BUSINESS CASE

1. Seminar (2730001)
Semerstr-3
Presented by
MIHIR SOLANKI
(140110746005)
SEMINAR (ERP) - MIS- 140110746005 1
G.H.Patel college of
Engineering & Technology
Mechanical Engineering
Department
Enterprise Resource Planning
Seminar-06

2. SEMINAR (ERP) - MIS- 140110746005 2
OUT LINE
1) ERP MARKET PLACES
2) ERP MARKET DYNAMICS
3) FACTS, FIGURES & TRADES COMPARISION BETWEEN INDIA &
GLOBE
4) ERP CUSTOMER WANTS ??? SURVEY RESULTS
5) SAP
6) ORACLE
7) CASE STUDY AT TISCO
8) CASE STUDY AT HPCL

3. ERP Marketplaces & Market Dynamics
 ERP market is very competitive and one of the fastest growing(TECHNOLOGICAL
ADVANCEMENT)
 A research made by AMR consulting & Research group states ERP market expected to
grow at 10% growth rate for 5 years from 2009.
 For large scale industries Market is captured by SAP, ORACLE CORP.,JD EDWARDS
 For Medium scale industries huge potential for “battleground "with industry specific
software
MARKET SHARE:
SAP: 43%
ORACLE : 23%
SAG GROUP : 5%
MICROSOFT: 4 %
SSA GLOBAL : 3%
SEMINAR (ERP) - MIS- 140110746005
3

4. ERP MARKET DYNAMICS
SEMINAR (ERP) - MIS- 140110746005 4
ERP MARKET SHARE 2006
ERP MARKET SHARE 2014
Source: Forbes Magazine,2014

5. SEMINAR (ERP) - MIS- 140110746005
FACTS ,FIGURES & TRENDS
GLOBAL
 25 $ US Billion Business
 Assumed Growth rate of 48 % For 5 year
period in 2009
 In 2004 business was 6.1 $ US Billion and
in 2009 16.50 $ US Billion
5
INDIA
 1550 INR Crore (341 $ US Million
business)
 Assumed Growth Rate of 15 % For 5
year period in 2009
 In 2004 business was 83 $ US Million
and in 2009 it was 198 $ US Million
Source : AMR Research &
Forrester Research

6. SEMINAR (ERP) - MIS- 140110746005 6

7. SEMINAR (ERP) - MIS- 140110746005 7
SAP
HISTORY : 5 Former Employees of IBM CORP. Started journey of SAP with a vision to deliver
a standard software package for REAL TIME BUSINESS ANALYSIS
SAP : Syestem Applications & Products in Data Processing (SAP)
HEADQUATER : MOUNCHENGLAGBACH, GERMANY
 Spread over 107 Countries
 No. 1 company for Business software Packages
 Total staff : 36600
 It is a listed company in many of countries under the tag of “SAP”
FINANCIAL SERVICES
PUBLIC SERVICES
SERVICE INDUSTRIES
MANUFACTURING INDUSTRIES

8. SEMINAR (ERP) - MIS- 140110746005 8
SAP
PRODUCTS
MANUFACTURING
INDUSTRIES
0 SAP for BANKING
0 SAP for INSURANCE
0 SAP for DEFENCE & SECURITY
0 SAP for HEALTH CARE
0 SAP for HIGHER EDUCATION & RESEARCH
0 SAP for PUBLIC SECTORS
0 SAP for LOGISTICS & SERVICE PROVIDERS
0 SAP for MEDIA
0 SAP for POSTAL SERVICE
0 SAP for RETAILS
0 SAP for RAILWAYS
0 SAP for TELECOMMUNICATION
0 SAP for UTILITIES
0 SAP for WHOLESELLER
0 SAP for AEROSPACE
0 SAP for AUTOMOTIVE
0 SAP for CHEMICALS
0 SAP for CONSUMER PRODUCTS
0 SAP for ENGG. CONSTRUCTION
0 SAP for HIGH-TECH
0 SAP for INDUSTRIAL MACHINERY
0 SAP for MINING
0 SAP for OIL & GASES
0 SAP for LIFE SCIENCE
SERVICE
INDUSTRIES
PUBLIC SERVIES
FINANCIAL
SERVICES
Source: www.sap.com

9. SEMINAR (ERP) - MIS- 140110746005 9
ORACLE CORPORATION
ORCLE CORPORATION was established in 1977
 HEADQUATER : CALIFORNIA
 EMPLOYEES: 55000
 REVENE : 14380 US $ MILLION
 COUNTRY SPAN : 145
 No.2 Business organization in field of software packages
PACKAGES OF ORACLE
JD EDWARDS
INDUSTRY SPECIFIC
APPLICATION FOR
MANUFACTURING,
DISTRIBUTION,
SERVICE
PEOPLE SOFT
WEB BASED SERVICE
INTEGRSATION WITH
MULTIPLE VENDORS

10. SEMINAR (ERP) - MIS- 140110746005 10
SAP AT TATA STEEL (TISCO)
1) Profile:
TATA IRON & STEEL COMPANY LIMITED (TISCO) was founded in 1907 & it is Asia's first and
India's largest privet sector steel company
2) Problem/Situation: (What they wanted to achieve ???)
1. To take competitive advantage in terms of learning, innovation & refinement of business
operations
2. Change style of conducting business :”production driven” to “ customer driven”
3. Existing system was manual
4. Reliability of information was not accurate
5. Hard to Exchange & Retrieve information from system
6. Information against certain item was found “missing”
3) How they implement :
 TISCO got lot of credit for implementing ERP because many organization given up due to
failure associated with it EVEN AT IMPLEMENTATION stages.
 They called it : A BIG BANG PROJECT

