honda

Published on June 2016 | Categories: Documents | Downloads: 57 | Comments: 0 | Views: 1287
of 45
Download PDF   Embed   Report

Comments

Content

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE

A Study of Customer Relationship Management In HONDA

SUBMITTED BY: Rishabh Singh MBA (2009-2011) Roll No. : 309386

1

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Nitin Kumar, (Asst. Manager– After sales) HONDA Siel cars India Limited, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of After Sales, for the constant support and help in the successful completion of my project.

Signature (Student)

CONTENTS

2

Executive Summary Company Profile Objective Pre-assignment Post- assignment Segregation of work Methodology Used Data Analysis Statistics Commencement. Literary Review Key Industry Pain Points J.D. Sales satisfaction Index. Honda Business Excellence Model. CRM At Honda Implementation of CRM. Elements of CRM. Loyalty Programs. Honda Club. Critical Analysis Suggestions Bibliography

4 5 5 6 7 7 8 9 10 10 12 12 14 16 29 30 31 37 37 38 41 42

3

Executive Summary

This project has been a great learning experience for me, at the same time it gave me enough scope to implement my analytical ability. The first part gives an insight about the DMS System of HONDA and its Customer Relationship Management with its customers as well as with its dealers. It is purely based on whatever I learned at Honda Motors. One can have a brief knowledge about Customer Relationship Management and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding these products have been covered. Some of them are: • • Why has it become one of the largest Automobile Company? How company deals with its abundant customer ?

Most popular Automobile company in India and in the whole world as shown its remarkable presence throughout. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the quarries of the customer asked by them had been solved with the support of the seniors in the organization. The problems of the customer were being recorded for the purpose of the research and development.

4

COMPANY PROFILE

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant. HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units. The company’s second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008. The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuelefficiency. PROJECT OBJECTIVE

To devise a methodology to segregate, analyze and update the related data base into usable form so that it can be used for fruitful promotional and better Customer Relationship Management.

5

Pre-Assignment As joined I was given a data sheet of excel in which all the customer contacts of BAS Ring Road Honda were given. Its was around 45000+, in which I was asked to see thru the data and as according to the priority segregate the data in usable form so that the faulty data could be corrected as used in better purpose and in usable form. The data was as follows: 1. I was assigned a data in excel which comprises of all details about the customer of one of the dealer of Honda . The details were likely sought out to be: • • • • • • • • Log No. Frame No. Telephone No. Fax Email ID Address Purchase Date Zip Code and many more……..

As asked to look forward for the sales promotion and Customer relationship Management, I was assigned some key fields like: • • • • Log No. Telephone No. Email ID Zip Code

6



Frame No.

As data was huge, it comprises of 45676 customer data, hence I with the guide line of my mentor Mr. Nitin Kumar and Mr. Manish Mishra tried to visualize the key problem areas of the data which are hampering in the Sales Promotion and in the Interrupting Contact or relationship with the Company or the Dealer. With regards to this I started sorting out my data according to the priority as assigned. With the help of toolkit of Excel I sorted out the faulty, wrong or redundant data and highlighted them with and additional color mark so that it becomes easier for others to understand the areas of fault in the data. It took time but was a success.

Example: 1. In Telephone no. • Entry many were not input in data sheet. • Many mobile no. were less than or more than 10 digits. • Contact Name was given in place of Contact No. • In place of contact no. Extension codes were given. 2. In Zip Code • Unauthentic zip codes • In place of numeric alphanumeric or place name was given • Zip code less than or more than 6 digits 3. • • Emails No email id was given. Wrong id’s were allocated and many more…,,

7

Hence like these infruitable, maldata has to be jourded down on system for further correction in the Database Management System of the dealer which will enhance the productivity , promotion and good customer – company relation.

