Study of SAP in Dainik Bhaskar Group.

Introduction
1.1 SAP
The company SAP was founded in Waldorf, Germany, in 1972 by five ex-IBM
engineers. SAP stands for System, Anwendungen, Produkte inder Datenverarbeitung (Systems,
Applications, and Products in Data Processing).
The original founders have been so successful in growing SAP into a global player such
that SAP AG is now the third-largest independent software supplier in the world, with over
19,300 customers, 10 million users and 60,100 installations, including more than half of the
worlds top 500 companies. SAP had revenues of 7.4 billion and net income of 509 million in the
year 2002 [SAP Annual Report 2002].
What made this company so successful? The first big scale product SAP launched in
1979 was SAP R/2.Running on mainframe computers, R/2was the first integrated, enterprise
wide packaged software and it was an immediate success in Germany. For years SAP stayed
within the German borders until it had penetrated practically every large German company.
Looking for more growth, SAP expanded into the remainder of Europe during the 80's.
Towards the end of the 80's, client-server architecture became popular and SAP responded with
the release of SAP R/3(in1992). This turned out to be another success for SAP, especially in the
North American region into which SAP had expanded in 1988.
The growth of SAP R/3 in North America has been nothing short of stunning. Within a 5 year
period, the North American market went from virtually zero to 44% of total SAP worldwide
sales. SAP America alone employs more than 3,000 people and has added the names of many
of the Fortune 500 to its customer list (8 of the top 10 semiconductor companies, 7 of the top 10
pharmaceutical companies etc). SAP today is available in 46 country-specific versions,
incorporating 28 languages. These solutions are tailored to meet the specific requirements of
23different industry categories, from aerospace and defense to utilities, giving SAP a competitive
advantage that no other company can match.
SAP R/3 is delivered to a customer with selected standard processes turned on, and many
other optional processes and features turned off. At the heart of SAP R/3 are about 10,000 tables

Study of SAP in Dainik Bhaskar Group.

which control the way the processes are executed. Configuration is the process of adjusting the
settings of these tables to get SAP to run the way you want it to. Functionality included ranges
from financial accounting (e.g. general ledger, accounts receivable, accounts payable etc) and
controlling (e.g. cost centers, profitability analysis etc) to sales and distribution, production
planning and manufacturing, procurement and inventory management, and human resources.
The start of the internet age at the end of the 90s was a big challenge for the big players
of the enterprise software industry. While trying to grow at a high speed, the companies, SAP
included, were racing not to miss the internet train. Businesses had to be internet- enabled; ebusiness quickly became the buzzword of the decade, and the software companies introduced
new concepts, new products.
Today, SAP offers solutions that improve virtually every aspect of business, government,
and education. For example, my SAP Business Suite allows employees, customers, and business
partners to work together from anywhere, at any time. SAPs customer relationship management,
supply chain management, and product life-cycle management solutions help streamline critical
business processes. Leading-edge technologies in such areas as technology platforms, enterprise
portals, and mobility provide customers with the tools they need to work more efficiently and
profitably. [SAP Annual Report 2002]

FIGURE 1: SAP Evolution

Study of SAP in Dainik Bhaskar Group.

1.2 History Of Sap SAP's story is one of a steady rise from a small, five-man operation headquartered in
southwest Germany's Rhine-Neckar region to one of the worlds largest independent software
providers and an employer of more than47, 598 people in over 50 countries. Read about SAP's
exciting evolution and key milestones:

1972-1981:THE FIRST 10 YEARS -

The First 10 Years" chronicles the highlights of the company's beginnings and subsequent
development from SAP's foundation, its first software modules, and the SAP R/2system to the
company's first-year revenues, first customers outside of Germany, and first trade-show
appearance.

1982-1991: THE SAP R/3 ERA-

Four servers with 64MB of memory. Employing 100 employees and signing its 1,000th
customer. Reaching the DM 100 million in revenues, and expanding abroad. The development
of the SAP R/3 product generation. These and other landmark events are the subject of The
SAP R/3 Era."

1992-2001: THE AGE OF E-BUSINESS-

Reaching 6 billion, and employing more than 24,000 employees. Trade shows and
conferences. Going public, and developing new technologies and platforms. Learn more about
SAP's meteoric rise in "The Age of E-Business."

2002 TO TODAY:SAP TODAY-

SAP's story continues with the SAP Net Weaver platform, whose technologies intertwines
system landscapes and information flows, integrate companies and their employee teams, and
establish connections among markets across virtually any perceived barrier. "SAP today
describes the most recent technological and entrepreneurial milestones in SAP's continuing
development.

Study of SAP in Dainik Bhaskar Group.

1.3 What Is Sap R/3?

SAP R/3 on a three-tier client/server model.
1. Presentation Server (GUI)
2. Application Server
3. Database Server
SAP allows the IT supported processing of a multitude of tasks, accruing in atypical
company or bank. SAP ERP is differing from R/3 mainly because it is based on SAP
NETWEAVER: core components can be implemented in ABAP and in JAVA and new
functional areas are mostly no longer created as part of the previous ERP system, with closely
interconnected constituents, but as self-contained components or even systems.
1. Presentation Server
The presentation server is actually a program named sapgui.exe. It is usually installed on a
user's workstation. To start it, the user double-clicks on an icon on the desktop or chooses a
menu path. When started, the presentation server displays the R/3 menus within a window. This
window is commonly known as the SAPGUI, or the user interface (or simply, the interface). The
interface accepts input from the user in the form of keystrokes, mouse-clicks, and function keys,
and sends these requests to the application server to be processed. The application server sends
the results back to the SAPGUI which then formats the output for display to the user.
2. Application Server
An application server is a collection of executables that collectively interpret the ABAP/4
(Advanced Business Application Programming / 4th Generation) programs and manage the input
and output for them. When an application server is started, these executables all start at the same
time. When an application server is stopped, they all shut down together. The number of
processes that start up when you bring up the application server is defined in a single
configuration file called the application server profile. Each application server has a profile that
specifies its characteristics when it starts up and while it is running. For example, an application
server profile specifies:

Number of processes and their types

Amount of memory each process may use

Study of SAP in Dainik Bhaskar Group.

Length of time a user is inactive before being automatically logged off.

The Application layer consists of one or more application servers and a message server. Each
application server contains a set of services used to run the R/3system. Not practical, only one
application server is needed to run an R/3system. But in practice, the services are distributed
across more than one application server. This means that not all application servers will provide
the full range of services. The message server is responsible for communication between the
application servers. It passes requests from one application server to another within the system. It
also contains information about application server groups and the current load balancing within
them. It uses this information to choose an appropriate server when a user logs onto the system.
The application server exists to interpret ABAP/4 programs, and they only run there-the
programs do not run on the presentation server. An ABAP/4 program can start an executable on
the presentation server, but an ABAP/4 program cannot execute there. If your ABAP/4 program
requests information from the database, the application server will format the request and send it
to the database server.cvb.
3. Database Server
The database server handles the user's request for addition, retrieval and modifications in the
data. It is also responsible for maintaining Concurrency Control.
Sap R/3 Functional Modules

FIGURE 2: SAP Module

Study of SAP in Dainik Bhaskar Group.

1.4 SAP for Business SAP R/3 is designed to handle all of the business management tasks of a company. Some
particular examples that you'll see are: the payment of invoices, the management of production
resources and the control of financial accounts.SAP R/3 handles these tasks using application
modules, usually known simply as modules. Their initials often refer to the modules. For
example, SD is Sales and Distribution. MM is Materials Management.
The modules process information from all parts of the organization. Since R/3works
within one system, this information is shared between modules despite any existing
organizational limitations of a company.
ERP consists of common global processes and systems integrated across all business
units. With SAP R/3, all units like Manufacturing, Order Management, and Product Delivery are
linked together across business units with greater speed, accuracy, and service to the customers
with utmost satisfaction. A key outcome from SAP R/3 implementation will be more robust
processes which in turn increase the Operating Excellence and also help in facilitating
easier integration of new businesses and acquisitions. A sample like SAP R/3 process helps in
generating invoices that are easier to read and understand.
As everyone know a very good information systems is expensive to build and difficult to
maintain or expand. This realization has lead many companies to purchase integrated software
applications rather than try to build their own. Such implementations of integrated applications
are what have produced massive sales of large application suites for companies such as SAP
because R/3 integrates many application and some to name are:

Financial applications

Distribution applications

Human resources applications

Manufacturing applications

Indeed, so broad is SAP's R/3 that it offers virtually every common business application
needed by a typical enterprise.

Study of SAP in Dainik Bhaskar Group.

SAP R/3's applications are modules. They can be used either alone or combined with other
solutions. The integration capability of these applications increases the benefits derived for any
company. Some of them are namely:
MM- This stands for Materials Management. MM optimizes all purchasing processes, helps in
accurate inventory and warehouse management and so on.
PP- This stands for Production Planning and Control. This helps in the management of all
process and all types of manufacturing like assemble-to-order production, supply chain
management and so on.
SD- This stands for Sales & Distribution. This helps in all sales and distribution activities namely
pricing, on-time delivery, profitability analysis and so on.
FI- This stands for Financial Accounting. This module helps in gathering all accounting
information and documenting and thereby helps in producing a report and information that can
be used for analysis and control and planning.
CO - This stands for Controlling. This helps in the control of complete controlling system,
internal process of company and so on.
PA - Stands for Payroll Accounting and this helps in centralizing the payroll process and helps in
giving a global view and maintaining the data securely.
OM - This stands for Organizational Management and this helps in giving an accurate picture of
organization structure and also helps in cost planning even in the individual level.
Apart from this there are many more modules available that include highly technical components
that compete with business software in the market.

Study of SAP in Dainik Bhaskar Group.

2. Company Overview:
2.1 Company Profile:
The Tier II and Tier III cities in India are growing at a much faster space compared to
metros. It will not be out of place to mention that the growth of Indian economy is largely
supported by the growth in these markets.

Figure 3: company head office

On May 8, 2012; Pawan Agrawal, Director, Dainik Bhaskar Group (DBG) and winner of
the Asia-Pacific entrepreneur of the year (2010) award, called for a meeting of the executive
team to choose a market for further expansion of the group, after its stupendous success in
Maharashtra. DBG was Indias largest newspaper group having 19.2 million readers.
DNA is the English newspaper, DB Star is a tabloid and Prabhat Kiran is the afternoon
newspaper in MP. Average Issued Readership (AIR) is the number of people who have read the
publication within its publication interval. For instance, for a daily, AIR is the number of people
who have read the newspaper yesterday. Indian Readership survey (IRS) is the largest
continuous study of the world with a sample size of more than 250000 household across India. It
collects readership information of print media, viewing habits of television and channels,
listening habits of radio and usage of internet.

Study of SAP in Dainik Bhaskar Group.

DAINIK BHASKER GROUP

Publication

AIR

Dainik Bhaskar

14876

Divya Bhaskar

3627

Saurashtra Samachar

255

Business Bhaskar

68

DNA

47

DB STAR

272

Dainik Prabhat Kiran

63

Total

19208
DAINIK JAGRAN GROUP

Publication

AIR

Dainik Jagran

16458

1 Next

655

Midday(English)

380

Midday(Guj)

147

Inquilab

145

Total

17785
TOI GROUP

Publication

AIR

The Times Of India

16458

The Economics Times(Eng)

812

Maharashtra Times

1217

Navbharat Times

2581

Vijay Karnataka

3487

Mumbai Mirror

760

Ahmedabad Mirror

53

Bangalore Mirror

169

Total

16546

Study of SAP in Dainik Bhaskar Group.

Comparison chart

Total Reader
4.5
4
3.5
3
2.5
Total Reader

2
1.5
1
0.5
0
Dainik Bhaskar
Group

Dainik Jagran Group

TOI Group

chart 1: Total Reader

It is conducted by Market Research Users council (MRUC), a not-for-profit industry
body and Hansa Research, a private market research company.
In 2011, it had revenue of Rs.12 billion (1$ = Rs. 55, June 2012) and net profit of Rs 1.5 billion
The groups ability to simultaneously consolidate in existing markets and expand in new
markets resulted in its consistent growth in revenue and profitability.
Besides news paper, DB group also owned radio channel MY FM, which operated 17
stations across 7 states. The group also had strong digital presence with 4 portals- Dainik
Bhaskar.com (Hindi). The Hindi news portal Dainik Bhaskar.com itself attracted more than
10million unique users and 245 million page views per month (Google analytic data). The group
also had 4 magazines- Aha zindagi (positivity in life), bal bhaskar (in Hindi for kids), young
bhaskar (in English for kids) and lakshya (for carrier grooming).

