ASIAN PAINTS: THE CUSTOMER EXPERIENCE GETS A NEW LOOK WITH SAP CRM

BUSINESS TRANSFORMATION STUDY

Asian Paints, partnering with SAP, transforms its processes to extend its brand and ensure longterm growth.

Highlights

At a Glance Key Challenges Why SAP Was Selected Implementation Process and Best Practices Business Process Transformation and Value Realized Future Road Map Lessons Learned

3 5 6 7 10 12 13

ASIAN PAINTS
AT A GLANCE
Profile
Company Location Industry Products/Services Revenue Employees Web Site SAP Solutions and Services Asian Paints Limited Mumbai, India Consumer products Paint and painting services US$680 million 4,700 www.asianpaints.com SAP Customer Relationship Management application (lead and opportunity management, partner channel management, analytics functionality), SAP ERP application, SAP NetWeaver platform, and Web Dynpro development environment (online ordering and accounting)

Asian Paints Limited, with annual revenues totaling US$680 million, is Indias largest paint company and the third-largest paint company in Asia today. The company has an enviable reputation in the corporate world for professionalism, fast-track growth, and customer-centricity. Asian Paints has offices in 22 countries, and its 30 paint manufacturing facilities service consumers in over 65 countries.

Key Challenges
Develop a direct link to the customer Standardize sales delivery processes used by Asian Paints Homes Solutions providers Institute an online ordering and accounting system for providers Implement a real-time reporting system for employees and business partners

Why SAP Was Selected

Ability to meet all criteria Integration of the SAP NetWeaver Business Intelligence component Scalability SAP support

Implementation Best Practices

Pilot first Use a cross-functional project team of business and IT staff Implement a training program for end users Institute ongoing user support

Financial and Strategic Benefits

Targeted revenue of US$8 million to $10 million in 20062007 Established direct sales channel to customers thanks to help from the home solutions business Built relationship with applicator community across 30,000 customer sites

Operational Benefits
Improved financial controls Realized the ability to scale business in 12 cities across India Gained online view of the business with optimized information flows Improved customer satisfaction

The implementation of SAP CRM gave Asian Paints greater visibility into all financial transactions during a job. SAP CRM transformed our organization and allowed us to expand into the services business.
Deepak Bhosale Senior Manager, CRM Initiatives Asian Paints Limited

KEY CHALLENGES
A Fresh Approach to the Customer Experience Developing a Customized Solution

Asian Paints Limited, Indias largest paint company, has a reputation for professionalism and fast-track growth. Customers are at the core of all Asian Paints business activities. A simple but unbeatable concept of going where the customer is drives all its major initiatives. In 2001 Asian Paints executives realized that the firms longterm growth depended on their ability to forge ever-closer ties to the end consumer. At the same time, the Asian Paints help line had received calls from these consumers expressing a need for a more complete solution to their home painting needs and Asian Paints learned that they had demanding expectations when it came to service and overall project execution. But because the company sold its products through a network of dealers, it lacked visibility into the entire painting process and the needs of the homeowner. This situation prompted Asian Paints executives to explore ways to establish a more direct link to the end customer.
Launching a Service Brand

Standardizing the sales delivery processes and establishing financial controls would necessitate developing a custom solution. This solution required a secure Web interface enabling leads from the help line to be forwarded to a home solutions service provider for handling. This service provider might be an independent home painting firm or interior designer, for example, in the Asian Paints network. The home solutions provider is responsible for using the system to perform all major tasks associated with a job: schedule appointments, record completion of site surveys, submit job estimates, order paints through Asian Paints dealers, record progress of jobs, invoice customers, and conduct customer satisfaction surveys. The new solution would allow both the provider and Asian Paints Home Solutions to view all customer interactions and financial information in real time. This same system would also provide updates on the status of marketing rewards programs. In addition, robust reporting functionality was required to generate a variety of sales, lead, and activity analysis reports. This functionality would also be used to tabulate results of the customer surveys submitted at the completion of a job.

With this in mind, Asian Paints made the decision to move from a strictly product-based manufacturing business to a services model. With the launch of Asian Paints Home Solutions, the firm would build a service brand by offering value-added services ranging from in-person color recommendations to feng shui consultations. The goal was to deliver an Asian Paints signature look through the use of specific color combinations and themes. To achieve this goal, Asian Paints needed a scalable customer relationship management (CRM) system that could map the major business processes of Asian Paints Home Solutions and provide visibility into all customer interactions. First, it required state-of-the-art call center capabilities that would include activity management for customer calls and activity scheduling, as well as a lead management system that could prioritize and route leads for proper handling.

