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IT Adoption in Auto Component Manufacturing Cluster

IT Adoption in Auto Component Manufacturing Cluster. NASSCOM is focusing on increasing IT penetration in the micro and SMB business segment in India as part of its domestic IT market initiatives. The auto component manufacturing cluster has been identified as one of the initial target clusters.

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IT Adoption in Auto Component Manufacturing Cluster

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  1. IT Adoption in Auto Component Manufacturing Cluster

  2. NASSCOM is focusing on increasing IT penetration in the micro and SMB business segment in India as part of its domestic IT market initiatives. The auto component manufacturing cluster has been identified as one of the initial target clusters. The following slides contain data that gives key insights on: • The key business process critical to a firm’ competitiveness • An understanding of the IT adoption in these business processes • Business user expectations from IT deployment The key drivers to the adoption of IT in auto component manufacturers is the need to have better inventory control, better business process flow & competitive pressure.

  3. Role of IT in Auto Component Manufacturing Expected Outcomes Business Challenges Increase efficiency Cost Raw Material Procurement Price Competitiveness Increase competitiveness Scale Timelines Need to implement effective IT Increased Value Raw Material Cost Product Quality Integrate & streamline processes Scope Access to Business Info Meet customer demands Quality Meet customer demands Time

  4. What are the key challenges for BU heads? Ch2.1 . Key business challenges (India – BU) Signifies most critical challenges for the Business Unit heads according to the rank 1 scores

  5. What are BU Head expectations from the IT Deployment? Ch2.2 . Key expectations from IT (India –BU) Fig are % Base : 88 BU heads BU heads expect IT to provide solutions for – • Meeting customer requirements for product quality • Tracking production costs • Access to critical business information (One of the key challenges in qualitative phase)

  6. Critical Business Processes Ch5.1 . Critical Business Processes (India – All) Key business processes Fig are actual numbers Base : 148 All respondents

  7. Critical Business ProcessesBy Large/ Medium/ Small firms Ch5.2 . Critical Business Processes (India – L,M,S) Large (16) Medium (86) Small (46) Base : 148 All respondents Most Critical Least Critical More or less similar trend noticed for critical business processes identified across large, medium & small companies

  8. To what extent are critical business processes IT enabled? Ch5.4 . IT Enabled Critical Business Processes (India – IT) Order Receipt and Demand Management Order Processing Base : 60 (IT Heads)

  9. To what extent are critical business processes IT enabled? Ch5.5 . IT Enabled Critical Business Processes (India – IT) Production Planning & Scheduling Material Scheduling Base : 60 (IT Heads)

  10. To what extent are critical business processes IT enabled? Ch5.6 . IT Enabled Critical Business Processes (India – IT) Accounting Base : 60 (IT Heads)

  11. Current Implemented Applications/Systems- 2003 Auto Ancillary Sector (India – All) Signifies the most implemented applications & systems Fig are % Base :148 All respondents

  12. Implemented Enterprise Application SystemsBy Large, Medium & Small Ch6.2 . Implemented Enterprise Applications (India – All, L,M,S) Fig are % Base :148 All respondents

  13. Annual IT budget 2005-06 Ch8.1 . Annual IT Budget Allocation (India – IT) 2005-06 IT Budget Base : 60 IT heads A significant proportion (90%) are planning to increase IT budget next year All figs are in %

  14. Full-time employees handling IT service & support Ch9.1 . IT Employee Strength (India – IT) Fig are % Base : 60 (IT heads) • In a majority of auto component manufacturing companies, less than 10 full time employees take care of the IT service & support function, across all locations. Note: The Numbers indicate total number of full time employees across all locations

  15. Current IT infrastructure Ch9.2 . IT Infrastructure (India – IT) Total no. of servers owned No. of computers and workstations Number of nodes connected to the LAN across locations Base : 60 (IT heads) Fig are %

  16. The task at hand….. • You need to design an IT infrastructure portfolio focusing on key areas emerging from the case. • The solution needs to discuss: • The application portfolio • The budget requirements • The manpower and other infrastructure requirements • The expected improvements in efficiency as against the existing IT applications • The current IT implementations as well as the existing IT budget and infrastructure deployed need to be considered while providing a solution.

  17. Finance Finance

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