MIS Project on India Bulls

IILM Institute for Higher Education

PROJECT ON

MANAGEMENT INFORMATION

SYSTEM

Submitted By:

ANUJ WADHWA

SANCHIT MAHAJAN

JOBIN MATHEW

SWAYAMSIDDHA JENA

MADHURI PRAJAPATI

PGP I (2007-09)

SECTION – G

GROUP- 12

IILM Institute for Higher Education

School of Business

PROJECT ON

MANAGEMENT INFORMATION

SYSTEM ON INDIABULLS

: Submitted T

Prof. ANKUR ROHAT

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MANAGEMENT INFORMATION

INDIABULLS

To:

Prof. ANKUR ROHATGI

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INDEX

1. Acknowledgement

2. Objective

3. About Indiabulls

4. MIS in Indiabulls

5. Avaya

6. Aspect Dialer

7. Talisma

8. SAP – System Application and Programming

9. A Methodological Approach to Implementation of SAP

10. Uses of SAP in Various Business

Activities

11. Usage of MIS at Different Levels

12. E-Business Activities

13. Observations and Recommendations

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Acknowledgement

Special thanks to Professor Ankur Rohatgi for providing us the knowledge and

guidance for the completion of the project. Also we would like to thank Mr.

Sandeep Kumar, System Administrator, Indiabulls Securities Limited

([email protected]) for assisting us in gathering the necessary

information.

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Objective of the Project To know: 1. The types of Information System being used in Indiabulls. 2. The different levels in the organization at which it is deployed. 3. The role of the Information System playing in their competitive strategy 4. The e-business initiatives or activities of the organization. 5. Any other significant observation. 6. Our recommendation in terms of improving the system

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About Indiabulls

Indiabulls is India’s leading Financial Services and Real Estate Company with a Pan India presence. They offer ease, convenience and reliability in all the products from securities to consumer finance, mortgage to real estate development.

Indiabulls is India’s leading Financial Services and Real Estate company. It has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004 having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the

company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the

company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with

Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has

demonstrated deep understanding and commitment to Indian Real Estate market by winning

competitive bids for landmark properties in Mumbai and Delhi.”

Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD).

KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive

bidding process for Rs 450 crore to develop residential apartments.

Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd.

Indiabulls ventured into commodity brokerage business. Indiabulls has received an “in principle

approval” from Government of India for development of multi product SEZ in the state of

Maharashtra

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Management Information System In INDIABULLS

Indiabulls runs its Internet trading platform - Oracle 9i - on Linux. This system, which handles

40-45 per cent of Indiabulls' revenue transactions - nearly 10,000 customers are online at any

point of time and transactions are in the range of Rs 1000 crore (Rs 10 billion) - runs on Linux.

The online share trading infrastructure at Indiabulls generates close to 150000 database queries

per minute.

Indiabulls.com - has developed a system that will allow its customers to access a single unified

account from all online and offline mediums. "The system, which will be operational from

January 1, will finally allow us to fulfil our anytime, anywhere promise to our customers," said Mr

Gagan Banga, vice president, marketing, Indiabulls.com. The technology, which has been

developed at a total cost of $1 million, will enable all users to access the same back-end Risk

Management System (RMS), and hence the same account, regardless of the fact that whether

the customer is doing the transaction from a PC connected to the Internet, a PSTN, a WAP

phones, or by walking into the offline office.

Till now, customers were allotted separate accounts for each of these mediums, since there was

no integrated RMS at the back. However, with the new system in place, users can access the

same back-end from various front-end terminals. "There is zero human intervention. You can

buy and sell scrips and complete the entire transactions by just punching buttons. However, in

case someone is not comfortable doing so, we have backed it up with a call centre," said Mr

Banga. Indiabulls has developed this system in-house and it has been made more secure by

using encryption technologies developed by Senora Technologies, he added. The system,

which entails embedding a software program in the sim card of the WAP phones at the user's

end, also requires a software to be deployed by the service provider.

For transacting through PSTN telephone lines, Indiabulls got together with TCS to develop a

proprietary tele-broking product. However, the company is yet to get the required clearances

from SEBI to deploy this technology. Mr Banga expects that the company will get regulatory

clearances in the next couple of weeks.

Meanwhile, the company, which already has a tie-up with National Stock Exchange (NSE) has

also entered into a similar tie up with Bombay Stock Exchange (BSE). Indiabulls also plans to

start derivatives trading and automated lending and borrowing mechanism (ALBM) shortly.

