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Home Case studies Energy and Utilities

Greenfield implementation of SAP IS Utilities in UK for global oil and gas company
 
 
The client
The client is the gas marketing division of a global oil and gas major and a leading supplier of energy products and services to the UK commercial and industrial markets.
 
The challenge
Due to the changes and regulations in the UK gas industry coupled with an increasingly competitive and complex business environment, there were new demands on the client from a customer information, business process, automation and standardized communication point of view. To meet these demands the client planned an initiative to improve the end-to-end process for selling and billing gas in the deregulated UK gas market. This initiative was to touch upon all critical business processes and functions including nominations, metering management, receipt of consumption data all the way through to billing customers and the subsequent recovery of money.
 
The solution

Wipro worked with the client right from the beginning in understanding its key business drivers and functional requirements. Based on the same Wipro architected a business solution based on SAP IS-Utilities/CCS to meet all the key functionalities and address the business challenges.

The solution also needed internal application integration and integration with external applications all of which were running on disparate platforms. As part of the overall solution, Wipro also proposed an enterprise architecture integration (EAI) layer for addressing this integration need. For external supplier system integration, the solution used a B2Bi product to bring in real-time integration. Additionally, the client’s customers were integrated with the solution using email and fax adapters. The solution also integrated with banks using the BACS interface.

In addition, Wipro implemented a strategic solution for the purchasing engine to support the client’s risk based gas purchasing. The solution also covered a quote and contract engine with a launch pad driven functionality for execution of new gas sites and an emergency interruption software to handle gas interruptions across the year and round the clock. User wise profitability was also determined through an engine that took cost inputs and sales revenue at a customer level. This solution was unique in the UK gas industry.

The Wipro team built about 300 interfaces, over 100 SAP enhancements and transformed over 125 legacy, paper and worksheet based processes into a clearly distinguishable set of SAP processes. All this was achieved in under 11 months.

 
The benefits
Due to the automation provided by the solution, the client could increase the number of customers manageable by each Customer Service Representative
The solution reduced the gas balancing charges and allowed service provider management and proactive management of the network charges thereby allowing the business to react to identified risk before incurring contractual penalties
30% of the total reduction in operational expenses targeted through this solution is expected to come from productivity improvements
The solution enabled improved controls over the whole meter to cash process, including automating key controls and providing reports. This helped minimize business loss, meet audit and industry requirements and ensure adherence to business strategy, policies and procedures
The robustness of the new system resulted in an increase in customer satisfaction by reducing inherent errors
The solution helped reduce the number of customer debtor days as more accurate and timely billing was facilitated by more efficient management of metering services

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