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Study of SAP in Dainik Bhaskar Group.

Particular (in million

2008-09

2009-2010

2010-2011

Rs)
Total revenue

9610

10630

12652

Advertising revenue

7256

8025

10016

Circulation revenue

2009

2118

2144

Total expenditure

(8137)

(7200)

(8621)

News print

(4075)

(3279)

(3838)

Other operating

(4062)

(3299)

(4783)

1311

1318

1846

expenses
Advertisement

207

130

125

and publicity
Distribution

262

228

213

Expenses
Business

147

123

150

promotion
Survey expenses

70

120

188

EBITDA

1473

3429

4031

EBITDA merging

15.3%

32.3%

31.9%

Net Profit

476

1828

2585

Net worth

2360

6361

8179

Cash And Bank Balance

452

126

171

Gross Debt

1412

2966

2082

Net block(fixed)

6471

6475

7358

Return of capital

15%

32.75%

35.15%

Employed
Return on network

20%

28.75%

31.6%

expenditure
- Personnel
-

Source- Company annual report (Selling, General and administrative Expenses were RS.1204mn, Rs.1167mn and Rs.1458mn for
year 2008-09 and 2010-11, respectively).

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Graphical Analysis

Net Profit
2585

1828

476

2008-09

2009-10

2010-11

chart 3: Demo of Net profit growth

The group published news paper in four language Hindi (Dainik Bhaskar and business
Bhaskar), English (DNA), Gujurati (Divya Bhaskar) and Marathi (Divya Marathi) in 65 editions
across 13 states.
Its newspaper had different supplements- City Bhaskar (city based activity and a youthcentric coverage), Madhurime (for women), Rasrang (for literacy) and Navrang (for
entertainment). With its unrelenting focus on tier II markets (cities with population between 1
and 4 million); the group had acquired dominant No. 1 position in markets such as Madhya
Pradesh (MP), Chandigarh, Haryana and Chhattisgarh.

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Study of SAP in Dainik Bhaskar Group.

figure 4 : Distribution of DM

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Study of SAP in Dainik Bhaskar Group.

figure 5: Graphical representation of DM

Their non-metro urban focuses ensure that the group was the market leader in major cities
such as Jaipur, Ahmadabad and Amritsar while being a formidable challenger in the respective
states- Rajasthan, Gujarat and Punjab.

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PUBLICATION

URBAN+RURAL

Dainik Jagran

16458

Dainik bhaskar

14876

Hindustan

12033

Malayala Manorama

9912

Amar Ujala

8836

The Times Of India

7467

Daily Thanthi

7447

Lokmat

7438

Rajastan Patrika

6918

Matrubhumi

6630

Eenadu

6101

Ananda Bhazar Patrika

6098

Dinakaran

5253

Sakshi

5219

Gujarat Samachar

5186

Daily Sakal

4273

Hindustan Times

3733

Divya Bhaskar

3627

Vijay Karnataka

3487

Prajavani

3366

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DB Corp Ltd firmly believes in this growth and have been working along with it and
focusing on all such markets which we call as "The Real Indian".

D B Corp Ltd. is present in 11 states in Hindi Market. Besides we are also present in 2
states in Gujarati language in Gujarat and Maharashtra and in 1 state in Marathi language
in Maharashtra.

D B Corp is the only Newspaper Group which has presence in 13 states, in 4 different
languages namely Hindi, Gujarati, Marathi and English.

D B Corp Ltd. is one of the largest print media company in India , publishing 7
newspapers, 65 newspaper editions and 199 sub-editions in four languages (Hindi,
Gujarati, Marathi and English) in 13 states in India.

Our flagship newspapers, Dainik Bhaskar, (in Hindi), Divya Bhaskar and Saurashtra
Samachar,(In Gujarati), have a combined average daily readership of 19.02 million
readers , making us one of the most widely read newspaper groups in India with presence
in Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal
Pradesh, Jharkhand, Uttarakhand, Delhi, Jammu & Kashmir, Gujarat and Maharashtra.
Our other newspapers are Business Bhaskar, DB Star and, on a franchisee basis, DNA (in
Gujarat, Rajasthan and Madhya Pradesh).

D B Corp Limited recently extended its presence to 4th language Marathi with launch of
its 65th edition Dainik Divya Marathi newspaper in Solapur , Maharashtra on 1st April,
2012 . Since in last 9 months Db Corp has launched 4 more editions from Nasik, Jalgaon,
Ahmednagar and Solapur of its Marathi newspaper Dainik Divya Marathi, increasing our
strength to 5 editions in Maharashtra.

Due to our unique launch ability, we became no.1 from the date of our Launch in almost
all places, out placing the decades old local newspaper of that place.

Warburg Pincus, one of the leading Private Equity Investors, acquired 7.14% stake in our
Company in 2006 and since then, the nominee director from Warburg Pincus is on our
board, which has further strengthened and consolidated our Corporate Governance
practices.

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Study of SAP in Dainik Bhaskar Group.

Dainik Bhaskar
S.N. State Name

Editions name S.N. State Name

Editions name

Madhya Pradesh Bhopal

19

Udaipur

Indore

20

Kota

Ujjain

21

Nagpur

Sagar

22

Chandigarh

Chandigarh

Ratlam

23

Himachal Pradesh

Shimla

Raipur

24

Uttrakhand

Dehradun

Jagdalpur

25

Haryana

Panipat

Bhiali

26

Hissar

Bilaspur

27

Faridabad

Jaipur

28

New Delhi

National Ed. Delhi

11

Ajmer

29

Punjab

Amritsar

12

Jodhpur

30

Jalandhar

13

Bikaner

31

Ludhiana

14

Alwar

32

Bhatinda

15

Sikar

33

16

Bhilwara

34

Jamshedpur

17

Sriganganagar

35

Dhanbad

18

Pali

36

Chattisgarh

10

Rajasthan

Jharkhand

Ranchi

Jammu & Kashmir Jammu

Table 3: distribution of Dainik Bhaskar

They are leader in almost all the states and/or very close no. 2 where ever Dainik Bhaskar
is present as per the above table.
Gujarati News paper "Divya Bhaskar" is largest Circulated Newspaper of Gujarat and is
present in 2 states with 7 editions; as per the following chart:

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Study of SAP in Dainik Bhaskar Group.

Divya Bhaskar
S.N.

State Name

Editions name

Gujarat

Ahmedabad

Rajkot

Surat

Baroda

Bhavnagar

Bhuj

Maharashtra

Mumbai

Table 4: distribution of Divya Bhaskar

Marathi language newspaper, Dainik Divya Marathi, which has begun its journey on May
29, 2011 from Aurangabad, is present in 1 state with 5 editions as per the following chart.
Dainik Divya Marathi
S.N.

State Name

Edition name

Maharashtra

Aurangabad

Maharashtra

Nashik

Maharashtra

Jalgaon

Maharashtra

Ahmednagar

Maharashtra

Solapur

Table 5: distribution of Dainik Divya Marathi

Other News Paper Brand is Business Bhaskar which is present in 6 states with 8
Editions as per the below chart:
Business Bhaskar
S.N.

State Name

Editions name

Madhya Pradesh

Bhopal

2
3

Indore
Chhattisgarh

Raipur

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Study of SAP in Dainik Bhaskar Group.

Haryana

Panipat

Punjab

Jalandhar

Ludhiana

New Delhi

Delhi

Rajasthan

Jaipur
Table 6: distribution of Business Bhaskar

Besides the above brands, D B Corp Ltd. also Publishes English Newspaper "DNA" on a
Franchisee basis from Ahmadabad, Jaipur and Indore.
Further, It also publishes Compact Newspaper "DB Star" from Bhopal, Indore,
Gwalior, Raipur and Jodhpur.
D B Corp Ltd. also publishes Largest Daily Newspaper of Saurashtra Saurashtra
Samachar".
Girish Agrawaal, Director, DBG and winner of the Ernst & Young Entrepreneur award
said: We are the only group which is No. 1 in multiple markets and which has publication in
multiple languages. Most other newspaper depends heavily on a single market and a single
language whereas land and language does not make a difference to us!
The unparalleled success in Maharashtra in 2011 where it not only overtook the
entrenched player lokmat on the very first day of its launch in Aurangabad, but also gained a lead
of 25% over its arch rival within a short span of six months, as per IMRB survey
Report(Aurangabad) initiated by DBG. Further emboldened the group to pursue its vision of
being the largest and the most admired media brand in the country enabling socio-economic
changes. The group firmly believed that tier II and III cities (population less than 4 million) were
the catalysts for growth in India. Per capita income was growing faster in tier II and III cities
resulting in higher consumption growth in these markets.
This in turn would lead to growth in advertising in these markets. Since Indian language
media dominated these markets (Hindi paper comprised 40% of the market, English 15% and
regional 45%), the players with dominant readership would stand to gain the most from the
resultant advertising growth.

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GROWTH 2008 VS 2011 METROS

TIER II

TIER III

Consumer Durable

46

104

96

Ownership
IT and Communication

20

66

44

Product Ownership
Automobile Ownership

27

61

58

FMCG Product Purchase

10

17

15

Source: IRS 2011 Q3 figure in %

To tap into the growth potential, DBG shortlisted team comparative data on the potential,
population size, literacy, readership and SEC (Socio Economic Classifications) for different
states. Apart from readership and competition analysis, the choice of the market would be
influenced by the socio-political-cultural milieu of the states. Pawan Agrawaal wondered which
market to enter.

2.2 History of Company

Dainik Bhaskar, the flagship Hindi daily started in 1958, stands as an example of
achieving perfection through determination. Today the newspaper highlights many positive
values that have driven India, its growth and aspiration. It is depicted as a change agent through
its philosophy Zid Karo Duniya Badlo.
It covers international, national and local news, politics, business and sports. The paper
also has an editorial page containing the views of eminent columnists such as Mr. Pritish Nandy,
Mr. M J Akbar, Mr. Kuldeep Nayyar, Mr. Ayaz Memon, Mr. Surendra Mohan, Mr. Joginder
Singh, Mr. Salim Khan, Ms. Mallika Sarabhai and Mr. Tarak Mehta on various issues.
The first edition of Dainik Bhaskar was published in Madhya Pradesh in 1958, and it is
now published in 36 editions in 11 states, 14.4 mn (Source: IRS Q2 2012) - Madhya Pradesh,
Rajasthan, Chattisgarh, Haryana, Delhi, Punjab, Himachal Pradesh, Jharkhand, Jammu,
Uttarakhand and the Union Territory of Chandigarh.
The first edition of DBG was launched in Bhopal in 1958. It then entered the cities of
Gwalior, Ujjain and Jhasi. In 1983, it entered Indore, the business center of Madhya
Pradesh(MP) with a strong incumbent Nai Dunia. On the back of fair reporting and quality

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Study of SAP in Dainik Bhaskar Group.

printing, it soon became the No. 1 newspaper in indore and subsequently in the whole of MP in
1995. This success in a market dominated by an incumbent enhanced the group's confidence to
expand outside MP. It explored options in the hindi belt comprising Utter Pradesh(UP), Bihar,
Rajastan, Delhi, Punjab and Haryana. UP and Bihar suffered from low levels of literacy and per
capita income, Panjab was reeling under the threat of terrorism and Delhi was dominated by
English newspapers. In 1996, the DBG zeroed in on Rajastan as it was culturally similar to MP
and being a vast geographical territory offered score for expansion. Moreover, Jaipur had high
readership of hindi dailies among SEC AB and high per capita income indicating potential to
attract advertisers. It was dominated by a single player Rajastan Patrika(RP), which had 80%
market share. Readership had no grown much in the past, indicating on tapped potential and a
need gap which DBG could potentially fill. Jaipur was even more challenging than Indore as
unlike nai duniya which was strong only in Indore, RP was the market leader in the entire state.
Traditional approach, for launch of the newspaper was to produce a good paper and wait
for readers to subscribe. However, DBG took a leaf out off the automobile industrys book where
pre-booking was a practice and pre-marketed the paper and got confirmed paid-up circulation.
DBG conceptualized a twin-contact program. In the first phase, it conducted research to identify
readers expectation of a news paper supplements, price, number of advertisement and contains
preference- and their attitude towards existing newspapers. In the second phase, it shared the
result of the survey with the potential readers and booked subscription.
Jaipur and the surrounding area had 3.5lakh(1 lakh=0.1 million) household and DBG
targeted 50% of them for the survey. Teaser hoardings were put across the city to arouse
curiosity. A team of 275surveyers where recruited from collages and trained for the survey.
Sanjeev Kotnala, VP & National Head Brand Communications said:
The team started the day with the morning anthem hamko man ki shaki dena (a
popular song of hindi meaning A god give a strength). Lead by Pawan Agrawal himself. The
team at time did not survey all the house hold in the locality in one go. It created mystique
around the contact programe. People wondered why DB representative had talked to his
neighbour but not him. This opened the doors for DBG. For getting a pulse of the market place,
promoters wore surveyors DB T-shirt and went in the field. They ate in neighbourhood places
and engaged in conversation with consumers. To keep the spirits of the team high, we would

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bring a celebrity and declare a party on Friday evening. We also created possibilities of
absorbing some of the surveyors in the company.

