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SAP Business Transformation Study | Oil and Gas | Baker Hughes




Baker Hughes: Achieving Huge Cost
Savings, ROI, and Value by Automating
Testing with SAP® Software
Baker Hughes, a leading oilfield services company, built a testing center of
excellence (TCoE) to expedite and automate the testing of applications and
improve quality and performance while reducing cost. Using testing solutions from
SAP the TCoE has helped the company go live with multiple applications at
    ,
significantly reduced cost and risk.
SAP Business Transformation Study | Oil and Gas | Baker Hughes




                         Executive overview
Company                  Business Transformation                                                                                    Top Benefits Achieved
Baker Hughes

                                                                                                                                    25%
                         The company’s top objectives
Headquarters             •• Provide a positive user experience globally, independent of location
Houston, Texas           •• Ensure functional commitments of the application have been delivered
                         •• Continuously improve quality and productivity while cutting time to market                              Costs saved by
Industry                                                                                                                            resolving failures early
Oil and gas              The resolution


                                                                                                                                    35%
                         •• Established testing center of excellence in IT and strategic partnerships for
Products and Services       delivery of testing services
Oilfield services        •• Implemented standardized testing processes, tools, and artifacts;
                            established metrics and a continuous improvement program to prevent                                     Less time required
Employees                   quality escapes                                                                                         to plan and create
57,100                   •• Focused on high reuse and complex testing scenarios, taking a collaborative                             test cases
                            approach to involve all stakeholders including customers
Revenue
US$19.8 billion

Web Site
                         The key benefits
                         •• Improved quality and reduced costs caused by poor quality
                         •• Improved productivity and reduced cycle time
                                                                                                                                    60%
www.bakerhughes.com      •• Improved on-time delivery record
                                                                                                                                    Shorter testing
                         •• Produced a superior user experience                                                                     cycle time

                         Read more                                                                                                  See more metrics


                        “Analyst studies have proved that defects are orders-of-magnitude
                         cheaper to fix if caught early in the application lifecycle rather than late –
                         a big reason why the TCoE is saving us so much money.”
                         Faisal Asif, Director, Project Management Office, Testing Center of Excellence, Baker Hughes



                                                                                                        2
SAP Business Transformation Study | Oil and Gas | Baker Hughes




Executive overview
                          Making testing more effective while
Company objectives        saving time and costs
Resolution                Baker Hughes is a global oilfield service company                    performance-testing capabilities; therefore, an
                          that provides advanced products and services                         application might run well in one part of the world
                          to help customers find, evaluate, drill, produce,                    but poorly in another, which IT generally learned
Business transformation   transport, and process hydrocarbon resources.                        after the fact. Users demanded a better experience
                                                                                               and ever more solutions. Compliance required that
                          Baker Hughes has run its business with SAP®                          thorough testing be done before changing systems.
Future plans              software for more than a decade. It continually
                          introduces enhancements and new applications                         With enormous projects looming, including an
                          from SAP and others. For testing software prior                      upgrade to the SAP ERP application and the
                          to deployment, it used to rely on developers and                     conversion of a new acquisition, the BJ Services
                          business-process owners. Testing was entirely                        Company, from Oracle to SAP software, Baker
                          manual with little structure or guidance.                            Hughes knew that testing would be critical to
                                                                                               success. Therefore, it resolved to shore up its testing
                          The company has many enterprise systems                              infrastructure and methodologies by creating a
                          connected by hundreds of interfaces. The extreme                     testing center of excellence (TCoE) to centralize,
                          number of changes made thorough testing                              automate, and standardize its testing processes.
                          practically impossible, resulting in postproduction
                          defects. There were no defect-storage or



                                                    “Our vision for the TCoE was to enhance the user experience via superior
                                                     testing. Every defect the TCoE finds is one fewer to impact our users,
                                                     who spend less time testing and more time producing.”
                                                     Faisal Asif, Director, Project Management Office, Testing Center of Excellence, Baker Hughes




