INTRODUCTION: Frowned brows and JK Puri (the Executive Director of Optimization) sat down in the Delhi office to resolve the complexity of the issues they faced such as: Oil Sector and deregulated gas in India, • not familiar with the competitive environment, • not using IT properly. He was given the responsibility of properly positioning the information infrastructure that would give the Indian oil company the competitive boost it needed to operate in India's rapidly expanding market and deregulated oil and gas sectors. Furthermore there was an urgent need to renew the company's outdated and often failing systems and top management finally decided to approve IT re-engineering in the company which included the enterprise resource planning system. BACKGROUND OF THE CASE AND SALIENT FACTS The project called “Project Manthan” was planned to be implemented in two phases. The first phase will involve 99 sites and the second phase will involve 500 sites over an eight-year period and will be completed by December 2004. As of July 2003, sixty-six Phase 1 sites had already been completed. Then the problem occurred due to the operation of the SAP R/3 system. Response times had slowed significantly, resulting in long queues of tanker trucks at various locations. At one point users complained that the original procedures had been faster than the current system, which caused the problems to occur twice in many months. As all this progressed, Puri recognized that this would lead to serious business and organizational implications. Customers were not receiving front-end transactions on time and were being threatened with compromise. Puri at a certain point felt that pause... in the middle of the paper... of the system. Although they used so many information systems step by step, such as terminal documentation module, plant documentation module, FMS, MMS, OMNIS and so on, such systems lacked commonality, consistency and communicability. These systems cost them a great deal of time and money. Only when they started using the Enterprise Resources System did they get a huge improvement. The truth is that they still had many challenges to face when using the ERP system, but Puri, the executive director of optimization, found alternatives and solutions for each unique problem. The biggest problem is the poor response time when using the SAP R/3 system. The efficiency of the technological system is vital. Without efficiency, they would get a large number of customer dissatisfaction and disappointment. This is the main problem they have to overcome.