“PROJECT ON SUCCESS STORIES BASED ON STRATEGIC MANAGEMENT OF MAHINDRA & MAHINDRA” Master of Commerce Semester- I
2015-2016
Submitted In Partial Fulfilment of the reuirements reuirement s For the a!ard of de"ree of M#Com
%$Seat &o#
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(olani (o lani Colle"e of Commerce Sher-e-Pun)ab Societ%* +ndheri ,ast.* Mumbai - /000
C(IFIC+(
(his is to certif% that Ms# Shirle% Mar3s of M#Com Semester I ,2015-2016. has successfull% com4leted the Pro)ect on Success Stories $ased on Strate"ic Mana"ement Mana"eme nt of Mahindra Mahindra7 under the "uidance of Prof# Ms# San"eetha Pande%#
Pro)ect 8uide 9- Ms# San"eetha Pande%
Course Co-:rdinator 9- Ms# Sadhana ;en3atesh
Princi4al 9- =r# +# +# ashid
=C>++(I:&
I Ms# Shirle% Mar3s the student of M#Com Semester-I ,2015 ? 2016. hereb% declare that I ha@e com4leted the 4ro)ect on Success Stories $ased on Strate"ic Mana"ement of Mahindra and Mahindra7 in the course '<<<<<<< <<<<< <<<<<<<<<## (he information submitted is true and ori"inal to the best of m% 3no!led"e# eferences ha@e been cited !hene@er necessar%#
=ate 9- Ath :ctober 2015# Place 9- Mumbai
Si"nature of Student
,Shirle% Mar3s.
+CB&:>=8M&(
Pre4arin" the 4ro)ect on Success Stories $ased on Strate"ic Mana"ement of Mahindra and Mahindra has "i@en me e
I !ould li3e to than3 our Princi4al =r# A. A. Rashid * for his @aluable su44ort in 4re4arin" this 4ro)ect#
I e<4ress m% dee4 sense of "ratitude to the Course Co-:rdinator* Ms# Sadhana ;en3atesh for the @aluable "uidance and su44ort durin" m% 4ro)ect !or3#
I am than3ful to m% "uide Ms# San"eetha Pande% for 4ro@idin" me the "uidance throu"hout the course of this 4ro)ect# I am also than3ful to her for her 4atientl% and criticall% e@aluatin" the content of this 4ro)ect#
I !ould li3e to ta3e this o44ortunit% to e<4ress m% "ratitude to all the staff of librar% and Com4uter >ab for their su44ort#
Mahi"da & Mahi"da
hat is State#ic Ma"a#e$e"t' Strate"ic Mana"ement is all about identification and descri4tion of the strate"ies that mana"ers can carr% so as to achie@e better 4erformance and a com4etiti@e ad@anta"e for their or"aniDation# +n or"aniDation is said to ha@e com4etiti@e ad@anta"e if its 4rofitabilit% is hi"her than the a@era"e 4rofitabilit% for all com4anies in its industr%# Strate"ic mana"ement can also be defined as a bundle of decisions and acts !hich a mana"er underta3es and !hich decides the result of the firm7s 4erformance# (he mana"er must ha@e a thorou"h 3no!led"e and anal%sis of the "eneral and com4etiti@e or"aniDational en@ironment so as to ta3e ri"ht decisions# (he% should conduct a S:( +nal%sis ,Stren"ths* ea3nesses* :44ortunities* and (hreats.* i#e#* the% should ma3e best 4ossible utiliDation of stren"ths* minimiDe the or"aniDational !ea3nesses* ma3e use of arisin" o44ortunities from the business en@ironment and shouldn7t i"nore the threats# Strate"ic mana"ement is nothin" but 4lannin" for both 4redictable as !ell as unfeasible contin"encies# It is a44licable to both small as !ell as lar"e or"aniDations as e@en the smallest or"aniDation face com4etition and* b% formulatin" and im4lementin" a44ro4riate strate"ies* the% can attain sustainable com4etiti@e ad@anta"e# It is a !a% in !hich strate"ists set the ob)ecti@es and 4roceed about attainin" them# It deals !ith ma3in" and im4lementin" decisions about future direction of an or"aniDation# It hel4s us to identif% the direction in !hich an or"aniDation is mo@in"# Strate"ic mana"ement is a continuous 4rocess that e@aluates and controls the business and the industries in !hich an or"aniDation is in@ol@edE e@aluates its com4etitors and sets "oals and strate"ies to meet all e
em4lo%ees in a manner !hich ma
!ith the hel4 of strate"ic mana"ement# (hus the em4lo%ees can )ud"e the im4act of such chan"es on their o!n )ob and can effecti@el% face the chan"es# (he mana"ers and em4lo%ees must do a44ro4riate thin"s in a44ro4riate manner# (he% need to be both effecti@e as !ell as efficient# :ne of the ma)or role of strate"ic mana"ement is to incor4orate @arious functional areas of the or"aniDation com4letel%* as !ell as* to ensure these functional areas harmoniDe and "et to"ether !ell# +nother role of strate"ic mana"ement is to 3ee4 a continuous e%e on the "oals and ob)ecti@es of the or"aniDation#