                                                                                           3
SAP Business Transformation Study | Oil and Gas | Baker Hughes




Executive overview
                          Building the TCoE around the strongest
Company objectives        tools on the market
Resolution                For TCoE software, Baker Hughes chose the SAP               people can run more than 2,000 scripts against
                          Quality Center application by HP for functional             SAP software in less than a week, while it used to
                          testing, the SAP LoadRunner application by HP for           be a fraction of scripts run by many people during a
Business transformation   performance testing, and the SAP Test Acceleration          much longer period.”
                          and Optimization application for scripts. “Seeing the
                          tight integration with SAP ERP we made our choice
                                                            ,                         A governance model with a dedicated manager
Future plans              quickly,” says Faisal Asif, director of the Project         was created for cross-department adoption. In an
                          Management Office for the TCoE. The firm also               onshore/offshore model, Baker Hughes’ strategic
                          chose Quick Test Professional from HP for powerful          partner Infosys develops testing scenarios,
                          testing of non-SAP software.                                automation, performance testing, and metrics
                                                                                      reporting and provides a TCoE workforce that varies
                          ”SAP Test Acceleration and Optimization delivers            with project load.
                          1,200 standard testing scenarios that cut our
                          development time by 80% to 90%. We developed                The TCoE engages early in a project’s lifecycle
                          reusable test scripts for business-process                  and continues throughout. It does not replace unit
                          scenarios; automated the most-used, highest-risk            or integration testing. It offers objective testing,
                          scripts; and instituted standard testing processes          minimizing the time for user acceptance testing
                          to catch defects before they entered the later              and delivering a potentially defect-free production
                          stages,” Asif continues. “SAP LoadRunner lets us run        deployment.
                          load- and performance-testing scenarios from 15
                          locations worldwide. When we were readying one set
                          of new applications globally, it revealed bottlenecks
                          where response time would have been over 30
                          seconds in some cases. We helped developers cut
                          that up to four seconds globally. Today, one to three



                                                                                  4
SAP Business Transformation Study | Oil and Gas | Baker Hughes




Executive overview
                          Delivering success after success
Company objectives


Resolution                The TCoE also uses the SAP Quality Center                    completeness, ease test case review, speed up
                          application for other systems, including Baker               troubleshooting, and save time for business users.
                          Hughes’ custom applications. It has performed 647
Business transformation   projects, executed 18,865 test cases, and identified         Through test script reusability, test automation,
                          4,545 defects in 40 applications in the first two and        and the use of offshore resources, Baker Hughes
                          a half years of use, while meeting every deadline.           is accomplishing far more with far less than
Future plans              Via test-case reuse and automation, it cut the cost          ever before. “We saw a complete return on our
                          of instilling quality into applications so much that         investment during the SAP ERP upgrade alone,”
                          testing today costs 90% less than in pre-TCoE                says Asif, “and that was just the beginning. These
                          days. The TCoE has also developed many tools to              solutions now allow us to efficiently run over 2,000
                          enhance planning and execution productivity. These           scripts on SAP applications with one to three staff
                          tools facilitate test case reuse, increase defect data       members within a week.”

                          Key benefits


                          100%                                 45%                                       30%
                          On-time delivery                     Reduced regression                        Shortened user
                                                               testing effort                            acceptance testing cycle



                          80%                                  90%                                       35%
                          Improved transaction                 Reduced overall                           Saved costs by reusing
                          response time                        testing costs                             existing test scripts

                                                                                   5
Baker Hughes




                        Executive overview
                                                               Streamlining the de-
                        Company objectives                     livery of SAP HANA®
                        Resolution
                                                               and much more
                                                               Baker Hughes was an early adopter of the SAP
                        Business transformation                HANA® platform, which is about to be deployed
                                                               for real-time financial analysis and reporting. The
                                                               company is also transitioning to a single global
                        Future plans                           instance of SAP ERP while moving more than 50
                                                               enterprise applications to a consolidated computing
                                                               environment, and rolling out SAP applications to
                                                               operations of the former BJ Services Company in
                                                               more than 65 countries. “The rate of change in our
                                                               IT landscape is unprecedented,” Asif concludes.
                                                               “In the past, with our limited resources, we would
                                                               have been anxious about the quality of all these
                                                               applications when they enter production, but our
                                                               success record with the TCoE gives us confidence
                                                               that the transitions will be smooth.”

