Platform and Collaboration Solution Helps Vico Indonesia Maximize Operational Efficiency

Microsoft Customer Solution Customer Solution Case Study

VICO Indonesia

Overview “We expect that the implementation of Windows XP Country or Region: Indonesia and Office 2003 will reduce costs and improve our Industry: Energy (Oil and gas office collaborative climate, performance, and production) security.” Customer Profile Hayu S. Prabowo, Vice President of Finance and IT, Vico Indonesia Jakarta-based Vico Indonesia is one of the country’s leading oil and gas producers. Vico Indonesia was the first In 2003, Microsoft conducted a pre-deployment Rapid firm to use the Bontang plant, which Economic Justification (REJ) study at Vico Indonesia. transforms gas into LNG and ships it to customers in Japan, Korea, and Taiwan. Based on study results, the team at Microsoft Annual revenues for 2004 are in excess of U.S.$1 billion. Indonesia proposed an IT platform and collaboration Business Situation solution based on Microsoft® Windows Server™ 2003, Vico Indonesia wanted a platform that Windows® XP Professional, and components of the established company-wide information sharing, reduced total cost of ownership Microsoft Office System. (TCO), and accelerated analysis and reporting of performance data. Study results indicated that by deploying the proposed Solution solution, Vico Indonesia could attain immediate cost The Vico Indonesia solution updated savings, collect and manage performance data more servers to Microsoft® Windows Server™ 2003, standardized the desktop quickly, and reduce the costs of long-distance training environment on Windows® XP and data management. After full deployment in 2005, Professional, and used the Microsoft Office SharePoint® Portal Server 2003 the solution has resulted in: and Office 2003 components of the Microsoft Office System.  A 12-percent reduction in TCO per year.

