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Accelerate Value

GLOBAL BUSINESS
TRANSFORMATION FOR
OIL & GAS ORGANIZATIONS
Powerful, Flexible Solutions

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

HCL AXON DELIVERING BUSINESS TRANSFORMATION


TO THE OIL & GAS INDUSTRY
Radical swings in commodity prices are disrupting business
planning and operations for every business in the oil & gas
industry. Success requires the ability to respond quickly and
efficiently to these dynamic conditions. For example, upstream
companies are challenged by severe resource constraints
while struggling to increase production and replace proven
reserves. Meanwhile, downstream companies are facing
working capital and margin pressures.
Marginal improvements to current processes wont overcome
these challenges. Business transformation, delivered by
HCL AXON and enabled by SAP, creates the vital improvements
in efficiency and capability that are necessary to outperform
the competition in these challenging times.
Successful business transformation requires deep industry
knowledge, the application of lessons learned from previous
implementations, and innovative tools and approaches that
are proven to produce lasting change. HCL AXON resources
have unmatched experience driving oil & gas companies
SAP enabled business transformation programs. Additionally,
only HCL AXON offers the Rapid Deployment Toolkit (RDT),
our proprietary, SAP based solution specifically designed
to address the unique challenges in the oil & gas industry.
Combined with our cross industry asset and personnel
management solutions, iMRO and iCREW, HCL AXON is
uniquely capable of delivering the promised benefits of
business transformation.

HCL AXON consultants have


exceptional experience implementing
SAP solutions in the oil & gas industry

Only HCL AXON offers the Rapid Deployment Toolkit,


specifically designed to address the unique challenges
in the oil & gas industry

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

ABOUT HCL AXON


HCL AXON is a global pioneer in leveraging leading technologies to drive value realization. Our value
management approach accelerates the realization of benefits from your investments by aligning IT to
your clients required business outcomes. We provide the complete range of consulting, hosting and
Business Process Outsourcing (BPO) services, necessary to define, realize and sustain real business
change. Our unique delivery model integrates on-site business transformation consulting services with
near-shore and off-shore technical development and support capabilities, to ensure that our clients
receive the optimal solution at the right price point.

Accelerate Value

IT is all about certainty of outcomes

We recognize that different organizations require differing outcomes

Ultimately our engagements are driven by the need to deliver

from their ERP investment, and as such we provide different

certainty to our clients:

solutions to best address these needs:


On Value

Consulting Design, deployment and optimization of world-

On Time, To Budget

class business practices

Guaranteed Service Levels

Transformation Delivering fundamentally improved levels of

Committed Cost Reductions

operational performance through the implementation of world-

Realized, Cashable Benefits

class ERP platforms

Achieved Business Metric Improvements

Refresh Rapid implementation of pre-configured industry


specific business solutions based on world-class ERP platforms

HCL AXON regularly contracts to the delivery of specific outcomes

Re-platforming Migrating legacy solutions onto todays

whether it is a reduction in a call centers average call handling

leading technology platforms

time, guaranteed infrastructure management cost-reductions or a

Sustainment Complete heterogeneous systems applications

particular cost saving or performance improvement.

management capabilities from remote system monitoring


through to Information Technology Outsourcing (ITO)

Financially Stable and Respected

In all of these approaches, HCL AXON combines unrivalled

HCL AXON is a wholly owned subsidiary of HCL Technologies,

experience in deploying the worlds leading enterprise application

a $6 billion global technology leader with over 88,000 employees.

software with significant industry experience to ensure that our

HCL is not only financially robust; it is also globally recognized

programs deliver value for our customers, faster and more cost

for its revolutionary management practices which focus on trust,

effectively than any of our competitors.

integrity and the empowerment of our employees. This approach,


which we call Employee First, is the subject of one of the most
frequently taught Harvard Business School Case Studies.

True Global Delivery


HCL AXON operates as a single global organization allowing us
to deploy consulting teams which leverage proven industry and
solution best practices from our offices around the world. We fully
understand that successful implementation projects require both
on-site client engagement to drive process design and business
change while simultaneously leveraging the significant cost and
time zone benefits associated with cost effective off-shore and
near-shore, round-the-clock delivery centers. Our global delivery
model does not treat off-shore as an afterthought; we fully integrate
our off-shore capabilities into our implementation and application
management methodologies to ensure that the value of the
integrated on-shore/off-shore model is fully optimized.

