information about hero honda company ; swot analysis

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2. 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
Brijmohan Lal Munjal received the “Ernst & Young
Entrepreneur of the Year” award for India, and in 2005 he was
presented with the “Padma Bhushan,” 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.

3. 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

4. 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 Hero Honda network spans 750 nodes across the country.
• The company has three Cisco routers. The company also uses a
mix of switches from three vendors: Cisco, IBM and 3Com.

5. Enterprice application
 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.

6. ERP IMPLEMENTATION
 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 Mukesh Malhotra, deputy
general manager, Hero Honda Motors.
 Because of this they also became ready for future SCM and
CRM implementations

7. SAP 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 consumer 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

8.  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.

9. 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.

10. egr 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.

11. 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.

12. 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

13. 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.
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