Accenture Plant and Automation Solutions Accenture helps Saipem implement an integrated business information system on its journey to high performance Client profile A subsidiary of Italian energy company Eni, Saipem is a complete oil and gas service provider specializing in engineering, procurement, installation and construction (EPIC/EPC) turnkey projects. Headquartered in Italy, the company has operations in over 100 countries, annual revenues of over $14 billion and employs some 38,000 people. Saipem is organized into three global business units: offshore, onshore and drilling and differentiates itself in the market by its superior services and particular focus on the toughest and most technologically challenging projects with activities in remote areas, deepwater and heavy oils. Business challenge Energy companies are under increasing pressure to gain access to new resources and to extract more from existing ones—and to do so with ever-greater operational reliability and efficiency. While a multitude of technologies are available to maximize recovery of new and existing assets, some players are not succeeding in executing their technologies to the fullest extent possible, finding it difficult to take advantage of new approaches and solutions to improve key business areas. Those organizations that differentiate themselves by optimizing new and existing assets will be those that will be well positioned to achieve high performance. Since the late 1990s, Saipem has executed an extensive change initiative called Integrated Business Information System, or IBIS. By redesigning processes, procedures and applications at the group level, the goal of this initiative was to improve integration between company functions, well as increase the operational efficiency of EPC projects. Specifically, the challenges to be overcome in the capital project business included: •The increasing complexity of projects (large size, extreme conditions). •Low margins and fluctuating supplier prices. •The short time frames imposed by client/business (time-driven projects with overlap among EPC phases). •The organization of projects with unique combinations of operating companies and partners. •The execution of projects worldwide (with subcontractor and local content constraints). •The battle for project management and technical skills (matrix to improve efficiency and knowledge management). Accenture was recognized by Saipem for its proven knowledge with regard to engineering and construction projects and industryspecific business processes, as well as its deep experience with client operating models. How Accenture helped In all its work, Accenture draws on the insights gained from its High Performance Business research. This ongoing research looks at the approaches and action businesses take to achieve high performance. As Accenture addresses challenges with clients, it thinks in terms of developing businesses that can deliver sustained results and outperform peers over the long term. The combination of Accenture’s proven experience, thought leadership, leading-edge tools, resources and global capabilities contributes to helping deliver innovative business solutions. Since 1997, Saipem has enjoyed a long-standing relationship with Accenture built on strong collaboration during the design and development of its Integrated Business Information System (IBIS) model. Following the successful implementation of a SAP-based enterprise resource planning (ERP) system and several years of deployment in Saipem’s offices and vessels around the word, Accenture helped create and execute various continuous improvement initiatives to optimize and support the adoption of the IBIS project throughout the organization. Accenture also helped enhance the model to provide increased support to Saipem’s core business processes around engineering, procurement and construction integrated solutions. The original business process analysis and ERP implementation was conducted entirely by Accenture in close collaboration with key client representatives. For the later initiatives, Accenture operated in conjunction with client representatives and software vendors or integrators. Accenture’s scope in recent projects is primarily related to project management support; interaction with business representatives and change management; requirements gathering; business processes and operating model design; solution blueprint definition; and system integration support. Specific project workstreams, both completed and ongoing, arising from the collaboration between Saipem and Accenture include: •Saipem SA (formerly Bouygues Offshore) and Snamprogetti mergers. Accenture supported the ERP change management and rollout activities, improving the model with leading practices. •Project Management Coaching Tour. Prepared and executed by the Accenture team, this initiative outlined the scope of IBIS and the benefits it would deliver on EPC project activities. This tour was attended by 200 Saipem Project Managers. •Engineering Data Integration. This project was aimed at improving engineering efficiency and plant design information management through data-centric and crossdisciplinary integration, leveraging the implementation of IntergraphSmartPlant technology. •Procurement Data Warehouse Reengineering. A complete reengineering of the procurementrelated area of the business intelligence solution. •Construction Site Management Model. Assessment of the processes and flow of information during the construction phase, particularly focusing on the work planning and progress monitoring activities. •Workload Management Solution. The design and implementation of an operational model to support workforce planning during all project phases. Leveraging the implementation of CA-Clarity software, this solution enables comparison of workload and capacity at the professional role level to support decision making with regard to long-term HR planning and project resource allocation. •Project Document Management Solution. The definition of a standard corporate model and unique application to manage EPC project deliverables and worldwide collaboration with third parties including suppliers, subcontractors, partners and clients. •Vessel Reporting System. The design of a new daily work progress tool for construction vessels, simplifying and standardizing data to enhance project scheduling, asset analyzing and offshore operations productivity as well as controlling a scorecard of financial and operational key performance indicators aligned with the company’s strategic objectives. •Information Technology Governance. The support of project management office activities and the design and implementation of a client information and communication technology (ICT) governance model and infrastructure. Accenture has acted as a core business process advisor in EPC projects execution, providing operational support and coaching to the company’s project managers and motivating technology and application adoption to improve critical business process performance. High Performance Delivered All the solutions designed and implemented through the collaboration between Accenture and Saipem can be considered on the technological frontier and tailored to the specific capital project business, affording a number of key benefits: •Integration between EPC project processes, companies and systems, facilitating the exchange of structured information between multiple functions and legal entities. •An increased degree of process and data standardization ensuring the adoption of common methods of working, data and integrated reporting. •Real-time access to information (such as project control data, material quantities and financial records) across all locations— regardless of where the activity is physically performed—enabling global monitoring by headquarter. •Effective human resources management, assigning key project resources with appropriate skills and enabling a long-term HR strategy in order to support strategic decisions, as well as reducing low value-added activities through automation. •Increased business process support, leveraging dedicated, industryleading applications implemented in alignment with the operating model defined in the corporate strategy. •A superior technology infrastructure to ensure effective and timely support of delivery of both onshore and offshore projects all over the world. In a testament to the success of the IBIS project, Saipem states “with its enhanced business processes, organization and systems, the IBIS Model is the environment that has enabled increased internal and external collaboration, marked integration and communication among processes, enhanced visibility and control across the enterprise and a high degree of data standardization and audit… and, ultimately, it delivers to our clients a better managed project from a financial and logistical point of view.” As a result of Accenture’s contribution, Saipem is able to rapidly implement EPC solutions, beating its competitors to the punch and often acting as a source of requirements or specifications for software vendors to develop their products. Furthermore, Saipem is recognized by owner operators as a leading, technologyoriented global EPC contractor. These factors, together with the numerous other benefits, place Saipem firmly on the road to becoming a high performance business. Contacts About Accenture Fausto Torri Accenture Plant and Automation Solutions lead: Italy, Greece, Central and Eastern Europe, Russia, Middle East (IGEM) +39 027775 1493 fausto.torri@accenture.com Accenture is a global management consulting, technology services and outsourcing company, with approximately 204,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com. Cristian Corbetti Saipem account lead + 39 02 7775 1111 cristian.corbetti@accenture.com Copyright © 2010 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About Accenture Plant and Automation Solutions Accenture Plant and Automation Solutions is a suite of offerings designed for asset-intensive companies across industries such as metals and mining, chemical, pulp and paper, oil and gas, and utilities. Our offering comprises solutions for engineering, project and data management; core plant operations; environment, health and safety; enabling services; and, industrial and automation capabilities. We combine our extensive industry experience with our innovative, vendor-neutral solutions to help you build and operate plants and assets in a reliable, safe and cost-effective manner.