Lukoil Oil Company

Into on the company

Lukoil was formed in 1991 when three state-run, western Siberian companies named after the
respective town in KhantyMansi Autonomous Okrug that each was
based, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. The initials of the three
companies are preserved in the name Lukoil.[6] The central figure in the company's founding was
the Soviet deputy minister of oil production Vagit Alekperov.[6] He came to believe the only way
Russians could compete against western companies was to copy their business model. That
meant vertically integrating the three branches of the industry - exploration, refining, and
distribution - that were strictly separate under the old Soviet system. [4] It is one of the largest tax
payers of the Russian Federation, and the amount of taxes paid in 2010 was US$30.2 billion.
[7]

LUKoil was one of the first Russian companies to receive full listing on the London Stock

Exchange.[citation needed]
In 1994, Lukoil became the first company to begin offering shares of stock on the new Russian
Trading System.[6]
In April 2013, Lukoil agreed to buy Hess Corporations Russian unit for $2.05 billion.[8]

https://en.wikipedia.org/wiki/Lukoil#History
Into on the CRM
CRM stands for Customer Relationship Management. Mainly, the CRM Software allows businesses to
manage business relationships, the data and the information associated with them. Successful CRM
software solution are built around the people and relationships as in any business, you need to
establish strong relationships with your customers. You as a business owner connect with the people
who need your products or services.

CRM is a strategy and technology that is used to build stronger relationships between organizations
and their clients. An organization will store information that is related to their clients, and employees
will analyze it to use it in forecasting and making reports. Some of the strategies of CRM software are
planning for targeted marketing campaigns towards specific clients. The strategies used will be relying
on the information that is coming from the CRM system. CRM software solution is commonly used by
all kind of corporations that focusing on maintaining a strong relationship with their customers.
There are many reasons why CRM software has become the most important software in the last 10
years. The competition has become highly competitive in the global market, and it has become easier
for clients to switch companies if they are not happy with the service they receive or want the product
with the low price. One of the primary goals of CRM solution is to retain clients and protect them from
competitors temptations. When CRM is used effectively, an organization will be able to build a
relationship with their clients that can last a lifetime. It is so important to realize that CRM system
solution is more than just software.

This CRM introduction aims to explaining what the CRM is in a nutshell and making it easier to realize
the tremendous benefits of purchasing a Customer Relationship Management software that will help
drive more customers thus more profit towards you and makes your life easier.
Today growing businesses manage customer connections and information in a variety of ways. Some
use old fashioned note cards and Rolodex. Others store information on their mobile phone while on
the go or while having no means of accessing a Personal Computer or a laptop. Others use Excel
spreadsheets or Google documents and that is the most common case. While that may help in the
short term when you have a small team and dont plan on scaling up your business, if you want to
scale up for fast growth, it may be time to consider a CRM system to help you collect your precious
business data in one place, make it accessible via the cloud, and free up your time to focus on
delighting customers rather than letting valuable insights and information fall through the cracks while
you are on the go. A Cloud CRM System would be perfect for satisfying all of your business needs
while being able to access the important data you need from anywhere with an internet connection
available.
There are many things the ideal Cloud Based CRM Software should have; it should enable the
organization to find the factors that interest their clients the most. Any corporation must realize that it
is impossible for them to succeed if they do not cater to their clients desires and needs. Online CRM
software solution is a powerful system that will enable them to do this.
With CRM strategy, the customer is always right, and they are the core factor in the success of the
company. It is important for any corporation to use reports that are dependent on their clients data.
This will greatly tip the odds of success in their favor.
The Customer support cycle is an internal part of CRM system, when a client sent complaints; they
must be handled efficiently and in a timely manner. The corporation should also seek to make sure
those mistakes are not repeated. When sales are complete, they should be tracked so that the
corporation can analyze them from various aspects and produce reports. The analytical aspect of
CRM system deals with analyzing clients information and using if for business intelligence purposes.

