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Tata Motors gears up with CRM

India’s largest integrated automaker has real-time customer and product data thanks to its CRM rollout, finds Shivani Shinde.

Tata Motors needed a standardised application for its 1,200 dealers and their 10,000 users across the country. It also needed to integrate the new applications with an existing SAP ERP system. The goal was to ensure stronger dealer relationships, improve operational efficiency and provide a better customer experience.

Getting the right systems

The company was looking for real-time availability of customer and product data from its entire dealer network, faster response to customer requests, increased productivity and revenue generation, and a system that would give it a 360-degree view of customers across all possible touch points.

The rollout for phase one of the project was completed by March 2005. It is interesting to note that although the rollout started recently, the deployment was conceptualised and work had begun a few years back. “The project was conceived five years back. There was work to be done at the back end, and physical and customer support processes. They were put in place within two to three years. We started in 2000 with the technology part being executed in mid-2003,” says K R Sreenivasan, Head of CRM and DMS Project, Tata Motors.

Although the first phase of the project has just been completed, Sreenivasan believes that they have already started reaping the benefits. For instance, he says, “Some of our dealers are very large. For example, there are two dealers in Mumbai; one dealing in commercial vehicles, and the other, passenger cars. Both have a business of at least Rs 1,000 crore. Both have, at any given time, at least 400 to 500 cars in stock. Since they can access their stock online, they can fill in any shortfall within a day.”

The implementation began in a phased manner. With over 250 dealers already using the application, the first part also included the discovery, design, development and testing of the technology. This was completed by March 2005, and the rollout commenced in April 2005.

The reason for the phased development has been the size of the application. Explains Sreenivasan, “We are taking a dealer-by-dealer approach. Each dealer is trained on the systems and requirements. Then, we help them move from their existing applications to new systems.”

So, when are they going live? “It’s not possible to put a benchmark date for going live. At each location, we need to spend about 10 to 12 days with at least four to five people to train the dealers. It’s a huge project,” he says.

The right partner

A major concern was to find the right application partner. “We felt that Siebel was one of the best automotive CRM applications. Moreover, inter-operability with the existing ERP system was a key requisite. It was important for us to have applications that would talk to the existing SAP system,” Sreenivasan remarks. Tata Motors was using the SAP ERP module, and it was extremely important that front-end solutions easily integrated with the ERP system. Siebel’s proven SAP connector was a key factor in helping Tata Motors pick it.

Sreenivasan explains, “Fortunately, most of the dealers already have some standard systems. For instance, processes such as operations and documentation were the same. However, each had a system either as a package or as an application developed in-house. Now, with Siebel, we are all working on one application.”

There’s no doubt that Tata Motors found the going easier as many of its dealers already had some systems in place.

Bypassing roadblocks

We felt that Siebel was one of the best automotive CRM applications. Moreover, inter-operability with the existing ERP system was a requisite K R Sreenivasan Head of CRM & DMS Project Tata Motors

Despite all this, there were roadblocks. The magnitude of the project and the nature of the application, logistics and user adaptability were all concerns. “Nobody has used Siebel’s CRM solution as a transaction application. It’s like a dealer management system that allows dealer transaction with customers, and generates backups on the same system. The need to move onto a common platform was to get real-time data on the customer. Otherwise the dealer would have to transfer the data to us which leads to duplication,” Sreenivasan explains.

In terms of logistics, Tata Motors has service centres across the country at places such as Arunachal Pradesh, Kutch, Srinagar, Leh, Kanyakumari and the Andamans. Many of these service stations are in remote locations and are connected to the central location in Mumbai. The logistics of rolling out the application to them was a huge challenge.

However, for a successful system, they had to get their connectivity in place. Tata Motors links its 1,600 customer touchpoints with its centralised data centre in Mumbai using a combination of VSATs, high-speed VPNs and at some places even dial-up connectivity.

The next hurdle was training and change management. “We have about 10,000 users with different skill sets and knowledge. Some are skilled but not computer literate, while others are highly tech-savvy. Imparting training to such a spectrum of users was a big challenge,” says Sreenivasan.

Dealer network

Tata Motors also liked the fact that Siebel Automotive provides multi-organisation support, can be deployed easily over the Internet and provides robust partner management capabilities—ideal for the company with its far-flung dealer network.

A decision was taken to get business managers involved to the extent possible. Sreenivasan says that IT is a tool for enhancing business. The core team that leads applications development comprises people from sales and marketing.

With just the first phase implemented, some immediate benefits have accrued in the form of improved demand forecasting, planning, logistics and inventory management. As the dealers, customers and officials at Tata Motors have a 360-degree view of customer and vehicle information and a streamlined workflow, they can enhance customer service and improve efficiency. Other notable benefits are enhanced product quality and increase in revenue from both vehicle sales and after-sales parts business.

Two additional phases are planned. Phase two would focus on leveraging data to improve customer interactions and streamline product development and planning. The third phase will look at delivering additional value-added services to customers.

shivani@expresscomputeronline.com