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Making of
a Leader
A formal program is the
only way to build yourself a
solid second line.
are values that CIOs look for in their protgs. Notice that technology knowledge is not
among them. Thats a given.
The nomination forms for CIO Ones to Watch 2007 threw up a bunch of IT executives from
a variety of backgrounds, strengths and experience levels. What distinguishes the IT leaders
of tomorrow whom we honor in this issue is their passion. For driving change. For building
teams. For business strategy. For getting results.
Take Bharat Sethi, VP of Reliance Industries. A veteran with over 30 ERP deployments
across the group to his credit that have an uptime commitment of 99.9 percent, Sethi has
also been able to keep attrition in his team below 5 percent. And, whats more, hes regularly
consulted by various business and finance heads in the Reliance group on matters of
accounts and commercial processes, given his knowledge of accounting and finance.
Ashish Kumar Chauhan, president &
group CIO of RIL, is clear why he nominated
Without a plan that hones
Sethi to the program Bharat is amongst
skills and gets your
our top IT leaders with several successes to
team mentored, you
his credit. He has also been able to motivate
can only pray for
a large team to provide business with very
leadership to emerge.
complex but easy-to-use solutions.
Ask what Sethi needs to do to become a
CIO and Chauhans emphatic: Today, Bharats more than a CIO.
Thats got to be the stuff that the dreams of CIOs are made of.
But we have to take cognizance of the nightmares that others face as well. If there had been
a second line worth nominating for the Ones To Watch program, do you think my organization
would have had to hire me from outside? Its the anguish in the voice of a CIO I was speaking
to a few weeks back that underscores the need for all IT teams to not just pray that they have
more Sethis among them, but to also build formal technology leadership programs.
A course that goes beyond ensuring motivation and retention. A course that identifies
and hones personal skills, that looks at career progression, teaches your team networking
skills and gets them mentored.
How do you go about developing the next level of IT leaders? Write in and let me know
your thoughts.
Vol/2 | ISSUE/05
Content,Editorial,Colophone.indd3 3
1/15/2007 4:50:38 PM
Executive Expectations
View From The Top | 44
Vaughn Richtor, MD and CEO of ING
Vysya Bank, says that IT is as important
as people and processes for furthering the
growth of an organization.
Interview by Balaji Narasimhan
Career Counsel
Cue the Spotlight | 23
How the CIO can achieve a measure of fame
and celebrity in four simple steps.
Column by Martha Heller
Peer To Peer
2
3
6
9
Fear of Dependency | 26
Small- to mid-size organizations, using smallto mid-size vendors, must always be ready to
break away and stand on their own two feet.
Column by Bill Regehr
Data Management
Leadership
content
More | 48
As the demand for real-time data increases,
as more and more information flows into the
enterprise, the challenge of understanding
and managing it grows proportionately.
And sometimes, more is just too much.
Feature by Thomas Wailgum
more
introduction | 29
the right stuff | 30
Master class | 36
25 leaders to watch | 42
Content,Editorial,Colophone.indd8 8
Vol/2 | ISSUE/05
1/15/2007 4:50:40 PM
content
(cont.)
departments
Trendlines | 17
Leadership | Focus on Grooming CIOs
Management Report | Keep IT Simple
Data Centers | Throw Cold Water on Costs
Open Source | Keeping the Track, the Open Way
Life Tech | Virtual Surgery Pardons Mistakes
Career | 30 Books To Make You a Better Leader
Security | Weighing the Cost of Compliance
Staff Management | Collaboration at Work
Essential Technology | 58
VoIP | Dont Let VoIP Throw You
By Michael Fitzgerald
Security | Being a Step Ahead of Potential Threats
By Michael Jung
Inbox | 16
NOW ONLINE
For more opinions, features, analyses and updates, log on to our
companion website and discover content designed to help you
and your organization deploy IT strategically. Go to www.cio.in
c o.in
Govern
Zero-in On the Problem | 54
The Tamil Nadu Forest Department is finding new and more sustainable
solutions toward afforestation on the back of more accurate data and the
ability to monitor and evaluate progress.
2
3
10
Content,Editorial,Colophone.indd10 10
1/15/2007 4:50:46 PM
Advertiser Index
ADVISORY BOARD
Ma nageme nt
Anil Nadkarni
AMD
Avaya
4&5
Canon
63
Fortinet
11
HP
13
IBM
Mani Mulki
VP - IS, Godrej Consumer Products Ltd, m_mulki@cio.in
Krone
Unnikrishnan A.V.
Sasi Bhaskar; Girish A.V.
