Business Issues / Business Drivers

• Integrating SAP CRM with Client’s existing suite of products
• Facilitate growth in high growth geographies and markets
• Innovation – Bringing new and exciting products in an aggressive timeline, to meet customers’ increasing expectations
• Cost Competition – Slow economic conditions forced auto manufacturers to cut costs across the supply chain and set targets for cost reduction with suppliers
• Pressure of declining margins – Due to pricing squeeze from customers, need to find ways to sustain operating profit
• Major challenges were faced during the requirements gathering, where different Business Units had different requirements revolving around the same functionality. The challenge was to cater to every unit’s requirement for the same functionality within the scope defined.
• Cost effective and efficient deployment of Global delivery model in both technical and functional areas with 24×7 support in all time zones
• Support globalization
  • Support integration activities
  • Provide opportunities for cost reduction
  • Multiple levels of globally spread dynamic Supply Chains
  • Highly regional Demand Planning Process.
  • Project delivery in Multi Vendor Organizational Structure.
  • Prepare activities
    • Scale down system complexity, thereby reducing total cost of ownership

Problematic Business Areas

• Disparate systems to support similar functions across different plants
• Top management unable to have good visibility into the metrics for different plants
• Discrepancies within business processes, especially those related to purchasing
• Unable to leverage on high volume of purchasing from its vendors towards cost benefits, due to decentralized purchasing
• Need to consolidate shared functions across plants and reduce costs related to management of these functions
• SAP Implementation project, to support business changes, was continuously in firefighting mode – Inadequate focus on testing and post Go-Live scenarios

Tactical Global Sourcing

• Cost reduction the primary driver
• “Discretionary” decision making on off shoring
• Ad-hoc requirements based staffing model
• Joint program and change management office
• Collaborative project and budget planning
• SLA based incentive system, not necessarily tied to business outcomes
• Improved Business-IT Alignment
• Strategic partnership with few selected vendors
• Balanced scorecard and program level metrics for measuring business value
• Managing outsourced projects
• Outcome based relationship
• SLA pilots in key business areas
• Training vendor resources on domain and company managers on global delivery processes
• “Staff augmentation” approach for offshore resources
• Organization change initiation for adjusting to Global Delivery
• SLA driven governance tied to program and business outcomes
• Strategic imperative at top management level to access larger global resource pools, not just reduce costs

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