Final MRP_Mradul Raj Pachouri

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February 2, 2010 MANAGEMENT REPORT ON RESEARCH PROJECT

R o l e o f I n f o r m a t i o n T e c h n o l o g y i n t h e f i e l d o f M a r k e t Page 3

ACKNOWLEDGEMENT

I Mradul Raj Pachouri , enrollment number 08BS0001794 , am extremely delightedto work on the project on Role of Information Technology in the field of MarketResearch and Business Intelligence .

I am indebted to Prof. Abhilas Pradhan (Faculty Guide) for all his teachingcontributions, instructions and timely recommendations to me during various stages of

my project, in absence of which I would have not been able to accomplish my projectwith quality standards.

I express my deepest sense of gratitude, profound respect and sincere thanks to Prof.Dhananjay Keskar, Director, ICFAI Business School (Pune) , for providing me thiswonderful opportunity.

I am also appreciative of all that I have learned from working with various experts andindustry executives and to all those who have helped me directly or indirectly duringmy project for sharing their insights and experience.

Finally, I would like to thank my parents who are my inspiration and whose blessingshave made me reach this landmark where I am today.

Mradul Raj Pachouri08BS0001794


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Project ProposedRole of Information technology in the field of marketing research and businessintelligence.

Description of Project in brief With every dawn, a new technology takes birth. Human race has learnt many things by easyaccessing and sharing of information with others that transformed whole world for him. Computerand information technology shrank the world. Gathering information about any issue is just at oneclick distance. Many things changed, Word of Mouse is now more powerful than Word of Mouth.Ways of learning are also changing drastically. People need to just realize that some information isneeded by them and just using their smart boxes they can acquire a whole chunk of data. This era isfor knowledge workers and information society. There is no space for people that doesnt haveanswer to the questions like what, how, from where they can get information and knowledge theyneed. This paper throws light on transformation of traditional way of knowledge acquisition to new,easy, faster ways that can pound you with oceans of information regarding any issue. Learning ismore important rather than just clicking the mouse. This research effort will try to analyze the recentstructure and innovative strategies used in the field of Market Research and Business Intelligence. Itwill uncover innovative efforts of pioneer companies in the field of knowledge management,Proximity Marketing and social Media.

Objectives of the Project To understanding the need of Information Technology for Surviving in 21st century. To understanding how information technology helping the organisation for understanding the

complex market, customers & their needs by new and innovative ways of MarketingResearch.

To find how Information Technology can create the value or excellence for any organisationby Updating its Business Model.

To find the variables that plays major role in implementation of Business Intelligence for anyorganisation.

To analysis different new innovative ways that companies are using to create the value by thehelp of information technology, Like Proximity Marketing and Social Media.


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Methodology

Whole efforts will be based on secondary research, exploratory and case based, which will try toexplore the role of information technology for creating business intelligence. It will be includingcases of different organisations, their success story due to proper implementation of BusinessIntelligence like TATA Motors, Casas Bahia etc.

Introduction In the age of three, I used slate and choke for learning many things. At the age of nine, I started usingpen and learnt many things. At that time I started believing power of pen. At the age of fifteen, I camein contact of smart box. It was new for me at that time. I was not aware that this smart box willremain with me for such a long time and going to help me learn a lot. I started using it for games,music, and bit of programming. As technology is about doing all those things which you were not

able to do earlier, or doing it in more efficient manner, adding more comfort and leisure to the life of mankind. Intranet, Ethernet, extranet, Internet, infrared, Bluetooth and Wi-Fi all these things justarrived in a very short span of time and many more are on their way. Everyday a new technologytakes birth and replace many older ones. Many things have changed; even I can definitely sayprocess of learning has also changed a lot for me as well as big multinational giants likeCitibank, Casas Bahia, Walmart, Tata Motors etc.