Once thought of as a type of software, CRM has evolved into a customer-centric philosophy that must
infiltrate an entire organization. There are three important key elements to a successful CRM initiative:
people, process, and technology. The people throughout a company, from the CEO to each and every
customer service representative need to buy in to and support CRM. A company's business
processes must be reengineered to strengthen its CRM initiative, often from the view of How can this
process better serve the customer? Firms must select the right technology to drive these improved
processes, provide the best data to the employees, and be easy enough to operate that users won't
hesitate to use. If one of these three foundations is not solid and sound, the entire CRM structure will
crumble.
A brief introduction to the Customer Relationship Management is that its a strategy used to learn
more about customers' needs and behaviors in order to develop stronger business relationships with
them. After all, good customer relationships are the heart of any business success. There are many
technological components to CRM, but thinking about CRM in primarily technological terms is a
mistake. The more useful way to think about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing effectiveness, responsiveness and market
trends together to complete your business puzzle in order to bring the harmony into your work force.
If customer relationships are the heart of business success, then the CRM is the valve the pumps a
company's life blood. As such, Customer Relationship Management is best suited to help businesses
use people, processes, and technology to gain insight into the behavior and value of customers. This
insight allows for improved customer service, increased call center efficiency, added cross-sell and
upsell opportunities, improved close rates, streamlined sales and marketing processes, improved
customer profiling and targeting, reduced costs, and increased share of customer and overall
profitability.
Every business organization depends on customers for sustenance, the question is how to create and
maintain customer satisfaction. Every business communicates with their clients in many different

ways, especially in our technology rich and information based society. How we treat all of this
information is where CRM plays a key role.
CRM Software acts as a central repository of information on your clients and potential clients.
Customer relationship management software hones in on the relationship. As in many publications of
late on one to one marketing, cyclical selling and counselor selling the mainstay is the relationship
and how we recognize it.
Salesboom.com Online CRM tools use technology to organize information you receive about your
customers and record it in an orderly manner. Online, hosted, web based CRM software helps you
understand your customer needs and helps you recognize the processes in place to achieve your
business goals. Customer loyalty has a significant impact on both the top and bottom line. To maintain
customer loyalty is to be informed on where you have been and where you are going. The first step in
your CRM strategy is to take a snapshot of where you are currently. From this base you can design
streamlined, customized and fully automated business processes in Salesboom Cloud CRM.
Just think of Cloud Based CRM as a tool that when you open a customers account, you can see all
the consolidated data about that account: contact information, account history, sales, cases, invoices,
quotes, files, emails, faxes, letters, notes and any other pertinent information. All of this information is
readily available online, anywhere the Internet is available.
Salesboom.com harnesses the power of the Internet and places its Cloud CRM solutions at your
disposal. If you are doing business tasks anywhere, whether it is a sales person or the CEO that
needs a crucial piece of correspondence, phone number, quarterly forecasts or a simple brochure,
access is available through Salesboom.com. With the advent of these Cloud CRM tools your business
becomes more customer-centric. A customer-centric strategy is created with the intention of
increasing both your customer satisfaction, and customer loyalty.

http://www.salesboom.com/products/intro-intro.html
Reasons for the CRM

CRM for Sales & Marketing

Sales administration is absorbing too much time. This might involve compiling manual
forecasts, long winded quoting processes and duplicated effort to process completed orders.

Marketing budget isnt being used effectively because contacts are poorly segmented so
messages aren't targeted and result in unsatisfactory volumes of leads.

You dont know how many leads your email campaigns are generating, or how many
were converted into sales.

Too many sales opportunities are lost because no one kept in touch with prospects
through follow-up calls or lead nurturing messages.

You can't see a clear view of each customer relationship in one application which
includes their order history which is a barrier to identifying new selling opportunities.

CRM for Customer Service Teams

Customer churn is too high. Existing accounts arent segmented effectively and staff
arent prompted to proactively follow up and engage with customers.

Data is stored in different places which prevents anyone from seeing the full picture. This
results in poor communication and weak service when important customer's can be easily
identified and relationship information isn't readily available.

Service requests aren't being dealt with efficiency and customer issues are frequently
missed due to poor visibility and reporting of outstanding items.

Business Intelligence

Decision making is based on gut feel and guesswork because reports arent trusted, or
easily compiled.

You cant confidently predict cash flow, project delivery or production requirements
because supporting forecasts arent available, or are incomplete.

