ERP
endeavours
A
look at how Hero Honda Motors implemented a company-wide ERP system
to streamline and integrate its processes across its entire supply chain
Coming
into existence on January 19, 1984, Hero Honda Motors Limited (HHML)
gave India a revolution on two-wheels. However, this growth of the company
has come only through continuous improvement and modification of its
systems.
Till 2001, HHML had an information and data processing system (MIS)
working on different platforms, which were developed in-house and tailor-made
to their method of working. But t he actual MIS resided on Excel sheets
along with different kinds of analysis. The authenticity of such fragmented
information was questioable. Over a period of time, the systems underwent
changes and represented a patchwork of several additions and modifications.
The system was loosely integrated across functional areas, with considerable
duplication and information. It was therefore important to migrate from
this platform to something more stable and futuristic.
The management’s vision was to align IT with business.
It wanted to use IT as a strategic business tool rather than for a limited
purpose of data processing. An information systems plan was drawn up,
which specified that the organisation would go for common systems across
the organisation. The emphasis would be on improving business processes,
to adopt best practices and to cover the entire supply chain. Tired
of in-house developed systems, they wanted a standard solution and in
particular, an ERP. Their idea was to partner with a technology vendor
capable of taking them forward as the business expectations increase.
IMPLEMENTATION AND BENEFITS
HHML decided to enlist the services of SAP India for the purpose. It
imparted one-day awareness training sessions to its 135 managers and
key users explaining the project and roles of core team members and
users. There were hiccups in between because of staff turnover at Hero
Honda’s end because of which the project had to be extended by
a month. However, they kept various activities on schedule. The end
users were involved at various stages and hence they adapted to the
new systems well. The first few days saw several problems, but every
succeeding day saw lesser problems and the operations got ...
.........CONTD