Post-Assignment After doing this database analysis on system I was asked to visit the dealer who was concerned with this database i.e.., Ring Road Honda. As we reached, we had a meeting with the officials of Service, Sales and Customer Relationship Managers. The neediness of the job was very clear when I spoke to them and got to understand the importance, that its time to update the data in their database so that they can easily access to their customer and the company can kick starts their promotional techniques. As we started , I was made comfortable with the team comprises of 11 members which include 8 calling persons 2 CR Managers and 1 IT professional.

Segregation of work:As mentioned the team was headed by 2 CR managers Mrs.Anuradha and Ms. Chetana. As I told them the task which has to be performed, after a brief discussion we came upon a conclusion that the customer before 2007 which be dealt by the team headed by Ms. Chetana and customer enrolled after 2007 will be dealt by the team headed by Mrs. Anuradha .

Methodology Used:The team followed the most basic and effective measure of fulfillment of data by personal calling, through which we can achieve maximum of our data which has to be updated. Second method which they followed was sending letter of concern to their entire customer from the database whose data are to be required mentioning a heart full gratitude to be a part of Honda and also making a request of notifying the dealer if any change has occurred in their contact details.
8

Another method which I suggested that when any car comes to their dealership for service they can provide the customer with customer feed-back form in which customer can spare out few minutes and fill the details in the form as applicable.

ILLUSTRATIONS: As joined the task was to analyze the data and sort out the data on the key notes on which a good Customer relationship stands. More or less as we go through the data, the task came out much more clear and understandable that what has to be performed and how in HONDA 1. Achieve the data and look through the loops in the data which are the matter of concern for a good communication between dealer with its customer and also between companies. 2. Segregate the data as according to the priority mentioned above and mark all the inappropiations as accordingly. 3. Look for the loop holes which are hindering the communication process between dealer-customer and also company-customer. 4. Analyze the data base as accordingly as needed on the selected and worthy allocations which are asked to be the key aspects of good communication by the dealer towards its customer. 5. Dealer also needs a track record for its data about its customers hence dealer too needed to be same interested and their customer.

ORIENTATION (I): As started I looked up the as a company and analyse that if I were the company or dealer which all attributes I’ll be needing for a good communication process between my company and the costumer and then analyse.

DATA ANALYSIS: As analysed according to the asked attributes the inappropriate data resultant as shown :

9

Wrong Frame No. Wrong/Incomplete Registration No. No E-mail id Owner Zip code Owner Tel. No. User Zip Code User Tel. no.

-

3380 6994 45388 24518 3832 24351 5607

STATISTICS: The above shown statistical structure shows the amount of inappropriate, faulty or missing data in the database which was analyzed by me about RING ROAD HONDA, a renounced dealer of Honda on New Delhi and the next step was to step up and make sure the dealer should update its data in his DMS for better Customer Relationship Management between him and its customer because better the communication process better the intended Customer Loyalty and better will be the business. As analysed the dealer with such a data , his capability has been reduced a lot and on statistical term is working only with its 50% ability to manage the dealership. If the data is upgraded and properly allocated its can achieve its core competency by 85% which means the dealer can increase its profit by 35% by the same task force and working scenario.

ORIENTATION (II): As the working on the system of Honda Motors is been through , I was asked to move down to the dealership to make them understand the neediness of the job of the updation

10

of the Database in their Database Management System so that they can use it for better Customer Relationship and sore their profit by a huge margin because “ Better you’ll be in touch with your customer better will be the business, because as said by a business entrepreneur that 80% of the business is given by your 20% customer which are categorized as Loyal Customer.”

COMMENCEMENT:

As asked , after analyzing the data I moved to the dealership and was made comfortable before I can explain the importance of the job of updation of the data in their database system. With few mark-up we had a meeting with the top level management of the dealership which include • •


Head of Service Customer Relationship Manager HR Head and Coordinator assigned by Honda in the dealership.



In the meeting the major points which were to be discussed were: • • • • Updation of their database in their Database Management System. Why updation is important? Importance of that updation task? Briefing..!!

