2. The 1st Question that needs to be asked is why do we need Digitalization at all
when we have done all required IT implementation during the last 20-30 Years
.
ERP
Implementation
Internet Enable Services
– Data Phone / Tablets
Computerization
21st Century Started with Internet and Going on….
End of 90 Was ERP period80’ was Computerization period
3. To Understand how we have moved from Computerization to ERP and finally Internet arena.
We are going to take an example of a company called Sigma Drilling which started its operation in 1980 with
3 Drilling Rig Fleet and see how they managed business transactions.
Sigma Drilling
Has 230 employee working in Oil
Drilling Business
Had 2 Customer & 10 Suppliers
On average daily communication
between Customer , Supplier & Other
Stake holder are approx. 10
Average Operation & Administrative
Job 5 to 10 Depending on business
activity
Communication Tool used – Phone –
FAX- TELEX & Post Email
Communication & Document Management
Methodology used
Communication Document Storage
• All Communication was happening are getting recorded in
paper mode
• All Communication fill get filed in respective parts File cabinet
• All Communication related to respective part will be available
• In respective folder
• All Financial information are maintained in manual ledgers
4. 28 Year later
How Sigma Drilling is running business process?
Lets Evaluate
5. IT Enabled Sigma Drilling Business Process
• All Employees are having Pc/ Laptop/Tablets
• 60 % Business Transaction are managed by
ERP
• All Communication are done through Email
• All Users keep the important information
either on PC or File server
• All Internal or External communications are
managed by emails
6. Lets Evaluate how business process has changed in 28 Years in Sigma
- All Information was managed in
papers
- All Financial information was managed
in ledgers
- All Communications are managed by
Fax , Telex & Postal Email
- All information related to One
Customer/ Suppliers / Orders /
Invoice /Payment / Employees Can
be found in once place when its
needed.
1980 2018
- All Information is managed on
Computers
- All Financial information is managed
by ERP
- All Communication Emails
- All information related to any business
transaction such as Customer /
Suppliers / Orders / Invoice /Payment
/ Employees Can’t be found in
once place when its needed.
7. Lets Investigate why?
in 80’s without technology we got all Information at One Place.
In 2018 even after having technologies we still Need look for information.
8. Customer SupplierEmployeeCompany Banks Markets Competition
Following are reasons.
• All business stake holders and transactions was having a separate file box .
• All Communication copies and original documents are being kept in respective file boxes with Proper identification.
• Example- Company has Placed a Purchase Order No 8085 For Annular BOP then the following information will be found in
Order 8085 File box.
Purchase Request, Vendor Registration, RFQ AFE Approval, Minutes of Meeting of BOP Purchase Approval, Purchase
Order Copy. Fax Confirmation for Purchase Order. Order Acknowledgement Fax. Advance Payment Detail. Team Visit for
Inspection. Third Party Inspection Report, Inspection Payment Detail. Shipment Documents, Final Payment detail,
Insurance Detail & Custom duty / Exemption Document. Material Receipt at Warehouse.
Order
In the Above Example many departments are being involved but all information's are being kept in a central document file
box. Resulting when anyone looking for 8085 information he/she will find all required information in one place.
Why we got all document in once Place in 80’s?
9. Lets do Same BOP Purchase in 2018 and see how informations are being Managed
Customer
Supplier
Employee
Company
Banks
Order
• Today in BOP Purchase Process 95 % Communication is
Done through Emails.
• All Documents Such as RFQ/AFE Approval / Signed PO
Copies and other documents are also being Circulated by
Emails.
• Payment is done electronically and confirmation is Send
by Emails.
• 60 % Information can be found in ERP such as All Digital
information such order detail / Shipment Detail &
Receipt Detail.
• Above points clearly indicates towards the reason why
information cannot be found related to any business
transaction from a single window.
60 %
The reason we are not able get all information in one place related to one order is because 95% Communication
and documents are exchanged through emails. All communication are generally not attached with ERP Screen
resulting ERP just give numbers and then we need to Look for supporting in various systems and users.
10. Lets find out where are the problems.
Problems lies in below process and methods
How we communicate
How information & Document are Saved
How employee is working on Work Station
How we Search information.
Google can search the whole world then why we can’t search in the
same way within our database, Files & Network
11. User Activity on Work Station
• Sending Emails
• Using ERP to create various business
transaction
• Create Work / Excel / Power Point
Files
• Managing various documents and
keeping in Local hard disk and server
• Emails are stored in Local PC or Server
• Email Cant searched by other user
• All Files created by User are saved in
Local PC or Server cant linked with
Business Transaction
• All the user out puts are not being
collected when its happening rather than later
requested and collect information or
document.
12. To get all Information related to one business
transaction on the Click of a Mouse – we need to
do the following
13. • Business Transaction Document – Digitalization Process
• System should be enable to capture all communication and documents related to business transaction as per
defined business logics.
• System should enable the User to create business Logic and to create various stages of progress and
accordingly ask documents.
• System should provide Transaction wise document collection percentage and inform all stake holders.
• System should provide flexible alert mechanism in which when user performs a function then a set people get
information
• System should provide functions to attach any kind of documents such Email Messages / PDF / Word /Excel in
nutshell any document which windows PC/ lap top can open.
• System should provide flexible option to upload document and download as per user privilege.
