With a substantial share in the Indian paints retail space, Kansai Nerolac Paints Limited (KNPL) decided to utilise telecom as a tool to set itself apart from competition. The company took steps to upgrade its basic communications set-up to one that enables a streamlined flow of information, improved network connectivity and enhanced productivity.

tele.net takes a look at the development of KNPL's telecom infrastructure...

Background

The erstwhile Gahagan Paints and Varnish Company Limited was incorporated in 1920. In 1930, three British companies merged to form the Lead Industries Group and, in 1933, it acquired the entire share capital of Gahagan Paints to form Goodlass Wall (India) Limited. The company later came to be known as Goodlass Nerolac Paints, which underwent many changes and is today a wholly owned subsidiary of the Kansai Paint Company. The company was renamed KNPL in 2006.

Legacy system

Prior to 2000, the company made use of a simple IT and telecom infrastructure. All the departments of its corporate office were connected via a local area network and the computers were connected to a single computer which had limited functionality.

In addition, the company made use of plain old telephone systems as well as email for external communication. The organisation's spread was limited in its early days, and its telecom needs were also relatively simple. Usage was restricted to basic telephone lines and email. This was common for all its outlets, with no common platform for integration of data.

However, as the company's business expanded and competition intensified, KNPL realised that it needed to adopt IT infrastructure that would facilitate efficient and contemporary work practices and optimise workflow.

The shift

KNPL's agenda was simple –­ to implement a robust and integrated communications infrastructure that would enable information flow on a real-time basis and transform its function-based legacy systems into a process-based organisation.

Therefore, the company zeroed in on network components such as multiprotocol label switching, virtual private network, leased line, very small aperture terminals and the internet.

These components enabled KNPL to connect all its sales offices and factories across the country, allowing online transaction processing and response backed by a state-of-the-art storage device.

Apart from wide-area networks, KNPL made use of other applications as well. It started using web hosting, video and audio conferencing as well as instant messaging in addition to using standard email. Video conferencing provided the retail major with an economical method of communicating with its various offices.

Moreover, its managed network and security services yielded multiple benefits, which included reduced operational costs and improved service levels. These services also allowed the company to focus on its key competencies.

Also, the company implemented several software and web-based applications including enterprise resource planning (ERP), supply chain management, business intelligence, knowledge management and vendor portal. The ERP package helped KNPL streamline many of its processes. The package contained a number of modules that simplified the company's production processes and made its supply chain more transparent.

Three technologies were used for internet access. These included optic fibre and wireless connectivity. For wireless, radio frequency provided by Tulip was used.

Challenges in implementation

While the process of implementing the new infrastructure was relatively troublefree, the company has several lingering concerns. Increasing costs of equipment and technology are a major concern, which, the company feels must be addressed by operators and vendors.Keeping up with the rapid evolution and introduction of new technologies in the market is also a challenge.

Benefits

KNPL has been able to integrate all the information collected from its branch offices onto one platform. This has helped the company plug the earlier gaps in its information flow. It has been able to expand its portfolio and reach out to customers, both old and new.

In addition, the earlier data discrepancies that led to faulty analysis and inaccurate decision-making have been eliminated, thereby enabling the company to take well-informed and analysed decisions.

With its data and information transfers now functioning smoothly, the company has been able to carry out its day-to-day activities more efficiently.

Net, net, by stepping up its IT and telecom infrastructure, the company has been able to improve and enhance its overall productivity and efficiency.