This proposal suggests implementing an ERP system for HPCL to help integrate and streamline its business processes. HPCL is a major Indian oil and gas company with strengths in refining and marketing but also faces issues like product differentiation challenges, fluctuating oil prices, and reducing incomes. An ERP system like SAP could help address these issues by facilitating information flow across HPCL's business functions and managing connections to stakeholders, potentially providing benefits such as improved productivity, lower costs, faster decisions, and more strategic planning. However, implementing an ERP would also require costs and adapting the company's requirements to the vendor's processes.

1. BUSINESS
PROPOSAL FOR
HPCL
Group
Vivek Srivastava
Meethu Mohan
Kalyan Prasad
Prabhu P
Reema G

2. 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

3. SWOT
 STRENGTH
 1.India's major oil and gas company
2.Operates largest Lube refiniery in India
3.Large product portfolio
4.Owns and operates the largest Lube Refinery in
India producing Lube Base Oils of international
standards
5.Produces over 300+ grades of Lubes,
Specialities and Greases

4.  Weakness
1.Legal issues
2.Employee management
3.Human right issues, rehabilitation issues
4.Environmental hazards from wastes
 OPPORTUNITY
1.Increasing natural gas market
2.More oil well discoveries
3.Expand export market

5.  Threats
 1.Government regulations
2.High Competition from other players
 Competitors
1.Bharat Petroleum
2.IOCL
3.Reliance Industries
4.ONGC

6. ISSUE IN HPCL
 Difficultproduct 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

7. SAP :COMPANY PROFILE
SAP (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.
8

9. HOW IT WORKS....

10. WHAT IS AN ERP
Packages
Enterprise 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”.

11. TYPICAL PROPOSED ARCHITECTURAL
COMPONENTS
Interaction Web Mobile Call Center
e-Mail
Channels Internet Wireless ICM/Telephony
Analytical Marketing Sales Customer Call Center
Applicatio Intelligence Intelligence Intelligence Intelligence
ns
Business Marketing Sales eCommerce OSS HR
Applicatio
ns
Installed Base Resources Territories Assignment Engine
CRM
Foundatio
E- Tasks Notes Calendar 1-to-1 Fulfillment
n
Business TCA Escalations Interaction History niversal Work Q
U
Foundati
on Common Data and Object Models, Security, Interfaces, Globalisation
Tech Stack E-business Platform

12. COST ANALYSIS

13. 1-13

14. 1-14

15. COST BENEFIT ANALYSIS

16. BENEFITS OF ERP
Tangible 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