular ERP software from the Germany based company Systems Applications & Products
in data processing (SAP).
2
Industrial & Commercial customers consist of major industries and other commercial players who buy
industrial fuels like Naphtha and furnace oil. Huge quantities are involved in this segment and it is very
price sensitive.

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 ERP Implementation at BPCL

The economic reforms of 1991 paved the way for major changes in BPCL. The company entered
into marketing contracts with Indo-Burmah Petroleum (IBP), Madras Refineries Ltd. (MRL) and
Cochin Refineries Ltd. (CRL). In 1992, the government disinvested 30% of its stake in BPCL in
favor of financial institutions and mutual funds. The Rs3 10 share created a record on the bourses
when it opened at Rs 1,275, the highest ever opening among public sector companies. In 1993,
BPCL tied up with its erstwhile partner Shell, to form Bharat Shell Ltd. (BSL), in which the latter
had a 51% stake. In 1994, BSL launched lubricants under the Shell brand. These were marketed by
BPCL as well as by BSL. By the late 1990s, BPCL had emerged as India’s second largest oil
company in terms of marketshare. In April 1994, 3.8% of BPCL’s equity was disinvested in favor
of its employees.
In 1998-99, the government decided to further disinvest 26% of its stake in BPCL, which was one
of the ‘Navratnas’.4 This move gave BPCL greater freedom to develop employee policies. It also
enabled the company to take decisions regarding capital project expenditures without government
interference. In 1999, BPCL acquired 32% stake in Indo British Petroleum (IBP).
BPCL’s Mumbai refinery consistently operated at over 120% of its 6.9 million metric tonnes per
annum (mtpa) installed capacity. It had the ability to process a wide variety of crude, and its
proximity to the Bombay High oil field enabled it to meet most of its crude demand domestically
(only 15% was imported). To make up for its limited refining capacity, BPCL formed a strategic
alliance with Chennai Petroleum Corp (which was later taken over by IOC) to sell the products
produced in the latter’s 6.5 m mtpa Manali refinery. The government also transferred its entire
shareholding in Kochi Refineries (KRL) (capacity 7.5 mtpa) to BPCL. BPCL also acquired IBP’s
19% stake in Numaligarh Refineries (NRL) (capacity 3 mtpa) in West Bengal. These acquisitions,
and the 9 mtpa refinery being set up at Bina in Madhya Pradesh, were expected to address the
limited refining capacity problem in the future.
By mid-2001, BPCL’s nationwide retail network comprised 4,500 outlets, 60% of which were
company-owned or leased – the highest percentage among oil PSUs. Retail sales accounted for
around 60% of the company’s sales volume, with average sales per outlet being 223 kl per month.
In 1999-00, BPCL’s marketshare was 32% in petrol and 27% in diesel. The company was
particularly strong in the west and south. However, its share in lubricants, the most profitable
product, was relatively low, partly because of its dependence on other oil companies for the base
oil needed to make lubricants.
BPCL planned to increased its emphasis on retail business and increase its non-fuel revenues, by
leveraging on the strength of its retail network by providing value-added services like convenience
stores, automated teller machines (ATMs) and internet kiosks. The company realized the
importance of IT initiatives to retain its market position in the post-APM era.5 BPCL began to
implement its IT initiatives in 1996. As part of the organizational restructuring exercise, the
company was revamped into six Strategic Business Units (SBUs) – Retail, Aviation, Lubricants,
Liquefied Petroleum Gas (LPG), Industrial & Commercial (I&C), and Refinery. These SBUs were
integrated with support entities like Information Systems, Finance, Human Resources, Strategy
and Brand Management. This restructuring was designed to help the organization focus on specific
customer segments and address their individual needs. The company also realized that it needed to
streamline its processes and integrate the organization as a whole. It is when the company decided
to implement ERP.

3
In September 2002, Rs 48 equaled 1 US $.
4
Public sector companies that were deemed to have competitive advantage and the potential to become
global giants. These included BPCL, MTNL, IPCL, IOC, BHEL, SAIL, VSNL, GAIL, and MMTC.
5
Administered Pricing Mechanism was introduced in 1976 for petro-products and supplanted the role of
the market through command and control. APM compensated producers, refiners and marketers for
operating costs and gave them an assured return on their assets. With the abolition of APM, private
players were allowed to enter the oil sector.

