ERP implementation at Indraprastha Gas Limited (IGL)

Abhishek Shandilya 2011063 Abhishek Gautam 2011065 Sanil Pai 2011106 Rahul Garg 2011103 Thakur Keshav Singh 2011119

1 2

Name of the Project Name of the Client Client Size (Approx. number of employees)

Indraprastha Gas Limited Indraprastha Gas Limited

Name of the Solution provider

Tata Consultancy Services (TCS)

Clients address

Name : Mr. S K Behera Designation : Manager IT Postal address : GSPC Bhavan, Sector 9, RK Puram Contact phone : +91-011-46074607 Fax number +91-011-26184061 e-mail id : skbehera@igl.co.in

List of modules and submodules Implemented

Procurement (MM) Financials (FI) Controlling (CO) Human capital mgmt (HCM) Employee Self Service (ESS) Project Systems (PS) Maintenance Mgmt (PM) India Payroll Business Information Warehouse (BIW) Environment, Health and Safety (EHS)

5 6

Number of User licences Value of the Work Done (Rs in Crores)

135 for SAP R/3 + 270 for ESS Cannot be divulged

7 8

Date of award Date of completion

April 2005 August 2006

Introduction
Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India).

The project was started to lay the network for the distribution of natural gas in the National Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors. With the backing of strong promoters GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL) IGL plans to provide natural gas in the entire capital region.

The two main business objectives of the company are

To provide safe, convenient and reliable natural gas supply to its customers in the domestic and commercial sectors. To provide a cleaner, environment-friendly alternative as auto fuel to Delhis residents. This will considerably bring down the alarmingly high levels of pollution.

The transport sector uses natural gas as Compressed Natural Gas (CNG), the domestic and commercial sectors use it as Piped Natural Gas (PNG) and R-LNG is being supplied to industrial establishments. Future Outlook IGL continues to augment its infrastructure so as to meet the increasing demand of CNG arising out of growing number of CNG vehicles in Delhi. The growth drivers for increase in demand of CNG are - car manufacturers coming up with CNG variants and Delhi Governments directive making it mandatory for all LCVs operating in Delhi to run on CNG. The company is in the process of enhancing its compression capacity by adding new stations.

On the PNG front, IGL has planned to expand its business activities in Delhi and its neighboring towns like Noida, Greater Noida and Ghaziabad. Our customers will now be benefited with supply of PNG for non-cooking applications like Geysers also. IGL is also working towards expanding its PNG network to cover all charge areas of Delhi by 2012.

Industrial and commercial segments would be the focus areas for the organization in the future. LINE OF BUSINESSES CNG (COMPRESSED NATURAL GAS) CNG stands for compressed natural gas. It is gaseous fuel and is a mixture of hydrocarbons mainly Methane. For use in Automobiles as fuel, it is compressed to a pressure of 200-250 Kg/cm to enhance the vehicle on-board storage capacity. PNG (PIPED NATURAL GAS) PNG is mainly methane CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured from the oil / gas wells and transported through a network of pipelines across the country. Commercial & Industrial Natural gas is a versatile fuel which is gaining immense popularity for Industrial and commercial usage. Under the commercial sector all leading hotels, restaurants, malls, commercial complexes and hospitals in the NCT of Delhi are being supplied PNG by IGL. In the industrial sector, PNG is being used to run boilers, furnaces, ovens, hot water generators, and thermifluid heaters, gas turbines for power generation and Vapor Absorption Machines (VAM) for heating and cooling applications. Industries have saved on cost and storage space by using PNG and in turn pollution levels have also gone down. Industrial and commercial segments are expected to see a significant growth and would be the focus areas for the organization in the future. IGL aims to have over 1000 Industrial and commercial customers across NCT & NCR by 2014.

Package Implemented
The solution offered encompassed implementation of the mySAP ERP solution. The SAP Modules implemented constitute: Industry Solution Utilities FI-Contract Accounting Sales and Distribution Materials Management Quality Management Project Systems Plant Maintenance Customer Service Finance Controlling Human Resources

 India-Payroll BASIS ABAP End-to-end SAP implementation (mySAP R/3 ERP, mySAP HR etc.) including mySAP ISUtilities for contracts & Invoice and contract accounting Post implementation support for all the SAP and ancillary applications Solution delivery services Integration testing services for new releases and during roll outs Defect resolution services Organizational change management Identifying KPIs and work-out solutions to optimize them Packages/Initiatives under Implementation Process initiative for technology enhancement at primary data center along with upgradation of SAP (ERP System). An initiative has also been taken for advanced surveillance of CNG stations. GIS (Geographical Information System) Project which has been taken up for effective Asset Management, Network to Planning and Operations Management is in advance phase and is scheduled to be completed during the financial year 2012-13.