Vishwanath Vanjire
Manish Choksi
VP - IT, Asian Paints, m_choksi@cio.in
Lenovo
64
MM Shanith; Anil T
PC Anoop
T.K. Jayadeep
Ma rketing a nd Sales
Events
General Manager Rupesh Sreedharan
Manager Chetan Acharya
Neel Ratan
Executive Director Business Solutions,
Pricewaterhouse Coopers, n_ratan@cio.in
Rajesh Uppal
General Manager IT, Maruti Udyog, r_uppal@cio.in
Prof. R.T.Krishnan
Professor, IIM-Bangalore, r_krishnan@cio.in
Microsoft
R&M
39
Rittal
25
Toshiba
27
S. B. Patankar
Director - IS, Bombay Stock Exchange, sb_patankar@cio.in
S. Gopalakrishnan
COO & Head Technology, Infosys Technologies
Wipro
6&7
s_gopalakrishnan @cio.in
S. R. Balasubramanian
Sr. VP, ISG Novasoft, sr_balasubra manian@cio.in
Prof. S Sadagopan
Director, IIIT - Bangalore. s_sadagopan@cio.in
Sanjay Sharma
Corporate Head Technology Officer, IDBI, s_sharma@cio.in
Dr. Sridhar Mitta
Managing Director & CTO, e4e Labs, s_mitta@cio.in
All rights reserved. No part of this publication may be reproduced by any means without prior
written permission from the publisher. Address requests for customized reprints to IDG Media
Private Limited, 10th Floor, Vayudooth Chambers, 1516, Mahatma Gandhi Road, Bangalore 560
001, India. IDG Media Private Limited is an IDG (International Data Group) company.
Printed and Published by N Bringi Dev on behalf of IDG Media Private Limited,
10th Floor, Vayudooth Chambers, 1516, Mahatma Gandhi Road, Bangalore 560 001, India.
Editor: Vijay Ramachandran. Printed at Rajhans Enterprises, No. 134, 4th Main Road,
Industrial Town, Rajajinagar, Bangalore 560 044, India
Sunil Gujral
s_gujral@cio.in
Unni Krishnan T.M
V. Balakrishnan
CIO, Polaris Software Ltd., v_balakrishnan@cio.in
12
Content,Editorial,Colophone.indd12 12
Vol/2 | ISSUE/05
1/15/2007 4:50:46 PM
Trendline_Nov11.indd 19
11/16/2011 11:56:19 AM
OS of the Masses
As in the past, the January 1, 2007
edition of CIO has again something to
update the IT leaders knowledge and
expand his awareness of IT products.
The Vista Outlook special issue (January
1, 2007
2007) was excellent. Whether one
likes Microsoft or not, one buys its
products for a simple reason: they are
simple, easy to use, and well-accepted
internally. It has been fairly evident
with previous releases like Windows 95,
98 up to XP.
As an IT person, I will use Vista
simply for its security features. Out of
my 3,000 PCs in Bangalore, I would
first study how many require Vista
for critical applications or those
machines that have critical data. I have
noticed that most features in a Microsoft
product are under-utilized. So, while we
would not be replacing all our old OS,
the computers with important data are
Vista candidates.
R.K. Upadhyay
Inbox.indd 16
assigning Id
editor@c o.in
Corrigendum
In 'The Path of Technology
Leadership' (View From The Top,
January 1, 2006), Polaris Software
Labs chairman and MD Arun Jain was
incorrectly identified as Arun Gupta in
the photo caption.
The error is regretted.
Vol/2 | ISSUE/05
new
hot
unexpected
'Fo
F cus on GroominG CIOs'
Fo
Well, were a fortnight into 2007, which means its time to revisit
those New Years resolutions from 2006 and delete them (or pretend they never
existed). Or we could drag them forward into 2007, as part of our ongoing guilt
list with no specific deadline.
If youre a CIO, you probably have a conventional list of annual resolutions ('deliver
more business value'). But, you may also want to take a look at Gartners new year
resolutions for CIOs, which focuses this year on so-called high-value sidebar actions
that will supposedly complement your conventional list. This is the soft stuff: flossing
for CIOs. And Gartner picked a pretty interesting mix this time around, grouped into
three buckets: things to start doing, things to do more of, and things to stop doing. Heres
a quick rundown:
Things to start doing: First, Create an IT generation succession plan. Focus on
Generation X (born between 1963 and 1978) and lay the foundation for your IT shop. You also
need to get more women in the mix, because IT needs to be more collaborative. Second, 'Start
tracking the environmental performance of IT.' Be part of the solution on this one, before youre
seen as part of the problem. Third, enable 'true innovators' within your organization. Use 1 to 3
percent of your budget for creative, risk-tolerant initiatives, Gartner suggests.
(Continued on Page 18)
ILLUSTRaTIOn By anIL T
LEADERSHIP
Keep IT Simple
Simplicity is
the key to better IT, according to a recent
study by The Hackett Group consultancy.
Even though world-class IT departments
spend 7 percent more per end user on IT
than their peers, they return more to the
bottom line through reduced back-office
costs, according to the study. These topnotch IT departments accomplish this in
part by reducing architecture complexity.
That a streamlined architecture can
improve IT operations isnt a new idea.
But Scott Holland, senior director with
Hackett, found that this practice, among
others that promote good IT governance
(such as the use of project management
offices and service models such as the
Information Technology Infrastructure
MANAGEMENT REPORT
VOL/2 | ISSUE/05
Trendlines.indd 17
By Elana Varon
REAL CIO WORLD | J A N U A R Y 1 5 , 2 0 0 7
17
resolutions
By Robert Mullins
By David L. Margulius
IL LUSTRaT IO n By MM S HanIT H
Throw
COLD WATER
on Costs
18
Trendlines.indd 18
VOL/2 | ISSUE/05
TRENDLINES
New Year
trendlines
Keeping
Track, the
Open Way
LIFE
TECH
Researchers
at the Computing and
Communication Center of the
Technical University of Aachen
in Germany hope to reduce
the level of error in surgical
operations.