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

HCL AXON ADDRESSING THE CHALLENGES...


Exploration and Production (E&P)
Because of the long term increase in demand for oil & gas, the industry
faces a shortage of qualified workers and operating assets and
equipment. At the same time, E&P companies need an integrated view of
leases and royalties payments, joint interest billings and revenues, and
well data to understand asset profitability so they can combat oilfield cost
inflation and make better operating decisions as reserves become harder
to find and exploit. HCL AXON provides the industry knowledge as well
as the expertise with SAP to help E&P companies meet these challenges
through practical yet innovative business solutions.

Oilfield Services (OFS)


and Drilling
Cycles of expansion and contraction often result in high levels of start
up, IPO and M&A activity for oilfield services companies. In peak times,
experienced personnel are scarce and inching closer to retirement each
year. Asset tracking and utilization is top of mind as managers struggle to
capture as much demand as possible. In down times, coping with excess
capacity and under utilized resources can make the difference between
mere survival and success. HCL AXON has made its mark working with
OFS companies to overcome these challenges and lay the groundwork
for long term success in any market condition.

Marine
Marine services companys operations can be optimized through
improved cash management, integrated invoicing and collections,
and improved reporting. Profitability can be tracked and maximized
by coupling crew rates, tows and boats. Whether in blue or brown
water, HCL AXONs experience in the industry ensures that marine
services companies achieve dramatically improved results. As supply
chain challenges ariseincreased fuel costs, weather and regulatory
delays, or assets going out of commissionthe flexibility of SAP and the
expertise of HCL AXON provide you the solutions you need to efficiently
re-route, re-quote, or re-assign the goods as needed.

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

FACING THE OIL & GAS INDUSTRY


Midstream
The variety of midstream assets, from pipelines and transport vessels,
to gas plants and compression stations, regularly present challenges
to midstream companies trying to manage and control these diverse
operations efficiently. Accounting, reporting and compliance requirements
must be tracked and any divergences accounted for. Many midstream
companies also face the challenge of integrating trading operations into
their accounting and supply systems. HCL AXON brings a unique blend of
experience ranging from transportation and linear asset management, to
fluency with a number of industry leading trading platforms, and to FERC
accounting for interstate pipelines. As such, we are uniquely qualified to
assist midstream companies with their business transformation efforts.

Refining and Manufacturing


Refineries present immense challenges due to their complex operations,
stringent asset and operations integrity requirements and compressed
operating margins. Maintenance, shutdowns, start ups and change
overs must be carefully planned, scheduled and executed with precise
coordination between employee and contract crews. HCL AXON offers
particular expertise with the iMRO for Oil & Gas solution as we are codevelopers with SAP and has particular insight into the future of this
unique and valuable extension of the SAP Maintenance, Repair and
Overhaul solution. iMRO represents HCL AXONs unique capabilities
for coupling deep industry knowledge, SAP expertise and our business
transformation methodology to provide unique SAP based solutions to
pressing industry problems.

Oil & Gas Secondary Distribution (OGSD)


Secondary distribution of oil & gas products demands visibility of all
aspects of operations in order to deliver maximum profitability. Diligent
planning is needed to ensure storage, transfer and transportation is
available and scheduled to meet customer demands. Processes must
integrate sales, scheduling, internal stock monitoring and planned/actual
volumes to keep a secondary distribution business operating smoothly.
HCL AXON leverages its deep process knowledge and SAP expertise
to provide tailored workbenches that allow our customers to efficiently
manage their operations and margins.

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

HCL AXON THE BUSINESS TRANSFORMATION EXPERTS


FOR OIL & GAS
HCL AXON consultants have exceptional experience implementing
SAP solutions in the oil & gas industry. We have provided solutions
for clients across the entire spectrum of the oil & gas industry and
in all major business theaters of the world. Our lean and nimble
consulting teams work with clients to deliver innovative business
solutions to companies looking to transform their business and
leverage the full potential of their SAP investments. Whats more,
we speak the language of our clients and can condition our fee on
successful delivery.
With such a significant breadth of industry experience and
implementation success, we have become the partner of choice for
companies seeking to deploy SAP based solutions in the oil & gas
industry. We have amassed a record of leading accomplishments
pertinent to oil & gas and OFS companies:

n HCL AXON is SAPs Business All-in-One partner for oil & gas

The HCL AXON oil & gas practice is the strongest dedicated

n An HCL AXON client was the subject of SAPs 1st Business

SAP implementation and support partner. Our reputation

Transformation Study (BTS) featuring an oilfield services

is built on proven expertise and a full understanding of the

company

business drivers in the major segments of the industry.

