CASE 1

New systems help Fiat become a global powerhouse

Turin, Italy-based Fiat Group Automobiles S.p.A was one of the founders of the European car
industry, and is one of the world's leading auto makers. As a result of its partnership with
Chrysler, it has the brands and manufacturing capabilities to compete as a global automaker.
Worldwide, Fiat manages 215,000 employees, 158 plants, and 77 R&D centers, with 2013
revenues approaching 90 billion.

Fiat now sells Jeep in Europe and the Fiat 500 in the U.S.A. Management sees even stronger
global growth and is working to develop Jeep products for international markets while
maintaining a strong global presence in markets for light commercial vehicles and Fiat passenger
cars.

As the company expanded globally and added operations and brands, management needed more
capabilities for managing the company from a worldwide perspective. These included the ability
to easily cross-analyze data among countries, channels, and products and to drill down into
variables such as model, power train, and vehicle equipment. Fiat's managers needed to be able
to conduct planning and analysis within each region, brand, and legal entity, and senior
management wanted to be able to monitor the business with up-to-the-minute information.

Until recently, this was extremely difficult or nearly impossible. Management had to reconcile
information from more than one outdated legacy system and run multiple queries to determine
the impact of exchanging products between Fiats various companies. There was a lack of data
consistency between regions and brands.

The solution was to develop new Information systems that could provide enterprise-wide data for
management reporting and analysis. Working with Techedge SPA consultants, fiats information
and communication technology team Implemented a new group reporting platform based on
Oracle Hyperion enterprise performance management and business intelligence software. Fiat
now uses Oracle Hyperion financial Management software to draw data from a third party ERP
system and Microsoft Excel spreadsheets to provide users with pre-aggregated data across
countries, legal entities and business functions.

For example, Fiat's finance managers use the system to track profit margins by brand, generate
balance sheets, and monitor cash flow across the entire Fiat Group organization. Regional reports
break down the data by brand and geographical local ion to provide management with more
precise information about pricing, profit and loss, and dealer incentives. Controllers use the
reports to analyze sales activity among dealers as well as fleet, rental car, and government sales
channels. The new system delivers information on operational performance, especially all the
variables related to new and used cars, plant productions, and after-sales service. The enterprise
wide system allows Fiat managers to analyze the profitability of every type of car sold in each
country.

Fiat further enhanced the system to allow managers to perform what if analyses by linking
Oracle Business Intelligence Enterprise Edition to the Oracle Hyperion Financial Management
and Planning applications. This information is displayed through dashboards and parameterized
reports, and it provides a more detailed view of profitability. About 50 senior finance
professionals now use this system, from regional controllers to the highest officers in the
company. Before this system was implemented, it took Fiat several hours running queries just to
extract the data.

Today more than 1,500 people in more than 70 business units across Fiat worldwide use the
Oracle Hyperion systems for management reporting. Employees can drill down into financial
results to analyze profit margins or cash flow at a more minute level, viewing the data in
dashboards or exporting the data to Excel spreadsheets for further analysis. Senior management
has immediate access to data for strategic planning, forecasting, and budgeting, while marketing
and sales department analysts are able to track the effectiveness of promotions and campaigns.
With a single common environment for determining pricing, profit and loss, and incentives, Fiat
Group is able to engage in planning activities such as product simulation and sales price
optimization based on factors such as time, product and market. Data can be sorted by model and
region to obtain consistent answers from anywhere in the world.