Key performance indicators arent being measured so some problems are being swept
under the carpet and high achievers arent consistently recognised.

Managing Contacts & Processes

Teams are using a mix of systems but none of them connect. As a result, many
processes are being duplicated and time is wasted throughout the business.

People are less effective when theyre away from the office because they cant get
access to the information they need.

Many processes and checks rely on the manual intervention of a small group of people,
or just one person, which are prone to failure when these individuals arent available.

Many workflows consist of repetitive, time consuming processes. Routine tasks are
taking too long to fulfil resulting in uncompetitive operational costs.

Your client data isnt secure. Any team member can easily copy customer lists into a
spreadsheet.
http://www.preact.co.uk/why-crm

Product profile of the Company

Lukoil is Russia's second largest oil company and its second largest producer of oil as of
2005.In 2012, the company produced 89.856 million tons of oil (1.813 million barrels) per day.[3]
Headquartered in Moscow, Lukoil is the second largest public company (next toExxonMobil) in
terms of proven oil and gas reserves. In 2008, the company had 19.3 billion barrels of oil
equivalent per SPE standards. This amounts to some 1.3% of global oil reserves. The company
has operations in more than 40 countries around the world.[4][5]

https://en.wikipedia.org/wiki/Lukoil#History
CRM Implementation Process

ERP Selection
Since there were two different ERP systems in the company, with one mail
system, it was difficult for the company to choose the right CRM system.
In the end, a relatively unknown system called Relavis was selected as the
preferred ERP system. Relavis was chosen because it tightly integrated
with IBM Lotus Notes which is the common infrastructure across the whole
enterprise. Relavis is a small company. The product is more economical
than a Seibel, SAP or Oracle. The system has modules to cater to
eMarketing, eSales and eService.
Scoping
The scope covered sales and marketing processes and followed the
service platform approach. A service platform integrates multiple
applications from multiple business functions (in this case, sales,
marketing, engineering), business units or business partners to deliver a
seamless experience for the customer, employee, manager or partner. As
shown in Figure 1, the new system (Relavis) was implemented to gain
integrated information from marketing and sales departments to provide
input to the ERP and Data warehousing applications and finally create
analytical reports to make better business decisions e.g. to understand
the sales results of specific leads, recommend better selling techniques

and target specific leads etc. The new application could track the status of
a lead through all stages of the sales and marketing lifecycle. Marketing
was working on branding strategies and segmentation. Events were
managed by marketing. These events would come up with a huge number
of leads for new opportunities and marketing wanted to handover leads to
sales. Sales filtered the leads from marketing and their own sources into
opportunities. Opportunities were defined as those having specific sales
persons assigned. These accounts were carefully evaluated to see if they
fit with companys overall strategy of increasing revenue and profitability
by solution selling. The Miller Heiman Process was used to capture
relevant information on the opportunity and the blue-sheets of Miller
Heiman were closely monitored by VP Sales and top management. The
non-strategic product sale was channelled to distributors and agents.
Consolidated forecast numbers were reviewed by senior management on
a regular basis. Orders that were received were executed

Design
A gap analysis was conducted since the CIO (chief information officer)
wanted a successful business implementation of the system vis--vis a
technical implementation, the sales and marketing process was mapped.
The as-is process described the cradle-to-grave aspects of the process.
The to-be process incorporated Relavis, together with other tools like
Miller Heiman eforms, The Horizon system for forecast, MFG/PRO system
for order execution and Datawarehouse Cubes for analysis. Relavis was
customized to include Business Intelligence a piece of software
extracting account specific information from past sales through the Cubes.