n An HCL AXON developed solution, Firecall, is one of the most


broadly distributed SAP based applications in one of the worlds
largest oil & gas companies
n HCL AXON is SAPs Business All-in-One partner for the
RapidHR preconfigured SAP HR solution
n HCL AXON performed the first SAP Mobile Asset Management
(MAM) implementation in North America
n HCL AXON is SAPs development partner for SAP iMRO
(maintenance, repair and overhaul)
n HCL AXON is a leader in Linear Asset Management
n HCL AXON performed the largest global implementation of SAP
Shift Planning.

The HCL AXON Oil & Gas practice is the strongest dedicated
SAP implementation and support partner

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

SOLUTIONS FOR THE OIL & GAS INDUSTRY


Maintenance, Repair and Overhaul

training, and retain and reward top performers. HCL AXONs


preconfigured RapidHR solution, developed from our experience

In tandem with SAP, HCL AXON developed iMRO, the industry

implementing HCM solutions at some of the worlds largest

leading solution for complex Maintenance, Repair and Overhaul

organizations, delivers the rapid transformation of the HR function

(MRO) operations. iMRO extends and enhances the SAP ERP

necessary for success. Additionally, the HCL AXON developed

application by providing enhanced user interfaces and customized

iCREW solution helps O&G companies with the administration,

processes specifically suited for the unique industry requirements

assignment, planning, deployment and payment of crews.

for plant maintenance, maintenance engineering, planning and


operations. With iMRO in place, MRO operations achieve optimal

Business Process Outsourcing

performance and profitability.

HCL AXON offers a full range of Business Process Outsourcing


(BPO) services. Many organizations in the Oil & Gas industry can

Corporate Portfolio Management

realize significant cost savings by outsourcing non-core functions


such as finance, accounting, MIS reporting, transaction processing,

SAP Resource and Portfolio Management (RPM) for Corporate

procurement services and order management.

Portfolio Management is ideally suited for the Capital Planning, AFE


Approvals, and Resource Management requirements of the oil &

Infrastructure Management Services

gas industry. The solution includes a proven platform for managing

HCL AXONs global delivery organization uses a collaborative,

all aspects of complex capital projects. With the addition of HCL

co-sourcing approach to provide both remote and on-site services

AXONs proprietary integration methodologies and extensive

for IT infrastructure management. We offer flexible engagement

industry experience, the benefits of a rapid implementation are

models based on each clients specific goals and requirements.

realized and project risks are minimized.

As a result, HCL AXON can deliver integrated Applications and


Infrastructure management service on demand.

Business Planning & Consolidation

Rapid Deployment Toolkit (RDT)

SAP Business Planning and Consolidation (BPC) is a key

A pioneer in the use of pre-configured solutions in the oil & gas

component of the SAP Business User suite of products and is the

industry, HCL AXON developed RDT for Oil & Gas by combining

industry leading solution for planning, budgeting, consolidation,

SAP best practices and a deep understanding of the industrys

reporting and analysis at all levels of the organization. HCL

business processes. RDT for Oil & Gas provides a flexible platform

AXONs resources have implemented SAP BPC for several of

to jump start a companys SAP implementation and integrate core

the worlds largest oil & gas enterprises as well as for hundreds

business and back-office functions. RDT provides out-of-the-box

of organizations in a variety of industries worldwide. Oil & Gas

SAP enabled business processes common to virtually all oil &

companies will particularly benefit from improvements to their

gas related businesses, but with the addition of enhanced user

Capital Expenditure Planning, Asset Optimization and Utilization

interfaces and extended industry segment specific functionality.

Planning, Production and Reserve Planning, M&A Planning,


Management and JV Reporting and Analysis.