WHY SAP WAS SELECTED

Preparing for Growth

When the time came to select a new system, Asian Paints studied the functionality of the most recent release of the SAP Customer Relationship Management (SAP CRM) application very carefully. The company was already using SAP solutions and had implemented SAP CRM in its existing call centers. Asian Paints determined that SAP CRM best met its criteria and opted to build on existing infrastructure. Notably, total cost of ownership considerations did not play a major role in this decision. Asian Paints was building a new service business and realized that there would be attendant costs in creating a custom solution. The custom solution was a separate project that would require integration with the basic CRM system. After considering other options, Asian Paints decided on the SAP NetWeaver platform. The Web Dynpro development environment allowed for rapid application development as well as custom development of the user interface. And it would integrate seamlessly with SAP CRM.

The architecture called for the new solution, branded project Tantra, to retain the lead and opportunity management functionality of SAP CRM. Then, all process associated with sales delivery would be implemented through the custom solution. Integration with the SAP NetWeaver Business Intelligence (SAP NetWeaver BI) component was also a critical factor. Data from both SAP CRM and the custom solution would be uploaded to SAP NetWeaver BI to generate various reports. Lastly, Asian Paints, as an existing SAP customer, realized that development of a custom solution would require the strong support that SAP could provide.

SAP CRM provided us with greater visibility into centralized customer data in real time.
Deepak Bhosale Senior Manager, CRM Initiatives Asian Paints Limited

IMPLEMENTATION PROCESS AND BEST PRACTICES

Deepening Ties with End Customers

In launching its new service business, Asian Paintss key objective was to deepen its ties to the end consumer. As a result, the CRM system needed to offer visibility into all customer interactions and financial transactions. At the same time, this system would standardize business processes at each stage of a painting job. Thanks to the implementation of SAP CRM and the custom solution, processes were optimized in the following areas: Financial controls There is now greater transparency into all financial transactions from billing and collections to contractordealer payments. Sales delivery Asian Paints standardized the sales delivery processes to be followed by each provider. Since the sales delivery process can be lengthy, the system allows Asian Paints to monitor the quality of service its customers receive from the start of a project to its completion. Customer data management Asian Paints now has one centralized system for managing all customer data, which provides greater visibility into customer needs and is now available for use in campaign management and in the development of predictability models, among other activities. And because this data is available in real time, reports can be generated instantaneously.

Customer Interaction Center

Lead details, SOA, and so on

SAP CRM

Reports Asian Paints Home Solutions Business Team SAP NetWeaver BI

SAP NetWeaver Platform Web-based System via Internet

Relationship Associate

Applicator

Sales Associate

Figure 1: Tantra IT Landscape Snapshot

Asian Paints IT Architecture SAP Solution SAP CRM application

Projected Number of Users 50 internal and100 external Number of SAP Instances Database Operating System 1 Oracle Sun Solaris

As a result of our implementation of SAP CRM, we have improved process control and accounting transparency.
Aroop Chatterjee Group Brand Manager of Asian Paints Home Solutions and Interactive Marketing Asian Paints Limited

Getting the Job Done Quickly

The implementation project launched in December 2001, and the first component, the interaction center, went live in April 2002. All other components including the custom solution were implemented by August 2002. The project team was comprised of both business and IT staff, ensuring that both business and technical requirements were addressed. Close collaboration between Asian Paints and SAP resulted in adherence to tight schedules. The SAP Customer Competence Center location in Singapore developed prototype scenarios specific to Asian Paints, and SAP Labs made valuable contributions to the design and configuration of the custom solution.

A workshop on enterprise serviceoriented architecture, held for IT staff, assisted Asian Paints in developing a blueprint of its custom solution as an extension of its existing infrastructure. Two Asian Paints Home Solutions providers participated in a three-month pilot an essential element of the project. Because many of the providers did not have strong computer skills, a simple, intuitive interface would be crucial for user adoption. The feedback received during the pilot was critical to the successful deployment of the solution and prevented delays when the system ultimately went live. The system initially went live in four major cities, and the remaining eight cities were added in early 2007.

Ensuring Success Through Strong Governance

Strong governance proved to be another key to success. Asian Paints established a review committee to conduct interim reviews at key stages of the deployment, which ensured that all major business and technical issues were addressed prior to rollout. Strong project management ensured that key milestones and the go-live date were met.
Supporting Service Providers with Training and Tools

Since both the business processes and IT infrastructure were new to the providers, Asian Paints also established a provider support system. A front-line support person who is trained to field business questions handles initial queries. Questions of a technical nature are forwarded to an IT rep. The IT rep then replies to the front-line support person who, in turn, conveys the response to the provider. This support system ensures that any operational issues at the home solutions business level are addressed in a timely manner.

Because the providers using the solution were not particularly proficient computer users, training was essential. Asian Paints organized an extensive training program consisting of classroom sessions that included training in basic computer skills and office applications, as well as in the use of the custom solution.

