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BP Chemicals' commercial system: IT risk and project management

Author: Jelassi, Tawfik ; Dutta, SoumitraINSEAD Area: Technology and Operations Management In: Strategic information systems: a European perspective - Ciborra, Claudio;Jelassi, Tawfik - 1994 - INSEAD Book Language: EnglishDescription: p. 133-140.Type of document: INSEAD ChapterNote: Please ask the Library for this chapter.Abstract: In the early 1980s BP Chemicals faced challenges calling for some fundamental changes in its business strategy. Rapid expansion via acquisition during the past five decades had created a company with many different cultures. In 1985, BP Chemicals embarked on an ambitious project (the Commercial System Project [CSP]) to integrate all aspects of its international commercial activities and implement the organizational changes required for this integration. The complexity of the CSP project was under-estimated and mismanaged from the start. By 1991, the project was four years late and had incurred an over-expenditure of five times the original budget. The organizational changes required to fully harness the benefits of the CSP were only then being implemented. The case aims to show how information technology can be used to enhance the competitive position of a company, to integrate its business activities and to highlight the perils of managing large information technology projects
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In the early 1980s BP Chemicals faced challenges calling for some fundamental changes in its business strategy. Rapid expansion via acquisition during the past five decades had created a company with many different cultures. In 1985, BP Chemicals embarked on an ambitious project (the Commercial System Project [CSP]) to integrate all aspects of its international commercial activities and implement the organizational changes required for this integration. The complexity of the CSP project was under-estimated and mismanaged from the start. By 1991, the project was four years late and had incurred an over-expenditure of five times the original budget. The organizational changes required to fully harness the benefits of the CSP were only then being implemented. The case aims to show how information technology can be used to enhance the competitive position of a company, to integrate its business activities and to highlight the perils of managing large information technology projects

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