With the plastic surgery,
hand and burn surgery
department at the university
hospital, they have developed
a prototype virtual operating
room to help surgeons learn
operating techniques and also
prepare for difficult procedures
with no risk to patients.
Virtual operations can enable frequent, thorough training at all
levels for faster, safer and more cost efficient surgery. This is the
aim of computer scientists and surgeons cooperating in the Virtual
Reality Surgical Training project. The trick of performing a virtual
surgery is to simulate a realistic operating environment, according
to computer scientist Torsten Kuhlen. That means creating not only
a near real-life virtual operating theater but also virtual patients
and all their various organs, bones, muscles and tissues.
For virtual operating to be a useful learning tool, surgeons must
be able to view the entire body, down to the various layers of skin.
By Nancy Gohring
Virtual Surgery
Pardons Mistakes
20
Trendlines.indd 20
Vol /2 | ISSUE/05
1/12/2007 7:37:59 PM
trendlines
Vol/2 | ISSUE/05
Trendlines.indd 21
By Roger A. Grimes
21
1/12/2007 7:38:01 PM
Collaboration
at Work
M A N A G E M E N T Want to learn the latest
management theory on collaboration? Then log on to an
Internet fantasy role: playing game and create your own
3-D avatar.
Thats what Jack Emmert, creative director for Cryptic
Studios in California, advises. Emmert created the hit game
City of Heroes, in which thousands of online players dress
and arm their 3-D superhero avatar characters to do battle
against thugs, robots and monsters. The twist: The best
way for players to advance to the next level is to collaborate
to vanquish criminals. Emmert
programmed incentives into the
game to encourage teamwork and
continued subscriptions.
In online
Executives can use similar
games, if
incentives, Emmert says, to
a reward
encourage collaboration at work.
is clearly
His advice:
relevant to
Foster Individuality. In
the character,
games, if players can express their
players will
individuality (by say, choosing
play longer.
special clothing), they also will
want to join a group to express
the groups formed identity. In the
workplace, give those executives
with the most to gain from a
successful project the tools to design and personalize the new
system. Let them make it their own, Emmert says.
provide frequent rewards, and praise groups.
Game designers provide some type of reward to players every
90 seconds on average to keep players engaged in the game.
In the workplace, provide small rewards frequently (monthly
perhaps) that not only keep workers engaged in a project but
also reward group behavior.
Make rewards personal. In online games, if a reward is
clearly relevant to the character, players will play longer. Give
rewards that reflect an employees personal tastes or lifestyle.
People dont like to be told to be in a group, Emmert
says. You have to create the incentives and rewards that
will make it their decision that working in a group works
to their advantage.
S TA F F
|
ESSENTIAL TECHNOLOGY
|
Columns
A Good Offense is a Good Defense
Why it pays CIOs to map their plays before a dictate to
outsource comes down from above.
Everyone Gets to Play
Good IT governance is not about committees, processes,
forms and procedures. Its about involving as many people
as possible. And then its ITs job to support them.
Read more of such web exclusive columns at
www.cio.in/columns
Resources
Closing Windows, Opening Doors
Revenue for Windows and Office has remained relatively
flat, while the server and tools division has posted doubledigit revenue growth for 16 straight quarters.
Download more web exclusive Resources from
www.cio.in/resource
COLUMNS
TOP VIEW
GOVERN
FEATURES
NEWS |
RESOURCES
WebExclusive
By Meridith Levinson
22
Features
REAL
WORLD
Martha Heller
Career Counsel
Vol/2 | I SSUE/05
23
1/12/2007 7:13:35 PM
Martha Heller
Career Counsel
Vo l/2 | I SSUE/05
1/12/2007 7:13:35 PM
Bill Regehr
Peer To Peer
Fear of Dependency
Small- to mid-size organizations, using small- to mid-size vendors, must always be ready to
break away and stand on their own two feet.
Vol/2 | ISSUE/05
1/12/2007 7:16:04 PM
Bill Regehr
Peer To Peer
Bill Regehr is CIO of Boys & Girls Clubs of America, based in Atlanta. He is a member
of the CIO Executive Council, a former IT executive with Equifax and IBM. Send
feedback on this column to editor@cio.in
Vol/2 | ISSUE/05
1/12/2007 7:16:04 PM
Ones
B Y V i j ay r a m a c h a n d r a n
Watch
to
hat is leadership? That question and its companion how best to lead? must
be answered by CIOs as they prepare the next generation of IT leaders.
We all know leadership when we see it. And note its absence easily.
