BSNL ERP Project

Benefits
April 6, 2010

BBP Status Summary

#

Module

No of BBPs

Completed

Signed-Off

1 Materials Management (MM / SRM)

2 Human Capital Management (HCM)

23

16

3 Finance & Controlling (FICO)

26

25

16

4 Real Estate Management (REM)

5 Sales & Distribution (SD)

6 Project Systems (PS)

7 Plant Maintenance (PM)

8 Production Planning (PP)

9 Quality Management (QM)

Complete

Partially Complete
2

Flag

BBP Highlights: FICO

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

1.

General
Ledger

Organisation Structure

Three levels organisation structure

Circle, SSA, Line of business
Financial Statements available at all
three levels
Reports on Taxation for optimum
CENVAT utilisation
General Ledger always reconciled
with Sub ledgers
Fast Period End close

Circle by State; merge non

territorial circles with territorial
circles for taxation purposes
initially and later on for
financial accounting
perspective.

Reduction in number of accounts

head; shall be with in 800 GL
Accounts. Other dimensions for
detailed reporting e.g. cost centre
etc.

Finalise Chart of Accounts.

Taxation

General
Ledger

Number of GL Accounts

In SAP, each bank account requires

multiple GL accounts. Different
category for bank accounts as
number is huge.

Reduce number of bank

accounts by centralisation of
operation bank accounts at
circle level and collection
account at SSA level by
utilising the core banking
platform of banks, if possible.

BBP Highlights: FICO

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

3.

Expenses

Recording of cost at various

levels i.e. Network Element,
Exchange, SDCA, Circle etc.

Maintenance cost tracking at

Network element level;
Operational cost expenses at
exchange and BTS level;
Payroll and AMC cost at SDCA
Level;
Common cost at SSA and Circle
level

Basis of allocation to be
decided for deriving cost by
services, product and LOB.
Matrix needs to be designed
to ensure the allocation of
cost based on nature of cost
at different levels. Usage
details of each network
element by different product
and services is required to be
captured by technical team.

4.

Budgetary
checks

Capital Budgeting
Operation Budgeting

Transactions proposed to be carried

out has to be within the budget
allotments. Tracking of transaction
takes place based on commitments /
liabilities instead of existing payment
based system.

Budgeting Process by Line of

Business

4 4

BBP Highlights: FICO

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

5.

Accounts
Payable

Vendor Master Data

maintenance
Invoice Posting
Payments

Centralised Master data

maintenance of vendor to avoid
duplicity,
Financial Liability will be created at
the time of Goods receipt or Service
receipt
Three way check for invoice
verification

Payments should be
centralised as far as possible
at circle level; as is the case
in most of the telcos &
leading organisations.

6.

Asset
Accounting

Asset types
Different depreciation rules
Relationship with Plant
Maintenance for
maintenance

Assets defined by components as

per IFRS
Different depreciation areas for tax,
book & IFRS reporting

Historical Data clean up;

Reconciliation with Books of
Accounts.
Identification of assets as per
components to comply with
IFRS reporting requirement.

BBP Highlights: FICO

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

7.

Revenue
Accounting

Fixed Line WLL (F),

Telephone, PCO,
Broadband

Reduction in number of GL codes by

defining COPA characteristics and
value fields

Interface required to be
developed for following billing
systems :

Mobile WLL (M), GSM

Reduced manual Intervention

CDR System, DOTSOFT

Kennan System, Elite Core

System based reconciliation

Can be automatic if bank

provides data in SAP format

Leased Circuit

8.

Banking

Bank Reconciliation

Centralised payments can

help in reducing number of
operational bank accounts

BBP Highlights: MM / SRM

# Process

Designed Process as per

BBP

1 Master Data

Material master
Vendor master
Service master
Purchasing Info record
Source list

Key Business Benefits

Supplier
Registration
Process

Vendor Registration
process

Next Steps / Initiatives

required

Better management of Master Data :

Materials, Vendors, Services, Material
Informed Decision making through data
visibility across BSNL : Pricing history
Consistent data & reporting :Unique
code for every Material & Vendor
across BSNL
Lesser manual intervention & point of
errors: Seamless Integration of Material
master with Production, Accounting,
Planning, Sales and Plant Maintenance.

Better Supplier Relationship

Management

Centralized Master Data

Management team
Consolidation and
alignment of different
masters
Policy and guidelines for
creation / change of
masters

Supplier Registration in
SAP
Centralized Supplier
registration validation
team.

BBP Highlights: MM / SRM

Process

Designed Process
as per BBP

Key Business Benefits

e-Tendering
Process

Tendering Process

Cycle time reduction

Transparency
Quicker Supplier
response
Reduction in accounting
effort through online
payment.

Next Steps / Initiatives required

e-Tendering policy/ guidelines to be

framed by BSNL.
Awareness campaigns for Bidders on
e-tendering.
BSNL to arrange for Payment gateway
for online submission of tender fees
Digital signature software required to
be provided by BSNL
Bidders should have a legally valid
class 3 digital certificate as per Indian
IT Act from the licensed Certifying
Authorities operating under the Root
Certifying Authority of India (RCAI),
Controller of Certifying Authorities
(CCA) of India.