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SAP AT TATA STEEL (TISCO)
 The path was set to acieve using SAP Package
 All branches, which had huge amount of numbers, transactions and complexities were
identified as a “HUB”
 All other smaller branches along with the big branches were called “SPOKE”
 They interlink and connect all HUBS and SPOKES to make a one integrated system with
single flow of information.
4) HURDLES:
 Project duration : 1st Jan.1999 to 1st Nov 1999 ( 8 months)
 Interconnect 46 odd geographical locations across the country under big bang project
 Concept of “change Management” and its practices implementation

12. SEMINAR (ERP) - MIS- 140110746005 12
5) BENEFITS
 Company spend 40 crore INR on SAP implementation and saved 33 INR crore in 2
years
 Manpower cost has reduced from $200/ton to $140/ton.
 Overdue has been brought down from 5710 MILLION to 4033 MILLION
 Inventory Carrying cost reduced drastically from 190/ton to 155/ton
 In addition other significant gains like improvements in customer management,
Faster and better decision making process, Lean and stream line businesses,
excellent auditing system
6) SOURCES:
1) Tata steel (www.tatasteel.com)
2) Network Magazine (http://www.networkmagazineindia.com)
3) ERP Write ( www.erpwrite.com)
SAP AT TATA STEEL (TISCO)

13. SEMINAR (ERP) - MIS- 140110746005 13
J.D. EDWARDS AT HPCL
1) HISTORY:
 Founded :1974 as a HIDUSTAN PETROCHEMICALS CORPORATION LTD.
 It is a Company
 Has 2 Refineries at : Mumbai , Visakhapatnam , 2 CROSS COUNTRT PIPELINES
 Produces More than 300 grades of Lubricants
 Market share is 27% for Oil-gas in INDIA
 Export products to Bangladesh,Malaysia,Nepal, Sri Lanka and other south east countries
2) PROBLEM/SITUATION:(WHY THEY WANT TO ADAPT ????)
 Vision of innovative ways of enhancing customer satisfaction
 REAL TIME ANALYSIS , ON TIME AVAILABILITY of information across all geographical
location
 CENTRALISED system to improve efficiency

14. SEMINAR (ERP) - MIS- 140110746005
14
J.D. EDWARDS AT HPCL
3) IMPLEMENTATION STRATEGY:
 HPCL conducted a detailed process map in J.D.Edwards
 CAPGEMINI CONSULTING INDIA was engaged to deploy 14pilot sites to represent
HPCL’s business Line
 HPCL also built a CONFERENCES ROOM PROTOTYPE to TEST SOLUTION
 Customized employee compensation & PAYROLL solutions HPCL implemented
FINANCIAL & HR module
 HPCL WANTED TO CONNECT 430 GEOGRAPHICAL LOCATION ACROSS INDIA &
GLOBE
IBM TECHNOLOGIES
Company uses a
1) VIRTUAL PRIVATE NETWORK (VPN)
2) VERY SMALL APERTURE TERMINALS (VSAT’s)
3) RADIO LINK
4) ISDN (INTEGRATED SERVICE DIGITAL NETWORK)
5) DIAL-UP-CONNECTIONS TO LINK LOCATION
Setup a DRC (Disaster Recovery Center (DRC) for BACKUP in EMERGENCY
3) IMPLEMENTATION STRATEGY:
 HPCL conducted a detailed process map in J.D.Edwards
 CAPGEMINI CONSULTING INDIA was engaged to deploy 14pilot sites to represent
HPCL’s business Line
 HPCL also built a CONFERENCES ROOM PROTOTYPE to TEST SOLUTION
 Customized employee compensation & PAYROLL solutions HPCL implemented
FINANCIAL & HR module
 HPCL WANTED TO CONNECT 430 GEOGRAPHICAL LOCATION ACROSS INDIA &
GLOBE
IBM TECHNOLOGIES
Company uses a
1) VIRTUAL PRIVATE NETWORK (VPN)
2) VERY SMALL APERTURE TERMINALS (VSAT’s)
3) RADIO LINK
4) ISDN (INTEGRATED SERVICE DIGITAL NETWORK)
5) DIAL-UP-CONNECTIONS TO LINK LOCATION
Setup a DRC (Disaster Recovery Center -DRC) for BACKUP in EMERGENCY

15. SEMINAR (ERP) - MIS- 140110746005 15
J.D. EDWARDS AT HPCL
 A change Management Concept established to facilitate smooth transition
 Company developed programs for specific user group such as REGIONAL
MANAGERS, FINANCIAL STAFF, HEADS OF TERMINALS/DEPOT/LPG PLANTS, SALES
OFFICERS, PROJECT ENGINEERS, HR PEOPLE, CLEARING STAFF.
4) BENEFITS:
1) BOOST EFFICIENCY , by single, integrated business management
2) STANDARDIZE workflow
3) Improved DECISION MAKING by REAL TIME ANALYSIS
4) Easy access to CRITICAL DOCUMENTS
5) Enhanced COMMUNICATION with DEALERS
6) Improved CUSTOMER SATISFACTION
SOURCES :
Hindustan Petroleum corp. Ltd. ( http://www.hindustanpetroleum.com)
oracle corporation ( http://www.oracle.com)
capgemini, india (http://www.in.capgemini.com)

16. References
• ERP Demystified , Second addition by Alexis
Leon
• “ERP Systems – Using IT to gain a cometetive
advantages; Shankarnarayan S.
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