But separating leadership into its constituent elements isnt so simple. What we know
for certain is that leadership development is an imperative. CIOs need leaders in the
ranks. And the most successful CIOs take an active role in cultivating leaders. So the CIO
Ones to Watch 2007 program not only honors the 25 executives who have shown that
they have what it takes to be tomorrows CIOs, the awards are also an acknowledgement
of the personal commitment to fostering talent shown by their CIOs.
The question is: how do you become a person others want to follow? Start by being
yourself, say CIOs, who share the secrets of their own leadership success in The Right
Stuff (Page 30). Play to your strengths. If youre a hands-on person, be a hands-on leader.
If youre not a rah-rah type, dont fake it. Find another way to inspire the troops.
All the Ones to Watch honorees excel at leadership. The winners say that change
management, team building and business strategy were extremely important in their
rise to the top. To recognize the components of well-rounded leadership and to honor the
individuals who exemplify them, CIO has profiled three executives from this years crop
of Ones to Watch winners who have mastered these skills (Master Class Page 36). We
examine the demands each of these honorees faced within their company and explore
how they applied their special talent to resolving a problem or confronting a challenge.
Interestingly, they all stressed the need to develop soft skills in their bid to rise to the
next level. The success of a CIO depends, to a large extent, on his ability to build bridges
with his peers and other important colleagues, points out P.S. Narayan, GM, Wipro.
Congratulations to all the winners and to the CIOs who nurtured them. And from
the Ones to Watch Class of 2006, we have a few members who have graduated to the
next level. Kudos to them.
Vol/2 | ISSUE/05
29
1/12/2007 7:42:56 PM
The
Right
Stuff
What does it take to make the leadership leap?
Do you have what it takes?
By Balaji Narasimhan
Cultivating your
leadership skills and
those of your staff
How to develop skills in
your IT department
Imagin g by an il t
Reader ROI:
xperience possesses immense power, believes S. Hariharan. The past, says the
senior vice president (infrastructure services and support group) of i-flex Solutions,
has a hand in molding present-day thought. And in many ways, his experience has
pointed to the value of playing IT by the ear.
Take for instance Hariharans approach to his IT organization. He adopts a hands-on
approach in certain areas and delegation in others. Delegation is crucial when people need to
be empowered and shown that they make a difference to the organization.
Not very far away from i-flex Solutions headquarters in Mumbai, the IT department of
Reliance Industries is founded on one approach: delegation. Ashish Chauhan, president & group
CIO of Reliance Industries, asserts that a CIOs role is largely about empowering his team. In a
large organization like Reliance, a hands-on approach wont always work, he says.
Hariharan and Chauhans leadership approaches couldnt be more different. Yet, both have
reached the top and managed to thrive there. How? It comes down to knowing the leadership
style that best suits them and staying true to it. If you are a hands-on person, be a hands-on
manager. If you are naturally enthusiastic, use the enthusiasm to motivate your troops. And if
you are a quiet strategist, dont try to manufacture false rah-rah; focus on strategy instead.
Vol/2 | ISSUE/05
1/15/2007 4:22:25 PM
S. Hariharan,
Sr. VP-infrastructure
services and support group
of i-flex Solutions, says a
situation must determine if
delegation is appropriate or a
hands-on approach is better.
1/15/2007 4:22:27 PM
Every CIO needs to find his or her own leadership style. But
getting to the top also requires the ability to recognize and
capitalize on opportunities to hone what youve learned,
say the CIOs who nominated the winners of the 2007 CIO
Ones to Watch, which honors senior staff poised to become
tomorrows IT heads.
Hariharan believes that much of his growth coincided
with i-flexs expansion plans. With multiple locations
and numerous offices, the challenge was to provide IT
infrastructure that enabled business, he says. Chauhan,
on the other hand, had his first taste of IT when he was part
of a five-member team that set up the NSE around 1992.
In those days, I set up the first Indian commercial satellite
network for NSE which is still amongst the largest in the
world, he points out.
Vol/2 | ISSUE/05
1/15/2007 4:22:32 PM
Vol/2 | ISSUE/05
Class Act
1/15/2007 4:22:32 PM
Vol/2 | ISSUE/05
1/15/2007 4:22:34 PM
Vol/2 | ISSUE/05
How to Make It
CIOs on what their winners must do to make the leap.
S. Hariharan, Senior VP-infrastructure services & support group,
i-flex Solutions
What he looks for in a protg: Vision and the ability to carry the
organization forward.
Ones to Watch winner: Ravikumar Muthuswamy, VP-facilities
management group and technology deployment management.
Why I nominated him: Ravikumar has had extensive experience
in the IT infrastructure field. He has had experience in managing
i-flexs infrastructure from the beginning and has an excellent perspective of how this
infrastructure needs to grow to enable our business.
What he needs to do to become a CIO: "Ravi has acquired all the skills necessary to be
a CIO. He has seen our IT infrastructure grow and become a key enabler."
1/15/2007 4:22:41 PM
Master
BY gunjan trivedi
Class
What becomes a leader the most? Take a lesson
(or three) from those who possess the skills and
qualities a successful CIO must have.
Team builder.
Business strategist.
Change agent.
Reader ROI:
ell-rounded leaders must be all these things and more to be successful in todays
fast-paced business environment. After all, leadership is not a static accomplishment.
