The Hong Kong and China Gas Company
The Hong Kong and China Gas Company Limited (Towngas) has
been one of Hong Kong's leading utilities for 138 years,
supplying town gas as well as providing maintenance and
inspection services to over 1.2 million households and
Looking for improvement
With an operating system developed back in the 1970s,
Towngas increasingly operated under a restricted and fragmented
environment. This had incurred rising overhead costs and
created inefficiencies. Accordingly, Towngas decided to
re-engineer its business processes with the aim of improving
competitiveness and the level of customer satisfaction. And
information technology was chosen as the enabler of this
SAP - the best in the industry
After careful examination of various vendors in the market,
Towngas finally chose SAP's enterprise software solution, which
not only offers a high degree of data integration but also
supports its strategic technology platform, Microsoft Windows
NT, allowing it to standardize on that single platform and
eliminate cross-platform issues.
Exploiting existing expertise -
consultants were key to success
To date, SAP's consultants implement eight SAP modules for
Towngas -- Financials, Controlling, Materials Management, Sales
and Distribution, Treasury, Asset Management, Plant Maintenance
and Project System.
"With a project of this sheer size and utility-specific
nature, you can't afford to get it wrong and that means you
need the best advice available." said Mr. Lee, Chief
Information Officer of Towngas. "That's why we went straight to
SAP, not a third party."
Tangible improvements with SAP
enterprise software solution
The SAP project has substantially increased order processing
and MIS management efficiency at Towngas and there is every
indication that the company will recoup all of its costs within
two years of going live.
"In fact, the new SAP environment is returning about 50
percent of the project costs annually in the form of savings.
Productivity is also up by more than 10 percent year-on-year,
which has in turn made the company more competitive and raised
the level of customer satisfaction." said Mr. Lee.
Facing the future with confidence
While the results to-date have been impressive, Towngas'
business redevelopment program has not finished, nor have its
plans for SAP systems. For example, the company is in the
process of implementing SAP's Human Resources module that will
enable the company to become compliant with Hong Kong's
Mandatory Provident Fund. The module will also provide an
enterprise-wide HR Intranet for employees to use and offer
managers to access such tools as competency models and skill