India Tobacco Company

IT Perspective : ITC

WHAT IS THERE IN A NAME?

……….Well, first two letters have nothing to do with IT

AIM

To briefly introduce ITC and its range of products and services with special focus on impact of IT on its transformation.

A ppt by Ajay K Raina

Era Business School, New Delhi Col Ajay K Raina, SM

SCOPE OF THE PRESENTATION

• Phase 1 - Introduction and Brief History.

• Phase 2 – IT Initiatives and e-Choupal.

• Phase 3 – Role of IT, Brief Intro to Processes and miscellaneous aspects.

• Interactive Session and Conclusion.

PHASE 1 – INTRODUCTIONAND

BRIEF HISTORY

THE MISSION

Era Business School, New Delhi Col Ajay K Raina, SM

TIMELINE : EVOLUTION

• 1901 - Sir William Henry Wills; Imperial Tobacco Company after merger of eight British tobacco companies, in UK.

• 1910 – FDI; Imperial Tobacco Company of India Limited.

• 1970 - India Tobacco Company Limited.• 1974 - I.T.C. Limited.• 2001- ITC Limited.

Era Business School, New Delhi Col Ajay K Raina, SM

THE JOURNEY

• Humble beginnings with a leased office on Radha Bazar Lane, Kolkata.

• 16th birthday (1926)- a plot of land situated at 37, Chowringhee, Kolkata, for the sum of Rs 3,10,000.

• 'Virginia House‘- two years later…..now, one of Kolkata's most venerated landmarks.

Era Business School, New Delhi Col Ajay K Raina, SM

TIMELINE : TRANSFORMATION• 1910 – Started operations as a tobacco company.• 1925 - Packaging & Printing Business.• 1954 – Went Public.• 1972 – Hotel business (Welcom Hotels/ Welcomgroup).• 1979- Paper board arm added.• 1985 – Entered Nepal.• 1990 – Stepped into Agro industries.• 2000 – Twins - Fashion wear and Infotech.• 2001 – Started packaged Spices business.• 2002- Manufacture of Safety Matches + Stationery.• 2003 – Production of Incense Sticks.• 2005 – Entered Personal care market.• 2010- Premium brand of Cigars started.

PRODUCT PROFILE

Era Business School, New Delhi Col Ajay K Raina, SM

NATIONAL & GLOBAL PRESENCE

• Presence in all inhabited continents of the world.• Seventeen major countries outside India.• Pan India.

Era Business School, New Delhi Col Ajay K Raina, SM

WHY ARE WE LOOKING AT THIS JOURNEY?

• Figures tell us something:-

Market Capitalisation US $ 35 Billion

Revenue US$ 8 Billion

Employees 29,000

Livelihoods dependent 05 Million

Share holders 4,13,000

Share revenue growth (last 15 years) 25.6% pa

Era Business School, New Delhi Col Ajay K Raina, SM

REVENUE GROWTH 2007-12

4

5

6

7

8

2007 2008 2009 2010 20122011

3.9

6.0

5.9

6.6

7.2

7.8

Year

Revenue in

$ Bn

Era Business School, New Delhi Col Ajay K Raina, SM

ROLL OF HONOUR

• ITC is …..– one of the eight Indian companies to figure in Forbes A-

List for 2004;– Features in 400 of “The World's Best Big Companies". – Among Asia's 'Fab 50‘;– One of Forbes’ “World's Most Reputable” Companies.

• Recipient of more than 30 national and international awards in all possible fields of business.

Mr Y C DEVESHWAR…..where buck stops! Year Award

1986 Hotelier of the Year

1994 Marketing Man of the Year

1996 Distinguished Alumni Award from IIT, Delhi.

2001 Manager Entrepreneur + Retail Visionary of the Year

2005 Teacher's Lifetime Achievement Award

2006 Business Person of the Year from UK Trade & Investment

2007 SAM/SPG Sustainability Leadership Award, Zurich.

2010 The U.S.-India Business Council (USIBC) Award for Global Leadership

2011 The Padma Bhushan, one of the highest civilian awards in the country

2012 Business Leader of the Year Award

PHASE 2 - IT INITIATIVES AND e-CHOUPAL

Era Business School, New Delhi Col Ajay K Raina, SM

ITC INFOTECH

• ITC's wholly owned Information Technology subsidiary.

• ITC Infotech India Ltd, provides IT services and solutions to leading global customers.

• An obvious implication of this capability is effect on all other businesses of ITC.

• ITC Infotech

Era Business School, New Delhi Col Ajay K Raina, SM

DIFFERENT STRATEGIES • An integrated IT technological reconstruction encompassing WAN, in-house

information security management and realignment of the enterprise computing.• The IT infrastructure of ITC has expanded 500 times over last 15years.• Each business division has set up its own hardware across the operating locations,

implemented business-specific ERPs and used unique MIS to ensure support to users.

• Customer facing web applications to streamline operations, so much so that shipment from warehouses simply failed if the ERP system was down.