BBP Highlights: MM / SRM

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps /
Initiatives required

Inventory
Management

Goods Receipts
Rejection and Returns
Transfer Postings
Goods Issue
Physical Verification for
Stock Materials
Returnable and NonReturnable Gate Passes
Stock Transfer
Scrap Handling

Integration with Finance, projects,

maintenance, production , inbound
and outbound movements, quality,
and taxation
Stock Visibility at all levels till SDE
Standard process for Stock
allocation/ diversion and transfer in
entire organization
Optimum utilization of available
inventory through stock diversions
Visibility of Maintenance Spares

Alignment of existing
stock with new
inventory codes
Unused capitalized
spares to be maintained
as inventory

BBP Highlights: HCM

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

Payroll

Active Processing of
Payroll and Posting to FI to
happen at Circle Level

Centralization of Standard Services

Like payroll execution leading to
higher Productivity

The Central team to run the

payroll will have to be created
and trained. This team can be
physically located at one
place.
Process for this team to
interact with DDOs and
obtain clearance to run the
payroll will have to be
created.

Standardization of Payroll Process

and remove inconsistencies
Accurate accounting of Payroll
Costs
Segregation of Duties
2

Employee Self
Service
process ( leave
application,
claims, travel)

Process like leave

application, claims and
travel application etc will
happen online

The cycle time and the accuracy of

data will be immensely enhanced as
the employee can initiate and track
the process himself/herself.
Standardization of the process will
be achieved

Organizational
Management

Recommended Structure of
BCG is going to be
implemented

Facilitation center /Kiosks will

be required to be set up for
applying leave and other self
service transaction on behalf
of people who cant access
ESS ( Employee Self
Service)

Accurate accounting incase of

financial transactions

Training of the people who

will be carrying out this
activity

The Structure various Verticals and

Horizontals ( HR, Finance etc) will
be clearly depicted
New reporting structure would be
depicted

Alignment of the present

structure at Circle /SSAs for
executives and nonexecutives would need be
completed before data is
migrated in SAP

10

BBP Highlights: Sales and Distribution

#

Process

Designed Process as per

BBP

Key Business Benefits

Next Steps / Initiatives

required

Consumer
Mobility
Channel Sales

Sales Order Creation

Customer details
Products and services
Value

Higher Visibility of First Point of

Sale and revenue recognized.

Process and norms of credit

limit to be defined by BSNL.

Accurate tracking of inventory

update at first point of sale

Credit limits to be defined for

Franchisees / Customers as a
function (multiple) of Bank
Guarantee obtained.

Telecom
Factory

Scrap Sales

ALTTC
Services

Outbound Delivery Creation

Only or material sold to customer
Details of Consignee
Material and Quantity
Stock update in the storage
location
InvoiceInvoice will be created in
Consumer mobility-Channel Sales,
Scrap sales, Telecom factory,
ALTTC services,

Centrally available comprehensive

details of Customers for
-Franchisee/DSA/Post office and all
other prepaid products
-Telecom Factory customer
-Scrap customer
-ALTTC Services
Availability of historic data for First
point of Sales data for all pre-paid
products in one centralized sap data
base

Details of customer, Material,

Prices and taxes, Revenue update
in Finance will be captured

11

First Point of Sale to

Customers shall be done only
up to the credit limit.
First point of Sale of all
prepaid products to be
processed through SAP.

BBP Highlights: Sales and Distribution

#

Process

Designed Process as per

BBP

Key Business Benefits

Next Steps / Initiatives

required

Enterprise
Business

Lead Tracking

High visibility and tracking of all the

leads for Enterprise Business across
all BSNL locations.

Project Planning / Execution

Project Monitoring
Project Closure

One integrated database for

-online revenue recognition
-online inventory update at first point
of sale
-High visibility on SI performance
-Higher visibility on costs and
revenues

Sales Funnel information available

online to all relevant personnel.
Reduced cycle time for persuasion /
transfer of lead.
High visibility on performance of
sales personnel and channel
partners.
Centrally available comprehensive
details of Customers for Enterprise
Business.

12

Identification of customers
group wise (Platinum, Gold,
Silver)
Lead identification and
tracking in SAP.
List of sales personnel
(NAM/KAM) and channel
partners as per the
respective Nodal centers
will be required to be
maintained in SAP.
Every Project will be
assigned a unique project
code and assigned project
manager.
Milestones for the projects
need to be planned and
updated regularly to
monitor the progress from
SAP system.
Reservation / Purchase
Requisition for project
materials and services is to
be entered in the SAP
system referring to unique
project number.

BBP Highlights: Real Estate Management

#

Process

Designed Process as
per BBP

Key Business Benefits

Next Steps / Initiatives

required

1.

Tower
Lease

Master Data for Towers

Master Data for Business
Partner
Contract Master

Visibility of assets for

commercial use
Accurate periodic invoicing
Better Asset use due to availability
of Occupancy / Vacancy
Reports
Better visibility /control of
Maintenance Costs
Better monitoring of Revenue and
Expenses

Centralised Invoicing and

Account management

Master data for buildings

taken on lease/ owned
buildings
Owned Buildings can be
leased out
Contract Master with the
vendors/ Customer

Availability of Occupancy / Vacancy

Reports
Optimum use of assets
Vacant assets for
commercial use

Framework for commercial

exploitation of owned assets
Business model for leasing
out of vacant buildings
Source of Revenue from
new business stream

Master data for Staff

Quarters; Holiday Homes;
Inspection Quarters;
Community Halls

Availability of Occupancy / Vacancy

Reports
Optimum use of assets
Vacant assets for
commercial use

For both activities

Tower Leasing Out
Tower Leasing In

2.

3.

Building
Lease

Staff
Quarters
etc.

Accurate periodic invoicing and

Payments

Allocation Process
Accurate periodic invoicing to
external parties and incoming
payments
13

Business model for leasing

out of Staff quarters etc.
Source of Revenue from
new business stream