ub india forrester 4.0

Presentation Route Map

• About United Biscuits & the choice of ITaaS

• From Assessment To Implementation• Solution Summary• Challenges And Key Learnings• Current Status And The Future• Recommendations & Q/A– What you should be asking yourself

before embarking on ITaaS

Current State Assessment (Factory) – “Green Field”

• Business Processes– All paper based– 3 pages of documentation existed

• Software:– Basic accounting software, home built in Visual Basic

• Hardware– PC’s, Radio Mast and Printers

• Services, Support and Contracts– Broadband– No Contracts for hw/sw maintenance– Accounting software supported from head office

Business Modelling

• Working blind– No context or Employees

• User workshops with UK International team– 100+ years experience in each workshop

• Sessions split across related processes• After the solution selection, the same session

structure was used for ‘Closing the Gap’ and sign-off

Model Define requirements and business processes Purchase software –

Capex Purchase hardware/infrastructure – Capex Negotiate multiple contracts Arrange complicated support

Model Define requirements and business processes Software, hardware,

infrastructure and support rented as a service - Opex Configure software – Opex Negotiate one contractBenefits and Risks Single contract Less risk project management Data and design owned – assets replaced every 3 years Lead times and implementation times shorter Easier exit mechanism

Benefits and Risks Assets owned – depreciation and upgrades Multiple contracts for delivery and support Complex project management Longer lead times and

implementation times Risky capital expenditure

Solution SelectionTraditional model ITaaS – IT as a Service model

Solution Selection• Consulted Forrester Analysts• Worked closely with UK TCS Account Manager to understand

local India options, which include:– SAP (Traditional)– MS Dynamics (Traditional)– TCS SMB (IT as a service)– Local solutions such as Tally (Traditional)

• ITaaS solution selected– Flexibility / Pay-as-you-use / grow model– Scalable– Local knowledge, plus possessed UB existing relationship– Implementation timescale– DR / Support provided– Cost

Esther Yuen

Can we change this to "Able to meet implementation timescale"?

Esther Yuen

Can we elaborate on this point? Is it possible to state how much of a cost savings was a experienced over the traditional model?

Implementation PhasingJune 2009 Sep 2009 Dec 2009Mar 2009 Mar 2010 June 2010

Source and

negotiate

location

India MD

recruited

Delhi Head office

set-up

Factory

purcha

sed in

Kala Amb

Factory handov

er comple

te

Exportproduc

t

Product in

100,000

outlets

Go Live

UB India ship

product

1st jan 2010

Go Live

June 2009 Sep 2009 Dec 2009Mar 2009 Mar 2010 June 2010

Implementation Phasing

SMB Contract Signed

Close the Gap

User training

User trainingUser

training

Sales Manage

ment

Import/Export

Management

Invento

ry

Manage

mentProcure

ment

MRP

Quality Manage

ment

Production

ManagementFinance &

Accounting

HRMS Change request

s

Change requests

Change request

s

Change requests

Change

requests

MPLS Network Delhi MPLS

Network Kala Amb

e-Mail/Office

Laptop,

Desktop

Solution Summary

• Solution is Intuitive– Suitable for non-IT Savvy employees– Remote management– Remote support– Limited Training required

• English

–

Unique to ITaaS Global Challenges

Project Challenges

• ContractContract– Including LAN, PM– Including bands and tables for all services– Exit clause agreement (90% time)

• Configuration changeschanges– Wastages – TOC, Scrap, Losses– Hierarchical BOM– Product coding – traceability– Labour costing

• Master data and test data not availabledata not available– Supplier negotiations ongoing– Customer negotiations ongoing

• FlexibilityFlexibility – Payroll in, then outsourced• Lead time Lead time for Network/Hardware

– MPLS delayed by 8 weeks – last mile

• ConfidentialityConfidentiality– Care with factory Employees

• Fitting in with civil workcivil work– LAN – 2 x temporary before permanent

• Project structure and governancestructure and governance• ExpertiseExpertise for workshops (100+ years

experience)• UncertaintyUncertainty – multiple unknowns• Red tape Red tape – deliveries held at state borders• LeglislationLeglislation – certificates • RiotsRiots at Ludhiana – held up new

manufacturing kit– Business priorities and availability

• UK International team signed off solution initially . . . Senior Indian employees employees recruited laterecruited late

Key Learnings• Green Field Green Field implementation more

suitable for ITaaS• ITaaS is both Flexible Flexible and adaptableadaptable

– If you don’t use it you don’t pay for it (e.g. payroll)

• ITaaS ERP can be delivered in a few monthsmonths

• Project Management required on ground – Local – understand both culturescultures

• A fully outsourcedoutsourced IT function is possible

• Start contract earlyearly – it takes time• Integrated teamIntegrated team – IT and Business

working as partners – India/UK

• ControlControl – system can be accessed from UK

• GovernanceGovernance and structure• Communication toolstools

– Webex, Smartsheet and Skype invaluable

• Many years of business experienceexperience required to work with so much uncertainty

• Enhancements affect stabilitystability– Others and ours (e.g. SQL)– Control over releases

• Test environmentTest environment allocation in DC + copy back mechanism

• Build in many points of failurefailure + manual process

Current Status• MPLS + Local Networks optimised at both Kala Amb and Delhi• Desktops, Laptops, Printers fully utilised and supported• Unitedbiscuits.in domain secured UB India team – emails etc.• Internet access optimised at both sites (UBUK visitors)• ERP System implemented for UB India and CFA’s

– F&A (AP, AR, GL), Procurement, Sales, Production, Logistics– Training complete– Export Implemented– Budget Management & Audit Management Implemented– BI introduced

• Payroll outsourced• Next Steps

– QM and MRP – H1 2010– PP, PM, T&A, Intranet, DMS, Sales Forecasting, CRM - 2010

Future

• Model can be rolled out to any additional factories in India in a few months

• Model can be used in UK/Europe• Hybrid model could be developed with Legacy

ERP systems• Using as template for UK strategy

Recommendations & Q/A• Green field sites are ‘easier’ – good place to

learn• 99% of ‘Traditional’ experience comes into

play• The CONTRACT is most important • What should you be asking yourself?

Appendix

Services layer

Components layer

Common Data Services

Security

Monitoring

Scheduling

Versioning

Logging

Metering

E-Mail

SMS

Component Assembly

Suite

Service Bus

IntegrationServices

Transactional Data

Data Services

DataWarehouse

Meta Data

MDM

Logical Data Model

Messaging Standards

Presentation layer

Channel layerInternal/External

Workflow layer

WEB Mobile Blackberry Other

HTML Client WAP Client Rich Client Java Client

Technical Architecture

ub india forrester 4.0

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