• Duplication of resources across ITC is now being replaced by a single architecture and management plan comprising a virtual private network, two data centres at Bengaluru and Kolkata and in-house security and centralized management.

• The SAP solution first implemented in the ITC FMCG business is now being extended through the company and to the field force through sales force automation tools and handheld devices.

• Similarly Oracle Applications are used in agri-business & homegrown web based applications for managing supply chain and customer relationship process.

• Partnership with Nokia for development and implementation of mobile platforms for e-choupal.

ITC e-CHOUPAL

Era Business School, New Delhi Col Ajay K Raina, SM

e- CHOUPAL• ITC's Agri-Business is one of India's largest exporters of

agricultural products.• Created in 2000 in MP, today e-choupal is synonymous with

ITC.• e-choupal consists of internet enabled computer stations

based in villages.• These PCs/ mobile platforms provide information on

weather, best practices, crop details, market prices, and important local news to farmers = price transparency over internet.

• This transformational strategy, now a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

Era Business School, New Delhi Col Ajay K Raina, SM

VERSIONS OF ITC e-CHOUPAL

1.0Farmers ITC

Focus on farmers as Micro producers in one way supply chain.Stream lined Supply to direct access and immediate payment to farmers.

Micro Producer

2.0Farmers ITC

Expansion of two way supply chain: focus on farmers as producers and consumers.Set up of Choupal Sagar

Micro ProducerMicro Consumer

3.0Farmers ITC

Expansion to Co-related supply chains: focus on farmers as entrepreneurs and innovatorsFocus on rural engagement & deeper personalization of ITC’s goods and services

Micro EntrepreneursMicro Producer

Micro Consumers

Era Business School, New Delhi Col Ajay K Raina, SM

TECHNOLOGIES USED IN e-CHOUPAL• Initially, e-choupal was launched as a simple .NET software

for farmers.• But with increase in data, it became hard for software to

manage all information; hence a complete software was redesigned by ITC InfoTech and Nokia along with hardware.

• In 2008, mobile application for e-choupal was launched by ITC InfoTech and Nokia after lots of experimentations and users’ trials.

• The necessary hardware-cum-software prototypes are being developed by Nokia and ITC Infotech. Though Nokia Life Tools for agriculture are already in the marketplace, the two-way mobile application and its full operationalisation is under implementation.

Era Business School, New Delhi Col Ajay K Raina, SM

BENEFITS TO FARMERS• e-Choupal unshackles the potential of Indian farmer

who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability.

• Availability of Up to Date Information.• It gives farmers more control over their choices, a

higher profit margin on their crops, and access to information that improves their productivity.

Era Business School, New Delhi Col Ajay K Raina, SM

Benefits to ITC• ITC benefits from net procurement costs that are about 2.5% lower.• it has more direct control over the quality of what it buys.• The system also provides direct access to the farmer and to information

about conditions on the ground, improving planning and building relationships that increase its security of supply.

• ITC gains additional benefits from using this network as a distribution channel for its products (and those of its partners) and a source of innovation for new products.

• Farmers are becoming a source of product innovation for ITC.• By providing a more transparent process and empowering local people as

key nodes in the system, ITC increases trust and fairness.

PHASE 3 –

ROLE OF IT, BRIEF INTRO TO THE

PROCESSES

AND MISCELLANEOUS ASPECTS

Era Business School, New Delhi Col Ajay K Raina, SM

IT PROCESSES….

• Service Oriented Architecture (SOA): development of POCs to demonstrate SOA

• RFID consulting and implementation services• Operations risk management: managing operational risk

using a business-IT dependency framework• Incubation of new technologies by a structured approach

to achieve knowledge leadership• Embedded software development in mobile technologies

using TI OMAP platform and E-LINUX• ntegrate CRM systems into their IT and business contexts,

Era Business School, New Delhi Col Ajay K Raina, SM

…..IT PROCESSES

• Data Warehousing and Business Intelligence (DWBI)• ITC Infotech’s Accelerated ASAP methodology) and

superior tools / techniques (ERP Knowledge Manager)• Mainframe CoE currently focuses on IBM Mainframe

Technology.• Product Life cycle Management Value Platform (RVP)

methodologyUse of Best PracticesTailored PLM Processes based on CMM Level 5Support Services based on proven ITIL Framework

Era Business School, New Delhi Col Ajay K Raina, SM

BENEFITS• Reduced Lead Time• Improved availability of resources.• Better and Integrated use of resources.• Improved Supply Chain Management process.• Cost Reduction.• Maximizing Returns• Forecasting of cash flow. • Visibility of inventory across locations thereby

reducing the load on the system.• Reduction in potential stock-out scenarios.

Era Business School, New Delhi Col Ajay K Raina, SM

E Waste Policy• Maximize utilization of all IT assets to their full

productive life. • Internal re-use followed by use outside ITC

through donation to bonafide philanthropic institutions.

• Only such IT assets which are non-operational and can not be reused for any other alternate purpose are considered as IT E-waste for disposal.

QUESTIONS PLEASE!

THANKS!