Tata

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Deki Phuntsho

INFO 245

Professor Neil Foshay

November 28, 2005

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Purpose - Compare Tata Steel and Microsoft’s ERP implementations

Brief business overviews of the two organizations

For both organization• Rationales for going ERP• Approach to implementation

How successful and Why?

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Tata Steel was established in 19071907 in Jamshedpur in eastern IndiaIndia

Belongs to the Tata Group,Tata Group, headquartered in Mumbai

Manufactures in six countries in the Asia Pacific region Operates in 4646 locations all over India

Products• construction materials

March 2004 - 42,511 employees

Income from operations 2004-2005 - US$ 960 million

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Started as a partnership in 1975 and was incorporated in 19811981

Headquartered in Redmond, WashingtonWashington

Technological innovation is its core business

Develops, manufactures, licenses, sells, and supports a wide range of software productsOne of its most popular product is the

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Markets books and invests huge amounts of money in research and development

Caters to a worldwide customer base• Offices in more than 90 countries!90 countries!

Fiscal 2005 - Total revenue is US$ 9,189 millionUS$ 9,189 million

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Technology Rationales• Disparate legacy systems – replication of the manual system• Obsolete• Exchanging and retrieving information was almost impossible• Information obtained was unreliable• Consistent data loss

Competitive Rationale• Become the leader in the competitive steel industry

Strategic Rationale• Respond quickly to volatile needs of customers

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Technology Rationales• Legacy system consisted of a portfolio of disparate applications

Extremely expensive Difficult to support Lost some important financial capabilities Losing vendor support

• Y2K!• Inability to support future growth

Business Process Rationales• Untimely financial information• Loose purchasing policy• Improve payment speed to vendors• Reduce time to record an asset on the books• Every subsidiary maintained individual artifacts - problematic

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ERP Solution – SAP’s R/3

BIG BANG approach in 8 months!!• Implement all modules in all 46 locations across India at the same time

Change business process to match the software

ERP Solution – SAP’s R/3

Phased approach in 9 months!!• Implement all financial modules except treasury, tax, and audit

Change business process to match the software

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Technology Competitive Strategic

Big Bang

Technology Business

process

Phased

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Success!!Success!! Success!! Success!!

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Time boxing

A lot of thought processing and detailed planning

User involvement in the system development process

Hiring of outside consultants• Speeds up implementation• Trains employees on the package

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