IT AND ORGANIZATION REPORT

ON

HERO MOTOCORP

Submitted to
Professor Gaurav Dixit
Department of Management Studies,
Indian Institute of Technology, Roorkee

Submitted By:
Group 4
Shubham Pal – 20810061
Siddharth – 20810062
Mukesh Patel – 20810034
Nitin Kumar – 20810039
Pulkit Hans – 20810083
Shrikant Shukla – 20810059
Manoj Mavuri – 20810028
Anshul Kumar - 20810009
Company Overview:
Hero Motocorp Ltd., formerly Hero Honda, is a leading two-wheeler company
founded by Late Dr. Brijmohan Lall Munjal on 19 January, 1984. It is a public
company operating under the automotive industry. The headquarters of Hero
Motocorp is situated at Gurgaon, Haryana. The main products of this company are
scooters and motorcycles. In India, it has the largest market share of about 50% in
the two-wheeler category.
In 1984, Hero started its operation as a joint venture with Hero Cycles (Indian) and
Honda (Japan) company. In 2010, Honda moved out of the joint venture and Hero
bought the shares of Honda. In 2011, the company renamed itself to Hero Motocorp
with a new identity.
In June 2012, Hero Motocorp merged with its parent Hero Investment Pvt. Ltd. with
the automaker. "Hero" was the brand name used by the Munjal brothers for their
flagship company, Hero Cycles Ltd. During the 1980s, the company introduced fuel-
efficient and economical motorcycles that were popular in India. A popular
advertising campaign with the slogan 'Fill it – Shut it – Forget it' that emphasized the
motorcycle's fuel efficiency led the company’s growth to a double-digit value since
inception. In 2001, the company became the largest two-wheeler manufacturing
company in India and globally and maintains global industry leadership till date. The
technological features in the bikes of Hero Motocorp (earlier Hero Honda) have
come from the Japanese counterpart Honda.

Mission and Vision

Mission: "It’s our mission to strive for synergy between technology, systems and
human resources, to produce products and services that meet the quality,
performance and price aspirations of our customers. While doing so, we maintain the
highest standards of ethics and societal responsibilities”.
Vision: "We, at the Hero Group, are continuously striving for synergy between
technology, systems and human resources to provide products and services that
meet the quality, performance, and price aspirations of the customers. While doing
so, we maintain the highest standards of ethics and societal responsibilities,
constantly innovate products and processes, and develop teams that keep the
momentum going to take the group to excellence in everything we do."

Corporate Governance at Hero Motocorp

Every year, the CSR Committee will plan out CSR Programmes to be carried out
during the financial year and the specified budgets thereof for the Board’s approval.
After the Board's approval, the CSR Committee assigns the task of implementing the
CSR Plan within specified budgets and timeframes to persons or bodies it may deem
fit. They carry out such CSR Programmes within specified budget and time period
and report back to the committee on the progress thereon. The committee reviews
the implementation of the CSR Programmes periodically and carries out necessary
directions from time to time ensuring efficient and timely execution of the
programmes in accordance with the policy.