Lord Rama went to gurukul for knowledge, I went to school for knowledge. In this information era,there are oceans of information available on internet. Distance between information and human isnow just of one click. Easy accessing and sharing is possible that due to this

information technology. But whenever there is an excess, there is a trouble. There is lot of differencebetween three terms data, information and knowledge. Data is just like raw grocery, information islike a well cooked food and learning or knowledge is all about having that tasty food.This era is of knowledge worker. Knowledge is like a heart for any organization t o survive. In thiscompetitive market organization can survive with proactive approach which comes from knowledgeand wisdom. There is no place for people that can t realize their need of information and put theirefforts for satisfying their need. Life itself is all about learning. You have to learn from day one to lastday of yours. Information literacy can solve your purpose if used in a proper way. All organizationswant their human resources with information literacy skills. Whether it is Marketing, Finance, HR orOperations these skills are needed. Nowadays Blogs, online feedback, online newsletters, onlinepoling, social community, Video conferencing, and interest groups are very common on theplatform of internet used by different organization for developing a system of TotalKnowledge Management. Organizations appreciate the talented knowledge workforce and put their wholehearted efforts for others to put them in this category. Companies are maintaining healthy andsophisticated portals for their employees as well as their customers. Experimenting and learning is acontinuous process for any learning organization but learning from failures are important. It is verywell said by someone that successful failure is better than unsuccessful success. Organizations


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should have a right frame work and attitude to learn from its failures.

COP community of practices is also new concepts that smart organizations are applying

nowadays. Members on these community shares their past failure and success experience that makeother employees learn what to do for success and what not to be done for failure. Organizations aretrying to develop more learning-friendly environment where their human resource can get explicit aswell as tacit knowledge. Information technology made everything possible. Experimentation withprototype is also a very good example of knowledge developed strategy that can increasethe chances of success and decrease the risk and loss due to failure. Now Organization can alsotrack their customers and their untold wishes by analyzing their pattern of search they had made. Itcertainly adds a great value to the business. There are many ways by which a customer can get acloser look to the product which he wish to buy , can compare that with its substitute or competitorproduct and take a wise decision without wasting a lot of time. So this is just like a win-win situation

for both the organizations and their customer.

Concept of web based discussion board is also there to help the organizations in a better way. Manytypes of software are available to serve better information literacy and efficient knowledgemanagement. One hosting platform can be taken up and cost of maintaining such a discussionboard is ve ry less. One Linux server hosting with MySQL database will cost a priceof about $5 per month.phpBB.com, VBulletin, Ikonboard are some softwares that comes underthis group which are definitely serving cost saving and more efficient way of informationacquisition for any organization.

Highly scalable, powerful and customized open source bulletin are also available. Document / Content publishing tool are also some tools that are now available for organization bywhich organization can publish Documents in the internet or intranet portals of the organization.Many organizations have this system where authors can post their best practices, lessons learns,external leanings, research papers etc to a web based content or document management solution. Asworkforce can be of diverse background they can also put there documents in different languages thatprovide it global acceptability which again make this more powerful than ever before.

By putting investment in a good web server, Programming language and data, Network, KM portal

web based discussion board or forum, Blogs and expert system organization are planning to get abetter return due to this strong base of information literacy and knowledge management. This seems agood long term planning. In windows platform share point solution facilitates collaboration within anorganization and with partners and customers. However such a tool can be developed inhouse also with local requirements and many organizations do this and integrate them within theirintranet. As everything is on network it can provide a better penetration as well as enabling them tocreate a better, Informed, Knowledgeable globalised world. This is a world for survivor of the fittest.Information literacy and knowledge management is going to change the whole system of literacy and
http://www.phpbb.com/http://www.phpbb.com/


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knowledge acquisition. Finally I can say we do understand the power of this smart box andtechnology associated to it.

Caselet : Tata Motors Using ERP

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in eachsegment, and among the top three in passenger vehicles with winning products in the compact,midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer.

