MIS

1. Submitted to :- Submitted by:-
Mr. Hitesh Sharma Manju Verma
M.B.A. III sem.
(Finance)

2.  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.
 Hero Honda claims to be the world’s largest two wheeler company in its
advertising. To reach the heights that it has, Hero Honda has successfully
leveraged the IT advantage.

3.  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.  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 company has installed the PAMA VSATs from Comsat Max as a
backup facility.
 The Hero Honda network spans 750 nodes across the country.
 Hero Honda uses 10/100 Mbps Ethernet switched technology for data
transmission and is connected with both optic fibre and Cat 5 cables.
Optic fibre is used for the backbone, which will also solve the future
bandwidth requirements of the company.
 The company has three Cisco routers. The company also uses a mix of
switches from three vendors: Cisco, IBM and 3Com.

5.  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.  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.  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.

8. 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
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.  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.  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.
 The company chose McAfee for its comprehensive features and good installed
base.
 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.

12.  The company receives an average of 26,000 e-mail messages per day,
which translates to almost 1 GB of storage space. Of these at least 70
percent were spam.
 The ISP was able to filter out about 50 percent of this. Still, almost 9,000
messages hit our internal mail server everyday. They tried out a few
standalone, software-based spam filters with little success.
Need for Firewall
 The company’s IT security architecture divides the network into zones,
based on the function of the infrastructure contained therein. The zones
created are:
 DMZ zone
 Third-party zone
 Application servers zone
 Critical servers zone
 Security management zone
 Network and system management zone
 LAN & WAN zone
•Unauthorized Internet access
•The changed scenario
•Information security policy
•The RoI Factor
•FUTURE PLANS

13.  GREATER RESPONSIVENESS, FEWER ERRORS
 AMBITIOUS PLANS FOR THE FUTURE
 Coming Next: Improved Collaboration, Analytics

14.  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