Automation, 5G, IoT and  the future of automobiles

Thought leader in information technology and the auto-business, always taking a long-term vision and recognizing trends and shifts quickly, Rajesh Uppal Member Executive Board (HR &IT) outlines his thoughts on evolving role of the CIO and technology.

Technology professional and IT evangelist, and a futurist at heart. Rajesh Uppal is a name that resonates with the Indian automotive industry. He drives both the IT and HR functions at Maruti Suzuki India Limited. With over three decades of experience in the field of IT, he has made significant contributions to the sector, bringing about digital transformation and innovation in the traditional manufacturing process.

Uppal has also been instrumental in driving Maruti Suzuki’s foray into electric vehicles, a crucial step in the company’s journey towards sustainable mobility.

Industry 4.0 and the emergence of smart factories have led the shift from the sector being mechanical and analogue to being technology-driven. It received a further impetus with emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT).

A veteran who has left an indelible mark on the Indian automotive industry technology and beyond. Rajesh Uppal, Member Executive Board (HR &IT), Maruti Suzuki India in a tête-à-tête with Minu Sirsalewala, Executive Editor – Special Projects, Dataquest.

In this interaction we delved into various aspects of the evolving CIO role, his vision, and about technology at Maruti Suzuki India.

As a veteran of the industry how have you seen the role of a CIO transition over the past 30 years, and do you see the trend for a CDO (Chief Data Officer) becoming more prominent?

We operate in a dynamic and fast-paced business ecosystem that continues to evolve rapidly. This VUCA world (which is an acronym for Volatile, Uncertain, Complex, Ambiguous), has made the role of a Chief Information Officer (CIO) even more prominent. From a limited operational role earlier, they now undertake strategic decision-making for strengthening and securing company information and formulating its technological roadmap. The CIOs further drive digitalization initiatives, innovation and enable new business models within the company, thus becoming change agents for people as well as the organization.

At the same time, there is increasing prevalence of data-based decision making and new opportunities in the digital space. A Chief Data Officer (CDO) ensures proper management of data as “One fact One place” and facilitates data driven decision making with right tools and technologies. Data has also been used as a foundation to develop digital initiatives like the company’s Subscription Marketplace, Finance Marketplace, which are a few key milestones in the Company’s digital transformation journey.

As both roles hold immense importance, it is important that both co-exist and complement each other to drive the growth of the organization.

How do you see the role of a CIO evolving in the next 5-10 years, particularly in the context of Industry 4.0 and the increasing importance of digitalization in the automotive industry?

Increasing digitalization and the shift towards Industry 4.0 have had significant impact on working of the automotive industry. As a result, the role of a CIO also evolved. From being exclusively technology leaders, to business leaders driving innovation and change in the organization.

In the coming years, CIOs will be required to operate in “two mode IT”, focusing on both operations and maintaining the company’s digital systems, as well as introducing new technologies to meet business objectives. This will require close collaboration and partnership with other C-level executives and business leaders. The CIO must lead digital adoption and stay updated on developing technologies and recent advancements by establishing networks and collaborations. As digitalization continues to have an impact on the automotive industry, the CIO will play an increasingly crucial role in ensuring the company’s competitiveness and success.

In your experience, how has the relationship between CIOs and other C-level executives, such as the CEO and COO, changed over time?

From being considered merely as technical experts, CIOs are now recognised as strategic partners who can deliver business impact by aligning technology with the company’s vision and mission.

Today’s CIOs collaborate closely with other C-level executives to share corporate values and resources to foster a positive environment throughout the company. Promoting an open culture and transparency in business processes, they encourage collaboration and drive innovation and creativity in the organisation.

What has been the most significant technological change you have seen in the automotive industry during your tenure as CIO?

Industry 4.0 and the emergence of smart factories have led the shift from the sector being mechanical and analogue to being technology-driven. It received a further impetus with emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT).

Digital transformation has enhanced both employee and customer experience. The adoption of digital technologies has equipped employees to execute tasks with enhanced efficiency and productivity, while customers enjoy immersive experiences through augmented and virtual reality.

How have you navigated and adapted to the rapid pace of technological advancements in the industry?

Following a top-down digital governance policy, Maruti Suzuki employed a variety of processes to maintain agility and responsiveness to keep pace with rapidly evolving and complex technologies and ensure a unified approach to digital transformation.

The company has established a dedicated Digital Enterprise division to streamline its approach to emerging technologies and facilitate quick adaptation to changing market conditions. Further, this team collaborates with startups and academia to identify opportunities for co-creation of mobility solutions. Additionally, the Center of Excellence (CoE) helps prepare the employees to quickly adapt to fast-changing and complex market situations, helping the company stay ahead of the curve and to rapidly identify and respond to emerging trends and opportunities.

Further, the company established a progressive plan for upskilling and reskilling its workforce in partnership with online and offline education partners like Coursera.

