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DEPARTMENT OF BUSINESS ADMINISTRATION UNIVERSITY OF LUCKNOW
I express my profound sense of gratitude to my faculty guide Mr Sanjay Medhavi, faculty member, Department of Business Administration, University of Lucknow, and my teacher of ‘Information Management in Business’, for his systematic guidance throughout this term paper. I would also like to thank him for giving such a topic for term paper which helped me to develop a practical insight of whatever I had learnt in the class. I would also like to express my heartfelt thanks to my family members and my friends, who extended all kinds of cooperation to me throughout the course of this work.
Information & IT security management----------------------------------12 8. Snapshots of IT setupat HHML--------------------------------------------23 11. Supplier & Customer Relationship Management------------------------9 6. Pre SAP Scenario-------------------------------------------------------------5 3. eHR Implementation---------------------------------------------------------11 7. The IT Infrastructure---------------------------------------------------------6 4. Summary-----------------------------------------------------------------------24 12. Bibliography------------------------------------------------------------------25 INTRODUCTION 3 .CONTENTS 1. Benefits to HHML-------------------------------------------------------------20 9. Introduction-------------------------------------------------------------------4 2. Enterprise Application-------------------------------------------------------7 5. Bottlenecks----------------------------------------------------------------------22 10.
PRE SAP SCENARIO 4 . Hero Honda is a household name today. Driven by the trust of over 5 million customers. institutions. In addition. The company. Hero Honda now supplies motorcycles through more than 500 dealers and 700 service points.friendly companies. coupled with the strength of Honda technology and the Hero group’s dynamism has helped HHML scale new frontiers and exceeds limits. In the last six years Hero Honda’s sales volume grew by 400%. What’s not so well known is the fact that the company has successfully used IT to help it reach the top.One of the biggest success stories in the Indian two wheeler segment. and even claims to be the world’s largest two wheeler company in its advertising. holds a 50% market share in India and has grown to become the world’s largest two-wheeler manufacturer. made even more famous by the ‘Fill it .Shut it . The challenge for Hero Honda: cut time and waste out of its supply chain and add more flexibility in meeting the fastchanging dynamics of the modern market in India Hero Honda is a leader in the two wheeler segment in the country. Hero Honda has successfully leveraged the IT advantage. Hero Honda Motors Limited (HHML) gave India nothing less than a revolution on two-wheels. an expansive dealer network. To reach the heights that it has. and in 2005 he was presented with the “Padma Bhushan. In fact. It’s no wonder that Hero Honda has won accolades in the New Delhi business press. has today become the world’s single largest twowheeler Company. in 2001 Hero Honda’s chairman Brijmohan Lall Munjal received the “Ernst & Young Entrepreneur of the Year” award for India. established in 1985 as a joint venture between Hero Group of India and Honda of Japan. What started out as a Joint Venture between Hero Group and the Honda Motor Company of Japan. and overseas customers. the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. a high quality product. But growth has brought unique challenges.Forget it ‘campaign. and reliable after sales service to that and we have one of the most customer. especially in recent times. success has brought significant rewards – and some daunting challenges. the company calls on more than 240 suppliers for its parts and subassemblies. Customer satisfaction.” a prestigious award from the Indian government. Add technological excellence. Coming into existence on January 19. For New Delhi–based Hero Honda. 1984. too. and this year the company expects to manufacture and sell more than 3 million motorcycles.
Information Systems. Tired of in-house developed systems. which had a high failure rate. the systems underwent changes and represented a patchwork of several additions and modifications. The management’s vision was to align IT with business. HHML wanted to consider only state-of-the-art systems and one which had a clear road map for the future including conduct of business over the net. competition in business and deployment of bandwidth hungry applications forced the company to migrate from a slower legacy network to the new faster and more reliable network. the management decided to revamp the entire IT set up according to S R Balasubramanian. But till 1998 Hero Honda depended on legacy systems. Because it was obsolete. Information. they wanted a standard solution and in particular. Apart from this. There was duplication and information inconsistency as happens with most legacy applications. An information systems plan was drawn up. stated that the organisation would go for common systems across the organisation. Since the legacy systems took care of data processing. THE IT INFRASTRUCTURE 5 . Real MIS resided on Excel sheets along with different kinds of analysis. therefore. emphasis would be on improving business processes. HHML had legacy systems working on different platforms. MOTIVATION FOR CHANGE At that point of time the management perception about IT was also changing and they decided IT would be part and parcel of Hero Honda. Their idea was to partner with a technology vendor capable of taking them forward as the business expectations increase. Over a period of time. They were loosely integrated across functional areas. It was therefore important to migrate from this platform to something more stable and futuristic. This helped in modernising the information systems at the company. an ERP. only some operational reports got generated by the system. Hero Honda Motors. The set up was not in a position to cater to the expansion that Hero Honda went through and was not suitably updated. to adopt best practices and to cover the entire supply chain. It would also achieve integration between all systems. which besides other things. IT was to be used as a strategic business tool rather than for a limited purpose of data processing. vice president. which were developed in-house and tailor-made to their method of working. was fragmented and the authenticity was questionable.The company has a highly efficient and reliable network today.