State#ic Ma"a#e$e"t Pocess/ (he strate"ic mana"ement 4rocess means definin" the or"aniDation7s strate"%# It is also defined as the 4rocess b% !hich mana"ers ma3e a choice of a set of strate"ies for the or"aniDation that !ill enable it to achie@e better 4erformance# Strate"ic mana"ement is a continuous 4rocess that a44raises the business and industries in !hich the or"aniDation is in@ol@edE a44raises its com4etitorsE and fi
1# E"(io"$e"ta* Sca""i"#0 n@ironmental scannin" refers to a 4rocess of collectin"* scrutiniDin" and 4ro@idin" information for strate"ic 4ur4oses# It hel4s in anal%Din" the internal and e
factors that are the root of 4resent strate"ies* measurin" 4erformance* and ta3in" remedial correcti@e actions# @aluation ma3es sure that the or"aniDational strate"% as !ell as it7s im4lementation meets the or"aniDational ob)ecti@es# (hese com4onents are ste4s that are carried* in chronolo"ical order* !hen creatin" a ne! strate"ic mana"ement 4lan# Present businesses that ha@e alread% created a strate"ic mana"ement 4lan !ill re@ert to these ste4s as 4er the situation7s reuirement* so as to ma3e essential chan"es#
Strate"ic mana"ement is an on"oin" 4rocess# (herefore* it must be realiDed that each com4onent interacts !ith the other com4onents and that this interaction often ha44ens in chorus#
A!out Mahi"da & Mahi"da
Mahindra and Mahindra >imited ,MM. is an Indian multinational automobile manufacturin" cor4oration headuartered in Mumbai* Maharashtra* India# It is one of the lar"est @ehicle manufacturers b% 4roduction in India and the lar"est manufacturer of tractors across the !orld# It is a 4art of Mahindra 8rou4* an Indian con"lomerate# It !as ran3ed as the 10th most trusted brand in India* b% (he $rand (rust e4ort* India Stud% 201/# It !as ran3ed 21st in the list of to4 com4anies of India in Fortune India 500 in 2011# (heir fla"shi4 com4an% is IndiaGs 4remier utilit% @ehicle ,H;. and farm eui4ment ma3er# (he% en)o% a trul% "lobal 4resence toda%* !ith their @ehicles tra@ersin" roads* 4a@ed and un4a@ed* in +ustralia* uro4e* >atin +merica* lar"e 4arts of +sia* and South +frica# Mahindra is the lar"est sellin" tractor brand* b% @olume* in the !orld# Jou !ill find our tractors culti@atin" dreams in all the continents on earth# Since assemblin" their first @ehicle in 1/K* the%7@e "ro!n ra4idl%# (he% commenced their e<4orts in the 160s* and toda%* %ou !ill find their @ehicles and tractors in all si< continents of the !orld# Its ma)or com4etitors in the Indian mar3et include Maruti SuDu3i* (ata Motors* +sho3 >e%land* (o%ota* L%undai* Mercedes-$enD ,Merc. and other
Histo+ Mahindra Mahindra !as established on :ctober 2* 1/5 !hen B#C# Mahindra @isited the Hnited States of +merica as Chairman of the India Su44l% Mission# Le met $arne% oos* in@entor of the ru""ed G"eneral 4ur4ose @ehicleG or ee4 and had a flash of ins4iration9 !ouldnGt a @ehicle that had 4ro@ed its in@incibilit% on the battlefields of orld ar II be ideal for IndiaGs ru""ed terrain and its 3utcha rural roads# S!ift action follo!ed thou"ht# (he Mahindra brothers )oined hands !ith a distin"uished "entleman called 8hulam Mohammed# +nd* Mahindra Mohammed !as set u4 as a franchise for assemblin" )ee4s from ill%s* HS+# (!o %ears later* India became an inde4endent nation and Mahindra Mohammed chan"ed its name to Mahindra Mahindra# 8hulam Mohammed mi"rated to Pa3istan 4ost?4artition and became the first Finance Minister of Pa3istan# Mahindra Mahindra is the onl% Indian com4an% amon" the to4 three tractor manufacturers in the !orld# (he 8rou4 has a leadin" 4resence in 3e% sectors of the Indian econom%# (he 8rou4 em4lo%s o@er 50*000 4eo4le and has se@eral state?of?the?art facilities in India and o@erseas# Mahindra Mahindra has com4rehensi@e manufacturin" facilities !ith hi"h le@el of @ertical inte"ration# Caterin" to the SectorGs di@erse customer base s4annin" rural and semi urban customers* defence reuirements and lui"ht commercial @ehicles and !heelers are manufactured at the Naheerabad 4lant in +ndhra Pradesh and three?!heelers at the Larid!ar 4lant#