Figure 5: Path Of DM
In the first phase of the survey, DBG asked potential readers if they could come back to
share finding of the survey. In the second phase, DBG shared the findings- consumers wanted
quality content at reasonable price. It assured them of meeting the expectation and offered an

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Study of SAP in Dainik Bhaskar Group.

introductory price of Rs.1.5 against Rs.2.25 of RP. The response was overwhelming. On the first
day, DBG had a circulation of 1.72lakh copies against 1.48lakh copies of RP in Jaipur. Over the
years, DBG expanded its operation in hole state with Dainik bhaskar.
After Rajasthan, DBG targeted Haryana and Chandigarh as they lacked presence of a
strong Hindi paper. Although Chandigarh was consider an English newspaper market(Trugune,
an English paper was the market leader), DBGs research showed that people would be more
comfortable with Hindi language news paper and they patronized English newspaper only
because of absence of good Hindi newspaper. So when DB was launched, instead of using
literacy Hindi, DBG use colloquial Hindi. For instance, it use university instead of vishwas
Vidyalaya(a Hindi translation) and judge instead of uchh nayadheesh(a Hindi translation). Once
again, the groups newspaper Dainik Bhaskar become No. 1 from the day of the launch.
DBG then explored the remaining markets. Wanting to break the language barrier, it
selected Gujarat which was also prosperous and had high literacy. However, the stat had low
readership and readers perceived the quality of existing dailies Gujrat Samachar and Sandesh
as only moderate. DBG replicated its highly successful twin- contact model for launching divya
Bhaskar in Ahmadabad in 2003. A survey of 12 lakh household reveled preference for the nonsensationalist better quality paper with fewer ads and lower price. On the first day, DBG sold
4.5lakh copies becoming leader from Day 1. The in trenched incumbents reacted strongly- they
dropped prices to match those of Divya Bhaskar; Ran promotions (attractive gifts lucky draws
and contests); increase supplements and upgraded print quality. With its focus on quality contain,
DBG was however able to hold on to its readers. It then expanded into other cities and bought
Saurashtra Samachar for making inroads into Saurashtra region in Gujarat.
After the success in Gujarat, DBG entire Punjab in 2006 and Jharkhand in 2010. DBG
designed launch campaigns depending upon the need and relevance in the market. The launch
communication in Punjab focused on getting Punjab its rightful due- Punjab did not have good
airports, its film industry was dying and good sports man were not getting reorganization DBG
spoke on behalf of Punjab with the Punjabi attitude, in stealing pride among residents. In
Jharkhand, DBG took up the cause of common man- it raised issues of under develop
infrastructure.

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Study of SAP in Dainik Bhaskar Group.

Although DBGs launch strategy was highly successful across markets, it knew thetr
while marketing could fetch. Initial subscriptions at the launch, renewal of subscriptions could
come only from good editorial contain.

2.3 Professional Structured Management

D B Corp Ltd. is present in 13 states with 65 editions and 199 sub-editions.

Every state is headed by a state head, who reports to Managing Director. He is overall
responsible for the complete performance of the respective state.

Every state is headed by a State Editor, under who reports the each edition editor, within
that state. The state Editor is responsible for overall reporting of the local newspaper. The
editorial dep't functions independently.
Corporate
Depart.

Finance &
Accountin
g

Purchase

Sale &
Mark
et

HR &
Personal
and
Admin

IT &
Productio
n

Editorial
department

FIGURE 6: central corporate department

Managing Director

State head

State editor

Edition editor

FIGURE 7: Responsibilities chain

24

Study of SAP in Dainik Bhaskar Group.

Our Company has implemented our Business Application "SAP ECC 6.0 and IS Media
Solution" with expectations to map all the functionality of our business process in the
solution and get the maximum benefits from it which has further strengthened our
internal control and systems control and helped in controlling diversified business, spread
in 13 states with 65 editions and 191 sub-editions and in practicing Corporate
Governance.

Since 2006, we have appointed S.R. Batliboi and Associates, as our Statutory Auditors,
(one of the Big Four Audit firms of the world), which has added credence to our Business
Values.

We have grown from 1 state in 1995 to 13 states in 2012 , with editions increased from 5
to 65 . Our strategy is to enhance our position as one of the leading print media
companies in India and to increase our market share and profitability. We also intend to
expand our presence in the media industry as a whole.

2.4 Editorial
DBG believed in unbiased, credible and courageous journalism. It was known- aligned
be it a religious group on community or optical party or client. It did not patronize any particular
religion, rather covered activities of different religions and communities. Other paper had a
section on spirituality based on the believe that it would transcend all religions. However, DBG
believed that such a reporting comes from the lowest common denominators! It muted the
religion factor! Similarly, it gave expression to many community and cascade and therefore
created of plural identity. Owing to its non-alignment with politicians, it was not surprising that
one day it would criticize a politician for an in appropriate action and next day applaud him for a
good decision.
DB not only innovated structurally but also treated the story differently it tried to invoke
the feeling of did you read bhaskar today? among readers. For example, when other newspaper
simply reported the news of Yuvraj sigh having a cancer, it had a box explaining what cancer is,
difference between malignant and non malignant tumor and a photo of body showing where his
tumor existed. In some news papers, reports went to the event site and wrote a report after
coming back to the office, losing emotional connect with the event and the story.DBG, reporter

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Study of SAP in Dainik Bhaskar Group.

carried a laptop and filled their report from the site itself. This not only insured good quality
reporting but the paper information also happened much earlier in the day.
To insured that latest news got reported in its news paper, DBG invested in technology
like CTP (computer to plate) and in the bigger centers installed high speed KBA machine from
Germany which printed 80,000 copies per hr. in a blind it to take news until late in the night.
This is a fast moving consumer good with a shelf life of 30 million. If it gets declared by
half an hr, it is off no value.

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Study of SAP in Dainik Bhaskar Group.

Figure 9: Market Research of DM

27

Study of SAP in Dainik Bhaskar Group.

2.5 Distribution
DBG setup a strong distribution channel of distributors, venders and hawkers to issued
timely delivery of the paper. In the bigger and strategically important market such as Jaipur,
Ahmadabad, Chandigarh, it supplied directly to the vender as it had the infrastructure and in
smaller markets, it supplied to distributor who in tunes applied to vender who hired hawkers.
Typically, distributors were paid 5% commission and vendors 30% venders in turn hired hawker
at Rs. 700-10,000 per month. Commissions of the channel were protected even if the news
paper sold at a lower price, it had pay 80 paisa per copy to channel it the paper had more pages,
the hawkers would offered asked for more money. They were paid extra for inserting leaflets and
sometimes levied service charge for delivery in big cities. They were also incentive wise by
publishers for acquiring new readers
DBG created a bond with the hawkers, as hawkers were last mile of connectivity. DBG
recognized it issued identity cards (which protected them from police questioning in the early
morning hours), arranged for group insurance and scholarships for their children and printed a
news letter totally dedicated to his hawker agent community.

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Study of SAP in Dainik Bhaskar Group.

Product Of DB:

figure 10: symbols of DB product

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Study of SAP in Dainik Bhaskar Group.

Divya Bhaskar
Divya Bhaskar, our Gujarati daily, is the largest
Gujarati language newspaper in terms of circulation (Source:
ABC July -Dec 2010) and is published in 7 editions and 27 subeditions in 2 states, 3.64 mn (Source: IRS Q2 2012) Readers,
Divya Bhaskar has a dedicated editorial team consisting of 273
members.
Divya Bhaskar was launched in June 2003 from
Ahmedabad, where it was competing primarily against a
publication that was, at the time, nearly 8 decades old. Through
effective strategic planning by the management team and the
employment of robust marketing strategy, within a few months
of the launch, Divya Bhaskar managed to overtake all its
competitors (Source: IIM Case Study) and remains the market leader in that market in terms of
circulation (Source: ABC July to Dec 2010). Since then, Divya Bhaskar has successfully
launched editions throughout Gujarat.
We publish supplements to the main paper. Supplements form an integral part of the
product base as they address specific reader needs, while offering advertisers a focused reach to a
target audience. Supplements generally aim to capture local advertisement revenues. Set forth
below is a summary of our supplements to Divya Bhaskar:
We publish 7 editions of Divya Bhaskar, namely Ahmedabad, Rajkot, Surat, Vadodara, Bhuj,
Bhavnagar, and Mumbai edition.

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Study of SAP in Dainik Bhaskar Group.

Divya Marathi
Dainik Divya Marathi is the 4th Language newspaper added to
the Group. Launched on 29th May 2011 from Aurangabad this is
Maharashtras first unbiased Marathi daily. Divya Marathi expanded
further by launching editions from Nasik in July 2011, Jalgaon in
September 2011, Ahmednagar in October 2011 and Solapur on 31st
March 2012 as its 5th Edition
Dainik Divya Marathi has given a new, independent and
courageous voice to Maharashtra.
It covers international, national and local news, politics, business and
sports. The paper also has an editorial page containing the views of
eminent editor Mr. Kumar Ketkar on various issues.
Specialized supplements form an integral part of our product base, as they focus on
addressing specific reader needs while offering advertisers a focused reach to a target audience.
Dainik Divya Marathi has the below mentioned supplements.
Business Bhaskar
Business Bhaskar addresses the needs of readers for coverage
of financial transactions that they encounter on a daily basis. For
example, there are dedicated advisory sections on how to buy
insurance and how to select the best credit card or mutual fund.
Business Bhaskar also has a large section devoted to farmers
providing coverage of research laboratories and advice on how to
start agriculture related projects.
In July 2008, Company launched Business Bhaskar, Indias first all
India Hindi business newspaper. It has launched 8 editions in 6 states
of Business Bhaskar across the country in Bhopal, Indore, Raipur,
Panipat, New Delhi, Jaipur, Jalandhar and Ludhiana.

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Study of SAP in Dainik Bhaskar Group.

DNA - (Daily News Analysis)

On November 1, 2007, our Company launched the Ahmedabad
and Surat editions of DNA in Gujarat under a publication license
agreement with DMCL. The combined initial daily circulation for both
editions has been on average 214,260 copies (Source: Certificate
provided by M/s. Gupta Navin K. & Co., Chartered Accountants) DNA
is a general interest English daily which caters to the needs of the
cosmopolitan population of Gujarat. DNA was also launched in Jaipur
during June 2008 with an initial launch of approximately 36,000 copies.
The three editions are run on franchise model of diligent group DNA
which was launched in Mumbai in July 2005 and now has 6 editions.
Saurashtra Samachar
On September 01, 2004 Dainik Bhaskar Group took over
Gujarati daily Saurashtra Samachar, Bhavnagar. It is a leading Gujarati
daily of the Saurashtra region, with a readership of 2.65 lacs*.