One of the key features of Hero Honda’s networks is that most sites enjoy excellent backup facilities. For connectivity between its Dharuhera and Gurgaon facilities the company uses a very fast radio link. These connect the corporate office in New Delhi with two manufacturing plants (Gurgaon and Dharuhera). The company has three Cisco routers. and the storage box is connected to the RS 6000 server. As far as other networking hardware is concerned. Dharuhera is connected directly to Comsat Max’s PAMA VSAT main hub. and two UPSes. For this Hero Honda has gone in for an IBM Trivoli solution.The IT infrastructure of the company is connected over three major Local Area Networks (LANs). All the switches and hubs at the company are managed devices. 21 locations are connected through its Wide Area Network (WAN) set-up. IBM and 3Com. which are connected to an IBM LAN Route Switch. For non-critical applications. Hero Honda uses 10/100 Mbps Ethernet switched technology for data transmission and is connected with both optic fibre and Cat 5 cables. Most of these locations are connected with the corporate office through VPNs. Apart from this the company also uses an IBM RS 6000 server for running SAP applications. which works as a backup device. with plans to shift to a Storage Area Network. we will be going in for more and more IBM switches in the future. The IT facilities at Gurgaon are connected with two electrical sources. and at few places through VSAT connectivity. which will also solve the future bandwidth requirements of the company. The whole idea was that information systems should be able to cater to 99 percent of availability. The company is also using a tape library. the Gurgaon plant has two Cisco routers. it is still a closed-user group. The Hero Honda network spans 750 nodes across the country. and other zonal and marketing offices. leased lines. It possesses a Network Attached Storage system. For instance. For Lotus Notes applications the company has opted for IBM’s Netfinity servers. the company has opted for 3Com switches. The company has installed the PAMA VSATs from Comsat Max as a backup facility. “As IBM switches are cheaper than Cisco ones. Optic fibre is used for the backbone. The company also uses a mix of switches from three vendors: Cisco. As far as the VPN set-up is concerned. The motorbike major has a total of seven TDM/TDMA VSATs and two PAMA VSATs. ENTERPRISE APPLICATIONS 6 .” says Balasubramanian. two MCBs. Even if a LAN or a switch fails it should just take 10 minutes to switch to another LAN or switch. and other midrange servers for running Ingres and Oracle. The company has also installed an extra server as a backup.
To ensure its success the management arranged training programmes at all the three major areas and also invited the regional offices to join in. The company messaging set up evolved around Lotus Notes. Siemens Information Systems was the implementation partner for this rollout. “ERP has helped the company immensely. assets. By this. And users were quite excited about having a card application. the company put up an intranet and workflow applications. The Lotus Notes application at Hero Honda evolved around those applications that users are familiar with. power and fuel costs. This prompted the company to introduce a new greetings system on the lines of Bluemountain.com. Hero Honda Motors. the IT set-up faced some problems during the first Diwali after the introduction of the messaging system. and finally decided to go in for Lotus Notes. They were able to implement better cost control measures. After the successful implementation of this system. This happened because of huge number of greeting messages and card attachments. Because of this they also became ready for future SCM and CRM implementations. As the management knew that the implementation of ERP would take some time. The success of the messaging system was so good that people started overlooking the VSAT network. They opened up a car4. SAP’S ROLE 7 . deputy general manager. This had helped them in calculating the cost of consumables. materials. ERP IMPLEMENTATION The next move was to implement ERP in order to integrate various functions and control its operations. it took off very well.” says Mukesh Malhotra. Today nobody asks any other department for information. It uses modules like production. but only the link. tool inventory cost. and plant overheads. integrate all the departments. After this they were able to avoid a considerable amount of traffic. quality sales and distribution. This is done as a part of the information systems plan along with the business plan to integrate information systems in the organisation. no attachment would go. The ERP implementation presented a high level of data integration. When they first introduced messaging. One can log in and see reports online. they wanted to use that time to introduce an IT culture in the company.A good and reliable messaging system was a long-standing need at Hero Honda. finance. People started enjoying the use of IT applications. marketing.809 cmd’s library system and asked the users to go to the card library and select a card and send it across. The company went live with SAP R3 on February 1. Subsequently. 2001. They evaluated both Microsoft Exchange and Lotus Notes.
