It is used from the product concept and design stage right up to after sales and CRM, says S. Sandilya, Chairman of the Eicher Group

The Information Technology (IT) is the key to enhancing productivity and competitiveness in the automotive industry, according to S. Sandilya, Chairman of the Eicher Group. IT is critical - from womb to tomb - stages of automobile manufacturing, he said at a seminar on 'Leveraging IT for Excellence in Automotive Manufacturing,' organized by the Confederation of Indian Industry (CII) on Wednesday.

IT is very closely integrated in the automotive sector. It is used from the product concept and design stage to supply chain management, controlling manufacturing, maintenance, after sales and CRM, Sandilya said. IT has been used for many years to improve quality and productivity.

India has emerged as an IT powerhouse and the automotive industry can learn a great deal from it, Sandilya said. IT could set an example for the automotive sector on globalisation and human resources development. IT already accounted for a significant part of the cost of an automobile and this would only increase in future.

IT can help the automotive industry reduce costs and build brand awareness. "IT plays a critical role in integrating supply chains for the automotive sector, it is critical to enhancing value addition and competitiveness of this sector," said Phiroz Vandrevala, Executive Vice-President, Tata Consultancy Services (TCS). IT can help raise driver and passenger safety as well, he added.

IT is no longer the preserve of the large companies, said Ganesh Natarajan, Deputy Managing Director, Zensar Technologies Ltd. An increasing number of small and medium enterprises are using IT to enhance their productivity. "We should exploit the telecom revolution to make IT services available to more SMEs. IT innovations are central to excellence in the Indian auto sector," he added.

SMEs can use IT in sales and prospect funnels and improve business processes. However, standalone IT solutions are costly and therefore, solution-hosted applications are an answer for SMEs. These combine the power of IT enablement with the use of the internet and provide solutions on a shared-investment on a software as a service with pay-per-use model, Natarajan said.

Large companies like Maruti use IT extensively in their operations, said Rajesh Uppal, Chief General Manager (IT) and CIO, Maruti. It helps synchronise demand and supply as well as business and knowledge management, he added. Maruti is planning to double its output to 1.2mn units by 2010 by commissioning a new plant in Manesar, Haryana. The company will use IT to improve planning systems, supplier collaboration, customer relationships and logistics management, he said.

India is keen to position itself as a global hub for manufacturing automobiles and auto components, but is facing stiff competition from Turkey, Poland, China, Thailand and Mexico, Shantanu Rai, PLM Practice Lead - India spokesperson, at IBM said . IT can help it to gain an edge over these countries.

A study of CEOs indicated that innovation on products and services was critical. It was also necessary to look at different business models to reduce capital costs. Technical solutions were needed to develop new products and market. "The primary focus is on innovation," he said.

Other business drivers for the automotive industry were increasing consumer demand and an expanding regulatory environment, said Prasad V. Medury, Managing Director, Silicon Graphics Systems India. The sector is a benchmark for many industrial trends including simulation, development and technological migration.

Vikram Tiwathia, Chief Information Officer, CII said that a CII - Access Media International study on Information Risk Management in manufacturing indicated that 32% of companies surveyed agreed that information security is strategic to their business interests. He also said that CII is concentrating on enhancing the domestic consumption of IT products and services with a special focus on the SME - automobiles, pharma and textile segments. He emphasized the need for human capital development to meet the needs of this sector.

The automotive sector is set to become a US$145bn industry by 2016, said Director General of the Society of Indian Automobile Manufacturers (SIAM), Dilip Chenoy. It will employ some 25mn additional people and it is a critical enabler, he added

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