(L $HSI&SS ++ :F (L C:M+P&( SP+=S (: 9 Auto$oti(e secto
(he com4an% manufactures mar3ets utilit% @ehicles* li"ht commercial @ehicles that includes three !heeler @ehicles* namel%E Scor4io* $olero* Cham4ion and man% more# (he com4an% also e<4orts its 4roducts to se@eral countries in uro4e* +frica* South +merica* South +sia and the Middle ast# MM has a tie u4 !ith enault for 4roduction mar3etin" of >o"an# Mahindra International is into 4roducin" truc3s and buses# (he com4an% has entered into a )oint @enture !ith &a@istar for 4roduction of diesel en"ines truc3s#
Fa$ e1ui)$e"t
MMGs farm eui4ment se"ment has 4resence in si< continents and has a !orld!ide net!or3 of A00 dealers #Its total combined 4roduction ca4acit% is 1*50*000 tractors a %ear from countries li3e India* HS+* China and +ustralia# (he com4an% is also into a"ri business# Tade2 Retai* & Fi"a"ce
Mahindra7s Intertrade =i@ision 4ro@ides steel steel related ser@ices# It offers steel ra! materials* metals* Ferro allo%s* etc# It also 4rocesses Cold olled 8rain :riented ,C8:. and Cold olled &on 8rain :riented ,C&8:. steels that are reuired for transformers com4ressors# Mahindra etails is into distribution business and has tie u4 !ith bi" names li3e >e"o* =isne%* Mattel and others# Mahindra Finance is into financin" of tractors and other @ehicles and is also into Insurance bro3in". I"%astuctue
MM has also entered Infrastructure de@elo4ment that o4erates in real estates* SNs* hos4italit%* 4ro)ect en"ineerin" and desi"n# Hnder this it has created Mahindra Lolida% esorts* Mahindra >ifes4aces Mahindra orld Cit%# I"%o$atio" Tech"o*o#+
(ech Mahindra 4ro@ides solutions ser@ices to telecommunication ma)ors namel% +lcatel* +((* $(* Con@er"%s* ricsson and :2* amon" others# It is also into business 4rocess and technolo"% consultin" ser@ices throu"h $ristle# S+stech
It is into su44l% of automoti@e com4onents# It 4roduces for"ed and for"ed machined com4onents* "ears and com4osites. S)ecia*it+ Busi"ess
Hnder this di@ision it has com4anies li3e Mahindra =efence* en"a"ed in manufacturin" defence related @ehicles Mahindra +shtech#
40 years ago... and now: How M&M was driven to innovate
:n :ctober K* Mahindra Mahindra ,MM.* Fla"shi4 Com4an% of the O16#5 billion Mahindra 8rou4* announced the acuisition of the loss-ma3in" scooter business of French automobile ma)or Peu"eot# (he transaction !ill hel4 Mahindra (!o heelers "ain scale* and both com4anies 4lan to le@era"e each otherGs stren"ths#
(his is not the first time MM is "ro!in" its business @ia acuisitions# In /0 %ears* MM has 4erfected the art of combinin" inno@ation and acuisitions to "ro! from a sin"le-4roduct com4an%* the famous ee4* a fe! decades a"o to a multi-4roduct con"lomerate !ith a "lobal reach#
(he inno@ation and acuisitions has hel4ed MM "ro! to an Indian multinational !ith s A5*000 crore of mar3et @alue# It lo""ed in s K/*000 crore re@enue and s /*00 crore of 4rofits for fiscal 201/ in the last t!o decades#
Most of MMGs acuisitions are uite recent relati@e to its K0-%ear histor%# It too3 Pun)ab (ractors in 200K to become a !ell-entrenched 4la%er in the tractor se"ment# In 200* it bou"ht crisis-ridden Sat%am Com4uters and mer"ed it !ith its technolo"% arm (ech Mahindra# In 2010* MM bou"ht Ssan"%on" in South Borea to "et into the international mar3ets# >ater* the com4an% sa! an o44ortunit% in the electric car se"ment and too3 o@er e@a in 2010# (o "et into the hi"hl% com4etiti@e t!o-!heeler se"ment* Mahindra bou"ht Binetic scooters in 200A and has no! to44ed it b% bu%in" Peu"eotGs scooter business#
Jet acuisitions !ere not the foundation of MahindraGs success stor%9 It !as inno@ation# +nd almost e@er%
inno@ation !as born follo!in" a crisis.