• System should create a culture in which we should stop asking information from individual and system should
provide information
14. • Example of Business Transaction – Digitalization Process
• Lets Digitalize Purchase Order Document Process
Purchase Order Types Order Document Type Phase wise Documents
Foreign Purchase Order
The moment Foreign PO Inserted in
System All 1st Phase document should be
available in system. If its not uploaded
then system will show percentage and
inform concern manager and document
owners.
As w can see system show 75%
document from 1st Phase is Showing
Pending.
Below are document got upload so system
calculate 25% document get uploaded
15. Business Transaction Document – Digitalization Process
We can Digitalize all Company business Transaction.
Customer SupplierHRCompany Banks
MarketsTraining
Finance OperationSales
SCM Warehouse Maintenance Assets Fire & Safety
16. User Information – Digitalization Process
• Digitalization process should enable Existing ERP or any Third part software
to collect new or updated File from User PC/Laptops
• System should have below Interface so user can see all new files and upload
with relevant category Information.
• This process will help to understand user work load and working efficiency.
• This process will help organization to collect all work executed on individual
work station and create centralize gold mine database
Document Heads & Category User Files to Upload
• We can also link ERP with Microsoft office So when User click SAVE one copy of file will automatically will get
saved in Centralized database with document category
17. The 1st Phase of Digitalization should Give below ROI
• System to Track the 1st document which Company Registration document to the
Last important Email send or Document got Generated by any User
• System Should collect all documents generated by users Such as Word /Excel/PPT
from all work station with document category.
• System Should track all compulsory document uploads as per define business logic
and incase of any delay inform concern stake holders.
• System Should have provision to capture Voice and video Data as per define business
logics.
• System should provide all Logs related to document movement (Upload /Download)
history.
The most valuable ROI will be when we need any information it will be readily available rather than asking
any individuals. This will help to serve better internal and external customer and other stake holders
18. The 2st Phase of Digitalization Implementation Plan
• Warehouse – Material Digitalization Process.
Material Receiving and Issuance Transaction Video Capture and Upload automatically with relevant transaction.
- Material Issue and Receiving Updating – through Electronic pallets or Barcode Scanning.
- Enabling Warehouse IT Infrastructure to Enable Drone doing physical count and live update ERP Database.
- High value material movement can be tracked through motion detection and check if moving material part of
any active pick list otherwise inform concern person.
- Enabling ERP to send signal to camera or IOT Device to perform certain function. Ex if we define business rule
when x material is getting scanned through Bard code then X camera should get focused on X & Y coordinate and
send email to X group of users
- ERP should give provision to create business logic to track all material movement and inform stake holder as per
organization needs
19. - Centralize Database for any Asset with relevant documents Purchase , Maintenance history with documents, User Manuals,
Training Videos, Accident Detail and any other business transaction related to asset. Warranty Information etc.
- RFID Integration with user defined business rules such as Movement – Report to X Set of Users. If Move from specific
area to un-authorize area inform x set of user and create Alarm.
- Evaluating RFID integration during Land Rig- Rig Move to track which equipment has left location / Which one are on
Road and Which equipment reached on next location.
- IOT Integration within various Critical asset such as incase main gen set fails and load move to back up generator –
Maintenance manager should get message – x team should get email and much more .
- IOT Integration with HVAC if temperature falls abnormally then shut down x Set of device and inform x set of
people and much more.
- IOT Integration in RIG VFD System / Totco System. Read Data from VFD database and on the basis of certain operation logics
inform set of people by Message or create Alarm on Rig floor / Tool Pusher room / Company man / Safety.
- Block Chain Integration which will help to create RIG Identification in Block Chain Ledger along with all other activities such
Maintenance information, Owner ship , Equipment List etc
• Asset Digitalization Process.
20. • RFID Implementation within HIGH Value Documents
- Create RFID network within the organization to track & manage high value Documents.
- All important high value original documents such – Business Contracts, Agreements, LC, Cheques, Rental Agreements can be integrated
with RFID Tag.
- RFID Integration will help tracking various document movement within the organization also track which document waiting on which
desk for how may days.
- RFID system will provide file movement on real time basis and also integrate various customizable alert to track critical documents.
- RFID system can be configured in such a way if any document is moving outside from its designated area then immediately document
owner will get message and also security gate will be informed by alarm.
- RFID TAG should come with embedded alarm system so incase if some body trying to remove tag some alert should be send to
document owner.
21. • Installation & Maintenance Digitalization Process.
- Maintenance area can have motion detection So if in incase any movement is
happening then system should send signal to database to check if any active permit to
work exist otherwise inform concern departments.
- Any Major Maintenance activity can be started in ERP and then x CCTV camera get
instruction to focus on x & y coordinated to capture all activity and when Job is
completed then recording file should get attached with maintenance Job.
- After any Major Installation or Maintenance Job after looking recording we should
come up do & don’t do as Learning so next time we should not repeat the same
mistake and create knowledge base for future training.
-
22. • Fire & Safety
- IOT can be play vital role in improving fire & Safety response. Presently when Fire happen we call Fire Department and
inform “We got fire and give brief detail” and immediately Fire Fighting vehicle dispatched .
- We can use IOT to enable Fire response more effective and reduce damage.
- The solution should be as follows.
- Every Buildings or Workshop /Warehouse should have camera installed on all four corners with Solar powered,
Wi-Fi connection & Static IP. On Normal situation these cameras are not active once fire siren start these camera
become active and Static IP should be enabled.
- Fire System send sms public IP and user ID & Password Fire Control Department So – Sitting in control room in min
they can see live fire video and then appropriate response can be planned .
- The whole operation can be monitored using these live camera feed.