DB Star
This 16 page colored daily covers vast areas of readers interest.
The content includes anti-establishment stories, sting operation as well
as lifestyle news. It frequently highlights key issues and live problems
of society through sting operations.
The uniqueness of the newspapers is underlined by the fact that
the stories are not time bound and hence it gives the newspaper a
magazine in itself. DB Star caters to every reader of Dainik Bhaskar

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Study of SAP in Dainik Bhaskar Group.

with a dedicated section for each genre of reader with special segments for youth, women and
other citizens.

2.7 Launch in Maharashtra

The quest for growth led DBG to launch its newspaper in Maharashtra in 2011. The
choice was guided by two criteria. Firstly, the high GDP growth rate of 14.5% and high per
capita incomeof Rs. 80,000 per annum, indicating potential to attract advertisers. Secondly, the
huge gap between people who could read Maathi(88%) and those who read any Marathi
daily(44%), indicating the attract new readers. Maharashtra was actually two states in one- 1)
Mumbai, Pune and 2) rest-of-Maharashtra(ROM). The market potential of ROM was even higher
than that of the entire state of Andra Padesh. In line with its stratergy of being a non-metro tier II
cities player, DBG decided to focus on ROM with a particular focus on Marathwada and Desh
socio-cultural regions which were culturally rich and economically prosperous. Aurangabad was
choose for launch in Maharashtra even though Nasik had higher population because of the
greater potential of Aurangabad to attract advertisement revenues.
Since 88% people spoke Marathi and Marathi newspaper accounted for 83% market
share, Marathi was the natural choice of language for DBG. Lokmat, the fifth largest daily, was
the market leader with 53% circulation share followed by Sakal with 30% share. DBG followed
its proven twin-contact strategy for launch. DBG surveyed 1.4 lakh households reaching out of
75% of the total households in Aurangabad. Survey revealed the reader dissatisfaction with
biased news and unanimous preference for an unbiased paper. Readers considered existing
newspaper to be politically biased both Lokmat as well as Sakal had political lineage wherein
the founders held prominent position in mational and state politics. It was perceived that Lokmat
was aligned to Congress party and Sakal to National congress Party.
DBG aggressively targeted four segments- mass, corporate, SEC A (English newspaper
households) and high visibility areas(airports, railway stations, bus stand, hospital, malls,
shopping centre,etc.). although DBGs reader spanned across age groups, income and SEC, a
typical reader of DBG was 30 years old who started his day with either morning walk or regular
exercises. He was self-employed individual or working in a private/government office, had a
wife and two kids and lived in a joint family in a self-owned two-bedroom flat. He was proud to
be associated with DB, read it for 30-40 minutes and left for work by 9:30- 10:00a.m. on his

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Study of SAP in Dainik Bhaskar Group.

vehicle. He was traditional and festival/religious were an important part of his life. He visited
temple, relatives and went out for movies with his family.
The annual subscription of Divya Marathi (Aurangabad) was sold for Rs. 1,095 (cover
price of Rs. 3) against Rs. 1,278 of Lokmat. DBG gave a pre-lauch offer of s. 799 for annual
subscription out of which Rs. 199 had to be paid at the time of booking and Rs. 45 had to be paid
to the vendore evey month. It also distributed coupons worth Rs. 500 to the consumers which
they could use for giving classification ad anything within a year.
The launch was a resounding success with Divya Marathi becoming No.1 on the first Day
itself. Moreover in the next six month after the launch of Divya Marathi, the average circulation

of Lokmat declined from 73,158 copies to 59,548 copies and that of Sakal from 55,972 copies to
40,370 copied.
Divya Marathi also earned attractive advertising revenues. With capital expenditure of
Rs.130 million and one-time operating expenses of Rs. 55 million, DBG projected to break even

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Study of SAP in Dainik Bhaskar Group.

in 4 years. The successful launch of Divya Marathi in Aurangabad was followed by launches in
other cities- Nasik, Jalgaon, Ahmednagar and Sholapur.
Publication

Total

SEC
A

D/E

Divya

342

28

58

122

134

Marathi
Lokmat

273

15

38

78

140

Daily Sakal

65

14

39

Punya Nagari

25

18

Graphical Analysis

Coppies
350
300
250
200
150
100
50
0
Divya Marathi

Lokmat

Daily Sakal

Punya Nagari

chart 3: No of Copies in Demand

Not only did DBG successfully enter new market, it also warded off threat from
competition I n its home turf, for instance, when RP entered Bhopal, DBG introduced a lower
priced variant without any supplements- Jan Jagruti, also called as Green Bhaskar. Its flagship
brand Red Bhaskar had all the supplements free and was priced higher (the two variant had
green and red line, respectively under the mastheads).
The fierce competitiveness of the DB Group stemmed from its vision of being the
dominant player in each of the market it operated in.

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Study of SAP in Dainik Bhaskar Group.

3. Literature Review
3.1 Literature
This literature review covers a wide range of articles that has appeared on various
publications and internet related to SAP and business reengineering. The implementation project
following this review is purely an academic work and there is no commercial objective driving
this project.
Topic: Business

Process Reengineering

Website: www.netlib.com/bpr1.htm
In this literature I can find following points they
are:

BPR must be accompanied by strategic planning, which addresses leveraging IT as a

competitive tool.

Place the customer at the center of the reengineering effort -- concentrate on

reengineering fragmented processes that lead to delays or other negative impacts on
customer service.

BPR must be "owned" throughout the organization, not driven by a group of outside
consultants.

Case teams must be comprised of both managers as well as those will actually do the
work.

The IT group should be an integral part of the reengineering team from the start.

BPR must be sponsored by top executives, who are not about to leave or retire.

BPR projects must have a timetable, ideally between three to six months, so that the
organization is not in a state of "limbo".

BPR must not ignore corporate culture and must emphasize constant communication and
feedback.

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Study of SAP in Dainik Bhaskar Group.

I am totally agree with this conclusion

Whenever any new change is adopted there is basic necessary that all the financial aspect
is to be considered. Then there is is necessity of planning and set the perfect strategy that
how to implementation is to be started.

Whatever changes are to adopted it may be ERP or may be any type of changes that all to
be done for the customers. So if any delay is performed then that time there should be any
other arrangement are available.

The implementation of a new system, there should be perfect planning, scheduling so that
at the implementation time all the operations are performed very smoothly.

When any changes are happen there should be a take care that the corporate culture as
well as the body of organization is not disturbed.

From the starting of the re-engineering the IT part is involved. Because all the operations
are to be set or designed by those persons.

2. Topic: SAP is efficient product for the re-engineering

Title:

Business Reengineering with SAP R/3

Website: www.angelfire.com/sc/SAJISPAGE/LiteratureReview.html
"SAP '98 year in review, and outlook for the coming year,
Jon Reed, SAP Newsletter,
December 14th 1998.

The most common definition used comes from the book titled "Reengineering the Corporation, a
Manifesto for Business Revolution", by MIT professors Michael Hammer and James
Champy. They defined BPR as "The Fundamental rethinking and radical redesign of business
processes to bring about dramatic improvements in critical, contemporary measures of
performance, such as cost, quality, service, and speed."
"The word reengineering today often implies changes from the most mundane to the most
significant. Not all companies wish to make massive changes to their business processes. The
changes companies require are on a continuum from streamlining to reinvention".
Nancy H . Bancroft, Henning Seip, Andrea Sprengel,

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Study of SAP in Dainik Bhaskar Group.

Implementing SAP R/3, II Ed, p116

3.2 The Success Stories:

A) Central Michigan University:

Central Michigan University is a public university in Mount Pleasant, Michigan in the US.
More than 16,600 students attend classes at the main campus, and another 12,000 attend classes
at satellite sites. CMU is known for providing a quality, student-focused education.
CMU needed a new system that would ensure year 2000 compliance and that would move it
from a transaction processing environment to an information management environment. The
university also intends to take advantage of best practices and processes that improve efficiency,
such as distributed transaction processing and increased electronic processing. CMU expects that
the R/3 System will help it advance into areas like employee self service applications, better
management reporting, and possibly workflow.
Project Details:

Duration: 9 months

Implementer : SAP America

Scope: Financials (FI, FM and CO), Materials Management (MM), Human

Resources (PA, PD: Benefits, Time and Payroll)

Team size: 6 core team members for FI and 6 core team members for HR, plus shared
clerical and training support

Rollout sites: On-campus data entry and reports; Off-campus reporting at 14 sites.

End-users: Approx. 650 total (350 active users)

Budget: On time and within budget ($4 million incl. software, hardware, consulting, and
related expenses)

B) Subaru-Isuzu Automotive Inc:

Subaru-Isuzu Automotive Inc. is a joint venture of Fuji Heavy Industries Ltd. and Isuzu
Motors Limited. Located in Lafayette, Indiana in the United States. Subaru-Isuzu was
established in 1987 and currently employs approximately 3,000 associates. The $3 billion
company produces the Subaru Legacy Sedan, Subaru Legacy Station Wagon, Subaru
Outback, Isuzu Rodeo, and Isuzu Amigo.

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Study of SAP in Dainik Bhaskar Group.

Subaru-Isuzus legacy financial systems were neither integrated nor all year 2000
compliant. Installing the R/3 System was the first opportunity for Subaru-Isuzu to actively
capture and manage costs in a real-time, integrated system. Andersen Consulting was chosen
due to its extensive experience implementing R/3 and its past successes with rapid
implementation.

Project Details:

Duration: 4 months

Implementer: Andersen Consulting, Andersen Consulting Enterprise Business Solution

Center.

Scope: Financials (FI and CO), Materials Management (MM), Funds Management (FM) .

Team size: 9 consultants, 8 client full time and 4 part-time members.

Roll-out sites: 1 site only-Lafayette, Indiana.

End-users: 120 occasional, 60 heavy users.

C) Crosfield:
Crosfield B.V. in Eijsden near Maastricht in the Netherlands was founded in 1983 and is
part of the international Crosfield Group headquartered in Warrington, UK. The subsidiary
in Eijsden is the largest production site for silicate and zeolite products. The company
generates approximately $80 million revenue each year and employs185 people. The group
has additional production sites in the UK, Italy, USA, Brazil, and Indonesia.
Crosfields previous information system lacked integration and failed to effectively
support the internal supply chain. The chemicals business is competitive and price-sensitive,
so Crosfield needed an information system that provides integrated pricing information. R/3
was the solution Crosfield opted for to support its global business and improve the quality of
management information. The subsidiary in Eijsden was chosen as the groups R/3 pilot site.
The R/3 roll-out is still in progress.
Project Details:

Duration: Less than 6 months.

Implementer: SAP Netherlands.

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Study of SAP in Dainik Bhaskar Group.

Scope: Financials (FI and CO), Materials Management (MM), Salesand Distribution
(SD), Manufacturing (PP).

Team size: 6 full-time plus ad-hoc members.

Roll-out sites: 1st phase: Netherlands, 2nd phase: UK and USA.

End-users: 60 users.

Budget: Within budget; $0.6 million.

3.2 Conclusion:
Following data conclude that:

ERP tools are going to be the sphere head for the future of Business Reengineering.

BPR as seen and debated by a wide range of management experts identify the key
"enabler" role of IT in reaching the goals of BPR.

SAP and its rapid implementation methodology is going to keep it in the Global leaders
position for at least till the end of the next millennium, provided Microsoft comes up with
a similar product.!!

If mismanaged, the entire implementation of SAP, whether it is done by the best of SAP
consultant or by in-house teams, will dig the grave for the enterprise.

We take this opportunity once again to thank all the authors and publishers of materials on
SAP and Business Reengineering. We once again acknowledge that we have drawn
extensively from many authors and their publications and if anyone feels that they should be
removed from this paper, we would me more than happy to comply.

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Study of SAP in Dainik Bhaskar Group.

4. Research Methodology
4.1 Research Background:
ERP improves productivity, which is the main reason why especially large sized
companies are keen to study about it and adopt the ERP system in their business processes. The
key characteristic of the ERP system is integration, once an ERP system is implemented, each
department in a company will use the same database; share the data that immediately improve
the communication among the different department as good start.
Divya Bhaskar Group is one of the large Group that implement a new ERP system in the
beginning of the year 2005, and the system development was extended till year 2006. The
function goals of applying ERP solution could be characterized as centralization, harmonization,
and self service.