11

As asked I moved to the dealership and had a meeting with all officials regarding the issue of data updation as its important for all dealers to have a flawless data of their customer. After having a meeting I moved to the dealership internal area where I was supported by staff of 11 which include 8 calling staff, 2 CRM Manager and 1 IT professional. After knowing to the staff, as asked I had a personal meeting with the entire staff member who were assisting me. We had a conversation and clarified all the doubts regarding work. With my stipulated due course of time I regularly visited the dealership and tried to find out their working process and attributes. As the work was segregated among the two managers according to their seniority, the task of updating was quiet bifurcated. The Ring Road Honda dealership as said is a huge seller surrounding regions but the main flaw in their system connected with their DMS to the company directly misconception and inappropriate flow of information Company. of Honda cars in Delhi and is that they are not online which ultimately leads to between Customer-Dealer-

During my visit to the dealership I stated with the employees and tried to visualize the way of working and their database system and updation process. Honda Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1: Focus on capturing customer and vehicle data and automating routine tasks. Phase 2: Focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3: Focus on tuning the system and delivering additional value-added services to customers. Result:As by the time and as informed the dealer has updated around 2000 data in his DMS, which is a tremendous work.

12

LITERATURE REVIEW The Market Situation Helped by economic reforms over the past decade, the Indian economy has expanded rapidly and seen dramatic increases in competition. In the automotive sector, all of the largest players worldwide—such as General Motors, Ford, Toyota, TATA, and Mercedes Benz—are competing for a share of the market consisting of more than 950 million consumers. This competition, along with the cyclical nature of demand in India’s automotive industry, has made it more difficult to grow revenue and sustain margins.

Key Industry Pain Points

Decreasing sales and market share The long-term battle for market share continues to intensify. In the mature automotive industry, where business cycles drive sales fluctuations, market share is

13

critical to survival. Consumers are less brand-loyal than in the past, and every market segment has an increasing number of vehicle choices. To increase sales and gain ground in the market share battle, companies must improve their ability both to acquire first-time customers and to develop customer loyalty to their current brands. To achieve these related objectives, companies must set an aggressive goal-deliver the best customer experience in the automotive industry.

Difficult dealer relationships and a lack of dealer collaboration As the consumer's primary touch point; the dealer network is a critical component of customer-facing operations. Therefore, the integration of the dealer network is absolutely essential to improving the quality of the customer experience. Only with an infrastructure that enables the effective flow of information to and from dealers can companies create a complete view of their customers. Car companies must take the initiative in understanding the customer’s perspective throughout the buying cycle. Lack of Multichannel capabilities With the advent of the Internet as a research tool, the majority of customers are accessing the automotive enterprises through several different channels. Many times, the switch between channels happens very rapidly as a prospect or customer can view a Web site, make a phone inquiry, and visit a retail store within days or even hours of an initial contact. To improve customer satisfaction and secure customer lifetime value, companies must be able to capture these multiple interactions, provide seamless management between channels, and leverage shared customer information to create rewarding experiences and to develop and execute highly targeted marketing campaigns. Inefficient demand chain planning and high associated IT cost Cost reduction is an ongoing competitive requirement. Just as supply chain management must be supported by a sophisticated information infrastructure, effective demand chain management also requires the right supporting infrastructure, enabling car companies to fully leverage each customer relationship through exceptional customer service, efficient lead generation and management, and effective promotions and campaigns. In addition, global automotive enterprises operate a wide variety of IT systems in their various business units and functional groups. Rationalizing these systems offers significant cost savings. Lack of effective information sharing

