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Deki Phuntsho INFO 245 Professor Neil Foshay November 28, 2005

6/1/2012

Tata and Microsoft

Purpose - Compare Tata Steel and Microsofts ERP implementations Brief business overviews of the two organizations For both organization

Rationales for going ERP Approach to implementation

How successful and Why?

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Tata and Microsoft

Tata Steel was established in 1907 in Jamshedpur in eastern India Belongs to the Tata Group, headquartered in Mumbai Manufactures in six countries in the Asia Pacific region Operates in 46 locations all over India Products construction materials March 2004 - 42,511 employees Income from operations 2004-2005 - US$ 960 million
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Started as a partnership in 1975 and was incorporated in 1981 Headquartered in Redmond, Washington

Technological innovation is its core business


Develops, manufactures, licenses, sells, and supports a wide range of software products One of its most popular product is the
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Markets books and invests huge amounts of money in research and development
Caters to a worldwide customer base

Offices in more than 90 countries!

Fiscal 2005 - Total revenue is US$ 9,189 million

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Tata and Microsoft

Technology Rationales

Disparate legacy systems replication of the manual system Obsolete Exchanging and retrieving information was almost impossible Information obtained was unreliable Consistent data loss

Competitive Rationale

Become the leader in the competitive steel industry

Strategic Rationale

Respond quickly to volatile needs of customers

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Tata and Microsoft

Technology Rationales

Legacy system consisted of a portfolio of disparate applications

Extremely expensive Difficult to support Lost some important financial capabilities Losing vendor support

Y2K! Inability to support future growth

Business Process Rationales


Untimely financial information Loose purchasing policy Improve payment speed to vendors Reduce time to record an asset on the books Every subsidiary maintained individual artifacts - problematic
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ERP Solution SAPs R/3 BIG BANG approach in 8 months!!

Implement all modules in all 46 locations across India at the same time

Change business process to match the software

ERP Solution SAPs R/3

Phased approach in 9 months!!

Implement all financial modules except treasury, tax, and audit

Change business process to match the software


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Technology Competitive Strategic Big Bang

Technology Business process Phased

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Success!!

Success!!

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Time boxing
A lot of thought processing and detailed planning User involvement in the system development process Hiring of outside consultants

Speeds up implementation Trains employees on the package

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