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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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