Hero Honda: Zipping Away on IT

DQI Bureau
New Update


SR Balasubramanian, Hero Honda

Hero Honda, this revolution on two-wheels landmarks with the best in the auto

mobile world. The pace of technology here is fuelled by a very clear road that

has addressed IT as a core business issue rather than a stand-alone exercise.

The top managements involvement in selection, implementation and monitoring of

the progress and benefits has helped Hero Honda in maximizing their value

creation from IT.

As a star site for SAP ERP, Hero Honda's implementation has been one of the

quickest in the time schedule drawn. At present, Hero Honda has gone beyond its

organizational boundaries to connect its vendors and dealers by implementing the

SRM and CRM modules of SAP for online transaction and collaboration.


The electronic storage of documents has helped save considerable space, and

has made access easy. SAP's 'Business Intelligence Warehouse', which was

implemented 6 months ago for Business Intelligence is also gaining ground and

has been used to derive maximum advantage for business.

The IT infrastructure of the company is connected over three major networks,

which connect the corporate office in New Delhi with two manufacturing plants (Gurgaon

and Dharuhera), and other zonal and marketing offices through VPNs, leased

lines, and VSAT.

Considering the security and growth of data, the simple storage device has

given way to the highly redundant and scalable, Enterprise Storage System (ESS

F-20). The crucial need for backup of these servers and the demand for their

24x7 availability made Hero Honda adopt Tivoli Storage Manager, which reduced

the downtime from 18 Hrs/week to 30-mins/week.


Hero Honda's pervasive IT security policy is also in action throughout the

organization with security monitoring existing both at the technical level

(firewalls, intrusion detection and other tools) and at the user level

(information classification, access rights, defining responsibilities).

Also Hero Honda's SRM and CRM initiative along with the proposed

centralized Dealer Management Software system is expected to reduce the

lead-time in the customer order fulfillment process. This would also result in

reduced inventory levels across the supply chain and help in better forecasting

and analysis of consumer demand.



SRM and CRM implementation has speeded up transaction cycle

- All documents stored electronically either using DMS or microfilms

The real and substantial IT benefit is expected to arise when the consumer

demand drives all actions through to the vendor supplies. For this veritable

automobile giant, which has come so far, Hero Honda now truly aims the skies

with its plans to integrate its entire value chain with the help of technology

and provide further flexibility to business.