RDT for Oil & Gas drives your SAP-based business transformation

Human Capital Management

effort to more rapidly yield significant business benefits and instill


lasting change and takes full advantage of HCL AXONs proprietary

SAP Human Capital Management (HCM) is the leading solution

and proven Design by DemoTM blueprinting approach. Equally

in the oil & gas industry for effective management of human

important, RDT provides the foundation to take advantage of all the

resources. Successful organizations need enhanced capabilities

other oil & gas industry solutions available from SAP whether you

to recruit, develop, deploy, and retain personnel. As the workforce

are implementing SAP for the first time or extending SAP to your

ages, keeping workers with specialized skills and qualifications will

remote operations and standalone business units.

be critical to operational excellence. With SAP HCM, mangers can


identify these resources, plan for succession, develop skills through

RDT for Oil & Gas drives your SAP-based business transformation effort
to more rapidly yield significant business benefits

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

TESTIMONIALS
We knew that it would be a daunting task for an IT
service provider to figure out our business and IT
requirements when we had employees who werent
even officially hired and were scattered across 21
countries.
HCL AXON wholeheartedly embraced the challenge
and exceeded our expectations, getting 11 countries
transacting business and 10 remote locations
communicating - all within our 90 day timeframe. They
were more like a partner rather than a vendor.
Jim Claunch
former Chief Financial Officer
PowerWell Services

Even though I had 10 years experience managing

Our transition to SAP is viewed as a strategic initiative

SAP projects, I was skeptical that we could make a

for GulfMark. We were immediately impressed with

90 day global project successful. What I learned is

HCL AXONs shared sense of urgency for our issues

that SAP can be implemented out of the box, without

and their desire to ensure success. By taking the

modification and grow with a start-up company as it

time to fully understand the pressures and drivers of

goes from making $70 million to making $300 million

GulfMarks marine business and using their Rapid

in two years.

Deployment Toolkit, they helped us to quickly identify


the most effective approach to business process

Sheree Fields
CIO of The Expro Group
(parent company of PowerWell Services)

automation.
Our team shared passionate discussions on approach
and implementation issues as the project progressed,
all with the same goal find the best solution for
our business. HCL AXON helped us to lay an SAP
foundation for GulfMarks future.
Carla Mashinski
Former Chief Accounting Officer
GulfMark Offshore

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

HCL AXON OIL & GAS CLIENTS


HCL AXON delivers SAP enabled business transformation for organizations of all
sizes and in all segments of the oil & gas industry.
Our implementation methodology has proven successful in driving significant
business benefits for organizations as diverse as specialized oilfield service
providers on up through the largest, fully integrated companies in the industry.
In every instance, HCL AXON tailors its approach to the unique challenges
and objectives of the organization and develops an approach based on driving
business benefits.

Exploration
& Production

OFS, Drilling
& Marine
Services

Midstream

Refining
& Chemicals

Distribution
& Retail

Integrated & National Oil Companies


BP Chevron ConocoPhillips ExxonMobil Petronas Qatar Petroleum Saudi Aramco Shell

Anardako

Abbot Group

Copano Energy

ASCO
Apache

Cameron

Enron

Noble Drilling
PowerWell
Services

BASF
ChevronPhillips

Expro International
GulfMark Offshore

Arch Chemicals

MidAmerican
Energy

Infineum
LyondellBassell

Solarc

Solvay America

BHPetrol
Heritage Propane
Sun Coast
Resources
Titan

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

CASE STUDY ConocoPhillips


The Client

Project Scope

ConocoPhillips is an integrated oil and gas company with over 30,000 employees working

The P2P Project is notable for its size and

in more than 30 countries to deliver energy to the world. By combining strategic capital
investments with industry leading business practices, ConocoPhillips ensures exceptional

complexity. The following facts and figures


demonstrate the challenge that

results in every aspect of its operations.

ConocoPhillips and HCL AXON overcame by

Project Objectives

business case:

exceeding the results projected in the

In 1998, as part of its drive to continuously improve operational efficiency, ConocoPhillips


implemented an integrated SAP procurement solution. Over time, numerous
improvements and efficiencies were introduced into their procurement functions.
However, after 2005, company leaders realized that there was a significant business case
for standardizing procurement processes and deploying those standard processes across
all business locations. In further support of this business case, the Project set a goal of
increasing the automation of the procurement cycle, thus reducing the amount of user
interaction with the system while at the same time ensuring that necessary controls were

Organizational Scope
The program covered the entire
ConocoPhillips enterprise and every physical
location worldwide. Over 15,000 SAP users
were impacted by the program. In addition,
a major acquisition was migrated onto
ConocoPhillips business processes and SAP

in place.

environment.

