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Interview |
| SAP has integrated Key Business Process of Ispat
Industries Ltd. |
| Ankush Sohoni |
| ISPAT Industries, an integrated steel plant,
has been powered by SAP solution for more than the past six
years. The solution has helped the company to integrate its
key business process under one software discarding multiple
stand-alone legacy systems, more reliable on line data for day
to day important MIS, support fast decision making & statutory
compliance. Kishore Banerjee, GM-IT, ISPAT Industries, spoke
exclusively to CXOtoday.com about its SAP venture, and how it
has benefited from the same. |
| CXOtoday.com: When did you begin implementation
of the SAP solution? |
Kishore
Banerjee - We implemented
SAP version 4.6C on the first of May 2003. The process of
implementation began on September 2002. Our experience with
SAP wasn’t new. Before re-implementing SAP 4.6C with
12 modules we were already using SAP 3.1H for a few modules
and there were a few modules running on Sybase, FoxPro &
other applications. |
| CXOtoday.com: What were you looking at in an
ERP? |
Kishore Banerjee
- There were a number of
factors that contributed towards our choosing an ERP. Firstly,
when you’re looking in the market for an ERP, you must
understand your own business requirements. One has to be well
informed as to what are the company’s business processes
and what kind of functionality one requires from an ERP. Another
important feature we expected form our ERP vendor was on-line
& long term support. Quick response with solution for
change in taxation rules of your country also helps a lot
when, it is supported by the vendor. We made sure that we
choose a vendor who has a firm foothold in the market, so
that we could be sure that may be ten or twenty years down
the line, our vendor does not sell out or run out of business.
One should also consider which vendor is consistently investing
major amount in R&D, because if a vendor does not invest
in R&D, the vendor will not understand their customers’
needs. R&D would involve research on complex and rapid
changing business environment resulting change in business
processes, best practices, etc. This also enables them to
provide better support. Another important point when you are
implementing an ERP is that you have to invest in new hardware
and select your implementation partner. The ERP vendor should
have strong collaboration with leading hardware and implementation
vendor.
|
| CXOtoday.com: Why did the company choose SAP? |
| Kishore Banerjee
- While selecting the ERP solution, we have considered
the above criteria, though we also have considered on the ERP
solution implemented by other Iron & Steel Manufacturing
corporates. We implemented Logistic, FICO, HR, CIN. |
| CXOtoday.com: What kind of benefits have you
seen after implementing SAP? |
| Kishore Banerjee
- The key benefits of SAP would include on-line MIS,
improved analytics, better productivity of employees time, better
levels of transparency, better customer & vendor relations
and improved decision making. |
| CXOtoday.com: Did you put together an integration
team, to deploy the ERP? |
| Kishore Banerjee
- Yes, in fact we had a seventy member functional &
technical internal team involved in this project. We had soaring
support from top management and steering committee. We had a
system of monthly project reviews by the top management to monitor
the progress of the project. Our functional team (SAP Key user)
was highly experienced and had a lot of expertise in their function.
We conducted several ERP workshops & training for our employees
of different level. The key users finalized the business process
(TO BE Process -BBP) to be the most effective for our business.
The BBP was discussed with the concerned functional heads for
confirmation. The BBP was also reviewed by our SAP implementation
partner (CVS IT) and quality assurance partner (E&Y) before
realizing it in SAP. We also made some enhancements in SAP to
fulfill our critical business requirement & automation.
We have given help desk support for 6 months post implementation
period to resolve problem on line. |
| CXOtoday.com: Did you experience any issues
during integration? |
| Kishore Banerjee
- Yes. We did experience lot of cross-functional and
business process finalization issue, however, those were resolved
based on discussion within the core implementation team, functional
heads & implementation partners |
| CXOtoday.com: What is the company’s future
plans with regards to IT? |
| Kishore Banerjee
- We are exploring to upgrade
to version 4.7 Enterprise Edition. As per our IT strategy, we
are also exploring the possibility to implement DW, SRM, CRM,
ERM. We do plan to constantly upgrade our systems, because our
journey towards growth & excellence will always continue,
and we are going to keep enhancing utilization of our existing
ERP functionality. We will handle need for all future change
in business process through our existing ERP solution to run
our business better. |
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