The first few days saw several problems but the help desk (available 24 hrs) attended to them promptly. The overwhelming presence of SAP in the automotive sector was one of the important reasons for selection. They also helped in redefining various processes based on their experience.HHML evaluated BAaN and Oracle. IMPLEMENTATION PARTNERS Siemens Information Systems Ltd (SISL) were the implementation partners. Every day thereafter saw lesser problems and the operations got streamlined in 15 days. SAP’s German developers found answers overnight. They imparted initial training to the users and core team members. the project was completed in a record three months. They were one week behind at the last stage of Go-Live preparation but made that up in the last month. Implementing the latest mySAP SRM and mySAP CRM capabilities in such a tight time frame was an ambitious goal 8 . There were hiccups in between because of staff turnover at the implementation partners’ end because of which the project had to be extended by a month. The Steering Committee played a useful role and wherever some policy issues could not be decided. The project took off with a great start. Germany. The customer references spoke strongly about SAPs ability to address the needs. They gave valuable suggestions for improvement at various stages. In the Steering Committee meetings they clarified various issues and helped in convincing the management to make various changes. Year closing for the following year was achieved in 11 days and HHML was the second company in India to declare results. the CEO intervened to resolve. The speed with which technical issues were resolved was impressing. RECORD-BREAKING IMPLEMENTATION TIME Hero Honda also profited from services delivered remotely by SAP consultants in Singapore and software developers in Walldorf. they kept various activities on schedule. This indicated the stability of systems and the efficiencies achieved. In some cases. However. Thanks to close collaboration between SAP and Hero Honda. End users were involved at various stages and hence they adapted to the new systems well. (2 months from Go Live) and was completed in 24 days. It imparted one-day awareness training sessions to around 135 managers and key users explaining the project and roles of core team members and users. This international approach ensured that any issues were dealt with rapidly and effectively. The yearly closing ended on the 31st March 2001.
both solutions in the mySAP Business Suite family of business solutions. in real time. Hero Honda chose its top 125 suppliers – together. Automating Supplier Transactions In February 2004. For example. Suppliers can now see the status of their orders. Then they would get our material requirements plan from the ERP [enterprise resource planning] system and post the information on their portal. Also. the company continued to enter its customer orders manually – using a portal to communicate with suppliers. This kind of error would slow down the receiving station while their people would seek approval for receiving the extra quantity. They can also use the portal to make confirmations along the way – for 9 . They also had to deal with incorrect deliveries from vendors when they sent either less or more than the scheduled quantity. This was done through periodic updates – twice a day – and hence did not consistently give the latest information to their partners. Their suppliers were given a plan for the month but changes are often necessitated by market conditions – like changes in the mix of models and colors. Hero Honda began a pilot test. mismatches like this meant that either they carried more inventory than needed or caused production holdups if the quantity supplied was less than ordered. they account for 95% of the company’s supplies.SUPPLIER & CUSTOMER RELATIONSHIP MANAGEMENT Automotive – Motorcycles Processing Orders Manually They have a large supply chain and they needed accuracy and speed in the deliveries of raw material and components. They wanted the ability to respond to these changes by aligning the production plan. They had no visibility of materials in transit and a lot of time was wasted on follow-ups. supply schedule of components. And there could also be increase or decrease in demand. they might have ordered 100 units but the supplier delivered 110. For the rollout of its supplier portal. It took a few days to bring in the customer orders and consolidate them. and phone calls. e-mail. Hero Honda had already been using the mySAP™ ERP solution for its core applications but until January of 2004. and they can see new delivery schedules as soon as they’re processed by the Hero Honda production plan. Most of these suppliers now perform their transactions with Hero Honda through the Web-based self-service portal. and invoices. shipments. bringing in mySAP Supplier Relationship Management (mySAP SRM) as well as mySAP Customer Relationship Management (mySAP CRM). and other resources to handle this efficiently. They used to receive orders from dealers in the form of spreadsheets.
the company benefits from end-to-end process integration. according to Balasubramanian. SAP® Consulting It took three months to complete the rollout. Helping Hero Honda speed up the process – and helping implement some of the newest features in mySAP SRM – was SAP® Consulting. The bar code feature is used by those local suppliers who make just-in-time deliveries several times each day. it’s faster and easier to process their deliveries via a bar code reader on the delivery dock than it is to make constant updates to the self-service portal. their customers might start asking for a new color or a different model.example. as scheduled. and on Monday morning our suppliers are all receiving our delivery schedules. They might do this to account for a sudden change in customer demand – for instance. the following 10 . from both the Asia-Pacific region and SAP headquarters in Walldorf. They assisted them during the entire implementation process and transferred knowledge to them. which in turn translates into a substantial cost savings. “Our dealers place their orders once a month. So every Friday we get our orders in. as well as spare parts. we consolidate them on Saturday. mySAP SRM experts. to confirm that they can handle a certain variation and to confirm that they’ll meet the delivery schedule. as a feature of mySAP CRM. a dealer might order several hundred motorcycles. That translates into an inventory savings of about 10%. one that might occur because of an upcoming holiday. worked on the project and helped Hero Honda develop some of its most complicated direct materials processes. “For these revisions. With the two portals now in place. Even though dealers normally place their orders on a monthly basis. The automation also increases Hero Honda’s own ability to be responsive to its dealers. directly from our production planning system. Also. they helped them implement instant messaging. Hero Honda saves approximately three days over the time it used to take to complete this process. “Typically. they unlocked some software features that were not known even to be existing by people at HHML. we can get the change in on Friday and be pretty sure that the entire shipment will go out. which was helpful in contacting the suppliers quickly in the event of a production scheduling change – say.” Because the ordering process is now fully automated. For them. End-to-End Process Integration Hero Honda also implemented a customer portal. there are many times when they want to revise an order that’s already in process. For instance.” he says. SAP Consulting and the Asia-Pacific solutions team also helped Hero Honda integrate a bar code– reading function into the system. Germany.
