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Enterprise Resource Planning

notes choosing the platform and technology
The management at TISCO wanted the software to seamlessly integrate with its existing
information system and further provide compatibility with its future implementations. After
an in-depth study of functionality, cost, time, compatibility, esteem, operability, support,
and future organizational requirements SAP fared on the top of the list of contenders.
The implementation of SAP was associated with certain strategic goals in mind. With this
implementation, TISCO wanted to bring forth a culture of continuous learning and change.
This would enable TISCO to achieve a world-class status for its products and services and
strengthen its leadership position in the industry. Besides this, TISCO also wanted the
software to result in quick decision-making, transparency, credibility of data, and improve
responsiveness to customers across all areas.

the real challenge
B Muthuraman, MD (Designate), said, “Implementing any ERP system is a challenge for
an organization because of the declining success rate of ERP implementations world-wide.
At Tata Steel however the real challenge for us did not lie in successfully implementing
SAP or in rolling it out to our 46-odd geographic locations across the country under a big
bang approach in just eight months. The real challenge lay ahead in building a conducive
environment where SAP will be embedded in the hearts and minds of the people and the
customers of TISCO.”

mapping technology to Business processes
A road map was created to achieve the desired levels of success with ERP. All branches
which had huge numbers of transactions and complexity, were identified as ‘hubs.’ And
the smaller branches along with the consignment agents were defined as ‘spokes,’ which
were attached to these branches. In January 1999 TISCO created a team called ‘TEAM
ASSET’, an acronym for Achieve Success through SAP Enabled Transformation.
The TEAM ASSET had two simple axioms:
1. Go-Live date - 1st November 1999
2. There are only 24 hours a day

Preparatory task forces activities were conducted and core business processes were mapped
to SAP modules.
A parallel activity called ‘Change Management’ was initiated within the company. The
prime objective of ‘Change Management’ was to reach out to people involved non-directly
in the project to apprise them of the developments taking place.
Tata Steel planned a ‘big-bang’ approach of going live with all the modules at the same
time. Within eight months, on November 01, 1999, Tata Steel pulled off a big bang
implementation of all SAP modules at one go across 46 countrywide locations. The deadline
was successfully met.
the result
The introduction of SAP solutions within Tata Steel has led to efficient business processes,
enhanced customer service, reduced costs, improved productivity, accelerated transaction
time, workflow management and reduction in the number of credit management errors.
There have also been significant savings in manpower, inventory levels, and resource
management.
TISCO can now update its customers daily and provide seamless services across the country,
improving customer management. The availability of online information has facilitated
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