Final MRP - Mradul Raj Pachouri

Management Report on
Research Project
Role of Information
Technology in the field
of Market Research &
Business Intelligence
Mradul Raj Pachouri
Enroll. No.08BS0001794
IBS Pune
February 2, 2010 MANAGEMENT REPORT ON RESEARCH PROJECT
Table of Contents
ACKNOWLEDGEMENT ............................................................................................ 3
Project Proposed ................................................................................................... 4
Description of Project in brief ................................................................................ 4
Objectives of the Project ........................................................................................ 4
Methodology ......................................................................................................... 5
Introduction........................................................................................................... 5
Caselet : Tata Motors Using ERP............................................................................. 7
Background ........................................................................................................................... 9
Information Technology background ................................................................................. 10
Reasons for Implementation of ERP ..................................................................................... 11
Selection of SAP as the ERP package .................................................................................... 11
Tata Motors Financials ......................................................................................................... 15
Critical Success Factors ........................................................................................................ 16
ERP Implementation Methodology ...................................................................................... 16
ERP Implementation Process ............................................................................................... 17
SAP’s Commitment to the Project ........................................................................................ 21
Tata Motors Project: Overview ............................................................................................ 22
My Learning - Benefits Accrued by TATA .............................................................. 23
References ........................................................................................................... 25
Role of Information Technology in the field of Market Page 2

Research & Business Intelligence
ACKNOWLEDGEMENT
I “Mradul Raj Pachouri”, enrollment number 08BS0001794, am extremely delighted

to work on the project on “Role of Information Technology in the field of Market
Research and Business Intelligence”.
I am indebted to Prof. Abhilas Pradhan (Faculty Guide) for all his teaching
contributions, 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 project
with 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 this
wonderful opportunity.
I am also appreciative of all that I have learned from working with various experts and
industry executives and to all those who have helped me directly or indirectly during
my project for sharing their insights and experience.
Finally, I would like to thank my parents who are my inspiration and whose blessings
have made me reach this landmark where I am today.
Mradul Raj Pachouri

08BS0001794

Project Proposed
Role of Information technology in the field of marketing research and business
intelligence.
Description of Project in brief

With every dawn, a new technology takes birth. Human race has learnt many things by easy
accessing and sharing of information with others that transformed whole world for him. Computer
and information technology shrank the world. Gathering information about any issue is just at one
click 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 is
needed by them and just using their smart boxes they can acquire a whole chunk of data. This era is
for knowledge workers and information society. There is no space for people that doesn’t have
answer to the questions like what, how, from where they can get information and knowledge they
need. 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 is
more important rather than just clicking the mouse. This research effort will try to analyze the recent
structure and innovative strategies used in the field of Market Research and Business Intelligence. It
will 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 Marketing
Research.
 To find how Information Technology can create the value or excellence for any organisation
by Updating its Business Model.
 To find the variables that plays major role in implementation of Business Intelligence for any
organisation.
 To analysis different new innovative ways that companies are using to create the value by the
help of information technology, Like Proximity Marketing and Social Media.

Methodology
Whole efforts will be based on secondary research, exploratory and case based, which will try to
explore the role of information technology for creating business intelligence. It will be including
cases of different organisations, their success story due to proper implementation of Business
Intelligence 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 using
pen and learnt many things. At that time I started believing power of pen. At the age of fifteen, I came
in contact of smart box. It was new for me at that time. I was not aware that this smart box will
remain 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 just
arrived in a very short span of time and many more are on their way. Everyday a new technology
takes birth and replace many older ones. Many things have changed; even I can definitely say
process of learning has also changed a lot for me as well as big multinational giants like
Citibank, 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 is
now 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 difference
between three terms data, information and knowledge. Data is just like raw grocery, information is
like 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 to survive. In this
competitive market organization can survive with proactive approach which comes from knowledge
and wisdom. There is no place for people that can’t realize their need of information and put their
efforts for satisfying their need. Life itself is all about learning. You have to learn from day one to last
day of yours. Information literacy can solve your purpose if used in a proper way. All organizations
want their human resources with information literacy skills. Whether it is Marketing, Finance, HR or
Operations these skills are needed. Nowadays Blogs, online feedback, online newsletters, online
poling, social community, Video conferencing, and interest groups are very common on the
platform of internet used by different organization for developing a system of “Total
Knowledge Management”. Organizations appreciate the talented knowledge workforce and put their
wholehearted efforts for others to put them in this category. Companies are maintaining healthy and
sophisticated portals for their employees as well as their customers. Experimenting and learning is a
continuous process for any learning organization but learning from failures are important. It is very
well said by someone that successful failure is better than unsuccessful success. Organizations