4.2) Research statement:

A STUDY OF IMPLEMENTATION OF SAP ERP IN Dainik
Bhaskar Group

4.3) Objective of Study:

The main objective is

To check the validity of the current business process in

Divya Bhasker .

To measure the effectiveness of services through SAP ERP that is offered by DIYA
BHASKER GROUP in different departments.

To know if SAP ERP has reduced workload of employees and thus is an efficient tool.

4.4 Benefit of Study:

The project findings will help in

Validating the records of all the employees thus reducing the errors.

Maintaining a good and competitive environment among the employees and also help in
measuring the effectiveness of services through SAP ERP in Divya marathi.

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Study of SAP in Dainik Bhaskar Group.

Improve the company at each level and give a competitive advantage over the other
companies that are into the power sector and ultimately to achieve the organizational goal

4.5 Research Design:

Purpose of study: - Descriptive
Here we want to know the business process improvement after implementation of SAP ERP in
the organization & effectiveness on their employees.
Degree of research question crystallization: - Exploratory study
As per my objective of the research, the research questions would try to find out the current
situation in the company.

4.6 Data collection Method:

Based on my initial observation, I have prepared a questionnaire to collect the response
from employees in the DIYA MARATHI as primary data. Versatility of the questionnaire will
help to cover almost all related factors impacting the effectiveness of using SAP in organization
of the target sample. And face to face semi structured interview with the employees of the
organization for the case study.
The secondary data for the thesis is collected through the following tools like:

Company websites

Internet

Employee handbook

4.7 Pre-Testing Of Questionnaire

It is necessary to check the questionnaire, before actual research is done. Therefore pilot testing is
done. In this case, pilot testing has been done for 10 respondents and based on the feedback, the
questioner was fine- tuned.

4.8 Sample Design:

Sample Unit: employees using SAP ERP in Divya Marathi

Sample area: Jalgaon District

Sample method: convenient sampling

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Study of SAP in Dainik Bhaskar Group.

Sample size:30

Duration of data collection: Time duration from 15 June to 15 July2011.

Sampling frame: The database provide by Diya Bhasker Group.

4.9 Statically Test Code:

Here we use the one sample T-test, chi-test, cross tabulation and frequency. One sample
T-test is used to test the difference between sample mean and hypothesized population mean. Chi
-test is used to compare the expectation mean and satisfaction mean.

4.10 Limitation Of The Study

The report has been prepared on the basis of data which is collected through employees face
to face interview, with the help of questionnaire and through secondary sources. Some of the
constraints which evolved during the course of study are as follows:

The most significant limitation has been that the actual effectiveness of the services
through SAP ERP cannot be just presented by doing the survey in some departments.

Only human resource aspect of the organization was covered.

There could have been some errors while selecting employees in organization who are
using the SAP.

There could be some errors in data collection, data interpretation, and even the
environment plays an important role in the outcome of the results.

Some of the errors may have crept in due to the financial constraints.

There may have been some personal bias on part of employees due to unwillingness to
reveal the fact or due to tiredness.

There may be some errors due to the responses of worker grade employees who are
uneducated.

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Study of SAP in Dainik Bhaskar Group.

5. Data Analysis And Interpretation

5.1Secondary Data Analysis (Theoretical Concept)
5.1.1 What Is Sap?
As mentioned before SAP is an acronym for "System Application & Products" which
creates a common centralized database for all the applications running in an organization. The
application has been assembled in such a versatile way that it handles the entire functional
department within an organization. R/2, which ran on Mainframe architecture, was the first SAP
version. Sap's products are generally focused on Enterprise Resource Planning (ERP). Sap's
applications are built around R/3 system which provides the functionality to manage product
operations, cost accounting, assets, materials and personnel. The R/3 system of SAP runs on
majority of platforms including windows 2000 and it uses the client/server.
5.1.2

Sap Solution:
SAP has divided its solution products in to three main categories based on the sizes and

business objective of the client companies; SAP for larger enterprise, SAP business objects and
SAP for small to midsize company.
Basically, the solutions for larger enterprises are far more expensive to invest, and need a longer
time to implement. The design of the program is very complex and required certain capacities for
installing. For small and midsized companies, the solutions are affordable and quick to go live.
The series of SAP business objective solutions aredesigned for more deep industrial business or
more specific in certainbusiness areas. figure describes the three main categories of SAPproduct
and their sub categories of each product. DM brought SAP ERP software packages which were
from SAP business suite categorywhich was designed for large enterprises.

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Study of SAP in Dainik Bhaskar Group.

FIGURE 11 : SAP solution for large and small enterprise

5.1.3 Sap Business Suite:

SAP business suite is one of the ERP solutions from SAP Company which is designed for
large scaled enterprises to execute the business processes and IT strategy at same time. Figure 6
shows the functional areas of the product, which are customer relationship management,
enterprise resource planning, product life cycle management, supply chain management and
supplier relationship management. Including all these essential business processes inside one
intergraded software system, SAP business suite also adds more value to the business processes.
Because of ability of supporting end- to end business processes , SAP business suite
enables the client company to gain many competitive advantages on many areas such as more
efficient financial management , more effective sales management and human resources
management and better logistics.

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FIGURE 12: SAP business suite function areas

5.1.4 My Sap ERP Business Suite:

Once the My SAP ERP business suite solution is installed, to be available and useful, the
new system must contain all data of the operation company. The data is so called master data
such as material data, supplier data, customer data, chart of account , and other business related
data.
After complete the SAP solution implementation, the new system goes live and works the
similar way as other business software. The most significant difference is that the data is input
only once. FIGURE explains the SAP ERP framework and data processing process. For instance,
after receiving one sales order, detailed data of sales order transfer into SAP system by sales
department. At same time, the details received to material management model to check out the
item availability of there has enough items for this order. If there is not enough, purchase order

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Study of SAP in Dainik Bhaskar Group.

will be made according to the sales order. When there are enough product items, the sales order
will forward to logistic execution model to outbound deliver the product to customer.
After confirmed the unload delivery, company will sent the bill to the customer in order to
complete the sales order. The data doesnt need to be input many times in different departments,
in different standards format or even in diffident measurement. It is very crucial for company to
use good data to run business.

Fig 13: SAP ERP frame work

Usually during the business process, data transfers in to the My SAPERP system are
financial data, material management data and sales distribution data, but as an addition,
production planning data, which includes forecast data.

5.1.5 Wipro & SAP SOLUTION:

Wipro is working closely with SAP A Gin dedicated partnerships on the design and
development of multiple End-To-End Processes which are part of the SAP Business Suite.
Specifically, wipro experts & SAP solution teams worked collaboratively on the following Endto-end processes of SAP Business Suite:

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Study of SAP in Dainik Bhaskar Group.

Efficient Manufacturing Operations

Integrated Product Development

Embedded Product Compliance

High Performing Assets Asset Visibility & Performance

Responsive Supply Network Manufacturing Network Planning &Execution

Wipro provides feedback to SAP with regards to customer and market requirements, for
quality assurance and further improvement for each of the above solutions. At the same time,
Wipro builds skills at an early stage before launch of these solutions, and enhances the skills
within Wipro for these solutions using a train-the-trainer approach. This makes Wipro an ideal
implementation partner for these SAP solutions.
5.1.6) Business Benefit:
SAP ERP delivers a comprehensive set of integrated, cross-functional business processes.
With SAP ERP, you can gain the following benefits:

Improve alignment of strategies and operations

Run your enterprise in accordance with strategy and plans, accessing the right
information in real time to identify concerns early.
Pursue opportunities proactively.
Achieve corporate objectives by aligning workforce and organizational objectives.
Find the best people and leverage their talent in the right job at the right time.

Improve productivity and insight

Leverage self-services and analytics across your organization.

Improve operational efficiency and productivity within and beyond your enterprise.

Reduce costs through increased flexibility

Use enterprise services architecture to improve process standardization, efficiency,

and adaptability.

Extend transactions, information and collaboration functions to abroad business

community.

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Support changing industry requirements

Take advantage of the SAP Net Weaver platform's latest open, Web- based
technology to integrate your end-to-end processes seamlessly

Reduce risk

Solve complex business challenges today with SAP, your trusted partner for longterm growth, with 30 years of experience working with organizations of all sizes in
more countries than any other vendor.
Solve complex business challenges today with SAP, your trusted partner for long
term growth, with 30 years of experience working with organizations of all sizes in
more countries than another vendor.
Join SAP's world-class partner network, uniquely qualified to support the best
business practices in more than 25 industries.

Improve financial management and corporate governance

Gain deep visibility into your organization with financial and management accounting
Functionality combined with business analytics.

Increase profitability, improve financial control, and manage risk.

Optimize IT spending
Integrate and optimize business processes.
Eliminate high integration costs and the need to purchase third-party software.
Deploy other SAP business suite application incrementally to improve cash flow and
reduce costly borrowing.

Gain higher ROI faster

Install SAP ERP using rapid-implementation techniques that cost less than half what
traditional approaches cost.
Leverages preset defaults and prepackaged versions available for specific industries.

Retain top performers

Link employees performance to compensation programs such as variable pay plans
and long-term incentives.
Retain your top performers through clearly defined career and development plan.

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Provide immediate access to enterprise information

Give employees new ways to access the enterprise information required for their
daily activities.

5.1.7 Basic System:

Accounting System
Financial Accounting (Fi)
Controlling (Co)
Asset Management (Am)

Production And Logistics

Sales And Distribution (Sd)
Materials Management (Mm)
Production Planning (Pp)
Quality Management (Qm)
Plant Management (Pm)

5.1.8) Sap Cost/Benefit Analysis:

Fi/Co Modules

Reduce Receivables (0-75%, 20%)

Calculation:

Identify Current Working Capital Investment In Receivables

Determine Average Days Outstanding
Estimate Reduction In Days Outstanding
Determine Associated Reduction In Working Capital
Benefit (Annual) Is The Cost Of Capital For The Reduction In Workingcapital

Sap Enablers:
On-Line And Integrated System Provides Faster Invoicing Cycletime
Better Analysis Tools For Receivables Analysis

Reduce Lost Discounts (0-90%, 40%):

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Calculation:
Identify Dollar Volume Of Purchases With Discounts
Identify % Discounts Taken
Estimate % Increase In Discounts Taken
Estimate Average Discount (Usually 1 To 2 %)And Associatedpayable Age
Reduction
Multiply % Increase In Discounts Taken Times Dollar Volume Of Purchases With
Discounts
Multiply Increased Purchase Volume Subject To Discount Justcalculated By The
Average Discount
Subtract Off Cost Of Capital For Required Increase In Workingcapital (Estimating Increase
In Working Capital In This Case Issomewhat Complex. Find Someone Who Knows How To
Estimatethe Increase In Working Capital)

Sap Enablers:
Integration With Purchasing Provides On-Line Verification Andreduced Entry
Improved Availability Of Information To Pay Invoice Resulting Inquicker Payment

Reduce Credit Losses (0-50%, 5%)

Calculation:
Identify Annual Credit Write-Off
Estimate Percent Reduction

Sap Enablers:
Credit Management Integrated With Sales And Distribution Functionality

Improve Cost Control - Reduce Costs (0-4%, 2%)

Calculation:
Identify Budget Accounts And Amounts For The Organization
Review Budget Accounts And Determine Which Accounts Are controllable
Calculate Total Dollars In Controllable Accounts
Estimate Percent Reduction In Controllable Costs

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Sap Enablers:
On-Line, Real-Time Cost Management Information
On-Line Analysis Tools
Earlier Visibility Of Costs And Commitments

SD Module

Improve Pricing (0-10%, 1%)

Calculation:
Identify Total Sales By Product Line In Dollars
Estimate % Improvement In Pricing
Since Improved Pricing Does Not Materially Impact Fixed Or variable Costs, Benefit
Is Sales Multiplied By Improvement percentage

Sap Enablers:
On-Line Real-Time Capabilities Increase Responsiveness And customer Service
Pricing Procedures Capability Helps Reduce Bad Deals
On-Line Visibility Of Product Cost And Profitability Analysis Enables better
Decisions