CASE 2
Ecommerce Russian-style

Nearly 63,6 million Russians have Internet access, making Russia the second-largest e-commerce market in all of
Europe, behind only Germany.
By the end of 2014, Russia will surpass Germany with an estimated 80 million users. Broadband reach is estimated
at 40 percent of all households around 20 million households. Still, only a scant 24 to 26 millionabout 38 percent
to 40 percent of Internet usershave made an online purchase through 2013 and e-commerce accounts for only 2
percent of Russian retail sales. Why? Whats holding e-commerce back?
Russia has expanded its online consumer base faster than any other country, hut there are serious harriers to
further growth. Russia lacks both logistics infrastructures and online payment systems for e-commerce to flourish.
The postal system is both expensive and unreliable, with lost or stolen packages, excessive delivery time, and non-
distributed parcel rates of up to 100 percent in remote areas. Cash is the predominant payment method due to an
under-developed financial services sector, exorbitant bank charges, and lack of consumer trust in electronic payments.
Pre-authorization is often required for card use, merchants lack the infrastructure to store card data, and fraud poses
a significant threat to merchants. Combined with the prohibitively expensive investment required to deploy fiber
connections across the vast expanses of Russian terrain, the impediments to e-commerce expansion are substantial.
Russian online consumers by and large pay cash-on-delivery (COD) at pick-up stores" where they collect their
purchases. The collection centers accumulate large quantities of cash, which must be deposited every few hours to
reduce the risk of theft. A system of payment kiosks has also sprung up on street corners, and in grocery stores, small
shops, and convenience stores. These kiosks also, serve as bill payment centers and often include multiple terminals
from different companies, fashioning a comprehensive payment island. Several online payment systems have been
developed including Yandex Money and WebMoney. These e-wallets, often subject to daily transaction limits, are
linked to domestic bank accounts or debit cards or loaded with funds at the kiosks or offline stores. Though Yandex
Money has signed up 20,000 merchants and 14 million consumers, and WebMoney 2,200 merchants and 6 million
users, 80 percent of all B2G e^commerce in Russia is still conducted in cash.
Russian e-commerce is developing, but at a slower pace than Western markets. Half of habitual! e-commerce
consumers only began shopping online in the last two years. Card and online payment systems are gaining acceptance
for digital goods (software, e-books, and digital music) and travel purchases such as airline tickets and hotel
reservations. Shoppers have entered the online sphere for these products as well as for books, and J are expanding to
electronics, computers, and home] appliances, and then jewelry, cosmetics, clothing, and shoes.
Online shopping mall Ozon began in 1998 as an online bookstore but now stocks well over 2 million items. Ozon
adopted a multi-pronged strategy to combat Russia's market challenges.
In the short-term, it accepted customer preference for COD in order to build trust, expand its customer base, and
establish market position. Its delivery service (OCourier) and 2,100 pick-up centers serve 350 cities throughout Russia
and Kazakhstan. This logistics network dwarfs those of its competitors.
Another domestic leader, KupiVIP, has also succeeded largely because it built its own logistics network including
multiple warehouses and a fleet of delivery trucks. Centered on its original] high-fashion flash sales site, KupiVIP
(kupi means] buy in Russian) now includes nine white-label sites and ShopTime, a full-priced fashion site. KupiVIP's
delivery drivers to double as customen service reps. In addition to collecting COD payments and merchandise for
return, they will even] wait at the door while customers try on merchandise to decide if they want to keep it.
The unexpected leader of Russian e-commerce, however, is hybrid online-offline retailer Ulmart, which recently
became the first Russian e-tailer to surpass $1 billion (USD) in sales. Founded in August 2008 to sell computers online,
it quickly expanded into home electronics, household appliances children's goods, auto parts, and tires. Ulmart
complements its online selling with 32 Kibermarketselectronics superstores open 24 hours a dayas well as around
140 pick-up outposts in 150 cities across Russia. Five hubs supply the fulfillment centers, and a fleet of nearly 200
trucks transports merchandise from the warehouses to the outposts and makes home deliveries. Floor space that
would traditionally be taken up with row after row of product is instead used for computer terminals and giant state-
of-the-art touch screens that serve as virtual display cases. Customers browse and choose products from a virtual
catalog, use cash, credit cards, or Yandex Money at a payment zone terminal, and proceed to a comfy waiting zone
accoutered with couches and tables for a 15-minute or less wait for their purchases. Ulmart is also at the forefront of
Russian m-commerce, building a new Web site for smartphones, even while continuing to support 24-hour call centers.
Ulmart's conspicuous vulnerability is its neglect of the nearly 88 percent of Russia's landmass that lies beyond the
reach of its logistics network. 7b
reach these customers, Ulntart must rely on the government-owned Russian
Post. Pochta Rossii, still struggles to transport goods between Ulmart's St.
Petersburg headquarters and Moscow (400 miles) in less than two weeks, let
akme service Novosibirsk, Russias third most populous city and most
populous in Asian Russia, nearly 1,750 miles away.
Russian e-commerce is dominated by a handful of these large companies. Most medium and small domestic
retailers have yet to establish an Internet presence. EBay has launched a Russian language site and Amazon is in the
process of building one, but their presence is overshadowed by Russian firms, which control 90 percent of the market.
Questions:
1. Describe the technical and organizational obstacles to e-commerce growth in Russia.
2. How do these technical and organizational factors hamper companies from doing business
in Russia or setting up Russian e-commerce sites?
3. Will non-Russian companies like Amazon.com and eBay flourish in Russia? Explain.
 Case 3:
One organization, one data, one interpretation: ONGCs global system

