What is Project Parivartan? Here's what you need to know as Tech Mahindra and HAL bag Rs 400 Crore deal

Tech Mahindra has inked a deal with Hindustan Aeronautics Ltd to implement ERP systems to support HAL’s Project Parivartan at a value of Rs 400 Crore. Under the work agreement, the IT services major will focus on implementing Enterprise Resource Planning software for HAL’s Project Parivartan over the period of the next nine years. The project aims to centralise HAL’s distributed ERP for the entire organization. This will, thus, ensure seamless and streamlined functioning of business processes.

“As a system integrator, Tech Mahindra will implement ‘Project Parivartan’ over a period of nine years at cost of Rs 400 crores”, read a statement from HAL. “Tech Mahindra will be responsible for the transformation and modernization of the ERP system. The company will be focussing on transforming the distributed application into a centralised one for all the 20 divisions and R&D Centres of HAL. This includes centralised ERP Turnkey Solution to meet HALs business requirements with the implementation of SRM, CRM along with select non-ERP applications,” the statement also added.

Sujit Baksi, President Corporate Affairs and Business Head Emerging Markets, Tech Mahindra further said that this project will serve the Indian Armed Forces efficiently and effectively. "This project will transform HALs ERP system, serving the Armed Forces efficiently and effectively," Baksi said in HAL's statement.

This project will digitize the Indian aeronautics industry. While the industry is already having multiple digital advancements, the distributed processes hinder the smooth functioning. The main goal of Project Parivartan will be to bring together all the decentralised processes. This project will ensure quick data flow between terminals, enabling faster and informed decision making.

About Project Parivartan

Currently, 22 of HAL’s Divisions have implemented ERP application. The major modules that work on the ERP application are distribution, maintenance, repair and overhaul, human resources, payroll, service management, enterprise asset management etc. Apart from ERP, these divisions also have several in-house applications and reporting platforms that ensure proper transfer of information where it is required at different levels in an organization.

Now, a few divisions where the ERP is not implemented also depend on these in-house developed applications and reporting platforms. Since these applications are decentralised, the smooth functioning of various business processes gets hindered. The processes cannot be executed smoothly. Monitoring also becomes a tedious task. Hence, to meet these challenges, HAL has initiated ‘Project Parivartan’. Under this project, all of HAL’s divisions will be equipped with a centralised ERP. This will help HAL to standardise and streamline business processes across all levels. Also, it will enable the organization to adopt the best practices that are being followed in similar industries.

The major features of this ERP Solution are:

1. Standardization and integration of business processes and systems across to HAL. The main aim is to deliver business value by combining data to achieve operational excellence.

2. Generating early warnings on exceptions and also, provide alerts using Business Intelligence tools to enable informed decision making, the quicker turnaround time for financial transactions, reporting analysis, feedbacks etc.

3. Integrating planning mechanism for outsourcing, procurement etc. The planning mechanism will be based on targets and associated constraints to ensure on-time delivery. Also, this will enable improved utilization of resources.

4. Optimizing, automating and simplifying processes by using intelligent data capture devices like Barcode scanners etc.

5. Integrating ERP with other applications like biometric attendance systems etc. This will also provide enterprise-wide visibility of relevant information.

6. Integration of Supply Chain Management functionalities with ERP to ease collaboration and thus achieve improved supply chain efficiency.

7. Implementation of Corporate Governance and Risk Compliance (GRC) norms for achieving transparency and adherence to regulations.