BISM SectionA Group10 Project Midterm Report

7/28/2019 BISM SectionA Group10 Project Midterm Report

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HCL a n I n f o r m a t i o n Sy s t e m

Vendor

&

Projec t Management Methods

Used in Large Sca le IT sys tem

Prepared for : Dr. Radhakrishna Pillai, I.I.M. Kozhikode.

Prepared by : Section A, Group 10

Date : 15th

February 2012

Group Members : Balakrishnan V PGP/16/010

Bharat Subramony PGP/16/012

Debolin Dey PGP/16/015

Priyanka Sidharth PGP/16/038

Shuchi Garg PGP/16/047


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The Wrong Turn

By 1992, Vineet, like many of his colleagues, was frustrated and worried about

HCLs future and was thinking about forsaking the company and began own entrepreneurial

venture. Vineet decided to take on a challenge, hired a few colleagues and founded HCL

Comnet, an IT infrastructure and networking business wholly owned by HCL that would try

to win contracts. Comnet basically beat global majors for the deal with the government to

establish an electronic stock exchange, and the new exchange was running smoothly by the

end of 1994. With this deal, and many more in pipeline, Comnet soon became one of HCLs

most innovative and successful businesses.

As the Indian government began to deregulate, multinationals like IBM returned,

adding more competition. Second, customers were increasingly demanding integrated IT

services that could give them competitive advantage; as such, global IT leaders were

transforming themselves into service delivery businesses. Third, companies were increasingly

off-shoring re-coding and application development work to India to take advantage of lower

costs. In particular, the Year 2000 problem (Y2K) sparked a rush to India for IT support.

Nadars philosophy was to avoid competing on price so he decided not to participate in the

Y2K remediation.

Nadar concluded it was time for HCL to move aggressively into a new strategic

direction, and he ended the relationship with HP in 1997 to facilitate HCLs move into

services. He changed the management team and in 1998 reorganized HCL into two

companies: the Indian-facing HCL Infosystems, a company focused on hardware and on

software integration, and HCL Technologies, a global IT services company that would

provide software-led IT solutions, remote infrastructure management services and business

process outsourcing (BPO). HCL eventually did end up entering the IT services arena, albeit

a little late.


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Vineet Nayarnew leader, new direction

Vineet Nayar, was soon appointed the CEO of HCL, and he took upon himself the

arduous task of rejuvenating HCL. He initiated the Employee First Customer Second

program, which focused on removing the internal barriers while trying to achieve global sales

and new customer orders through multi-million dollar deals. The results of the EFCS policy

were clear in the performance post 2005-implementation.

1. From 2005-2008, HCL has maintained a three-year CAGR of 25%. HCL has nearlytripled its employee base since 2005. Ideas submitted by creative employees through

HCLs value portal generated new streams of revenue.

2. A company that outsources its development may see an executive from the outsourcera few times a year, but it deals with the development team daily. Even though HCL

puts its employees first and customers second, the company measured a net gain of

43% in customer satisfaction scores from 2008 to 2009, which was followed by a

further 21% net gain in customer satisfaction scores from 2009 to 2010.

3. HCL has been in a cutthroat business where its competitors try to lure away topperformers with bonuses or higher pay if they are willing to jump ship. But for

creative employees, money is only one factor in the decision. As HCLs workforce

has become more independent and engaged, net attrition is down by almost 50%.


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HCL-Axon a new beginning

In 2008, HCL bought over a British IT-Tech firm Axon, which empowered HCL with

SAP delivery, they have 60 offices and are present in 24 countries and have close to 4,500

SAP consultants right now. What essentially this becomes is also now HCL became the

alternative to IBM and Accenture in SAP consulting. It gives it a leg up compared to most of

the other Indian SAP consultants. It is a 26 billion addressable market out of which only USD

1 billion was being offshored and there had been a huge opportunity of close to USD 7 billion

that could have been offshored and that is the gap which they were going to close with a front

shore capabilities from Axon and the backshore capabilities of HCL.

HCL AXON operates as a single global organization allowing deployment of

consulting teams which leverage proven industry and solution best practices from its offices

around the world. Its global delivery model does not treat offshore as an afterthought; but

fully integrates the offshore capabilities into its implementation and application management

methodologies to ensure that the value of expensive onsite resources is fully optimized.


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Norfolk SouthernIT Implementation by HCL

Brief overview about the client-norfolk southern

Norfolk Southern is one of the premier transportation companies. Its Southern

Railway subsidiary operates approximately 20,000 route miles in 22 states and the district of

Columbia, serves every major container port in the eastern U.S. It provides efficient

connections to other rail carriers. It operates the most extensive intermodal network in the

East and is a major transporter of coal and industrial products.

