SAP AG (SAP - Free Report) and Accenture plc (ACN - Free Report) jointly announced a new application for Upstream Operations Management. This new version will primarily enable the oil and gas companies to augment the precision of production data apart from identifying optimum production opportunities. However, the news failed to cheer investors and shares of SAP were down a marginal 0.95% on Nov 7, 2014.
This new application makes use of the leading SAP software, along with Accenture providing global capabilities for process design, system implementation and ongoing support services. This application is of utmost importance to oil and gas companies who need to recover production in conventional fields and underperforming unconventional wells.
Under such circumstances, SAP Upstream Operations Management has the ability to promptly classify underperforming wells and determine the primary cause to help companies develop suitable action plans to ensure maximum production.
This new application is also of great help to production managers of companies that are planning to invest in production management. This is because the application’s ability to identify and analyze deferred production is of vital importance to business organizations.
Further, this application substitutes multiple legacy tools that are used to support the end-to-end process for field data capture, production allocation and deferment management by consolidating operational processes and detailed production information into a single enterprise system. Moreover, through this enhanced application, field information can be automatically captured from real-time systems or entered manually using the latest SAP Fiori interface technology, thereby assisting operators in reducing the amount of time spent entering and managing data.
SAP currently holds a Zacks Rank #4 (Sell). Two better-ranked stocks in the sector include MicroStrategy Inc. (MSTR - Free Report) sporting a Zacks Rank #1 (Strong Buy), and Aspen Technology, Inc. (AZPN - Free Report) with a Zacks Rank #2 (Buy).