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 ERP Implementation at BPCL

ERP
ERP is software driven business management system that helps to integrate all functions of a
business including planning, manufacturing, sales, and marketing. The history of ERP has its roots
in the inventory control systems developed in the 1960s to manage inventory according to
traditional inventory concepts. Over the next few decades, as businesses became increasingly
complex and global, companies came under pressure to improve their competitiveness by lowering
operating costs and improving logistics. ERP aimed at helping the management for setting better
business practices and equipping them with correct information for taking timely decisions.
In the 1970s, the concept of Material Requirement Planning (MRP) emerged, which focussed
mainly on raw material requirement planning. In the 1980s, the concept of MRP-II (Manufacturing
Resource Planning) evolved. MRP-II involved optimizing the production process of the entire
plant. Though MRP-II evolved as an extension of MRP for shop floor and distribution
management activities, it was gradually extended to areas like Finance, HR, Engineering and
Project Management etc. This eventually gave way to ERP that covered cross-functional
coordination and integration to support the production process.
ERP initially targeted the manufacturing industry and dealt with functions such as planning and
managing businesses like sales management, production management, accounting and finance.
Later, these packages diversified into many different types of industries. The main modules in a
typical ERP application were finance and accounting, customer order management, MRP,
materials management and decision support/data warehousing.
In the pre-ERP era, companies were largely confined to local markets and all managerial functions
were managed by a single set of people. However, as businesses became global companies’
activities grew beyond local boundaries and more people were brought in to manage the
businesses. While the departments within the companies grew, they also set up their own
procedures and hierarchy. Within departments, information moved upward. Due to the upward
movement of information, it was shared between departments at the top level only. ERP thus aided
in effectively managing the resources of the organization.
The ERP market was widely spread with the top 10 players accounting for almost 48% of the total
market, the rest of the market was occupied by small and regional players. The ERP market
witnessed substantial growth during 1998-2000 worldwide, driven mainly by the Y2K issue6. ERP
companies like SAP, PeopleSoft, Oracle, JD Edward and Baan recorded a steady growth in their
revenues. However, after 2000, there was a slowdown in the ERP market. By 2001 the global ERP
market was valued at $ 23 billion. SAP was the market leader with a 20% market share, followed
by Oracle with 7.5% marketshare.
In India, the need for ERP implementation was felt soon after the liberalization of the economy in the
early 1990s. Indian companies realized the importance of customer focus, improving speed of delivery
and cost competitiveness to compete with MNCs. It became increasingly important to provide
improved quality at lower prices. The decision to implement ERP systems for improving business
processes and gain the competitive edge in the new global environment thus had become essential.
Manufacturing firms were the earliest to implement ERP, followed by FMCG, automotive, steel,
oil, textile and pharma companies. The most popular modules were Finance and Accounting, Sales
and Distribution, Material Management/Purchase and HR. Companies such as TISCO, TELCO,
Nestle, Reliance, Godrej, Larsen & Toubro, HLL, Maruti, BPCL, IOCL, ONGC, Coke, Pepsi,
ITC, Colgate-Palmolive, P&G, Shopper’s Stop and M&M were some of the major companies that
decided to implement ERP. The ERP market grew substantially with a CAGR of 70% during the
late 1990s (Refer Table I), because of the large extent by a large number of medium and small
scale enterprises adopting ERP.

6
Y2K problem referred to three main issues: two digit date storage and date conversion, leap year
calculations and special meanings for dates.

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 ERP Implementation at BPCL

Table I
The Indian ERP Market
(in Rs million)
Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02*
Mrkt Size 270 620 1340 2500 4600 6500
* estimates
Source: Express Computer India, October 2001.
However, a majority of ERP implementation exercises in India proved to be failures. There were
reports of small scale companies even being driven to bankruptcy. Analysts attributed the failure to
poor understanding, planning and implementation of the system, and not to the inherent problem in
the software. A research analyst at Frost & Sullivan said, “Most CIOs we spoke to said that ERP
packages cost the earth, take ages to implement and at the end of the day deliver nothing.”
According to a Gartner study7 in 2001, it was found that the average cost overrun in Indian ERP
implementations was 178%, the average implementation time overrun was 230% of original
expectations and the average decline in productivity was 59%.
BPCL’s successfull implementation of ERP thus came as a major relief to ERP vendors and
industry watchers. However, analysts commented that BPCL had not implemented ERP as a stand-
alone system, but had integrated with the overall IT initiatives, which it had initiated in 1996 after
the restructuring.

