Information technology has played a huge role in ITC's portfolio of businesses. This ppt by a student (AJ) of PGDM 2012-14 batch of Era Business School, throws light on this aspect.

1. IT Perspective : ITC
India Tobacco Company
WHAT IS THERE IN A NAME?
……….Well, first two letters have nothing to do with IT

2. AIM
To briefly introduce ITC and its range of
products and services with special focus on
impact of IT on its transformation.
A ppt by Ajay K Raina

3. SCOPE OF THE PRESENTATION
• Phase 1 - Introduction and Brief History.
• Phase 2 – IT Initiatives and e-Choupal.
• Phase 3 – Role of IT, Brief Intro to Processes and
miscellaneous aspects.
• Interactive Session and Conclusion.
Era Business School, New Delhi
Col Ajay K Raina, SM

4. PHASE 1 – INTRODUCTION
AND
BRIEF HISTORY

5. THE MISSION

6. TIMELINE : EVOLUTION
• 1901 - Sir William Henry Wills; Imperial
Tobacco Company after merger of eight
British tobacco companies, in UK.
• 1910 – FDI; Imperial Tobacco Company of
India Limited.
• 1970 - India Tobacco Company Limited.
• 1974 - I.T.C. Limited.
• 2001- ITC Limited.
Era Business School, New Delhi
Col Ajay K Raina, SM

7. THE JOURNEY
• Humble beginnings with a leased office on
Radha Bazar Lane, Kolkata.
• 16th birthday (1926)- a plot of land situated at
37, Chowringhee, Kolkata, for the sum of Rs
3,10,000.
• 'Virginia House‘- two years later…..now, one of
Kolkata's most venerated landmarks.
Era Business School, New Delhi
Col Ajay K Raina, SM

8. TIMELINE : TRANSFORMATION
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1910 – Started operations as a tobacco company.
1925 - Packaging & Printing Business.
1954 – Went Public.
1972 – Hotel business (Welcom Hotels/ Welcomgroup).
1979- Paper board arm added.
1985 – Entered Nepal.
1990 – Stepped into Agro industries.
2000 – Twins - Fashion wear and Infotech.
2001 – Started packaged Spices business.
2002- Manufacture of Safety Matches + Stationery.
2003 – Production of Incense Sticks.
2005 – Entered Personal care market.
2010- Premium brand Era Business School, New Delhi
of Cigars started.
Col Ajay K Raina, SM

9. PRODUCT PROFILE

10. NATIONAL & GLOBAL PRESENCE
• Presence in all inhabited continents of the world.
• Seventeen major countries outside India.
• Pan India.
Era Business School, New Delhi
Col Ajay K Raina, SM

11. WHY ARE WE LOOKING AT THIS
JOURNEY?
• Figures tell us something:Market Capitalisation
US $ 35 Billion
Revenue
US$ 8 Billion
Employees
29,000
Livelihoods dependent
05 Million
Share holders
4,13,000
Share revenue growth (last 15 years)
25.6% pa
Era Business School, New Delhi
Col Ajay K Raina, SM

12. REVENUE GROWTH 2007-12
8
7.8
7.2
7
R
e
v
e
n
u
e
in
$ Bn
6.6
6.0
6
5.9
5
4
3.9
2007
2008
2009
2010
2011
2012
Year
Era Business School, New Delhi
Col Ajay K Raina, SM

13. ROLL OF HONOUR
• ITC is …..
– one of the eight Indian companies to figure in Forbes AList for 2004;
– Features in 400 of “The World's Best Big Companies".
– Among Asia's 'Fab 50‘;
– One of Forbes’ “World's Most Reputable” Companies.
• Recipient of more than 30 national and
international awards in all possible fields of
business.
Era Business School, New Delhi
Col Ajay K Raina, SM

14. Mr Y C DEVESHWAR…..where buck stops!
Year
Award
1986
Hotelier of the Year
1994
Marketing Man of the Year
1996
Distinguished Alumni Award from IIT, Delhi.
2001
Manager Entrepreneur + Retail Visionary of the Year
2005
Teacher's Lifetime Achievement Award
2006
Business Person of the Year from UK Trade & Investment
2007
SAM/SPG Sustainability Leadership Award, Zurich.
2010
The U.S.-India Business Council (USIBC) Award for Global
Leadership
2011
The Padma Bhushan, one of the highest civilian awards in the
country
2012
Business Leader of the Year Award

15. PHASE 2 - IT INITIATIVES AND
e-CHOUPAL

16. ITC INFOTECH
• ITC's wholly owned Information Technology
subsidiary.
• ITC Infotech India Ltd, provides IT services and
solutions to leading global customers.
• An obvious implication of this capability is
effect on all other businesses of ITC.
• ITC Infotech
Era Business School, New Delhi
Col Ajay K Raina, SM

17. DIFFERENT STRATEGIES
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An integrated IT technological reconstruction encompassing WAN, in-house
information security management and realignment of the enterprise computing.
The IT infrastructure of ITC has expanded 500 times over last 15years.
Each business division has set up its own hardware across the operating
locations, implemented business-specific ERPs and used unique MIS to ensure
support to users.
Customer facing web applications to streamline operations, so much so that
shipment from warehouses simply failed if the ERP system was down.
Duplication of resources across ITC is now being replaced by a single architecture
and management plan comprising a virtual private network, two data centres at
Bengaluru and Kolkata and in-house security and centralized management.
The SAP solution first implemented in the ITC FMCG business is now being
extended through the company and to the field force through sales force
automation tools and handheld devices.
Similarly Oracle Applications are used in agri-business & homegrown web based
applications for managing supply chain and customer relationship process.
Partnership with Nokia for development and implementation of mobile platforms
Era Business School, New Delhi
Col Ajay K Raina, SM
for e-choupal.