Implementation
Implementation involved reviewing the resource requirements and
availability, both in terms of hardware and software. The company had
Lotus Notes skills in the organization. The system was simple. Hence the
implementation was done using in-house resources. Training on the
product was arranged from Relavis and its partners. The system approach
involved a big-bang approach. After all, an audit and review should be
undertaken to determine the monetary as well as nonmonetary benefits
against costs incurred.
Impact
The system was packaged software, with very minimal customization. The
only additions to the software were the Business Intelligence part and
electronic Miller Heiman blue-sheet for strategic opportunities and goldsheets for Large Accounts. Some key users were involved in the decisionmaking. The project implementation plan was received well by all. The IT
department made sure that the project was driven by sales for the eSales
module and marketing for the eMarketing module. A steering committee
comprised of senior managers of each country (called REPCOTE or Relavis
Pacific COre TEam) was formed to drive the implementation. IT took the
role of being facilitator. With the implementation, sales believe that the
whole process needs to be changed. Business Process Maps with the
process, key performance indicators (KPIs), responsibilities and systems
were drawn up for possible scenarios. After training, in local languages
(Japanese, Korean, Mandarin-Chinese), the users were comfortable. A precursor course of general Lotus Notes training was offered to make sure
that users were comfortable with functions such as calendaring, to-do
lists, etc. An audit of the implementation is planned for the end of the
year to find out key success factors and lessons learnt from the
implementation. Besides facilitation of documentation about effectiveness
of the new system, this audit also provides a baseline measure for future
reference. It is best if the audit can provide information about monetary
and non-monetary benefits. For example, a balanced scorecard (BSC)
approach, a framework developed by Kaplan and Norton, can be adopted.
The BSC is organized around four different perspectives: financial;
customer (user, or internal customers); internal business processes; and
innovation, learning and growth. This approach provides a balance
between quantitative and qualitative outcome measures. This project
provides company a chance to look for the potentials of virtual office,
business process reengineering and knowledge management activities.
Knowledge is best to capture in work groups and projects by direct
definition by humans, extraction from successful practice, verification and
experience [41]. The potential benefits derived here should not be
underestimated.
http://uni-obuda.hu/journal/Mishra_Mishra_20.pdf

Implementation of the CRM. In the company

Whether you have chosen a CRM vendor or not, it is a good idea to prepare
for the organizational challenges you may meet:
What does it involve of resources?
Do you need to make organizational changes?
What are the goals or benefits you expect to get out of the CRM
system?
Do you want a cloud or a server solution?
When you implement a new IT system, the whole organization needs to be in
sync. It has to be a combination of a set of official guidelines and personal
involvement. A good project manager is essential and the way to success lies
in good internal communication. A CRM system is not just technology; it is a
strategy and a philosophy. Here are 7 tips of things to consider when
implementing a CRM system:

1.

Anchorage in the top management

It may sound obvious that a project that involvers all parts of an organization
needs top management involvement, but in order to inspire and build
credibility, top management is crucial. They drive the opinion and culture in the
organization and their early adaption gives a synergy effect on the whole
organization. So get them involved!

2.

Project manager

When you are implementing a new CRM system the most important person is
the one that has the overall management and the mandate to run the project.
The selected person should drive the project so that the steps get done and
the goals are met. It does not have to be someone from the management, but
a do-er with enthusiasm, passion and focus on details.

3.

Super-user

A super-user or a CRM responsible is not the same as a project manager.

This is the person in your organization which is assigned as the super-user of
your new system. He or she just loves the new system and wants to learn
everything about. When others in your organization have problems or need
support, this is the internal person to go to, the know-it-all. This person is
also often the contact point towards the vendor, and will be the first to get
information about new version etc.

4.

Launch with a BANG!

The mantra for real estate agents is location location location. For the
project manager it should be motivation motivation motivation. Sell it!
Internal marketing is sometimes underestimated, but when implementing a
new CRM system you need to sell it to your colleagues. Make a cool article on
your intranet, a poster, a special launch t-shirt, internal launch party etc. It
doesnt have to cost a lot of money, but something to mark the launch and
create enthusiasm. But unfortunately you cant rest on your laurels, now the
lobbing starts. Walk around, ask people how its going and help them along.

5.

Internal guidelines

As mentioned before in other blog posts on this site, a CRM system is only as
good as the data put into it. It is essential that some common guidelines are
set. For example how to include new company data or register a sale. If Trine,
Steven and Marie all register their sales in the CRM system, but Michael
doesnt, then it is difficult for the sales manager to take out correct sales
statistics. The guidelines should be written down and can be published for
example on your intranet. Or if you start with SuperOffice CRM, use our
collaboration tool Audience.

