Assignment<br />Each student will be required to analyze successful application of IT in a business organization from the ...
Mis assignment
Mis assignment
Mis assignment
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Mis assignment

  1. 1. Assignment<br />Each student will be required to analyze successful application of IT in a business organization from the journal and/or internet sites, the submission will be a case built up from this readings about how an organization has leveraged IT for competitive advantage. Not more than 6 pages hand written. 14.09.2007/06.30 PM<br />UNDER THE GUIDANCE OF PROFESSOR SHRI M.L. SINGHLA<br />BY <br /> KINSHOOK CHATURVEDI<br />ROLL NO N-35<br />FMS PART TIME MBA 2009-12<br />SECOND YEAR<br />III RD SEMESTER<br />Case Study is related to implementation of SAP system in Delhi Metro Rail Corporation Limited<br />Requirement of customized IT system<br />DMRC is building a Mass Rapid Transit System (MRTS) in Delhi, the objective being to provide a safe, reliable and integrated transport network that will meet the rising demand for inter-city transport in the capital. An IT system was required to smoothen the flow of information, support planning tools, provide vital reports for decision making, reduce administration time, better utilize the organization’s resources, and let DMRC concentrate on its core competence. In DMRC it is required to inter link human resources, maintenance, stores, accounts, project execution and property development activities and fully computerized to avoid manual delays, heavy Documentation and duplication of inter-department activities. DMRC is require to establish a databank of information within themselves, which will be Available to all departments round the clock and thus will help in Improving efficiency and increasing productivity of the corporation.<br />Requirement for the system<br />In view of above, DMRC require a IT system having at least following characteristics<br />Faster Speed<br />Integrated<br />Knowledge Sharing<br />Flexibility for changes (Business and IT)<br />Can be implemented as an individual module.<br />Identification of system to be implemented<br />The process began with the selection of SAP software after benchmarking it against various ERP packages available in the market to see which of them met DMRC’s requirements; soon after, Siemens was chosen to implement and manage the solution. The best ERP Software, which is implemented in DMRC, is SAP R/3, which is provided by world’s largest enterprise software company SAP AG. SAP R/3 is acronym for Systems Applications and Products in data processing. R/3 means Runtime System, Three Tier Architecture. The SAP system deployed by DMRC supports multiple functions such as general ledger, accounts receivable & payable, fixed asset management, project planning, company structure management, funds control, procurement management, real estate management, materials & warehouse management, maintenance and human resource management.<br />Process of implementation<br />The systems’ core modules—Financial, Costing, Materials Management, Human Resources, Maintenance, project Systems and Real Estate Management—were tightly integrated and implemented in record time. The SAP solution went live in nine months by November 2002, as planned. It involved setting up the software to meet DMRC’s requirements and a complete change management process to handle the change in traditional patterns of thought and behavior at DMRC.<br />Result after implementation<br />After going live, the entire project is being handled through SAP Project Systems. All the material and labor consumed is accounted for online, and project systems are capable of creating automatic indents for procurement of material and services against existing contracts. DMRC can now have a detailed view of activities and schedules, and it gets advance warning of any slippage on time lines, material or labor so that corrective action can be taken. It also gets an accurate costing of all project elements, and measures budgeted costs against actual. Finally, DMRC is now able to predict the exact time lines for upcoming phases, and rapidly execute project activities while saving time. <br />DMRC’s IT benefits as competitive advantage<br />DMRC is a construction company. Construction is a business where success is measured by the ability to complete projects on time and within budget. The management of the construction projects benchmarked and constantly reviewed against a single bottom-line cost and schedule.<br />Therefore after implementation of SAP, the management of DMRC make effective decision making due to<br />Easier access to information<br />Greater accuracy and timeliness of information<br />Comprehensive information available across functional areas and locations<br />Improved communication and networking across the organization<br />Improved networking and knowledge sharing within the organization<br />Better utilization of system resources<br />Increase in productivity of people<br />In addition to above DMRC have other benefits, tangible and non tangible both after implementaion of SAP<br />Tangible benefits<br />Reduction of Paper Work.<br />Provides greater and effective control on ACCOUNTS.<br />Availability of timely information.<br />Greater accuracy of information with detailed content, better presentation.<br />Improved cost control<br />Faster response and follow ups to customers<br />Better monitoring and quicker resolution of queries<br />Enables quick response to change in business operations and market consumption<br />Improves supply demand linkage with remote locations and branches in different countries<br />Some Intangible Benefits: -<br />Improved customer satisfaction<br />Improved vendor performance<br />Increased flexibility<br />Reduced Quality Cost<br />Improved Resource Utility<br />Improved information accuracy<br />