14

Car companies must integrate global operations in order to achieve the benefits of consolidation - cost reduction, effective communication, and true integration of core competencies. In addition, internal alignment between business units and functional groups is required to create a unified view of consumers, products, and services. Currently, each business unit, functional group, and brand operates through independent systems, programs, and touch points. As a result, there is limited synergy across the ecosystem, leading to significant inefficiencies, lack of coordination, and most important, an inability to maximize "share of wallet "from every customer through well-targeted marketing and cross-selling. Synergy between traditionally independent business units such as captive finance companies and between functional groups such as sales, service, and marketing is more critical now than ever before. Only by sharing customer information can customer lifetime value be maximized among different groups. Complex data governance requirements Global automotive enterprises have large, complex information technology ecosystems. While customer information must be shared within this ecosystem in order to fully maximize global operations, it must also be protected. Proper management of customer information requires a sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements. Difficulty managing employee relationships In today's fast-paced business environment, automotive companies need to ensure that their most valuable asset -their employees have immediate access to the critical information, services, and applications required to be productive. Organizations must enable employees to make better decisions, work collaboratively, enhance customer relationships, and maximize productive time. Global automotive enterprises must be able to enact and enforce consistent policies across business units, instil a common corporate culture across a geographically dispersed and diverse workforce, equip employees with effective search tools to access corporate knowledge bases, and provide employees with the training necessary to service customers in a volatile and demanding market. JD Sales Satisfaction Index The J.D. Power SSI Study is a consumer-driven measure of customer satisfaction with the vehicle sales and delivery process. According to the study, there are six major factors impacting satisfaction with the dealership at the time of purchase. They are Sales

15

Experience, Explanation at Delivery, Price Evaluation, Delivery Timing, Salesperson Knowledge and PostDelivery Contact.

For 2003 2005

For

JD Power survey which reflected upon the customer satisfaction levels in automobile industry for 2003 and 2005. This gave us an insight so as to which aspects were given importance by the customers. It was seen that Honda Motors has consistently been ranked quite low in terms of its performance in this field leading to its share. The 7 factors here actually were made up of 42 individual factors, which gave a complete insight into the mind of the customer. Thus having identified the important parameters which affect customer satisfaction, HONDA Motors identified the following challenges that it faced to provide better service and be more customer centric. Business Challenges: • Needed a centralized customer database and standardized business processes • Needed to communicate better with more than 1,600 dealer locations and respond promptly to customer requests

16

• Required better feedback on product quality and more effective measurement of campaigns and programs

To satisfy these it launched its CRM initiative to become more customers centric and improve its service so that it could retain its customer. HONDA BUSINESS EXCELLENCE MODEL Business excellence has been embedded in the Honda Group through a holistic methodology that enables companies to heed the call of quality. Honda Motors have adopted the Honda Business Excellence Model (HBEM) to achieve well-defined levels of business excellence. HBEM is a framework defining the quality movement in the Honda Group. It has been adapted in the early 1990’s from the renowned Malcolm Baldrige archetype. The Model works under the aegis of Honda Quality Management Services (HQMS), an in-house organization mandated to help different Honda companies achieve their business objectives through specific processes. The HBEM methodology has been molded to deliver strategic direction and drive business improvement. It contains elements that enable us to capture the best of global business processes and practices. It translates into an ability to evolve and stay in step with ever-changing business performance parameters. The Goals of HBEM • Delivery of ever-improving value to customers, resulting in marketplace success.



Improvement of overall organizational effectiveness and capabilities.



Organizational & Personal Learning

HBEM Core Values and Concepts HBEM FRAMEWORK: A SYSTEMS PERSPECTIVE

17

18

BUSINESS EXCELLENCE MODEL : KEY ELEMENTS

19

STRATEGIC LEADERSHIP Leadership Role

• • • • •

Set direction Organize and allocate resources Review to achieve plans Develop Employees Innovate and improve

Leadership System

20

SELF EVALUATION MATRIX

21

22

Strategic Planning-Through Balanced Scorecard Development and Deployment

BSC –Four Perspectives

23

CVBU –BSC Implementation Structure

Figure : CVBU –BSC Implementation Structure BSC Assessment

24

Figure : BSC Assessment Char Market Development Process

Figure : Market Development Process

25

Listen and learn

Figure : Listen and learn

26

Customer Relationships

Figure : Relationship Management & Sales Process Improvement

27

Figure : Customer Satisfaction Improvement Process

HR Focus

• • •

Attract the GOOD Advance the BETTER Retain the BEST

HR Vision and Mission

Enhance and maintain Human Capital, which will make the Organisation a world class player and further the interests of all stakeholders

• Source, develop and maintain Human Capital, which will drive the culture of customer focus, high performance and seamlessness.

