Case Study on Dyokovan – How to use IT in Business
Abstract
This case study details the use of Information Systems to enable Dyokovan to use Theory of constraints(first formulated by Goldratt) to create a ‘market driven’ pull system. This has helped Dyokovanto increase the availability of products in the market, revenue growth and satisfy the customer need through use of Information Systems. The integration of business processes (e.g. the supply chain) with information systems plays a crucial role in the success of the company.
Introduction
Consumer durables goods and FMCG companies rely heavily on efficiently reaching the consumer. While replenishing the product is a priority, tracking the sales and updating the stores with the stock are of paramount importance. Information systems have enabled companies to track sales and inventory information efficiently and replenish the products at faster rate. The sales data helps to identify the market trends such as the products liked by the customers, fast moving products, slow moving products etc. This concept has been explored in this case study on Dyokovan.
Dyokovan Industries
Dyokovan Industries Limitedis the one of the largest wristwatch manufacturer of the world and India’s leading producer of watches under the Dyokovan, MultiTrack, MakuSa, Bekula, HaaJiga, Mebalika, Dostane&Rilikarist brand names. Its product portfolio includes watches, accessories and jewelry, in both contemporary and traditional designs. It exports watches to about 32 countries around the world with manufacturing facilities in multiple locations in India and manufactures precious jewellery under the Kailopachobrand name, making it India‘s only national jewelry brand.
Dyokovan relies heavily on gathering inventory information from the consumer facing stalls and Dyokovan’s own stores branded as World of Dyokovan. Procuring the information is vital for Dyokovan to replenish stock in shops. Dyokovan uses Information systems efficiently to get real time information to trigger shipping of the product to the store. The system is very robust and it integrates the POS software with SAP using the symphony software.
When a product is sold in a store the system POS system automatically triggers the ware house to replenish the stock which in turn triggers the symphony System of manufacturing unit to trigger manufacturing order in SAP ERP system .“Symphony” software also predicts the sudden increase demand and automatically adjusts the stocks to be maintained in each storage levels
Information Systems Implementation at Dyokovan
Dyokovan earlier used SAP ERP system to cater the ‘push’ system where in which the products are manufactured based on the sales forecasts and the products will be produced and dumped in to the market.
Dyokovan took a strategic decision to change from Push system to Pull system and implemented the TOC process ably supported by a software called Symphony which enabled it to manage its operations and product quantity replenishment in the stores based on the sales data.
Dyokovan has recently implemented their Dymphonetsystem. Dymphonet is a suite of applications that integrates together to form a holistic TOC solution that interfaces with the ERP system of a company. The strength of all applications is their simplicity: they are easily deployed, learned and used. They direct the correct use of TOC and hence they streamline TOC work processes. The core of the application is the buffer management module. It is interesting to note that the study on effectiveness of the pilot implementation of TOC process is completed.
While the marketingtheories are strictly followed while managing the marketing of such products, it is interesting to see how the deployment of information systems across the organization affects the overall performance of the same. Also effective supply chain management is crucial for the success of the organization and information systems have played an active role in this context also. Further, how the deployment affects the models for strategic analysis also remains to be seen.
Note: This is a proxy case study prepared for class room teaching. This has been prepared by Dr. Arpan Kar. There is no intention to highlight any company policy but to provide a basis for classroom discussion. Dr. Kar writes regularly at Business-Fundas.
Category: Business