Benefits  A 40-percent return on investment.  Faster business and technical decisions   Faster retrieval, analysis, and reporting A 19-percent internal rate of return. of performance data  “Our challenge every Situation very important and something that I value In the remote gas fields of Indonesia’s very strongly. It is something that IT can day is to maximize eastern Kalimantan province, petroleum deliver.” production while we engineers of Vico Indonesia review daily The difficulty was not identifying IT products minimize our costs— production statistics. The numbers tell them that could be combined into a solution. The that time isn’t on their side. real problem lay in getting maximum value that is, maximize Currently, Vico Indonesia’s four giant gas margins—but doing it fields produce 800 million cubic feet of gas Fast Facts each day, but they yield less and less each Annual TCO 12% in a very safe way.” year. Use of Capital Return on investment (ROI) 40% From his office in Jakarta 800 miles from the Christopher Phillips Internal rate of return (IRR) 19% gas fields, Christopher Phillips, Vice Vice President of Technical Support Hurdle rate 10% President of Technical Support at Vico Vico Indonesia Indonesia, describes the situation. “We see the end of field life being towards the end of from the IT investment—knowing where in the next decade, so we still have a the company IT could be deployed quickly considerable amount of time to continue and provide the greatest benefits. production. But our challenge every day is to The team at Microsoft Indonesia had an maximize production while we minimize our answer to this dilemma. Rather than costs—that is, maximize margins—but doing proposing specific products to Mr. Phillips, it in a very safe way.” they offered to demonstrate a methodology Mr. Phillips helps to guide his company’s use instead. of IT, finding the latest technologies and This method, Microsoft® Rapid Economic methods to manage the company’s current Justification (REJ), is a quick but effective reserves, identify new gas fields, and way to help organizations identify the constantly control costs. He knew that business processes and IT solutions that can whichever technology was installed, it had to yield the greatest business value to their be deployed quickly, reduce operating costs, organization. In the REJ Framework, and help employees work more efficiently. organizations use their own information and Mr. Phillips and other officials at Vico specialized data processing tools to identify Indonesia also viewed installing a new IT benefits and quantify potential cost savings. platform as an opportunity to operate the The result: a business case, which is company in a different way. presented to company executives to justify Phillips remarks, “I would like us to manage an IT investment. the business at the highest level by using The REJ process gave Vico Indonesia the scorecards around various performance momentum needed to identify and address parameters. It’s performance data in real complex IT issues quickly and to prioritize time that allows us to take the appropriate IT deployment. Both the desktop and intervention and steer this company where it server-side phases of the deployment were needs to go. To know where you are at any completed in 2005. time and what the next months will bring is Solution  Use XML technology to integrate legacy REJ practitioners at Microsoft Indonesia line of business applications. XML-based worked closely with Vico Indonesia to capabilities in the new desktop conduct an REJ study. As part of the environment enable Vico Indonesia to link REJ process, they defined an IT solution existing enterprise resource planning that would yield the greatest benefits. (ERP) line of business applications. This Study proposals included a two-step ability provides users with access to deployment that included an immediate existing information repositories and desktop upgrade and installation of business data stored in databases located server-side applications. REJ study anywhere in the company. proposals included: After full deployment was completed in 2005, an REJ study confirmed that by  Standardize desktops from Windows NT® Workstation version 4.0 operating system deploying the proposed solution in a 3-year project, Vico Indonesia achieved a 40 to Windows® XP Professional to provide a uniform desktop environment and a percent ROI and a 19 percent IRR. secure, reliable Windows XP desktop Benefits infrastructure across the company. The updated platform and collaboration  Upgrade from Office 2000 to Microsoft solution helped Vico Indonesia reduce total Office 2003. The upgrade enables sharing cost of ownership (TCO), collect and of application files in a Microsoft manage performance data more quickly, SharePoint®-based portal server and and reduce the costs of long-distance provides shared workspaces, alerts, and training and data management. notifications that make meetings and Updated Platform Helps Vico communications more efficient. Indonesia Reduce TCO by 12  Upgrade the server to Microsoft Windows Percent a Year Server™ 2003 to provide a multipurpose Company-wide cost reduction is a pillar of network operating system. The Active the Vico Indonesia financial strategy. Results Directory® directory service, a Windows of the REJ business value analysis indicate Server 2003 component, provides single- that the updated platform enabled Vico point management capabilities that enable Indonesia to reduce TCO and increase end- the Vico Indonesia ICT staff to automate user productivity. The following operational or reduce routine IT support tasks. efficiencies made these improvements  Install Office SharePoint Portal Server possible: 2003 (part of the Windows Server  Less time spent supporting network and System™) to provide a rich collaboration desktop software. Lower desktop environment throughout the company. downtime reduces help desk calls and Using a SharePoint portal provides Vico the time Vico Indonesia ICT staff Indonesia engineers, executives, and members spend helping end users knowledge workers with rapid, single-point restore their documents and desktops. access to applications, technical data, and workgroup-related information. “ToWe operate recognize that The centralized management capabilities portal and take the training that meets their of the Active Directory service also needs, whenever they have the time. successfully,multi-disciplinary timely and enables Vico Indonesia ICT staff Roberto Lorato, President and CEO of Vico effectiveteamwork information actually members to avoid repetitive Indonesia remarks, “We recognize that administration tasks such as managing multi-disciplinary teamwork actually yields sharingyields better is critical. results. IT is email servers and installing software better results. To operate successfully, particularlyWe must update critical andin updates on each desktop PC. The timely and effective information sharing is resulting efficiency reduced Vico critical. We must update and share providingshare technical us with data the Indonesia’s TCO by 12 percent a year technical data and make the best use of bestand maketools for the retrieving, best use  Improved end-user productivity. More cross-functional teams within our stable Windows XP Professional organization. IT is particularly critical in updatingof cross-functional and sharing desktops and Office 2003 document providing us with the best tools for technicalteams within data.” our recovery capabilities help end users retrieving, updating, and sharing this data.” spend less time recovering their own Robertoorganization.” Lorato documents and desktop function and Application Integration Ensures President and CEO providing peer-to-peer support to More Responsive, On-target Roberto Lorato colleagues. Operations President and CEO Vico Indonesia employees must meet In each of these cases, improved personal Vico Indonesia stringent production, financial, and efficiency not only reduced TCO of IT regulatory requirements. Meeting these operations but enabled Vico Indonesia performance targets is a challenge employees to spend more time engaged in because they require rapid access, higher-value activities. analysis, and reporting of data stored in the Collaboration Eliminates Obstacles company’s ERP, financial, inventory, and of Long-Distance Operations technical databases. Vico Indonesia officials understand that the The problem: each database operates 800 miles between headquarters and the independently. Data must be downloaded field can create obstacles to teamwork. The from each ERP application, formatted into a company used the communication and report, analyzed, summarized, and collaboration features of the new platform to distributed throughout the company. This start a long-distance training program. manual process often delays delivery of vital To engage in new e-learning courses at financial and regulatory compliance well sites, end users can employ video information. Using the new platform conferencing, the Microsoft NetMeeting® resulted in these benefits: conferencing software component of  Faster retrieval of performance data. The Windows Server 2003, or tutorials from the Vico Indonesia ICT staff used the XML- Vico Indonesia help desk personnel. A based data exchange capabilities of the local Microsoft Partner used Office 2003 to platform to connect the databases of the create training modules in Bahasa existing ERP applications. Consolidating Indonesia, the national language. Rather the databases eliminates the need for than wait for conventional training users to search for and retrieve data sessions, trainees enter the SharePoint from each database individually. Users simply enter the SharePoint-based portal network performance, reliability, and and retrieve the needed data in one step. supportability.”