Oil and Natural Gas Corporation (ONGC) is one of Indias most valuable companies, with a market capitalization
of ?2,32,000 crore. ONGC owns and operates more than 11,000 kilometers of gas pipelines in India. Realizing the
importance of IT in managing its operations, ONGC embarked on a project called Information Consolidation for
Efficiency in the year 2000, with an aim of creating an overarching set-up of "one organization, one data, one
information The target of the project was to achieve global standards in operations and introduce new business
processes.
Oil exploration firms collect extensive data, which can be difficult to manage. A lot of the business decisions of such
firms depend upon the results of this data. In order to ensure that its managers get an uninhibited view of all the
collected information, ONGC chose to leverage state-of-the-art technologies like the supervisory control and data
acquisition (SCADA), SAP Enterprise Resource Planning (ERP), and Exposure Prevention Information Network
(EPINet) to further its goals. It was believed that these applications would make valuable information available on a
real-time basis across the globe and eliminate the problem of data duplicity.
EPINet is a Web-enabled data management system for geophysical as well as exploration and planning data. It
provides multiple users, even those who work remotely, simultaneous access to all the assets, logs, drilling data related
to exploration and planning, and so on. As a result, the managers at ONGC are now able to take speedy technical and
business decisions.
Till the 1990s, all of the firm's exploration and planning data were stored in non-electronic physical forms like
tapes and films. Moreover, these were held in different locations around the world with very little centralized access.
In order to obtain the older data, manual indexing was done, which often led to the data being inaccurate or difficult
to find The information from oil well surveys was stored digitally, but since there was no corn men data store, each
team saved it according to its individual preferences. This resulted in multiply j versions of unedited data The legacy
system th f j ONGC used for material management, project monitoring, and maintenance planning often madJ access
to data difficult, Managers weren't sure where to start looking for a piece of information that they needed to make
important business decisions. Once the data was located, its collation consolidation, and analysis proved to be difficult
I and time consuming. EPINet was judged to be a solution to all these challenges.
EPINet now manages both legacy and current daa for the company. The outcome was an integrated ] exploration
and planning database with single, vali* I dated exploration and planning database throughout! ONGC. EPINet also
handles the analysis and inter- ] pretation of the data, while the Web-based reporting I feature allows all the current
data on exploration anefl planning to flow directly into EPINet for centralized I access. Moreover, this software is
compliant with industry standards and best practices.
The firm's operations are global in nature and this calls for an IT solution that streamlines its business processes
and integrates all the informa- I tion along business fines. ONGC, with the help of 9| the SAP ERP, went on to
standardize more than 100 !| of its business processes for 13,000 users across all 1 locations in less than 30 months'
time. The SAP R/3 ERP was implemented for the finance and HR I activities. This led to the automation of several
tasks! related to payroll and administration. This ERP was l| then tested at oil-drilling platforms, which required
that daily processes be run at specific times.
ONGC undertook another initiative to manage its global operations, this time with the help of the 9 global
automation company, ABB Limited. ONGC II rolled out the enterprise-wide SCADA system to manage its onshore
and offshore assets. This enabled company officials to collect information about the II business processes running at
various locations. This solution was integrated with the EPINet software and the SAP ERP for a seamless experience.
Questions:
1. What challenges faced by ONGC led to its adoption of EPINet?
2. Discuss the features of EPINet as a global IT solution.
3. Discuss how SCADA aids ONGC in managing its on-site and offshore assets.
4. How did the SAP ERP streamline the global business processes for the firm?

