Oracle Customer Case Study

Siebel CRM Drives Closer Cooperation between Tata Motors and Dealers to Improve Sales and Service
“Integrating Siebel Automotive with our dealer management system ensured that our dealers would immediately see the value in the solution. This has helped us overcome the usual resistance to change and gain rapid acceptance from our dealers.”—K. R. Sreenivasan, Head of CRM and DMS Project, Tata Motors Tata Motors is India’s largest integrated automaker, with a line-up that includes commercial, utility, and passenger vehicles—and market shares approaching 60% for commercial vehicles and 20% of India’s passenger car market. Faced with increasing competition from abroad, a cyclical business environment, and the challenge of a widely dispersed dealer network, Tata Motors implemented Oracle's Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Seamlessly integrated with Tata Motors’ dealer management system and SAP back-office applications, Siebel Automotive has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. Founded in 1945, Tata Motors is India’s largest and only fully integrated automaker, with 22,000 employees; 1 million customers; and annual sales of approximately $3 billion in commercial vehicles, utility vehicles, and passenger cars. It is part of the widely diversified Tata Group, which has annual revenues of $14 billion, approximately 2.4% of India’s Gross Domestic Product (GDP). Tata Motors holds a 59% share of India’s market for medium and heavy commercial vehicles, with global sales that rank it among the top six manufacturers of commercial vehicles worldwide. Although the company only entered the passenger car

Tata Motors Mumbai, India www.tatamotors.com

Industry:
Automotive

Annual Revenue:
US$3 billion

Employees:
22,000

Oracle Products & Services:
Siebel CRM Siebel Automotive Oracle Database

Key Benefits:
Improves demand forecasting, planning, and logistics and inventory management Offers 360-degree view of customer and vehicle information and streamlines workflow to enhance customer service and improve efficiency Enhances product quality and increases revenues from both vehicle sales and after-sales parts business

Copyright © 2006 Oracle. All rights reserved. Printed in the U.S.A.

Published June 2006

Oracle Customer Case Study

“Overall, Siebel Automotive has transformed our organization and made it truly customer-centric. Today, our employees and dealers are much more responsive and can serve customers more efficiently and effectively—drawing upon real-time, centralized customer and vehicle data.”
K. R. Sreenivasan Head of CRM and DMS Project Tata Motors

business in the late 1990s, it has already captured a 16% share of the passenger market in the country. Helped by economic reforms over the past decade, the Indian economy has expanded rapidly and seen dramatic increases in competition. In the automotive sector, all of the largest players worldwide—such as General Motors, Ford, Toyota, Honda, and Mercedes Benz—are competing for a share of the market consisting of more than 950 million consumers. This competition, along with the cyclical nature of demand in India’s automotive industry, has made it more difficult to grow revenue and sustain margins. “Globalization has changed the entire business environment for our organization,” says K. R. Sreenivasan, head of the customer relationship management (CRM) and dealer management system project at Tata Motors. “We have developed strategies to pursue our goal of becoming a more global company, while continuing to grow domestically.” Standardizing Customer-Facing Processes To address its competitive challenges, Tata Motors began standardizing its customer-facing business processes companywide, laying the foundation for stronger dealer relationships, improved operational efficiency and effectiveness, and a better customer experience. This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India. In conjunction with its reengineering effort, TATA has deployed a robust technology platform to improve the flow of information across the enterprise. The platform consists of an innovative dealer management system, which helps individual dealerships with everything from inventory management and credit reporting to calculating commissions, and Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. By tightly integrating Siebel Automotive and its dealer management system, TATA has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from

Copyright © 2006 Oracle. All rights reserved. Printed in the U.S.A.

Published June 2006

Oracle Customer Case Study

another. To further enlist dealer support, Tata Motors involved dealers throughout the solution configuration and deployment process. “Integrating Siebel Automotive with our dealer management system ensured that our dealers would immediately see the value in the solution,” Sreenivasan explains. “This has helped us overcome the usual resistance to change and gain rapid acceptance from our dealers.” Deploying Solution in Three Phases Tata Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1, currently under way, focuses on capturing customer and vehicle data and automating routine tasks. Phase 2 will focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3 will focus on tuning the system and delivering additional value-added services to customers. Siebel Automotive has been closely integrated with a wide array of SAP back-office applications, including applications inventory management, fulfillment, and parts location. Pricing and tax calculations can be adjusted for each dealer’s requirements. In addition, comprehensive sales and reporting functionality built into Siebel Automotive enables TATA to distribute sales targets to its dealers and roll up sales numbers across the country. “Siebel’s proven SAP connector was a key factor in our decisionmaking,” Sreenivasan remarks. “We needed real-time data flow between the Siebel front end and SAP back end to be successful.” Tata Motors also liked the fact that Siebel Automotive provides multiorganization support, can be deployed easily over the Internet, and provides robust partner management capabilities— ideal for Tata Motors with its far-flung dealer network. Further, the user-friendly interface has simplified the process of training Tata Motors’ 10,000-plus dealer sales force. Covering a country with an area of 3.3 million square kilometers (or about one-third the size of the U.S.) also required an innovative communications solution. Tata Motors links its 1,600 customer touchpoints with its centralized data center in Mumbai using a combination of VSATs and high-speed virtual private networks.

Copyright © 2006 Oracle. All rights reserved. Printed in the U.S.A.

Published June 2006

Oracle Customer Case Study

Registering Strong Success with Dealers Siebel Automotive has already begun to deliver benefits for Tata Motors’ dealers throughout India. “Overall, Siebel Automotive has transformed our organization and made it truly customercentric,” says Sreenivasan. “We’ve overcome the challenges of relying on disparate sources of information, as well as having inconsistent business processes. Today, our employees and dealers are much more responsive and can serve customers more efficiently and effectively—drawing upon real-time, centralized customer and vehicle data. “One of our first dealers to install Siebel Automotive said that his sales volume doubled in three months without the need for additional manpower,” he continues. “Another dealer said that for the first time he was able to view his entire stock of vehicles and how his inventory was aging, improving his control.” Siebel Automotive has also helped dealers respond to customer queries regarding vehicles that aren’t in a dealer’s stock, but which can be ordered directly from Tata Motors. “Within the first year of implementing the solution, we are targeting improvements of 5 to 10% in customer satisfaction, revenue growth, operating cost reduction, and productivity gains,” says Sreenivasan. “These numbers should increase considerably over time.” He concludes, “Siebel has been very committed to helping us in all aspects of the project. Combining Siebel Automotive with our dealer management system is unique, so we have needed quality support. Siebel has played a major role in getting us to where we are today.”

Tata Motors provides a wide range of commercial, utility, and passenger vehicles to customers in India and around the world.

Copyright © 2006 Oracle. All rights reserved. Printed in the U.S.A.

Published June 2006

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