Ashok Leyland plans to invest Rs 80 crore to scale up its IT infrastructure requirements in the next 2-3 years. The aim is to use IT as a key differentiator in its business strategy. |
At present, the company is evaluating whether the requirements sourced to an external vendor or use one of its parent Hinduja group's in-house departments to service the requirements. |
"The investment will be made to enhance computer-aided design (CAD) in product development, predictive engineering (analysis of data) and virtual product development capabilities," said N Mohankrishnan, special director - information management services, Ashok Leyland. The company has already invested Rs 80 crore in the past 2-3 years. |
CAD uses computers in the design process while predictive analysis is used to capture data and mine it to provide insights to the business. |
The application of virtual product development will not only help the company reduce the number of prototypes that the company builds before launching a product but will also reduce the cost of building expensive prototypes by using product simulations. |
Among its key IT initiatives is a dealer management system that the company plans to unveil with a pilot involving 10 dealers in September 2005. |
Ashok Leyland expects the pilot to cover half of its dealerships by the year-end and the entire dealer network in the next 14-15 months. |
Their channel network includes 50 main dealerships, 20 spare parts distributors, 150 highyway repair centres and 50 engine service dealers. |
Other ongoing IT programmes include customer initiatives, dealer management system product lifecycle management, alternate business continuity centre, enhancement of knowledge management and enhancement to business intelligence. |
It received the BS 7799 certification for its information security management system last week. |
Ashok Leyland's emphasis on IT began sometime in mid-2000 after an internal process restructuring initiated by AT Kearney. |
The IT initiatives since include an end-to-end enterprise resource planning solution, data centre, independent infrastructure for software testing and quality control, connectivity between 75 facilities and a few key software business solutions. |