TATA STEEL -IdeationBy:SIDDHARTH HIMAKAR – 12BM60062MURALIDHARAN. U – 12BM60070
Steel Industry at a glance:• In 2011 the world crude steel production reached 1518 million tonnes (mt) and showed a growth of 6.2% over 2010. (Source: World Steel Association or WSA)• China remained the world’s largest crude steel producer in 2011 (684 mt) followed by Japan (108 mt), the USA (86.4 mt) and India (72.2 mt; prov) at the 4th position (72.2 mt).• The WSA has projected that global apparent steel use will increase by 3.6% to 1422 Mt in 2012, following growth of 5.6% in 2011. In 2013, it is forecast that world steel demand will grow further by 4.5% to around 1486 Mt. China’s apparent steel use in 2012 and 2013 is expected to increase by 4% in both the years. For India, growth in apparent steel use is expected to grow by 6.9% in 2012 and by 9.4% in 2013.• Per capita finished steel consumption in 2011 is estimated at 215 kg for world and 460 kg for China. (Source: Ministry of Steel, Government of India)
Indian Steel scenario:• The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel.• Rapid rise in production has resulted in India becoming the 4 th largest producer of crude steel and the largest producer of sponge iron or DRI in the world.• As per the 12th year plan, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.Tata Steel Scenario:• One of the world’s largest steel maker.• Annual turnover of US$ 26.13 billion in FY 2011-12, has over 81,000 employees across five continents and is a fortune 500 company.• Geographically diversified production facilities include India, the UK, the Netherlands, Thailand, Singapore and China.
Gap in the Architecture:Present Scenario:• Tata steel already has presence in the social media like Facebook, Linked in, Twitter, Youtube, etc…• The company uses social media from recruitment to customer interaction including complaints to promoting its CSR activites and environmental awareness initiatives.• The company was the first to implement SAP (ERP) software for bringing its operations in IT to improve the functionality.• The company was the first company to move from SAP to Enterprise Version 4.7 to provide SAP over internet, which can be accessible from anywhere in the world provided with strong security mechanism.
Gap in the architecture (contd.)What needs to be done:TATA steel being a globally dispersed company needs tobring in the ERP, Planning and Budgeting, Human CapitalManagement, Talent Management Pool, Sales andMarketing, Customer Service and Support, SocialEngagement and Monitoring and Social Marketing allunder one platform completely integrated for betterproductivity, reduced costs, customizability, security andreliability.
Introduction – Cloud Computingfor commodity industry
Advantages of Cloud Computing:• A good Cloud service provider offers a broad portfolio of software as a service applications, platform as a service, and social capabilities, all on a subscription basis. Hence less wastage of resources thereby reduced cost.• Cloud delivers instant value and productivity for end users, administrators, and developers alike through functionally rich, integrated, secure, enterprise cloud services.What cloud offers for commodity industry like TATA Steel:• Enterprise Resource Planning• Planning and Budgeting• Human Capital Management• Talent Management• Sales and Marketing• Customer Service and Support
Oracle Cloud Service Provider: • Oracle ERP Cloud Service : The Oracle ERP Cloud Service is an integrated suite that transforms back office into a collaborative, efficient, and intuitive hub. A rich set of financial and operational capabilities is married with the latest in social, mobile, and analytic technologies. Your information is protected on a platform you can trust - for complete confidence in the cloud. • Oracle Planning and Budgeting Cloud Service: Oracles market-leading Enterprise Performance Management applications enable TATA Steel to achieve Business Excellence by integrating strategy, planning, and execution across management and operational systems. Oracles performance management applications are a modular suite of integrated applications that integrate with both Oracle and non-Oracle transactional systems and feature common Web and Microsoft Office interfaces, common reporting tools, mobile information delivery, and common administration.
Oracle Cloud Service Provider:(contd.)• Fusion Human Capital Management: Oracles Fusion Human Capital Management enables TATA steel to architect a global foundation for HR data and improved business processes. Fusion HCM delivers a robust set of best-in-class human resources functionality that enables TATA Steel to increase productivity, accelerate business performance, and lower your cost of ownership.• Oracle Taleo Cloud Service: The Oracle Taleo Cloud Service enables TATA steel to recruit top talent, align that talent to key goals, manage performance, develop and compensate top performers, and turn todays best performers into tomorrows leaders.• Oracle Social Engagement & Monitoring Cloud Service: Oracle Social Engagement & Monitoring Cloud Service provides listening, engagement and analysis capabilities across social channels to help you understand your customers and act.• Oracle Social Marketing Cloud Service: Oracle Social Marketing Cloud Service easily enables TATA steel and agencies to publish social content, engage fans, and customize your brands character.
Benefits• Integration of computing, network and storage in ondemand cloud perform to deliver IT services.• Provides enhanced routing, switching and security technologies that with UDC.• Unlocks the power of collaboration with your suppliers and channels.• Effective and easy communication between employees.
Possible Challenges• Possible downtime.• Security issues.• Inflexibility.• Lack of support.
Cost Estimates• Cost related to in-house support team for the maintenance of the features offered by the service provider.• Cost related to procurement of the service from a reliable service provider.• There are various solutions offered in cloud at a nominal cost all these have to be evaluated before using them for the internal and external operations of TATA steel as only some might be relevant to our present business.