Rakesh Kumar

Amplify Digital - Asian Paints’ Digital Transformation journey (Part 2: Operational Excellence)

Blog Post created by Rakesh Kumar on Sep 7, 2017

...Continued from Part 1 (Asian Paint's Customer Experience)

 

As seen in part 1 of the series, Asian Paints invested heavily to identify its customer journeys, segments, and built Omni-channel presence to serve and expand its customer base. However, a truly differentiated Customer Experience is only possible when the backend processes in operations, marketing, sales, finance, etc. are also redesigned to provide efficiencies that help build and sustain a world class digitally powered organization.

 

Let us now look at how Asian Paints digitized its processes and created real-time online performance management systems to enable its workforce deliver customer delight.

 

It invested in advanced customer discovery and real time offer management tools to create dynamic segments and run personalized campaigns and promotions across multiple channels. Thus enabling its marketing team to execute, control and evaluate hundreds of customized promotions at any point in time.

 

A strategic move to integrate its CRM on SAP S/4 Hana helped adopt to SAP’s in-memory technology that enabled it to simplify its finance systems. It was now able to run real time allocations to identify all price and cost buckets from Gross Sales to Net Margin across 50 dimensions and 45000 dealers globally. This also enabled them to monitor site level profitability and make dynamic pricing/promotion changes possible for over 32000 sites. In order to fully mobilize the organization and enable real time strategic decision making, required a management reporting system that could help the CXOs view key metrics at organization, country, product line level and allowed to quickly drill down (or up) and conduct root cause analyses and build what-if scenarios. SAP again came to their rescue with its Smart Business Executive Edition (SBEE) and enabled business to create smart visualizations that worked on transactional data and helped created distributed metrics to enable the “Boardroom of the Future”.

 

All of the investments above brought in efficiencies in marketing, sales, finance and IT. However, operations was still mostly untouched. While this is still WIP, the proof of concept conducted in their Rohtak plant (Largest paint manufacturing plant in the world) offers insights into the future of paint manufacturing at Asian Paints. As part of their operational transformation initiative, the company has now embedded sensors across the paint manufacturing and packaging processes and is leveraging IoT, Big Data, and Analytics to enable high speed, accurate and always on processes. The plant manufactures 80-100 containers per minute, uses sensors to capture 9 data points per container and handles 54000 data points per assembly line per hour. All of this results in extremely high quality of color, near zero wastage, and enables advanced predictive maintenance of machinery to minimize fault occurrences.

With a differentiated customer experience strategy and ever-increasing operational efficiency, Asian Paints could now focus on combining these 2 to create new business models and unlock additional sources of revenues. More on this in the third and final blog in this series…

 

Disclaimer: The views are personal opinions of the writer from data, strategies and frameworks available in public sources.

Sources: “Leading Digital” (http://www.leadingdigitalbook.com/), https://www.youtube.com/watch?v=OAoUKZ5iHDE

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