And neither are the skills required to do it well.
In fact, the capacity for agile leadership in the face of shifting business challenges is practically
a job requirement for CIOs, who have been whipsawed by changes ranging from the rapid growth
of the dotcom boom to the need to slash services and operate on less when the bubble burst and
the economy contracted. As a CIO, you must be able to anticipate industry trends, how are they
likely to impact the organization and what opportunities you can create out of them. Agility is
important and agile leadership matters, says Arun Gupta, director-IT of Philips Electronics
India, and a member of CIOs Advisory Board.
Whats true for the CIO also holds for those who aspire to the title. During their rise to the top,
all of our Ones to Watch honorees have stepped into the part of the business strategist, change
agent and team builder as the needs of the business dictated or circumstances demanded. When
the winds of change blow, leaders must be able to evolve to fit the times.
Vol/2 | ISSUE/05
1/12/2007 9:18:59 PM
business strategist
Narayan P.S.,
GM & head-IS Group,
Wipro, has ensured a
10-fold growth of business'
involvement in defining
IT's roadmap.
Vol/2 | ISSUE/05
1/12/2007 9:19:02 PM
Vinay Khargonkar,
team builder
38
Vol/2 | ISSUE/05
1/12/2007 9:19:12 PM
Raghavendra Joshi,
change agent
40
Vol/2 | ISSUE/05
1/12/2007 9:19:17 PM
How We Chose
the Winners
T
Vol/2 | ISSUE/05
41
1/12/2007 9:19:17 PM
Trendline_Nov11.indd 19
11/16/2011 11:56:19 AM
25
Leaders to
Anish Kalucha, 38
Manager IT, BSES Power
Bharat Sethi, 46
VP, Reliance Industries
Ive learnt that IT isnt
only about technology and
infrastructure. It has more to
do with enabling processes
and meeting the requirements
of all stakeholders.
Bhupat Kapadia, 44
Manager(Systems), Gujarat
State Fertilizers & Chemicals
Girish Mehta, 51
Manager, Gujarat Narmada
Valley Fertilisers
Work while you work, and
play while you play. Its a
perfect way to deal with
work-related stress.
Jethin Chandran, 35
HeadIT, Infrastructure
Planning and PMO, Wipro
Technologies
I tell my team to learn to
enjoy pressure, and build
multiple skills. Importantly,
know what you want to be.
Jitendra Kine, 38
Head-IT, Ceat
Carasel DSouza , 35
Asst Chief Manager-IT,
Flat Products Equipments
Jitesh Sable, 32
Sr. Manager, Siemens
Information Systems
I consider myself to be
more business focused than
technology focused, though in
a technical sense I understand
the two fairly equally.
A piece of advice to my
juniors: change need not
always be large. A small
change can bring great
results.
Emmanuel Soans, 45
GM-IT, Colgate Palmolive
M.R. Venkatesan, 44
Asst. VP, Polaris Software Lab
1/15/2007 2:53:10 PM
o Watch
Md. Jawed Ahmed, 30
Manager Systems,
Adani Wilmarn
Narayan P.S., 41
GM, Wipro
The IS departments value
is as good as its most recent
success. Theres no question
of resting on your laurels. IT
has to prove its worth every
day, month and year.
Pavan Gurtoo, 33
Assistant VP, UTI Bank
To be aggressive gogetters, companies need
processes and delivery.
Being technology-focused is
a necessity. Avoid it and you
could lose your edge.
Prasenjit
Mukherjee , 37
Manager IT, BSES Power
With my team, I harp on a
few principles: accept change,
plan ahead, keep updated and
always look for an opportunity
to prove your leadership skills.
Raghavendra Joshi, 37
VP-IT Group, Yes Bank
Theres no substitute for
hard work; always be one step
ahead of your peers through
continuous education. Develop
a learnable character and
enjoy life you have only one.
Ravikumar
Muthuswamy, 39
VPFacilities Management
Group, i-flex Solutions
Our 25 Ones-to-Watch
honorees bring business
acumen, technical skills and
passion to their drive for
leadership.
c o m p i l e d B Y t e a m CIO
Satish P.V., 40
Sr. Manager, Hyundai
Motor India
When you know your team
and are able to set objectives
for members and take
responsibility for it, you can
become a CIO.
Sidharth Sharma, 27
Sr. Manager (Systems &
Networking), LeasePlan India
S. Chandrashekhar, 54
Deputy GM-Application
Development & Maintenance,
Ashok Leyland
Sundaresan
Ramamoorthy, 47
GM-IT Services,
HCL Technologies
I stress on working as a
highly motivated and energetic
team, rather than building a
few stray champions.
S.M. Vashist, 46
Chief ManagerCS,
National Fertiliser
Venkatesh
Natarajan, 44
Dy. GM-IT, Ashok Leyland
I advice my team to be
innovative no matter what task
theyve been assigned to. Also,
to assess their skills, and look
for learning opportunities.
Priotization is important
to beat stress. Focus only
on things that require your
attention and intervention.
