Tullow Oil, an independent oil and gas company, launched a digital transformation program to reduce costs, enable faster and better decision-makingand increase workforce productivity.
To provide a solid foundation for this transition, it needed to move its aging SAP® ECC enterprise resources planning (ERP) platform to SAP S/4HANA®.Doing so would accelerate its digital future through new SAP capabilities, an improved employee experience and modernized corporate businesssystems. Tullow Oil decided on a “brownfield” conversion that would essentially upgrade its SAP ECC ERP to SAP S/4HANA—an approach that wouldminimize any disruption to the business.
When tech meets human ingenuity
Tullow Oil and Accenture started to build the foundations for a digital future.
The effort included upgrading to the SAP S/4 HANA digital platform. The effort also involved updating connected systems to the latest versions, implementing SAP® SuccessFactors® as a single source of HR data and employee self-service, and introducing an improved user interface using SAP Fiori® apps. In early 2020, with Accenture already maintaining the SAP application stack, Tullow Oil saw the opportunity to drive additional cost savings through a business process outsourcing arrangement. In developing the managed services plan, Tullow Oil and Accenture focused on two key areas—strategic sourcing and finance.
A valuable difference
The move to the public cloud and the brownfield conversion of SAP ECC to SAP S/4HANA—the first of its kind in the oil and gas industry—were completed with minimal disruption to the business.
The new platform is improving performance and agility. Real-time analytics via S/4HANA are providing insights to improve decision making and productivity. Tullow Oil is also competing better in strategic procurement, with savings of over 50% on a single contract. Process improvements are delivering better payment compliance, with on-time payments improving from 60% to 85% in six months. And in finance operations, simplified processes and better controls have helped significantly cut Tullow Oil’s open line items and reduce its open historical balance sheet items by 33%.