leave loan. All this has resulted in HR professionals doing away with costly. Hero Honda. it’s easier for suppliers to check their orders on the portal and they know that the portal’s information is both accurate and up to the minute. the company is planning to set up a portal where employees can access information. tax. organising or disseminating information to their employees. Later. need in order to continue to take advantage of this fast growing market. For one thing. marks the beginning of a new era in the functioning of HR professionals Hero Honda has opted for a SAP HR module.” eHR IMPLEMENTATION With technology touching all aspects of today’s business. informs that the company is in the process of starting an ESS system which will enable employees to assess all information about their salary. there is increasing usage of IT and Internet technologies in a company’s HR department. For its knowledge management requirements.” The system’s end-to-end integration pays dividends in maximizing order accuracy. Since the advance shipping notification created by the supplier is derived from the purchase order. and they. exchange ideas freely and read articles compiled by the HR department and all employees. The past one year has seen IT playing a key role in the Personnel/ People Development/ HR departments of companies. as well. vice president-information systems. they also plan to use the intranet for external and internal recruitment.” says Balasubramanian. which according to industry experts.week. etc. which are trying to make the best use of their systems for storing. with adoption of IT (both as process and tool) becoming a necessity for them. assessment and appraisal purposes 11 . Suddenly HR managers are finding themselves in a whirlwind of technological changes. the chance of a delivery mismatch with the order is almost zero. The customers appreciate this kind of responsiveness and it’s just what they. time-consuming and redundant processes and opting for IT-enabled HR systems. They’ve greatly reduced the chances of mismatched orders too. S K Balasubramaniam.
the company has been constantly evolving its information security set-up to keep pace with its expanding IT infrastructure. especially when it comes to a manufacturing company like Hero Honda. thereby warranting the need for a complete anti-virus solution. there was anti-virus software installed only on a few 12 . in line with these growing requirements. IT assets and applications.000 email ids for its users.5 million motorbikes per year. financial services and insurance (BFSI) sector. Hero Honda has nearly 1. But for any organisation there is a need to have a clear identification of authorisations through information classification. Before this. The company identified the need for complete information security with IT security as one of the aspects within this whole concept. the company put its mailing system into place. Nonetheless. IT security will take care of only some intrusions. As is the case with any other large organization. including information security. The need was to find out what type of information was there. Enterprise security at Hero Honda goes beyond IT security to encompass complete information security. This. Taking all this into consideration. Hero Honda has also grown on all fronts. it is important. A disruption in IT infrastructure could spell disruption in business operations. These facilities now churn out over 3.600 desktop users. expansion of its network. who should access it and who should not in order to ensure complete data integrity Along with business growth. which is extremely dependent on its computer systems and networks for its operations. The security approach has been evolutionary. Email is a backbone of today’s business and justifying that the company has created approximately 2. It has set up two manufacturing facilities at Dharuhera and Gurgaon in Haryana. Today enterprise security at Hero Honda has reached one of the most critical junctures as the bike major has recently created a comprehensive information security policy.Information and IT Security Management Enterprise security may not be as critical in a manufacturing organisation as in the banking. The company undertook a complete revamp of its IT infrastructure with a new architecture. This growth is also applicable to the company’s employees and their business needs. Connecting the entire organisation during 1999. however also led to the import of viruses into the system. Security set-up so far The year 1999 was the inflection point for the entire IT set-up at Hero Honda.
