Cenovus Energy is a Canada-based integrated oil and gas company that has assets across Alberta and British Columbia. At present, it owns a 50% stake in two refineries based in the U.S. The company has also purchased a large percentage of ConocoPhillips’ Western Canadian operations. As its business expands, they seek to update its enterprise resource planning (ERP) platform to streamline its processes for better efficiency.
More companies are moving to the cloud because of its proven track record in delivering effective methods to improve the team’s performance by reducing, even eliminating repetitive tasks, and reducing costs and expenses. In return, this also boosts the productivity levels of the individuals involved with the organisation.
International Business Machines Corporation, more commonly referred to as IBM, has announced that they were selected by Cenovus Energy to help with its digital transformation efforts and operational modernisation. IBM intends to implement a new SAP platform, which will be beneficial for Cenovus Energy’s goal.
The deal between Cenovus and IBM includes the implementation of SAP Ariba, SAP Business Planning and Consolidation 11, SAP Fieldglass, SAP BW/4 HANA, and SAP S/4 HANA.
The reason for implementing SAP S/4 HANA involves automating, centralising, simplifying and standardising the company’s operations. Additionally, the implementation will aid innovation and growth in areas such as artificial intelligence (AI). It will also pave the way for new operational integrations.
IBM will leverage its technological capabilities in implementing the SAP applications for Cenovus Energy. These capabilities include pre-configured IBM Industry Impact Solutions. They will also provide the necessary resource support and talent that will help meet the needs of the transformation process.
SAP’s relationship with IBM lies in its long experience in reinventing clients’ business operations using intelligent technologies such as SAP Value Assurance and SAP Model Company services. They also manage the overall coordination of joint service offerings.
Their previous experience includes the implementation of SAP S/4 HANA for global companies such as Cleco, Logoplaste, and Toyota Indus Motor Company.
The ERP Program Director of Cenovus Energy, Charity Elder, shared some thoughts on how the digital transformation and modernisation is going to affect their business strategy. She said:
“In working with IBM Services to implement SAP S/4HANA, we are looking forward to leveraging their accelerators and templates to drive alignment to best practice and process standardization, placing us in a better position with business capabilities, operational efficiency, and technology.”
IBM Vice President, Partner, Canadian Energy Industry, Ross Manning, talked about the significance of transformation for the gas and oil industries. He mentioned that companies are looking for new platforms that will help them get the most out of their assets while ensuring lower operating costs and improving sustainable operations. He also said that by deploying SAP S/4 HANA-based platform, they would have the capacity to unlock operational insights and innovate faster.
In a statement, he said:
“By leveraging acceleration methods and automated, templatized tools, IBM Services can help Cenovus with their business transformation journey with SAP S/4HANA.”
IBM has been helping companies in adopting digital change, given its reputation in analytics and cloud computing, which guarantees revenue opportunities.
The contract between the two companies was signed during the third quarter of 2019.