                                                               Baker Hughes is also upgrading to the latest version
                                                               of SAP Test Acceleration and Optimization in
                                                               order to integrate with the SAP Solution Manager
                                                               application management solution.
CMP15871 (12/05)




                                                                                                                      6

                   Copyright/Trademark | Privacy | Impressum

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Baker hughes business transformation study

  • 1. SAP Business Transformation Study | Oil and Gas | Baker Hughes Baker Hughes: Achieving Huge Cost Savings, ROI, and Value by Automating Testing with SAP® Software Baker Hughes, a leading oilfield services company, built a testing center of excellence (TCoE) to expedite and automate the testing of applications and improve quality and performance while reducing cost. Using testing solutions from SAP the TCoE has helped the company go live with multiple applications at , significantly reduced cost and risk.
  • 2. SAP Business Transformation Study | Oil and Gas | Baker Hughes Executive overview Company Business Transformation Top Benefits Achieved Baker Hughes 25% The company’s top objectives Headquarters •• Provide a positive user experience globally, independent of location Houston, Texas •• Ensure functional commitments of the application have been delivered •• Continuously improve quality and productivity while cutting time to market Costs saved by Industry resolving failures early Oil and gas The resolution 35% •• Established testing center of excellence in IT and strategic partnerships for Products and Services delivery of testing services Oilfield services •• Implemented standardized testing processes, tools, and artifacts; established metrics and a continuous improvement program to prevent Less time required Employees quality escapes to plan and create 57,100 •• Focused on high reuse and complex testing scenarios, taking a collaborative test cases approach to involve all stakeholders including customers Revenue US$19.8 billion Web Site The key benefits •• Improved quality and reduced costs caused by poor quality •• Improved productivity and reduced cycle time 60% www.bakerhughes.com •• Improved on-time delivery record Shorter testing •• Produced a superior user experience cycle time Read more See more metrics “Analyst studies have proved that defects are orders-of-magnitude cheaper to fix if caught early in the application lifecycle rather than late – a big reason why the TCoE is saving us so much money.” Faisal Asif, Director, Project Management Office, Testing Center of Excellence, Baker Hughes 2
  • 3. SAP Business Transformation Study | Oil and Gas | Baker Hughes Executive overview Making testing more effective while Company objectives saving time and costs Resolution Baker Hughes is a global oilfield service company performance-testing capabilities; therefore, an that provides advanced products and services application might run well in one part of the world to help customers find, evaluate, drill, produce, but poorly in another, which IT generally learned Business transformation transport, and process hydrocarbon resources. after the fact. Users demanded a better experience and ever more solutions. Compliance required that Baker Hughes has run its business with SAP® thorough testing be done before changing systems. Future plans software for more than a decade. It continually introduces enhancements and new applications With enormous projects looming, including an from SAP and others. For testing software prior upgrade to the SAP ERP application and the to deployment, it used to rely on developers and conversion of a new acquisition, the BJ Services business-process owners. Testing was entirely Company, from Oracle to SAP software, Baker manual with little structure or guidance. Hughes knew that testing would be critical to success. Therefore, it resolved to shore up its testing The company has many enterprise systems infrastructure and methodologies by creating a connected by hundreds of interfaces. The extreme testing center of excellence (TCoE) to centralize, number of changes made thorough testing automate, and standardize its testing processes. practically impossible, resulting in postproduction defects. There were no defect-storage or “Our vision for the TCoE was to enhance the user experience via superior testing. Every defect the TCoE finds is one fewer to impact our users, who spend less time testing and more time producing.” Faisal Asif, Director, Project Management Office, Testing Center of Excellence, Baker Hughes 3
