BHARAT PETROLEUM CORPORATION LIMITED: DIGITIZING
PAYMENT SYSTEMS CASE STUDY SOLUTION
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SYNOPSIS
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On a Monday morning in February 2019, D. K. Ram, the executive director of liquefied petroleum gas at
Bharat Petroleum Corporation Limited (BPCL), reported to his office in Mumbai. A newspaper headline
captured his interest. It was reported that two delivery boys had been murdered in broad daylight while
n
returning to Priya Gas Service, the distributor of BPCL, after delivering gas cylinders in Siwan, a small town
in Bihar. Ram was intrigued by the headline and pondered the dangers these delivery people faced in
tio
delivering the gas cylinders to the final consumer. Profoundly troubled by the news, Ram contemplated
whether BPCL had adopted a limited perspective on the transition to digital transaction methods. He pondered
whether the BPCL should seek novel technologies to digitize last mile delivery. He wondered whether BPCL
lu
would implement an all-encompassing digitization strategy, or would the company choose to execute a phased
approach that entailed incremental growth in the digital realm?
So
OBJECTIVES
• Explain the use of technology by a firm to advance its digital capabilities and change its operations.
• Discuss the challenges faced by a firm during the digitalization process.
• Describe the five domains of digital transformation in the context of a firm’s digital initiatives.
• Analyze the actions necessary to make the digital transformation journey successful.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
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1. What are the benefits and challenges for each digital transformation alternative outlined by Ram for
BPCL?
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2. How could BPCL employ digital technologies to transform its services to deliver better consumer value?
3. Identify the challenges faced by BPCL during its digital transformation journey.
So
4. Identify the five domains of digital transformation and discuss the various initiatives BPCL could take
to achieve positive outcomes from digital transformation.
5. What should BPCL do to make its digital transformation journey successful?
The Case Solution Starts From page 5
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pl
m
Sa
n
tio
lu
ANALYSIS
So
1. What are the benefits and challenges for each digital transformation alternative outlined by Ram
for BPCL?
Ram gave two alternatives for BPCL’s digitalization strategy: full-scale and stage-wise digitalization. The
case discussion should commence by analyzing the advantages and disadvantages of each possibility in
terms of their prospective effects, both immediate and potentially lasting, on the different stakeholders and
the overall firm. The students should thoroughly explore the notion that impact is not only measured in
financials before and after digitization inside the organization but also in the brand’s perception, particularly
in comparison to its competitors. It would be more pronounced in a market where private firms have been
making substantial progress in recent years.
A full-scale digitalization approach would yield numerous advantages. First, improving efficiency would
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
5. What should BPCL do to make the digital transformation journey successful?
The digital transformation for BPCL could be noted in the following road map journey:
Assess the Existing Market Situation
BPCL had a head start in that it had the first mover advantage among state players regarding digitization in
the existing market scenario. It needed to assess the short-, medium-, and long-term goals for a successful
digitization shift. Short-term goals would include measures such as putting its services on top digital payment
platforms in the country. Medium-term goals included setting up digital payment mechanisms at its POS, i.e.,
distributors. In addition to this, it needed to work on adding a payment mechanism on its website and app.
Simultaneously, it needed to monitor demographics and successful and unsuccessful transactions.
The Case Solution Starts From page 5
PAYMENT SYSTEMS CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
On a Monday morning in February 2019, D. K. Ram, the executive director of liquefied petroleum gas at
Bharat Petroleum Corporation Limited (BPCL), reported to his office in Mumbai. A newspaper headline
captured his interest. It was reported that two delivery boys had been murdered in broad daylight while
n
returning to Priya Gas Service, the distributor of BPCL, after delivering gas cylinders in Siwan, a small town
in Bihar. Ram was intrigued by the headline and pondered the dangers these delivery people faced in
tio
delivering the gas cylinders to the final consumer. Profoundly troubled by the news, Ram contemplated
whether BPCL had adopted a limited perspective on the transition to digital transaction methods. He pondered
whether the BPCL should seek novel technologies to digitize last mile delivery. He wondered whether BPCL
lu
would implement an all-encompassing digitization strategy, or would the company choose to execute a phased
approach that entailed incremental growth in the digital realm?
So
OBJECTIVES
• Explain the use of technology by a firm to advance its digital capabilities and change its operations.
• Discuss the challenges faced by a firm during the digitalization process.
• Describe the five domains of digital transformation in the context of a firm’s digital initiatives.
• Analyze the actions necessary to make the digital transformation journey successful.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
ASSIGNMENT QUESTIONS
tio
1. What are the benefits and challenges for each digital transformation alternative outlined by Ram for
BPCL?
lu
2. How could BPCL employ digital technologies to transform its services to deliver better consumer value?
3. Identify the challenges faced by BPCL during its digital transformation journey.
So
4. Identify the five domains of digital transformation and discuss the various initiatives BPCL could take
to achieve positive outcomes from digital transformation.
5. What should BPCL do to make its digital transformation journey successful?
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
ANALYSIS
So
1. What are the benefits and challenges for each digital transformation alternative outlined by Ram
for BPCL?
Ram gave two alternatives for BPCL’s digitalization strategy: full-scale and stage-wise digitalization. The
case discussion should commence by analyzing the advantages and disadvantages of each possibility in
terms of their prospective effects, both immediate and potentially lasting, on the different stakeholders and
the overall firm. The students should thoroughly explore the notion that impact is not only measured in
financials before and after digitization inside the organization but also in the brand’s perception, particularly
in comparison to its competitors. It would be more pronounced in a market where private firms have been
making substantial progress in recent years.
A full-scale digitalization approach would yield numerous advantages. First, improving efficiency would
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
5. What should BPCL do to make the digital transformation journey successful?
The digital transformation for BPCL could be noted in the following road map journey:
Assess the Existing Market Situation
BPCL had a head start in that it had the first mover advantage among state players regarding digitization in
the existing market scenario. It needed to assess the short-, medium-, and long-term goals for a successful
digitization shift. Short-term goals would include measures such as putting its services on top digital payment
platforms in the country. Medium-term goals included setting up digital payment mechanisms at its POS, i.e.,
distributors. In addition to this, it needed to work on adding a payment mechanism on its website and app.
Simultaneously, it needed to monitor demographics and successful and unsuccessful transactions.
The Case Solution Starts From page 5
