You are on page 1of 23

MIS PROJECT REPORT

MIS PROJECT REPORT SUBMITTED BY:- – GAUTAM ACHARYA, S- 25 – GOPAL YADAV, S- 26 –

SUBMITTED BY:-

GAUTAM ACHARYA, S- 25

GOPAL YADAV,

S- 26

HARJOT SINGH,

S- 27

JATIN BARUI,

S- 29

MAYANK KAURA,

S- 35

VIJAYA S,

S- 72

V VISWANATHAN,

S- 84

HARI NARAYAN RAJ,

S- 85

ANINDA RAY,

S- 86

MIS PROJECT REPORT SUBMITTED BY:- – GAUTAM ACHARYA, S- 25 – GOPAL YADAV, S- 26 –

MBA PT-III RD SEM (2010-2013)

Page 1

CONTENTS

REFERENCES

 

3

  • 1. FMCG

 

4

  • 2. INDUSTRY HISTORY

 

4

.................................................................................................

4

 

2.2. PROJECTED GROTH ESTIMATE

5

  • 3. INDUSTRY PARAMETERS

 

5

  • 4. CRITICAL SUCCESS FACTORS OF FMCG INDUSTRY

6

 

THE CRITICAL SUCCESSPYRAMID(CSP)

4.1

7

  • 5. BEST IN CLASS COMPANIES

 

8

  • 6. AN ORGANISATIONAL IN THE INDUSTRY

9

  • 7. BUSINESS OPERATION OF ITC

 

9

  • 8. IT-IMPLIMANTATION TRACK RECORD

13

..................................................................................................

  • 8.1. IT HIERARCHY

13

  • 8.2. WORKING OF IT HIERARCHY

 

14

8.3 CLASIFICATION OF IT PROPOSALS

15

15

  • 8.5. HARDWARE AT ITC ......................................................................................................

15

  • 8.6. VIRTULISATION

 

16

8.

7 ERP AT ITC

16

  • 8.8. SPECIFIC IT INTIATIVES AT DIVISIONAL LEVEL

16

  • 8.9. FIRST MANUFACTURED-FIRST-OUT(FMFO

16

8.8.1.

PUSH MIS

17

  • 8.8.2 FASTREACT EVOLUTION .........................................................................................

17

  • 8.8.3 FREE BORDER’S PLM

 

17

  • 8.8.4 PROJECT DHANUSH

17

  • 8.8.5 E-CHOUPAL: STRATEGIC THRUST .......................................................................

18

  • 9. FUTURE SCENARIO BUILDING FOR FMCG

20

  • 10. STRATEGIC USE OF IT

.........................................................................................

21

  • 11. IT VISION & IT STRATEGY OF ITC

23

CONTENTS REFERENCES 3 1. FMCG 4 2. INDUSTRY HISTORY 4 ................................................................................................. 4 2.2. PROJECTED GROTH ESTIMATE

MBA PT-III RD SEM (2010-2013)

Page 2

REFRENCES

White paper on “Competitive Capabilities for the Future” by S Padmanabhan & J Krishnamurthy, TCS

Technical paper on “Future of IT application development”, IBM, June 2007

Case Study: “Community based Information System, ITC e-choupal”, FAO magazine, Nov 2005

ITC website, www.itc.co.in

Case study “ How ITC uses process to stay sharp” by Rahul Neel Mani from Reader ROI

Case study “ITC Lifestyle’s Proactive Planning Reaps Benefits”, from Reader ROI

REFRENCES  White paper on “ Competitive Capabilities for the Future ” by S Padmanabhan &www.itc.co.in  Case study “ H ow ITC uses process to stay sharp ” by Rahul Neel Mani from Reader ROI  Case study “ITC Lifestyle’s Proactive Planning Reaps Benefits” , from Reader ROI MBA PT-III RD SEM (2010-2013) Page 3 " id="pdf-obj-2-57" src="pdf-obj-2-57.jpg">

MBA PT-III RD SEM (2010-2013)

Page 3

1.

FMCG INDUSTRY

The term FMCG means Fast Moving Consumer Goods. The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, or within one year. FMCG products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries and grocery items.