Hero Honda has now implemented the complete suite.desktops. Likewise. it gives the company power to enforce its anti-virus policy. The company chose McAfee for its comprehensive features and good installed base. spam filter and antivirus. and the Gurgaon and Dharuhera plant. Hero Honda is using Group Shield for Lotus Notes mailing system. The company was facing difficulties vis-à-vis messaging and there were Internet access and security issues related to spam. which is an agent installed on each and every desktop and delivers the means to control the anti-virus applications. they soon realized that ISP level security was inadequate for the task at hand. online and spam-related malware attacks and choked bandwidth. Dharuhera and Gurgaon plant. The internal mail server is a central mail repository from where all the employees pop their individual mails. According to Balasubramanian. Under AVD. CORE CRISIS Messaging systems form the frontline for any organization. As a result. all three AVD servers get synchronised with McAfee server and download the DAT file (incremented) immediately. They have ISP level security which consists of a firewall. Hero Honda has three AVD servers at the head office in Delhi. with the Gurgaon and the Dharuhera AVD servers. ePolicy has made it easier to enforce any anti-virus policy in the company in just two hours in all the offices. which was later upgraded to the Active Virus Defence (AVD) system around two years ago. The AVD server at Delhi takes care of all head office-based servers. covering the desktop. The external mail server forwards corporate mail to the internal mail server that is deployed on our LAN over SMTP. 13 . In case of a virus attack on any of the servers and desktops. to update the policy on end-user desktops and to monitor update progress through graphical reports. the ePolicy agent updates the AVD server about this new virus. All the employees based in New Delhi. the company wanted to filter Web access. The AVD works under the ePolicy Orchestrator agent. The company first deployed the Total Virus Defence (TVD) system. servers and mail gateway. As part of the AVD architecture. whenever McAfee releases any new anti-virus DAT files. All the three servers are connected to the McAfee Internet site through the Net. which are then distributed to all the servers and desktops. Moreover. However. Netshield for NT and Window 2000 servers and Virus Scan for end-user desktops. POP their mails from the local mail server. desktops and all zonal and area office desktops.
Earlier they only had a mail gateway through which they exchanged mail. HHML also has a vast chain of dealers and service stations spread across the country.e. The management began questioning the IT department regarding the extent of spam. Many a times the recipients were tempted to read the spam and the mail processing time kept increasing at the cost of productivity. Legitimate e-mail messages were often lost in the maze of spam. For them. apart from providing Internet access through the proxy server. i. That used to work out to around 18. Often business correspondence was incorrectly classified as spam. The ISP was able to filter out about 50 percent of this. So. But now.500 pieces of spam per day. the company also decided to provide connectivity with dealers and vendors for information sharing. Need for firewall The need for further beefing up the security set-up beyond an anti-virus solution was felt as the company further opened up its systems to external access. Having close to 9. Of these at least 70 percent were spam. Employees stationed at remote locations such as Gurgaon and Dharuhera were worst hit.000 e-mail messages per day.000 spam messages hitting the local mail server on a daily basis was something that was not acceptable as. Emphasizing another side of this crisis. quite often. The download time of an individual message was very high and this was particularly frustrating since at least 50 percent of the mail was spam. a case of false positives. So mails exchanged between these offices often got lost in the maze of spam and the business suffered. despite the IT team’s best efforts. They tried out a few standalone. which translates to almost 1 GB of storage space. Mailboxes were clogged with spam. software-based spam filters with little success. and deleted while spam continued to pour in. they had to be checked and deleted manually. they could directly log in to the Web server. This was the first time that they were really connected to their partners.The company receives an average of 26. frustrating process. there really wasn’t a need for a firewall at that time.000 messages hit our internal mail server everyday. Still. This required the deployment of a firewall to guard the systems from possible hackers and virus attacks. which was mostly unanswerable. downloading legitimate mail along with the torrent of spam that dodged the ISP’s filters from the external mail server to the local one was a painfully slow and. Bandwidth consumption did not just increase. the mail was first downloaded to the local mail server and then had to be POPped to their remote individual mail boxes. almost 9. Around a year-and-a-half ago. since they are 14 . it shot through the roof and to keep adding bandwidth was not a viable solution. Apart from a vast number of employees. Once the messages reached an individual’s mailboxes.
Comsat Max. the user gets the rights for accessing the data. it keeps on identifying and adding critical notebooks and desktops. It has deployed PGP software on the critical desktops and notebooks within the organisation for encrypting data. Firewalls deployed at Comsat Max: Hero Honda has a perimeter firewall that serves as the Internet gateway for both the plants and head office. The company’s IT security architecture divides the network into zones. Depending on his/her profile. The rules for access control have been defined in the server itself. the sites that can be accessed. etc. which runs on a Nokia box and is managed and monitored by the service provider. The company has taken various measures to ensure data integrity during internal access as well. which was deployed around two years ago for Internet access to internal users. The information on the desktops and notebooks is kept in a folder and is encrypted. which requires a user name and password to access it. And the answer was… 15 . Furthermore. The zones created are: • • • • • • • DMZ zone Third-party zone Application servers zone Critical servers zone Security management zone Network and system management zone LAN & WAN zone Unauthorised Internet access Restriction of access to unauthorised sites is taken care through the proxy server. which is well documented with profiles for each user. based on the function of the infrastructure contained therein. It has chosen Checkpoint as its firewall. Hero Honda has built in integrity in the application itself.allowing people to log in and with people accessing the Internet there is the need for a firewall. While the software was deployed around two-and-a-half years ago. It defines factors like which PCs have access to the Internet. The authentication is done through passwords. time period during which only certain users can access the Internet.
