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Gem of a solution:IT for Gems and Jewellery
Satyanarayan BCIO, Dimexon Diamonds Ltd.
Mumbai, 7th June 2007
2
Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors
3
Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors
Indian Gems & Jewellery Industry: Overview
4
Indian Economy
•4th largest economy (purchasing power parity)*
•Economic Growth 2003–06 CAGR: 8%
•Strong Domestic Demand
•Boom in Services and Industries
•Higher disposable incomes
•HNI**growth @ 15%
** High Net-Worth Individuals (HNI) with the ability to invest $1m*Source: Economy Watch
5
Indian Diamond Industry
•Indian share in global diamond market: – By Value: 55%– By Carats: 80%– By Pieces: 90%– By Workforce: 94%
•Diamond Exports 2006: – US $ 3.6 bn (+20%)
•Dominance of family owned businesses
•Source: www.ibef.org
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Indian Diamond Jewellery
•3rd largest retail diamond market•Indian branded jewellery market
will grow to US$ 2.28 bn by 2010 (CAGR 40%) *
•FDI in single brand showrooms•Emergence of local brands•Focus on Customization•DJ Exports < 2% of global sales
* Source: McKinsey & Co Report
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Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors
Dimexon Group
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Dimexon was born to a family of Jewellers in 1939
Dimexon Diamonds
Dimexon EurostarJewellery
InfoTech Solutions
Port Infrastructure
Kirtilal Kalidas
Business Verticals
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Corporate Philosophy
Vision
To become the leading diamond and jewellery company in the world
Mission
Bring joy to people’s lives and give expression to their emotions
Core Values
Trust, Honesty and Integrity
Consistency in product and service quality
Attention to Detail
Meritocracy
Corporate Social Responsibility
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Dimexon Diamonds•A Leader in diamond manufacturing•Turnover (2006): INR 1700 crores•Over 5,200 Employees•12 Nationalities•Manufacturing locations
–Coimbatore, Mumbai•Sales Offices
–India, Belgium, Hong Kong,USA, UAE
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Our Manufacturing Process ensures optimum value of diamonds
•State-of-the-art Manufacturing facilities
•Cutting edge Technology–Automatic Polishing Units–Optical Technology–Laser Technology
•Cutting edge Processes–Cell Manufacturing
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Qingdao Dimexon Eurostar Jewellery
•High-end Jewellery Manufacturing•State–of–the art manufacturing
facilities •Serving to needs of leading brands
–Design & product development–Production
•Core strengths–Production Engineering–Quality Control
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Chosen Partner of Leading Suppliers
•DTC Sight Holder*
•Rio Tinto’s Select Diamantaire
•Alrosa (Russia)
•Aber Diamonds (Canada)
* DTC: Marketing arm of De Beers Group
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Commitment to Diamonds
•Business Standards: –Best Practice Principles (BPP) –Business Excellence Model (BEM)–ISO Certifications
•Business Ethics:–Kimberley Process–Council for Responsible JewelleryPractices (CRJP)
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Dimexon strongly believes in giving back to the diamond community•Industry Beneficiation
–GIA Endowment for Education in India–Access to the Indian jewellery trade to world class training
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Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors
IT Strategy Implementation
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Strategy Review 2003
To focus on profitable growth in diamonds through
•Improved customer understanding
•Robust supplier relationships
•Manufacturing excellence
•Strengthen downstream presence
•Robust IT system to support the business
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IT Strategy: As Is Review
•Multiple legal entities across various locations•Independent function specific systems •Distributed systems across various platforms•Issues:
–Inadequate management control–Absence of system integration–Data inconsistency–Delay in reporting and decision making
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To Be Process: Application ArchitectureM
ailin
g/ M
essa
ging
Wor
kflo
w
appl
icat
ions
Col
labo
ratio
n To
ols
PurchasingInventory
Management
ManufacturingHR &
PayrollSales
Management
Finance & Accounts
MIS, BSCReporting
Opportunity Managemen
t
Contact Management
Customer Support
Relationship Management
Transaction Management
Knowledge Management
Customer Portal
Supplier Portal
Intranet/ Extranet Applications
Acc
ess
Righ
ts/
Use
r pr
ivile
ges
Man
agem
ent
Secu
rity
Man
agem
ent
Business Intelligence
Estimation Calculator
Profitability Analyser
22
Phase I of Application ArchitectureM
ailin
g / M
essa
ging
/ In
tran
et
Col
labo
ratio
n To
ols
Purchasing Inventory Management
Manufacturing / Quality Mngt HR
Sales Management
Finance & Accounts
MIS Reporting & BW
Relationship Management
Transaction Management
Extranet Applications
Acc
ess
Rig
hts/
Use
r priv
ilege
s M
anag
emen
t
Secu
rity
Man
agem
ent
Business Intelligence
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Why SAP ?
•Most suitable integrated system
•Platform to address future requirements
•Vast exposure across all industries
•Good choice of implementation partners
•Large base of SAP trained persons/ consultants
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SAP Implementation at Dimexon
•Management Initiative
•Project plan
•Extensive SAP training sessions
•Rigorous integration tests
•Go Live
•Stabilization of the system
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SAP Implementation at Dimexon
•Management Initiative
•Project plan
•Extensive SAP training sessions
•Rigorous integration tests
•Go Live
•Stabilization of the system
27
Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success Factors
Challenges and Solutions
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Implementation Challenges
1. Absence of industry vertical
2. Dual unit material management (carats & pieces)
3. Large number of transactions and key strokes
4. Banking and Trade Transactions
5. Global lot management
6. Making SAP success at end user level
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The Solutions
1. Knowledge transfer to implementation partner
2. Preparation of Material Master
3. Inbuilt interfaces with machines
4. Export Bills linked with Bank Borrowing
5. Work around and developments
6. User friendly interfaces, extensive training
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Agenda
•Indian Gems & Jewellery Industry: Overview
•Dimexon Group
•IT Strategy Implementation
•Challenges and solutions
•Critical Success FactorsCritical Success Factors
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Critical Success Factors
•Top driven implementation
•Dedicated core team: Business and IT
•Well planned Training Schedule
•Stake holder's Engagement
•Project implementation management
•Rigorous Integration Testing
•Servers Sizing and Communication Links
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Key Result Areas
•Availability of online information
•Data Accuracy and Security
•Inventory Control
•Phase-out of Legacy Systems
•Cost Savings
•Potential Benefits
•System Upgrade
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