CHARACTERISTICS OF FMCG

From the Consumers' Perspective:

  • Frequent purchase

  • Low involvement i.e. little or no effort to choose the item

  • Low price

From the Marketers' Perspective:

  • High volumes

  • Low contribution margins

  • Extensive distribution networks

  • High stock turnover

2.

INDUSTRY HISTORY

The Indian FMCG market has been divided for a long time between the Organized sector and the Unorganized sector. Organized Sector is the giant malls with large department stores, Cineplex's, supermarkets, and pharmacy chain, etc. Unorganized Sector comprise of mom and pop retailers and independent retailers, etc.

The fast moving consumer goods(FMCG) industry, which accounts for 2.2 per cent of

India‟s GDP, is expected to attain a size of INR 1500 billion by FY 2012.

2.1 HISTORICAL GROWTH.

The chart below shows in figures the growth rate the FMCG sector has witnessed till now since

2001.

1. FMCG INDUSTRY The term FMCG means Fast Moving Consumer Goods. The term FMCG refers to

MBA PT-III RD SEM (2010-2013)

Page 4

2.2 PROJECTED GROWTH ESTIMATES 3. INDUSTRY PARAMETERS  Design and Manufacturing – Low Capital Intensity –

2.2 PROJECTED GROWTH ESTIMATES

2.2 PROJECTED GROWTH ESTIMATES 3. INDUSTRY PARAMETERS  Design and Manufacturing – Low Capital Intensity –
  • 3. INDUSTRY PARAMETERS

    • Design and Manufacturing

– Low Capital Intensity – Technology
Low Capital Intensity
– Technology

MBA PT-III RD SEM (2010-2013)

Page 5

Third-party Manufacturing

  • Marketing and Distribution

High Initial Launch Cost

Limited Mass Media Options Huge Distribution Network

  • Competition

Significant Presence of Unorganized Sector A highly scattered market and poor transport infrastructure Low brand awareness enables local players to market their spurious look-alike brands. Lower overheads due to limited geography, family management, focused product lines and minimal expenditure on marketing.

  • Entry barriers are high

  • 4. CRITICAL SUCCESS FACTORS OF FMCG INDUSTRY

– Third-party Manufacturing  Marketing and Distribution – High Initial Launch Cost – Limited Mass Media
– Third-party Manufacturing  Marketing and Distribution – High Initial Launch Cost – Limited Mass Media

MBA PT-III RD SEM (2010-2013)

Page 6

4.1 THE CRITICL SUCCESS PYRAMID (CSP) MBA PT-III RD SEM (2010-2013) Page 7
  • 4.1 THE CRITICL SUCCESS PYRAMID (CSP)

4.1 THE CRITICL SUCCESS PYRAMID (CSP) MBA PT-III RD SEM (2010-2013) Page 7
4.1 THE CRITICL SUCCESS PYRAMID (CSP) MBA PT-III RD SEM (2010-2013) Page 7

MBA PT-III RD SEM (2010-2013)

Page 7

  • 5. BEST IN CLASS COMPANIES The following companies are the best in FMCG industry in India.

    • a) ITC Ltd. With a market capitalization of` 137,000 crores.

    • b) Hindustan Unilever Ltd Subsidiary of Unilever Ltd. It has a market capitalization of 61,000 crores.

    • c) Nestle Ltd. Nestle India is a subsidiary of Nestle S.A. of Switzerland. Has a market capitalisation of 35,000 crores.

    • d) Dabur India Ltd Dabur India Ltd is the fourth largest FMCG Company in India with Market Capitalisation of 16,000 crores.

    • e) United Spirits Ltd. - The market capitalisation of the company is 13,000 crores. The company was earlier known as the McDowell & Co.

    • f) Colgate Palmolive (India) Ltd. Has approx. 11,000 crores as the market capitalisation.

    • g) Godrej Consumer Products Ltd. - Has approx 11,000 crores as the market capitalisation.

    • h) TATA Global Beverages Ltd.- Has approx 6,000 crores as its market capitalisation, it is the second largest Tea Company globally.

5. BEST IN CLASS COMPANIES The following companies are the best in FMCG industry in India.

MBA PT-III RD SEM (2010-2013)

Page 8

  • 6. AN ORGANISATION IN THE INDUSTRY

6. AN ORGANISATION IN THE INDUSTRY One of India’s Most Admired Companies ITC Limited which previously
6. AN ORGANISATION IN THE INDUSTRY One of India’s Most Admired Companies ITC Limited which previously

One of India’s Most Admired Companies

ITC Limited which previously stood for „Imperial Tobacco Company one of India‟s foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover US $ 4.75 billion. As such ITC is a group which has various diversified business.