  • 4. SAP Business Transformation Study | Oil and Gas | Baker Hughes Executive overview Building the TCoE around the strongest Company objectives tools on the market Resolution For TCoE software, Baker Hughes chose the SAP people can run more than 2,000 scripts against Quality Center application by HP for functional SAP software in less than a week, while it used to testing, the SAP LoadRunner application by HP for be a fraction of scripts run by many people during a Business transformation performance testing, and the SAP Test Acceleration much longer period.” and Optimization application for scripts. “Seeing the tight integration with SAP ERP we made our choice , A governance model with a dedicated manager Future plans quickly,” says Faisal Asif, director of the Project was created for cross-department adoption. In an Management Office for the TCoE. The firm also onshore/offshore model, Baker Hughes’ strategic chose Quick Test Professional from HP for powerful partner Infosys develops testing scenarios, testing of non-SAP software. automation, performance testing, and metrics reporting and provides a TCoE workforce that varies ”SAP Test Acceleration and Optimization delivers with project load. 1,200 standard testing scenarios that cut our development time by 80% to 90%. We developed The TCoE engages early in a project’s lifecycle reusable test scripts for business-process and continues throughout. It does not replace unit scenarios; automated the most-used, highest-risk or integration testing. It offers objective testing, scripts; and instituted standard testing processes minimizing the time for user acceptance testing to catch defects before they entered the later and delivering a potentially defect-free production stages,” Asif continues. “SAP LoadRunner lets us run deployment. load- and performance-testing scenarios from 15 locations worldwide. When we were readying one set of new applications globally, it revealed bottlenecks where response time would have been over 30 seconds in some cases. We helped developers cut that up to four seconds globally. Today, one to three 4
  • 5. SAP Business Transformation Study | Oil and Gas | Baker Hughes Executive overview Delivering success after success Company objectives Resolution The TCoE also uses the SAP Quality Center completeness, ease test case review, speed up application for other systems, including Baker troubleshooting, and save time for business users. Hughes’ custom applications. It has performed 647 Business transformation projects, executed 18,865 test cases, and identified Through test script reusability, test automation, 4,545 defects in 40 applications in the first two and and the use of offshore resources, Baker Hughes a half years of use, while meeting every deadline. is accomplishing far more with far less than Future plans Via test-case reuse and automation, it cut the cost ever before. “We saw a complete return on our of instilling quality into applications so much that investment during the SAP ERP upgrade alone,” testing today costs 90% less than in pre-TCoE says Asif, “and that was just the beginning. These days. The TCoE has also developed many tools to solutions now allow us to efficiently run over 2,000 enhance planning and execution productivity. These scripts on SAP applications with one to three staff tools facilitate test case reuse, increase defect data members within a week.” Key benefits 100% 45% 30% On-time delivery Reduced regression Shortened user testing effort acceptance testing cycle 80% 90% 35% Improved transaction Reduced overall Saved costs by reusing response time testing costs existing test scripts 5
  • 6. Baker Hughes Executive overview Streamlining the de- Company objectives livery of SAP HANA® Resolution and much more Baker Hughes was an early adopter of the SAP Business transformation HANA® platform, which is about to be deployed for real-time financial analysis and reporting. The company is also transitioning to a single global Future plans instance of SAP ERP while moving more than 50 enterprise applications to a consolidated computing environment, and rolling out SAP applications to operations of the former BJ Services Company in more than 65 countries. “The rate of change in our IT landscape is unprecedented,” Asif concludes. “In the past, with our limited resources, we would have been anxious about the quality of all these applications when they enter production, but our success record with the TCoE gives us confidence that the transitions will be smooth.” Baker Hughes is also upgrading to the latest version of SAP Test Acceleration and Optimization in order to integrate with the SAP Solution Manager application management solution. CMP15871 (12/05) 6 Copyright/Trademark | Privacy | Impressum