CLIENT CASE STUDY


Saipem: Integrated business information system

Accenture helped implement an IBIS model for increased support to Saipem’s engineering, procurement and construction integrated solutions businesses.

Overview

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 more than 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. Saipem 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, deep water and heavy oils.

Accenture was the logical choice when Saipem wanted to improve integration between company functions, headquarters and remote sites.

 

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Opportunity

Since the late 1990s, Saipem had executed an extensive change initiative called Integrated Business Information System (IBIS). By redesigning processes, procedures and applications at the group level, the goal of this initiative was to improve integration between company functions, headquarters and remote sites, as well as increase the operational efficiency of EPC projects.

Specifically, the challenges 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 selected by Saipem based on its proven knowledge of engineering and construction projects and industry-specific business processes, as well as its deep experience with client operating models.

Solution

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 an 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 cross-disciplinary integration, leveraging the implementation of Intergraph-SmartPlant technology.

  • Procurement Data Warehouse Reengineering. A complete reengineering of the procurement-related 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 so as 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 so as 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 project execution, providing operational support and coaching to the company’s project managers, and motivating technology and application adoption to improve critical business process performance.

Results

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 headquarters.

  • Effective human resources management, assigning key project resources with appropriate skills and enabling a long-term HR strategy to support strategic decisions, as well as reducing low value-added activities through automation.

  • Increased business process support, leveraging dedicated, industry-leading 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.

As a result of Accenture’s contribution, Saipem is now 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, technology-oriented global EPC contractor.

These factors, together with the numerous other benefits, have placed Saipem firmly on the road to becoming a high-performance business.

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