The company's 23,000 employees are guided by the vision to be "best in the manner in which we

operate best in the products we deliver and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company'smanufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow(Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliancewith Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon(Maharashtra) to produce both Fiat and Tata cars and Fiat power trains. The company is establishinga new plant at Sanand (Gujarat). The company s dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in

India.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Throughsubsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailandand Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brandsthat was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, SouthKorea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Companyhas launched several new products in the Korean market, while also exporting these products toseveral international markets. Today two-thirds of heavy commercial vehicle exports out of SouthKorea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, areputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.Hispanos presence is being expanded in other markets. In 2006, Tata Motors formed a joint venturewith the Brazil-based Marcopolo, a global leader in body-building for buses and coaches tomanufacture fully-built buses and coaches for India and select international markets. In 2006, TataMotors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand tomanufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors(Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in


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Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961. The

company's commercial and passenger vehicles are already being marketed in several countries inEurope, Africa, the Middle East, South East Asia, South Asia and South America. It hasfranchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal.

The foundation of the company's growth over the last 50 years is a deep understanding of economicstimuli and customer needs, and the ability to translate them into customer-desired offerings throughleading edge R&D. With over 2,000 engineers and scientists, the company's Engineering ResearchCentre, established in 1966, has enabled pioneering technologies and products. The company todayhas R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. Itwas Tata Motors, which developed the first indigenously developed Light Commercial Vehicle,

India s first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenouspassenger car. Within two years of launch, Tata Indica became India s largest selling car in itssegment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's firstindigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the worldhave been looking forward to. The Tata Nano has been subsequently launched, as planned, in India inMarch 2009. A development, which signifies a first for the global automobile industry, the Nanobrings the comfort and safety of a car within the reach of thousands of families. The standard versionhas been priced at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg space andhead room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipeemission performance too exceeds regulatory requirements. In terms of overall pollutants, it has alower pollution level than two-wheelers being manufactured in India today. The lean design strategyhas helped minimise weight, which helps maximise performance per unit of energy consumed anddelivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxideemissions, thereby providing the twin benefits of an affordable transportation solution with a lowcarbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, inkeeping with its pioneering tradition, by unveiling its new range of world standard trucks calledPrima. In their power, speed, carrying capacity, operating economy and trims, they will introducenew benchmarks in India and match the best in the world in performance at a lower life-cycle cost.

In June 2009, the exciting new range of premium luxury vehicles from Jaguar and Land Rover wereintroduced for the Indian market. These include the Jaguar XF, XFR and XKR and Land Rover


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Discovery 3, Range Rover Sport and Range Rover.

The years to come will see the introduction of several other innovative vehicles, all rooted in

emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive solutions,construction equipment manufacturing, automotive vehicle components manufacturing and supplychain activities, machine tools and factory automation solutions, high-precision tooling and plasticand electronic components for automotive and computer applications, and automotive retailing andservice operations.

True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate

Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged incommunity and social initiatives on labour and environment standards in compliance with theprinciples of the Global Compact. In accordance with this, it plays an active role in communitydevelopment, serving rural communities adjacent to its manufacturing locations.

BackgroundTata Motors (NYSE:TTM) is a key business of India's Tata Group, a $22 billion (in revenues)conglomerate with primary interests in steel, IT, commercial and passenger automotives, chemicalsand telecom. The 140-year old Tata Group, feted by some as India's General Electric, is highlyrespected not just for its business prowess but also for its various social and educational projects that


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have contributed immensely to India's development.

Its holding company, Tata Sons, is 65% owned by charitable trusts, which doled out over a billionrupees last year - and trusts in India are not tax avoiding schemes like in the U.S. Recently, the "Tata"brand was valued at $5.5 billion, and has mindshare with "trust" - a Tata product is consideredreliable and a value for money, more than anything else. All group companies pay Tata Sons a fee forusing the Tata name.

