Ashok Leyland: IT in Transition

Ashok Leyland: IT in Transition

Priya Seetharaman (Indian Institute of Management Calcutta, India) and Ambreen Alam Sajjad (Indian Institute of Management Calcutta, India)
Copyright: © 2012 |Pages: 18
DOI: 10.4018/jcit.2012070104

Abstract

An organization that has been traditionally known to have a strong in house information technology development team and has successfully managed a home grown ERP solution for over a decade faces a transition point. Ashok Leyland, a large leading Indian automobile manufacturer is faced with the dilemma of moving to a product based ERP platform or continuing with the homegrown ERP solution. The challenges with the homegrown ERP solution are evident to the GM, but the potential challenges of the product platform are not crystal clear. What path should he take?
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Organization Background

Ashok Motors Ltd. was incorporated on 7th September 1948 in Ennore, Chennai. It started with an objective to manufacture diesel engines and chassis of commercial vehicles. Ashok Motors was rechristened Ashok Leyland Ltd. in July 1955, as a result of the technical collaboration and equity participation with Leyland Motors Ltd. of the UK. It has since then become the second largest manufacturer in the medium and heavy commercial vehicle segment in India. By the year 2009, the total employee strength exceeded 11,900. (Refer to Appendix G [Figure 5] for performance highlights and Appendix H [Table 1] for Balance Sheet.)

Figure 5.

Performance highlights for the preceding years

Table 1.
Balance sheet for the year 2010-2011
Rs. CroresRs. Crores
Sources of FundsApplication of Funds
Shareholders’ Funds3962.96Fixed Assets4991.76
Loan Funds2568.26Investments1230.00
Deferred Liability89.93Net Current Assets838.97
Deferred Tax Liability-Net443.89Miscellaneous Expenditure4.31
Total7065.04Total7065.04

Source: Annual Report 2010-2011

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