IFS initiates ERP implementation of year 2007 for NHPC

National Hydroelectric Power Corporation Ltd. (NHPC) kicked-off India's most ambitious ERP (Enterprise Resource Planning) Project titled Project Kiran today in association with IFS Solutions across all its project locations and Corporate Office. This is the first major ERP initiative in the Hydro Power sector in India and is also the largest ERP contract across any industry vertical in the year 2007 in the country, valued at Rs. 340 million and involves over 13,000 employee licenses and 2,200 transaction licenses of IFS' ERP solution. This large and complex ERP implementation exercise in the organization will be completed within a period of two years by IFS. The Project Kiran initiation ceremony was attended by senior officials and executives both from NHPC and IFS including the Chairman and Directors of NHPC. During the initiation ceremony, Fredrik von Hofe, Senior Vice President Business Development and Member of the Group Executive Management Team, IFS Global said "IFS has helped many leading energy players worldwide to achieve business benefits through implementation of IFS energy solution. We are honoured to work with NHPC to enable them use IT as an enabling technology to derive business benefits." NHPC aims to become a 20,000 MW company by the year 2017 and has a massive capacity addition plan on the anvil with an investment of around Rs.1,00,000 crores. Recognising that this massive task requires better management and coordination, NHPC took the strategic business initiative of implementing IFS ERP Software System. Chairman cum Managing Director of NHPC Mr. S.K.Garg said, "NHPC the largest Hydropower Utility of the central sector is aiming to become a 20,000MW capacity company by 2017. With this gigantic task in hand, NHPC is poised to consolidate its position as the largest single hydro power utility in the country. Such targets and challenges shall require organizational transformation and information technology is considered as an important enabling tool to achieve the same. The ERP initiative of NHPC has been befittingly christened as Project Kiran as its promises to usher in a new era of information management in the organization. We have selected

the ERP package of M/s IFS AB, Sweden through a detailed technical evaluation and commercial process. This package has been implemented successfully in number of hydro power projects across the world including Three Georges, China." With the IFS ERP implementation, a single database will be utilized by all in NHPC, individually and collectively to achieve its business goal. In order to effectively support ERP solution, a state of the art 'Data Centre' will also be developed. On-line business environment within the organization will enable timely and strategic decision making accessible from all the project locations which would help the hydropower major to become a power sector conglomerate. CEO of IFS India Dr. Chandan Chowdhury said, "Although IFS' ERP solution has been adopted by many leading energy players worldwide, this is the first major ERP initiative in the hydro power sector in India. With NHPC as a customer, IFS has strengthened its position in the Indian utility market. This gives us a solid platform from which we can further penetrate the fastgrowing Indian utilities market." During the initiation ceremony, welcome address was given by Mr. S.R.Roy, GM (IT & C). Dr. Chandan Chowdhury, CEO, IFS India talked about IFS and the organization structure drawn to implement IFS ERP solution at NHPC. Project Director from IFS Mr. Nitin Akhaury introduced the implementation road map of the ambitious project. Mr. Fredrik Vom Hofe, Vice President, IFS Global shared his experience and addressed issues related to successful ERP implementation. IFS Strategy for the Energy and Utility Market was shared by Mr. Borje Eriksson, IFS Global Industry Director. Mr. S.K.Dodeja, Director-Projects, NHPC shared the NHPC growth plan and ERP initiative. Key note address was given by Mr. S.K.Garg, CMD, NHPC. IFS won the ERP implementation contract from NHPC pursuant to a public bid process and an assessment based on technology and financial parameters over three other leading global and local technology companies. The agreement was signed at NHPC's Corporate Office at Faridabad by Shri M.K.Raina, Executive Director, Contracts (E&M) Division on behalf of NHPC and by Dr. Chandan Chowdhury, Chief Executive Officer on behalf of IFS India in the presence of senior officers from NHPC and IFS.

The ERP behind Tata Power's success

I received a couple of follow up questions on the topic of ERP and Companies Success, as well as a question regarding whether Best of breed is about to make a comeback, in particular inside the core ERP domain. So instead of getting deeper in talkback land, I figured to write about this interview which I came across while reading a magazine. This interview with E R Batliwala, CIO of Tata power gives a lot of incite on Tata powers success mantra with ERP application. I was also told that my posts are too long to read, so I will try to go shorter.

There is no doubt that ERP, which was a key differentiator for companies 10 years ago has become more context for some of the companies today, and for those who had bad implementations, even worse a costly commoditized set of processes (and if they picked a non-SAP product, a costly legacy set of processes). For the companies that know how to use ERP as a strategic asset there is no doubt that a great SAP implementation is a core component of their differentiation..

If you ask E R Batliwala, CIO of Tata power is one of the countrys largest private player in the power-sector, with an installed power generation capacity of above 2300 Mega Watts what was the secret sauce behind their success - and no doubt he will point out the speed of their execution on power generation, their scaling of production process, and the volume they generate are the great proof points to the amazing role ERP plays at Tata. By the way, Tatas implementation of SAP is one of the most inspiring uses of technology in the enterprise.

The fortune of many companies has changed with the implementation of ERP. But Tata's is a classic example of, how a successful and innovative company can derive immaculate results from the use of technology. This interview with E R Batliwala, CIO of Tata power, answers many question about the myths associated with ERP technology and tells the

reader on how Tata who was running behind in power sector suddenly emerge as a successful competitor and a major player. It also talks about the role of ERP, in getting the status of number one power supplier in the country and also about the.

The solutions used the challenges faced the benefits fetched and the future roadmap

The issue with best of breed is that like most products we buy in life, we can only sense the cost of acquisition, not the full life cycle cost. You pay for best of breed by moving away from buying software and into building systems. I believe that long term the market will always move away from building one off and into buying en-masse.