Applications (as part of SAP) Implemented Employee Self Service Employee Self Service (ESS) Applications allow employees to view benefits, update personal information, submit time cards, make vacation requests, and request travel expense reimbursement from their Web browsers. The ESS Applications free human resources staff to deal with more complex tasks, but do not require training and supporting employees on a specialized application. ESS is an effective means for providing real-time access and data maintenance capabilities to the source or owner of the data. It has the ability to offload much of the data entry and related customer service activities that may be typically performed in an organization's human resources, payroll, benefits and purchasing departments. Timesaving These departments are freed up from many of the routine, day-to-day processing functions.

Instead, resources can be assigned to activities that are more critical to your organization's success. Overall, service levels and efficiency increase and costs per transaction can be drastically reduced. The return on investment is significant.

No SAP Training Required With SAP ESS, employees can maintain their own data and can access their information without having SAP training or core SAP applications on their desktops. Because there's no "dummy database" or batch update, employees have access to the most up-to-date, accurate data on record. And, there are none of the out-of-sync situations that can occur with third party, "bolted on" ESS solutions. Inherently international Because SAP R/3 architecture is inherently international, with unsurpassed language and currency management capabilities, SAP ESS is also inherently international. It takes full advantage of SAP R/3 global capabilities, including country localization and all SAP supported language and currency management facilities. Accessible, up-to-date information Employees can access and change any of the following data and have it reflected immediately in the database: Personal Information

Review and update address, dependent information and emergency contacts. Change tax filing status, number of exemptions and withholding information. Add or update bank information for direct deposit and expense reimbursement.

New Hires

Establish new hire address, dependents, emergency contact, tax filing and banking information with ease.

Organization Directory

Look up employee information including name, contact data, office location, title, etc.

Paycheck Inquiry

Display and print pay stub information for each pay period, including gross pay, taxes, other deductions and net pay, with pay period and year-to-date totals. SAP Employee Self-Service provides you with:

Extensive functionality beyond basic human resources functionality, including travel management and purchasing. Inherent integration between SAP R/3 business applications, ESS and workflow. ESS functionality that leverages the strengths of the underlying SAP infrastructure. Unsurpassed global capabilities. A proven track record for continuous evolution and new functionality.

Business Benefits
SAP implementation at IGL had multi-pronged benefits. IGL was looking for a technology solution which could help them integrate all the business functions on a common platform. They also wanted a technology partner which could work alongside its complex business model. Their requirement was of a solution which could provide a solution which would cater to all the services along the value chain. SAP was implemented during FY 2005-06. SAP implementation helped them in optimizing their operations, improve return on their assets, identify and deliver new products, which subsequently has a long term effect on realizing their growth potential. The more tangible benefits attached with the project were as follows Automation of end-to-end business functionality for Piped Natural Gas and Compressed Natural Gas distribution business in the National Capital Region Meter Readings Consolidation and History and Centralised Pricing Management and Control for CNG Marketing New Service Connections Status reports at the level of Areas and Colonies for PNG Marketing Centralised Management and Control for Items and Vendors, Materials Reconciliation of Project Materials. Reduced cost of short cycle work processes e.g. Outages move in/out, turn on/off, new service requests etc. Meter Reading collections and Meter reading entry from CNG Stations and Customers in one PNG Area.

 Billings and Contract Accounting Inventory Tracking and Updating Breakdown maintenance, Preventive maintenance, Refurbishment and Calibration process. Tracking of multiple projects and materials reconciliation.

ERP implementation helped IGL in syncing its objectives with the quality of service it wanted to provide without compromising on the technology platform. A look at the figures below will tell us the architecture of the technology model they employed in the implementation and sustenance of their business model.

Business Process Model

Interface Framework

Salient features of Package

Phases of Deployment
PHASE 1: EXPLORE
TEAM MOBILIZATION TRAINING INFRASTRUCTURE PROJECT CHARTER DEFINITION ENTERPRISE VISIONING ENTERPRISE STRATEGIC VALIDATION PERFORMANCE DRIVERS FUTURE STATE DEFINITION BUSINESS CASE VALUE PROPOSITION FIT, GAP ANALYSIS AND GAP STRATEGY CORE PROCESS(ES) IMPROVEMENT IMPLEMENTATION PLANNING DEFINE DATA CONVERSION AND MIGRATION STRATEGY PREPARE PROJECT CHARTER

PHASE 2: ENGAGE
REFINED PROJECT CHARTER PROTOTYPE DEVELOPMENT CONFIGURE ERP BASED ON PROCESS PRIORITIZATION TRAINING OF CORE TEAM TESTING & QUALITY CHECKS PREPARATION FOR GOING LIVE DATA CONVERSION & MIGRATION GO LIVE

PHASE 3:ENABL

SKILLS TRANSFER MANAGEMENT COMMITMENT TO CHANGES IMPLEMENTATION MONITORING PERFORMANCE MEASUREMENT MECHANISM

Salient features of technology deployed- mySAP R3 ERP- SAP R3 uses the SAP Web application Server, which is based on open technology standards and connectivity protocols. It includes Core 4.7 with Extension set and provides comprehensive Internet enabled processing, portal integration and flexible upgrade strategies. They have a shorter upgrade cycle in future. All future enhancements are provided in smaller pre-packaged extension sets which can be added at user's convenience. In terms of cost benefits this doesn't require new license.