The Tata Group's Chairman, Ratan N. Tata, is recognized as the leading Indian businessman of hisgeneration. Taking over as chairman in 1991 during a time of tumultuous change in India's economiclandscape, he undertook a bold restructuring and reorganization of the group, and is widely givencredit for the group's transition and success post the economic reforms of 1991 that made the Indianbusiness environment far more competitive. Ratan Tata has repeatedly spoken of targeting whatUniversity of Michigan professor, C.K. Prahalad, might call "the bottom of the pyramid" - in otherwords, the market opportunity offered by the vast and voiceless masses of India. TTM ManagingDirector Ravi Kant has vast experience in the Indian automotive market, and is a veteran of thecompany, the right man in the right place at the right time.

TTM is key growth business for the Tatas, and currently contributes $4.6 billion or about 20% to thegroup's total revenue. It manufactured only heavy and light commercial vehicles, and its foray intopassenger cars has been driven aggressively by Ratan Tata. Tata trucks dominate the Indiancommercial vehicle landscape, having approximately 65% market for medium and heavy commercialvehicles (MCVs and HCVs), and 55%+ share for light commercial vehicles (LCVs).

For passenger vehicles, the numbers are less impressive, with teething problems on some of itsmodels (and stiff competition in the Indian passenger car market), such as the Tata Indica (compactcar). TTM also offers the Tata Safari SUV and Tata Sumo MUV, and also has a presence in the mid-size car segment, with a slightly modified version of the Indica, called the Indigo. TTM's mostambitious project, the $2200 (Rs. 1 lac) car is due out by CY 2008, and is by far Tata's biggest pushinto the passenger car segment. There will be no competitor at this price point. The compact car willhave a 30 BHP engine, and will seat 4-5 people. The target market is the "bottom of the pyramid" - orthe lower middle-class to middle class Indian, who is looking to change to a car from a two-wheeler.With India's burgeoning middle class of over 300 million people, the car has a large market. Itscustomer is less in cities like Bombay and Calcutta, than the smaller towns and perhaps even villagesof India, true to the chairman's vision.

Information Technology backgroundAt Tata IT is seen as an important global function. Organizationally it is incorporated into themanagement services division. Mitras (CIO) task is primarily to provide each area wi th IT resourcesand tools required and to analyze whether Tata Motors should implement new technologies and ITsolutions. He draws up a three year plan in close cooperation with management and TataTechnologies, a fully owned subsidiary of Tata Motors providing business and IT services. This plan


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determines the basic IT strategy. The details are finalized in an IT balanced scorecard in which thevarious projects are defined for the next 12 months and listed in order of priority. Joint teams from ITand business are then charged with executing these plans.

In general, a distinction is drawn between project work and maintenance tasks. Tata Technologies isresponsible for both. If required, external experts are consulted from relevant areas. Any differencesof opinion about the long term perspectives of specific requirements are resolved together with thebusiness team. Mitra sees himself as an arbitrator in this process. The focus is a balance betweenbusiness benefits and the required corresponding investments.

Currently the company has deployed a gigabit backbone network in its Engineering Research Centreand manufacturing plants. Key locations have a high level of redundancy for accessing businesscritical applications. WAN architecture is a mix of dedicated intercity / intra-city links, VSATs orVPN over service providers' network. LAN and WAN are monitored continuously with monitoringtools such as Cisco Works, Packeteer and other advanced tools.

Reasons for Implementation of ERPTata Motors had its manufacturing plants located in Pune, Jamshedpur, Lucknow. Its R&D centerswere located in South Korea, Spain and UK. The corporate office of Tata Motors was located inMumbai.

It had 1,400 in-house engineers and scientists. Its spare part dealer network consisted of 1200 touchpoints. It has 27 spare part warehouses comprising of over 700,000 unique materials. It has 17 levelsof bill of materials. It has 42 regional and sales offices.

Given its sheer size and its distributed units there was no online real time data available. To add tothis inappropriate real time data led to production loss. The current legacy system was not integrated.The sales, finance and production planning systems were independent of each other henceinformation flow across the organization was very cumbersome. There existed a need forcollaboration between vehicle manufacturers and dealers. Tata Motors use a manual dealermanagement system, where every dealer managed details. With legacy-based systems, theenvironment produced inconsistent data, making interpretations difficult and resulting in inefficientplanning for capacity and spare parts. Tata motors wanted to scale production and increase itscapacity, hence there had to be backward integration of the process. In order to cope up with thisincreased scale there had to be an improvement in productivity.