Customer Engagement at Hero Motocorp

Hero MotoCorp was dissatisfied with its unenthusiastic customer engagement
model. The company wanted to rebuild its customer-base by offering them the
specialized service that their vehicles deserved. They came up with the idea of
utilising skills of their trained technicians at their authorized service centres equipped
with genuine spare parts for a much better service to customers.
For the development of the software Sethi (CIO & Head-CSR) decided to build it in-
house with the help of third-party professionals. The Goodlife application was
developed on .Net framework using MS SQL database. For ensuring robustness,
Intel-based servers were used with high redundancy components. It was built with an
objective of bringing real-time information transparency for the company. Once
developed and tested, the program covered the entire spectrum of over 6680 dealers
and Sales and Service Points (SSP) of Hero MotoCorp in a relatively short span of
10 months.
Crossing Hurdles
The key challenge with this program was that many dealers and their executives
were not quite familiar with technology which was resolved through handholding and
a continuous technical support to the dealers. Further, 2 CRM execs per dealership
were deployed and 630 plus executives were trained on the technological know-how
of the system.
The shifting of passport holders onto the GoodLife Program was also somehow
created hurdle owing to its scale. More than 25 lakh members had to be seamlessly
transitioned onto the new program without loss of their data.
Finishing Line
Currently the Goodlife program has more than 1 crore (10 million) members and
contributes to Hero MotoCorp’s achievements with its reference reward system.
Customers also get benefits for referring family and friends to any of the company’s
dealerships.
By analysing the buying patterns of their customers, Hero MotoCorp utilized the data
to identify cross-sell and up-sell opportunities. A lot of our Goodlife members re-
purchase their products and also referred new customers to buy the products helping
in the increase of revenue. The internal processing time for transactions also
reduced from approximately three-four months to just five days.
They have also set up a dashboard to keep a record of qualitative and quantitative
measurement of the program’s success. The senior management receive an
executive summary with details like total number of members, number of members
added in the current month, contribution to sales through referral system, number of
redemptions etc. According to Sethi, a meaningful collaboration between the IT
department and marketing is paramount for the success of any customer
engagement program.

Technology history of the Hero group

The Hero group of firms has a splendid track record for indigenisation, exploring
economies of scale and scope and merchandise innovation. Their bicycle business
has provided them with a chance to find out regarding the ever-changing selections
and preferences of customers in several components of the globe. The group’s
company management encompasses a tradition of keeping up-to-date with the
progressive technology in their field of interest. They need additionally learnt to
introduce the present product to draw in the clients who have also helped the group
in developing a sound customer base not solely in India but additionally in different
countries. Within the method of indigenisation and merchandise innovations, the
corporate has strived for developing technology-based products in-house or within
the group firms.

Technology management at Hero Motocorp

Digital firsts
In another 1st, the corporation launched its e-Commerce platform – hgpmart.com for
mercantilism Hero real components, Accessories and 2 Wheelers. This is a primary
of its kind initiative by a 2 wheeler OEM wherever customers can directly obtain
merchandise on-line. components and Accessories bought victimization this platform
area unit delivered to the customers’ sill.

To improve client satisfaction, the firm launched a ‘Job Card Creation’ app
victimization that Job Cards at the station are often opened through the mobile. “This
has reduced job card creation time three|to three}0-40 seconds from more or less a
pair of to 3 minutes. presently seventy five percent of job cards area unit created
victimization this app saving 1800+ man months of effort and support our
inexperienced our inexperienced initiative by saving concerning twenty one million
paper, that interprets to saving concerning 6000 trees annually.”

Understanding the vital importance of being visible and being discovered on search
engines, Hero MotoCorp has additionally created digital business listings for all its
dealers. This has strong native programme improvement and has greatly helped the
purchasers find Hero dealerships with ease, that successively has helped the firm
improve step for sales and repair.

Hero MotoCorp has additionally placed in situ a digital Instant Redressal Feedback.
Explains Vijay Sethi, “We created this method to boost the standard of service and
client delight by golf stroke varied controls within the system and capturing instant
client feedback for any grievance redressal. Once a client provides the ‘Happy Code’
to the supervisor, then associate degree invoices are often generated against the
service. If a client is sad, instant redressal of feedback by the service manager is
often done.”

To improve the capabilities of its staff, Hero MotoCorp has created an associate
degree Integrated Learning Management System. This has been deployed with
associate degree aim to boost the learning management method of all staff of 6000
bit points. This covers the entire learning management method ranging from hiring,
coaching would like identification until separation. Additionally, e-learning and
assessments are done to alter the staff of channel partners to update their skills and
do assessments on-line through mobile devices. “As attrition is extremely high at
channel partners, designing and training is extremely necessary, dashboards and
reports supported this application helps in designing coaching sessions supported
RAT (Required –Available-Trained) analysis,” states Vijay Sethi.