ITC has been rated by BCG amongst top 10 Consumer Goods companies in the world in terms of Total Shareholder Returns (TSR). It is one of the foremost in the private sector in terms of : -

  • Sustained value creation (BT-Stern Stewart survey)

  • Operating profits

  • Cash Profits

  • Ranks No. 4 among Indian listed Private Sector Companies by market cap.

In addition to above, ITC is one of India‟s most valuable and admired companies in FMCG sector

  • 7. BUSINESS OPERATION OF ITC

    • (a) Traditional business:- Traditional business comprises of following sectors:-

Cigarettes Hotels Paperboards Packaging Agri-Business- ITC is the largest exporter.

In addition to the traditional business, ITC has now forayed into the following sectors and is increasingly gaining market share:-

  • (b) Nascent business

Packaging Food & Confectionery, Branded Apparel & products Greeting Cards. Information Technology Cigarettes

6. AN ORGANISATION IN THE INDUSTRY One of India’s Most Admired Companies ITC Limited which previously

MBA PT-III RD SEM (2010-2013)

Page 9

ITC’S CIGARETTES BUSINESS

ITC has Market leadership in cigarette business with powerful brands across segments.

Extensive FMCG distribution network

World-class state-of-technology and products Exciting long term growth potential

ITC’S CIGARETTES BUSINESS  ITC has Market leadership in cigarette business with powerful brands across segments.

BRANDED PACKAGED FOODS

ITC has number of branded packaged foods up its sleeve like Aashirvaad Atta, Sunfeast Biscuits, etc. Further a number of innovative products in the pipeline leveraging the capabilities of the ITC R&D Centre. At present it is a market leader in India with various differentiated & innovative products in branded packaged foods.

ITC’S CIGARETTES BUSINESS  ITC has Market leadership in cigarette business with powerful brands across segments.

LIFESTYLE RETAILING

ITC entered into the lifestyle retailing with Wills Lifestyle brand which is presently rated amongst the top 5 Luxury brands in the country. Upmarket product range available in exclusive Wills Lifestyle stores (56) and multi-branded outlets/ large format retail stores across the country. Further, it has Strong distribution network in place for the mid-market brand „John Players‟

ITC’S CIGARETTES BUSINESS  ITC has Market leadership in cigarette business with powerful brands across segments.

EDUCATION & STATIONERY PRODUCTS BUSINESS

ITC’S CIGARETTES BUSINESS  ITC has Market leadership in cigarette business with powerful brands across segments.

MBA PT-III RD SEM (2010-2013)

Page 10

Education & stationery products business of ITC is mostly commoditized. Offers opportunity for branding. „Classmate‟ brand already the most widely distributed brand in India. Branded Copier Paper „Paperkraft‟ footprint being enhanced.

SAFETY MATCHES

ITC one of the major players with current industry size of Rs. 1250 crores p.a. Product „AIM‟ is India‟s largest selling Safety Matches brand. ITC has successfully acquired WIMCO Ltd. by Russell Credit and has Key brands like Homelites, Ship, Cheetah Fight etc.

INCENSE STICKS (AGARBATTIS)

ITC markets its brands with value added products across each price point. ITC product „Mangaldeep‟ is the second largest national brand in the country. Fragmented supply base due to reservation policy for small scale industry.

PERSONAL CARE PRODUCTS

Current

market size estimated at over Rs. 29000 crores (growing at 12% p.a.). ITC presence

established in Body Wash (Soaps, shower gels) and Hair Care (Shampoos, conditioner) category

with Portfolio approach straddling all consumer segments with 4 umbrella brands:-

 Essenza Di Wills (Prestige) Vivel Di Wills and Vivel (Mid) Fiama Di Wills (Premium) 
Essenza Di Wills (Prestige)
Vivel Di Wills and Vivel (Mid)
Fiama Di Wills (Premium)
Superia (Popular)

OVERALL INSIGHT TO ITC LIMITED

Education & stationery products business of ITC is mostly commoditized. Offers opportunity for branding. „Classmate‟ brand

MBA PT-III RD SEM (2010-2013)

Page 11

SEGMENT ANALYSIS SEGMENT DOMINANCE % CONTRIBUTION REVENUE PBIT Cigarettes 70% share 77.0% 87.7% Paper & Package.

