SOJ: Save Our Jobs

In this edition of CIO of the Month we are going back to the same topic of

recession. Before you ask why, our question is what else is there right now on

anyones plate starting from CEO downwards to the regular office boy? Obviously,

CIOs are not immune to this pressure; for many, protecting their and the teams

jobs right now assumes top priority over any other technology deployment or

major strategic initiative. The four CIOs we feature this time are no different;

their mantras for survival in these troubled times revolve around time (meeting

deadlines), having more cost effective solutions and last but not the least

responding more promptly to all business exigencies. And before we utter the

dreaded R word again, lets hope their mantras would bring some sort of succor

in these grim times.

Deadline@Recession = Lifeline

Turbulent times call for tough measures especially from those in the

leadership positions says Sanjay Mittal, head IT, VIP Industries, and not

without a reason. Being a CIO is not easy especially in tough times like these

wherein a lot of expectations are riding on him whether it is in terms of

ensuring project completion on time; or delivering required solutions at an

optimum cost.

One of the biggest expectations from a CIO has been to ensure that whatever

projects are on, it should not escalate in terms of budget and time because any

delay will lead to slow realization of business benefits, says Mittal. For

instance, currently the onus of the timely completion of all it projects rests

solely on his shoulders.

Sanjay Mittal, head of IT and systems, VIP Industries

Moreover, when it comes to meeting common organizational goals like cost

optimization, it is expected of the CIO to be an active participant and also

provide appropriate solutions to peers. For instance, if my sales team needs to

travel for the sales review and at the same time travel costs needs to be low,

then I as a CIO am expected to provide collaborative communication solution

quickly to enable sales team to interact efficiently without traveling, he

says.

VIP Industries seems to be following a different agenda unlike other

enterprises where reduced IT budgets have impacted running projects, the company

has decided to optimize projects but not to cut project costs at all. The

single biggest challenge now is to convert the capex into operational expenses,

Mittal says.

The CIOs on their part need to be sensitive to organizational needs and at

the same time show urgency for action whether it is ensuring timely project

completion or making available requisite IT solutions to other business units

when asked for.

Deconstructing Recession

As I wait for Mahesh Mathur, CIO DLF to arrive for the breakfast interview, I

cannot help but think about how one of Indias premier real estate companies is

coping with recession and how Mathur as its CIO would be expected to score well

in all quarters.

Mahesh Mathur, CIO DLF

As a CIO, it is expected of us to contribute in reducing the IT expenditure

by way of resource sharing (for instance sharing printers and using reusable

consumables) so that the running cost goes down. Then there are other means as

well like using unified communication or VoIP for reducing communication costs

or leveraging voice infrastructure over existing data infrastructure. For

instance, at DLF we are currently using our own network for transfer of data

over the same network, the question is whether we can also build voice over the

same network thereby saving the cost of installing a direct line, says Mathur.

Then the CIO has to also address the issue of making the best use of the

existing resources. At DLF, WAN is being used wherein every office has a fixed

bandwidth for accessing applications. However, offices may not be utilizing all

the allocated bandwidth resulting in wastage of resources.

It is also expected of a CIO to re-negotiate rates of contract from the

vendors and opt for the best deal even if it means selecting the smaller

vendors, he says. The CIO is also expected to contribute to improving customer

communication and to keep the customers updated. What is expected is auto

communication rather than manually informing the customers, says Mathur.

As a CIO, its important that one should not get panicky and work closely

with business. CIO can provide comfort to business by ensuring that IT can

contribute by way of increasing efficiency, and reducing operating costs, he

says.

An Uncommon Challenge

While most of us have focused our attention on covering the issues and

concerns of a private sector CIO, the public sector CIO has gone largely

unnoticed. However, during the recession, PSU CIOs too seem to be walking the

tightrope of expectations. Lets meet NR Satyapalan, DGM (MIS) and CIO of

National Fertilizers (NFL), a Mini Ratna Category I PSU.

The fertilizer sector is reeling under recession owing to fluctuating dollar

prices, and reduced oil prices. Reduction in oil prices have in turn resulted in

the import parity price of urea going down to a level where urea manufacturing

has become uneconomical. In changed circumstances, it has become more viable for

the government to import urea instead of manufacturing it.

NR Satyapalan, DGM (MS) and CIO, National Fertilizers

Unlike the private sector, wherein the IT departments are witnessing huge

pressures on the budget, the IT department at NFL seems to have been spared. IT

as a support function at NFL has to go on whether the plant is operating or not,

and a result of this is that the IT department at NFL has had no cuts or

reduction in the IT budget, says Satyapalan.

The expectations from the CIO of a private sector enterprise are far

different from what a PSU CIO has had to meet. Even though in routine jobs the

PSU CIO does not face the high stress levels: tables are turned when it comes to

implementation of a new technology. For a private sector CIO, any new

technology deployment is welcome with users and management willing to adapt and

adopt. However, things are not so in the public sector where any technology

deployment sees apprehensive users, unstable management and uncooperative staff

members, says Satyapalan. For instance, during the Common Codification Project

at NFLs Panipat unit as a CIO, Satyapalan had to meet the high expectations of

his management apart from facing stiff resistance from staff members.

There is an urgent need for the PSU CIOs to do a reality check considering

that most of them are not fully focused on implementing the best practices of

the industry. Most PSU CIOs are concerned with replication of their manual work

into technology resulting in heavy customization, he adds. Satyapalan also

warns the CIOs when it comes to vendor selection. Its important that we

realize that the lowest bidder is not necessarily the best option to choose, we

must therefore build the RPFS in such a way that the lowest bidder is kept out

of the picture.

Be a Tough Leader

Tough times dont last, tough people do, believes V Subramanian, CIO, Otis

Elevators. For every CIO facing recessionary times, the expectations are

manifold, he feels. One of the primary expectations from a CIO is how does one

maximize the technology investments made in implementing enterprise systems.

When things are going good, one goes ahead and deploys what is required; you do

not ideally go back and pause to see how we can maximize the investments.

However, its not the same when things have taken a turn for the worse, says

Subramaniam. For instance, after implementing ERP at Otis, there were many

features and functionalities that were not used until now. This is the right

opportunity to see how we can leverage and maximize the potential of systems

deployed as even in technology there is the need to see how one can become more

efficient and effective in enterprise systems business, he adds.

V Subramanian, CIO, Otis Elevators

CIOs are also expected to ensure process optimization within IT and the

challenge is how does one re-engineer and optimize IT processes keeping in mind

customer satisfaction. But the most critical of all expectations is contribution

in cost containment initiatives of the company. Any CIO and his team is

expected to contribute to his organization in cost containment in terms of

vendor re-negotiation or following more stringent SLAs.

CIOs could also do with a reality check to ensure that they are aware of the

current situation. This is the right time to go out and enhance skills and grab

the opportunity to re-invent yourself. Its also important to maximize strength

of the organization and the team while playing the role of a facilitator and

leader in supporting the business in current times.