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When ERP was first introduced in India, the auto industry, perhaps, was one
of the forerunners in adopting it.
Initially, when the ERP system was first adopted, the objectives were pretty
straight forward and substantialintegrating information silos, automating
manual process, improving accuracy, cutting cycle time, and, above all, reducing
cost and duplication of data.
In the current scenario, however, ERP has evolved from being a resource
management tool to a strategic platform supporting every aspect of a companys
operation and has become a prerequisite for doing business.
The top areas where IT enablement gives significant benefits over and above
ERP include supply chain management for managing large and complex supply chains
and inventory; dealer management systems; customer relationship management for
capturing data on customer details, preferences; product lifecycle management
which helps improve the complete product development cycle from a product idea
to mass production; and finally business intelligence.
Best Practices
IT will be a key enabler for the Indian auto component firms. An increase in
IT adoption will provide the necessary productivity benefits only when IT
investments are made in business processes which contribute to a firms
competitiveness. It is, thus, important to ensure that best practices are
followed during IT project implementation for effective IT adoption. Using IT as
an enabler will gain automatic ownership from business heads. It is business
that pulls technology rather than technology driving business.
Application of TQM tools and methodology for IT project implementation has
enhanced the robustness of the process. The cross-functional team (CFT) approach
will ensure process ownership and cover a significant portion of change
management. Ensuring adequate resources in terms of capital, technology, and
skill, along with top management commitment, will mitigate most of the probable
risks associated with the project. Moreover, effective control mechanism
throughout the project at all levels will ensure object accomplishment at cost
and time frame; for instance: in TVS Motors, PDCA (plan, do, check, and act) is
followed.
Most IT projects will involve business process re-engineering rather than
mere digitization of an existing process. To ensure success, it is recommended
to practice the new changed process before an IT project goes live.
IT projects also involve process inbuilt commercial decisions. Apart from
functional stakeholders involvement, both internal and external, auditors will
add value, especially in the areas of corporate governance and risk mitigation.
It is not just adequate if the IT project is implemented for given objective on
time and cost. The scalable, flexible solution should be capable of adapting to
future possible changes in law, technology, and business. Also, for sustaining
the project over a period of time, appropriate skills need to be developed and
retained within the organization.
It is generally misunderstood that going live on an IT project is the
conclusion of the project. Successful go-live is mass training stage, and
adoption of the project is the stage of users taking ownership on the project.
The institutionalization is the stage where the intended benefits of the project
are set for realization. Once the pay-back commences and the stage is set for
continuous improvement, one can declare that the project is successful.
When it comes to IT initiatives, companies have to keep in mind that it is
not the scale that is of consequence; many a time simple, small, and discrete
IT initiatives are more successful than a single, large complex IT project.
TG Dhandapani
The author is Group CIO of TVS Motors
maildqindia@cybermedia.co.in
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