Six IT Decisions

8/11/2019 Six IT Decisions

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Six IT Decisions your I.T.

People shouldnt take-Examples

Submitted by-

Monika Reddy A028

Kriti Verma A055


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Exide- The company

Indias largest manufacturer of lead acid storage batteries and

biggest power storage solutions provider Applications cover telecom, railways, travel, defense, power, and even

renewable energy.

Major segments include

Automotive(Flagship Brands EXIDE, SF, INDEX and SONIC )

Industrial(Flagship Brands Exide, INDEX, SF, CEIL and CHLORIDE)

Submarine(high-end submarine batteries -Type 1, 2 & 3)

Financial Performance Over Last Decade

Top Line grown by - 21%

Operating Profit (EBITDA) grown by18%

PBT grown by25%

Net profit grown by26%

Market Capitalization grown by45%0

1000

2000

3000

4000

5000

6000

7000

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

TurnOver - Growth

Net Sale Rs in

Crores


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How much to spend on I.T depends on he strategic role I.T. has, in the firm & this need to be clarified

beforehand by the non-I.T managers

Q1. How much should we spend on I.T?

Conducted initial planning sessions to confirm

overall project scope

Reviewed and evaluated statewide

administrative systems in use

Reviewed documentation of the States

hardware/systems infrastructure

Conducted interviews with key administrative

systems stakeholders at the enterprise-level

With assistance from State staff, quantifiedthe

major areas of savings and efficiencies to be

derived from business process improvements

Calculated and documented the estimated

costs of implementing and maintaining astatewide ERP system

Prepared this written report documenting the

results of study

Review of

business plan

Developing

IT strategy

Team

formation

ERP package

selection

AS IS , TO

BE study

Cost-benefit

analysis

Roll out

Pilot

implementation

Post

implementation review


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This depends not only on the short term ROI forecasted, but also, on the long term impact of IT

implementation on the whole business

Q2. Which business processes should receiveour I.T. dollars ?

Complex costs calculation

Cash flow management was

very poor

Huge administrative overheads

Not able to implement the

flexible pricing based on

market demand/ fluctuation

The regional sales patterns

were not readily available

Unorganized finished goods

distribution ( Supply Chain )

Not able to establish closer

relationship among sales,

planning, procurement,production and distribution

Poor in planning in the enterprise wide

resources :

multi-location manufacturing units

multi-location procurement sources

Cycle time was very high in order to cash

cycle

Not able to analyze demand fluctuation

Gap in Information and Communication driven

Technology was needed

Not readily available the real-time, real-world, real

information

Integrated MIS for faster decision making

Unable to explore new market / usage

Warranty tracking was very difficult

Decentralized process ownership

Q3. Which I.T. capabilities need to be company wide?

A trade off between standardization &

flexibility needs to be made


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A trade off between functionality & speed of delivery must be made

Q4. How good do our I.T. services really needto be?

Implementation Partners :Software ( SAP R3 )PwC (Price WaterHouse Coopers )

Hard Ware vendor : HP

Network : Airtel

Methodology: ASAP (tailor-made tool for an effective, fast, and well-organized

SAP R/3 implementation. The complete implementation process is well

documented. )

Q5. What security & privacy risks will we accept?

A trade off between data security & convenience of process execution is to be made

Functional committee is

responsible for deciding the

security levels at respective

units


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Failure usually has to do with change management in business, rather than the I.T.

implementation failure, hence accountability must be there

Q6. Whom do we blame if the I.T. initiativefails?

Role of Steering

Committee

Role of Functional

Committee

Role of Project Team

Provide continuousmanagement

commitment and

support

Provide functionalarea commitment

and support

Taking Final approvalof AS-IS process

Resolve barriers to

progress

Resolve issues Identify process gap


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BPCL

Company overview

BPCL is one of the leading companies in Indian in the petroleum sectorIt mainly operates in two segments

downstream petroleum, which is engaged in refining and marketing of petroleum

products, and exploration

production of hydrocarbons.

It has always enjoyed the image of a progressive organization

Scenario

In the oil & petroleum industry where the stakes are high and competition fierce, every

company has to find a way to stay a cut above the rest.

Companies may choose to differentiate themselves through their operations, their

infrastructure, their HR policies, technology used etcBharat Petroleum Corporation Limited (BPCL) decided that for it to continue as one of

the market leaders in India it would have to revamp its existing IT infrastructure.

BPCL chose an enterprise-wide integration through Enterprise Resource Planning (ERP)

to reach this objective.


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Q1. How much should we spend on I.T?

Customer Service and Customer Satisfaction

(CUSECS) team

Project Entransan enterprise wide transformation to have a cutting edge over the

competitorsTo meet the challenges of the deregulated market by having standard, flexible and

integrated IT solutions

CUSECS (Customer Service and customer satisfaction) team formed to have a customer

centric approach across the 6 SBUs with no IT developers as a part of the team

Q2. Which business should receive our IT dollars?

HR andquality

managementSales anddistribution

Materials

management

Personnel

administration

The CUSECS team identified 4 processes

as critical to achieve their missionAlso a change management initiative was

undertaken to ensure smooth flow and

implementation of the process


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Q3. Which IT capabilities need to be companywide?

Q4. How good the IT services really need to be?

Departments

BPCL had manydepartmentswhich worked asindividual silos

SBUs

Formed 6 SBUs

retail, refinery,lubricants, LPG,aviation,industrial andcommercial

Centralization of the

organization to enable cost

savings and an enterprise wide

application

The new organizational

structure helped the company

to transform itself into a

learning organization

Focus on quick implementation to have the first mover advantage

Outsourced the process of implementation

Detailed analysis of vendors before choosing, emphasizing on relevant experience

SAP chosen as the vendor for implementation, the product chosen was SAP R/3 which

was tailored to suit the company requirements


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Q5. What security and privacy risks will weaccept?

Q6. Whom do we blame if an IT initiative fails ?

Cusecs Team

Complete transparency was ensured through the supply chain through IT processes

Get everyone onboard

Make sure someoneremoves theroadblocks

Check the rear viewmirror


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Six IT Decisions

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