Increase Sales (0-10%, 2%)

Calculation:
Identify Sales Volume By Product Line
Estimate Total Sales Capacity/Production Capacity (This Shouldinclude Allowances
For Preventative And Unplanned Downtime Formaintenance Reasons)
Estimate Sales Value Of Lost Available Production
Estimate Margin Of Lost Production
Estimate Portion Of Capacity That Can Be Converted To Sales

Sap Enablers:
On-Line Real-Time Capabilities Increase Responsiveness Andcustomer Service
Improved Customer Forecasting

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MM Module

Reduce Inventory (0-50%, 10%)

Calculation:
Identify Inventory Value By Category (If Lifo Valuation, Value Is actually Higher
Than Reported)
Estimate Inventory Reduction Goals By Category
One Approach Would Be To Treat Reduction As A One-Time Benefit, But
Another Approach Would Be To Recognize The Annual Benefit Of Reduction In
Carrying Costs (I Believe This Better Reflects Reality)
Multiply Inventory Reductions By Incremental Carrying Costs(Carrying Cost
Includes Cost Of Capital, Taxes, Insurance, And damage Allowances - Should Not
Include Cost Of Assets, Labor, Or building Unless Major Reductions In Inventory
Are Anticipated)

Sap Enablers:
Improved Visibility Of Inventory
Improved Forecasting
Improved Data Accuracy
Reduced Process Cycle Times

Reduce Obsolescence And Damage (0-10%, 2%)

Calculation:
Identify Current Inventory Obsolescence And Damage Costs
Estimate Improvement

Sap Enablers:
Sap Provides On-Line Visibility Of Stock Usage
PP Module

Increase Production/Sales (0-5%, 1%)

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Calculation:
Determine Total Sales
Determine Margin On Sale
Determine Capacity Utilization
Estimate Increase In Capacity Utilization
Benefit Is The Margin On Additional Production

Sap Enablers:
Integration With Mm Provides Earlier Visibility Of Material/Asset Availability Issues
Production Planning Helps Identify Unused Capacity
Better Forecasting And Planning Tools Helps Identify Correct product Mix To
Produce
Better Planning Tools Help Manage Product Conversion (Teardown, Setup, OffSpec) Costs

Reduce Wip Inventory (0-50%, 10%)

Calculation:
Identify Value Of Wip Inventory
Estimate Percent Reduction In Wip
Multiply Inventory Reductions By Incremental Carrying Costs(Carrying Cost Should
Include Cost Of capital, Taxes, Insurance, And damage Allowances - Should Not
Include Costs For Assets, Labor, Or building Unless Major Reductions In Inventory
Are Anticipated)

Sap Enablers:
Better Forecasting And Planning Tools Minimize Need To Maintain wip As A Buffer
Against Unknown Demand
Improved Visibility Of Inventory With On-Line System
Improved Accuracy Of Inventory Information

Improve Margins (0-5%, 2%)

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Calculation:
Identify Sales By Product Line
Determine Margin By Product Line
Estimate Improvement Percentage
Apply Improvement To Total Sales Volume

Sap Enablers:
Profitability Analysis Helps Target Product Mixes For Greater profitability
Product Costing Helps Target Changes In Production And Pricing strategy
PM Module

Increase Asset Utilization - Reduce Production Asset Down time (0-10%, 5%)

Calculation:

Identify Daily Sales Volume

Determine Margin On Daily Sales
Determine Fixed Cost Per Day
Determine Production Downtime For Planned And Unplanned maintenance
Estimate Portion Of Downtime To Be Eliminated
Benefit Is Margin And Fixed Costs Previously Lost During Downtime

Sap Enablers:
Integration With Other Modules Reduces Cycle Time For maintenance Orders
On-Line System With Analysis Tools Helps Drive Down Unplanned maintenance
Better Problem Tracking And Preventative Maintenance forecasting

Reduce Maintenance Requirements (0-10%, 4%)

Calculation:
Estimate Total Cost Of Plant Maintenance - Usually Captured In A cost Center
Estimate Reduction In Maintenance Due To Improved Preventative maintenance

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Sap Enablers:
Preventative Maintenance Capability
Maintenance History Reporting And Analysis

Other Benefit Areas

Existing Systems Infrastructure
Eliminate Mainframe And Other Equipment (100%)
Identify Hardware To Be Eliminated
Estimate Salvage Value (Or Lease Cost) Of Hardware
Eliminate Maintenance Contracts For Current Hardware And software To Be
Eliminated (100%)
Identify Hardware And Software To Be Eliminated
Identify Maintenance Contracts On Hardware/Software To Be eliminated
Reduce It Staff Required To Support Current Hardware And software (0-100%, 75%)
Identify Total Ftes Supporting Existing Hardware And Software
Allocate Ftes To Current Hardware Maintenance, Software systems And Overhead
Processes
By Now, This Is Probably No Longer A Viable Savings Area. However, The It
Department Has Probably Estimated The Cost Of Year 2000problem.

Project Avoidance (100%)

Identify Planned Projects To Develop Point Solutions (I.E. Plant maintenance
Package)That Will No Longer Be Required When Sap I s installed
Determine Planned Budget For All Planned Projects

Manpower Reductions (0-20%, 10%)

Identify Processes Performed In All Departments Impacted By Sap implementation
Identify Characteristics Of Each Process Identified Above (I.E.Frequent Rework,
Excessive Downtime, Missing Information)
Identify Key Ways That Sap Will Change Each Of The Processes identified
Estimate The Percent Change In Manpower Effort Required For each Process
Determine Net Change In Manpower By Department And By position
Determine Where Opportunities Exist To Reduce Manpower

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Multiply Reductions By Manpower Cost Loaded With Benefits Only

5.1.8 Navigation

FIGURE 14: logging in SAP

FIGURE 15: screen element

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FIGURE 16 : SAP screen

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5.2 Data Analysis Of Primary Data (Survey):

Q-1 Were you involved in implementation process of SAP in DB?

percentage Involvedment in SAP

implementation

36.67%
before impletation
After impletation
63.33%

Chart - 5: Involvement of SAP implementation

Interpretation
The Chart 1 Showed That 36.67% Of The Respondent Were In Their Position Before The
SAP Implementation In DM, 63.33% Of The Respondent Were Hired After The Implementation
SAP Project. The Result showed That At Least More Than Half Respondent Is The New
Employees in DM After The SAP Project Completes. To Be More Specific, There Were No New
Employees Were Hired Or Work change During The SAP Project.

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Q-2 Do you see any improved area currently in SAP, either in software itself or functions related
to it?

Improvement in current SAP System

26.67%
yes
no
73.33%

Chart6-Improvement in current SAP System

Interpretation
The question was trying to find out from the sample that if respondents noticed any improved
areas in current SAP system, either in software itself or function related with, and trying to
identify the improvedarea.73.33% employees reply that there are no improve in current area in
SAP but 26.67% employees say that there are improvement area in SAP like MM module, client
server change, reporting opportunities expanded, a slight improvement in user interface,
accessibility of the system is improved, and mistakes was corrected.

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Q-3 Do you agree that SAP ERP has standardized business process?

Standardized business
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Strongly agree

Series 1
agree
neither agree nor
disagree

Chart 7: SAP ERP has standardized business

Interpretation
From the above graph we can conclude that out of 30 respondents surveyed about 60% of the
employees strongly agreed to it that SAPERP is a standardized process, while 30% of them
agreed and 10% of them neither agree nor disagree to it that in DM SAP ERP software has
standardized business process.
One Sample t-Test:
Null Hypothesis (HO):
There is no significant difference between calculated mean and hypothesized mean (1). In other
words, we can say that the respondents are strongly agreed that SAP ERP has standardized
process.
Alternative Hypothesis (H1):
There is significant difference between calculated mean and hypothesized mean. In other words,
In other words, we cannot say that the respondents are strongly agreed that SAP ERP has
standardized process.

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i.e. H1: x , i.e. H1: x 1

Significance level: 0.05
Table 9: One-Sample Test for standardized business process
Test Value = 1
T

df

Sig.(2

Mean

95% Confidence

tailed)

Difference

Interval of the
Difference

Standardized

4.041

29

.000

.500

Lower

Upper

.25

.75

business

Interpretation
Here the test is performed at 95% confidence level i.e. the chance of occurring type 1 error is 5%
and the p-value comes out as 0.00 which is lesser than 0.05, at the hypothesized mean value 1, it
means that the null hypothesis H0 is rejected and alternative hypothesis is accepted and it can be
said that there is significant difference between calculated mean and hypothesized mean. So, we
can say that respondents are agreed that SAP ERP had standardized business process.
Q-5 On average, how often do you use SAP related with your work:

40.00%

36.67%

30.00%

33.33%

30.00%
20.00%
10.00%
0.00%
2-5 hour a week
2-5 hour a day

all the time

SAP using hour in work

Chart 8: SAP using hour in work

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Interpretation
The aim of the question was trying to find out the frequency of SAP usage from diffident users
groups of new SAP system in DM. The ranges of the frequency sets were divided into five
values base on time that responses use SAP system in the work.
Chart 4 showed that the SAP usage frequencies in general. More respondents used SAP in their
works 2-5 hours a day, 2-5 hour a week or even all the time. And no one are using SAP once a
week and once a month in the organization.
Q-6 Do you think SAP is optimal choice for the DM?
Table 10 : optimum choice
Frequency

Percent

Valid Percent

Cumulative Percent

Yes

26

86.7

86.7

86.7

No

13.3

13.3

100.0

Total

30

100.0

100.0

Interpretation
There is much selection ERP solution software or software packages in the world, SAP is one
ERP solution product produced by SAP Company. Many ERP suppliers have offered their ERP
solution, SAP ERP business suite was the final choice for DM. Based on that, it would be
interesting to know SAP users in DM opinions on this question.
Table result shows that 86.7% employees think that SAP is optimum choice for the DM and
13.3% employees think that SAP is not optimum choice for the DM.

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Q-7 If you could make the decision today , would youcontinue using SAP?

Continue with SAP

10%

Yes
No

90%

chart 9: would you continue using sap

Interpretation
There were almost 99 % of responses showing that the respondentsfrom all user levels were
willing to continuing using SAP system. Only 1% responses was from opposite side. The reasons
were he gave thatthe SAP is not suitable for their needs. Such as, technical issues, lack
of understanding of the softwares capabilities, customizing. In authorsopinion, most of reasons
can be solved by additional training to the SAP users.

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Q-8 Do you think that SAP ERP has reduced time & provides faster delivery of service?

Reduce time & faster service

50%

33.33%

16.67%

17%

50%
33%

Chart 10: SAP ERP has reduced time & provides faster delivery of service
Interpretation
Here 50 % respondents completely (100%) believed that SAP ERP hasreduced the time of
processing the data with other department andprovide the faster service so they can do their work
easily and fastcompared to older system while 33.33% respondents believed that SAPERP
reduced 75% time of processing the data with other departmentand provide the 75% faster
service then the older system and 16.67%respondents believed that SAP ERP reduced 50% time
of processingthe data with other department and provide the 50% faster servicethen the older
system.

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Q-9 Do you think that Productivity has increase after the introduction of SAP ERP?

productivity increase

above 60%

30%-60%

below 30%

No

0.00%

10.00%

20.00%

30.00%

40.00%

Percent

Chart 11: Productivity has increase after the introduction of SAP ERP
Interpretation
The above result show that after the implementation of the SAP ERP the productivity of the
employees work has increase as 86.7 % of the respondents have agreed to it while 13.3% of
them denied to it. Out of 86.7% of the employees 36.7% respondents believe that productivity
has increase above 60 % . While 30% respondents believe that productivity has increase in the
range of 30%- 60 % and 20%respondents believe that productivity has increase below 30 % . So
from that we can say that this system is better than older one.

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percent

Q-10 Do you agree that Chances of error have been reduced with the introduction of SAP ERP?

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Yes
No
chance of error

Chart 12: Chances of error have been reduced with the introduction of SAP ERP
Interpretation
The above graph shows that 93.3% respondents believe that Chances of error have been reduced
with the introduction of SAP ERP and only6.7% respondents do not believe that chances of error
have been reduced with the introduction of SAP ERP. So we can say that maximum people
agreed to it that chances of error have reduced to a great extent with the introduction of SAP
ERP system in DM.