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Avaya

Avaya GlobalConnect is India’s leading provider of intelligent communications solutions,

systems and services focused on meeting the needs of organizations large to small. The

company offers a comprehensive suite of Solutions for Contact centre, Business Process

Outsourcing and end-to-end Converged communications. By designing, building and managing

some of the world’s most advanced communications solutions, Avaya is helping its customers

achieve sustained advantage through superior business results. Avaya GlobalConnect is

dedicated to helping businesses enhance and extend the capabilities of their people and

processes to reduce costs, increase productivity and grow revenues.

Indiabulls uses this application for inbound calling system where client or internal employees

can call on for any support or query. It’s a centralize helpdesk for Indiabulls where they keeps

the records of each client query and work for the betterment of services. It provides services not

only to customer but to any person who want to have any details regarding Indiabulls products.

It helps them maintaining the standard and helping clients at critical moments of trading and

services.

Aspect Dialer

Aspect Software delivers all-in-one, IT-ready solutions that reduce complexity, lower costs and

increase business agility by consolidating all contact center functionality into standards-based

software that is easy to deploy, manage and propagate throughout the enterprise – giving both

business and IT optimal choice and control.

Indiabulls using this application for the purpose of revenue generation and calling up client for

the various services and their feedback. To Indiabulls each client is important and to inform

about the new products and features. It helps clients in getting the details at the right time, to

keep them updated they are using dialer for out bound dialer. it has a big part to play in

generating revenue and at the same time providing necessary information to required person.

Talisma

Talisma is a leading provider of Customer relationship management software solutions that

enable businesses to deliver a truly exceptional online customer experience.

Indiabulls backbone where all the queries are getting tracked and getting answered with in

reasonable time without delay. It’s a centralize mailing desk for most of the Indiabulls internal

operation as well. It helps Indiabulls in avoiding unnecessary mail chain by allowing one of the

customer relation ship management. Its helps those in providing best possible MIS reports

based on process and client queries. Its help them in sustaining the better standard and tracking

of each queries.

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SAP – System Application and Programming

As the world's leading provider of business software*, SAP delivers products and services that

help accelerate business innovation for the customers. It believe that doing so will unleash

growth and create significant new value – for the customers, SAP, and ultimately, entire

industries and the economy at large.

Major application which helps Indiabulls in all the major process and company requirements.

Major resources like Human resource, finance department, procurement and various other

sectors of company using this application. A centralize application processing goes through

SAP.

A Methodological Approach to Implementation of SAP

Investing in a new business solution can bring major benefits to an organisation. The success

or failure of a new Solution depends on how well it is implemented. A recent survey of software

implementations showed that over 30% of projects perceived to have failed did so because of a

lack of effective project planning. On the other hand less than 10% of projects perceived to have

failed did so because of technology driven causes.

AcceleratedSAP is the SAP Methodology for the Implementation (Initial, Upgrade, Extension)

of SAP Solutions and supports cost effective and speedy Implementation of the SAP Solutions.

It has the following constituent parts:

- AcceleratedSAP (Methodology) Content The structured methodology content (processes, procedures, accelerators checklists, links to Standard SAP Documentation, etc. necessary for the Implementation (Initial, upgrade, Extension) of SAP Solutions. - AcceleratedSAP (Methodology) Toolset The tools necessary for the Implementation (Initial, Upgrade, Extension, Template, etc. ) of SAP Solutions. - AcceleratedSAP (Methodology) Roadmaps The guidance and navigation necessary for the Implementation (Initial, upgrade, Extension) of SAP Solutions. AcceleratedSAP (Methodology) Expertise

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SAP knows SAP best and based on its vast experience provides this knowledge in concentrated form to its customers & partners through AcceleratedSAP.

Uses of SAP in Various Business Activities

� Human Resource Management

Implementation of information system in Human Resource department of the company helps in

defining payroll life cycle, which includes controlling and locking of the records and providing

specific information of a particular employee, when required.

Other areas of usage of IS in HR purposes are Exit Process Policy, Human Capital

Management, Hiring Policies, Succession Planning Policy, Performance Evaluation Policy and

other policies related to absenteeism and tardiness.

� Financial Management

� Highlights:

First Nine months FY 08 compared to First Nine months FY 07 • Consolidated Total Revenues up 94% to Rs. 1,599.5 crore in first 9 months FY 08

from Rs. 825.6 crore in first 9 months of FY 07 • Consolidated Profit After Tax up 108% to Rs. 589.6 crore in first 9 months FY 08

from Rs. 283.5 crore in first 9 months of FY 07 • Basic EPS up 60% to Rs. 23.67 from Rs. 14.72 in first 9 months of FY 07

Q3 FY 08 compared to Q3 FY 07 (YoY)

• Consolidated Total Revenues up 98% to Rs. 661.3 crore in Q3 of FY 08 from Rs. 334.5 crore in Q3 of FY 07

• Consolidated Profit After Tax up 120% to Rs. 246.4 crore in Q3 of FY 08 from Rs. 111.8 crore in Q3 of FY 07

• Basic EPS up 77% to Rs. 9.69 from Rs. 5.47 in Q3 of FY 07

Q3 FY 08 compared to Q2 FY 08(QoQ) • Consolidated Total Revenues up 33% to Rs. 661.3 crore in Q3 FY 08 from Rs.