They offered them Cyberoam’s anti-spam software. the complaints persisted even after this quantum leap in bandwidth availability. Rather than going out for point-to-point solutions we suggested that the company go in for Unified Threat Management (UTM). It is an appliance through which mail gets routed. The entire mail and Web traffic passes through Cyberoam. Yet. Several messages contained a malicious payload of viruses. spyware and keyloggers. Jose Kurian. and one each at production plants in Dharuhera and Gurgaon. the little bandwidth that was left was consumed through unrestricted surfing. Lack of Internet usage accountability led to malicious sites being surfed. Digvijaysinh Chudasama. Unprotected and unrestricted Internet browsing also left gaping security holes. Vice President. In the absence of Web filtering and access accountability.The spam included a good smidgen of Phishing which slipped through the primary security layer at the ISP’s end. They purchased four Cyberoam appliances. Cyberoam’s identity-based security empowers administrators to proactively defend the enterprise network against both internal and external threats. This proved detrimental to organizational productivity.” Kurian added that the Cyberoam UTM solution sits at the gateway level. The lack of filters on browsing left the organization wide open to attack from malware. three 250is and one 100i. The changed scenario 16 . suggested a plan to secure the company’s e-mail. All Cyberoam appliances have been deployed in bridge mode.” While considering the core problem and sensitivity of the issue for Hero Honda. spyware and Trojans. As a remedy to slow browsing and other bandwidth problems. tracking cookies. the company was forced to upgrade its initial 64 Kbps Internet connection to a 4 Mbps pipe. business partner of Cyberoam. COO of Tarak Technologies said after examining the problem they understood that response time was crucial. Tarak Technologies. The messaging application cannot go down for a long period of time at a company such as Hero Honda. A 100i appliance is deployed at their upcoming facility at Haridwar. Cyberoam said that Enterprises are replacing best-of-breed security solutions in their networks with Unified Threat Management solutions. Malware entering through the messages and Internet browsing was also a major source of concern. Cyberoam’s all-in-one security platform aids the transition without compromising the feature granularity of standalone solutions. Sales. they promptly began consuming bandwidth and causing system crashes. One 250i appliance is deployed at our corporate office in New Delhi. filtered and forwarded to the local mail server. Once these entered the network. which in turn infected the network with a host of spyware.
information disposal. The company’s plans for connectivity with business partners included rolling out the second phase of its supply chain solution. training and physical security. the consultants pointed out. acceptable use. created vulnerability as the users could plug them in and start using them. access control. system development. the modems were left behind. A clean network. Information security policy While the company had some documented policies relating to various aspects. defining the security issues both from within and outside the organisation. These domains include networking and telecommunication. including some recommendations regarding the firewalls and the protection of servers. which didn’t exist earlier. it is also trying to allow employees access to applications like instant messaging and SAP. Furthermore. the need for a robust policy was imminent. incident management. The company has already carried out pre-vulnerability assessments. e-mail. based on the recommendations of the consultants. Once insufficient. back-up. use and maintenance. This involves 17 . notebooks. Hero Honda started working on its new information security policy with HCL Comnet as the consultant. allowing dealers and vendors to interactively do transactions with the company on the Net. (It already provides dealers and vendors one-way access to the Web server). Internet access is productively focused. Total bandwidth consumption fell sharply and the ISP bills also took a nose dive. The policy broadly covers around 17 domains. safe and responsible surfing and spam free mail boxes have all culminated in a drastic reduction in calls to the IT helpdesk. they were not comprehensive enough to cover all areas. This is amply reflected in the bandwidth usage. The consultant also recommended the removal of modems provided to users for directly accessing the Net from their PCs. especially for field staff and mobile workers. fixed the vulnerabilities and then conducted post-vulnerability assessments. including IT security post-1999.Post-implementation. Hero Honda also worked on the information classification part of its information security policy. A few months ago. According to Balasubramanian. anti-virus. Though the connections had been removed. On the other side. Internet. the company fixed up the loopholes in its security set-up. which required opening up its systems to partners. desktop. software purchase. password control. which. bandwidth availability is now quite satisfactory. information classification. Increasingly expanding connectivity warranted the need for a complete policy. In such a scenario. HCL Comnet carried out the vulnerability assessments and outlined the areas requiring improvement. These included recommendations for patch upgradation on various operating systems and for networking devices as well as physical security—specifically for the server room.