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Q-11 Do you agree that SAP ERP is more helpful and convenient then older system?
60.00%
50.00%

percent

40.00%
30.00%
20.00%
10.00%
0.00%
Strongly agree

agree

neither agree or disagree

help & convenient

Chart 13: SAP ERP is more helpful and convenient then older system
Interpretation
From the above graph we can conclude that 50% of the respondents agreed that new system is
more helpful & convenient than older one while 40 % of the respondents strongly agreed to it
and only10% of them neither agree nor disagree to it. So we can say that maximum employees
have agreed to it that the new system is more helpful and convenient to use than the older one.
Q-12 Do you think that SAP ERP has helped in taking quick decisions?
help in taking decision
Table 11: SAP ERP has helped in taking quick decisions
Frequency

Percent

Valid

Cumulative

Percen

Percent

Yes

27

90

90

90

No

10

10

100.0

Total

30

100.0

100.0

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Interpretation
Table result shows that 90% employees think that SAP ERP has helpedin taking quick decision
because of faster delivery and less chance of error in business process of the organization of the
DM and only 10%of the employees think that SAP has not helped in taking quick decisions.
Q-13 Do you agree that SAP ERP helps the organization to speed up the transaction process?
50.00%
45.00%
40.00%

percent

35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
100%

75%

50%

speed up transaction process

Chart 14: SAP ERP helps the organization to speed up the transaction process
Interpretation
Here 43.3 % respondents completely (100%) believed that SAP ERP has helped the organization
to speed up the transaction process and provide the faster service while 33.33% respondents
believed that SAPERP has helped the organization to speed up the transaction process up to 50%
and 23.3% respondents believed that SAP ERP has helped the organization to speed up the
transaction process up to 75% so we can say that they can do their work easily and fast compared
to older system.

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Q-14 Does SAP ERP maintains transparency and control of the organization?
Table 12: transparency & control
Frequency

Percent

Valid Percent

Cumulative Percent

Yes

26

86.7

86.7

86.7

No

13.3

13.3

100.0

Total

30

100.0

100.0

Interpretation
Here the result shows that 86.7% of the employees think that SAP ERP maintain transparency
and control of the organization of the DM and13.3% employees think that SAP is not maintain
that transparency and control. Because of the lack of knowledge of employees they are having
only limited knowledge of their field.
Q-15 Do you agree that SAP ERP has reduced work load of employees?
Frequency

Percent

Valid Percent Cumulative Percent

Strongly agree

10

33.3

33.3

33.3

Agree

20.0

20.0

53.3

26.7

26.7

80.0

20.0

20.0

100

10

100

100

neither agree nor disagree

Disagree
Total

Table 13: SAP ERP has reduced work load of employees

Interpretation
From the above graph we can conclude that 33.3% of the respondents strongly agreed to it that
new system has helped in reducing work load of employees than older one while 20 % of the

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respondents agreed to it and 26.7% of them neither agree nor disagree to it. Only 20% of the
respondents disagreed to it. So we can say that maximum employees have agreed to it that the
new system is more helpful and convenient to use than the older one and this has helped in
reducing work load of employees.
One Sample t-Test:
Null Hypothesis (HO)
: There is no significant difference between calculated mean and hypothesized mean (1). In other
words, we can say that the respondents are strongly agreed that SAP ERP has standardized
process.
i.e. Ho: x = = 1
Alternative Hypothesis (H1): There is significant difference between calculated mean and
hypothesized mean. In other words, In other words, we can not say that the respondents are
strongly agreed that SAP ERP has standardized process.
i.e. H1: x ,i.e. H1: x 1
Significance level: 0.05
Table 14: One-Sample Statistics

Reduce work load

Mean

Std. deviation

Std. Error Mean

30

2.33

1.155

.211

Table 15: One-Sample Test

Test Value = 1
T

df

Reduce

6.32 29

work load

Sig.(2-

MeanDifferenc

95% ConfidenceInterval of

tailed)

theDifference

.000

1.333

Lower

Upper

.90

1.76

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Interpretation
Here the test is performed at 95% confidence level i.e. the chance of occurring type 1 error is 5%
and the p-value comes out as 0.00 which is lesser than 0.05, at the hypothesized mean value 1, it
means that the null hypothesis H0 is rejected and alternative hypothesis is accepted and it can be
said that there is significant difference between calculated mean and hypothesized mean. So, we
can say that respondents are strongly agreed that SAP ERP has reduced work load of employees.
This level is not so strong but it is nearer to positive response.
Q-16 Do you think that implementation of SAP had increased an efficiency of the organization?

increase an efficiency

above 60%

30%-60%

below 30%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

percent

Chart 15: SAP had increased an efficiency of the organization

Interpretation
The above result show that after the implementation of the SAP ERP26.7% of the employees
believe that believe that the overall efficiencyof the organization had increase above 60%. While
60% of them saidthat the efficiency level increased between 30%-60% and the rest13.3% of
them said that the overall efficiency level has increasedbelow 30%. So from that we can say that
most of the respondentsagreed to that the overall efficiency level increased between 30%-60%

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Q-17 Do you agree that SAP ERP services areavailable as & when required?
Table 16: services are available
Frequency

Percent

Valid Percent

Cumulative Percent

Yes

14

46.7

46.7

46.7

No

16

53.3

53.3

100.0

Total

30

100.0

100.0

Interpretation
Here 46.7% respondent says that SAP ERP services are available as and when required but
53.3% respondent says that SAP ERP services are no available as and when required because of
server problem.
Q-18 Do you agree that the employees of the organization have quickly adapted to changing
environment?

Adopt change in environment

3%
13%
27%

100.00%
75.00%
50.00%
25.00%

30%

0.00%
27%

Chart 16: The employees of the organization have quickly adapted tochanging environment

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Interpretation
Here 26.67% of the respondents agreed that the due to the implementation of SAP ERP has
adapted completely (100%) and also the same respondents believe that at 75% level the
employees of the organization have quickly adapted to the changing environment. While30%
respondents believed that at 50% level and the other 13.33% and3.33% respondents believed that
at 25% and at 0% level the employees of the organization have quickly adapted to the changing
environment. So we can say that because of technical knowledge and lack of training only
26.67% of the employees have completely adopted the changing environment.
Q-19 Do you think that SAP ERP system and processes are user friendly?
User friendly
Frequency

Percent

Valid Percent

Cumulative Percent

Yes

18

60.00

60.00

60.0

No

12

40.00

40.00

100.0

Total

30

100.0

100.0

Table 17: SAP ERP system and processes are user friendly
INTERPRETATION
Here 60 % respondent says that SAP ERP system and processes are user friendly
but 40 % respondent says that SAP ERP
system and processes are user friendly. So we can say that the employees do not have the proper
knowledge of using the software.

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Q-20 Do you think that there is a need of any expert needed to train new employees?
Table 18: needed new training
Frequency

Percent

Valid Percent

Cumulative Percent

Yes

16.67

16.67

83.33

No

25

83.33

83.33

100.0

Total

30

100.0

100.0

INTERPRETATION
Here 16.67% of respondent says that there is need of expert to train new employees and 83.3%
of respondent says there is a need of expert to train new employees because they are well trained
during implementation and knowledge of senior respondent and another thing the system is well
developed as per requirement

Q-21 Did you attend any training course during theimplementation?

Attended any Training

25
count

20
15
10
5
0
Yes
No
attened any training

Chart 17: attend any training course during the implementation

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Study of SAP in Dainik Bhaskar Group.

INTERPRETATION
Here only 5 of respondents says that they attend any training courseduring the implementation
and 25 of respondents says that they didnot attend any training course during the implementation
So we canconclude that maximum no of employees were denied of the trainingactivates to be
provided by the organization

Q-21 & Q-1 involved * attend any trainingCrosstabulation

Table 19: involved * attend any training Cross tabulationCount
attend any training

Total

yes No
Involved

before implementation
After implementation

Total

20

11

18

19

25

30

18
7

15

count

10

no

yes
no

yes

Before implementation
involved

CHART 18: INVOLVED AND ATTEND ANY TRAINING COURSE.

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Study of SAP in Dainik Bhaskar Group.

INTERPRETATION
Here before implementation of SAP 7 respondent says that they havenot taken any training and 4
respondents says they have taken trainingand after implementation of the SAP
Q-22 What is your current feeling do you think youneed new or refreshing training courses in
the use of SAP?

Need new training

yes

No

7%

93%

CHART 19: CURRENT FEELING FOR NEED NEW TRAINING

INTERPRETATION
Here there is 93.3% of respondent says that they want new and refreshing training courses in the
use of SAP and only 6.7% respondent says that there is no need for new or refreshing training
courses in the use of SAP thus according to the result we should provide new and refreshing
training courses in the use of SAP to motivate our respondent.
There were many comment were received on this subject to explain the reasons why the new or
refreshing courses needed. In general, these topics were from many different aspect: some of the

respondents claimed that they needed new SAP training course, because there were not repeating

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Study of SAP in Dainik Bhaskar Group.

courses frequently provided so that there was lack of opportunity to participating in these courses
or specification SAPcourses related with work in practice; and some respondent would like to
have advanced SAP training course in order to have a better using of SAP system.

Q-23 which are the most suitable and acceptable training platforms for you at moment?

training
60.00%

56.70%

50.00%

count

40.00%
26.70%

30.00%
20.00%

13.30%

10.00%

3.30%

0.00%
physical attention

virtual

self

all the above

attened any training

Chart 20: Type Of Training

Interpretation
Here the result shows that 56.7 % respondent wants to seek physicalattention to lecture .it
considered as very traditional way of study ,asscientifically approved that it was the most
efficient and effective way to study. and 26.7% respondent says that they want all type of
trainingas (physical attention to lecture, virtual, self study and E-learning) andthe least
percentage that is 3.3% respondent says that they like self study type of training.

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Study of SAP in Dainik Bhaskar Group.

Q-1 & Q-2 involved * improved any area Crosstabulation

Table 20: involved * improved any area Cross tabulation
Count
attend any training

Total

yes No
Involved

before implementation
After implementation

Total

11

15

19

19

11

30

16

15

14
12

count

10
8

7
yes

6
4

no

4
2
0
Before implementation
involved

Char 21: involved * improved any area Cross tabulation

INTERPRETATION
From the cross tabulation result shows that employees who previously use to work without SAP
system does not find any change even after implementation of SAP. There are in all 7 employees
who think this.

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Study of SAP in Dainik Bhaskar Group.

5.3 DATA ANALYSIS OF PRIMARY DATA (CASE STUDY)

DB Corp which stands for Dainik Bhasker cooperation is one of the leading newspaper Company
in India. It is a group of a newspaper companies working simultaneously at different state in
India
Case study is based on one of the group of DB that is DM which stands for Divya Marathi. DM
is a special Marathi newspaper formed by DB group for Marathi people in Maharashtra by
providing all the aspect of news as well as Maharashtra culture. DM is a part of the DBgroups
overall strategy of establishing presence in both the upstream and downstream segment reader.
The company is committed to provide news and update as fastest as possible.
DM is a huge company which a huge data base to handle. Managing the data & resources are of
upmost important for all the company to survive intense competition. DM previously used to
manage the data by according it in FoxPro. FoxPro used to help the company manage the data
only to a limited extends. Centrally management of the same data was not possible through
FoxPro. Also all the oprations are not performed very well.
As we know DM has its finance departments located in the Panipath district of Hariyana & the
rest are located in Jalgaon at Maharashtra and at all offices of DM. It is more important that the
data of Panipath and all another offices finance department are linked or can say connected to
each for the progress and to make effective decision making. DM also need to be connected to
DB corp and DM as there are major groups that requires help of & are helpful to DM. So data of
DM also needs to be transferred to these groups.
Through FoxPro this linkage or connective was not possible or say was not effective and so
management becomes a hard task for DMgroup. Routine transactions were not available
immediately or on the regular basis due to FoxPro due to some software limitation.
In 2005 the company had a hard discussion to solve this problem facing the company so that they
can move fast in the race with the competitor. After a long decision and taking the suggestion of
all members the company decided to adept an ERP program. ERP is an enterprise resource
planning which help in storing all information in a central device software through which any
department can get any kind of information from anywhere & at any time.