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 make
other employees learn what to do for success and what not to be done for failure. Organizations are
trying to develop more learning-friendly environment where their human resource can get explicit as
well as tacit knowledge. Information technology made everything possible. Experimentation with
prototype is also a very good example of knowledge developed strategy that can increase
the chances of success and decrease the risk and loss due to failure. Now Organization can also
track their customers and their untold wishes by analyzing their pattern of search they had made. It
certainly adds a great value to the business. There are many ways by which a customer can get a
closer look to the product which he wish to buy , can compare that with its substitute or competitor
product 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. Many
types of software are available to serve better information literacy and efficient knowledge
management. One hosting platform can be taken up and cost of maintaining such a discussion
board is very less. One Linux server hosting with “MySQL” database will cost a price
of about $5 per month.phpBB.com, VBulletin, Ikonboard are some softwares that comes under
this group which are definitely serving cost saving and more efficient way of information
acquisition 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 by
which 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. As
workforce can be of diverse background they can also put there documents in different languages that
provide 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 a
better return due to this strong base of information literacy and knowledge management. This seems a
good long term planning. In windows platform share point solution facilitates collaboration within an
organization and with partners and customers. However such a tool can be developed in
house also with local requirements and many organizations do this and integrate them within their
intranet. As everything is on network it can provide a better penetration as well as enabling them to
create 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

knowledge acquisition. Finally I can say we do understand the power of this smart box and
technology 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 each
segment, 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 4
million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow
(Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance
with 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 establishing
a 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. Through
subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand
and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands
that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South
Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company
has launched several new products in the Korean market, while also exporting these products to
several international markets. Today two-thirds of heavy commercial vehicle exports out of South
Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a
reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.
Hispano’s presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture
with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata
Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to
manufacture 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
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 in
Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has
franchisee/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 economic
stimuli and customer needs, and the ability to translate them into customer-desired offerings through
leading edge R&D. With over 2,000 engineers and scientists, the company's Engineering Research
Centre, established in 1966, has enabled pioneering technologies and products. The company today
has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It
was 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 indigenous
passenger car. Within two years of launch, Tata Indica became India’s largest selling car in its
segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first
indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world
have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in
March 2009. A development, which signifies a first for the global automobile industry, the Nano
brings the comfort and safety of a car within the reach of thousands of families. The standard version
has 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 and
head 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 tailpipe
emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a
lower pollution level than two-wheelers being manufactured in India today. The lean design strategy
has helped minimise weight, which helps maximise performance per unit of energy consumed and
delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide
emissions, thereby providing the twin benefits of an affordable transportation solution with a low
carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in
keeping with its pioneering tradition, by unveiling its new range of world standard trucks called
Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce
new 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 were
introduced for the Indian market. These include the Jaguar XF, XFR and XKR and Land Rover

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 supply
chain activities, machine tools and factory automation solutions, high-precision tooling and plastic
and electronic components for automotive and computer applications, and automotive retailing and
service 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 in
community and social initiatives on labour and environment standards in compliance with the
principles of the Global Compact. In accordance with this, it plays an active role in community
development, serving rural communities adjacent to its manufacturing locations.
Background
Tata 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, chemicals
and telecom. The 140-year old Tata Group, feted by some as India's General Electric, is highly
respected not just for its business prowess but also for its various social and educational projects that