clean and secure Web surfing has become a reality. Employees at the remote site no longer have to wait indefinitely for their e-mail to be downloaded. “The Cyberoam UTM has maximized return on investment. However. However. IP spoofing has been curbed. It exceeded our expectations before the implementation. As all the Webbased traffic is scanned for spyware and malware. but also proved effective against any type of mailbased threat. the actual deployment time was very less. Cyberoam’s anti-virus solution scans SMTP. As spam disappeared. inter-office connectivity benefited greatly. Cyberoam’s anti-spam solution not only blocked spam. Apart from information classification. Employees were pleasantly surprised to find spam-free inboxes. The cost involved in getting Cyberoam’s UTM solution at Hero Honda was around Rs 12 lakhs. As the Web filtering rules are implemented on the user’s identity and not just on the IP address.” The antispam feature effectively stops around 9. which in turn leads to a reduction in unproductive surfing.000 bits of spam each and every day. the access rights to various classes of people are also being defined in the policy. we also saved time and our legitimate e-mail was no longer buried under. criticality and availability. Cyberoam’s identity-based Web filtering ensures employee accountability. Bandwidth used to connect remote offices was also saved. The RoI Factor According to Avnesh Jain. It took almost a year to deploy this solution at all locations because they went in for a pilot and gradually scaled up from there. providing zero hour protection to the HHML network. The IT department has created groups and assigned Internet access rights based on their business profile in HHML. The present exercise of classification of information is being done depending on confidentiality. It is content-agnostic and equally effective against image based spam. Pattern detection technology ensured a minimal window of vulnerability. IMAP. FUTURE PLANS 18 . The solution used Recurrent Pattern Detection technology. leaving no security gaps unattended. The functional heads are made responsible for their departments and endorse the classification of information being done.participation from the top management with user representation from all the functional areas. Cyberoam’s HTTP client is used to authenticate the user. POP3 mail traffic and HTTP and FTP activity as well.
in the second phase it will allow them to interactively do transactions with the company on the Net. it is planning to build more components on top of its existing security set-up. as a policy. user authentication and single-user sign-on. 19 . Once the second phase starts rolling out in April next year.” explains Balasubramanian. Hero Honda will initiate regular half-yearly audits to check compliance with the security policy and also to check whether the policy needs a change. the company had allowed dealers and vendors only one-way access. Also.Now that Hero Honda is readying itself for the second phase of its supply chain initiative of connecting with dealers and vendors. “We will outsource primarily because the third-party service providers have the expertise and resources to monitor 24x7. hacking and intrusions to third-party service providers with SLAs. While in the first phase. As part of the new information security policy. the company will be outsourcing the monitoring of all its external access. the company plans to deploy additional features like an intrusion detection system.
And real-time information on product cost. One of the main reasons for the success of their SAP project was that the project was perceived as a business project. Hero Honda immediately saw marked improvements. Suppliers now create advanced shipping notifications in the system. Improved information exchange guarantees that the right goods are delivered at the right time. These include adding additional mySAP SRM and mySAP CRM functionality. manual data entry.BENEFITS TO HHML ERP helped in improving quality. Their old sales orders process was very timeconsuming. making for better inventory planning and reduced inventory carrying costs. and not as an IT project. The company has also significantly reduced error-prone. Apart from this. And different functional heads and module leaders were also involved in the project. implementing the SAP Strategic Enterprise Management application of mySAP ERP Financials and integrating it with SAP Business Information Warehouse (SAP BW). On-line interaction enhanced order execution efficiency thereby improving the responsiveness. Hero Honda is now planning a range of new SAP initiatives. profitability analysis. and rolling out SAP Enterprise Portal (SAP EP) to all users. the company’s employees simply have to confirm receipt. This accelerates deliveries – preventing loss of business due to delays. and when the shipment reaches Hero Honda. SAP BI and SAP EP are components of the SAP NetWeaver™ platform. AMBITIOUS PLANS FOR THE FUTURE Building on the success of the project. “Our new SAP solutions have enhanced our competitive edge. Besides.” 20 . Hero Honda has also streamlined its transactions with suppliers. We are confident that we’re on the right track for continued success. Now dealers enter orders directly into the system. there was no need for manual reconciliation any more and operational processes were improved at various stages. and dispatch and production status was made available too. Order processing was Standardized across all functions. the deployment of relational databases like Oracle and Ingres helped in consolidating data at one place and made it accessible to all authorised users GREATER RESPONSIVENESS. access and usage of transactional data and suitably eliminated multiple entries. FEWER ERRORS Following go-live in June 2004. The SAP BW component is provided in SAP Business Intelligence (SAP BI).