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Study of SAP in Dainik Bhaskar Group.

FIGURE 17: Timetable SAP ERP system implementation of DB

For ERP to run or manage effectively the company was in search of a software which can help in
storing & updating of data which can be accessed through anywhere at any time. ERP software
were many but out of them the one which headed 1st in the line was SAP. SAP which stands for
systems, applications, products in data processing. SAP business suit allows employs, customer
& business partner to work together from anywhere at any time. Looking at the advantages of
SAP DB adapted SAP as the one which could help it to solve the problem of managing the
inventory that it was facing.
DM brought SAP ERP software package which were from SAP business suit category which
was designed for large enterprise. After adopting SAP it provided training which it named as Eprint to employee so that they can make the best use of the new technology. It took one year time
to reengineer the organization as it had to transfer all the data from FoxPro to SAP. The
reengineering period was a time at which the company has to face a hard challenge. Wipro was
the company which provided DB with the SAP software. Employee were teaching to adept SAP,
but to add to fire Wipro change it client server which lead to a more problem for the company.
Employee again had to learn the software because the changes in the client server lead to a major
technological change in the software. It was in the year 2008.
DB employees were learning to adopt the new SAP technology butwith the passage of time
recently almost 50% of employee who were member of E-Print training have left or are retired
from the company and the new employee coming in the organization does not have adequate
knowledge about SAP software.

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Study of SAP in Dainik Bhaskar Group.

Training to the new employees of the company is not being provided for the same & so the new
employee has to rely or their seniors to provide them the same knowledge. Seniors are coprating and provided and helping their junior but still the basic knowledge of the same is not
being had by the new employees. They just have limited knowledge about SAP which helps
them to do their daily work but adding if they face any other problem besides the daily one they
become blank on the same. New employees and seniors employees both are demanding training
for the same so that they can help the company to progress on a larger and quick scale.
In the print media DB group is unique after adopting the SAP technology. SAP has integrated
technology with the help of this technology, all the tools and software are integrated and
connected with all the branches. Therefore it makes easy keep on prototype of the news paper
design. As shows follows

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Study of SAP in Dainik Bhaskar Group.

PICTURE 18: demonstration of design

DB wants to progress using SAP it is very important for them to provide a detail training to all
its employees which will wider their knowledge in a way helpful to the company.

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Study of SAP in Dainik Bhaskar Group.

Summary Of Case Study:

DB is a huge company which a huge data base to handle. Managing the data & resources
are of upmost important for all the company to survive intense competition.

It is more important that the data of Pan path and all offices are linked or can say
connected to each for the progress and to make effective decision making.

In 2005 the company had a hard discussion to solve this problem facing the company so
that they can move fast in the race withthe competitor.

Looking at the advantages of SAP DM adapted SAP as all the newspaper published under
DB group has definite design as prototype.

After adopting SAP it provided training which it named as E-Print to employee so that
they can make the best use of the new technology.

Employee again had to learn the software because the changes in the client server lead to
a major technological change in the software. It was in the year 2008

Training to the new employees of the company is not being provided for the same & so
the new employee has to rely or their senior's to provide them the same knowledge.

They just have limited knowledge about SAP which helps them to do their daily work but
adding if they face any other problem besides the daily one they become blank on the
same.

New employees and seniors employees both are demanding training for the same so that
they can help the company to progress on a larger and quick scale.

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6. Findings
This project report attempted to answer the following question: ADESIGNING
IMPROVEMENT AFTER IMPLEMENTATION OF SAP IN DAINIK BHASKER GROUP
Through an analysis, it was determined that:

After the implementation of SAP ERP process in DM, employees feel that more training
sessions are required as ERP software has very vast applications.

After the implementation of SAP ERP process in DM, the oldemployees who had taken a
training courses they as very satisfied and the new employees are trained under those old
employee.

After the implementation of SAP ERP process in DM, paperwork is not eliminated but
has been reduced up to some extent.

After the introduction of SAP ERP productivity has increased.

SAP ERP has reduced workload of employees.

SAP ERP system is better than the older system as it is more user-friendly and has
integrated all departments thus making work easier.

Understanding of SAP ERP process helps in decision making.

Employees do not adapt quickly to the changing business environment of SAPERP. It

takes some time to adjust to new environment.

An ERP implementation is not simply a large IT implementation project-it is a sizable

organizational project. Organizational benefits will not be achieved if the enterprise focuses on
the technical aspects only. Information technologies cannot by itself influence the productivity of
acompany. The main efficiency factor lies in the way people use these technologies. Many
information strategies fail for ignoring this issue.

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Study of SAP in Dainik Bhaskar Group.

7. Recommendations
Following suggestions were made to improve the effectiveness of SAP ERP process:

Required level of training should be given to employees. Training must stress the need
for more disciplined work habits and make it clear that even simple mistakes can create
consequences in other areas. Regular training should be a strong feature.

More training sessions should be given to employees regarding SAP ERP process as it
has very vast applications. Everyone must become familiar with new roles, revised
processes, and new control mechanisms.

Reports and returns as well as query system need to be strengthened.

Training regarding Application Tracker should be given since itworks as a window to get
the correct status of processing of forms applied in the SAP ERP process such as
reimbursement, advances & allowances.

Feedback of the users of SAP ERP process should be addressed properly through training
sessions.

Overall training sessions & workshops should be provided onquarterly basis to the SAP
ERP process owners of eachdepartment.

Process owners should be made aware of the new updating inSAP ERP process at regular
basis either through mails orworkshops, whichever is required.

Top management should formulate some guidelines on how toreduce the paper-work.

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Study of SAP in Dainik Bhaskar Group.

8. Conclusion
EPR system integrate supply chain management, customer relations management, manufacturing
function, warehouse management, human resources, and financials functions, and loyout of
paper in to one system. By using ERP system, company gain more ability of improving
productivity and profitability. Numerous of companies have tried to adopt the ERPsystem to
operate their business processes. DM is one large organization that applied the ERP system for
improving the core competency.
The implementation of ERP system was not easy task to complete. Especially for DM. The
implementation process of the system was very complex and time consuming. Because of the
good preparation and efficiency of the investment of the ERP project. The organization
successfully replaced the older operation system with the new SAP ERP system.
Managing and developing the new ERP system are the challenges to the organization today. In
order to reach the ultimate goal of the optimizing the business benefits from its ERP system,
there are still some change needed.
DM really need more SAP training courses to offer all SAP users. The result of the survey
showed that most of the SAP users did not receive enough training courses needed during and
implantation of the new SAP system, further on they are willing to take more training courses.
the lay out module added by DM is very important it helps to be unique in the print media.

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Study of SAP in Dainik Bhaskar Group.

Bibliography:
Books

Sankar Chetan S., Rau Karl-Heinz

Implementation strategies forSAP R/3 in a multinational organization, E-Book

Anderson George W.
Sams Teach Yourself SAP in 24 Hours, E-Book

Journals And Magazines

DM manuals

Employee Handbook

Website

http://www/sap.com

http://www.dainikbhaskargroup.com

http://www.dainikbhaskargroup.com/dainik-bhaskar.php

http://www.aberdeen.com/research/comp/whtpaper/1998/sap1/sap1.htm

http://www.cio.com/archive/enterprise/011598_erp_content.html

http://www.sap.com/solutions/business-suite/index.epx

http://www.sap-basis-abap.com/sapgeneral/sap-cost-benefit-analysis.htm

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Study of SAP in Dainik Bhaskar Group.

Questionnaire For Sap Users In DM

I am Shruti Chaudhari,Pursuing MBA from G. H. Raisoni Institute of Information
Technology,Jalgaon. As a part of our curriculum, I am working on as research
project A

s t u d y

o f

implementation of SAP in DB

I seek your kind cooperation in this regard & request you to fill up
thequestioner. This study is for academic purpose only. No in formationshall be
disclosed anywhere else.
The questionnaire is absolutely anonymous and contains only
2 4 questions.
Our testing suggests that survey will take approximately 5-10 minutesto complete.
We do appreciate your time and support.

Name:

Working since(year/month)

Age:

Post:

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Study of SAP in Dainik Bhaskar Group.

A)Implementation
1)Were you involved in implementation process of SAP in DM?

I was in my position before implementation began

I was hired during the implementation

I was hired after SAP implementation

2) D o y o u s e e a n y i m p r o v e d a r e a c u r r e n t l y i n S A P , e i t h e r i n software
itself or functions related to it?

If YES , please list main topic

1 _____________
2_____________
3_____________

NO

3)What are the missing functions in your current SAP system? o

If YES , please list main topics

1______________
2______________
3______________

4)Do you agree that SAP ERP has standardized

b u s i n e s s process?
Strongly Agree O O O O O Strongly Disagree
B)SAP in DM today and tomorrow
5)On average , how often do you use SAP related with
y o u r work:

Once a month

Once a week

2-5 hours a week

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Study of SAP in Dainik Bhaskar Group.

2-5 hours a day

All the time

Other ____________

6)Do you think SAP is optimal choice for the DM?

YES

NO

7 ) I f yo u c o u l d m a k e t h e d e c i s i o n t o d a y , w o u l d yo u c o n t i n u e using SAP?

YES

If NO, what are the main reason ,select all that apply:

Not suitable for our needs

Technical issues

Data issues

Quality of the software

L a c k

o f

u n d e r s t a n d i n g

o f

t h e

s o f t w a r e s capabilities

Conflict with other system

Inadequate training

Customizing

Other_____________

C) Service through SAP ERP effectiveness

8)Do you think that SAP ERP has reduced time & provides faster delivery of service?
Completely O O O O O Not at all
9) Do you think that Productivity has increase after theintroduction of SAP ERP?

If YES

Below 30%

30%-60%

Above 60%

NO

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Study of SAP in Dainik Bhaskar Group.

10)Do you agree that Chances of error have been

r e d u c e d with the introduction of SAP ERP?

YES

No

1 1 ) D o y o u a g r e e t h a t S A P E R P i s m o r e h e l p f u l a n d c o n v e n i e n t then
older system?
Strongly Agree O O O O O strongly Disagree
12)Do you think that SAP ERP has helped in taking
q u i c k decisions?

YES

NO

1 3 ) D o y o u a g r e e t h a t S A P E R P h e l p s t h e o r g a n i z a t i o n t o s p e e d up the
transaction process?
Completely O O O O O Not at all
14) D o e s S A P E R P m a i n t a i n t r a n s p a r e n c y a n d c o n t r o l o f t h e organization?

Yes

NO

15)Do you agree that SAP ERP has reduced work load
o f employees?

Strongly Agree O O O O O Strongly Disagree

16)Do you think that implementation of SAP had increased

a n efficiency of the organization ?

If YES,

Below 30%

30-60%

Above 60%

NO

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Study of SAP in Dainik Bhaskar Group.

17)Do you agree that SAP ERP services are available

a s & when required?

YES

N0
(P.T.O)

1 8 ) D o y o u a g r e e t h a t t h e e m p l o y e e s o f t h e o r g a n i z a t i o n h a v e quickly
adapted to changing environment?
Completely O O O O O Not at all
19)Do you think that SAP ERP system and processes are
u s e r friendly?

YES

NO

2 0 ) D o y o u t h i n k t h a t t h e r e i s a n e e d o f a n y e x p e r t n e e d e d t o train new
employees?

YES

NO

D)Training
3 0 ) D i d

y o u

a t t e n d

d u r i n g

t h e implementation?

a n y

t r a i n i n g

If YES, please specify what king of training?___________

NO

c o u r s e

22)What is your current feeling do you think you need new

o r refreshing training courses in the use of SAP?

If YES , please specify what kind of training ____________

NO
(P.T.O)

2 3 ) Which are the most suitable and acceptable trainingplatforms for you at moment ?

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Study of SAP in Dainik Bhaskar Group.

Physical attention to lectures

Virtual training ( video conference)

E- learning

Self study ( material provided by SAP administration)

Other___________

Give your idea to make organizations process more effective.

Specify your suggestions for improvement, if any:

Thank you for your participation in our survey.

94