BUSINESS PROPOSAL FOR HPCLGroup

Vivek Srivastava

Meethu Mohan

Kalyan Prasad

Prabhu P

Reema G

ABOUT HPCL

Hindustan Petroleum Corporation Limited (HPCL), whose roots go back to 1952, is today operational in the oil refinery and LPG distribution space.

A Fortune 500 company, HPCL recorded an annual turnover of over Rs 91,448 crores for the financial year ended March 2007.

Currently, the company enjoys a 16 percent refining and marketing share in India and a strong market infrastructure.

2 Refinaries : 3 Million Metric Tonnes per annum 80 regional Offices, 20 terminals, 120 Depots,

8900 retail outlets

SWOT

STRENGTH 1.India's major oil and gas company 

2.Operates largest Lube refiniery in India 3.Large product portfolio4.Owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards5.Produces over 300+ grades of Lubes, Specialities and Greases

Weakness 1.Legal issues 

2.Employee management3.Human right issues, rehabilitation issues4.Environmental hazards from wastes

OPPORTUNITY 1.Increasing natural gas market 2.More oil well discoveries 3.Expand export market

Threats 1.Government regulations 

2.High Competition from other players Competitors 1.Bharat Petroleum 

2.IOCL 3.Reliance Industries 4.ONGC

ISSUE IN HPCL

Difficult product differentiation Increasing consumption of petroleum products @

4% per year Fluctuating crude oil market involving geo-politics Improper pricing mechanism Reducing income constraining further investments Increasing competition from private as well as

other PSUs Inefficiencies in retailing outlets leading to loss of

customer satisfaction

SAP :COMPANY PROFILESAP (System Applications & Products in data processing) . SAP is the world's leading provider of business software, SAP delivers products and services that help accelerate business innovation for their customers. Today, more than 82,000 customers in more than 120 countries run SAP applications – from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations.

SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, and supplier relationship management

8

ENTERPRISE RESOURCE PLANNING (ERP)

ERP is an integrated computer-based system

Used to manage internal and external resources including tangible assets, financial resources, materials, and human resources.

It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

HOW IT WORKS....

WHAT IS AN ERP

PackagesEnterprise systems are not developed in-house IS life cycle is different

1. Mapping organizational requirements to the processes and terminology employed by the vendor and

2. Making informed choices about the parameter setting. Organizations that purchase enterprise systems enter into long-

term relationships with vendors.

WE vendors talk to many different businesses within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be “industry best practices”.

TYPICAL PROPOSED ARCHITECTURAL COMPONENTS

E-business PlatformTech Stack

CRMFoundati

on

WebInternet

Mobile Wireless e-Mail Call Center

ICM/TelephonyInteractionChannels

Common Data and Object Models, Security, Interfaces, Globalisation

E-

Business Foundati

on

Marketing Sales eCommerceBusiness Applicati

ons

MarketingIntelligence

SalesIntelligence

CustomerIntelligence

Call CenterIntelligence

Analytical

Applications

Interaction HistoryUniversal Work Q

1-to-1 Fulfillment

Assignment Engine

EscalationsTCA

Installed Base

Tasks Notes

Resources

Calendar

Territories

OSS HR

COST ANALYSIS

1-13

1-14

COST BENEFIT ANALYSIS

BENEFITS OF ERPTangible benefits

Improves the productivity of process and personnel

Lowering the cost of products and services purchased

Paper and postage cost reductions

Inventory reduction

Lead time reduction

Reduced stock obsolescence

Faster product / service look-up and ordering saving time and money

Intangible benefits:

Increases organizational transparency and responsibility

Accurate and faster access to data for timely decisions

Can reach more vendors, producing more competitive bids ;

Improved customer response

Saves enormous time and effort in data entry ;

More controls thereby lowering the risk of mis-utilization of resources

Facilitates strategic planning

Uniform reporting according to global standards