Tata Motors saw implementation of ERP as a way of achieving these goals.

Selection of SAP as the ERP packageIn the automotive industry today, there is no shortage of challenges. Executives find themselves beingpulled in many directions and struggling to do more with less. Stable or declining volumes inmature markets and increased competition from emerging economies are putting pressure on prices


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and margins, driving shorter product-development cycles, and making asset utilization a critical issue.Mean- while, the cost of everything from raw materials to warranties must be strictly controlled. Andcustomers, of course, have ever-increasing expectations for quality, speed, and flexibility. At the

same time, automotive companies face the growing complexity of managing an ecosystem of partnersand their own far-flung operations which can include both mature markets and areas that hold thepromise of new customers and lower labor costs, such as central and eastern Europe, China, andsoutheast Asia. The resulting complexity is multiplied by a growing number of regulations, such asthe TREAD Act, the EUs international materia l data sheet, and RoHS/WEEE requirements formonitoring environmental factors.

In response to these challenges, leading automotive companies are pursuing innovative approachesand positioning themselves to thrive in a global industry.

They are enabling cross-functional processes to take time and cost out of every aspect of theirenterprise from engineering and production to payables, receivables, and purchasing. They arefocusing on sales and service operations to strengthen their ability to provide a differentiating, high-quality customer experience. And they are implementing a range of adaptive approaches such aslean enterprise and Six Sigma to ensure that customer requirements drive engineering,manufacturing, and logistics processes. These innovations offer great potential to the industry.However, the challenge lies in approaching them systematically, enabling and supporting them in anintegrated fashion. Too often, automotive companies are burdened with fragmented, disparatesystems and manual, paper-based processes that create friction in external and internal valuechains and lead to disconnects among automotive manufacturers (OEMs), automotive suppliers, and

sales and service organizations. This disjointed approach makes it difficult to share information,develop an accurate view of demand, work closely with supply chain partners to understand and reachthe customer, and, ultimately, turn innovative ideas into practical realities.

SAP helps companies meet their business challenges and capitalize on new opportunities with theSAP for Automotive solution portfolio designed specifically for the automotive industry. Drawing onmore than 30 years of working with automotive organizations, SAP enables companies to manageand integrate critical business processes and collaborate with partners across the value network.Today, more than 1,600 automotive companies worldwide rely on SAP solutions.

SAP for Automotive supports the entire range of industry processes, including supply chain planning,manufacturing, logistics, sales and marketing, and customer service. It provides OEMs with supportfor everything from research and development to planning, manufacturing, and vehicle end-of-lifeconsiderations. It gives suppliers the tools they need to handle product development, quoting,manufacturing, procurement, and logistics processes. And it enables sales and service organizationsto manage processes such as vehicle configuration, service-parts logistics, and warranty claims among many others.

SAP for Automotive is designed to help automotive companies of virtually any size. In addition to


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providing the tools and capabilities needed to support fundamental enterprise processes such asfinance, regulatory compliance, human capital management, and corporate services.

SAP for Automotive solutions helps companies to perform the following activities:

Drive adaptive manufacturing and procurement SAP for Automotive supports multiple manufacturing strategies, including repetitive, lean, flow,assemble-to- order, and forecast-driven processes. Companies can plan, execute, analyze, and controlmanufacturing operations in sequenced-build and just-in-time production environments. It enablesthem to leverage lean manufacturing and Six Sigma to improve efficiency while reducing thecomplexity of synchronizing the supply of automotive components and subcomponents. Andcompanies can draw on information about planning, accounting, human resources, materials,warehouse operations, plant maintenance, and quality to keep production in tune with overallbusiness requirements and customer demands.

Perform model-option planningSAP for Automotive lets companies manage customized orders and closely align model mix withmarket demands. The portfolio offers fully integrated solutions for planning, pricing, configuration,order processing, availability checking, production, fulfillment, billing, and financial reporting,giving companies a consistent view of the product in sales orders, production plans, and profitabilityanalyses.