BUSINESS FLOW

Customer Telephone/SMS/ Web site/Mail

Customer Asian Paints Interaction Center Understands the Home Solutions requirement and forwards the lead to relevant Home Solutions service provider

Painted site with warranty offered Relationship Associate

PROJECT TANTRA WAS CONCEPTUALIZED

Appointment with customer taken Sales Associate

Painting process undertaken with proper monitoring Applicator Paints sourced through Asian Paints dealers Figure 2: Business Flow Asian Paints Colour World

Site survey and measurements done Painting system and estimates selection done Relationship Associate

BUSINESS PROCESS TRANSFORMATION AND VALUE REALIZED

Moving Asian Paints Closer to Customers

Asian Paints has made clear gains in achieving its long-term goals, as follows. Faster customer acquisition The new online system for forwarding and following up on leads improved overall response times and reduced the time required to acquire new customers. Revenue In the four years since the implementation went live, 17,500 persons registered for Asian Paints Home Solutions consultations, and of these, 5,000 signed up for painting jobs. Targeted revenue for the period 2006 2007 is US$8 million to $10 million, and the company crossed the 30,000 mark in cumulative number of customers. Optimized visibility into customer needs The new solution gives Asian Paints greater visibility into all customer interactions. As a result, the company has gained a deeper understanding of the needs of its end customers and has tailored its service business to meet these needs. Scalability This new solution can accommodate Asian Paintss continued growth well into the future. In fact, Asian Paints doubled the number of cities covered without modifications to the CRM system.

Asian Paintss implementation of SAP CRM resulted in greater optimization of customer acquisition and retention activities.
Aroop Chatterjee Group Brand Manager of Asian Paints Home Solutions and Interactive Marketing Asian Paints Limited

10

Optimizing Critical Processes

The implementation of SAP CRM enabled Asian Paints to establish a direct link to its end customers and to meet customers need for a home painting service. The following table illustrates the processes that changed as a result of this implementation and the impact of these changes.

Process Area Financial controls

Problems Inability to monitor financial transactions between providers and customers or between providers and contractors

After SAP Software

Ordering and accounting

Impact
Accounting transparency Optimized financial process

system used by all providers

Visibility into all financial

controls
Improved data transparency

transactions between providers and customers, and between providers and contractors
The same sales delivery

Sales delivery

Lack of consistent sales

Improved customer

delivery processes from lead and opportunity management to job estimating and scheduling
Lack of visibility into

processes used by all providers

Improved visibility into all

satisfaction
Reduced time required to

service customers
Created a direct channel to

customer interactions

customer interactions

customer
Increased employee

productivity Customer data management

Inability to collect and Centralized data Improved customer service Improved customer

manage customer data

Inability to identify changing

management capabilities
Improved visibility into

acquisition and retention

customer needs

customer needs
Ability to profile customers

11

FUTURE ROAD MAP

Through its implementation of SAP CRM, Asian Paints has established a direct link to its end customers, and put in place processes to ensure that their high expectations will be met. In an effort to realize an even greater return on its IT investment, Asian Paints used its SAP CRM infrastructure to develop an e-recruitment platform in 2006. This platform allows employment agencies to review openings and upload job candidate information, reducing the time required to fill open positions. In the future, Asian Paints plans to leverage its SAP CRM investment in the following areas: Campaign management With improved customer intelligence, Asian Paints now plans targeted campaigns to its customers. New market segments Asian Paints plans to extend its CRM initiative to indirect customer influencers such as architects and interior designers. Complaint-handling system Asian Paints plans to develop a formal complaint-handling system to tackle customer problems with both service and paint. By having selected a scalable system such as SAP CRM, Asian Paints has laid the foundation for its long-term growth.

12

LESSONS LEARNED
SAP CRM enabled Asian Paints to build a service brand through Asian Paints Home Solutions. With its scalable CRM infrastructure, Asian Paints is poised to continue its expansion into the services market. The following are the key takeaways from this implementation.
Pilot first Create a blended IT and business team Exercise strong governance Provide training and support Piloting allows you to fine-tune the system and avoid delays during rollout. A cross-functional team ensures that business and technical requirements are addressed. A review committee ensures that goals at each stage of the implementation are met.
Extensive training is critical when end users

have to learn a new system from scratch.

Provide ongoing support to address both

business and IT problems after the go-live date. Allow adequate deployment time CRM deployments involving custom solutions are time-intensive. Build sufficient time into your schedule.

13

www.sap.com/contactsap

2007 by SAP AG. All rights reserved. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specications may vary.

50 083 990 (07/03)

These materials are subject to change without notice. These materials are provided by SAP AG and its afliated companies (SAP Group) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.