IBM and SAP AG on Tuesday announced that Shell has reached a milestone in its downstream business IT infrastructure by having successfully delivered one of the largest single SAP upgrade implementations in the world. The upgrade covers operations in 35 countries and four global businesses and Shell business service centers. This will impact over 29,000 users across these countries.
Shell’s “Downstream One” programme aims to simplify and standardise its downstream business processes, covering their global operations in manufacturing, marketing and sales of oil products for domestic, industrial and transport use.
Simplified business models, standardised processes, roles and responsibilities were implemented prior to the global implementation of SAP solutions across all countries in a phased manner. Now Shell’s downstream staff can access the same system, with common data, common processes and a uniform basis for reporting.
SAP Consulting’s Business Transformation Services group provided an upgrade value assessment to identify areas of improvement based on their knowledge of new functionality and SAP solution roadmaps. Shell will be switching to the IBM’s Power 7 Series (P780) servers for IT efficiency and delivery of greater computing power. Improved functional capabilities, which are highly integrated and cost effective, will enable Shell businesses to work faster and more effectively. Furthermore, new functions allow for future business growth and expansion into areas that have the potential to deliver competitive edge, including mobile enablement through mobile apps and interactive self-service portals.
Gerhard Oswald, member of the Executive Board of SAP AG. “Our success was only achievable through the great teamwork among Shell, IBM and our own experts utilizing the ‘Near Zero Down Time’ approach to ensure that total business downtime criteria of 48 hours was achieved.”
The programme delivery contract is part of a 10-year multi-phase project for the transformation of Shell’s downstream business begun in 2004. IBM will continue to work with Shell on the global rollout of the Downstream One Global SAP programme. Australia’s and U.S. fuels business are the final major markets that will receive the upgrade which concludes in 2014. SAP Consulting has played a key role in providing knowledge and value together with visibility of latest solutions and roadmaps.