Manage the complete vehicle order-to-delivery processManufacturers, dealers, and importers can collaborate on the full range of activities associated with

selling and delivering vehicles. SAP for Automotive gives importers a powerful channel- based toolfor procuring, selling, distributing, and tracking vehicles and service parts, while enabling dealers toeasily configure, search for, obtain, and track vehicles for their customers.

Manufacture and deliver componentsSuppliers in all tiers can use SAP for Automotive to ensure compliance with customer mandates forreceipt of material releases; to synchronize production with demand; for data capture and error-proofing on the shop floor; for packaging, labeling, and shipping; and for generating advance-shipping notifications to maximize operational efficiency and effectiveness

Handle warranty claims with efficiency and accuracy SAP solutions enable dealers, importers, OEMs, and suppliers to process warranty claims andautomate the claims-payment process for increased efficiency. The software facilitates the processingof warranty claims across brands and handles multiple-warranty programs. Companies can use SAPsoftware to examine and report on data from various sources and transform warranty information intoadditional product knowledge. They can analyze campaigns, components, dealerships, and vehicles todrive strategies based on an understanding of factors such as parts-failure and returned-parts patternsand participation levels for a given recall campaign.


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Streamline the service-parts processSAP for Automotive lets companies manage todays complex service -parts operations with powerfulplanning, fulfillment, and logistics tools. They can perform time-phased demand and replenishment

planning while handling procurement, warehousing, distribution, and workload scheduling. And itgives them visibility into de- pendent and independent demand, parts inventory, supply, and customerand system fill levels. The service-parts management capability supports re- manufacturing, coremanagement, and entitlement controls.

Enhance dealership management The SAP Dealer Business Management solution part of the SAP for Automotive portfolio letsindependent, group-owned, and OEM-owned dealers manage their entire business, even whenworking with multiple brands, franchises, and locations. Using the integrated set of solutions, vehicleretailers can manage everything from procurement of service parts and accessories to sales of new

and used vehicle, as well as finance and marketing. SAP Dealer Business Management enablesdealers to work seamlessly with their parent group or OEM to boost efficiency and meet customerneeds.

Collaborate across engineering and designSAP solutions provide tools for internal and external collaboration at every stage of engineering,including design and production start. The software supports collaborative product- developmentprocesses involving OEMs and suppliers, such as the Advanced Product Quality Planning (APQP)process and ISO/TS 16949, the globally accepted quality-management system that links customersatisfaction with the measurement and improvement of processes.

Strengthen the management of programs and projectsSAP solutions provide the tools companies need to plan, manage, and control programs and projectsof any size; oversee project structures, timelines, costs, and resources; and optimize re- sourceallocation across programs and projects.

Manage relationships with customers and partnersSAP for Automotive gives companies the sophisticated customer relationship management toolsneeded to manage sales and service interactions with all partners in their value network, includingdealers, OEM customers, partners, and suppliers. A comprehensive set of marketing, sales, andservice tools integrated with vehicle and product data ensures that knowledge-driven interactionsimprove customer satisfaction and increase collaboration.

Deploy enterprise shared servicesSAP for Automotive enables companies with diverse, geographically distributed operations to adoptand deploy back- office processes through shared-services centers. As a result, companies canleverage enterprise best practices and achieve savings from reduced redundancy and the centralizationof transactional information about suppliers and customers.


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Understand and control operations in greater depthComprehensive tools for analytics, forecasting, and reporting help companies plan, budget, andoptimize internal and external processes; improve sales planning and monitoring; and work with a

complete picture of operations.Improve the management of enterprise assetsSupport for enterprise asset management covers the complete asset life cycle, including specificationand design, development and procurement, operations, preventive and predictive maintenance, anddisposal helping companies reduce operating costs and minimize downtime.