28

• Create, learn and implement best in class HR practices and processes in pursuit of excellence. • Retain and attract the talent by improving the brand through employee delight and loyalty. • Improve Community friendliness.

Work Structures

• • •

Concept of Factories and Centers of Excellence (CX) Cross-Functional Teams Self-Directed Teams

Employee Development

• o o o o • •

Focused Leadership Development through Fast track schemes Development Centres Technical Specialist Scheme Talent Management Scheme Focused Employee Training aligned with Business Needs Evaluation of Training Effectiveness

Employee Welfare

• o

Policy on Safety, Health, Security & Ergonomics Business Risk Management

29

o o

Employee Welfare Services Employee Satisfaction Surveys

Manage Processes Enterprise Process Model

30

Figure : Value Chain & Value System

CRM at HONDA MOTORS

Faced with increasing competition from abroad, a cyclical business environment, and the challenge of a widely dispersed dealer network, Honda Motors, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Seamlessly integrated with Honda Motors’ dealer management system and SAP back-office applications, has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. To address its competitive challenges, Honda Motors began standardizing its customer-facing business processes companywide, • • • Laying the foundation for stronger dealer relationships, Improved operational efficiency and effectiveness, A better customer experience.

31

This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India. In conjunction with its reengineering effort, Honda has deployed a robust technology platform to improve the flow of information across the enterprise. • The platform consists of an innovative Dealer Management System, which helps individual dealerships with everything from inventory management and credit reporting to calculating commissions, and • Honda Motors, a comprehensive Customer Relationship Management (CRM) solution designed specifically for companies in the automotive industry. By tightly integrating with its dealer management system, Honda has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, Honda Motors involved dealers throughout the solution, configuration and deployment process. Integrating with their dealer management system ensured that dealers would immediately see the value in the solution. This has helped the company overcome the usual resistance to change and gain rapid acceptance from dealers.

Implementation of CRM Honda Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1: Focus on capturing customer and vehicle data and automating routine tasks. Phase 2: Focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3: Focus on tuning the system and delivering additional value-added services to customers. Siebel Automotive has been closely integrated with a wide array of SAP back office applications.

Functionalities of the Solution • Inventory management and parts location

32



Pricing and tax calculations adjusted for each dealer’s requirements.

• Comprehensive sales and reporting functionality built into Siebel Automotive enables Honda to distribute sales targets to its dealers & roll up sales numbers across the country. • • • • real-time data flow between the Siebel front end and SAP back end Provides multi organization support Can be deployed easily over the Internet Provides robust partner management capabilities

ELEMENTS OF CRM CRM Vision Honda Motors has more than 15,000 Honda Motors dealer personnel in over 1,000 dealer locations. Its endeavor is to get closer to its customers by obtaining a 360–degree view of the customer and design better offerings based on customer demands and feedback. The objectives of the CRM program are: • • Improve its management effectiveness To meet increasing competition from global players

Overcome the difficulties of a widely dispersed dealer network of the way to apologize for the error. Simultaneously they provide technician who visit their home place in order to attend the issues and rectify them to satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved.

Customer Valued Experience

The automotive industry is highly competitive world over. The customer in this industry is pampered by various kinds of vehicular designs and value propositions like mileage, comfort, style, brand name etc. Apart from the mentioned attributes of the product, what customers would value is the after sales service. i.e., how the company listens to them after sale of the vehicle. In short, customers want their vehicle to be taken care of by the company post sale.