My SAP HRKey benefits that SAP HR brings to the client areInfotypes - Master data in SAP HR is held in infotypes. Since master data is the key data element on which users need to be restricted infotype restrictions become extremely important in the context of SAP HR. Structural Authorisations - In SAP HR the population that a user can access can be restricted using either the enterprise structure (Personnel Areas, Employee Groups, Company Codes, etc) or the organisational structure. Structural authorisations allow restrictions to be configured on the organisational structure. Personnel Number Restrictions - In SAP HR a special authorisation object (P_PERNR) allows users to be restricted to accessing infotypes for their own data only. This facilitates functionality such as Employee Self Service (ESS.) The P_PERNR authorisation can also be used to prevent administrators from maintaining their own data whilst still allowing them access to others.

mySAP ISU Invoice & Contract Accounting

This component creates FI-CA documents for : IS-U consumption billing External billing SD billing (sales, installation) Clears bill receivables with posting items, in particular with budget billing payments that have been made Creates and prints bills Supports reversal processes Manages the budget billing plans and provides functions for processing the budget billing amounts Supports the determination and levying of taxes, charges and duties - Contracting component is a subledger developed for industries with a large customer base and a correspondingly high volume of documents to post. This includes insurance companies, utilities, telecommunication, and public service companies.

ERP Contribution to Business benefitsBusiness Challenges Integration & streamlining of various business processes such as Marketing Finance Projects O &M Procurement HR

Change management and risk management A robust enterprise application backbone supporting the business of IGL Business Benefits for IGL

Organization Customization to maintain user status at installation level Variant program to maintain tariff structure for large commercial customer

Process For new connection marketing has been integrated with back office. One Standard format for management reporting output to optimize street route. Implemented workflow for ISU processes to suit the customer requirement. Facilitated End User Training Around 50 users trained Linking MS Word in Devnagri script for output.

Financials Flexible receivables management

Learning & Growth Facilitated End User Training Around 50 users trained

Value Proposition to the client Availability of Cross-Functional expertise Ability to access Utility Industry best practices Capability to leverage end-to-end IT consulting

Access to leading technology and subject matter expertise through our alliances Reduce technology risk profile Optimal combination of reduced cost, improved service delivery and quality

Learnings/Comments
Future trends of ERP @ IGL With the ERP applications evolving towards greater levels of flexibility, business experts at IGL increasingly play a more active role in defining the business processes, rules, organisational structures and performance metrics within the software. Already, IGL recognises that buying decisions and ownership responsibility for applications such as customer relationship management (CRM) and human resource management (HRM), and potentially enterprise resource planning (ERP), is shifting more to the business side of the house. ERP experts refers to this ownership shift as "IT to BT", and it represents a unique opportunity for business process professionals to help IT and business stakeholders leverage innovative technology to transform business processes and improve application flexibility and value.

Trend 1: Cloud deployment models IGL realizes that traditional on-premises applications have reached breaking point: software upgrades have become costly and difficult. Customisation further complicates the upgrade challenge, and supplier support deadlines and technical obsolescence, rather than business value, drive upgrade decisions. However, SaaS - and, more broadly, cloud computing - represents an alternative deployment model that is much more predictable. With SaaS adoption, IGL expect that application economics will change for itself and supplier alike.

Trend 2: Mobile technology to accelerate business processes Experts at IGL realize that Mobile technology - including devices, software, networks and product distribution channels - is evolving at breakneck pace. IGL believes that the potential of mobile applications to transform business processes hinges not only on the speed and convenience of mobility itself, but also on the unique capabilities of the devices to sense, respond to, deliver and capture information in real time. This application will help the officials at IGL respond to the ERP on the go and will ensure minimum time wastage.

Trend 3: Business process flexibility via embedded modelling tools Managers at IGL know that the enterprise application configuration and process management has historically been the domain of technical specialists within IT, prioritising and queuing the change requests coming from business stakeholders. The end result has been a low level of business flexibility, where processes often adapt to the limitations of the software or customisation layers are built onto the applications. Package configuration tooling that is flexible, graphical and model-based - no coding required - is evolving and will become a way to differentiate between packaged application suppliers. IGL along with TCS is working towards accomplishing this goal.