Business Information System

CIA-1.2

Submitted By:
SALONI JAIN
1820343

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INTRODUCTION
The case revolves around the topic improvement in decision support with the BI Tools in the
modern era, with reference to the CEAT case study. The case study explores the past and
present of the operations of CEAT, we explore various IT and business challenges that were
faced by the company which led to the implementation of BI tools. We are also told about the
various IT strategies that were planned to overcome these challenges. The case also throws
light on the role of the partners as a value creation in the implementation of the project. Later,
in the case we study the various benefits derived from the implementation of the project. In
the end, the case discusses the importance of sharing information and transparency in the
information delivering channels.

SUMMARY
The case is about CEAT and its exploration of new terrain in Decision Support with BI tools.
CEAT is a leading manufacturer of automobile tyres in India with large range of tyres in and
around the globe. The company currently uses SAP and customized CRM Application. The
BI application used by the company is a comprehensive one which addresses analysis of data
and reporting needs of MIS of CEAT. Company’s user, managers, key personnel’s and top
management were unable to get the correct information at the right name causing friction in
the operations of the company. Due to this, a web based BI tool was looked upon as a
solution to cater to the needs discussed above. After the implementation of the BI tool the
company functioning became much more productive making the corporation more efficient.
The BI tool helped the company to extract fast and accurate data with total access from
difficult to reach SAP data to untangle complex business issues, react quickly to the dynamic
market trends, improve financial scope, drive improvements, gather time insights into market
and customer trends. Due to the technology users at CEAT have now access to companywide
ERP and CRM data quickly and more reliable, thereby, giving the users the freedom to gain
correct insights into information and respond proactively to rapid changing environment. In
the end we are made realize that Information is the most important resource for decision
makers and managers of a firm, difficulty in extracting it can break a firms operations and the
firm itself as a whole. A Successful corporation comprises of managing information across
various multiple areas of the business.

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SWOT ANALYSIS

Strengths
 CEAT is India’s second biggest tyre company with an annual turnover of more than
Rs.3500 Cr and more than 5000 employees.
 Superior quality products at competitive prices.
 Company has built a strong brand image over the decades and exports to over 130
countries.
 They have extensive distribution network with 3500 dealers, 37 regional offices and more
than 136 C&F agents throughout the country.
 It manufactures the largest range of tyres in the industry, which incorporate both cross-ply
and radio technology.
 High degree of customer satisfaction.

Weakness
 Less presence in the international markets compared to industry leaders despite exporting
to many countries.
 Stiff competition from Indian and international brands means limited marker share.
 Delivery staff required to be trained

Opportunities
 Increase in demand of tyres especially heavy vehicles.
 Opportunities to expand in oversea markets.
 Continuously changing demand of consumers towards safety and comfort.

Threats
 Volatility in raw material prices.
 Stiff competition both from national and international companies.
 Sales is depended on the number of cars sold.
 High cost of raw materials like synthetic rubber, carbon black, chemicals etc.

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QUESTIONS & ANSWERS

Answer 1.

Decision support systems are interactive, computer based information systems that use
decision models and specialized databases to assist the decision making process of
managerial end user.
The challenges CEAT faced before deciding on a decision support system are:
 Business users, key personnel, managers, and top management at CEAT wanted
information visibility on the web.

 In the financial sector it is not possible to implement one system after the other
because of the nature of their operation which dictates the downtime that the
organization can.

 The management at CEAT is at user resistance to system. User resistances to a system

usually occur as a result of fear of the new way of doing thing. In order for a system
to steer clear of some technical issues that may hinder its success, a parallel people
project should run along the technical project.

 Territory managers were not able to see the entire report in a single sheet.

 Before going to a dealer, they were doing a lot of manual homework. They were not
getting correct data during discussions with the dealer.

 Adhering to continue report requests from business users was becoming a challenge
as generation of SAP reports required lot of effort and time.

 There was also a risk of lack of user involvement due to improper implementation or
if the measures are not taken up efficiently.

Answer 2.
Benefits of using BI tools for CEAT are-
 1KEY is a highly integrated BI with faster implementation and more efficient.

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 It helped gain fast and accurate insight with access from hard-to-reach SAP data to solve
complex business problems.
 It also helped in analysing the changing market trends, improve financial exposure, drive
change, gain real-time insight into customer and market trends.
 This system provides pre-configured reports, with powerful ad hoc capabilities and
interactive visual analytics.
 Unlike before CEAT could now include a wide range of data elements and sources.
 It also helps CEAT extract SAP data from across the domain to gain a consolidated view
of information from a wide variety of sources across the enterprises.
BI now also allows easy-to-use interactive graphics, gauges, and filters, business users can
play out scenarios, explore potential outcomes and gain a deeper insight that can help reach
decisions faster, without the need of a technology expert or to know to construct complex
queries. This all points certifies that decision making at CEAT has improved to a primary
level.

Answer 3.
The kind of business analytics required by the CEAT management for the decision support
using this BI tool are as following:
 Enterprise application SAP and a customized CRM application.
 The databases Oracle and MS SQL where the data warehouse is based on SQL Server
2008.
 Connecting SAP and non-SAP CRM data from across multiple areas of business like
production, sales, finance and distribution.
 Having Single Point of Truth for Business.
 Make better decisions with timely reports and increased collaboration.
 Real-time analysis of information on integrated systems.
 Having Business scorecards per Subject and KPI.

Answer 4.

CONCLUSION
The case study of CEAT highlights the importance of Management Information System or
BI tools in organizing or decision making. Nowadays, there is abundant information present

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but the difficulty is in extracting relevant information from the abundance of data and
information. BI gives a single source for critical information throughout the organization,
which helps in catering more energy in the right direction i.e. making critical decisions.