have contributed immensely to India's development.
Its holding company, Tata Sons, is 65% owned by charitable trusts, which doled out over a billion
rupees 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 considered
reliable and a value for money, more than anything else. All group companies pay Tata Sons a fee for
using the Tata name.
The Tata Group's Chairman, Ratan N. Tata, is recognized as the leading Indian businessman of his
generation. Taking over as chairman in 1991 during a time of tumultuous change in India's economic
landscape, he undertook a bold restructuring and reorganization of the group, and is widely given
credit for the group's transition and success post the economic reforms of 1991 that made the Indian
business environment far more competitive. Ratan Tata has repeatedly spoken of targeting what
University of Michigan professor, C.K. Prahalad, might call "the bottom of the pyramid" - in other
words, the market opportunity offered by the vast and voiceless masses of India. TTM Managing
Director Ravi Kant has vast experience in the Indian automotive market, and is a veteran of the
company, 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 the
group's total revenue. It manufactured only heavy and light commercial vehicles, and its foray into
passenger cars has been driven aggressively by Ratan Tata. Tata trucks dominate the Indian
commercial vehicle landscape, having approximately 65% market for medium and heavy commercial
vehicles (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 its
models (and stiff competition in the Indian passenger car market), such as the Tata Indica (compact
car). 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 most
ambitious project, the $2200 (Rs. 1 lac) car is due out by CY 2008, and is by far Tata's biggest push
into the passenger car segment. There will be no competitor at this price point. The compact car will
have a 30 BHP engine, and will seat 4-5 people. The target market is the "bottom of the pyramid" - or
the 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. Its
customer is less in cities like Bombay and Calcutta, than the smaller towns and perhaps even villages
of India, true to the chairman's vision.
Information Technology background

At Tata IT is seen as an important global function. Organizationally it is incorporated into the
management services division. Mitra’s (CIO) task is primarily to provide each area with IT resources
and tools required and to analyze whether Tata Motors should implement new technologies and IT
solutions. He draws up a three year plan in close cooperation with management and Tata
Technologies, a fully owned subsidiary of Tata Motors providing business and IT services. This plan

determines the basic IT strategy. The details are finalized in an IT balanced scorecard in which the
various projects are defined for the next 12 months and listed in order of priority. Joint teams from IT
and business are then charged with executing these plans.
In general, a distinction is drawn between project work and maintenance tasks. Tata Technologies is
responsible for both. If required, external experts are consulted from relevant areas. Any differences
of opinion about the long term perspectives of specific requirements are resolved together with the
business team. Mitra sees himself as an arbitrator in this process. The focus is a balance between
business benefits and the required corresponding investments.
Currently the company has deployed a gigabit backbone network in its Engineering Research Centre
and manufacturing plants. Key locations have a high level of redundancy for accessing business
critical applications. WAN architecture is a mix of dedicated intercity / intra-city links, VSATs or
VPN over service providers' network. LAN and WAN are monitored continuously with monitoring
tools such as Cisco Works, Packeteer and other advanced tools.
Reasons for Implementation of ERP

Tata Motors had its manufacturing plants located in Pune, Jamshedpur, Lucknow. Its R&D centers
were located in South Korea, Spain and UK. The corporate office of Tata Motors was located in
Mumbai.
It had 1,400 in-house engineers and scientists. Its spare part dealer network consisted of 1200 touch
points. It has 27 spare part warehouses comprising of over 700,000 unique materials. It has 17 levels
of 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 to
this 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 hence
information flow across the organization was very cumbersome. There existed a need for
collaboration between vehicle manufacturers and dealers. Tata Motors use a manual dealer
management system, where every dealer managed details. With legacy-based systems, the
environment produced inconsistent data, making interpretations difficult and resulting in inefficient
planning for capacity and spare parts. Tata motors wanted to scale production and increase its
capacity, hence there had to be backward integration of the process. In order to cope up with this
increased 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 package

In the automotive industry today, there is no shortage of challenges. Executives find themselves being
pulled in many directions – and struggling to do more with less. Stable or declining volumes in
mature markets and increased competition from emerging economies are putting pressure on prices