6.

Training

We are all different; some people get a kick out of a new system and start to
use it right away. Others may be skeptical to a new way of working. The
project manager should have strategies to handle both user groups. You can

choose classroom training from a vendor, or if you have assigned an internal

super-user he or she can do the training in your office. You should also include
an introduction to your CRM system in the internal training program for new
employees. New employees will then, form the start, get on the right track.

7. Strategy
CRM is, as mentioned earlier, not just technology but a philosophy. When
you implement a CRM system your whole organization needs to re-think all
routines and each individual needs to change their work pattern. This is a
challenge and requires a strategy to cope with negative attitude on all levels.
Despite the fact that it over the last 10 years have been written a lot about
CRM, clarifying the shift from only a sales perspective to a 3600view, many
people still look at CRM as only a sales tool. You might encounter attitudes
like in Finance we work in a different way, and have no need for a CRM
system or I have all my emails saved in folders in Outlook, so I know how to
find them. Prepare yourself! I can give you a lot of good arguments for
implementing a CRM system, but in my book the no. 1 argument is: When in a
workplace the company owns your production, and a CRM system ensures
that all documentation is stored in one common database owned by the
company.
http://www.superoffice.com/blog/7-tips-to-a-successful-implementation-of-your-new-crm-system-2/
Advantages and disadvantages of CRM
SaaS = Software-as-a-Service

CRM SaaS Advantages

SaaS CRM solutions are a catalyst for how organizastions change their use of front office software systems and put
users in control of customer facing business systems for the first time. SaaS enablement of software utilization
without extended implementation time frames, software modification without IT bottleneck, world class infrastructure
without capital expenditures and 24 by 7 uptime without around the clock staffing are a few of the compelling
advantages of SaaS. Other key benefits include the following:
Low cost of entry and lower total cost of ownership (TCO) - elimination of capital expenditures and dramatic
reduction in IT salaries
Vested vendor interests - if the application utilization is not successful, the vendor loses the customer
revenue opportunity
Much lower risk - faster implementations and outsourced expertise dramatically lower risk

 A more powerful and secure IT infrastructure - few organizations can match the infrastrucure and security
investments made by SaaS vendors

CRM SaaS Disadvantages

SaaS isn't a silver bullet or magic - and will not provide the same benfits to all usuers.
Some organizations find it very difficult to relinquish control or trust third parties to manage their applications
and data
Some vertical markets require industry specific business applications for which SaaS solutions are not
available
Organizations without clear Customer Relationship Management objectives and defined business processes
will be no better off with a CRM SaaS solution than with an on-premise solution.

http://www.online-crm.com/saas_advantages_disadvantages.htm
The advantages and disadvantages of CRM on-premise solutions are wide spread; this form of
CRM Software has been in use for a longer period of time than Web based/Cloud CRM Software
online. This was due to the inability of technology to provide solutions online in a manner sufficient to
small, medium and large enterprises. An advantage of on-premise CRM Software was that it was
installed locally within a corporation; no outside networks were needed in order to operate, meaning; it
did not need to wait for Cloud Computing to catch up. This advantage also comes with a large
disadvantage; every computer within the business network requires the CRM Software to be installed
directly on it and to be connected via network cables to all other computers. This would cause an
extremely long roll out time for new CRM Software implementation as well as a great expense.
Comparing the advantages and disadvantages of CRM in both of its forms begins with roll out time.
Traditional on-premise CRM Solutions take a long time to roll out and need to be directly networked,
on the other hand, Web based/Cloud CRM Software online requires no networking cables or software
installation; this is possible because of the CRM Software-as-a-Service model (SaaS). A great
advantage of web-based CRM is that all data is stored within a single data repository and accessible
from any computer in the world with internet access. This means you will never have the
disadvantage of not having the right files while traveling or working in the field. Another advantage of
Web based/Cloud CRM Software online is the security of your information; every measure is taken to
protect the data warehouse and information is further secured by creating frequent backups. While
working with company data, all information is transferred over an encrypted page and although all
employees with user access can view company data, a role hierarchy with customized security
settings may be set.
In the age of mobility, Cloud CRM gives you the full capacity to control your data, company processes,
employees and more from anywhere around the globe by enabling you to access the system from any
mobile device ( iPhones, iPads, Android phones, Windows mobile phones, etc ). Web-based/Cloud
CRM uses the latest technologies to facilitate the business processes for your Sales, Marketing and
Customer Support teams. It is also proper to mention that with Salesboom Cloud CRM you can easily
manage other aspects of your business such as HR, PR, and Inventory Management through the
same system. Giving you the choice to manage all aspects of business in only one place is what
makes us proud and allows us to be one of the top Cloud CRM vendors in the global CRM market.