18. ITC e-CHOUPAL

19. e- CHOUPAL
• ITC's Agri-Business is one of India's largest exporters of
agricultural products.
• Created in 2000 in MP, today e-choupal is synonymous with
ITC.
• e-choupal consists of internet enabled computer stations
based in villages.
• These PCs/ mobile platforms provide information on
weather, best practices, crop details, market prices, and
important local news to farmers = price transparency over
internet.
• This transformational strategy, now a case study at Harvard
Business School, is expected to progressively create for ITC
a huge rural distribution infrastructure, significantly
Era Business School, New Delhi
Col Ajay K Raina, SM
enhancing the Company's marketing reach.

20. VERSIONS OF ITC e-CHOUPAL
1.0
2.0
3.0
Farmers ITC
Farmers ITC
Farmers ITC
Focus on farmers as Micro
producers in one way
supply chain.
Stream lined Supply to
direct access and
immediate payment to
farmers.
Expansion of two way
supply chain: focus on
farmers as producers and
consumers.
Set up of Choupal Sagar
Micro Producer
Micro Producer
Micro Consumer
Era Business School, New Delhi
Expansion to Co-related
supply chains: focus on
farmers as entrepreneurs
and innovators
Focus on rural engagement
& deeper personalization of
ITC’s goods and services
Micro Entrepreneurs
Micro Producer
Micro Consumers
Col Ajay K Raina, SM

21. TECHNOLOGIES USED IN e-CHOUPAL
• Initially, e-choupal was launched as a simple .NET software
for farmers.
• But with increase in data, it became hard for software to
manage all information; hence a complete software was
redesigned by ITC InfoTech and Nokia along with hardware.
• In 2008, mobile application for e-choupal was launched by
ITC InfoTech and Nokia after lots of experimentations and
users’ trials.
• The necessary hardware-cum-software prototypes are
being developed by Nokia and ITC Infotech. Though Nokia
Life Tools for agriculture are already in the marketplace, the
two-way mobile application and its full operationalisation is
Era
Col Ajay K Raina, SM
under implementation. Business School, New Delhi

22. BENEFITS TO FARMERS
• e-Choupal unshackles the potential of Indian farmer
who has been trapped in a vicious cycle of low risk
taking ability > low investment > low productivity >
weak market orientation > low value addition > low
margin > low risk taking ability.
• Availability of Up to Date Information.
• It gives farmers more control over their choices, a
higher profit margin on their crops, and access to
information that improves their productivity.
Era Business School, New Delhi
Col Ajay K Raina, SM

23. Benefits to ITC
• ITC benefits from net procurement costs that are about 2.5% lower.
• it has more direct control over the quality of what it buys.
• The system also provides direct access to the farmer and to information
about conditions on the ground, improving planning and building
relationships that increase its security of supply.
• ITC gains additional benefits from using this network as a distribution
channel for its products (and those of its partners) and a source of
innovation for new products.
• Farmers are becoming a source of product innovation for ITC.
• By providing a more transparent process and empowering local people as
key nodes in the system, ITC increases trust and fairness.
Era Business School, New Delhi
Col Ajay K Raina, SM

24. PHASE 3 –
ROLE OF IT, BRIEF INTRO TO THE
PROCESSES
AND MISCELLANEOUS ASPECTS

25. IT PROCESSES….
• Service Oriented Architecture (SOA): development of
POCs to demonstrate SOA
• RFID consulting and implementation services
• Operations risk management: managing operational
risk using a business-IT dependency framework
• Incubation of new technologies by a structured
approach to achieve knowledge leadership
• Embedded software development in mobile
technologies using TI OMAP platform and E-LINUX
• ntegrate CRM systems into their IT and business
contexts,
Era Business School, New Delhi
Col Ajay K Raina, SM

26. …..IT PROCESSES
• Data Warehousing and Business Intelligence (DWBI)
• ITC Infotech’s Accelerated ASAP methodology) and
superior tools / techniques (ERP Knowledge Manager)
• Mainframe CoE currently focuses on IBM Mainframe
Technology.
• Product Life cycle Management Value Platform (RVP)
methodologyUse of Best PracticesTailored PLM
Processes based on CMM Level 5Support Services
based on proven ITIL Framework
Era Business School, New Delhi
Col Ajay K Raina, SM

27. BENEFITS
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Reduced Lead Time
Improved availability of resources.
Better and Integrated use of resources.
Improved Supply Chain Management process.
Cost Reduction.
Maximizing Returns
Forecasting of cash flow.
Visibility of inventory across locations thereby
reducing the load on the system.
• Reduction in potential stock-out scenarios.
Era Business School, New Delhi
Col Ajay K Raina, SM

28. E Waste Policy
• Maximize utilization of all IT assets to their full
productive life.
• Internal re-use followed by use outside ITC
through donation to bonafide philanthropic
institutions.
• Only such IT assets which are non-operational
and can not be reused for any other alternate
purpose are considered as IT E-waste for
disposal.
Era Business School, New Delhi
Col Ajay K Raina, SM

29. QUESTIONS PLEASE!

30. THANKS!