Hero MotoCorp was additionally one among the primary companies in India to
experiment with Digital Twins. In 2017, the firm setup a manufacturer in Halol,
victimizing the ‘Digital Twin’ technology conception. the whole manufactory was
simulated, however it would not take care of it's preparations for operations. This can
be the primary time that a manufactory was inbuilt in India victimizing the digital twin
technology.

On the vital importance of Digital Twins, Vijay Sethi says, ”Digital Twin tool can aid
management with capabilities like visual image, deciding, tracking/monitoring/control.
it's providing worth to businesses throughout product producing life cycle &
establishing digital reproduction of entire operations. With solutions to simulate 3D
operating of all operations of plants, this technology was 1st pilot tested in our
producing facility in Gurgaon and later virtual plant simulations and digital twin was
created for our manufacturer in Halol. Now, as we tend to area unit acting on our
next inexperienced field facility in Chittoor (AP), wherever we tend to area unit acting
on making a duplicate of complete Chittoor plant in 3D format, possess the layout
simulation, determine bottlenecks at vital areas, calculate resources like say the
whole variety of machine-controlled guided Vehicles (AGV) in plant and take
measures to reinforce potency and plant style.”

Proactive service victimization rising technologies

Understanding the vital importance of responding quickly to service requests, Hero

MotoCorp has enforced a foreign Support resolution victimization good glasses & AR
technology in plants, that permits communication between technicians associate
degreed support departments (Internal /External Vendor) as an professional help.
“This has translated to improved potency of medical specialty, substantial reduction
in period of repair and maintenance of kit and facilities”, states Vijay Sethi.
An analytics platform has been deployed to strengthen the analytics capabilities of
the organisation. The team has initiated a prediction of 2 wheelers and spare
components to boost demand fulfillment. The analytics platform additionally helps
users do self service analytics.

Strengthening the muse

Hero MotoCorp has shaped a technology analysis associate degreed resolution

design team that will technology analysis involving business at an early stage to
examine Go/No Go or Go Later additionally making certain Triple A trifecta
(Automation, Analytics associate degreed AI) is an integral half whereas analysis.

Sharing his perspective on the rising technologies being adopted, Vijay Sethi says,
“Major solutions that are evaluated/introduced embrace Industrial IOT, AI for image
process and detection of spare components, RPA automation, Low code
development platform, 3D printing for toolroom, usage of AR for remote support,
Enterprise content management victimization cubic centimetre and AI, Connected
vehicles, Remote pursuit and site, flip by flip navigation victimization Bluetooth
(Segment 1st introduced by Hero) and prognostication maintenance victimization IoT
for cranes.”

Hero MotoCorp is additionally encouraging its staff within the IT team to try to do
special things in spaces that don't seem to be associated with their regular area of
labor. “The edges that we tend to bring home the bacon out of this activity area unit
twofold. Firstly, it helps build and enhance the ability of our team since they get to be
told new technologies and add varied areas and second, it helps the organization
future proof itself against technologies that may not became mature or thought
however the actual fact that we've got already experimented with it makes North
American country move so much ahead within the learning curve for that technology
and if would like arises, we are able to leverage the ability that has been engineered
for those technologies,” explains Vijay Sethi.

Embedding AI

Artificial Intelligence has recently begun to become an associate degree inherent a

part of everything that's being done at the firm. Most of its technology semiconductor
diode initiatives like Industrial IoT, prognosticative maintenance, RPA, half
recognition etc these days leverage AI in one type or the opposite.

With the provision of an oversized quantity of knowledge generated within the past /
presently being generated by the organization and sweetening of the analytics
capabilities, it's currently become imperative that the initiatives that the firm takes,
leverages the info and analytics combination. The firm additionally leverages AI to
create chatbots, each for its staff and customers. These chatbots are a unit meant to
facilitate} the staff and clients realize the relevant info simply and additionally help
the corporate perceive customer necessities a bit higher. Hero MotoCorp is
evaluating AI and cubic centimetre for strengthening info security and enhancing
client delight.

As the on top of initiatives show, Hero MotoCorp has been perpetually pushing the
boundaries of technology by experimenting systematically with rising technologies.