IT INTIATIVES AT BPCL

BPCL divided its IT initiatives into a three-pronged strategy, wherein it planned to create a
communication network within the organization; to create a basic information network for the
entire corporation and to process transactions with customers all over the country. The strategy
was devised after the company divided the organization into six SBUs and conducted a detailed
evaluation of the company as a whole. The organization was restructured to help focus on specific
customer segments and address their individual needs. For this, BPCL needed a system for speedy
and effective communication. The company’s senior management realized that unless the
procedures were streamlined and communication improved, faster decision-making would be very
difficult. The communication structure was seen as hampering the integration of its activities. The
problem areas included high costs of traditional communications, quick access to executives, and
the need to communicate with recipients over multiple locations.
To improve communication systems within the organization, BPCL decided to establish an
intranet8. The company chose Microsoft Exchange Server as the platform, because of the level of
integration with the desktop environment and MS Windows NT Server.
BPCL conducted feasibility testing of the solution with the help of a pilot implementation. With
the help of Windows NT Server and Exchange Server, BPCL connected three locations on a Very
Small Aperture Terminal (VSAT)-based network9 with a bandwidth of 64 kilobytes per second

7
Gartner is a research and advisory firm providing research services to its clients in the field of technology.
8
An intranet is a private network that is contained within an enterprise. It may consist of many interlinked
local area networks and also use leased lines in the Wide Area Network. Typically, an intranet includes
connections through one or more gateway computers to the Internet. The main purpose of an intranet is to
share company information and computing resources among employees. An intranet can also be used to
facilitate working in groups and for teleconferences.
9
VSAT is an earthbound station used in satellite communications of data, voice and video signals,
excluding broadcast television. It consists of two parts, a transceiver that is placed outdoors in direct line

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 ERP Implementation at BPCL

(Kbps) to share Time Division Multiplexing/Time Division Multiple Access (TDM/TDMA)10

connections. The VSAT network was rated on the criteria of ease of deployment, speed of mail
delivery, zero message loss and response times. For a comprehensive implementation of the
intranet, BPCL took help from Microsoft Consulting Services.
BPCL connected its corporate office in Mumbai with the various regional offices. Seven web
servers11 were deployed at the VSAT hub in Bangalore to provided intranet connectivity to users
all over the country. Access was provided with the latest local and international developments
through the intranet. This not only helped the company offer better services, but also aided in
building employee skills and competencies. Internet gateways12 were made available at the
refinery as well as at all the regional offices. All the employees were thus constantly connected to
each other and to the outside world.
BPCL also implemented various applications to facilitate information retrieval from corporate
databases, including intranet applications that allowed employees to access and update personnel
records such as contact details and salary information on the intranet itself. It also introduced
‘Query by Mail’ (QBM) by way of which remote users could extract business transactions from
corporate databases. This system helped conserve the WAN bandwidth and schedule database
queries at night. Communication costs reduced drastically because of the communication
infrastructure. According to reports, in 1999, savings on long-distance landline communications
were less by 30% as compared to costs in 1998.
The ERP implementation was part of the company’s ‘Project CUSEC (Customer Service and
Satisfaction), which had to meet the challenge of an imbalance between refining and marketing.
The company selected SAP R/3 as it was already being successfully used by major oil companies
in the world. It was also the only package which had an oil industry specific package and an India
specific package.
BPCL appointed consultants Coopers and Lybrand13 for the planning process of SAP R/3's
implementation. The consultants worked in close co-ordination with functional experts within the
company. The first phase of the implementation began in April 2000. The company’s existing
network was redesigned and restructured and all its branches were linked to a central connectivity
cloud.14 This was done through routers15 and switches, 16 which were in turn connected to servers
and workstations (Refer Table II).