Case 4 :
Unilever

Palm oil was the driving force behind the ;; Lr merger that created what ss today the third largest
consumer goods company ox the world behind Proctor Gamble and ISestM What may have seemed an odd marriage
feet ween British soap maker, Lever Brothers, and Dutch margarine producer. Margarine Unte, prodded new
company* Unilever unprecedented pur* tbasing power for the primary taw material of both products. Tbdav Unilever
focuses on 14 brands, each netting more than 1 billion annually including laundry soap Surf (Omo), soap, shower gel.
shampoo and conditioner brands Lux, Dove* and Sunsilk, and deodorant and personal care brands Axe (Lynx) and
Rexona, also sold as Sure, Degree, Shield, and Rexena. On the edible side top sellers include ice cream brands
Magnum and Heartbrand, margarine brands Becel (Flora Promise Fruit d'Or) and Rama, mayonnaise brands
HelLmanris and Best foods, and soup, seasonings* and tea brands Upton and Knom All told* the Angio-Dutch
multinational boasts over 400 brands* sells its products in over 190 countries, and employs more than 175, 000 people
worldwide
Unilever is organized as two separate holding companies: Unilever PLC (public limited company), headquartered
in London* United Kingdom, and Unilever N.V., headquartered in Rotterdam,
The Netherlands. The two legal divisions operate as nearly as possible to a single economic entity The Unilever
Groupwith unity of management, operations, purpose, and mission.
Since 2009, when Dutchman Paul Polman took the reins as CEO, The Unilever Group has made sustainable living
the core goal of its business model. Using the inputs common to all major packaged goods manufacturersbrands,
people, and operationsUnilever's Compass strategy focuses on using cost leveraging'and cost efficiencies, innovation
in marketing and marketing investment, and profitable volume growth to yield sustained growth, lowered
environmental impact, and positive social impact.
By 2010 a ID year pLm qKand&d me gpafcr m double sales trots ~0. billion. to 8$ tialmr
its en vbirtjrtwwrw footprint, reach 4 fyB&ran of the worlds estimated 9 2090 otsEesEs, feeing
 safe drmkmg waser to 500 ina&rai peoctt. source 100 percent of its raw materials sustainafetv iitd improve the lives
of 500,000 mall taxmexs. and distributors by bringing them mto its supply Given the teahty of climate change and
tke growth scarcity of water and other natural resources*. Polman believes viable business models for the Use century
must include strategies for maximizing social and environmental returns along with profits and investor returns.
In order to grow its business in developing and emerging markets, Unilever needed to unify its core business
processes, including supply chain management- Standardized processes were essential to effectively manage volatile
prices and changing commodity supplies. However ambitious company-wide goal setting such as this was not feasible
prior to 2007. At that point almost every business in each of the more than 190 countries in which Unilever operated
functioned as an independent division. Approximately 30,000 transactions per minute, including every order
received, invoice issued* material produced, and product shipped were processed through 250 different enterprise
resource planning (ERF) systems.
Unilevers Global ERF Vice President Marc Bechet has pointed out that the company's worldwide business runs on
ERP systems. Every transaction for each order it receives, material it produces, item it ships, and invoice it issues runs
through Unilever's backbone ERP systems. Trying to run a global business that was doubling its transaction volume
with 250 systems proved too challenging.
Instead of adding layers of IT infrastructure to prepare for rapid business growth, Unilever's globalization strategy
involved the exact opposite action. For the past two decades, Unilever has been consolidating and simplifying its
technology