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 country’s 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, Tata’s 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.