of sight to the satellite and a device that is placed indoors to interface the transceiver with the end user’s
communications device, such as a PC. The transceiver receives or sends a signal to a satellite transponder
in the sky and the satellite sends and receives signals from a ground station computer that acts as a hub
for the system. For one end user to communicate with another, each transmission has to first go to the
hub station, which retransmits it via the satellite to the other end user's VSAT.
10
TDM/TDMA is a proprietary protocol, which operates within a point to multipoint environment and
adapts dynamically to traffic conditions on a computer network. This protocol assigns more user time to
those computers having higher traffic in order to optimize the response time. The entire process is
performed automatically and does not require operator intervention.
11
A web server is a central location or computer that enables a remote ‘Client’ (system or program) to
access the page or site content.
12
Software that can interpret and translate different protocols from two different networks.
13
Merged with consultants Price Waterhouse in 2000.
14
A cloud refers to a public or semi-public space on the transmission lines between the end points of a
transmission.
15
Router is a device that connects any number of local area networks. Routers use headers and forwarding
table to determine where packets (packet is a piece of a message transmitted over a packet-switching
network and it contains the destination address in addition to the data) go, and they use Internet Control
Message Protocol (ICMP supports packets containing error, control and informational message) to
communicate with each other and configure the best route between any two hosts.

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 ERP Implementation at BPCL

Table II
System Components used by BPCL

Location Mumbai Bangalore Juhu*

Routers CISCO 7200 CISCO 3600 CISCO 2610

Switches CISCO 1924 CISCO 1924 A3 COM 3500

* Juhu is connected to ISDN cloud.

Source: IBS Center for Management Research

BPCL realized that security would determine success of online business. BPCL ensured security
through Sun Ultra 5 firewalls17, Real Secure, Internet Scanner, Floodgate, Web Trend and Web
Sense. Web servers were installed at Bangalore and other metros with Compaq Proliant 1600
servers. Tests to modify and customize the SAP modules were carried on the quality assurance
server (QAS). New developments and customization were made on the Development Server and
then moved to the QAS for quality tests. (Refer Table III).
Table III
The Server Architecture

Sap Servers Class Mhz Memory

Servers
Production SAP Oracle database Server HP N 440 MHz – CPUs 4 GB
Serv.
Database failover Server HP N 6 CPUs 4 GB
Quality Assurance Server HP L 2 CPUs 2 GB
Development Server HP L 2 CPUs 2 GB
Storage Server - HP Surestore E Disk Array XP 256 with - 2 TB hard disk 6 GB cache memory
HR Servers – HR production server, HR QAS and HR Development Server, which had the
same configuration as Production Servers
Source: IBS Center for Management Research
The server architecture included a Compaq Proliant NT server, an SCO box, a Sun Firewall
and other servers. The Cisco 2610 routers at each location led to a Cisco 1900 family switch
for distribution. BPCL had also setup a data warehouse with business objects and query-by-
mail. The company also implemented a Tivoli ESM (Enterprise System Management) 18
solution. By November 2001, BPCL became the first Indian company in the oil industry to
have implemented ERP. According to analysts, BPCL managed to complete the ERP
implementation much ahead of its arch rivals IOC and HPCL, mainly because of its efforts to
streamline its IT initiatives.

16
A device that filters and forwards packets between local area network segments.
17
Firewall is a system used to prevent unauthorized access to or from a private network. They are
frequently used to prevent unauthorized Internet users from accessing private networks connected to
Internets, specially the intranet.
18
ESM provides clients with comprehensive service and software solutions for all enterprise management needs.

