Automating Auto
For the auto and auto ancillary industry, 2005-06 saw the next wave of IT
investments into areas like CRM, IT standardization across the partners and
third parties' systems along with integration. The initial wave involved
getting the end-to-end basic transaction systems in place, which was essentially
the ERP. Following this was opening up of the organization's boundaries to
include partners like dealers and suppliers. This year the agenda on hand was
integrating the dealer, supplier and enterprise systems into one seamless
system.
With the basic supply chain systems in place for most
companies, the next 'big' roll out area for the auto sector was Customer
Relationship Management. Companies realized the need to know immediately from
the field what was the customer feedback on quality, design, etc.
Differentiation from competition happened in terms of how they serviced the
customers.
With the outsourcing trend gaining prominence, auto
ancillaries were becoming more prominent entries in the whole automobile value
chain. As part of assembling was moving out to the ancillaries they were no more
single part suppliers. This was driving a wave of IT adoption that went beyond
basic automation to the adoption of sophisticated design systems as well.
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The
Big Spenders
Spend in Rs crore
|
|
ONGC
|
380
|
|
Reliance Industries
|
350
|
|
BHEL
|
20
|
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Shipping Corporation of
India
|
50
|
|
GAIL
|
45
|
|
Maruti Udyog
|
40
|
|
BPCL
|
35
|
|
Bajaj Auto
|
30
|
|
Philips Electric
|
27
|
|
Bharat Earth Movers
|
25
|
|
Indian Oil
|
20
|
|
Gujarat State
Fertilizers & Chemicals
|
17
|
|
Thermax India
|
15
|
|
Madras Cement
|
10
|
|
Blue Star
|
10
|
|
Pidilite
|
9
|
|
JK Corp
|
8
|
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Ballarpur Industries
|
7
|
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DQ Estimates
Note: The list is not comprehensive as DQ was unable to obtain
IT spends of organizations like Tata Steel, Tata Motors, SAIL among others |
The Tech Behind Oil & Gas
The increasing IT adoption in the process industry was primarily due to the
activities of the oil & gas sector. Like most other manufacturing concerns,
the oil & gas companies had their processes all marked out and managed
smoothly with their ERP implementations. While ONGC specialized in exploration,
GAIL fell in the middle category of purifiers, while companies like Indian Oil,
followed by Hindustan Petroleum and Bharat Petroleum were the leading refining
and distribution companies. Most of these companies had SAP implementation
covering all business areas across their entire geography, accompanied by the
implementation of the Business Information Warehouse, CRM and Supplier
Relationship management systems.
Vendors like SAP, Oracle, HP and Microsoft provided
customized applications for managing organization-wide processes, while
providing vertical specific applications for oilfield connectivity, refinery
plant floor operations, project intelligence for large capital infrastructure
projects and plant floor security. The other important deployments included
oil/gas management systems and Geographic Information Systems.
Oil and gas companies acquired in 2005-06 the ability to
monitor rigs remotely, collaborate cross-company and around the world, and
diagnose potential refinery equipment problems even before they occurred.
Supervisory Control and Data Acquisition systems were being used, which were
specialized computer-based automated control systems that monitored and
controlled the transport of gas through pipelines, and provided the two basic
functions of real time monitoring. SCADA and Exploration and Planning systems
were unique to the vertical and not available indigenously. During the year,
they were being sourced from international companies like Paradigm, WesternGeco
and Foxboro.
Rajneesh De
rajneeshd@cybermedia.co.in Page(s) 1 2
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