Madras Cement, Ltd

This case follows Madras Cement Company's tenacity in its effort to implement a complex computer system to control costs. Madras Cement is a leading cement producer in southern India. The commodity nature of the cement industry makes cost efficiency the most important aspect of competition. Madras Cement could not control costs due to inefficient, insufficient reporting processes. Attempts to improve the processes through enterprise resource planning (ERP) did not work. Madras Cement's management applied lessons learned from the failed ERP implementation in a second ERP initiative. This time, it reaped substantial benefits. The case illustrates the process of championing ERP implementation in a complex diversified conglomerate. The case, particularly, highlights the significance of the social transformation realized by Madras Cement's team while implementing a solution after an initial unsuccessful attempt. Process redesign, change management, and top management support are discussed.