2. INTRODUCTION
Tata Steel is the most well known and dominant player
in the steel industry in India.
Strong B2B relationship with suppliers and business
customers.
Internet penetration in India is at 10.2%(As of Dec
2011).
India will have the 3rd largest internet savvy population
in the world by 2014 – Estimated to be 700 million
users.
3. PROBLEM DEFINITION
Tata Steel shares a strong relationship with its
suppliers and its business customers.
End users of Tata steel products have low awareness
regarding the brand.
Decisions to purchase steel for building new houses as
well as for end consumer use can be strongly
influenced by end users.
Decision making patterns of consumers expected to
change due to high internet proliferation.
4. PROPOSAL
Leverage the use of social media such as Facebook,
Twitter, Youtube to establish a wider customer
connect.
Improve Tata Steel’s visibility on the Internet by
increasing integration with search engines like Google.
Applying the concept of the “Zero Moment of Truth”.
Channelize customer intent to buy/influence buying
decisions for steel.
Provide an application for end users to understand
where Tata Steel products fit in their lives.
5. Leveraging Social Media
Social Media as a platform for communicating value to
end consumers in language that they understand.
Running awareness campaigns on the presence of Tata
Steel in products used by end consumers.
Integrating Social Media with the company website.
37%(2011) of the Indian Internet population use social
media
Indian Internet population to hit 300 million by 2014
6. Internet Search and ZMOT
Reaching out to end consumers will require search
engine optimization for the company’s and related
websites.
Applying ZMOT for Tata Steel products – Ensuring the
visibility of Tata Steel when customers first search for
allied products.
Focus on mobility.
Increasing internet usage via smart-phones will
require mobility applications and websites
7. Sales and Sourcing Optimization(SSO) App.
The purpose of the Application is to:
i. Facilitate automatic tracking of Sales Activities and
real time communication with customers.
ii. Facilitate automatic tracking of Procurement and real
time communication with suppliers.
iii. Efficient data management and integration with ERP.
iv. Facilitate mobile enablement for Sales representatives
& Suppliers to improve Sales efficiency
8. SSO Mobility App Requirements
The on field Sales Representatives will use this application
to plan and record their sales activities which include:
i. Planning Sales Calls
ii. Planning Meetings with potential customers
iii. Recording the results of Sales Calls and Meetings
directly in the ERP system
iv. Initiating new customer registration and recording it
directly in the ERP system.
v. The system will capture the relevant data for all potential
customers regardless of the hunting stage thereby reducing
dependence on individual sales representatives.
9. SSO Mobility App Requirements
The Suppliers, Purchase Representatives and
Customers (after registration) will use this application:
i. Place orders with the Sales Department (Customers)
ii. Place orders for materials with suppliers
iii. Receive notifications from Tata Steel ( Customers
and Suppliers).
iv. The Sales Department can track Sales
Representative Activities and Utilization.
10. No Paper App:-
Orders to Suppliers , from Customers are processed
through ERP & communicated through SSO App.
Each Order would generate a specific BarCode ,Similar
to FMCG’s .
All material movement across suppliers & Customers
will happen along with this Code .
Customer:- Order Rcd Erp Generated BarCode
Delivery to customer with BarCode (No invoices)
Customer Acknowledges receipt on verification.
Supplier :- Order via SSO & Barcoded PO Supplier
sends Barcoded material without Invoice .Material is
inwarded with barcode . Stores verifies material rcd
against order & books receipt.
11. High Level Architecture
Sales and Procurement Divisions
SSO SSO
Mobility & ERP Mobility &
No Paper System No Paper
App App
Purchase Sales Potential
Supplier
Rep. Rep. Customer
12. Benefits:
Reduction in the processing time for new orders, new
customer registration.
Real time data sharing with suppliers and customers.
Reduction in transaction cost
Reduction in travel expenses and improvement in
managing Sales Representatives utilization.
Efficient target hunting by recording details of failed
sales pitches and reasons for the failure.
13. Cost Estimates
Item Resources Approximate Cost(INR) Category(INR)
Hardware NA Assumed use of existing computers Non-Recurring
Hardware NA Bar Code Scanners at Receiving & Non-Recurring
Dispatch Sections
Software NA Depends on technology Non-Recurring
Development 4 17,60,000* Non-Recurring
Maintenance 1 2,20,000* Recurring
and Support
*Assuming that 1 resource costs $25 per hour at 55 INR for 8 hours a day, 20 days a month. Development duration is approximated as 2 months