HCL an Information System Vendor & Project Management Methods Used in Large Scale IT system

Prepared for Prepared by Date Group Members : : : : Dr. Radhakrishna Pillai, I.I.M. Kozhikode. Section A, Group 10 15th February 2012 Balakrishnan V PGP/16/010

Bharat Subramony PGP/16/012 Debolin Dey Priyanka Sidharth Shuchi Garg PGP/16/015 PGP/16/038 PGP/16/047

HCL A Brief History

Shiv Nadar founded HCL with some of his fellow engineers in 1976, in a short span of time after the Indian government passed the law discouraging MNCs from doing business in India. Post IBMs departure from India, HCL, and a few other firms, received government approval to enter the hardware market. HCL was born in Nadars garage, and with its sophisticated R&D capabilities, it was quick to take the lead. So as to attract the right talent, HCL recruited at Indias top engineering and business schools, with a pay package superior to Citibanks at the time. Shiv Nadar, was a true visionary, behind bringing computers in India. Only Apple computers were sold in India at that time. He was the first to believe that computers could be manufactured in India. In 1985, Vineet, a 23-year old engineer with an MBA from XLRI, Jamshedpur joined HCL as a Senior Management Trainee in the marketing function. Most Indian companies were not computerized and HCL was ahead of the curve. After commissioning a McKinsey study, it was confirmed that HCL was ahead of its market, therefore HCL decided to go global. Thus, in the early 1990s, HCL entered a joint venture with Hewlett Packard.

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. 3

Vineet Nayar new 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 nearly tripled 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 outsourcer a 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 top performers 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%.

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.

Norfolk Southern IT 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.

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.

BRITVIC IT 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.

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.

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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References
1. Hill, Linda A., Khanna, Tarun, Stecker, Emily (2007), HCL Technologies, Harvard Business Review, N9-408-004. 2. Hammond Jeffrey S., HCL Technologies puts Employees First Customers Second, Forrester. 3. http://www.hcltech.com/press-releases/enterprise-application-services/hcl-axonaccomplishes-large-scale-implementation-sap-solutions 4. http://www.hcltech.com/enterprise-application-services/oil-and-gas

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