SAP Portals and ESS. they’re more responsive than ever before to dealers and other customers. many people who used to ride scooters now prefer motorcycles. But now they’re well equipped to handle the growing market and product mix and at the same time. as well as improved analytics through the data warehousing capabilities of SAP Business Intelligence. For another. Proposed future applications are CRM. as well as a steady increase in the complexities of manufacturing the two-wheelers. HHML has upgraded from 4.concludes Bala. Hero Honda expects steady growth in motorcycle demand in the future. They have just upgraded to a later version of mySAP SRM and this will usher in added functionality. 2002 and are implementing the ‘Human Resource’ (including India Payroll) module. Hero Honda is responsible for producing about 150 variations of motorcycle – not including accessories. It’ll help them to do more strategic sourcing by evaluating the suppliers and forming strategic partnerships. His company averages about three new models each year and. in many ways the new system represents only the tip of a much larger iceberg. Balasubramanian points out that the spectrum of motorcycle models and colors is also growing. They have implemented the ‘Plant Maintenance’ module in Sept. They’ll also implement self-service procurement for indirect materials and will extend the supplier portal by implementing a vendor-managed inventory function.” . The Supply Chain Management project is about to take off too. They are also putting in organised archiving of data on SAP and deploying live reorganization of database using a ‘Quest’ tool.6 C. For one thing. They have implemented the Solution Manager and are now looking for certification as a customer competence center. that the economy is strong and financing is readily available.6 B to 4. BW. The motorcycle market in India continues to be strong. HHML is in the process of making continuous improvements and changing configuration to add more functionality to the existing systems. 21 . Analytics As valuable as Hero Honda’s supply chain automation is. with the current selection of models and colors. thanks to mySAP SRM and mySAP CRM. Coming Next: Improved Collaboration.
For dealers and distributors. “With a proper plan and proper implementation of those plans. They were of the opinion that ERP implementations were mainly failures. “Thanks to the stable IT infrastructure the company’s business analysis has become very sound and credible. which helped us in experimenting with new technologies. The company is also is planning to connect some of its vendors through a process called direct online.The whole idea is to make things completely automated. especially with support from management. 22 . IN THE IT PIPLINE In the near future the company is planning to introduce videoconferencing facilities and bar coding systems at the assembly section and store. There has also been very good user support. rather it will be self-assuring. The only major problem the IS team has faced till date was management perception of ERP.” says Balasubramanian. IT has taken off very well. and only one of ten companies in the Asia Pacific region selected by SAP for this honour.” comments Balasubramanian. “Today. the IS department has not faced any major bottlenecks.BOTTLENECKS Till date. Hero Honda has plans for Web-based standard connectivity. Many felt that instead of going in for ERP they should implement an e-business solution. Balasubramanian had to tell the management that one could not run e-business without a stable information systems structure within the organisation. we have overcome all hurdles.” he adds. The company is now one of the reference sites for SAP. By this the vendors will supply directly to the stores and there will no quality check. Balasubramanian also has plans to implement some more modules of ERP like HR and production management.
Wide Area Network Between Gurgaon plant and Dharuhera plant – Primary link is a 2 Mbps leased line from Bharti with RF and VSAT being secondary back-up links. • Connectivity for marketing offices with plants and head offices – VPN connectivity between 20 locations through 64 Kbps leased line with ISDN as a back-up.Snapshot of Hero Honda’s IT set-up • • • • Number of servers – Over 35 servers (All IBM) Proxy server – For providing Internet access to internal users. Internet connectivity through leased line from Comsat Max 23 . Another 2 Mbps link from Gurgaon plant to Comsat Max and then to the head office is a secondary link. Between Gurgaon plant and Delhi head office – 2 Mbps leased line as a primary link. Web server – For providing access to dealers and vendors.
Hero Honda – the world’s largest two-wheeler manufacturer – chose the mySAP™ Supplier Relationship Management (mySAP SRM) solution to integrate and automate its large and complex supply chain. Key Challenges • Supplier order processing not well synchronized with production planning • Proprietary supplier portal provided no transactions. over 50 suppliers have since been covered • Implementation included training Hero Honda suppliers as well as buyers Key Benefits • Faster supply chain order processing – cut three days from old schedule • Improved accuracy of deliveries from 98% to 100% • Better responsiveness to customer changes • Online communication with suppliers integrated and traceable • Inventory planning improved – 10% reduction in inventory carrying cost • Transaction costs reduced because of fewer discrepancies to handle • Overall lower process and transaction costs Implementation Partner: SAP® Consulting 24 .SUMMARY Faced with growing market demand and inefficiencies in its supplier order processes. only information Project Objectives • Speed up and automate supplier order processing • Synchronize customer orders with supplier schedules Solutions and Services • mySAP SRM • mySAP Customer Relationship Management (mySAP CRM) solution Why SAP® Solution Ability to integrate the new supplier portal with the existing mySAP ERP Solution AT A GLANCE Implementation Highlights • Three-month initial rollout covered 15 of the top 125 strategic suppliers.
networkmagazineindia.co.networkmagazineindia.com/200412/coverstory04.htm http://www.shtml http://www.shtml 25 .shtml http://www.expressitpeople.com/20031124/appsspecial10.shtml http://www.expresscomputeronline.tceworld.com/200410/coverstory01.Existing Environment: mySAP ERP Database: Oracle Hardware: IBM Operating System: AIX BIBLIOGRAPHY WEBSITE ADDRESS http://www.expresscomputeronline.shtml http://www.com/20070917/management01.expresscomputeronline.shtml http://www.com/20020415/cover1.in/index_files/tmm/kma/hr/pm/HR_pm_0511.com/20020701/ebiz2.
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