SEGMENT ANALYSIS

SEGMENT

DOMINANCE

% CONTRIBUTION

   

REVENUE

PBIT

Cigarettes

70% share

77.0%

87.7%

Paper & Package.

Packaging board No. 1 in Asia

7.0%

10.7%

Agri business

1 of the largest exporters from India

4.3%

3.7%

Hotels

ITC Group rank No.2

4.4%

5.4%

CAGR DURING FY 2010-11

SEGMENT ANALYSIS SEGMENT DOMINANCE % CONTRIBUTION REVENUE PBIT Cigarettes 70% share 77.0% 87.7% Paper & Package.

MBA PT-III RD SEM (2010-2013)

Page 12

Category

CAGR

Growth Parameters

     

Cigarettes

10.9%

Pricing power

     

Hotels

22.7%

Inward traffic, occupancy

     

Paper

17.2%

Capacity utilization, value added products

     

Agri business

34.3%

E-choupal, choupal sagar

     

FMCG-Other

60.2%

Fast track, decent share

     

ITC has been leveraging its strength through diversification thus creating:-

Creating multiple divers of growth

Unmatched distribution reach,

Superior brand-building capabilities,

Effective supply chain management and acknowledged service skill in hotelier.

  • 8. IT -IMPLEMENTATION TRACK RECORD ITC overall has 11 businesses with all total 200 manufacturing locations and comprising of

20,000 employees. Over the past few /warehouses.

years there has been exponential growth in godowns

One of the challenge

for

ITC has been effective

deployment of

IT to ensure sustained

exponential business growth. This IT challenge has been met through “Structuring and Planning” of IT implementation. The IT deployed by ITC is worth over Rs 300 Crore / year.

8.1 IT HIERARCHY

Category CAGR Growth Parameters Cigarettes 10.9% Pricing power Hotels 22.7% Inward traffic, occupancy Paper 17.2% Capacity
Category CAGR Growth Parameters Cigarettes 10.9% Pricing power Hotels 22.7% Inward traffic, occupancy Paper 17.2% Capacity

MBA PT-III RD SEM (2010-2013)

Page 13

  • (a) GROUP CIO- Overall head of IT dept ITC

  • (b) CMC-

Stands for Corporate Management Committee. It is the apex body of ITC which

reviews :- Annual blueprints all 11 division Tech purchases Risk mitigations

  • (c) IT STEERING COMMITTEE Each of ITC‟s 11 business verticals has an it steering committee that works closely with the vertical to ensure:-

Efficient delivery,

Sustainability New technology is in line with

overall it plan.

  • 8.2 WORKING OF IT HIERARCHY

Part of the structure that keeps ITC's gigantic IT machine moving is that each business unit (BU) creates a multi-function planning taskforce - which includes IT managers - to undertake an annual business planning exercise.

The yearly huddle introduces a comprehensive IT plan and roadmap as part of the division's overall business plan. Though ITC isn't a holding company in a literal sense for its group subsidiaries, it acts as one when it comes to budgetary allocations.

Each if ITC's 11 business also has its own IT steering committee that works closely with the businesses. The committee, with the group CIO, ensures efficient delivery, sustainability, and also that new technology is in line with an overall IT plan.

The yearly blueprints turned out by the 11 divisions are reviewed by a Corporate Management Committee (CMC), the apex body at ITC. Its responsibilities include mitigating the risk of technology purchase.

This pyramid-structure of decision-making is replicated in the IT setup across the group. Each of the eleven business units has a separate IT team and an IT head who reports to the unit head.

CIO is responsible to ensure that the technology is right, the resources allocated are appropriate and the funding is sufficient. CIO, with the help of separate teams, also looks into issues like technology upgrades and evaluation, annual budget planning and central procurement across the group.

The organization also realizes that some projects have a pan organization impact and have to be deployed across all divisions. These large projects are looked into by ITC's CMC. It is headed by ITC's director of finance, who reports to the CMC.

(a) GROUP CIO- Overall head of IT dept ITC (b) CMC- Stands for Corporate Management Committee.