33

Customer segmentation for Honda Motors

The automobile industry is divided into two main segments- the commercial and utility vehicle segment and the passenger car segment. Honda Motors is the only Indian automobile company which has a large presence in both the commercial vehicle and the passenger car segment. Commercial vehicles In the commercial vehicle space Honda Motors is the market leader with a market share of 60%. It ranks amongst the top 2 global automakers in terms of the global sales of commercial vehicles. This shows the importance of this customer segment in the overall scheme for HONDA motors In the commercial vehicles segment the company has done a need based segmentation of the customers. The customers are segmented based on tonnage of vehicles required as well as the specific use of the vehicles. The company serves the customers with medium and heavy vehicles, light vehicles, small vehicles and busses. Honda Motors also supplies specially designed vehicles to the armed forces. On basis of specific use the company segments the customers based on types of vehicles like rigid trucks, tractor trailers and tippers. . Passenger Vehicles Honda motors is also a very important player in the passenger vehicle segment of the automobile sector. The company entered the passenger vehicle segment in late 1990s and enjoys around 16 % share in this segment. In the passenger vehicle segment the main customer segmentation is based on the price of the cars. Indian customers are highly discerning, educated and well informed. They are price sensitive and put a lot of emphasis on value for money. Vehicles priced between Rs. 12,00,000 – 18,00,000 form the largest segment in the passenger car market. The data about the sales of the cars in various segments is shown in the adjoining graph. Honda motors also segments the customers based on the type of vehicles they buy. Even in the passenger car segment there are some big customers. Honda is very popular among elite section because of its good fuel efficiency and performance blend. The SUVs from Honda are also very

34

popular with call centres to ferry their employees as they are very spacious and comfortable. HONDA MOTORS – HR and Organization for CRM Executive Selection Scheme (ESS)

Honda Motors has always strived towards excellence both in its efforts towards total integration as well as in recognising its talented employees. The Company is constantly creating prestigious programmes to reward and retain its outstanding employees. The Executive Selection Scheme is one such programme, which is highly sought after by Honda Motors employees. It is a matter of pride and prestige to be a part of the ESS selection process and emerge a winner. ESS is a fast track programme for accelerated growth of high potential professionals. This facilitates their early advancement to challenging and visible assignments through a very systematic procedure.

The selection involves a 3 stage process: * Written Test * Power Interview * Assessment Centre Short-listed candidates are required to go through an interview with the executive directors. Candidates selected gain a huge lead in terms of promotion and learning. They are promoted to Manager's level thereby saving almost 10 to 13 years of work time. The successful candidates are relieved from their current jobs and put on various project based training programmes under the guidance of senior managers in the Company. If the candidates do not possess management education, they undergo a 4 months MEP at IIM, Ahmedabad. After successful completion of training the candidates are mandatorily rotated across departments to acquire general management skills. The ESS is a jewel in Honda Motors overall profile as it provides a platform for every employee of the Company to perform and achieve maximum potential.

35

Implementation of IT and Technological Solutions at HONDA MOTORS

The highly respected Honda Motors Ltd. has a strong tradition of entrepreneurship. The com¬pany’s business strategy calls for reaching beyond the borders of India to enter new markets for its Accord, the innovative luxury sedan for the upper class. One of the major drivers of success at Honda Motors Ltd. is its ability to fully exploit infor¬mation technology to drive business goals. The company was an early adopter of CAD and CAM systems to speed the design of the sedans. The company also uses Siebel Systems to manage its vast customer relationship network and SAP® for all critical business services, such as logistics, supplier relations management, customer relationship management, human resources (HR), and finance. IT is an integral part of every busi¬ness process from design to delivery and the power of IT has been extensively leveraged for the sedan project. The design processes used more digital content than ever before. State-of-the-art CAD and CAM services integrated design across multiple disciplines, making it possible for our designers to harness and benefit from their inherent ability to innovate. IT helped the company shrink the design cycle time. BSM tools from BMC Software played a key role in tracking and controlling all components of IT services and automating the management of the IT infrastructure which is vital to the design and planning for manufacture of the Civic as well as running day-today business processes.