In 1K* at the 4ea3 of oil crisis* Mahindra !as left !ith no o4tion but to come out !ith a ne! en"ine for its best-sellin" model - ee4# +s oil 4rices Doomed u4 from O to O12* the com4an% had )ust fe! months to shift from its orld ar II- era 4etrol "uDDler Lurricane en"ine to a diesel en"ine#
From sellin" 1/*000 ee4s in 1K* Mahindra !as sellin" )ust K*000 @ehicles !ithin )ust three-and-a-half %ears b% 1K6# MahindraGs inno@ation s3ills came to its rescue as the com4an% assembled a team under its director Bumar Sardesai to con@ert its hi"h-4o!er* lo! s4eed* tractor en"ine to a hi"h-4o!er* hi"hs4eed diesel en"ine# (he en"ine !as an instant hit because rural mechanics found it easier to ser@ice the ee4 since locals !ere @er% familiar !ith the Mahindra tractor en"ine# ecalls $harat =oshi* =irector* MM9 (hat en"ine continued in o4eration in our utilit% @ehicles as late as the %ear 2000# So* an inno@ation born out of necessit% actuall% became a lon"-term demand and com4etiti@e ad@anta"e for us#
=urin" the oil crisis* Mahindra had t!o com4anies9 the auto com4an% that !as sufferin" from the lo! milea"e of Lurricane 4etrol en"ine and the tractor com4an% !hich !as haemorrha"in" due to re"ulator% reuirements and 4rice controls# (he tractor com4an% !as unable to sell 4roducts because the "o@ernment !as dictatin" the sellin" 4rice e@en !hen the costs !ere shootin" u4 due to the se@entiesG h%4er-inflation#
(han3s to inno@ation* both com4anies sur@i@ed# Mahindra (ractors sim4l% started sellin" its en"ines to MahindraGs auto com4an%* !hich !ere fitted on its ee4s# (his is the abilit% and =&+ of the "rou4* to fi"ht and emer"e !inners in a difficult en@ironment and !hen odds are a"ainst us* sa%s =oshi# Similarl%* as 4assen"er @ehicles sales started "oin" u4* Mahindra hit u4on another idea# In 2002* the com4an% launched its SH; ,s4orts utilit% @ehicle. - Scor4io* and follo!ed u4 !ith a better-loo3in"* u4"raded SH; - 'H;5:: in 2011# $oth @ehicles !ere instant success as the 4roduct ualit% !as hi"h and the 4ricin" !as ri"ht# Com4ared !ith ri@al (ata Motors* MMGs 4roducts !ere instant success stories# In the utilit% @ehicle se"ment* MahindraGs mar3et share is 6 4er cent a"ainst (ata MotorsG /# 4er cent in the +4ril-Se4tember half-%ear* accordin" to Societ% of Indian +utomobile Manufacturers# $ut MM has had its share of setbac3s too# (he com4an% had limited success in 4assen"er cars and failed to ma3e a dent in the se"ment in s4ite of maruee tie-u4s !ith Ford and enault.