IT implementation by HCL-Axon

HCL AXON has successfully implemented the Synergy project, encompassing

significant world-class business processes based on SAP solutions and stabilization support at

Norfolk. HCL AXON had to replace 40 plus systems addressing the areas of Financial

Management, Human capital Management and Material Management, which speaks of

the complexity, and immense scale of this two-year program. A business-centric, Center

of Excellence known as the Synergy Centre has been established for the on-going

operations, releases and optimization of SAP solutions.

HCL AXON was chosen as the one as it helped in providing system integration

services to enhance the infrastructure at Norfolk Southern to meet the changing demands of

the business. Here a robust SAP solution was implemented which enabled a real time, fully

integrated and cohesive system and will further enable future back-office transformation

across other business functions.


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Project Management Methodology Adopted

The synergy project was successfully implemented through world class business

processes through solutions provided by SAP. As a part of the effort HCL AXONs

consulting expertise was brought on as a part of two year implementation. It was a large and

complex implementation module with consulting experts of HCL AXON with talented

resources of Norfolk Southern working together.

The president of HCL AXON, Steve Cardell tells that the tools to utilize the

integrated SAP solution and this will enable accurate and timely information to optimise their

business processes and achieve their longer-term growth objectives.

Change Management

The change management program implemented by HCL AXON included 9 BPO

owner departments and three extended stakeholder groups that remained actively involved

throughout the project lifecycle for the back-office changes. An engagement of more than

100 Norfolk Southern Change Agents throughout the project, 400 communications and 400

training tools and coaching guides and reference sessions helped in bringing about this

transition and helped in managing the large scale implementation.

HCL AXONs long track record of delivering transformation capabilities for the

travel, transportation and Logistics Industry helped in bringing about this change over in

Norfolk Southern.


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BRITVICIT implementation by HCL

Brief overview about the client- Britvic soft drinks limited

Britvic Soft Drinks Limited is one of the leading UK based manufacturer and supplier

of branded and private label soft drinks. Britvic plc is has an enviable portfolio of market

leading brands, such as Robinsons, J2O, Fruit Shoot, Tango and Drench in GB, MiWadi, Club

and Ballygowan in Ireland, and Teisseire, Fruit and Pressade in France. They also have

exclusive bottling agreements with PepsiCo in the UK and Ireland for global brands such as

Pepsi and 7UP. The company employs approximately 2,700 staff in 26 locations in the UK and

has a turnover of 680 mn pounds.

Need for IT implementation

Britvic had been growing at a tremendous rate over the years. This had led to a lot of

changes in the strategic priorities and the need for a growth plan. This led Britvik, in 2003, to

embark on a major programme of business transformation having as the company's business

processes and supporting technologies were inadequate for such rapid growth and

development.

Solution presented by HCL-Axon

HCL AXON implemented a full scope SAP-enabled business transformation

program. Its primary objective was to deliver a step-change in operational performance,

which would lead to the making of an organization which could win in a highly competitive

and fast changing market.


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Implementation Process and Benefits

The business transformation programme delivered by HCL AXON covered finance,

procurement, logistics, production, order to cash and commercial asset management. With

SAP beverage industry best practice at its core a benefits driven approach to process and

system design was used. They were aligned to the strategic goals of the organisation.

Originally the time frame for the implementation was fixed at 32 months but engaging

HCP AXON completed it in 20 months. The programme has delivered benefits worth 11m

of sustainable cost savings in 2006 with an additional 7m of savings expected across 2007

and 2008.

The tangible benefits delivered by the program include:

Product concept to launch time reduced by a third Inventory reductions and reduced storage costs Headcount reductions Savings enabled by optimization of replenishment and sourcing Manufacturing efficiencies, including production waste reductions Centralization of all procurement Better indirect procurement control and improved supplier management

Improved cash flow

Better promotional decision making helping to increase average revenue per liter

Change management as part of implementation

HCL AXON's role does not just end at delivering of improved processes and a world

class SAP platform but involved a vital role in overall programme direction and management.


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It also involved driving the SAP change management effort by education the senior

management and developing a detailed organizational and role design.

Mike Jones, IT Director at Britvic has the following to say about how HCL AXON

has contributed to the business transformation programme, "We chose AXON as a strategic

partner to support us in this major transformation programme for their deep SAP technical

expertise, their rigorous implementation methodology and their skills in process optimization

and change management. More importantly, they demonstrated a structured approach to

accelerated benefits realization and are helping us achieve the platform agility we require

going forward."

This indicated that HCL AXON not only is an IT service provider but also helps

companies in managing the change and in successful implementation of the solutions offered

by them.


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Documents

BISM SectionA Group10 Project Midterm Report