MBA PT-III RD SEM (2010-2013)

Page 14

  • 8.3 CLASSIFICATION OF IT PROPOSALS

TYPE

REMARKS

TRANSFORMATIONAL

 

ENABLEMENT

EACH CATEGORY HAS ACCESS TO DIFFERENT RESOURCES & BUDGETS

ENRICHMENT

Similar to Vital-Essential-Desirable analysis

  • 8.4 DEPARTMENTS OF ITC’S IT DIVISION

DEMAND-SIDE IT TEAM

SHARED SERVICES TEAM

Teams working with specific business units.

Work at the corporate level under the group CIO.

Separating the two ensures that demand-side it doesn't suffer because of backend issues.

Shared services team provides end-to-end it management services, including creation and running of data centers, maintaining the VPN, databases, storage, archival, security management, network management, etc.

  • 8.5 HARDWARE AT ITC

On an average, 44 processors of computing capacity is employed by the business to host applications or enhance the performance of existing applications

The heart of ITC's operations: its datacenter has 650 racks

8.3 CLASSIFICATION OF IT PROPOSALS TYPE REMARKS TRANSFORMATIONAL ENABLEMENT EACH CATEGORY HAS ACCESS TO DIFFERENT RESOURCES
8.3 CLASSIFICATION OF IT PROPOSALS TYPE REMARKS TRANSFORMATIONAL ENABLEMENT EACH CATEGORY HAS ACCESS TO DIFFERENT RESOURCES

MBA PT-III RD SEM (2010-2013)

Page 15

8.6

VIRTUALIZATION

The data centre at ITC had 650 racks and still it was so crowded there wasn't enough space for new provisions. It was also pushing the datacenter's cooling and power capacities to their limits. In order to meet these challenges, one elegant solution adopted by ITC was Virtualization. The technology had the added benefit of creating a more centralized, flexible IT infrastructure. Initially the utilization levels of existing servers were assessed. Those with the least usage were virtualized. The virtualization license and additional storage cost ITC just under Rs 30 lakh. But the project, which went live in January 2008, saved ITC Rs 38.08 lakh in its first year. And it created savings of Rs 12.77 lakh from the second year onwards.

In the immediate, it freed up costly datacenter space and the power and cooling needed to run 44 processors. Just the cost of running those processors (without accounting for cooling expenses) reduced annual power consumption by 72,270 KW.

8.7

ERP AT ITC

ERP at ITC is Best-Of-Breed, Bolt-On System”. Standard ERP For Inventory Management with:-

Oracle e-Business Suite 11.5.9 Sapphire - R&D

Export Management System - Export Documentation

Power Apps - Payroll And Attendance

 
8.6 VIRTUALIZATION The data centre at ITC had 650 racks and still it was so crowded

8.8

SPECIFIC IT INITIATIVES AT DIVISIONAL LEVEL

  • 8.8.1 FIRST MANUFACTURED-FIRST-OUT (FMFO)

Initiative to barcode produce at the warehouse itself using RFID (Radio Frequency Identification) at item level using RFID Tunnel.

8.6 VIRTUALIZATION The data centre at ITC had 650 racks and still it was so crowded

MBA PT-III RD SEM (2010-2013)

Page 16

Enables implementation FMFO strategy, items manufactured first -shipped out first

Tagging output/person/day rose from 300 to 3000

• Enables implementation FMFO strategy , items manufactured first -shipped out first – – Tagging output/person/day
  • 8.8.2 PUSH MIS

An integrated IT system which will gather and push information onto ITC‟s salesmen‟s laptops. For instance, if a salesman is covering 10 outlets of a region, every evening ITC‟s systems will push onto his laptop the sales, distribution and requirements of that region and also the target to be met.

  • 8.8.3 FASTREACT EVOLUTION

At ITC's Rs 4.5 crore Lifestyle Retailing Business Division (LRBD) status of each order is visible to all stakeholders on a common scoreboard to enable prioritization of work.

  • 8.8.4 FREEBORDERS’ PLM

Wills Lifestyle and John Players the flagship brands of ITC LRBD, has implemented Freeborders Product Lifecycle Management (PLM) solution to streamline all apparel product development activities, from concept to delivery.

