2. Steel Industry at a glance:
• In 2011 the world crude steel production reached 1518 million
tonnes (mt) and showed a growth of 6.2% over 2010. (Source: World
Steel Association or WSA)
• China remained the world’s largest crude steel producer in 2011
(684 mt) followed by Japan (108 mt), the USA (86.4 mt) and India
(72.2 mt; prov) at the 4th position (72.2 mt).
• The WSA has projected that global apparent steel use will increase
by 3.6% to 1422 Mt in 2012, following growth of 5.6% in 2011. In
2013, it is forecast that world steel demand will grow further by
4.5% to around 1486 Mt. China’s apparent steel use in 2012 and
2013 is expected to increase by 4% in both the years. For India,
growth in apparent steel use is expected to grow by 6.9% in 2012
and by 9.4% in 2013.
• Per capita finished steel consumption in 2011 is estimated at 215 kg
for world and 460 kg for China. (Source: Ministry of Steel, Government of India)
3. Indian Steel scenario:
• The Indian steel industry has entered into a new development stage from 2007-08,
riding high on the resurgent economy and rising demand for steel.
• Rapid rise in production has resulted in India becoming the 4 th largest producer of
crude steel and the largest producer of sponge iron or DRI in the world.
• As per the 12th year plan, an estimated infrastructure investment of nearly a trillion
dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in
urban population to 600 million by 2030 from the current level of 400 million,
emergence of the rural market for steel currently consuming around 10 kg per annum
buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv
Gandhi Awaas Yojana among others.
Tata Steel Scenario:
• One of the world’s largest steel maker.
• Annual turnover of US$ 26.13 billion in FY 2011-12, has over 81,000 employees across
five continents and is a fortune 500 company.
• Geographically diversified production facilities include India, the UK, the Netherlands,
Thailand, Singapore and China.
4. Gap in the Architecture:
Present Scenario:
• Tata steel already has presence in the social media like
Facebook, Linked in, Twitter, Youtube, etc…
• The company uses social media from recruitment to
customer interaction including complaints to promoting
its CSR activites and environmental awareness initiatives.
• The company was the first to implement SAP (ERP)
software for bringing its operations in IT to improve the
functionality.
• The company was the first company to move from SAP to
Enterprise Version 4.7 to provide SAP over internet,
which can be accessible from anywhere in the world
provided with strong security mechanism.
5. Gap in the architecture (contd.)
What needs to be done:
TATA steel being a globally dispersed company needs to
bring in the ERP, Planning and Budgeting, Human Capital
Management, Talent Management Pool, Sales and
Marketing, Customer Service and Support, Social
Engagement and Monitoring and Social Marketing all
under one platform completely integrated for better
productivity, reduced costs, customizability, security and
reliability.
7. Advantages of Cloud Computing:
• A good Cloud service provider offers a broad portfolio of software as
a service applications, platform as a service, and social capabilities,
all on a subscription basis. Hence less wastage of resources thereby
reduced cost.
• Cloud delivers instant value and productivity for end users,
administrators, and developers alike through functionally rich,
integrated, secure, enterprise cloud services.
What cloud offers for commodity industry like TATA Steel:
• Enterprise Resource Planning
• Planning and Budgeting
• Human Capital Management
• Talent Management
• Sales and Marketing
• Customer Service and Support
8. Oracle Cloud Service Provider:
• Oracle ERP Cloud Service : The Oracle ERP Cloud Service is an integrated
suite that transforms back office into a collaborative, efficient, and intuitive
hub. A rich set of financial and operational capabilities is married with the
latest in social, mobile, and analytic technologies. Your information is
protected on a platform you can trust - for complete confidence in the
cloud.
• Oracle Planning and Budgeting Cloud Service: Oracle's market-leading
Enterprise Performance Management applications enable TATA Steel to
achieve Business Excellence by integrating strategy, planning, and execution
across management and operational systems. Oracle's performance
management applications are a modular suite of integrated applications
that integrate with both Oracle and non-Oracle transactional systems and
feature common Web and Microsoft Office interfaces, common reporting
tools, mobile information delivery, and common administration.
9. Oracle Cloud Service Provider:
(contd.)
• Fusion Human Capital Management: Oracle's Fusion Human Capital
Management enables TATA steel to architect a global foundation for HR data and
improved business processes. Fusion HCM delivers a robust set of best-in-class human
resources functionality that enables TATA Steel to increase productivity, accelerate
business performance, and lower your cost of ownership.
• Oracle Taleo Cloud Service: The Oracle Taleo Cloud Service enables TATA
steel to recruit top talent, align that talent to key goals, manage performance,
develop and compensate top performers, and turn today's best performers into
tomorrow's leaders.
• Oracle Social Engagement & Monitoring Cloud Service: Oracle
Social Engagement & Monitoring Cloud Service provides listening, engagement and
analysis capabilities across social channels to help you understand your customers
and act.
• Oracle Social Marketing Cloud Service: Oracle Social Marketing Cloud
Service easily enables TATA steel and agencies to publish social content, engage fans,
and customize your brand's character.
12. Benefits
• Integration of computing, network and storage in
ondemand cloud perform to deliver IT services.
• Provides enhanced routing, switching and security
technologies that with UDC.
• Unlocks the power of collaboration with your suppliers and
channels.
• Effective and easy communication between employees.
14. Cost Estimates
• Cost related to in-house support team for the
maintenance of the features offered by the
service provider.
• Cost related to procurement of the service from
a reliable service provider.
• There are various solutions offered in cloud at a
nominal cost all these have to be evaluated
before using them for the internal and external
operations of TATA steel as only some might be
relevant to our present business.