495.3 crore in Q2 FY 08 • Consolidated Profits After Tax up 42% to Rs. 246.4 crore in Q3 FY 08 from Rs.

173.2 crore in Q2 FY 08 • Basic EPS up 17.8% to Rs.9.69 from Rs. 8.22 in Q2 of FY 07

The detailed Financial report is generated and is compared with the help of software.

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Usage of MIS at Different Levels

Avavya - It is used at all the levels of management according to their requirements and

accessibility. It uses this application for inbound calling system where client or internal

employees can call on for any support or query

Aspect Dialer- It is used by middle and operational level for revenue generation and calling up.

Talisma - used by middle level it bridges link between organization and customers. It is used to

take customers feedback and queries.

SAP – It is used by various departments of top and middle management such as finance,

human resource and marketing.

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E-Business Activities

Indiabulls (http://www.indiabulls.com) is giving full time access to its customers regarding buying and selling of shares in real time through secured services on internet verified by Verisign. It also provides expert information on the Sensex and specific shares listed on BSE and NSE. The company uses Sun Microsystems Java Technologies to preview the index, showing bars and analyzing of trend of a selected share. Indiabulls has developed a site http://power.indiabulls.com in order to provide advance trading tools for the customers. They can choose from a broad spectrum of sophisticated trading tools using a fast desktop Trading Software.

- Features of Power IndiabullsTM : Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting

This provides the tools, resources and support that a customers need to execute their trading

strategy, plus their choice of a wide range of investment products and services.

The information to how to use the given tools is given on its home page in a shockwave movie.

Financial services portal Indiabulls.com has entered into a co-branding alliance with UTI Bank.

Similar such alliances are in the offing with horizontal portals as part of marketing and brand

awareness exercise. The portal is also in the process of spreading its marketing wings by

opening up offices in several cities in the country and abroad.

As per the agreement, Indiabulls clients will open their savings and demat accounts with the UTI

Bank. Both Indiabulls and UTI Bank will co-develop and jointly promote technology platform for

easy online multi-location access. With several features facilitating online trading, clients can

access these proprietary services, One Account and AnyWhere Access, through multiple means

including mobile phones, ATM machines, telephone, fax and Websites of Indiabulls and UTI.

The company wanted to handle highly volatile user traffic and accommodate rapid growth &

seamlessly migrate from legacy UNIX-RISC environment. The company also wanted to improve

network performance, while simultaneously reducing costs. It now gets 10 times more

performance by migrating from HP Tru64 to Enterprise Linux. Indiabulls runs its Internet trading

platform - Oracle 9i - on Linux. This system, which handles 40-45 per cent of Indiabulls' revenue

transactions - nearly 10,000 customers are online at any point of time and transactions are in

the range of Rs 1000 crore (Rs 10 billion) - runs on Linux. The online share trading

infrastructure at Indiabulls generates close to 150000 database queries per minute.

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Observations and Recommendations

Indiabulls have a good order management system and bandwidth. That helps when there is

congestion in the market i.e. lot of orders going into the exchange. When that happens some of

the terminals of the brokers freeze up and clients could lose a lot of money if they are day

trading, because of the delay in order execution. That doesn’t happen with The Indiabulls’s

clients.

The company has a java enabled webpage or if somebody chose to do so he can pay Rs.800

and get a desktop java client i.e. something that sits on the desktop and when one open it he

can get a software that looks like an excel sheet (a rough approximation). Java programs are

not the best for a desktop trading solution. The reason behind this is java requires a lot of

resources.

For the proper and effectively working of the software on the client’s desktop, it is recommended

that his computer should have a minimum of 1GB of RAM with a high speed processor and a

7200 rpm hard disk (instead of 5400 rpm). Its not easy managing the windows inside the

application while trading. The software can run multiple instances which is useful if a person is

trading his account along with that of his friends simultaneously.

The people behind the phone, i.e. the customer care employees or the relationship managers

(termed as experts) for every client gives a lot of buy this buy that kinda stuff. It does have a

dark side too. They get paid for the brokerage and a part of the brokerage goes to the

relationship managers, hence they don’t care whether the customer makes correct or wrong

decisions.