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 ERP Implementation at BPCL

REAPING THE BENEFITS OF ERP

SAP R/3 helped BPCL to successfully launch its e-biz initiatives, the first of which was to allow
I&C customers to track the status of their orders online. This not only allowed the company to
retain existing customers, but also helped in attracting new customers. According to company
sources, BPCL’s biggest advantage from the ERP implementation was regarding the management
of inventory. Before ERP implementation, the company’s practice of monthly inventory reviews
frequently led to time lag in processing orders. However, after ERP, this problem was eradicated.
It was now possible for the company to know the details of receivable of inventories, which in turn
made cash management also easier. The company expected the ERP to achieve a payback by 2003.
The introduction of the Petrocard in 1999-00 tested the coordination between the various
departments to the fullest. The Petrocard was a 4K-microprocessor smart card19, which was used at
retail outlets across the country. By March 2001, around 2.5 lakh customers were using Petrocard
with over 20,000 daily transactions taking place at BPCL’s retail outlets throughout the country.
Petrocard’s success put all doubts about BPCL’s ERP implementation to rest. After this, BPCL
also introduced a Fleet card for transport companies, which made it easier for them to track the
position of their inventory. The company also integrated the manufacturing execution system of its
refinery with the system.
Encouraged by the success of Petrocard and Fleet card, BPCL planned to introduce an online
payment system, to be used to make credit card payments. Ashok Sinha, Finance Director of
BPCL said, “The basic idea is to translate operations which have been so far considered B2B20,
into B2C21.” The system will be integrated at depots with the help of SAP. We plan more retail
disbursements through SAP once RBI’s payment disbursement norms are passed.” Before the
successful implementation of SAP R/3 at BPCL, the ERP market had been proclaimed dead by
many analysts because of the number of failures of ERP implementation exercises. Experts hailed
implementation as the revival of the ERP market in India (Refer Exhibit IV).

QUESTIONS FOR DISCUSSION:

1. Explain the reasons behind BPCL’s decision to implement the SAP R/3 ERP solution against
the backdrop of the company’s IT initiatives that began in 1996.
2. Examine the ERP implementation exercise at BPCL and comment on the infrastructure
utilized for the same. Also analyze the benefits reaped by the company as a result of the
exercise.
3. Analyze the pre-requisites for a successful ERP implementation? Also comment on the future
of the ERP market in India, keeping in mind the global slowdown in the IT industry in 2001.

19
A smart card is a small electronic device about the size of a credit card that contains electronic memory.
20
A business model where transactions and interactions are primarily conducted from one business to
another using electronic means to conduct business, which organization generally set up through a
contractual agreement. Transactions are conducted through web authorization and control (WAC) for
delivery of confidential information, order processing and tracking and other internal processes available
for each partner.
21
A business model where electronic transactions and interactions are conducted from a business to its
consumer. This commerce may include formal and informal relationships.

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 ERP Implementation at BPCL

Exhibit I
Sap R/3's Application Modules*
Module Name Description Key Elements
Financial Designed for automated management General Ledger, Accounts Payable,
accounting and reporting for GL, A/R, A/P, and Accounts Receivable, Treasury,
other sub-ledger accounts with a user Special-purpose ledger, legal
defined chart of accounts. consolidation, accounting
information system.
Controlling Represents the company's flow of Cost/profit center accounting, Jobs
cost and revenue, and is a order accounting, Project accounting,
management instrument for Product costing analysis, activity
organizational decision. based costing, Profitability analysis.
Asset Designed to manage and supervise Plant maintenance (repair, schedule),
Management individual aspects of fixed assets. Inventory control, Traditional asset
accounting (depreciation),
Investment management.
Project system Supports the planning, control, and Funds and resource management,
monitoring of long-term, highly quality control, Time management,
complex products with defined goals, Project management.
accelerates work and data flows.
Workflow Links SAP R/3 modules with cross-
application technologies, tools and
services to automate business
processes.
Industry Combines SAP R/3 modules with Segments: Consumer packaged
Solutions additional industry specific goods, Utilities &
functionality telecommunications, Healthcare,
Process industries, Oil & gas
Human Supports the planning and control of Payroll accounting, Travel expense
Resources personnel activities. accounting , Benefits, Recruitment,
Workforce planning, Training
administration, HR information
system.
Plant Supports the planning, processing, Processing of unplanned tasks,
maintenance and completion of plant maintenance Service management, Maintenance
tasks, track maintenance costs, and planning, Maintenance bill of
makes maintenance decisions materials, Plant management
information system.
Quality Supports quality planning and Quality inspection, quality planning,
management control of manufacturing and quality management system.
procurement.
Production Supports planning and control of Bill of materials, work centers, Sales
planning manufacturing activities. and operations planning, Master
production scheduling, Material
requirements planning, Shop floor
control, Product costing, Kanban.

