Gem of a solution:

IT for Gems and Jewellery

Satyanarayan B
CIO, Dimexon Diamonds Ltd.

Mumbai, 7th June 2007

Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors

2
Agenda
•Indian Gems &
Indian Gems & Jewellery
Jewellery Industry:
Industry:Overview
Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors

3
Indian Economy
•4th largest economy (purchasing power parity)*
•Economic Growth 2003–06 CAGR: 8%
•Strong Domestic Demand
•Boom in Services and Industries
•Higher disposable incomes
•HNI**growth @ 15%

*Source: Economy Watch ** High Net-Worth Individuals (HNI) with the ability to invest $1m
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Indian Diamond Industry
•Indian share in global diamond market:
– By Value: 55%
– By Carats: 80%
– By Pieces: 90%
– By Workforce: 94%
•Diamond Exports 2006:
– US $ 3.6 bn (+20%)
•Dominance of family owned businesses

•Source: www.ibef.org 5
Indian Diamond Jewellery
•3rd largest retail diamond market
•Indian branded jewellery market
will grow to US$ 2.28 bn
by 2010 (CAGR 40%) *
•FDI in single brand showrooms
•Emergence of local brands
•Focus on Customization
•DJ Exports < 2% of global sales

* Source: McKinsey & Co Report 6

Competitive advantages for India
•Govt. Support
•Technology
•Human Resources
•Global Supply Chain

7
Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon
Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors

8
 Dimexon was born to a family of Jewellers in 1939

Business Verticals

Dimexon
Dimexon Kirtilal Port Infra InfoTech
Eurostar
Diamonds Kalidas structure Solutions
Jewellery

9
Corporate Philosophy
Vision
To become the leading diamond and jewellery company in the world
Mission
Bring joy to people’s lives and give expression to their emotions
Core Values
Trust, Honesty and Integrity
Consistency in product and service quality
Attention to Detail
Meritocracy
Corporate Social Responsibility
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Dimexon Diamonds
•A Leader in diamond manufacturing
•Turnover (2006): INR 1700 crores
•Over 5,200 Employees
•12 Nationalities
•Manufacturing locations
–Coimbatore, Mumbai
•Sales Offices
–India, Belgium, Hong Kong,
USA, UAE

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Our Manufacturing Process ensures optimum
value of diamonds
•State-of-the-art Manufacturing
facilities
•Cutting edge Technology
–Automatic Polishing Units
–Optical Technology
–Laser Technology
•Cutting edge Processes
–Cell Manufacturing

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Qingdao Dimexon Eurostar Jewellery
•High-end Jewellery Manufacturing
•State–of–the art manufacturing
facilities
•Serving to needs of leading brands
–Design & product development
–Production
•Core strengths
–Production Engineering
–Quality Control 13
Chosen Partner of Leading Suppliers
•DTC Sight Holder*

•Rio Tinto’s Select Diamantaire

•Alrosa (Russia)

•Aber Diamonds (Canada)

* DTC: Marketing arm of De Beers Group 14

Catering to Global Brands

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Commitment to Diamonds
•Business Standards:
–Best Practice Principles (BPP)
–Business Excellence Model (BEM)
–ISO Certifications
•Business Ethics:
–Kimberley Process
–Council for Responsible Jewellery
Practices (CRJP)

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Dimexon strongly believes in giving back to the
diamond community
•Industry Beneficiation
–GIA Endowment for
Education in India
–Access to the Indian
jewellery trade to world
class training

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Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors

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Strategy Review 2003
To focus on profitable growth in diamonds through
•Improved customer understanding
•Robust supplier relationships
•Manufacturing excellence
•Strengthen downstream presence
•Robust IT system to support the business

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IT Strategy: As Is Review
•Multiple legal entities across various locations
•Independent function specific systems
•Distributed systems across various platforms
•Issues:
–Inadequate management control
–Absence of system integration
–Data inconsistency
–Delay in reporting and decision making

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To Be Process: Application Architecture
Knowledge Customer Supplier
Management Portal Portal
Mailing/ Messaging

Intranet/ Extranet Applications

Access Rights/ User privileges Management

Opportunity
Contact Customer
Managemen
Management Support
t
Relationship Management

Security Management
Collaboration Tools

Estimation MIS, BSC Profitability

Calculator Reporting Analyser
Business Intelligence
applications
Workflow

Finance & HR &

Manufacturing
Accounts Payroll
Inventory Sales
Purchasing
Management Management
Transaction Management
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Phase I of Application Architecture
Mailing / Messaging /

Extranet Applications

Access Rights/ User privileges Management

Intranet

Security Management
Collaboration Tools

Relationship Management

MIS Reporting
& BW
Business Intelligence

Finance & Manufacturing

HR
Accounts / Quality Mngt

Inventory Sales
Purchasing
Management Management
Transaction Management 22
Why SAP ?
•Most suitable integrated system
•Platform to address future requirements
•Vast exposure across all industries
•Good choice of implementation partners
•Large base of SAP trained persons/ consultants

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SAP Implementation at Dimexon
•Management Initiative
•Project plan
•Extensive SAP training sessions
•Rigorous integration tests
•Go Live
•Stabilization of the system

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Implementation Methodology

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SAP Implementation at Dimexon
•Management Initiative
•Project plan
•Extensive SAP training sessions
•Rigorous integration tests
•Go Live
•Stabilization of the system

26
Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges
Challenges and solutions
Solutions
•Critical Success Factors

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 Implementation Challenges
1. Absence of industry vertical
2. Dual unit material management (carats & pieces)
3. Large number of transactions and key strokes
4. Banking and Trade Transactions
5. Global lot management
6. Making SAP success at end user level

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The Solutions
1. Knowledge transfer to implementation partner
2. Preparation of Material Master
3. Inbuilt interfaces with machines
4. Export Bills linked with Bank Borrowing
5. Work around and developments
6. User friendly interfaces, extensive training

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Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical
Critical Success Factors
Factors

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Critical Success Factors
•Top driven implementation
•Dedicated core team: Business and IT
•Well planned Training Schedule
•Stake holder's Engagement
•Project implementation management
•Rigorous Integration Testing
•Servers Sizing and Communication Links

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Key Result Areas
•Availability of online information
•Data Accuracy and Security
•Inventory Control
•Phase-out of Legacy Systems
•Cost Savings
•Potential Benefits
•System Upgrade

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 THANK YOU
satyanarayan.b@dimexon.com
www.dimexon.com