  • 8.8.5 PROJECT DHANUSH

To track every bale of tobacco leaves from the point of origin to the end product, ITC implemented an ERP system that is updated using handheld terminals from 70 rural locations in Andhra Pradesh and Karnataka.

• Enables implementation FMFO strategy , items manufactured first -shipped out first – – Tagging output/person/day
• Enables implementation FMFO strategy , items manufactured first -shipped out first – – Tagging output/person/day

MBA PT-III RD SEM (2010-2013)

Page 17

  • 8.8.6 E-CHOUPAL: STRATEGIC THRUST

E-Choupal is an ITC initiative to connect the farmer directly to the market place by eliminating the middle-man. Complementary benefit has been empowerment of the farmer. The e-Choupals, information centers containing a computer linked to the Internet, represent an approach to seamlessly connect subsistence farmers with large firms, current agricultural research, and global markets. The following activities are undertaken through e-Choupals:-

  • Procurement: Cost & Quality Optimization

  • Rural Distribution

  • Financial Services

  • Rural Retail

8.8.6 E-CHOUPAL: STRATEGIC THRUST E-Choupal is an ITC initiative to connect the farmer directly to the

MBA PT-III RD SEM (2010-2013)

Page 18

  • 9. FUTURE SCENARIO BUILDING FOR FMCG INDUSTRY

The following are the key areas for FMCG industry to do scenario building in these areas:-

(i) Supply Chain Evolution:- Supply Chain evolution in the consumer goods industry has increasingly become complex because of the various developments in the market place. In markets where retailers are large and powerful, they tend to drive the channels and hence the supply chain network will require the increased use of technology, more effective distribution and better usage of information. With regards to supply chain, some of the key processes can be optimized for cost by off shoring - Sourcing is one prime example, another is the adoption of new technology such as mobility devices, RFID etc.

(ii) Consumer Centric Innovation:- As consumers become more demanding they look for new and innovative products, in attractive packaging, offered to them in more convenient ways to shop at lower prices. The modern retail trade not only broadens consumer choice but also drives industry consolidation. This places enormous pressure on suppliers to maintain margins and retain consumer brand franchise, particularly with the emergence of private label brands in more mature markets. While Innovation is a key driver of consumer goods companies, seldom does one get to see any breakthrough innovation. Typically innovation tends to be incremental enhancements either in the product design or delivery or in the channel formats. Companies need to be constantly aware of this challenge and put mechanisms in place to nurture innovation both within the organization and external to it.

(iii) Improving Operational Execution:- Consumer goods companies require excellence in four areas to sustain their leadership brand marketing, sales, innovation and the supply chain. The industry benchmark of performance has increased dramatically over the last decade in each area. The winners of the future will be the ones that not only adopt these best practices and raise the bar more quickly but also those that bring in new practices offer borrowed from other industries.

9. FUTURE SCENARIO BUILDING FOR FMCG INDUSTRY The following are the key areas for FMCG industry
9. FUTURE SCENARIO BUILDING FOR FMCG INDUSTRY The following are the key areas for FMCG industry

MBA PT-III RD SEM (2010-2013)

Page 19

  • 10. STRATEGIC USE OF IT

IT landscape of the Consumer Goods Industry that has been described in figure below reveal the key strategy for IT application in the FMCG industry. The red boxes indicate the processes for which firms have to focus in creating specific offerings as they are the ones that yield the maximum ROI to Consumer Goods Companies in the current business scenarios.

10. STRATEGIC USE OF IT IT landscape of the Consumer Goods Industry that has been described

The other applications that will strategies the use of IT in the industry are as below:-

  • (i) Product Lifecycle Management (PLM)

Increased process velocity that ensures that products and promotions reach the end customers faster is one of the key capabilities that the Consumer goods manufacturers need to equip themselves with. This is achieved by PLM solutions. PLM solutions enable strategic aligns firms with the leading Product Lifecycle management vendors and thus making use of variety of services used by Consumer Goods Companies ranging from PLM consulting , Product Evaluation to Implementation and outsourcing.