The P2P Project was initiated as a result of the business case developed around the

Software Scope

following four key principals:

ConocoPhillips runs a single instance of SAP

n Spend Capture & Spend Leverage

SAP and non-SAP programming objects were

for their Global Operations and just over 100


touched over the 3 phases of the program.

n Procurement Process Standardization & Automation


n Procurement Process Compliance & Measurement

Module Scope

n Procurement Process Governance

n Financials, controlling, and joint venture


accounting (JVA), plant maintenance,

All aspects of procurement processes needed to be addressed to fully enable automation,

drilling operations, well maintenance

spend leverage, standardized processes, and compliance across the procurement cycle.

and procurement
n Procurement, SRM, MDM, financials,
controlling, and joint venture accounting

These included:

(JVA), plant maintenance, drilling


operations, well maintenance

n Master Data: Materials, Contracts / OLAs, Prices, and Catalogs:


Rationalization

Standard definition and characterization of materials and catalog Items.

n Material and catalog search capability (driven by tools) to drive material/catalog item
selection during requisitioning:

Geographic Scope
The Procure-To-Pay (P2P) Project is a global
program impacting the following regions:

SAPs MDM tool was configured to store materials and catalogs and enable

n North America

efficient and effective item searches.

US (including Alaska)

n User Behaviors and System Interaction:

Canada

n Europe

How the system was used for procurement by the users

Did staff understand and follow standard processes

What additional training was required and what behaviors needed to change.

Germany

UK

Ireland

Austria

Based on these criteria, the fully developed business case for the P2P Project promised

n North Sea Operations

millions of dollars in recurring benefit to the business.

Norway

Scotland

n Asia Pacific

10

Indonesia

Australia

China

GLOBAL BUSINESS tRANSFORMATION FOR OIL & GAS ORGANIZATIONS

Key Challenges

Outcomes

Because of the broad nature of the P2P Project, both the Project team and the business

HCL AXON provided the following services

users had to maintain a high degree of discipline to obtain the benefits defined in the
business case. Examples of this discipline included:

during the over three year life of the Project:


n Integration Management and Project

n Enhanced stewardship of deliverables

Stewardship

n Detailed tracking of specifications (technical and functional)

n Global Solutions Deployment and

n Earned-value project tracking

Deployment Leadership

n Accountability for deliverables at all levels of the program.

n Standard Process Design


n Solutions Design and Build

An unprecedented mobilization of both consultant and client resources was required to


deploy the procurement standards to each business unit and to everyone who touched
the procurement process. HCL AXON led a majority of the deployment activities for the

n Solutions Architecture Design and Build


n Procurement Data Mining, Extraction,
and Analysis.

program both in North America and around the world.


The user enablement process also required a different approach to delivering benefits. In
order to deploy a solution that addressed user needs, a rigorous design phase included
the following:

As a result of the P2P Project,


ConocoPhillips is already exceeding the KPI
and LI targets that were set at the beginning
of the deployment phase. Specific benefits
realized include:

n Historical procurement data was analyzed


n Procurement data mining tools were defined and built
n Historical procurement data was analyzed for user tendencies that violated the

n Significant procurement spend reduction


through contract compliance and

standard processes

supplier

n Supplier data was analyzed to determine electronic supplier enablement opportunities

n Training plans were developed by the top procurement process users (especially for

n Improved financial planning and

requisitioning).

leverage
reporting

n Improved process efficiencies

The P2P project represents another


successful step in the long term
transformational relationship between
ConocoPhillips and HCL AXON

n Reduced inventory holdings


n Rapid integration of new businesses.
The P2P Project is a tremendous success
by every applicable measurement. In
particular, when measuring the Project
outcomes against the business case
predictions, the P2P Project substantially
exceeds expectations.

11

hclaxon@hcl.com

HCL AXON 2011 (All references to HCL AXON include former Axon)

Dec 2011/B/Ref 4302

HCL AXON is the best in the world at creating industry-specific,


end-to-end platform solutions that deliver business performance

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