 Faster data analysis, reporting, and distribution. To distribute performance data or finished reports, users simply enter the portal, find the needed information in the site’s single data repository, and check it out of a document library. Reporting deadlines can be posted in the site’s workgroup information, and alerts can be set up to notify all relevant parties that it’s time to report or comply with specific performance requirements.

 Faster executive review of performance data. Office SharePoint Portal Server 2003 also enables the ICT staff to set up digital dashboards, which display updated performance data. This approach provides constant data monitoring capabilities and enables Vico Indonesia officials to monitor only the performance data relevant to each executive. This approach helps Vico Indonesia officials spend more time doing what they do best—running the company. Vico Indonesia deployed the Windows platform to improve current operational efficiency and provide a foundation for future process improvements. Hayu S. Prabowo, Vice President of Finance and IT at Vico Indonesia, concludes, “We want an IT platform that supports our knowledge management strategy. We expect that the implementation of Windows XP and Office 2003 will reduce costs and improve our office collaborative climate, performance, and security. By migrating to this technology we will obtain improved For More Information Solution Components For more information about Microsoft Microsoft Windows Server 2003 Microsoft Office 2003 is the business products and services, call the Microsoft delivers a highly productive platform for world's chosen environment for information Sales Information Center at (800) 426- powering connected applications, work. For more information about Microsoft 9400. In Canada, call the Microsoft networks, and Web services from the Office System, go to: Canada Information Centre at (877) 568- workgroup to the data center. For more www.microsoft.com/office/prodinfo 2495. Customers who are deaf or hard- information about Windows Server 2003, go Microsoft Office SharePoint Portal of-hearing can reach Microsoft text to: www.microsoft.com/windowsserver2003 Server 2003 enables enterprises to telephone (TTY/TDD) services at (800) Microsoft Windows XP Professional, develop an intelligent portal that 892-5234 in the United States or (905) the new standard in reliability and seamlessly connects users, teams, and 568-9641 in Canada. Outside the 50 performance, is designed for businesses of knowledge so that people can use relevant United States and Canada, please all sizes and for individuals who demand the information across business processes and contact your local Microsoft subsidiary. most from their computing experience. For work more efficiently. For more information To access information using the World more information about Windows XP about SharePoint Portal Server, go to: Wide Web, go to: www.microsoft.com Professional, go to: www.microsoft.com/office/sharepoint/prodinf www.microsoft.com/windowsxp/pro o

Software and Services Products Microsoft Windows Server System © 2005 Microsoft Corporation. All rights reserved. This case Microsoft Windows XP Professional study is for informational purposes only. MICROSOFT Microsoft Windows Server™ 2003 MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN Microsoft Office System THIS SUMMARY. Microsoft, Active Directory, InfoPath, MSN® Messenger MSN, NetMeeting, Outlook, SharePoint, Windows, the Microsoft Office Enterprise Edition Windows Logo, Windows Messenger, Windows NT, and Microsoft SQL Server™ 2000 Windows Server are either registered trademarks or 2003 trademarks of Microsoft Corporation in the United States Microsoft Systems Management Server and/or other countries. All other trademarks are property of Microsoft Office Outlook® 2003 their respective owners. Microsoft Office InfoPath® 2003 2003 Microsoft Office SharePoint® Document published April 2005 Technologies Portal Server 2003 Extensible Markup Language (XML)