8rou4 chairman +nand Mahindra sa%s in India e@er% com4an% should seed internal disru4tors to @ie! the same issue !ith different 4ers4ecti@e# :ne of the internal disru4tors that Mahindra has is the Shado! $oard# +ll Mahindra "rou4 com4anies are reuired to form a Shado! $oard made u4 of 4eo4le under 5 %ears of a"e* !ho meet e@er% uarter and beha@e as if the% !ere the board of Mahindra and discuss !hat the% !ould be doin" differentl%# :ne of the classic e
Success Stoies !ased o" State#ic $a"a#e$e"t o% Mahi"da & Mahi"da
S(+(8J F: :;+>> :;L+H> +( M+LI&=+ M+LI&=+ In all businesses toda%* ali"nin" human resource mana"ement !ith business strate"% has become an im4ortant element to succeed# +nd Mahindra Mahindra "rou4 is no different# :r"anisational restructurin"* mana"in" 3e% resource reuirements* 4erformance mana"ement s%stems* career and succession 4lannin" ha@e all been re-ali"ned to form s%ner"% !ith the com4an%7s o@erall business strate"%# + Choudhari* e
For the "rou4* or"anisational restructurin" 4osed the "reatest challen"e 3ee4in" in mind the chan"in" d%namics in the business es4eciall% the tractor and automoti@e di@ision# In the last three %ears* the em4hasis !as de@elo4ment of the lon" term strate"% and fi
de4artmentunit head* mana"erial and o4erational in 200# (his or"anisational restructurin" based on business needs !as later e
(he reassessment of or"anisational reuirements brou"ht in "a4s in terms of mana"ement resources# hile man% of the roles !ere filled throu"h internal 4romotions and 4arallel mo@es* certain "a4s li3e inabilit% of the senior mana"ement to fit in the role due to the ra4idl% chan"in" business en@ironment emer"ed# (herefore the com4an% be"an inductin" senior mana"ement resources from di@erse com4anies li3e 'ero<* Marico* nron* Lindustan le@er >td as !ell as from en"ineerin"* tractor and automobile sectors# (his enabled the com4an% to induct a talent 4ool !ith rich bac3"round !hich !as suitable to the chan"in" business reuirements of the "rou4# +lso in order to brin" in %oun" talent 3ee4in" in mind the lon" term ob)ecti@es* the "rou4 has started a formal Mana"ement (rainee Scheme throu"h cam4us recruitments# (he mo@e thre! u4 an interestin" obser@ation* that of acce4tabilit% of %oun" blood !or3in" initiall% at o4erational le@el )obs !ith older e<4erienced 4eo4le# (o a@oid the feelin" of animosit% and in order to build camaraderie* the "rou4 has 4ut in 4lace a Mentorin" s%stem* !here each mana"ement trainee has a senior eondon $usiness School and India School of $usiness - L%derabad# “(he idea is to ta3e
the mana"ement de@elo4ment 4ro"ramme to the lo!est le@el of the hierarch% to brin" out the leadershi4 4otential* !hich is e
+ 3e% L function at Mahindra "rou4 is the career and succession 4lannin"# (he ob)ecti@e of this function is to chart out a detailed career 4ath of each indi@idual at the senior most le@els# (he career 4ath ta4s both the stren"ths and !ea3nesses and as4iration of each indi@idual e
M+LI&=+ M+LI&=+7S S; ;I(H+>IN+(I:& SHCCSS S(:J For Mahindra Mahindra >td# ,MM.* its ser@er @irtualiDation efforts ha@e been a )ourne% to combat @arious issues* from cost to s4ace utiliDation# (his )ourne% started !ith Mahindra MahindraGs need to build a scalable infrastructure for itself as !ell as its "rou4 com4anies# :@er the %ears* MM* the fla"shi4 com4an% of Mahindra 8rou4* has transformed itself into a "rou4 that caters to Indian as !ell as forei"n mar3ets# (oda%* the or"aniDation has business 4resence in @ehicles* farm eui4ment* I( and infrastructure de@elo4ment# +s a result* in 200K Mahindra MahindraGs I( and strate"ic mana"ement team felt the need for scalable infrastructure to accommodate this business "ro!th# ith the increasin" need for scalabilit%* cost reduction and S+P consolidation* Mahindra Mahindra decided to set u4 a ne! "reen data centre at Bandi@ali in Mumbai# +t the time* Mahindra Mahindra had a hosted setu4 at eliance =ata Centre7s &a@i Mumbai facilit%* as !ell as an in-house data centre at Bandi@ali ,for its enter4rise a44lications* such as S+P. in Mumbai# (he data centre initiati@eGs main business ob)ecti@e !as to build u4 scalabilit% for Mahindra Mahindra as !ell as an% "rou4 com4anies# Cost !as another factor that led to the decision# In addition* mana"ement had become uite cumbersome* since eliance =ata Centre !as hostin" our ser@ers# e<4lains ;i)a% Maha)an* the "eneral mana"er of cor4orate I( at Mahindra Mahindra# =ri@en b% these needs* MM decided to create its o!n ser@ice-oriented infrastructure on the lines of ser@ice-oriented architecture# (his conce4t restricts itself to infrastructure s%ner"% for different a44lications to tra@erse# i4ro (echnolo"ies !as chosen as the data centre7s im4lementation 4artner#