Sandeep Chadha, 28
Manager, Fortis Healthcare
Vinay Khargonkar, 42
Deputy GM & head-IT,
Hazira Works, L&T
Stress is a question of
perspective. Work is a
pressure only if you view
it as such.
1/15/2007 2:53:24 PM
Bankable
Vision
44
P hoto by KP N
BY BALAJI NARASIMHAN
Imagin g by an il t
Vaughn Richtor,
MD and CEO of
ING Vysya Bank,
says that IT is as
important as people
and processes
for furthering
the growth of an
organization.
Vol/2 | ISSUE/05
1/12/2007 7:39:55 PM
VAUGHN RICHTOR
wants I.T. to:
Enhance customer satisfaction
Provide efficient service
Manage processes better
Vol/1 | ISSUE/16
45
1/12/2007 7:39:57 PM
IT must help
by providing
efficient
and reliable
service. If an
IT product
does the basic
things well,
that is the best
value-add.
Vaughn Richtor
people are more ready to use customerfacing IT solutions, whereas they would
still prefer face-to-face relationships in
other areas. It is about understanding
IT in relation to the product and the
particular area.
What is most important is making
a decision on how to deliver what the
customer wants. This is not to say that we
can do all things in all places what we
do is make sure that we are delivering the
right solution at the right place.
The other point I want to make is that
when you do introduce solutions, it is
not just about deploying the technology.
There is also an investment to be made in
educating both the staff and the consumer
on how to use that technology.
So, the other part of using technology
in the frontline is to make sure that you
invest sufficient time in education, both
for the customer and the employee.
Vol/2 | ISSUE/05
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SNAPSHOT
Rs 102 crore
DEPOSITS
Rs 13,335 crore
OUTLETS
575
I.T. budget:
Rs 70 crore-90 crore
47
1/12/2007 7:40:03 PM
BY THOMAS WAILGUM
Data Management
business intelligence software and supply chain management
operating system is running out of RAM to work with) and
tools have propagated as companies struggle to keep up
a whole lot more. All those metrics (and more) are crucial
with the demands of 24/7 global operations. According to a
to Pricelines business as illustrated by a recent Harris
September 2006 Teradata survey, 85 percent of responding
Interactive consumer study that found that 40 percent of
executives say that decision-makers need more up-to-date
online consumers will abandon their transaction (or turn
information than in the past.
to a competitor) if their initial attempt to interact with a
But as many companies have long known, more
site is foiled.
information, delivered more frequently, hasnt always led
So Rose and his IT staff collect and analyze a torrent of
to faster or better decision making.
real-time data to identify, prevent and fix problems before
The real-time boom has introduced some unintended
that happens. And he says being able to do so has saved the
busts: overwhelmed business users and IT managers
company millions in downtime and repair costs over the
drowning in too much information, with floods of
years. Winning by not losing, he calls it.
irrelevant business activity alerts and system performance
Roses IT group isnt the only beneficiary of
data leading them to make rash decisions or turn off realPricelines real-time capabilities. Pricelines business
time applications altogether. If youre not giving real-time
analysts tap into a business activity monitoring (BAM)
data to the right people at the right time, youre opening up
system, which can slice and dice up-to-the-minute
yourself to a lot of risk, says David Williams, research VP
information detailing the types of airline tickets, hotel
of IT operations management at Gartner.
rooms or car rentals that are selling, the completion
Of course, by itself, providing data in real-time isnt
percentage of different types of orders and (much) more.
dangerous. Real-time information is always useful if you
All those data points (and more) give business users
know how to make sense of it, says Hau Lee, the Thoma
the ability to see trending demand for specific airline
Professor of Operations, Information and Technology at
or hotel offerings, or whether visitors are completing
Stanford Universitys Graduate School of Business. That if
transactions or bailing out at the last minute on certain
is the problem.
products. The business users can then adjust that data
Indeed, there are a steep learning curve and
to generate more sales. [The business groups] hourly
cultural change in a real-time environment that many
reports, which summarize the financial data as it moves
through the company, is the MTV of the
technology department, Rose says. They
love to keep their fingers on the pulse.
But with that dependence on such fastmoving and variable data, Rose acknowledges
that users also have to be aware of any noise
RFID promises a gold mine of data. Now, what are you going to
lurking in the system. For example, when
do when 90 percent of it proves to be pyrite?
there might not be a statistically valid
amount of data (say, too small a sample size
for one of Pricelines sales categories, such as
As companies collect more data, and as the business demand for real-time data
bookings at one of its smaller hotels), which
increases, so too will the demand for access to it. Right now, less than 15 percent of
a business user may think is a trend when,
employees at an average organization have access to real-time information, according
in fact, its not. It takes more than just a few
to Joe Thomas, global head of new business development for Capgemini. However, the
minutes to make a trend, he cautions.
emerging intelligence economy will demand that organizations empower at least 70 percent
Rose is confident, however, that Priceline
of their employees with real-time information and equip them with ways to use it.
is using all that near-real-time data to make
Nowhere is that challenge more of a concern than with RFID technologies. RFID
better business decisions and provide a
holds great promise, but also great danger, says Kevin Poole, consulting services leader
highly available website with fewer instances
at Capgemini. Done right, it gets you [data] at a level of detail and specificity and in a
in which any of those 70,000 things that can
timely manner better than before. If its done wrong, theres going to be between 10
go wrong do.
times to 100 times more data available, and you run the risk of information overload.
