Digital transformation journey of Hero MotoCorp
Digital transformation is no longer a matter of choice that an organization can make; it is inevitable
There is an immense focus on using analytics and machine learning for predictive maintenance, increasing operational efficiencies and forecasting demand
Companies in the manufacturing sector generate huge amount of data but are not able to leverage the same to speed up innovation, boost efficiency and customize products for an ever-more demanding customer. Software and Information Technology (IT) capabilities can be leveraged significantly in the realm of manufacturing – from ideation, modeling and simulation to testing, selling and after-sales service. At Hero MotoCorp, the areas where digitization has taken place include customer insight & reach, operational efficiencies & productivity, and in developing new business models. For a mobility-focused company, the drivers have been:
- Technology Push: Affordable wired & wireless communities, and advanced technologies such as sensors, HMI, connected devices and analytics
- Consumer Pull: Consumers who have adapted to digital technologies and the ones who want to remain connected
- Socio-Economic Forces: Increasing competition and blurring industry boundaries.
Digital transformation, therefore, is no longer a matter of choice that an organization can make.
In today’s wired world, it is inevitable. At Hero MotoCorp, the three areas elucidated above have received multiple initiatives of Digital Transformation. On the customer front, the entire experience of purchasing a product is getting digitized with opportunities to place an order through an online B2C marketplace. The after-sales experience is now available through a Hero Xperience app which tracks service coupons, due dates, maintenance and also monitors the vehicle performance over a period of time. We are also looking at creating an Xperience club and Community of Hero Bikers, where one can refer friends and win exciting merchandise.
There is an immense focus on using analytics and machine learning for predictive maintenance, increasing operational efficiencies and forecasting demand. Human Machine Interface and connected machines in our manufacturing facilities are helping to enhance productivity, quality and precision. 3D Manufacturing is being leveraged in prototyping, simulations and testing on one end, while “Digital Kano Model” is being used to classify product attributes and how they are being perceived by customers. We also keep ourselves abreast of the latest developments in the digital space to refine and align our business strategy with the emerging consumer behavior and mobility trends.
All our manufacturing facilities including the latest and most modern plant – Garden Factory at Neemrana, the Global Parts Center (GPC) and the Center of Innovation & Technology (CIT) are shining examples of the progress that we have made towards digital designing and manufacturing. In a categorical validation of this, the Time Magazine recently bestowed the ‘Manufacturing Innovator of the Year, 2016’ award to Hero MotoCorp, which is a testimony to the advanced digitization implemented at Hero.
Implications of the change to the business
Digitization in business has certain implications on the people front with respect to creating a technology savvy culture and improving digital IQ. This in turn brings its own set of challenges, because people take time in moving towards digitization. Research shows that it is only 2% of people, in our context employees, who are early adapters and this is the core group which one should leverage to impact the remaining 98% of the organization. Identifying those 2% and involving them in the entire process would define how successful an organization is in the digitization journey.
With digital transformation, however, there are few emerging challenges that organizations grapple with in the way talent is acquired, developed and groomed, and how social platforms are leveraged to enable collaboration within the organization. At Hero MotoCorp, we are implementing a SAAS-based Integrated Talent Management Platform, which not only touches the lives of the Internal Talent Pool but also the available talent pool outside of the organization. This multi-pronged strategy is focused on identifying the emerging competencies and skills by embedding them as a part of our talent development and acquisition framework. Also social media is being leveraged to build Brand of Hero in the mind-space of potential talent as well as partners.
As we look ahead to a generation of increasingly younger workforce within the Hero MotoCorp family, we also realize the power of social platforms in enabling collaboration amongst employees and enhancing their skills while seeking expert views through communities of practice.
HR interventions at Hero MotoCorp
Building a 'Digitally Savvy' innovative workforce that appreciates, understands and leverages digital medium to its fullest potential in the space of customer connect, production and the way knowledge is shared and disseminated. We are focusing on interventions to promote innovation, allow employees to come up with ideas on our products, services and business models through several initiatives like Idea Contest, Scenario Planning, Innovation Cell etc.
Leveraging technology to enhance the use of digital medium through automation of work processes and systems. This includes leveraging social media for hiring, web-based technologies for capability building, subscriptions to MOOC’s as well as analytics that drive decision-making around people processes. Adapting analytics to HR processes to enhance predictability of outcomes is another area of focus.
Implementation of a social platform - to build knowledge networks and communities around expertise areas for regular feedback and inputs on people processes to build an organization of the future.
Implementing a cloud-based Integrated Talent Management Platform, called ìmySuccess - to digitize end-to-end Talent Management process to help retain right people in right roles; and engage, enable and empower them to be future leaders. This will enhance the employee experience – right from the time they get into the ecosystem of Hero MotoCorp, till the time they remain in the organization.
As an organization that has embarked on this journey some time back, we have moved quite rapidly and we are now at the cusp of the growth phase. Technologies such as Cloud, Mobility, Social and Analytics are being leveraged not only from a customer connect or manufacturing, design, prototyping perspective but also for our people centric processes. From a people-process perspective, we are currently leveraging technology to:
- Align employee behavior and engagement with the organizational vision
- Retain right people in right roles and engage, enable and empower them to be future leaders
- Establish an employee-friendly platform with user-friendly and intuitive interfaces that appeal to the current/emerging generation of workforce
- Ensure easy accessibility from anywhere through smart devices
- Provide on-demand data to decision makers through a collection of metrics, analytics and people processes
- Minimize risks related to Talent Management processes
- Reduce cycle time for HR processes
We are clearly focused on the impact that digital transformation is having on the customers, stakeholders, associates and the society at large and we continue to measure the same. The interventions being carried out at Hero MotoCorp around enablement and acceleration of digital transformation are being measured through multiple metrics. This not only includes measuring Digital IQ, Productivity Improvements, Quality of Decision Making, and Engagement Levels in the organization, but measuring the ‘Social Impact’ that each employee is creating within the organization. We will continue to invest in our digital processes that will not only enhance employee experience at Hero MotoCorp but also ensure their journey is engaging, rewarding and motivating.