http://www.salesboom.com/crm/crm-software/advantages-and-disadvantages-crm.html

issues and challenges faced

Lukoils plans to increase production at its West Qurna-2 oilfield in southern Iraq have been
curtailed by the government because of difficulties in adjusting the countrys export crude blends,
an executive said yesterday.
West Qurna-2, in which Russias Lukoil has a 75 per cent stake, produces heavy oil.
Iraq traditionally exports Basrah Light, a crude that includes heavy blends. But an increase in
production of heavy crudes such as the one from West Qurna-2 has affected Basrah Lights API
gravity, which is a measure of the crudes density.
The issue they [Iraqi authorities] are facing is because it [West Qurna-2] is heavier than Rumaila
and Zubair [oilfields], it is making the overall blend a little bit heavier, said Gati Al Jebouri, senior
vice president at Lukoil Overseas. As a result, to maintain the stability of the export blend at the
moment they are curtailing production at a number of fields, not only West Qurna-2.
He was speaking on the sidelines of the Middle East Petroleum and Gas conference in Abu
Dhabi.
Rumaila and Zubair are southern oilfields.
Currently, West Qurna-2 oil production is little more than 350,000 barrels per day, has a
production capacity of 450,000 bpd and a target production plateau of 1.2 million bpd, he added.
To solve the heavy blend problem, Somo, Iraqs state organisation for oil marketing of oil is
promoting a new blend, Basrah Heavy, besides its traditional Basrah Light crude, following
complaints from traders about the quality of Basrah Light.
Somo released this month the first official selling price for the Basrah Heavy grade for May
loading.
It has to do with Iraqs desire to maintain a stable export blend, which was creating significant
difficulties at the end of last year and early this year, said Mr Al Jebouri. They are currently
working hard on getting the Basrah Heavy, but to do that SOC [South Oil Company] has to make
some changes and create infrastructure in the south to enable the Basrah Heavy to be exported.
They are forecasting to do that through one of the SPMS [single point moorings] and they are
hoping to do that in the next two months.
Mr Al Jebouri expects Iraqs oil production growth rates to slow down in 2016 and 2017 because
of the oil price slump. International oil companies (IOCs) such as Lukoil that are developing the
countrys large fields are paid in oil that is equivalent to the money they are owed in cost
recovery and remuneration fees.
This means that Iraq needs to give IOCs about double the amount of oil compared with last year,
when oil prices were twice as much as today. Brent has dropped from about $115 in June last
year to about $60 per barrel owing to an oil supply glut and weaker demand in Europe and Asia.
Around 25 to 30 per cent of their [Iraqi] budget is paid as cost recovery for IOCs. Thats not
sustainable, said Mr Al Jebouri.
That is why the Iraqi government and IOCs are in talks to amend their working programmes.
Every year we are effectively working with the Iraqi government, with the ministry of oil to agree
what development they are capable of financing and what development they would like to
achieve, said Mr Al Jebouri. In this process of reviewing the work programmes and reducing the
capital expenditure, it will lead to a postponement in production. I see significant reduction in
those [oil production] growth rates for 2016 and 2017, unless there is an increase in oil prices.

Lukoil is also looking at investing in Iraqs petrochemical industry and the Al Nasiriya integrated
refinery and field project, he added.
The Al Nasiriya project envisages the development of the Nasiriya oilfield, which has more than 4
billion barrels of oil, alongside the construction and operation of a 300,000 bpd refinery.
http://www.thenational.ae/blending-problems-slow-lukoil-plan-to-boost-iraq-production