ADNOC Distribution Sees Return on Investment in One Year and Eliminates Nearly 90% of Performance Bottlenecks in Business-Critical Applications
 
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ADNOC Distribution Sees Return on Investment in One Year and Eliminates Nearly 90% of Performance Bottlenecks in Business-Critical Applications

Abu Dhabi National Oil Company Distribution (ADNOC Distribution) is a United Arab Emirates (UAE) government-owned company that specializes in marketing and distributing petroleum products within the country. Established in 1973, ADNOC Distribution is one of the largest petroleum companies in the Arab Gulf Region, operating more than 250 filling stations (a number that is growing at 8% annually), 12 vehicle-inspection stations, and a vast network of convenience stores across the country.

ADNOC Distribution is one of the largest and more innovative petroleum companies in the Arab Gulf and Middle East, with 3,000 concurrent daily users and more than 250 million financial transactions annually at its filling stations. Responding to growing global demand for oil and petroleum products, such as fuel, diesel, and lubricants, it continues to expand its services in the region. ADNOC Distribution’s domestic business is growing 10% to 15% annually, and its filling stations are on track to double to 500 million transactions, annually, in the next two years. The company’s IT department is constantly challenged with improving business processes and costs while managing rapidly growing data volumes and adding desired business functionality.

ADNOC Distribution has been an Oracle customer for almost 20 years, and, following a period of sustained growth in 2011, it needed a more comprehensive database solution to improve productivity and business performance. With more than 3,000 concurrent system users and business-critical applications that run 24/7, the requirement for efficient database management is central to ADNOC Distribution’s support infrastructure. Running 10 databases and multiple operating systems on servers with lengthy processing times was reducing productivity, raising costs, and inhibiting growth.

The organization decided to implement Oracle Exadata Database Machine to consolidate to five Oracle Databases—supporting enterprise resource planning (ERP), online transaction processing (OLTP) applications, and business intelligence (BI) applications—onto a single database platform within a private database cloud. ADNOC Distribution substantially increased system availability and achieved massive performance gains across business-critical applications, while improving business processes across all functional units.

The Oracle Exadata implementation delivered several other advantages. The solution’s advanced data-compression capabilities reduced storage requirements by nearly 90% and supported business expansion, such as scalability support to operate the newly acquired Emarat service stations, without adding capacity. Simplified and flexible system maintenance and administration, including faster backups, freed up the IT team’s time to focus on other priorities and enabled faster time-to-market. The company achieved a return on investment within a year.

ADNOC Distribution also uses the Oracle Exadata platform as the foundation for an Oracle Database-as-a-Service solution. The company can provision new databases in just a few minutes by using standard templates for OLTP, data warehouse, storage configuration, and security parameter settings, greatly reducing manual configuration efforts and associated risks.

 
Increasing Sales System Performance, Saving Thousands of Processing Hours

A word from Abu Dhabi National Oil Company Distribution

  • “We are always looking for the latest IT technologies to power our 24/7 services, and chose Oracle Exadata Database Machine because it is a fully integrated, highly available engineered system ready for deployment, out of the box. Since our IT services use Oracle Database platform as a backend solution, we can operate any Oracle Database without restrictions and be prepared for business growth.” – Awad Ahmed Ali El-Sidiq, Senior Database Administrator, Abu Dhabi National Oil Company Distribution

ADNOC Distribution’s 24/7 sales systems support more than 10 core business applications and over 50 business-related IT services. By running its main sales, smart card, and retail C-Store sales systems on Oracle Exadata, the company realized significant increases in internal performance and saved several thousand processing hours, annually.

As a result, ADNOC Distribution’s main sales system experienced an average 15-fold performance increase, drastically reducing the time needed for sales-cycle closing, customer-sales reporting, and sales analysis. The company saves 1,596 processing hours per year in its sales system, alone.

Having one of the busiest OLTP systems in the Gulf region, with more than 20 million oil and gas transactions each month, the company’s smart card system saw similar performance gains. With a massive reduction in OLTP time, ADNOC Distribution served its smart card customers 20% faster than before, and reduced the monthly billing process from 220 minutes to only 10 minutes. In addition, ADNOC Distribution saw on average a 20-fold performance improvement in banking transactions, daily summary processing, and monthly closing, saving it 3,420 processing hours per year.

Consolidating ADNOC Distribution’s scattered data into a centralized warehouse was of strategic importance, with downstream markets looking to drive growth in retail by increasing nonfuel revenue. A15-fold performance increase led the company to save 10,976 processing hours per year across business processes, such as retail forms entry, retail report generation, and stores’ financial closings. For example, the company reduced the time needed for a purchase-order entry from four minutes to 45 seconds.

 
Optimizing ERP Performance and Improving Productivity and Customer Service

 
Improving Management Decisions

 
Maximizing System Availability across all Platforms

 
Reducing Data Storage Costs by 90%

 
Simplified and Flexible Database Maintenance and Backups

 
Faster Time-to-Market thanks to Enhanced Infrastructure

 
Boosting Business User and Customer Satisfaction

 
 

 
 

Challenges

  • Sustain business growth with a comprehensive database solution that can significantly improve productivity and business performance
  • Remove processing bottlenecks and curb rising costs generated by more than 3,000 concurrent Oracle Database users, business-critical applications that run 24/7, and multiple operating systems

Solutions

  • Deployed an Oracle Exadata Machine Quarter Rack to meet ADNOC Distribution’s consolidation approach, reducing capacity requirements by 90% and supporting business expansion, such as operating the newly acquired chain of Emarat service stations
  • Experienced an average 15-fold performance increase in main sales systems, drastically reducing the time needed for sales-cycle closing, customer sales reporting, and analysis
  • Served the company’s smart-card customers 20% faster and reduced the monthly billing process from 220 minutes to 10 minutes while achieving a 20-fold performance improvement in banking transactions, daily summary processing, and monthly closing, allowing the group to save 3,420 processing hours per year
  • Gained a 60x performance improvement on the supply-chain side—for example, the stock transaction inventory report runs in eight seconds, compared to eight minutes previously
  • Reduced database licensing costs by 40%, significantly lowering the total cost of ownership, by consolidating different database environments on a single platform
  • Eliminated nearly 90% of performance bottlenecks

Why Oracle

“We chose Oracle Exadata because we could consolidate our transaction processing and business intelligence onto one platform that delivers extreme performance. Competing solutions are just not capable of providing the same results. Besides, we appreciate the benefits of working with a vendor who delivers innovation through the integration of both hardware and software, which reduces the costs and complexity of our IT infrastructure,” Awad El-Sidiq said.

“Our Oracle Exadata high-availability architecture will help us meet business-specific service level agreements, which is a key factor for providing 24/7 services across the country,” said Ali Abdul Aziz Al-Ali, vice president, IT, Abu Dhabi National Oil Company Distribution.