Deki Phuntsho INFO 245 Professor Neil Foshay November 28, 2005 TATA STEEL AND MICROSOFT CORPORATION'S ERP IMPLEMENTATIONS
<ul><li>Purpose - Compare Tata Steel and Microsoft’s ERP implementations  </li></ul><ul><li>Brief business overviews of th...
Overview of Tata Steel <ul><li>Tata Steel was established in  1907  in Jamshedpur in eastern  </li></ul><ul><li>India </li...
<ul><li>Started as a partnership in 1975 and was incorporated in  1981 </li></ul><ul><li>Headquartered in Redmond,  Washin...
<ul><li>Markets books and invests huge amounts of money in research and development </li></ul><ul><li>Caters to a worldwid...
<ul><li>Technology Rationales </li></ul><ul><ul><li>Disparate legacy systems – replication of the manual system </li></ul>...
<ul><li>Technology Rationales </li></ul><ul><ul><li>Legacy system consisted of a portfolio of disparate applications </li>...
<ul><li>ERP Solution – SAP’s R/3 </li></ul><ul><li>BIG BANG approach in 8 months!! </li></ul><ul><ul><li>Implement all mod...
<ul><li>Technology  </li></ul><ul><li>Competitive </li></ul><ul><li>Strategic </li></ul><ul><li>Big Bang </li></ul>Tata  M...
<ul><li>Time boxing </li></ul><ul><li>A lot of thought processing and detailed planning </li></ul><ul><li>User involvement...
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Tata

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Tata

  1. 1. Deki Phuntsho INFO 245 Professor Neil Foshay November 28, 2005 TATA STEEL AND MICROSOFT CORPORATION'S ERP IMPLEMENTATIONS
  2. 2. <ul><li>Purpose - Compare Tata Steel and Microsoft’s ERP implementations </li></ul><ul><li>Brief business overviews of the two organizations </li></ul><ul><li>For both organization </li></ul><ul><ul><li>Rationales for going ERP </li></ul></ul><ul><ul><li>Approach to implementation </li></ul></ul><ul><li>How successful and Why? </li></ul>Introduction
  3. 3. Overview of Tata Steel <ul><li>Tata Steel was established in 1907 in Jamshedpur in eastern </li></ul><ul><li>India </li></ul><ul><li>Belongs to the Tata Group, headquartered in Mumbai </li></ul><ul><li>Manufactures in six countries in the Asia Pacific region </li></ul><ul><li>Operates in 46 locations all over India </li></ul><ul><li>Products </li></ul><ul><ul><li>construction materials </li></ul></ul><ul><li>March 2004 - 42,511 employees </li></ul><ul><li>Income from operations 2004-2005 - US$ 960 million </li></ul>
  4. 4. <ul><li>Started as a partnership in 1975 and was incorporated in 1981 </li></ul><ul><li>Headquartered in Redmond, Washington </li></ul><ul><li>Technological innovation is its core business </li></ul><ul><li>Develops, manufactures, licenses, </li></ul><ul><li>sells, and supports a wide range of </li></ul><ul><li>software products </li></ul><ul><li>One of its most popular product is the </li></ul>Overview of Microsoft
  5. 5. <ul><li>Markets books and invests huge amounts of money in research and development </li></ul><ul><li>Caters to a worldwide customer base </li></ul><ul><ul><li>Offices in more than 90 countries! </li></ul></ul><ul><li>Fiscal 2005 - Total revenue is US$ 9,189 million </li></ul>Overview of Microsoft
  6. 6. <ul><li>Technology Rationales </li></ul><ul><ul><li>Disparate legacy systems – replication of the manual system </li></ul></ul><ul><ul><li>Obsolete </li></ul></ul><ul><ul><li>Exchanging and retrieving information was almost impossible </li></ul></ul><ul><ul><li>Information obtained was unreliable </li></ul></ul><ul><ul><li>Consistent data loss </li></ul></ul><ul><li>Competitive Rationale </li></ul><ul><ul><li>Become the leader in the competitive steel industry </li></ul></ul><ul><li>Strategic Rationale </li></ul><ul><ul><li>Respond quickly to volatile needs of customers </li></ul></ul>Tata's Rationales
  7. 7. <ul><li>Technology Rationales </li></ul><ul><ul><li>Legacy system consisted of a portfolio of disparate applications </li></ul></ul><ul><ul><ul><li>Extremely expensive </li></ul></ul></ul><ul><ul><ul><li>Difficult to support </li></ul></ul></ul><ul><ul><ul><li>Lost some important financial capabilities </li></ul></ul></ul><ul><ul><ul><li>Losing vendor support </li></ul></ul></ul><ul><ul><li>Y2K! </li></ul></ul><ul><ul><li>Inability to support future growth </li></ul></ul><ul><li>Business Process Rationales </li></ul><ul><ul><li>Untimely financial information </li></ul></ul><ul><ul><li>Loose purchasing policy </li></ul></ul><ul><ul><li>Improve payment speed to vendors </li></ul></ul><ul><ul><li>Reduce time to record an asset on the books </li></ul></ul><ul><ul><li>Every subsidiary maintained individual artifacts - problematic </li></ul></ul>Microsoft's Rationales
  8. 8. <ul><li>ERP Solution – SAP’s R/3 </li></ul><ul><li>BIG BANG approach in 8 months!! </li></ul><ul><ul><li>Implement all modules in all 46 locations across India at the same time </li></ul></ul><ul><li>Change business process to match the software </li></ul>Tata's Implementation Approach Microsoft's Implementation Approach <ul><li>ERP Solution – SAP’s R/3 </li></ul><ul><li>Phased approach in 9 months!! </li></ul><ul><ul><li>Implement all financial modules except treasury, tax, and audit </li></ul></ul><ul><li>Change business process to match the software </li></ul>
  9. 9. <ul><li>Technology </li></ul><ul><li>Competitive </li></ul><ul><li>Strategic </li></ul><ul><li>Big Bang </li></ul>Tata Microsoft Rationales <ul><li>Technology </li></ul><ul><li>Business process </li></ul><ul><li>Phased </li></ul>Approach ------------------------------------------------------------------------------- Success!! Success!! Result
  10. 10. <ul><li>Time boxing </li></ul><ul><li>A lot of thought processing and detailed planning </li></ul><ul><li>User involvement in the system development process </li></ul><ul><li>Hiring of outside consultants </li></ul><ul><ul><li>Speeds up implementation </li></ul></ul><ul><ul><li>Trains employees on the package </li></ul></ul>Why Successful
  11. 11. Thank you!

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