Six IT Decisions your I.T.

People shouldnt take-

Examples
Submitted by-
Monika Reddy A028
Kriti Verma A055
Exide- The company
Indias largest manufacturer of lead acid storage batteries and
biggest power storage solutions provider
Applications cover telecom, railways, travel, defense, power, and even
renewable energy.
Major segments include
Automotive (Flagship Brands EXIDE, SF, INDEX and SONIC )
Industrial (Flagship Brands Exide, INDEX, SF, CEIL and CHLORIDE)
Submarine (high-end submarine batteries -Type 1, 2 & 3)
Financial Performance Over Last Decade

Top Line grown by - 21%
Operating Profit (EBITDA) grown by 18%
PBT grown by 25%
Net profit grown by 26%
Market Capitalization grown by 45%

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TurnOver - Growth
Net Sale Rs in
Crores
1.
How much to spend on I.T depends on he strategic role I.T. has, in the firm & this need to be clarified
beforehand by the non-I.T managers

Q1. How much should we spend on I.T?
Conducted initial planning sessions to confirm
overall project scope
Reviewed and evaluated statewide
administrative systems in use
Reviewed documentation of the States
hardware/systems infrastructure
Conducted interviews with key administrative
systems stakeholders at the enterprise-level
With assistance from State staff, quantified the
major areas of savings and efficiencies to be
derived from business process improvements
Calculated and documented the estimated
costs of implementing and maintaining a
statewide ERP system
Prepared this written report documenting the
results of study

Review of
business plan
Developing
IT strategy
Team
formation
ERP package
selection
AS IS , TO
BE study
Cost-benefit
analysis
Roll out
Pilot
implementat
ion
Post
implementat
ion review
1.
This depends not only on the short term ROI forecasted, but also, on the long term impact of IT
implementation on the whole business

Q2. Which business processes should receive
our I.T. dollars ?
Complex costs calculation
Cash flow management was
very poor
Huge administrative overheads
Not able to implement the
flexible pricing based on
market demand/ fluctuation

The regional sales patterns
were not readily available
Unorganized finished goods
distribution ( Supply Chain )
Not able to establish closer
relationship among sales,
planning, procurement,
production and distribution

Poor in planning in the enterprise wide
resources :
multi-location manufacturing units
multi-location procurement sources
Cycle time was very high in order to cash
cycle
Not able to analyze demand fluctuation
Gap in Information and Communication driven
Technology was needed
Not readily available the real-time, real-world, real
information
Integrated MIS for faster decision making
Unable to explore new market / usage
Warranty tracking was very difficult
Decentralized process ownership


Q3. Which I.T. capabilities need to be company wide?
A trade off between standardization &
flexibility needs to be made
1.
A trade off between functionality & speed of delivery must be made

Q4. How good do our I.T. services really need
to be?
Implementation Partners :
Software ( SAP R3 ) PwC (Price WaterHouse Coopers )
Hard Ware vendor : HP
Network : Airtel
Methodology: ASAP (tailor-made tool for an effective, fast, and well-organized
SAP R/3 implementation. The complete implementation process is well
documented. )

Q5. What security & privacy risks will we accept?
A trade off between data security & convenience of process execution is to be made
Functional committee is
responsible for deciding the
security levels at respective
units
Failure usually has to do with change management in business, rather than the I.T.
implementation failure, hence accountability must be there
Q6. Whom do we blame if the I.T. initiative
fails?
Role of Steering
Committee
Role of Functional
Committee
Role of Project Team
Provide continuous
management
commitment and
support
Provide functional
area commitment
and support

Taking Final approval
of AS-IS process

Resolve barriers to
progress
Resolve issues
Identify process gap

BPCL

Company overview
BPCL is one of the leading companies in Indian in the petroleum sector
It mainly operates in two segments
downstream petroleum, which is engaged in refining and marketing of petroleum
products, and exploration
production of hydrocarbons.
It has always enjoyed the image of a progressive organization
Scenario
In the oil & petroleum industry where the stakes are high and competition fierce, every
company has to find a way to stay a cut above the rest.
Companies may choose to differentiate themselves through their operations, their
infrastructure, their HR policies, technology used etc
Bharat Petroleum Corporation Limited (BPCL) decided that for it to continue as one of
the market leaders in India it would have to revamp its existing IT infrastructure.
BPCL chose an enterprise-wide integration through Enterprise Resource Planning (ERP)
to reach this objective.

Q1. How much should we spend on I.T?
Customer Service and Customer Satisfaction
(CUSECS) team
Project Entrans an enterprise wide transformation to have a cutting edge over the
competitors
To meet the challenges of the deregulated market by having standard, flexible and
integrated IT solutions
CUSECS (Customer Service and customer satisfaction) team formed to have a customer
centric approach across the 6 SBUs with no IT developers as a part of the team
Q2. Which business should receive our IT dollars?
HR and
quality
management
Sales and
distribution
Materials
management
Personnel
administration
The CUSECS team identified 4 processes
as critical to achieve their mission
Also a change management initiative was
undertaken to ensure smooth flow and
implementation of the process
Q3. Which IT capabilities need to be company
wide?
Q4. How good the IT services really need to be?
Departments
BPCL had many
departments
which worked as
individual silos
SBUs
Formed 6 SBUs
retail, refinery,
lubricants, LPG,
aviation,
industrial and
commercial
Centralization of the
organization to enable cost
savings and an enterprise wide
application
The new organizational
structure helped the company
to transform itself into a
learning organization
Focus on quick implementation to have the first mover advantage
Outsourced the process of implementation
Detailed analysis of vendors before choosing, emphasizing on relevant experience
SAP chosen as the vendor for implementation, the product chosen was SAP R/3 which
was tailored to suit the company requirements
Q5. What security and privacy risks will we
accept?
Q6. Whom do we blame if an IT initiative fails ?
Cusecs Team
Complete transparency was ensured through the supply chain through IT processes

Get everyone on
board
Make sure someone
removes the
roadblocks
Check the rear view
mirror
Quantitative Benefits