Poole says CIos need to architect their systems to manage this flood of real-time data
as well as apply business rules to help control and make sense of it all.
Hau lee, the Thoma professor of operations, Information and Technology at Stanford
Universitys Graduate School of Business, compares the RFID movement to a gold rush.
Moving to a real-time information-delivery
All of a sudden, theres this wealth of data, he says. And as we all know, when you go to
environment like Pricelines has long been
the gold rush, you need tools and techniques to filter and get the gold nuggets, because
an ambition for many companies. Real90 percent of it is dirt.
time capabilities in business performance
dashboards, systems monitoring applications,
T.W.
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49
Data Management
organizations underestimate. Everybody is crying
for this data, but when you give it to them, they find
fault with it, says Heineken USA Director of IT Carol
Schillat. And the fault is that they dont know how to use
it. Ill-planned real-time data implementations can be
disastrous, negatively affecting customers, profits and
productivity, according to Teradatas survey.
To avoid the heartbreak of a failed real-time romance,
CIOs need to understand which information their company
really needs, how that information matches up with the
way the business users do their jobs, and how and when
its most beneficial to deliver that information. Once that
analysis is complete, CIOs can install a process and IT
system that delivers more actionable and correctly timed
data flows. If the business folks havent provided that level
of detail, and IT didnt ask for it, the system can provide
not enough or too much information, says Kevin Poole,
consulting services leader at Capgemini. And in either
case, [business users] will start to ignore it.
Real-Time Relativity
Like most terminology in the high-tech world, realtime means different things to different people in
different industries. But whats common to most
peoples definition, says Royce Bell, CEO of Accentures
Information Management Services, is that the data is
delivered within an actionable time frame, whether
that means within seconds or hours.
50
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Data Management
accordingly, many companies havent
been able to. And thats where real-time
can get real dangerous.
Blinking at Real-Time
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51
Data Management
Nicholas Lurie and Jayashankar Swaminathan. What they
discovered was that managers who received more frequent
data points were making more poor decisions. The danger
of real-time data is that it may come to you at a frequent
rate, maybe every hour, and if you respond to that data, if
theres some random event and you treat the random event
as systematic, it could really throw you off, Lurie says.
Yossi Sheffi, director of MITs Center for Transportation
and Logistics and author of The Resilient Enterprise, finds
no fault with real-time data, only in the way people use it.
The question is not, 'Is real-time information bad or
good?' Theres only good in it, Sheffi says. The danger [of
real-time data] is if you would react too fast and not wait for
the trend to reveal itself. As an example, Sheffi suggests
that Procter & Gamble should not start making inventory
or planning decisions on Tide sales at Wal-Mart based on
data they receive every five minutes.
You dont want to react to someone who came in and
bought five boxes, he says. What you should do is look
for trends in product sales combined with historical data
for example, during the last few days or weeks and
correlate that with other event-type data, such as in-store
promotions or weather information that may affect sales.
You have to use it smartly, Sheffi says, noting that some
companies right now are better at this than others.
At Priceline.com, Rose seems to have found that sweet
spot for delivering real-time data to both IT and business
users. The company was founded in 1998, and since then
52
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Data Management
out noise and nervousness. (For a list of
tools that can help you do that, see Cutting
Through the Fog.) Overreacting to sudden
and random upticks in sales can produce a
deadly chain reaction in the supply chain,
with each supplier downstream from the first
increasing its orders and supply requirements
because it wants to have enough inventory to
comply with the illusory rising demand. This
is called the bullwhip effect.
In 1997, Stanfords Lee cowrote the seminal article
on it Information Distortion in a Supply Chain:
The Bullwhip Effectand the now-famous example
of the variability (and challenges) in demand planning
for P&Gs Pampers product remains the best-known
example. You have to be able to distinguish between
noise versus a real systematic shift, cautions Lee.
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Govern Main.indd 54
1/12/2007 7:59:07 PM
G.I.S.
Zero-in
On the Problem
By Sunil Shah
Reader ROI:
Vol/2 | ISSUE/05
Govern Main.indd 55
Still, the gray footwear accessory in a corner of the Tamil Nadu (TN) Forest Departments lab
is symbolic, given the ease it can add to a process and the task of fitting something to size.
The shoehorn is one symbol. From a macro and technology perspective, the
Rs 300-crore Geographic Information System (GIS) project to help increase forest cover in
the state is another. The TN forest department does have an eye for detail, and appreciates
a tool that can streamline work. And its thoroughness has served the seven-man GIS team
well over the past three years, as theyve pored over thousands of maps and a jungle of
information to create the first multi-layered, visual map of forests in Tamil Nadu.
Putting it together was painstaking. The GIS team began by working with data on forest
cover from the Forest Survey of India, hard copies of road and topographical maps, field
observations from rangers, and hard-to-date, hand-drawn forest reserve maps most
of all this in wieldy, inaccurate hard copies. As a final layer, the staff topped the multidimensional map with satellite images.