Ser@er @irtualiDation came in as an o4tion at this time* since Mahindra Mahindra !anted to ta3e the "reen route for its ne! data centre# or3 on MMGs data centre started in late 200K# (he ne! data centre !as com4lete in three months* and it !ent li@e in March 200A#
Se*ectio" citeia
:nce ser@er @irtualiDation !as selected as the ne! data centre7s core dri@er* Mahindra MahindraGs Centre of
Mahindra MahindraGs ser@er infrastructure currentl% has A0 @irtual machines im4lemented on ei"ht 4h%sical ser@ers* in addition to @arious standalone ser@ers# (hese ei"ht 4h%sical ser@ers include a disaster reco@er% ,=. ser@er# (hree different ;M!are setu4s are in use at Mahindra Mahindra# (he first ;M!are setu4 consists of 12 S+P /#6$ ser@ers runnin" on a sin"le enter4rise-class ser@er attached to a dis3 enclosure# 8rou4 !ebsites that !ere earlier hosted at eliance =ata Centre no! run on se@en @irtual machines as 4art of the second setu4# Mahindra Mahindra has a ser@er re4lacement c%cle of four to fi@e %ears# Since the rollout of ser@er @irtualiDation* it has been able to rede4lo% obsolete 4h%sical ser@ers on @irtual machines on the third ;M!are setu4# (hese three @irtualiDed ser@er setu4s are mana"ed throu"h a sin"le console 4ro@ided b% ;M!are Control Centre# Cha**e"#es
hen Mahindra Mahindra started its ser@er @irtualiDation )ourne% t!o %ears bac3* the team faced challen"es such as a44lication conflicts# (he most common setbac3s on this front !ere bac3u4 issues# +ccordin" to Patil* these ha@e been sol@ed b% usin" t!o bac3u4 methodolo"ies# (he first a44roach uses MC Cor4#Gs >e"ato clients on the @irtual machines as a bac3u4 solution# Mahindra Mahindra also uses MCGs +@amar* an a44liance-based bac3u4 de@ice that com4letel% bac3s u4 the @irtual machines# +nother ma)or challen"e for Mahindra Mahindra !as the use of databases on ;M!are# (his challen"e is more from a licensin" 4ers4ecti@e than a technical 4ers4ecti@e# =atabases li3e :racle do not reco"niDe a @irtual machine as a ser@er# (his is a 4roblem since de4lo%in" these databases on a @irtual machine increases our costs# So !e are consciousl% not de4lo%in" databases on ;M!are* Maha)an sa%s# I: intensi@e a44lications ha@e been %et another challen"e# Since Mahindra Mahindra has not %et @irtualiDed the net!or3 la%er* all 12 S+P ser@ers share the same I:# (his creates challen"es !hen hi"h I: ha44ens on certain a44lications# ;M!areGs @S4here /#0 has an inte"rated @S!itch that sol@es this 4roblem* but it has %et to be de4lo%ed# Accui"# !e"e%its
(oda%* Mahindra Mahindra has been able to set u4 a hi"h-a@ailabilit% = infrastructure ,local failo@er scenario.* !hich has been made 4ossible due to ;M!are# (remendous sa@in"s ha@e also been accrued in terms of 4o!er and mana"ement* as !ell as o4timum ser@er utiliDation# In a standalone ser@er* the CPH utiliDation is at the most 20 4ercent# =ue to @irtualiDation* the utiliDation has "one u4 to 60 to K0 4ercent# &o!* the 4h%sical ser@er count has come do!n and mana"ement is easier since %ou are focusin" on the solution throu"h a sin"le console# $esides* lesser the number of ser@ers* lesser is the reuired 4o!er and coolin"* Patil sa%s# (he annual mana"ement cost ,+MC. cost of old hard!are has also come do!n substantiall%# arlier* S+P archi@al data ser@ers had to be maintained for se@en to ei"ht %ears* escalatin" the +MC of 1 ser@ers alon" !ith the licenses# (his cost "ets eliminated !hen it is 4ut on a sin"le ser@er# In addition* load balancin" is easier no! since more resources can be ra4idl% allocated to the @irtual en@ironment# 5oo6i"# i"to the %utue
+lthou"h S+P has been @irtualiDed usin" local 4artitionin"* Mahindra MahindraGs I( mission for the near future is to de4lo% these a44lications !ith the same a""ressi@eness as ;M!are# (his !ill ma
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