Presentation On MIS of Hero Honda Submitted to :- Submitted by:- Mr. Hitesh Sharma Manju Verma M.B.A. III sem. (Finance)
Introduction The company, established in 1985 as a joint venture between Hero Group of India and Honda of Japan, holds a 50% market share in India. In the next six years Hero Honda’s sales volume grew by 400%. It’s no wonder that Hero Honda has won accolades in the New Delhi business press. In fact, in 2001 Hero Honda’s chairman BrijmohanLalMunjalreceived the “Ernst & Young Entrepreneur of the Year” award for India, and in 2005 he was presented with the “PadmaBhushan,” a prestigious award from the Indian government. Hero Honda now supplied motorcycles through more than 500 dealers and 700 service points, institutions, and overseas customers. The challenge for Hero Honda: cut time and waste out of its supply chain and add more flexibility in meeting the fast-changing dynamics of the modern market in India. Hero Honda claims to be the world’s largest two wheeler company in its advertising. To reach the heights that it has, Hero Honda has successfully leveraged the IT advantage.
Pre SAP Scenario Till 1998 Hero Honda depended on legacy systems, which had a high failure rate. According to S R Balasubramanian, HHML had legacy systems working on different platforms, which were developed in-house and tailor-made to their method of working. Since the legacy systems took care of data processing, only some operational reports got generated by the system. Real MIS resided on Excel sheets along with different kinds of analysis. Information, therefore, was fragmented and the authenticity was questionable. There was duplication and information inconsistency as happens with most legacy applications. Motivation for change At that point of time the management perception about IT was also changing and they decided IT would be part and parcel of Hero Honda.
IT Infrastructure The IT infrastructure of the company is connected over three major Local Area Networks (LANs). These connect the corporate office in New Delhi with two manufacturing plants (Gurgaon and Dharuhera), and other zonal and marketing offices. 21 locations are connected through its Wide Area Network (WAN) set-up. The company has installed the PAMA VSATs from Comsat Max as a backup facility. The Hero Honda network spans 750 nodes across the country. Hero Honda uses 10/100 Mbps Ethernet switched technology for data transmission and is connected with both optic fibre and Cat 5 cables. Optic fibre is used for the backbone, which will also solve the future bandwidth requirements of the company. The company has three Cisco routers. The company also uses a mix of switches from three vendors: Cisco, IBM and 3Com.
Enterprise Applications As the management knew that the implementation of ERP would take some time, they wanted to use that time to introduce an IT culture in the company. The company to introduce a new greetings system on the lines of Bluemountain.com. They opened up a car4.809 cmd’s library system and asked the users to go to the card library and select a card and send it across.
ERP Implementations The next move was to implement ERP in order to integrate various functions and control its operations. The company went live with SAP R3 on February 1, 2001. It uses modules like production, materials, finance, marketing, assets, quality sales and distribution. The ERP implementation presented a high level of data integration. “ERP has helped the company immensely. Today nobody asks any other department for information. One can log in and see reports online,” says MukeshMalhotra, deputy general manager, Hero Honda Motors. Because of this they also became ready for future SCM and CRM implementations.
SAP’s Role HHML evaluated BAaN and Oracle. The overwhelming presence of SAP in the automotive sector was one of the important reasons for selection. IMPLEMENTATION PARTNERS Siemens Information Systems Ltd (SISL) were the implementation partners. They imparted initial training to the users and core team members. RECORD-BREAKING IMPLEMENTATION TIME Hero Honda also profited from services delivered remotely by SAP consultants in Singapore and software developers in Walldorf, Germany.
Supplier And Customer Relationship Management Processing Orders manually. Hero Honda had already been using the mySAP™ ERP solution for its core applications but until January of 2004, the company continued to enter its customer orders manually . For example, they might have ordered 100 units but the supplier delivered 110. Automating Suppliers Transaction. In February 2004, Hero Honda began a pilot test, bringing in mySAP Supplier Relationship Management (mySAP SRM) as well as mySAP Customer Relationship Management (mySAP CRM), both solutions in the mySAP Business Suite family of business solutions. for example, to confirm that they can handle a certain variation and to confirm that they’ll meet the delivery schedule.
SAP® Consulting It took three months to complete the rollout. Helping Hero Honda speed up the process – and helping implement some of the newest features in mySAP SRM – was SAP® Consulting. End-to-End Process Integration Hero Honda also implemented a customer portal, as a feature of mySAP CRM. With the two portals now in place, the company benefits from end-to-end process integration. for instance, their customers might start asking for a new color or a different model.
eHR Implementation The past one year has seen IT playing a key role in the Personnel/ People Development/ HR departments of companies, which are trying to make the best use of their systems for storing, organising or disseminating information to their employees. Hero Honda has opted for a SAP HR module. S K Balasubramaniam, vice president-information systems, Hero Honda, informs that the company is in the process of starting an ESS system which will enable employees to assess all information about their salary, tax, leave loan, etc.
Information and IT Security Management it is important, especially when it comes to a manufacturing company like Hero Honda, which is extremely dependent on its computer systems and networks for its operations. A disruption in IT infrastructure could spell disruption in business operations Security set-up so far The security approach has been evolutionary, in line with these growing requirements. Connecting the entire organisation during 1999, the company put its mailing system into place. This, however also led to the import of viruses into the system, thereby warranting the need for a complete anti-virus solution. The company chose McAfee for its comprehensive features and good installed base. The company first deployed the Total Virus Defence (TVD) system, which was later upgraded to the Active Virus Defence (AVD) system McAfee releases any new anti-virus DAT files, all three AVD servers get synchronised with McAfee server and download the DAT file (incremented) immediately, which are then distributed to all the servers and desktops.
Core Crisis The company receives an average of 26,000 e-mail messages per day, which translates to almost 1 GB of storage space. Of these at least 70 percent were spam. The ISP was able to filter out about 50 percent of this. Still, almost 9,000 messages hit our internal mail server everyday. They tried out a few standalone, software-based spam filters with little success. Need for Firewall The company’s IT security architecture divides the network into zones, based on the function of the infrastructure contained therein. The zones created are: DMZ zone Third-party zone Application servers zone Critical servers zone Security management zone Network and system management zone LAN & WAN zone
Unauthorized Internet access
The changed scenario
Information security policy
The RoI Factor
Benefits to HHML GREATER RESPONSIVENESS, FEWER ERRORS AMBITIOUS PLANS FOR THE FUTURE Coming Next: Improved Collaboration, Analytics
Number of servers – Over 35 servers (All IBM) Proxy server – For providing Internet access to internal users. Web server – For providing access to dealers and vendors. Wide Area Network Connectivity for marketing offices with plants and head offices – VPN connectivity between 20 locations through 64 Kbps leased line with ISDN as a back-up. Internet connectivity through leased line from Comsat Max Thank you