Mis assignment

1. Assignment
Each student will be required to analyze successful application of IT
in a business organization from the journal and/or internet sites, the
submission will be a case built up from this readings about how an
organization has leveraged IT for competitive advantage. Not more than
6 pages hand written. 14.09.2007/06.30 PM


UNDER THE GUIDANCE OF PROFESSOR SHRI M.L. SINGHLA





BY
KINSHOOK CHATURVEDI
ROLL NO N-35
FMS PART TIME MBA 2009-12
SECOND YEAR
III RD SEMESTER

2. Case Study is related to implementation of SAP system in Delhi Metro
Rail Corporation Limited
Requirement of customized IT system

DMRC is building a Mass Rapid Transit System (MRTS) in
Delhi, the objective being to provide a safe, reliable and
integrated transport network that will meet the rising
demand for inter -city transport in the capital. An IT
system was required to smoothen the flow of information,
support planning tool s, provide vital reports for decision
making, reduce administration time, better utilize the
organization’s resources, and let DMRC concentrate on its
core competence. In DMRC it is required to inter link human
resources, maintenance, stores, accounts, pro ject execution
and property development activities and fully computerized
to avoid manual delays, heavy Documentation and duplication
of inter-department activities. DMRC is require to
establish a databank of information within themselves,
which will be Av ailable to all departments round the clock
and thus will help in Improving efficiency and increasing
productivity of the corporation.
Requirement for the system
In view of above, DMRC require a IT system having at least
following characteristics
1. Faster Speed
2. Integrated
3. Knowledge Sharing
4. Flexibility for changes (Business and IT)
5. Can be implemented as an individual module.
Identification of system to be implemented
The process began with the selection of SAP software
after benchmarking it against various E RP packages
available in the market to see which of them met DMRC’s
requirements; soon after, Siemens was chosen to implement
and manage the solution. The best ERP Software, which is
implemented in DMRC, is SAP R/3, which is provided by
world’s largest ent erprise software company SAP AG. SAP R/3
is acronym for Systems Applications and Products in data
processing. R/3 means Runtime System, Three Tier
Architecture. The SAP system deployed by DMRC supports
multiple functions such as general ledger, accounts
receivable & payable, fixed asset management, project
planning, company structure management, funds control,
procurement management, real estate management, materials &

3. warehouse management, maintenance and human resource
management.

Process of implementati on
The systems’ core modules —Financial, Costing, Materials
Management, Human Resources, Maintenance, project Systems
and Real Estate Management —were tightly integrated and
implemented in record time. The SAP solution went live in
nine months by November 20 02, as planned. It involved
setting up the software to meet DMRC’s requirements and a
complete change management process to handle the change in
traditional patterns of thought and behavior at DMRC.
Result after implementation
After going live, the entire project is being handled
through SAP Project Systems. All the material and labor
consumed is accounted for online, and project systems are
capable of creating automatic indents for procurement of
material and services against existing contracts. DMRC can
now have a detailed view of activities and schedules, and
it gets advance warning of any slippage on time lines,
material or labor so that corrective action can be taken.
It also gets an accurate costing of all project elements,
and measures budgeted costs against actual. Finally, DMRC
is now able to predict the exact time lines for upcoming
phases, and rapidly execute project activities while saving
time.
DMRC’s IT benefits as competitive advantage
DMRC is a construction company. Construction is a business
where success is measured by the ability to complete
projects on time and within budget. The management of the
construction projects benchmarked and constantly reviewed
against a single bottom -line cost and schedule.
Therefore after implementation of SAP, the management of
DMRC make effective decision making due to
Easier access to information
Greater accuracy and timeliness of information
Comprehensive information available across functional
areas and locations
Improved communication and networking across the
organization
Improved networking and knowledge sharing within the
organization
Better utilization of system resources
Increase in productivity of people

4. In addition to above DMRC have other benefits, tangible and non
tangible both after implementaion of SAP
Tangible benefits
1. Reduction of Paper Work.
2. Provides greater and effective control on ACCOUNTS.
3. Availability of timely information.
4. Greater accuracy of information with detailed content,
better presentation.
5. Improved cost control
6. Faster response and follow ups to customers
7. Better monitoring and quicker resolution of queries
8. Enables quick response to change in business
operations and market consumption
9. Improves supply demand linkage with remote locations
and branches in different countries
Some Intangible Benefits: -

Improved customer satisfaction
Improved vendor performance
Increased flexibility
Reduced Quality Cost
Improved Resource Utility
Improved information accuracy