COST SAVINGS

British Petroleum

Hewlett Packard

ScinoPharm

In its pilot project to link virtual work teams at five drilling platform projects by satellite videoconferencing, British Petroleum Exploration (BPX) spent about US$13M and realized a US$40M savings from virtual teamwork in the initial 18 months of the pilot project.

After its pilot success, BPX rolled out virtual teamwork to other operational sites with equipment from British Telecom (BT) and technology skills training from our partner The Fifth Business (TFB). Aside from the anticipated savings at its videolink locations, BT and TFB also recorded an overall 10% reduction in BPX's travel costs for the first year.

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More savings are described on the BP-Amoco Case Study (click here to read more).

In the midst of its well publicized reorganization and worldwide reinvention, Hewlett-Packard (HP) became a virtual organization with a heavy telecommuting and virtual team presence. HP expects a third of their 82,000 employees to become telecommuters: able to work from anywhere on the planet. They expect the majority of this work to be conducted by working in virtual teams.

This same team telecommuting philosophy is demonstrated in their desktop product line of portable laptops and printers designed for a virtual world on the move. They estimate an annual ongoing cost of about $1,000 to keep HP employees equipped for virtual teamwork from home and an annual equipment savings of over $3,000 per HP employee.

ScinoPharm, VECO, and FuTai Engineering collaborated online to put a pilot-to-full-production pharmaceutical manufacturing plant online in record time (two years) and at a cost of US$125M with a savings of US$32M. Architects, owners, and builders from planning and construction teams communicated between the USA and Taiwan over a specifically designed extranet site.

From multiple locations in both countries, they exchanged documents and edited blueprints online. Regularly scheduled electronic status meetings allowed the teams to check their progress and share digital photographs of completed projects. The process was accelerated by the ease of exchange and savings were realized through reduced need for overseas site visitations.

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