EXCELLENCE IN OUTSOURCING

Following its strategy of outsourcing noncore activities, TML has outsourced its IT applications to HONDA Technologies Ltd. and its IT infrastructure to IBM.® The outsourcing decision has proven to be a wise one. Honda Motors reaped significant benefits through the outsourcing initiatives. TML was recognized in 2007 and conferred the “SAP Ace” award for its SRM & Warehouse Management implementations. It also received the “Uptime Championship Award” at the CIO 100 event in the same year.

36

Initially, the outsourcing approach posed several challenges. Technology silos were performing adequately. However, a flexible service-oriented management framework was required to link the silos and provide a comprehensive a view of the IT landscape underlying a given business process. To make this framework a reality, HMSI decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library® (ITIL®) Version 3. In addition, the company decided to establish a service-oriented management architecture that treated IT services as assets and managed them on a lifecycle basis.

PUTTING BMC SOLUTIONS TO WORK

BMC has provided visibility into the entirety of services components across business process chains. It has also integrated the various IT service management disciplines into a single, unified solution. HSCI started with the out-of-the-box capabilities of the BMC Remedy IT Service Management Suite to establish a baseline of the IT application and infrastructure landscape across all technol¬ogy pillars. The company used the applications’ embedded ITIL-compatible controls —without modification — to define roles, responsibilities, and authorities required in the support groups. HSCI realized immediate benefits from the transition to the BMC applications, which served as the software framework for managing the interactions and process relationships among all the support groups managing the IT infrastructure underlying business services. A service-oriented organizational structure was designed and configured in the BMC Remedy applications. A major innovation in the configuration is the use of logical architectural definitions for the support group infrastructure. Logical role names for technical support staff login allowed uniformity of definitions across the entire support community regardless of whether the employee is internal to HSCI or outsourced. The naming convention encompasses competency levels that enable the incident coordinator to assign tickets based on complexity. This feature has real value in a multisite support group where names by themselves mean very little. Service managers can now plan staffing on the basis of competencies and have a transparent view of support staff effort and load across locations.

37

A SINGLE POINT OF CONTACT FOR IT SERVICES

HSCI used BMC Remedy Service Desk and the end-user console to establish an outsourced IT service desk that is the single point of contact between the IT user community and the IT ser¬vice providers. This new service desk consolidated more than 25 different help desks across the country, making it simple and straightforward for users to get assistance and report problems. This also helps to project a single unified face of IT to the customers although multiple IT service providers are involved in the complete services to the customer. An innovative, segregation-of-duties approach ensures that the vendor providing a particular ser¬vice is not also responsible for tracking and reporting on that service. This was done by creating a special group within the IT service desk for ensuring satisfactory closure of tickets An innovative, segregation-of-duties approach ensures that the vendor providing a particular ser¬vice is not also responsible for tracking and reporting on that service. This was done by creating a special group within the IT service desk for ensuring satisfactory closure of tickets and moni¬toring status of paused tickets. HSCI is required to be SOX compliant. Statutory requirements for ensuring segregation of responsibilities were met by allocating responsibilities for recording, classification, and routing by one vendor, and closing verification, customer satisfaction assurance, and performance reporting by another. CLIMBING THE IT SERVICE MANAGEMENT MATURITY LADDER

BMC solutions have helped HSCI make significant progress toward reaching the top of the IT service management maturity ladder. The applications, which paid for themselves within the first year, are delivering quantifiable benefits to HSCI. The applications have brought greater efficiency to the IT environment, enabling the staff to dra¬matically reduce the number of trouble calls. For example, calls related to desktops are down 40 percent, calls from supplier relationship management are down 80 percent, and server support calls are down eight percent. Most importantly, by keeping critical systems available and operating at peak performance, the company reduced the development cycle for the sedan compared with
38

earlier platforms enabling the company to get this exciting new offering to market faster and at a lower cost

