Enterprise Resource Planning (ERP) software can be a critical component of business success. But customizing and implementing these complex systems can be difficult and extremely expensive.

This case study examines how Schlumberger partnered with Scrum Inc. to successfully land their large scale ERP implementation.

Background

Delivering products and services in more than 120 countries and employing approximately 100,000 people, Schlumberger is the largest oil and gas services provider in the world. The company had already invested a considerable amount of money into a project that would impact the company’s future: an ERP system that would eventually span its entire global organization. Despite the resources Schlumberger put in, the project was facing significant challenges.

The implementation was failing to meet the goal of 70% data readiness. And the initial cohort of 600 employees and contractors working on the ERP had jumped to 1,300. 

So Eric Abecassis, Schlumberger’s new CIO decided to do something more radical. He wanted to use Scrum. “The experiment with Scrum will only last a few months,” Abecassis told the company’s Executive Management, “but if we are successful, it’s going to be a major breakthrough in terms of efficiency.” It could have the potential to radically affect how the company does things. And not just in the back office.

Key Takeaways

After one year of using Scrum to implement their ERP, CIO Abecassis says “We’ve seen an increase of about 25% in terms of productivity with 25% of cost reduction on a massive program.” One team, for example, delivered data into the new ERP one week ahead of schedule and at 93% readiness, well above the required 70%.

These results, Abecassis adds, are just the beginning. “I think we can continue to push the envelope and we can definitely get to maybe 30 – 40% of cost savings and 30 – 40% of productivity improvement.”

Schlumberger’s launch of the ERP in North America, the company’s largest market, successfully went live on April 1st, 2019.