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. And
customers, 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 partners
and their own far-flung operations – which can include both mature markets and areas that hold the
promise of new customers and lower labor costs, such as central and eastern Europe, China, and
southeast Asia. The resulting complexity is multiplied by a growing number of regulations, such as
the TREAD Act, the EU’s international material data sheet, and RoHS/WEEE requirements for
monitoring environmental factors.
In response to these challenges, leading automotive companies are pursuing innovative approaches
and positioning themselves to thrive in a global industry.
They are enabling cross-functional processes to take time and cost out of every aspect of their
enterprise – from engineering and production to payables, receivables, and purchasing. They are
focusing 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 as
lean 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 an
integrated fashion. Too often, automotive companies are burdened with fragmented, disparate
systems – and manual, paper-based processes – that create friction in external and internal value
chains 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 reach
the customer, and, ultimately, turn innovative ideas into practical realities.
SAP helps companies meet their business challenges and capitalize on new opportunities with the
SAP for Automotive solution portfolio designed specifically for the automotive industry. Drawing on
more than 30 years of working with automotive organizations, SAP enables companies to manage
and 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 support
for everything from research and development to planning, manufacturing, and vehicle end-of-life
considerations. It gives suppliers the tools they need to handle product development, quoting,
manufacturing, procurement, and logistics processes. And it enables sales and service organizations
to 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

providing the tools and capabilities needed to support fundamental enterprise processes – such as
finance, 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 control
manufacturing operations in sequenced-build and just-in-time production environments. It enables
them to leverage lean manufacturing and Six Sigma to improve efficiency while reducing the
complexity of synchronizing the supply of automotive components and subcomponents. And
companies can draw on information about planning, accounting, human resources, materials,
warehouse operations, plant maintenance, and quality to keep production in tune with overall
business requirements and customer demands.
Perform model-option planning

SAP for Automotive lets companies manage customized orders and closely align model mix with
market 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 profitability
analyses.
Manage the complete vehicle order-to-delivery process

Manufacturers, 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 tool
for procuring, selling, distributing, and tracking vehicles and service parts, while enabling dealers to
easily configure, search for, obtain, and track vehicles for their customers.
Manufacture and deliver components

Suppliers in all tiers can use SAP for Automotive to ensure compliance with customer mandates for
receipt 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 and
automate the claims-payment process for increased efficiency. The software facilitates the processing
of warranty claims across brands and handles multiple-warranty programs. Companies can use SAP
software to examine and report on data from various sources and transform warranty information into
additional product knowledge. They can analyze campaigns, components, dealerships, and vehicles to
drive strategies based on an understanding of factors such as parts-failure and returned-parts patterns
and participation levels for a given recall campaign.

Streamline the service-parts process

SAP for Automotive lets companies manage today’s complex service-parts operations with powerful
planning, fulfillment, and logistics tools. They can perform time-phased demand and replenishment
planning while handling procurement, warehousing, distribution, and workload scheduling. And it
gives them visibility into de- pendent and independent demand, parts inventory, supply, and customer
and system fill levels. The service-parts management capability supports re- manufacturing, core
management, and entitlement controls.
Enhance dealership management

The SAP Dealer Business Management solution – part of the SAP for Automotive portfolio – lets
independent, group-owned, and OEM-owned dealers manage their entire business, even when
working with multiple brands, franchises, and locations. Using the integrated set of solutions, vehicle
retailers 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 enables
dealers to work seamlessly with their parent group or OEM to boost efficiency and meet customer
needs.
Collaborate across engineering and design

SAP solutions provide tools for internal and external collaboration at every stage of engineering,
including design and production start. The software supports collaborative product- development
processes 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 customer
satisfaction with the measurement and improvement of processes.
Strengthen the management of programs and projects

SAP solutions provide the tools companies need to plan, manage, and control programs and projects
of any size; oversee project structures, timelines, costs, and resources; and optimize resource
allocation across programs and projects.
Manage relationships with customers and partners

SAP for Automotive gives companies the sophisticated customer relationship management tools
needed to manage sales and service interactions with all partners in their value network, including
dealers, OEM customers, partners, and suppliers. A comprehensive set of marketing, sales, and
service tools integrated with vehicle and product data ensures that knowledge-driven interactions
improve customer satisfaction and increase collaboration.
Deploy enterprise shared services

SAP for Automotive enables companies with diverse, geographically distributed operations to adopt
and deploy back- office processes through shared-services centers. As a result, companies can
leverage enterprise best practices and achieve savings from reduced redundancy and the centralization
of transactional information about suppliers and customers.

