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Case Study

INDIA TECHS - THE WINNER OF INTERNATIONAL DEALER OF THE YEAR AWARD FOR JCB WORLDWIDE

Overview
LAKSHYA, a knowledge management application implemented by India Techs Ltd., India targeting the sales process, field service, refurbishments, transactions for earthmoving equipment parts, spares and consumables plus oil and financial information services using the internet to capture data and store information on a central server where it can be conveniently retrieved whenever and from wherever.

About India Techs
India Techs was started in 1976 to serve the equipment needs of the construction industry. Today it’s a multimillion dollar public limited company. India Techs is the largest distributor of JCB earthmoving equipments in India and also the largest parts seller internationally. India Techs sells 100 percent of its products and services directly to its customers. The principal inputs to India Tech's operations come from JCB India. India Tech’s business is built upon large assets such as dozers and excavators, spare parts, servicing and refurbishing. India Techs operates in a competitive industry populated by highly capable companies such as Caterpillar, Volvo, Hitachi and Komatsu.

Challenge
To make the enterprise skilled enough, smart enough and enduring enough to maneuver through a highly competitive environment without choking on the systems and procedures that help create that strength. To achieve a sustainable competitive advantage.To increase knowledge retention, enhance marketing capability, achieve higher cohesion and improve interaction based on uniform language between all users. To help make real time decisions, optimize resource utilization by utilizing it only at the right opportunity. To make available the expertise of the experienced personnel to overcome the exceptions and to make practical suggestions. To have reduced data redundancies and allow access to the same data source, detailed or summarized.

Implementation
The India Techs Lakshya Project was implemented in 2000. The implementation process involved educating the primary users: the sales persons, service staff, the technicians in the benefits that accrued to them and also showing them the direct stake they had in a successful implementation. Business processes were amended to enable tracking of the efficiency of the individual and to assess the value surplus created within the company.

Gain Factors
The breadth of the Management span increased to incorporate the entire operations and the analytics. The decision maker was able to communicate within the data environment of the company. Perception of fairness and even handedness of the management increased among the staff of the company/De-linked staff compensation from designations.The organization management structure was de-layered weeding out redundant layers. Created an open ended earning pattern by linking earnings directly based on the value addition to the company. Enabled the capacity to create cross functional teams without any delays. Eg. To conduct service, parts and sales campaigns. Growth based on seeded disruptions and controlled distortions. Provided a uniformly structured knowledge base for quicker education. Ensured that staff needed to retain the relationship with the company rather than the reverse Stopped subsidization of inefficient operations and processes. Removed the fear of communicating with the top management. Avoided communication distortion by providing a structured format and enabling transparent communication among various stake holders in the company. Rid the company of bureaucracy and barriers to information and inefficient processes Ensured the growth of the individual was directly linked to the growth of the company. Improved the quality of information by directly co-relating it to the remuneration. This reducing redundancies and inaccuracies.

The Results
The sales of India Techs multiplied five fold both in terms of numbers sold and value compared to 2001. Further, the number of machines under an annual maintenance contract with the company has gone up 300% enabling a similar increase in the value of spares and oil sold. At present India Techs has a market share of 75% within its territory of operation.


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