Group 7 OilCO and ExploreCO

OilCO and ExploreCO
Real World Case Two Short Cases:

Introduction
OilCo
Refiner and marketer of a broad

range of petroleum products.
ExploreCO
Oil and gas exploration and production

company.
Oil and gas exploration and production in
Philippines
 Video
CASE STUDY
OVERVIEW COMPANY
OilCO – 1st Company ExploreCO – 2nd Company
• Petroleum products • Oil and Gas exploration and

• Australia and 11 countries in production company.
Pacific. • Southwest Australia
• More than 2000 people • Affiliate of OilCO
• Owned assets valued at • Offshore exploration
approximately $2 billion • ExploreCO operational
• One of the world’s largest system
multinational oil company.
• 1,800 locations nationwide
ERP 1 - OilCo ERP
ERP 1
• New system was implemented to achieve
 Full process integration and automation
 Improve customer service
 Facilitate Plan restructuring*
• Mainframe-based ERP solution
• One of the largest and most complex mainframe implementation

in the world.
• 25,000 – 35,000 transactions / day
• 1,000 orders / day across the country

ERP 1 - OilCo ERP
ERP 1 – Implementation
• Matched ERP’s processing method

• Changes in business process is
necessary
• OilCO aimed to maximize the
integration benefits
• Development of an oil industry
specific modules
• Substantial business benefits
ERP 1 - OilCo ERP
ERP 1 – Results
BENEFITS
 Better sales forecast
 Fully automated ordering and delivery
processes
 Real-time financial data
 Improved data quality
 Streamlined business processes
* Over budget and Over time

ERP 2 - ExploreCO ERP
ERP 2 - Implementation
• Dissatisfies with the OilCO ERP
• Rework and upgrade or new system
• Despite of the advantages of having the
old system they choose a new one.
• Conducted a feasibility analysis of
several ERP systems
• Budgetary reasons and suited ERP
systems
ERP 2 - ExploreCO ERP
ERP 2 – Results
• Budget and project scope were
considerably more modest than
OilCO.
• Go Live with the system in 11

months.
 The implementation of new ERP which
is the ERP 2 , the old ERP must be align
with the new ERP.
 The implementation process was driven
by the OilCo’s head office.
Performed cost analysis
Set the scope
Made recommendations and
 Provided leadership on the steering
System goals were set via performance indicators.
Number of check runs in a given period

Measured reduction in off-system
payments
 Reduction in suppliers
PROJECT CHAMPION
Best people be released full time

for the project.
 Easiest implementation in the

perception of the project
manager.
Benefits of the ERP2 Implementation
1. Measured reduction in manual

processes, manual transactions, number
of suppliers, which has lead to improved
procurement and inventory systems.
2. Streamlined, real-time accounting
systems,
3. Reengineering of processes that
involved a devolution of responsibility
back into the hands of the operators; and
Dot Indicators
Number of dots Evaluation
Four dots (.... Major importance
)
Three dots Very important
(. ..)
Two dots Important
(...)
One dot (. ) Minor Importance
No dots Unimportant
Case Questions:
 1. Compare and contrast the implementation

of OilCo and ExploreCo.
 What were similarities? and
 What were differences between two
implementation?
OilCO vs. ExploreCO.
.
2. Why do you think the projects were
successful? Was it the articulation of CSFs?
Was it their strategy of minimal
customization? or something else? Explain.
2.
The projects were successful because of a well

defined plan made by the best people. The CSFs
and the minimal customization was considered in
plan in which both also contributes in the success
of the implementation. The CFSs contribute in
ensuring the project is well-focused while the
principle of minimal customizations by the
ExploreCO ensured that the project was well
advanced in the configuration and testing phase
before implementing full implementation.
3. What can we learn from this case? Also
provide suggestions for implementation.
Lesson from the case:
We can learn in the case the importance of planning
and importance of employing best people in the
organizations. A well-defined plan may lead
implementation to success. Also it is important to
consider a lot of aspects in planning stage, don’t focus
only on your needs like what OilCO did, allow
yourself to explore and find better and best options
before making a decision like what ExploreCO did.
ExploreCO didn’t look only for the advantage of
advancement of understanding the old system but they
took the risk of implementing something new because
Suggestion for Implementations:
Allow ExploreCO to lead the

implementation of the “Project
Champion”. Though ExploreCO
is only an affiliate of OilCo the
management in ExploreCO seems
to be much better than the
management in OilCO.
“ Good fortune is what happens
when
opportunity meets with planning”
- Thomas Edison

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OilCO and ExploreCO

Real World Case Two Short Cases:

Refiner and marketer of a broad

Oil and gas exploration and production

• Petroleum products • Oil and Gas exploration and

• Mainframe-based ERP solution

• One of the largest and most complex mainframe implementation

• 25,000 – 35,000 transactions / day

• 1,000 orders / day across the country

• Matched ERP’s processing method

* Over budget and Over time

• Go Live with the system in 11

Number of check runs in a given period

Best people be released full time

 Easiest implementation in the

1. Measured reduction in manual

 1. Compare and contrast the implementation

The projects were successful because of a well

Allow ExploreCO to lead the

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