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 ERP Implementation at BPCL

Module Name Description Key Elements

Material Supports the procurement and Purchasing, Inventory management,
management inventory functions in daily Reorder point processing, Invoice
operation. verification, Material valuation,
External services management.
Sales & Helps optimize all tasks and Pre-sales support, Inquiry processing,
Distribution activities carried out in sales, Quotations, Sales order processing,
delivery and billing. Delivery processing billing.

* The list is not exhaustive.

Source: IBS Center for Management Research

Exhibit II
The Indian ERP Story
In late 2000, when dotcoms were going great guns, it seemed as if ERP products were losing
out to e-business and e-commerce solutions. However, the ERP market bounced back to life,
when many big industrial houses announced successful implementation of ERP. The Indian
ERP market received boost when SAP announced its plans to invest $125 million in Indian
operations. JD Edward’s followed suit and announced plans to set up a 100% subsidiary in
India by early 2002 to enter the Indian market. With the emergence of Small and Medium
Enterprises (SMEs) as major ERP spender with demand for module specific implementation,
market was expected to make a turnaround. Meanwhile, larger ERP firms shifted their focus to
the middle market with areas like Supply Chain Management (SCM), Customer Relationship
Management (CRM), extended ERP and web enabled ERP gaining customer attention.
According to analysts, the growth of e-business boosted the ERP market and corporates no
longer wanted a simple ERP solution. They were looking for an ERP solution that incorporated
e-business elements such as CRM and SCM. The Indian ERP market witnessed a paradigm shift
with more and more companies opting for second generation ERP II solutions, which include
SCM and CRM. Analysts opined that ERP II would emerge as central to e-business and as long
as there is a compulsion for firms to become e-enabled, it would grow robustly.
Though direct vendors dominated the ERP market, the emergence of ERP consultants in the
role of third-party providers, who implement vendor solutions at client sites and provide
maintenance and implementation services boosted the market further. The total cost of
ownership of an ERP dropped significantly with vendors offering country specific localization,
besides large pool of skilled functional and technical talent available. Analysts felt that though
large organizations were aware of ERP and ready to adopt it, the SME segment would fuel
growth in the future. It was observed that awareness about the concept of ERP increased with
the employee size of an organization - it was highest in the services segment, and among large
organizations, the awareness level about ERP was the highest in the IT/Software segment.
Experts also said that the future of ERP would be more collaborative in nature. Companies will
have to give up some of the independence with which they pursued information technology
solutions, in order to achieve benefits of collaboration.
Source: IBS Center for Management Research

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 ERP Implementation at BPCL

Exhibit III
Ratio of SMEs to Large Organizations Adopting ERP
Year 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
Ratio 1.3 3.5 4.5 5.4 6.3
Source: IDC (India) Limited, 2000.

Exhibit IV
Comparison between ERP & ERP II
ERP ERPII
ROLE Integrated info islands within firms Collaborative commerce
DOMAIN Manufacturing & distribution All sectors
FUNCTION Sales, distribution finance process Cross-industry & industry specific
PROCESS Internal & hidden More open; externally connected
ARCHITECTURE Closed & monolithic Web-based
DATA Internally generated and consumed Shared externally.
Source: Businessworld, November 5, 2001.

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 ERP Implementation at BPCL

Additional Readings & References:

1. Petersen Scot, What’s behind ERP Blues?, August 8, 2000, eWeek.

2. Software companies see gold in ERP, December 14, 2000, Capital markets.
3. SME segment to fuel growth of ERP in India, December 15, 2000, Zdnetindia.com
4. Gupta Soutiman Das, ERP: How IT helped BPCL streamline processes, February 21,
2001, Networking computing
5. Bonerjee Angshuman, 10 Commandments of ERP implementation, March 26, 2001,
Zdnetindia.com
6. Chaudhary Archana, The Oil Flows Smoothly, March 26, 2001, Business Line’s E-World
7. ERP is back with Bang, October 8, 2001,Express Computer India.
8. Singh Shelley, Rebirth of ERP, November 5, 2001, Business World
9. Sarkar, Redefining Service, November 19, 2001, Business World.
10. www.indiainfoline.com
11. www.microsoft.com
12. www.mysap.com
13. www.moneypore.com
14. www.bpcl.com

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