Maruti Suzuki also acknowledges that the rapid adoption of new technology might result in security concerns and vulnerabilities. As a result, the Company has created a comprehensive security strategy to enable identification and mitigation of any security threats.

The pandemic also played a role in accelerating mindset change. Employing a business mindset for technology implementation helped it reap RoI through better productivity and efficiency.

In your opinion, what emerging technologies have the potential to disrupt the automotive industry in the next 5-10 years?

First, new business models enabled by technology will revolutionise customer experience in the automotive sector. Maruti Suzuki Subscribe, Maruti Suzuki Smart Finance, and Smart Parking initiatives are a case in point. For example, Smart Parking will utilise IoT and Big Data to optimise parking and traffic management, hence reducing congestion and enhancing overall customer experience. These models will generate new revenue streams for automakers while giving customers more flexible and cost-effective options.

Second, there will be an increased prevalence of connected vehicles and location-based services. With the emergence of 5G and the Internet of Things (IoT), automobiles will offer real-time information to drivers on traffic conditions, accidents, and weather, enabling them to make better judgements.

Third, automation will emerge as a crucial change agent, enabling autonomous driving, predictive maintenance, and remote diagnosis. To realise the full potential of new technologies, companies must be adaptable, innovative, and resilient.

Fourth, beyond digital, the emphasis will shift to Employee Experience (Ex) and Customer Experience (CX). In a crowded and competitive industry, these will become prominent differentiators to generate and sustain brand equity and customer trust.

Can you tell us about any specific technological advancements or innovations that Maruti Suzuki has recently implemented or is currently working on?

In an effort to improve customer experience, Maruti Suzuki has rolled out several customer facing solutions. These efforts have been supplemented by digitalizing 24 out of 26 touchpoints in the customer purchase journey. Further, IoT and Data platforms have helped the company to take data driven decision making and facilitating global adoption of digital products for seamless operations.

Under MAIL programme, the company joined hands with startups to execute several projects to co-create solutions relevant to the automobile industry. These solutions helped the company enhance customer delight. Partnering with startups at various levels of incubation has enabled it to use open innovation for faster adoption of cutting-edge solutions.

Investing in team members’ growth and career advancement creates opportunities for engagement and motivation, while fostering a culture of continuous learning and growth necessary for success in this fast-paced sector.

Maruti Suzuki has also been exploring newer ways for customers to engage with the brand and experience products through NEXAVERSE and ARENAVERSE, which redefine the car buying experience through the Metaverse. By harnessing the power of the Metaverse, the company has been able to transcend traditional geographical limitations and time-zone restrictions.

Can you speak about any specific challenges faced by Maruti Suzuki in terms of incorporating new technology and digital solutions?

Creating digital awareness and a digital culture within the business requires a shift in perception and processes. For this Maruti Suzuki has employed a three-pronged strategy:

1.            Create digital awareness within the organization, supported by stringent digital governance process

2.            Focus on capability development of employees

3.            Identify the right ecosystem to support company’s digital transformation

The company recognizes these challenges and is actively working to address them. It is working towards fostering a digitally aware culture and has built a robust digital governance process. Maruti Suzuki is also committed to investing in its employees by enhancing their skills and expanding their capacities to facilitate their advancement within the organisation.

By tackling these obstacles head-on, Maruti Suzuki is well-positioned to continue its digital transformation and maintain its competitiveness in the automotive market.

How do you ensure that the IT strategy aligns with the overall business strategy of the company?

At Maruti Suzuki, the IT strategy is presented to the management board of the company. Each initiative is pursued with a business objective in mind, post assessing its benefits. These are under the purview of a stringent Digital Governance platform which ensures that investments are made in the appropriate and relevant projects with clearly defined RoIs, which are measured time-to-time.

To ensure that the company is working in the right direction, it initiates Proof of Concepts (POCs) based on use cases, and then subsequently expands the capability and scale the product/service. This strategy permits experimentation and innovation while ensuring that projects are in line with the broader business objective.

How do you address the challenge of attracting and retaining talent with the necessary technical skills in the competitive tech industry?

Maruti Suzuki focuses on capability development of fresh recruits who have joined the company. This helps in instilling the right attitude and correct mindset in the individuals, leading to creation of a team of devoted, talented individuals committed to the success of the firm.

Upskilling and competence development are crucial for attracting and retaining talent, especially in the tech industry. Investing in team members’ growth and career advancement creates opportunities for engagement and motivation, while fostering a culture of continuous learning and growth necessary for success in this fast-paced sector.

This can also be achieved through an appropriate partner ecosystem that can assist businesses in improving technical skills and expanding team capabilities. This strategy enables businesses to tap into the expertise of external partners and establish a highly competent and capable staff by leveraging their experience and knowledge.

Rajesh Uppal

Member Executive Board (HR &IT), Maruti Suzuki India

minus@cybermedia.co.in