LOYALTY PROGRAMS CITY Circle Honda Motors Privileges Program – CITY Circle At Honda Motors, it is Endeavour to spoil you with superior quality of vehicles and value-added services. With this in mind, Honda Motors have made an effort to enhance your experience with your Indigo beyond the road. The benefits of becoming a member of the CITY Circle range from getting special offers and discount coupons, interacting with the Indigo community on a regular basis and being part of a group where you can share your views, experiences and more. Honda Motors offers you more than just a car. HONDA Motors offer you an experience that will spoil you for more. Accessories for your car, world-class workshops with stateof-the-art equipment and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience. HONDA Motors provide you with a lot of value-added services and timely information on what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower Card - a card that gives you several exclusive benefits from Honda Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get exclusive benefits such as loyalty, exchange and referral bonuses. At Honda Motors, services and products are delivered courteously, quickly, efficiently and to your satisfaction. Honda Motors hope you have a great experience with us. Honda Motors promise to do our best to satisfy your needs to the best of our abilities.

Honda Club Honda Motors offers you more than just a car. Honda Motors offer you an experience that will change the way you look at your car. Accessories for your car, world-class workshops with state of- the-art equipment, and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience.

39

Honda Motors provide you with a lot of value-added services and timely information of what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower card - a card that gives you several exclusive benefits from Honda Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get special benefits such as loyalty, exchange and referral bonuses. At Honda Motors, the best of services and products are delivered courteously, quickly, efficiently, and to your satisfaction. Honda Motors hope you have a great experience with us. Honda Motors promises to do our best to satisfy your needs to the best of our abilities. Accessories and Service Coupons Apart from the various accessories and service packages you will also receive several offers and discounts on accessories and services. An offer coupon booklet is enclosed along with this booklet. Privileged Offers We also run attractive retail offers for our car owners from time to time, in addition to retail schemes applicable to others. These may include loyalty or exchange bonus on additional purchase of Honda cars, or referral bonus if you convince a friend to purchase your favorite car. We look forward to a relationship that gets stronger with time. Honda Motors constantly endeavor to change the ownership experience of every Honda owner and your suggestions and feedback would not just encourage us, but also help us improve our service standards in times to come. We’re sure you’ll enjoy the experience of owning and driving one of the finest cars on the road, the CITY. Happy driving!

CRITICAL ANALYSIS Benefits Obtained •Integrating Siebel Automotive with dealer management system ensured that the dealers would immediately see the value in the solution. This has helped overcome the usual resistance to change and gain rapid acceptance from dealers.

40

•Further, the user-friendly interface has simplified the process of training Honda Motors’ 10,000-plus dealer sales force. •Honda Motors links its 1,600 customer touch points with its centralized data centre in Mumbai using a combination of VSATs and high-speed virtual private networks. •Siebel Automotive has transformed the organization and made it truly customer centric. •The organization has overcome the challenges of relying on disparate sources of information, as well as having inconsistent business processes. •Employees and dealers are much more responsive and can serve customers more efficiently and effectively—drawing upon real-time, centralized customer and vehicle data. •Convenience to dealers as they can view their entire stock of vehicles and see how inventory was ageing, thus improving control. •Siebel Automotive has also helped dealers respond to customer queries regarding vehicles that aren’t in a dealer’s stock, but which can be ordered directly from Honda Motors. WHAT SALES & CUSTOMER SATISFACTION INDEX SAY

As per the Sales Satisfaction Index (2009) and Customer Satisfaction Index (2008), Honda Motor ranks among top. This proves that they have utilized the CRM approach and application of technology is sufficient because there is an actual understanding of what customer values most. As still on the dimensions mostly preferred by the customers Honda motors rose high.

41

For 2008-

For 2009-

SUGGESTIONS Focus on the non-customers

42

Services such as pick and drop, on-road service, should be provided at Honda service station, which are common in other companies.

43

BIBLIOGRAPHY

Honda Journals.

Business Review.

India Today.

Books and Magazines.

News Papers

Times Of India.

Economic Times.

The Business Standards.

44

Internet

Google.com

Scribd.com

Managementparadise.com

45

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close