As it relies on a visual approach, GIS is renowned for its ability to monitor change
in easy before-and-after pictures. It is especially popular among decision makers who
Illustration by unnikrishnan av
1/12/2007 7:59:09 PM
G.I.S.
love the quick, transparent and easilydigestible information that GIS offers.
The love isnt misplaced, particularly
because GIS works efficiently over
large areas. The proliferation of GIS
is explained by its unique ability to
assimilate data from widely divergent
sources, to analyze trends over time, and
to spatially evaluate impact caused by
development. For an experienced analyst,
GIS is an extension of ones own analytical
thinking, says C.K. Sreedharan, principal
chief conservator of forests, and the
person who has spearheaded the forest
departments GIS project.
But GIS is more than a show-and-tell tool
to track change. The TN forest department
has used it to identify and prioritize
problems quickly, and help find appropriate
solutions. Andhra Pradesh, Karnataka and
Kerala have attempted GIS implementations
to support their afforestation programs, but
are yet to produce the sort of results shown
in Tamil Nadu.
Govern Main.indd 56
The time
saved on a
simple survey
using GIS is 90
percent, and I
now need half
the manpower.
C.K. Sreedharan
Principal chief conservator of forests
Tamil Nadu Forest Department
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1/12/2007 7:59:18 PM
G.I.S.
quickly. For instance, it has facilitated
the choosing of villages for the initiative
and the quantum of land to be allotted
to them. This also entails surveying to
determine the most appropriate piece of
forest, in terms of distance from a village
and forest cover.
A few years ago, there was no telling
how long a survey could take. Villagers,
accompanied by rangers using a chain-andcompass method to gauge distance, took
time to organize and supply the results.
The time saved on a simple survey is as
much as 90 percent. Also, I need 40 to 50
percent less manpower (with the use of
GIS), says Sreedharan.
Part of the TAP mission is also to create
harmony between the needs of villagers
and that of the forest, including water.
Using GIS, forest department officials can,
for example, slash the time taken to find a
location for a bund, a small dam to create
a pool. S.A Raju, assistant conservator
of forests, says that with GIS, the forest
ranger can, for instance, locate a 30-degree
slope, one kilometer from a village, in an
area where you dont need to cut trees to
build a bund. If such a choice doesnt exist,
GIS can provide the next best option.
The long-term benefits of GIS-enabled
watersheds cannot be ignored, says
Sreedharan. Although they seem like soft
benefits for the public, the water projects
can potentially better the living standards
in villages by pushing up the water table.
The link between higher water tables,
better harvests, and more readily-available
grazing land are direct. And these
financially benefit the village folk. Once
these assets are created, their benefits last
a long time, says Sreedharan.
For the ROI-mongers, the Forest Survey
of India has found an increase of 1,161 sq.
km. of forest cover in Tamil Nadu between
the 2001 and 2003. However, this increase,
cautions the department, can be a mix of
both real changes and interpretational
changes. With remote sensing technology,
interpretational corrections are part of
the methodology. These corrections keep
reducing in subsequent assessments
with increasing ground-truthing, and
real changes are depicted only after some
years, says Sreedharan.
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Govern Main.indd 57
Keeping it
In-house
1/12/2007 7:59:20 PM
Essential
technology
Voice-over-IP
projects often
stall during
or after pilot
testing. Heres
hands-on
advice from
CIOs who kept
their projects
running.
UnexpectedTechTroubles
The problem: Can you manage a VoIP network with your existing staff once its in place?
The answer: Be prepared for a few glitches, and get hands-on wisdom during install.
58
Essentisl Tec.indd 58
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essential technology
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Essentisl Tec.indd 59
Top 3 VoIP
Troublemakers
59
1/12/2007 7:19:45 PM
essential technology
Essentisl Tec.indd 60
34% of
companies are
evaluating or
piloting VoIP,
29% have no
plans, 21% are
rolling out, and
14% are fully
deployed.
Source: Forrester Research, Aug. 2006
study of 366 North American companies
with domestic-only networks
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essential technology
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Essentisl Tec.indd 61
61
1/12/2007 7:19:46 PM
Pundit
essential technology
Being a Step
Ahead of
Potential Threats
The threats to your organization's security
don't always loom outside. Look within.
It doesn't hurt to anticipate.
By MICHAEL JUNG
ET-Pundit.indd 62
The problem
is posed by the
behavior of users
on the network
and devices you
manage and the
applications you
develop and use.
So, as I evaluate new opportunities
to invest in security, Im looking for
two things:
(1) Companies that offer tools and
technologies to help monitor, manage and
enforce the right behaviors in people and
devices; and
(2) Companies that make it drop dead
simple for IT folks to use their tools.
Its why we invested in Securify, and
why I think companies like Fortify
Software, which I havent invested
in but think very highly of, have a huge
opportunity in front of them.
If you havent taken a look at these
guys, I think you should, before that bad
thing happens to your company. CIO
Vol/2 | ISSUE/05
1/12/2007 7:55:44 PM