Understand and control operations in greater depth

Comprehensive tools for analytics, forecasting, and reporting help companies plan, budget, and
optimize internal and external processes; improve sales planning and monitoring; and work with a
complete picture of operations.
Improve the management of enterprise assets

Support for enterprise asset management covers the complete asset life cycle, including specification
and design, development and procurement, operations, preventive and predictive maintenance, and
disposal – helping companies reduce operating costs and minimize downtime.
Ensure compliance with government regulations

Comprehensive 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 the
value chain.
Tata Motors Financials

A developing economy like India craves for financial resources. Often the traditional financial sector
is not accessible to the customers at large, thereby creating a need for financial organizations catering
to specific industries. The auto industry worldwide has often faced the problem of finding the right
funding for its customers. These factors, along with the cyclical nature of the auto industry, has
induced automobile companies to think of captive financing arms of the parent companies, which
would 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, with
both the divisions maintaining their legal identity, and was in the market for exclusively financing
Tata Motors vehicles. Subsequently Tata Finance was merged with Tata Motors and in April 2005
TMF became a division of Tata Motors.
Net Sales
In Tens of Millions
25,000.00
20,000.00
15,000.00 Series1
10,000.00 Series2
5,000.00
0.00
97
98
99
00
01
02
03
04
05
06
19
19
19
20
20
20
20
20
20
20
Year

Critical Success Factors

Some 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 was
upgraded to version 4.6 in 2003 and the integration is still going on with production planning and HR
functions 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 has
been integrated with VCM ( the legacy system) which is yet to be incorporated within SAP. Processes
have been standardized across plants at various locations.
Tata Motors followed a phased roll out approach. This implementation was to be one of the largest
SAP Implementations in India. In other words it was one of the largest Integration Project in India
with five Servers converged to single server. SAP Go-Live paved way forward for Business
Transformation at Tata Motors and Information support for Business Excellence. Present
Implementation lays foundation for implementation of SAP Industry Vertical Solution for
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 products

o SAP R/3 Implementations including Industry Specific Solutions
o BIW, CRM, SRM, APO, SCM, Enterprise Portals
 Change Management
 SAP Implémentation Audit
 Identification of Risk Factors
 Risk mitigation Planning
 Solution / System Optimization
 System Operations Plan
ERP Implementation Process

mySAP SRM 40 Implementation at Tata Motors has been christened as Project VECTOR: Value
Enhancement by Collaboration through Technology and Operational Restructuring
Project VECTOR Mission

“Revolutionize the supply chain by uncovering the hidden value through technology driven Sourcing
and 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 change
o 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

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 and
Vendors covering all locations.

 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 that’s includes the
CEO,CIO and functional heads.


SAP’s Commitment to the Project

SAP and Tata Group is a growing partnership. Since Tata Motors a key Auto player in Indian
Market, 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 Implementation
project, 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 Management
Sales and Distribution
Production Planning
Quality Management
Finance and Controlling
Plant Maintenance
Project Systems
Asset Management
External Service Management
Real Estate
Human Resources
Warehouse Management

Tata Motors Project: Overview

Tata 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 Cockpit
Order 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 10
SAP Netweaver 2004 with Exchange Infrastructure 3.0, Enterprise Portal 6.0, Business
Information Warehouse 3.5 and WAS 640 for LAC.

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 implementing
SAP R/3 for the basic business processes, following an internal reengineering project. Implementing
SAP 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