Ensure compliance with government regulationsComprehensive capabilities address the full range of reporting requirements, including the Sarbanes-Oxley Act; global trade and customs rules; and environment, health, and safety regulations.Companies can track detailed data about quality, materials, components, and products throughout thevalue chain.

Tata Motors FinancialsA developing economy like India craves for financial resources. Often the traditional financial sectoris not accessible to the customers at large, thereby creating a need for financial organizations cateringto specific industries. The auto industry worldwide has often faced the problem of finding the rightfunding for its customers. These factors, along with the cyclical nature of the auto industry, hasinduced automobile companies to think of captive financing arms of the parent companies, whichwould exclusively fund the parent products and also act as a catalyst in certain areas for promoting

the products.Tata Motor finance (TMF), the auto financing arm for Tata Motors, came into existence in June 2003.This was a common front-end, jointly formed by BHPC (Bureau for Hire Purchase and Credit) of Tata Motors and the asset financing arm of Tata Finance. This company was a virtual entity, withboth the divisions maintaining their legal identity, and was in the market for exclusively financingTata Motors vehicles. Subsequently Tata Finance was merged with Tata Motors and in April 2005TMF became a division of Tata Motors.

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Critical Success FactorsSome of the CSFs that Tata Motors took into consideration while implementing mySAP are :

Improved Sales Revenue Cost Reduction Reduced Inventory Improved Production Scheduling Improved Productivity Enhanced organization-wide communication

ERP Implementation Methodology

SAP implementation at Tata Motors started in 1997 when SAP version 3.4 was implemented. It wasupgraded to version 4.6 in 2003 and the integration is still going on with production planning and HRfunctions still to be completely integrated. Inventory cost has greatly reduced as real time info is

available. Production bottleneck is reduced as scheduling is very good and Vendor end system hasbeen integrated with VCM ( the legacy system) which is yet to be incorporated within SAP. Processeshave been standardized across plants at various locations.

Tata Motors followed a phased roll out approach. This implementation was to be one of the largestSAP Implementations in India. In other words it was one of the largest Integration Project in Indiawith five Servers converged to single server. SAP Go-Live paved way forward for BusinessTransformation at Tata Motors and Information support for Business Excellence. PresentImplementation lays foundation for implementation of SAP Industry Vertical Solution for


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Automobile Companies i.e. IS Auto, Supply Chain Management and Advance Planner and Optimizer.

SAP Product Implementation at Tata Motors encompasses

Functional and Technical Consulting for implementation of mySAP portfolio of productso SAP R/3 Implementations including Industry Specific Solutionso BIW, CRM, SRM, APO, SCM, Enterprise Portals

Change Management SAP Implmentation Audit Identification of Risk Factors Risk mitigation Planning Solution / System Optimization System Operations Plan

ERP Implementation ProcessmySAP SRM 40 Implementation at Tata Motors has been christened as Project VECTOR: ValueEnhancement by Collaboration through Technology and Operational Restructuring

Project VECTOR MissionRevolutionize the supply chain by uncovering the hidden value through technology driven Sourcingand collaborative Purchasing

The ultimate goal of project vector is stated in bullet points below:

Bring global Spend visibility to maximize negotiation power Enhance Supplier capability through catalogue content management Supplier evaluation to support Supplier rationalization Parts rationalization through spend analysis Competitive price through live auctions Streamline procurement process across locations Automate procurement process Quick sourcing through live auctions Centralized sourcing and decentralize procurement

o Bring in an Organization changeo Empower buyers, remove non value added processes Drastic reduction in follow up efforts through supplier collaboration

Clear visibility of supplies and payments status to suppliers through portal. Harness state of the art technology Netweaver, Web enabled collaboration


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Project Scope

Phase 1 Pilot implementation covering:

Four locations for selected product categories and Four vendors each for direct and indirect materials.

Phase 2

Rollout of mySAP for Direct and Indirect Materials for balance Product Categories andVendors covering all locations.


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Also implement Service Procurement, Confirmation, Invoice entry and Approval Modules.

Phase 1 of mySAP implementation was primed by SAP Consulting.

Phase 2 was primed by Tata Technologies Limited

1997 : SAP version 3.4 was implemented Constrained by the WAN architecture in the country their first implementation was a

decentralized one. They had four servers: 3 for their manufacturing plants at Jamshedpur, Lucknow and Pune 1 for their sales and corporate services at Mumbai.

2003 : upgraded to version 4.6 migrated to single server architecture Triggered by need to consolidate operations at Daewoo, Korea and the Pune

operations. 3000 users and the company implemented over twenty modules of SAP. The range of SAP functionality used is perhaps one of the largest and successful in the

automobile industry worldwide Disaster Recovery infrastructure to blend with ERP System Seamless integration with Enterprise Applications like PLM and CRM Customization:

Enhanced automatic Invoice Verification: 12000 invoices a day Automated payment and recoveries for transporters: 4,50,000 vehicles annually

Participants: Suppliers, Dealers, Sales & Service Centers and even Bankers

The entire SAP implementation process is headed by the Steering committee thats includes the

CEO,CIO and functional heads .


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SAPs Commitment to the Project SAP and Tata Group is a growing partnership. Since Tata Motors a key Auto player in IndianMarket, the success of the current Implementation project is key to SAP to ensure dominance in

SRM segment. As a part of commitment SAP has agreed to Lead manage the Implementationproject, Involve its Top Management in project monitoring Involve Expertise in the region and

Ensure adequate knowledge transfer to the TML / TTIL team for self sustenance after they go-live.

The various SAP modules that have been implemented so far are:

Materials ManagementSales and DistributionProduction PlanningQuality Management

Finance and ControllingPlant MaintenanceProject SystemsAsset ManagementExternal Service ManagementReal EstateHuman ResourcesWarehouse Management


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Tata Motors Project: OverviewTata Motors has been the first Customer to Implement and Use all Scenarios of SRM. These

comprise of the following:

Self Service procurement.Catalog and Content Management.Strategic Purchasing Scenario: Spend Analysis, Contract Monitoring.Sourcing Scenario: Rfq, Rfx.Supplier Self Registration Module.Live Auction CockpitOrder Collaboration Scenario with full support for Goods Movement.Contract Re-Negotiation Scenario for Retrospective Price Amendments.Usage of SAP Netweaver: People Integration, Process Integration and Information Integration

The following components were used:

SRM 40 with EBP 50, Bidding Engine 30, Live Auction Cockpit 20, Supplier Self Service 30,Catalog and Content Management 10SAP Netweaver 2004 with Exchange Infrastructure 3.0, Enterprise Portal 6.0, BusinessInformation Warehouse 3.5 and WAS 640 for LAC.


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My Learning - Benefits Accrued by TATA

Overall Integration of the departments Finance, Sales, Production etc. On Demand Decision making data Backward Demand Integration Reduction in inventory cost as real time info is available Reduction in production bottleneck with better scheduling Seamless integration across the Supply Chain Standardization of processes across plants at various locations Reduction in manual efforts of Invoice Capture Reduction in Transaction Cost & Compress Cycle time

Tata Motors took the first important step toward a modern IT landscape in 1998 by implementingSAP R/3 for the basic business processes, following an internal reengineering project. ImplementingSAP helped the various sites improve automation and created a basis for integrated processes.

Although the effects of the implementation were noticeable, they were not far-reaching.Improvements - such as a more efficient way to access information or a more precisely defined


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ReferencesICMR Publication Case Books.ICMR Publication IT for Managerswww.tatamotors.comhttp://www.tata.co.in/ http://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_2.htmhttp://www.tatamotors.com/our_world/awards.php?getID=10&action=Pull&http://www.tatasteel.com/technologyupdate/km/journey.htmwww.forbes.com
http://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_2.htmhttp://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_2.htmhttp://www.tatamotors.com/our_world/awards.php?getID=10&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=10&action=Pull&http://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_2.htmhttp://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_2.htm

Final MRP_Mradul Raj Pachouri

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