(ii)

Sourcing and Procurement

IT platform based outsourcing to leverage its alliances with the market leaders in Procurement Products. This will involve offering full service outsourcing program that provides end to end IS,

10. STRATEGIC USE OF IT IT landscape of the Consumer Goods Industry that has been described

MBA PT-III RD SEM (2010-2013)

Page 20

ADM and BPO services to enable global outsourcing for CPG companies. The following are the application areas that the sourcing program would encompass:-

Buying and Marketing Replenishment and Logistics Finance

E Commerce Enterprise Collaboration

Technology enablers

(iii) Supply Chain Management

Software solutions that cater to various challenges faced by Consumer Goods manufacturers in the current environment like:-

Supply Chain Diagnostics and a Transformation framework aiming at redesigning

process and systems across supply chain towards achieving break-through performance Collaborative Planning, Forecasting and Replenishment (CPFR) solutions towards

improving supply chain planning process in collaboration with the major retailers Logistics Management towards better supply chain execution with focus on transportation

Warehouse Management towards better supply chain execution with focus on DC operations

ADM and BPO services to enable global outsourcing for CPG companies. The following are the application

(iv) Future IT Technologies like application development with SOA and Web 2.0

Unlike many heralded technology advances, service-oriented architecture (SOA) is fulfilling its promise, often delivering significant ROI within relatively short timeframes. The rewards are not just financial but also SOA allows organizations to cross over traditional line-of-business (LOB) barriers to deliver integrated, customer-facing services. SOA will continue to be widely adopted as the architectural style for new application development investments. SOA enables firms to take disparate capabilities within their applications and transform them into services that can be leveraged for reuse in more customer-centric ways.

ADM and BPO services to enable global outsourcing for CPG companies. The following are the application

MBA PT-III RD SEM (2010-2013)

Page 21

(v) The increasing dependence on global resources and distributed partners will drive a need to adopt
 

(v)

The increasing dependence on global resources and distributed partners will drive a need

to adopt standard approaches that are common across industries and geographies. Internally

developed methods and specification approaches will no longer be effective. Entity-relationship modeling, Unified Modeling Language (UML) and the Unified Process lifecycle are some examples.

11.

IT VISION & IT STRATEGY OF ITC

IT Vision of ITC is to enhance role of IT in all its business which will ultimately address customer pain points through innovative solutions thus optimizing cost and increasing efficiency in all businesses leading to maximum returns.

To meet this end and be a market leader in all the diverse business segments, ITC has adopted following key IT strategies in respective fields:-

 

(i)

Data centre

(ii)

Virtualization using cloud computing

(iii)

ERP solutions

(iv)

RFID technology for implementation of First Manufacture First Out strategy in the Lifestyle retail sector

(v)

Push MIS- An integrated IT system which will gather and push information onto ITC‟s salesmen‟s laptops.

(v) The increasing dependence on global resources and distributed partners will drive a need to adopt

MBA PT-III RD SEM (2010-2013)

Page 22

(vi) PLM- Product Lifecycle management solutions for business like Lifestyle retail sector

(vii) Project Dhanush Implementation of ERP system that is updated using handheld terminals from 70 rural locations in Andhra Pradesh and Karnataka for tracking every bale of tobacco leaves in the ITC India Leaf Tobacco Development (ILTD) division.

(viii)

E-Choupal - an intelligent blend of applications like CRM and supply chain management for farmers in village and as an effective supply sourcing technique for ITC retail.

12. SUMMARY

Retailers driving down prices and subsequent costs, place enormous pressure on suppliers to maintain profit margins. This drives the need for continuous internal improvements, including the following:

Supply chains must be optimized to produce the required levels of customer service at the lowest possible Cost Assets must be rationalized to work at maximum efficiency Demand driven manufacturing must be used to ensure that the optimum response can be made for both fast and slow moving new products and supported by world-class Sales and Operations Planning processes and systems. Execution capabilities must be flawless and cater for the variations that will occur.

This requires FMCG companies to be both agile enough to change rapidly in addressing these new concerns and flexible enough to ensure that they can respond quickly without waste. This lowers costs and reduces total cycle time for all processes, applying particularly to S&OP, planning, new product introduction, and execution processes. In all this IT has been an enabler and been an impetus in taking the FMCG company through the exponential growth and will continue to do so in future. Companies which will leverage the IT to the maximum undoubtedly will be the leaders in the Industry.

(vi) PLM- Product Lifecycle management solutions for business like Lifestyle retail sector (vii) Project Dhanush –

MBA PT-III RD SEM (2010-2013)

Page 23