workflow - could not be felt at the transaction level. Because of the required process volume, Tata
Motors had to make a number of changes to the systems to meet performance requirements. “With up
to 15,000 goods receipt notes per day, you can imagine the kind of data volume we’re talking about,”
says Mitra. If system performance is bad, that’s a problem.
Everyone learned a great deal. For internal reasons, Tata Motors had to take a decentralized approach.
After SAP R/3 4.6C was implemented in 2003 and enterprise resource planning was founded on a
single server for the enterprise, the company profited from significant advantages, particularly for
financials, logistics, and sales. Five systems were consolidated on one server with one database and
the company stayed as close to the standard version as possible. Both the business as a whole and
developers are now much more involved. Since the implementation, the IT division of Tata Motors
has been run according to the principle of “controlled programming.”
Wide range of improvements results from a combination of centralized data retention and higher-
quality software. Improvements have been identified in general costs, purchasing, resource planning,
logistics, and the process for providing important financial information (such as for Sarbanes-Oxley
compliance). Processes have been tightened, and synergies found on all levels. Production locations
are finally able to see the data of other factories. Users are also more disciplined and receptive to
rationalized processes across the manufacturing plants.
Over 3,000 Tata Motors users now work with SAP solutions. In the automotive industry worldwide,
Tata Motors claims to have the widest range of SAP functionality of any SAP installation. With the
exception of product life-cycle management and customer relationship management, the company
uses, or plans to use, SAP applications for all typical IT applications in its business portfolio. The
introduction of SAP Advanced Planning & Optimization (SAP APO) will be essential in improving
supply chain management.
Mitra plans to have Tata Motors upgrade to SAP R/3 Enterprise this year. An ever-increasing number
of business requirements will have to be incorporated into the system. “More industry-specific best
practices,” he adds, “will put the company in a better position to face coming challenges and support
the CIO in his decision-making process.” Mitra hopes that SAP will play a significant role in this
project.
All in all, the SAP infrastructure provides a strong IT infrastructure to support Tata Motors’
aggressive globalization plans. “We are well prepared for the challenges ahead,” says Mitra.
The pressure on companies is not easing. Those that can only react in their own markets will soon be
left in their competitors’ dust.

References
ICMR Publication Case Books.
ICMR Publication – IT for Managers
www.tatamotors.com
http://www.tata.co.in/
http://www.businessweek.com/bwdaily/dnflash/content/sep2008/db20080915_552271_page_
2.htm
http://www.tatamotors.com/our_world/awards.php?getID=10&action=Pull&
http://www.tatasteel.com/technologyupdate/km/journey.htm
www.forbes.com


Final MRP - Mradul Raj Pachouri

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final MRP - Mradul Raj Pachouri

Uploaded by

Copyright:

Available Formats

Management Report on

Mradul Raj Pachouri

Role of Information Technology in the field of Market Page 2

I “Mradul Raj Pachouri”, enrollment number 08BS0001794, am extremely delighted

Mradul Raj Pachouri

Role of Information Technology in the field of Market Page 3

Description of Project in brief

Objectives of the Project

Role of Information Technology in the field of Market Page 4

Role of Information Technology in the field of Market Page 5

Role of Information Technology in the field of Market Page 6

Caselet : Tata Motors Using ERP

Role of Information Technology in the field of Market Page 8

Discovery 3, Range Rover Sport and Range Rover.

Role of Information Technology in the field of Market Page 9

have contributed immensely to India's development.

Information Technology background

Role of Information Technology in the field of Market Page 10

Reasons for Implementation of ERP

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

Selection of SAP as the ERP package

Role of Information Technology in the field of Market Page 11

Role of Information Technology in the field of Market Page 12

Drive adaptive manufacturing and procurement

Perform model-option planning

Manage the complete vehicle order-to-delivery process

Manufacture and deliver components

Handle warranty claims with efficiency and accuracy

Role of Information Technology in the field of Market Page 13

Streamline the service-parts process

Enhance dealership management

Collaborate across engineering and design

Strengthen the management of programs and projects

Manage relationships with customers and partners

Deploy enterprise shared services

Role of Information Technology in the field of Market Page 14

Understand and control operations in greater depth

Improve the management of enterprise assets

Ensure compliance with government regulations

Tata Motors Financials

Role of Information Technology in the field of Market Page 15

Critical Success Factors

 Improved Sales Revenue

ERP Implementation Methodology

SAP Product Implementation at Tata Motors encompasses

 Functional and Technical Consulting for implementation of mySAP portfolio of products

ERP Implementation Process

Project VECTOR Mission

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

 Bring global Spend visibility to maximize negotiation power

Role of Information Technology in the field of Market Page 17

 Pilot implementation covering:

Role of Information Technology in the field of Market Page 18

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

Role of Information Technology in the field of Market Page 19

Role of Information Technology in the field of Market Page 20

SAP’s Commitment to the Project

Role of Information Technology in the field of Market Page 21

Tata Motors Project: Overview

Self Service procurement.

The following components were used: