Issuu on Google+

STATE OF THE CIO SURVEY: FIND OUT WHY THE DOWNTURN IS GOOD FOR YOU

CXo AGendA Why is anuraag Maini making a culturally diverse staff a priority? Page 70

FAST moneY Kotak Securities changes the way the industry works. Page 66

SEVEN AREAS

YOU NEED TO

VOL/08 | ISSuE/03 AMARjEET SINgH, CIO, GE India, is one of many CIOs using cutting-edge technologies like big data to drive longterm growth.

januaRy 15, 2013 | `100.00

HONE TO MAKE IT THROUGH TO

2014


10 10101 10100010 10101001101 10111010010000 10101000101111101 0 00101010101000101 110 0 1 0 1 0 1 10 11 01 01 10 01 001010 00 10 01 00 10 01 01 11 10 01 11 01 10 10 01 00 10 00 10 01 00 01 10 1 01 01 00 01 10 01 01 00 01 10 10 10 10 11 01 10 01 11 01 11 00 11 01 00 01 01 00 10 1 01 01 10 01 01 01 11 00 10 0 01 01 01 0 10 10101 10100010 10101001101 10111010010000 10101000101111101 0 00101010101000101 110 0 1 0 1 0 1 0 1 0 10 11 01 1 0 1 001010 00 10 01 00 10 01 01 11 10 01 11 01 10 10 01 00 10 00 10 01 00 01 10 1 01 01 00 01 10 01 01 00 01 10 10 10 10 11 01 10 01 11 01 11 00 11 01 00 01 01 00 10 1 01 01 10 01 01 01 11 00 10 0 01 01 01 0

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From The Editor-in-Chief

PUBLISHER, PRESIDENT & CEO Louis D’Mello ASSOCIATE PUBLISHER Rupesh Sreedharan, Sudhir Argula E D I TO R I A L

Chief Irrelevant Officer? Why are your colleagues choosing to plough a lone technology furrow?

“They think bypassing us is best,” said a Delhi-based CIO to me recently, recounting how his marketing colleagues had invested in a public cloud solution without involving IT. While I could point to a specific relationship gone sour, I believe this represents a deeper malaise. There’s no denying that marketing as a department is increasingly taking on a pioneering role in using technology to generate leads, improve outreach, and tap into customer needs. And, many CMOs, like the one in Delhi, are doing this on their ownsome. Consider this, when we ran a cover story on the smart use of social media by enterprises for customer outreach, 19 of the top 20 campaigns we researched were being run without the CIO's knowledge. And, in the case of 14 large Indian organizations that were utilizing an online marketing services provider for mailers and campaign management, the CIOs were similarly clueless, even after a spear-phishing attack left customer data exposed. I believe the reason that marketing is choosing to plough a lone technology furrow is because, for long, that department has been of lower priority for CIOs, who’ve focused on putting in place systems for finance, HR, operations and sales. Given that today’s technologies make it easier for marketing teams to actively deploy IT even on slender budgets, can we really blame CMOs for being tired of waiting? Interestingly, the weapons of choice that CMOs are deploying—social media, public cloud, analytics and mobility—are those that IT has been most reluctant about. The perceptions of these technologies are also varied across departments. Where many CIOs see the potential for information and IP leakage, CMOs clearly view the upside of enhanced customer connect and experience, quicker product innovation and revenue growth. I see these as two sides of the same coin. Without risk, there can be no reward. Even if you, like me, don’t agree with Gartner’s recent prediction that CMOs will outspend CIOs on IT in the next five years, there are lessons in this for you. For, if you don’t equip your colleagues with the right tools at the right time, they will procure them by themselves. And, that only reduces your relevance.

EDITOR-IN-CHIEF Vijay Ramachandran EXECUTIVE EDITOR Gunjan Trivedi, T.M. Arun Kumar ASSOCIATE EDITOR Yogesh Gupta DEPUTY EDITOR Sunil Shah ASSISTANt EDITOR ONLINE Varsha Chidambaram Special Correspondents Radhika Nallayam, Shantheri Mallaya Principal Correspondents Gopal Kishore, Madana Prathap SENIOR CORRESPONDENT Anup Varier, Sneha Jha CORRESPONDENTS Aritra Sarkhel, Debarati Roy, Eric Ernest, Ershad Kaleebullah, Shweta Rao, Shubhra Rishi CHIEF COPY EDITOR Shardha Subramanian Senior Copy Editor Shreehari Paliath COPY EDITOR Vinay Kumaar Lead Designers Jinan K.V., Suresh Nair, Vikas Kapoor Senior Designer Unnikrishnan A.V DESIGNERS Amrita C. Roy, Sabrina Naresh SALES & MARKETING

PRESIDENT SALES & MARKETING Sudhir Kamath VP SALES Parul Singh GM MARKETING Siddharth Singh MANAGER KEY ACCOUNTS Jaideep Marlur, Sakshee Bagri Senior Manager Projects Ajay Chakravarthy MANAGER- SALES SUPPORT Nadira Hyder AssT. MANAGER products Dinesh P. Marketing Associates Anuradha Iyer, Benjamin Jeevanraj Project Co-ordinator Rima Biswas, Saurabh Patil Lead Designers Jitesh C.C., Pradeep Gulur Designer Lalita Ramakrishna events & A U D I E N C E D E V E L O P M E N T SR. MANAGERS PROJECTS MANAGER SENIOR EXECUTIVE PROJECT COORDINATORS

Ajay Adhikari, Chetan Acharya, Pooja Chhabra, Tharuna Paul Shwetha M. Archana Ganapathy

F I N A N C E & O P E R AT I O N S FINANCIAL CONTROLLER SR. MANAGER ACCOUNTS Sr. Accounts Executive MANAGER CREDIT CONTROL Sr. Manager Products Sr. Manager Production Sr. Manager IT

Sivaramakrishnan T. P. Sasi Kumar V. Poornima Prachi Gupta Sreekanth Sastry T.K.Karunakaran Satish Apagundi

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, Geetha Building, 49, 3rd Cross, Mission Road, Bangalore - 560 027, India. IDG Media Private Limited is an IDG (International Data Group) company.

Vijay Ramachandran, Editor-in-Chief vijay_r@cio.in 2

j a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

Printed and Published by Louis D’Mello on behalf of IDG Media Private Limited, Geetha Building, 49, 3rd Cross, Mission Road, Bangalore - 560 027. Editor: Louis D’Mello Printed at Manipal Press Ltd., Press Corner, Tile Factory Road, Manipal, Udupi, Karnataka - 576 104.

IDG Offices in India are listed on the next page


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contents JANUARY 15, 2013 | VOL/8 | ISSUE/03

Case Files 66 | Kotak Securities

The Year Ahead 3 6

AUTOMATION The world of stock broking runs on one word: Speed. But manual processes could play spoilsport. Kotak Securities strove to change that and, on its way, created an industry-first. By Shweta Rao

102 | Gokaldas Exports VENDOR MANAGEMENT New software could save Gokaldas Exports millions a year—the problem was it required capex investment. It seemed like a lost cause until its CIO created a payment model that kept everyone happy. By Debarati Roy

104 | Zenga Media CLOUD COMPUTING If Zenga Media needed to keep pace with the customers of its live streaming business, it would need to turn to the cloud. By Eric Ernest

more »

36 | Full Steam Ahead

9 4

COVER STORY | IT MANAGEMENT 2013 is probably going to be as rocky as the year gone by, but that’s only egging Indian CIOs on to do more with technology to drive their organizations forward. By Team CIO

COVER IMAGIN G BY UNN IKRISHN AN AV

91 | Tech Vs Legal FEATURE | CLOUD COMPUTING When it comes to cloud computing, the biggest obstacle in IT’s way is often a company’s own corporate counsel. Here’s how IT is resting its case. Feature by Howard Baldwin

VIEW FROM THE TOP: "Over time, behavior patterns will emerge and technology will be a differentiator," says Rajeev Wagle, Managing Director, Kuoni India.

4

J A N U A R Y 1 5 , 2 0 1 3 | REAL CIO WORLD

VOL/8 | ISSUE/03


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Discover which physical infrastructure management tools you need to operate your data centre. Download White Paper #104 today and 10 lucky respondents can win a Telescope! Visit www.SEreply.com Key Code 47983y ©2013 Schneider Electric. All Rights Reserved. Schneider Electric, APC, StruxureWare, vSphere, and InfraStruxure are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are the property of their respective owners. • www.schneider-electric.com • 998-4108_B_IN


contents

(cont.) DEPARTMENTS 2 | From the Editor-in-Chief Chief Irrelevant Officer? By Vijay Ramachandran

9 | Trendlines

1 0 6

18 | Alert Cybercrime | The Art of Self-destruction Shadow IT | Tracking Down Rogue IT

106 | Gambling on Startups FEATURE | VENDOR MANAGEMENT CIOs say that partnering with no-name vendors can lead to a big payoff (more innovation)— or a total bust. Here’s how to ensure you don’t fall in the second bucket. Feature by Stephanie Overby

111 | Essential Technology Business Intelligence | IT's Guiding Light Analytics | BI Pumps Up Sales

114 | Endlines Technology | Right of Whale By Lauren Brousell

Columns 24 | Big Brotherly Treatment

CIO Role | 10 Resolutions for 2013 Quick Take | On Creating a World-class Airport Voices | Your Biggest Challenge in 2013 Healthcare | Chips Go Skin-deep Staff Management | Slackers Beware Mobile Apps | Mobile Policing Mobility | The Dark Horse New Tech | 3D Sensor for Smartphones Experiment | Magnetic Laws of Attraction Legal | Minors! Quit Playing Games IT Management | Terminally-ill Technologies By the Numbers | Who Cares About Fraud?

52

FRANKLY SPEAKING What’s the point of the UID project? It's neither unique, nor does it provide an ID. It’s only fuelling the government’s Big Brother ambitions. Column by TM Arun Kumar

27 | Your Time Starts Now EXECUTIVE COACH Survival of the fastest is the new world order. And IT leaders can’t ignore that. They need to turn to agile development to keep up with business demands. Column by Michael Hugos

29 | Teaching Moment LEADING EDGE Tim Cook stepped into the boots of an incredible visionary, and still found his own, unique voice. In that journey are lessons for every leader, including CIOs. Column by Gunjan Trivedi

32 | How to Set Goals LIFE LESSONS Whether pursuing goals related to work or personal life, many people struggle to bring the important ones to completion. Here’s the science behind it. Column by Pat Brans

6

J A N U A R Y 1 5 , 2 0 1 3 | REAL CIO WORLD

7 0

CXO AGENDA Diverse Staff, Diverse Ideas How Anuraag Maini, Executive VP-HR & Training, DLF Pramerica Life Insurance, is creating a culture of attracting talent from diverse backgrounds. VOL/8 | ISSUE/03


CIO Online

.in CIO ADVERTISER INDEX

Ctrl S Datacenters

[ Edi tor's PICKS ]

1

Cyberoam Technologies

19

The Chosen Ones

EMC Data Storage Systems 98, 99, 100 & 101

To read the most interesting, exciting, and fascinating stories of the day, check out our Editor's Picks. Read the latest features, surveys, and interviews on emerging technologies, challenges and opportunities.

HCL Comnet

Falcon & Associates FZ-LLC

7 87

HP Cloud Services

34 & 35

HP IPG

15

HP Networking

48,49 & 50

HP PSG

21

HP Servers

False Cover

HP Software

23

HP Storage India

IFC

Juniper Networks

[ CI O TV ] Video Library From case studies to peer-to-peer advice, and from new technology developments to international events, our videos cover everything that's important to you. To keep yourself abreast of the happenings in the IT world around you, watch our online videos. cio.in/videos

[ S l i de S hows ] Tech's scariest monsters, 2012 in cartoons.View our slideshows for more.

[ Su r veys ]

booklet

Lenovo India

IBC

Microsoft Corporation (India)

BC

Oracle India

11

Panasonic India

13

Riverbed Technology India

3

SAS Institute (India)

25

Schneider Electric IT Business VMWare Software India

By the Numbers

Wipro infotech

5, 44 & 45 31 58 & 59

Our surveys are a treasure trove of technology, staffing, security trends and beyond. They mirror economic realities and how they impact you. Visit the By the Numbers section online. cio.in/by-the-numbers

[ N EWS ] Our CIO World newsletter gives you a daily dose of everything that affects you, your staff, and your business. Log on to check out the latest news.

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FOLLOW US ON www.facebook.com/CIOIndiaIDG twitter.com/CIOIn

This index is provided as an additional service. The publisher does not assume any liabilities for errors or omissions.

VOL/8 | ISSUE/03


neW

ediTed by SHARdHA SUbRAmANiAN

*

HOT

*

uneXpeCTeD

10 Resolutions for 2013

On Creating a World-class Airport

It’s that time of year again when airports are facing peak loads. But if you’re flying through Delhi International Airport (DIAL), you probably have less to complain about than most. That’s because DIAL is the world’s second-best airport in terms of on-time performance. And Davesh Shukla, CIO, DIAL, has something to do with that. Shubhra Rishi, finds out more.

BusinEss issuEs

You’ve worked at two—of the three—Indian airports that made it to 2012’s list of the 20 best airports in the world. How did IT spearhead this success? We didn’t really spearhead it. We didn’t drive those forces. But IT helps ensure that the parameters required to maintain an organizational score are monitored. There are 36 parameters, including the processing time at check-in counters. What’s the size of IT budget? Our IT spend is between 7-10 percent of revenue.

VOL/8 | ISSUE/03

But, more importantly, our strategic initiative at DIAL is to bring innovation. The future in DIAL is going to focus on mobility and passenger experience. Currently, for example, we have designed two applications. The first is meant for passengers and Windows 8 users. It has plenty of utility features such as real-time flight information. We are also launching a tablet for check-ins, meant for business class passengers. We are the second best airport in the world with an on-time performance of over 90 percent. This is a tremendous change since we were ranked last but one a few years ago.

Davesh Shukla

IL LUST RATIOn BY MAST ERF IL E.cO M

QUICK TAKE:

4. Pay IT forward. With technology now touching every aspect of business, it’s time to cross over departmental lines and help your colleagues achieve their business goals. Don’t wait to be asked. 3. Eat better. Feed your architecture with healthy new technologies that make cloud, social and mobile work more effectively. 2. Think bigger. Innovate rather than sustain. Make the role of the CIO synonymous with innovation. 1. Value every day. You’ve mastered the art of delivering IT on time and on budget. Now shift your focus to delivering measurable business value through IT, whether it’s enhancing customer loyalty, boosting revenue growth or raising employee satisfaction levels. —By Michael Friedenberg

trEndlinEs

C i o r o l E Happy New Year. Have you made any resolutions yet? If you’re still mulling over the possibilities, allow us to share CIO’s top 10 resolutions. 10. Lose some weight. We mean the legacy kind, not your own. Resolve to get rid of whatever legacy systems you can this year to make way for more modern architectures. 9. Spend quality time with your (work) family. Especially your chiefs of marketing, research and finance, if you want to deliver the value necessary to succeed. 8. Exercise daily. Get away from your desk and get out there with your customers, partners, clients or distributors and see what you can do to inspire deeper loyalty. 7. Travel less. Leverage social and collaboration tools to help your business and employees get more done with less running around. 6. Improve your handicap. Not the golf kind, but your areas of professional weakness. Get better at communication, marketing the value of IT, meeting deadlines and working companywide. 5. Smile more. How does the rest of the company view your IT organization and its attitude toward end users? What can you do to warm up those relationships?

How do you work around data security challenges? We take it very seriously. We have been certified on ISO270001 for two years now. We use technologies like the cloud and VDI to keep internal data on servers not on laptops and desktops. No other airport has done this. We will be the first to have a desktop environment in the cloud. REAL CIO WORLD | j a n u a r y 1 5 , 2 0 1 3

9


YOUR BIGGEST CHALLENGE IN 2013 VOICES:

MAKARAND SAWANT, GM-IT Facilities, Deepak Fertilizers & Petrochemicals

trEndlinEs

“When technologies converge, newer opportunities are created. the biggest challenge in 2013 will be information security. Support for mobility and BYOD is also a cause of concern. I believe improved Wan performance on the service provider’s part will help improve the situation.”

SANJAY CHOWDHRY, Country Head- IT, General Cables “the year 2013 will be another year of budget cuts and reducing aMC costs. as a CIO, I will feel the pressure of delivering more with the existing It setup. My main concern will be to focus on scrapping outsourcing and hiring back IT employees to reduce costs.”

DINESH CHANDNA, Sr. VP & CIO, Magma FinCorp “Our main challenge this year will be to establish a reliable and secure WAN network in small towns to support our expansion plans. also, we have outsourced our applications, datacenter, and Dr to focus on our core business. acquiring quality It resources will be another big challenge.”

10

j a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

Chips Go Skin-deep h E a l t h C a r E Researchers in the US have developed integrated circuits that can stick to the skin like a child’s tattoo and in some cases dissolve in water when they’re no longer needed. These “bio chips” can be worn comfortably on the body to help diagnose and treat illnesses, said John Rogers, a professor of materials science at the University of Illinois at Urbana-Champaign. He and his students are working at the intersection of biology and electronics, experimenting with elements and compounds to come up with epidermal electronics that are soft and flexible, yet durable enough to be worn like a second skin. The circuits are so thin that when they’re peeled away from the body they hang like a sliver of dead skin, with a tangle of fine wires visible under a microscope. Similar circuits could one day be wrapped around the heart like an electronic pericardium to correct irregularities such as arrhythmia, Rogers said. Silicon is usually too rigid to be molded to the body, but sliced to a nanometer thick, or a billionth of a meter, it becomes a “floppy” membrane that can bend and twist, Rogers said. It’s still fragile, however, so it needs to be laid on a rubber-like substrate that gives it strength. And it still won’t stretch, so the researchers form the circuits into ribbed structures that can flex back and forth like an accordion. The circuits can be applied like a child’s temporary tattoo, Rogers said, by laying them on the skin and washing off a thin, soluble backing. The resulting circuit is about 5 microns thick and can stretch by about 30 percent, equivalent to how much skin will stretch. To show the technology, Rogers rolled up his sleeve and using a microscope and an overhead projector, revealed a circuit stuck on his arm. It looked like a clear tattoo, with a spaghetti-like mass of wires embedded in the surface. The researchers are also working on transient circuits that dissolve in water when they’re no longer needed. Some are variations of the tattoo-like circuits but they can also take other forms. —By James Niccolai

VOL/8 | ISSUE/03

IL LUSTRAT IO n BY MASTERF ILE.cO M

i t m a n a g E m E n t Everyone in IT has every reason to believe that 2013 is going to be an exciting year. With new and disruptive technologies—like mobility, social media, and big data— taking shape, the year looks promising. But that doesn’t make it a less challenging year. You need to be prepared to confront your challenges before they overpower you. Shweta Rao spoke to some of your peers to find out what they think are their biggest challenges this year. Here’s what they said:


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10x faster based on comparing Oracle data warehouses on customer systems vs. Oracle Exadata Database Machines. Potential savings based on total hardware costs. Oracle Database and options licenses not included. Actual results and savings may vary.

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slackers Beware

Bad news for employees: Your slacking days are over. good news for employers: now you can tell who’s earning their paycheck and who’s spending their days updating Facebook. That’s courtesy DeskTime, a time-tracking service designed for SMBs. DeskTime employs automated software that tracks and analyzes employees’ productivity in real-time. It does this by sorting your company’s various applications into categories—”productive,” “unproductive,” and “neutral”—and monitoring who’s using what and for how long. All this happens quietly and unobtrusively in the background, with no user input required. The DeskTime dashboard provides a wealth of data: number of employees working, number absent, who’s slacking, who’s late, and so on. On a more granular level, you can examine individual workers’ stats: Time arrived, total productive time for the day, a measure of overall efficiency, and their ranking relative to other employees. This last item is actually meant to help encourage workers to compete for a higher ranking, the idea being that you’d use the stats as a carrot, not a stick. This should help boost overall company productivity. Admittedly, employees may not warm to the idea of being monitored, even with the incentive of a little friendly competition, but you’re not paying these people to goldbrick (digitally speaking). If they’re spending an inordinate amount of time tweeting and watching YouTube, you’d want to know, right?

trEndlinEs

s ta F F m a na g E m E n t

—B y Rick Broida

mobility’s dark horse The BlackBerry might be getting a lot of bad press but within Indian enterprises it still reigns supreme— except in the BFSI sector where Androids are most popular. moBilitY

BlackBerry

82%

Android

64%

iOS

44%

Windows Mobile

30%

Symbian

15%

Source:cIO Research

12

j a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

mobile policing m o B i l E a p p s To curb gang activity in California, local courts and law enforcement created a special injunctions process that permits the arrest of known gang members for small infractions—in hopes of preventing more violent crimes. But to be really effective, officers needed timely information to help them make good decisions. The answer was a mobile-data system that puts “information at an officer’s fingertips to make an arrest,” says Ed Ivora, an administrative analyst and head of technology at the Long Beach Police Department. A gang injunction is a court order making it illegal for known gang members to loiter together, possess spray paint or commit other small crimes in a pre-defined “safety zone.” If a police officer sees such behavior, he can make an arrest. But first, the officer must verify that the person has been served court papers. Before, an officer on patrol would call the records department or a gang specialist on the force to look up the paperwork. The process could take several minutes or sometimes more than an hour. By that time, the gang member was likely to have moved on. Ivora and his staff work closely with officers, including spending time with them in patrol cars, to understand how they work and what kind of technology would help them do their jobs. Using existing software and tools, the IT group created a system that ties together images, data and near real-time reporting. Once gang injunction paperwork is processed, a document proving a gang member was properly served the court papers is scanned and stored in a CMS. Using Crystal Reports from SAP, the IT group wrote an automated report to run every hour to pick up the latest scans. The system links those documents, plus maps of safety zones, to arrest records and other data stored in the police department’s Tiburon records-management system. Now an officer can access these images and files from a Panasonic Toughbook laptop that’s mounted in the squad car and connected to an encrypted VPN. Ivora is exploring whether to add photos of gang members’ tattoos and other distinguishing marks to the system to help verify identities. —By Kim S. Nash

VOL/8 | ISSUE/03


Custom Solutions Group PANASONIC

EXECUTIVE VIEWPOINT

Panasonic Ultrabook:

Slim, Trim, Sturdy Panasonic’s new Ultrabook boasts of being the slimmest, lightest and sturdiest Ultrabook in its class and features a multi-touch interface running Windows 8. How relevant is the Ultrabook in today’s enterprises? Today, the trend in portable computing in enterprises is to carry two devices—a laptop and a tablet—at the same time. Majorly because a tablet is lighter than a laptop, has a touchscreen, and is a conducive alternative to the laptop for performing routine tasks like checking e-mails, surfing, networking, and collaborating while on the move. What if both the devices were rolled into a single formfactor? Panasonic Ultrabook is that device—a perfect hybrid of a laptop and a tablet. With the Ultrabook, executives can save space, reduce device-weight, and enjoy ease of portability. Also, with an exemplary battery life of eight hours, one can be rest assured that a trip to the charging point during a normal workday is not necessary. The new Ultrabook comes from a family of Panasonic Toughbooks which account for 60 percent of the Toughbook market share. What features are common? True to their name, Panasonic’s Toughbook laptops are known to be rugged. They can resist falls, vibration, and pressure. They are also known for their long-lasting battery life. The Panasonic Ultrabook is a direct descendant of the Toughbook range of laptops

and carries over all these features. Made from Magnesium alloy, the Panasonic Ultrabook can resist drops of up to 76 cms and can bear up to 100 kg of force and vibration. The Ultrabook also comes with an excellent battery life of eight hours. The weight of laptops is a major concern for business professionals on the move. How does the Ultrabook address this? A professional team of engineers from Japan crafted the Panasonic Ultrabook. Faced with the challenge of manufacturing the lightest Ultrabook, include a rugged chassis and provide two batteries, the engineers managed to keep the weight down to 1.15 kg. Apart from the lightweight chassis, the Ultrabook is also the slimmest in its segment. If you are concerned about the ports, throw them out of the window. The Panasonic Ultrabook packs a plethora of connectivity ports like HDMI, USB, LAN, VGA, microphone jack, and a headphone jack. A distinctive feature of the Ultrabook is that it’s a tablet and a laptop rolled into one. What are the other distinctive features? As mentioned earlier, the Panasonic Ultrabook is the lightest and thinnest in its category, comes enclosed in a rugged

Gunjan Sachdev GM (National Business Head), Toughbook, Panasonic India Gunjan Sachdev is the General Manager (National Business Head), Toughbook, Panasonic India. In his role, Sachdev is responsible for the overall leadership, growth, and strategy of the Panasonic Toughbook brand in India. With over 14 years of experience in the industry, his areas of operations are more focused on sales and marketing of the brand.

chassis and has a great battery life of eight hours which is hot-swappable. Apart from that, the Ultrabook also has an optional inbuilt SIM card slot for 2G/3G connectivity, hence the Internet can be accessed without an external datacard (Internet dongle). It also comes pre-installed with Windows 8 with multi-touch screen capability. Its 128GB SSD ensures that the system boots in the blink of an eye. The lack of an optical drive is negated by two USB ports through which external memory drives can be attached.

This Interview is brought to you by IDG Custom Solutions Group in association with


Now, 3D Sensor for Smartphones PrimeSense, which developed the 3D sensing technology used in Microsoft’s Kinect is unveiling a compact 3D sensor that can fit into a variety of consumer electronic devices. The Capri 1.25 embedded 3D sensor is around onetenth the size of PrimeSense’s current generation of 3D sensors, the Israeli company said. Capri has improved 3D sensing algorithms, it said. The company expects to have samples ready for manufacturers by the middle of 2013. No price has been announced yet, but PrimeSense described the sensor as low cost. The company hopes that it will be integrated in future laptops, TVs, tablets, smartphones and other consumer electronics. Analysts believe the mobile market is interested in such sensors, especially because of their potential to enhance user interfaces. Apple’s control through patents over many elements of touch-based user interfaces discourages competitors from innovating in this area, said Malik Saadi,

trendlines

C o n s u m e r Tec h

principal analyst with Informa Telecoms and Media. Many vendors are looking into alternatives, like touch-free gesture recognition that can be facilitated by 3D sensors, he said. For example, Samsung is looking at gesture recognition and will probably

be deploying it next year or soon after, Saadi said. Mobile chip maker Qualcomm acquired certain assets of EPOS Development, a developer of ultrasound positioning technologies that can be used for different types of input, including gesture recognition. Qualcomm plans to incorporate some of EPOS’s technologies into its Snapdragon SoC (system on a chip) platform that is used in many smartphones. Voice and gesture recognition are key to the future of smartphones, Saadi said. The combination of touch with voice and gesture recognition will likely lead to a superior user experience and innovative application development, he said. “Any efforts to add new user interface capabilities are increasingly important as smartphones all start to look the same, with the homogeneous monoblock touch screen being the dominant design of the industry now,” said Ben Wood, chief of research at telecommunication analyst group CCS Insight. —By Lucian Constantin

E x p e r i m e n t Researchers at MIT and other institutions have demonstrated a new type of magnetism, only the third kind ever found, and it may find its way into future communications, computing, and data storage technologies. Working with a tiny crystal of a rare mineral that took 10 months to make, the researchers for the first time have demonstrated a magnetic state called a QSL (quantum spin liquid), according to MIT physics professor Young Lee. Theorists had said QSLs might exist, but one had never been demonstrated before.“We think it’s pretty important,” Lee said. Lee and his fellow researchers didn’t carry out their work with IT advancements in mind, but while studying how a QSL works, they saw a phenomenon called long-range entanglement that may brighten the prospects for new types of storage, computing or networking. The two other known forms of magnetism are already widely used. Ferromagnetism, the effect that makes compass needles turn and refrigerator magnets stick to metal, causes attraction or repulsion between two objects. In this type of magnet, the

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“magnetic moment,” or direction of magnetism, of all the atoms inside is the same. In antiferromagnetism, the atoms within an object have opposite magnetic moments and cancel each other out, which makes them line up in orderly patterns. This effect is used in materials added to hard disk drives to make them more reliable. The research on the QSL state revealed other rare and interesting phenomena, Lee said. One was an effect called longrange entanglement, in which two widely separated particles can affect each other’s magnetic moments instantaneously. That effect could aid in the development of quantum computing, which uses a “qubit” based on the quantum state of an atomic particle to represent each bit of information, according to Lee. In addition to helping to reliably store data and do calculations in quantum computing, long-range entanglement might aid in communication technology, according to Lee. A QSL material might also be turned into a superconductor for efficient electrical transmission over power lines, Lee said. — By Stephen Lawson

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illustration by masterfile.com

Magnetic Laws of Attraction


Minors! Quit Playing Games Microsoft’s interactive entertainment business in Seoul. So far, the only affected Windows phone is the Nokia Lumia 710. For future Windows handsets the company is working on ways to avoid the blockage, Song said. Other companies have also suffered under the law. In June, Sony closed its PlayStation Network service in Korea due to the complicated restrictions. In October, Microsoft rolled out its latest mobile operating system, Windows Phone 8, which was initially made available in 70 countries. The new OS has yet to make a big impact against industry giants iOS and Android. The shutdown law did not have a big impact on Microsoft’s overall sales in the country, Song said, because of the low percentage of underage Xbox gamers. It is also a common practice for local teenagers to use their parents’ information when signing up for online accounts to avoid the hassle of regulations. “It’s not the government’s job, it’s the parents’ responsibility,” Song said, speaking about Korea’s Internet regulations. “The excessive regulations are hurting business growth.” —By Yewon Kang

trendlines

Le g a l Microsoft has locked minors out of its mobile app store in South Korea since December last year. Young users are blocked from the mobile app store as an unintended side-effect of the country’s so-called “Cinderella law,” which cuts off access to online games for users under age 16 from midnight to 6 AM. To battle teenage addiction to video games, the government enacted the law in November of last year. But due to resistance, it relaxed the regulation so that children under 18 now have the option of setting the time limit for themselves with the agreement of their parent or legal guardian. Because Microsoft uses a single login for all services the law means the company must block users under 18 during those hours. But because of technical difficulties in cutting off access for certain periods of time, Microsoft decided to close down the adolescent users’ accounts altogether. “We operate in 190 countries and Korea is the only country with such regulation, so the age verification system had to be installed,” said Jinho Song, a director for the

RIP: Four Terminally-ill Technologies

1. Mobile Applications The brightest thinkers in technology have predicted the demise of apps for some time. Apps will transform into intelligent agents that know about our preferences, location, even the time of day and our schedule. We won’t need a weather app anymore, or even a widget. Instead, the phone will customize the home screen to feed only the data we need based on our own customizations. That means not having to manage hundreds of apps. 2. Traditional Desktops This is an interesting paradigm shift that might require some adjustment in 16

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our thinking. Today, your desktop is the place you store apps and picture of your kids. Over the past few years, though, thin-computing devices such as the Google Chromebox have shown how oldfashioned a desktop is. ScienceLogic’s Piriano says the desktop will die in 2013 as more companies move to a virtual desktop in the cloud-benefiting from centralized control in the process.

3. BlackBerry Predications of the impending doom of the BlackBerry smartphone have swirled for more than a year. Constant delays in new operating system upgrades, misfires with tablets and new form-factors and management turnover are only part of the problem. The real issue: Employees want a consumer phone they can use at work.

We’re connected 24x7 now, so having a dedicate business phone that won’t play Angry Birds doesn’t make sense any more.

4. Private Branch Exchange (PBX) The desktop phone in your cubicle might be on its last leg. Adam Hartung with consultancy Spark Partners says the big technology fail of 2013 will be the traditional corporate PBX system. The problem is that escalating costs and maintenance fees look less and less attractive to companies, especially when employees have started bringing their own gadgets to work and using them exclusively. “Employees are happy to bring their own phone,” Hartung says. “Companies only need to know how to collect and manage the connections.”

—By John Brandon Vol/8 | ISSUE/03

image by masterfile.com

Call them the epic fails of technology. In 2013, a few technologies will fade into an abyss, swirling around and clinging for a last gasp of air before eventually dying.

IT M a n a g e m e n t


c o m p i l e d b y A n u p Va r i e r

Best Practices

Fraud: India Turns a Blind Eye A KPMG survey reveals that Indian companies do almost nothing to identify and prevent fraudulent activities that expose critical data to security risks.

Show your commitment to the ethical business model by ensuring transparency in decision-making, building a robust governance model, and creating a zero tolerance culture. This will encourage staff to take security seriously.

2

Leverage technology and continuous monitoring tools to ensure controls originally put in place don’t become outdated. If you don’t keep your systems updated with the latest security tools, fraudsters will get ahead.

3

Take a re-look at the business foundation and ensure continuous evolution of the control and monitoring framework.

trendlines

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Corporate India’s unwillingness to see fraud as a strategic risk poses a grave threat to firms as they start experiencing frauds of the future, indicates the KPMG India Fraud Survey 2012. Cyber crime, IP fraud—including counterfeiting and piracy, and identity theft—were rated as the top fraud concerns for the future by survey respondents across all sectors. Close to 55 percent of respondents indicated that their organizations experienced fraud in the last two years as opposed to 45 percent in 2010. Over 70 percent of survey respondents admitted that they had no effective mechanism in place to mitigate fraud risks. Highlighting the under-preparedness among companies to tackle fraud, the survey noted that nearly 78 percent of respondents were unaware of the risks associated with IP infringement, counterfeiting or piracy. Around 53 percent said they had faced identity theft and did not have a policy to mitigate these incidences yet. Surprisingly, even though a majority of respondents were impacted by various types of frauds, around 71 percent felt fraud—of any type—was an inevitable cost of doing business, implying that fraud mitigation and risk management ranked low on their agenda. The survey received responses from 293 CXOs from Indian and multinational firms across major industry verticals with a turnover of over Rs 500 crore.

1

Who Cares About Fraud? The number of companies that experienced fraud:

71%

Of companies feel fraud is an inevitable and fraud mitigation is ranked low on their board level agenda.

70%

Of respondents don’t have an effective mechanism to mitigate risks from frauds.

2012 2010

45%

55%

53%

Of companies have faced identity theft but don’t have a policy to mitigate these incidences yet.

78%

Of companies are unaware of the risks associated with intellectual property infringement. Source: KPMG India Fraud Survey 2012.

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Enterprise Risk management

The Art of Self-destruction D

I MAGES by PHOTOS.COM

avid Petraeus is probably the last person you might have expected to wreck his career with an e-mail scandal. Petraeus is smart: He graduated in the top 5 percent of his class at West Point and went on to earn a Ph.D. Petraeus has self-control: His selfdiscipline was “legendary,” according to Time Magazine. And Petraeus knows what he’s doing: During his time as a four-star general and as director of the CIA, he acquired an intimate knowledge of how easily e-mail can be hacked. And that’s why it’s so incredible that even Petraeus did the dumbest thing imaginable when it came to his e-mail: He trusted it with his secrets.

Limitations of the Mind The Petraeus fiasco involves a sordid and tawdry “love pentagon” with five very high-level professionals flirting, harassing, investigating,

gossiping, sexting and more. It also involves issues of national security, inter-agency rivalry, legal boundaries around surveillance and more. This whole mess came to light—and careers and, probably, marriages were ruined—because of evidence harvested from Google’s Gmail. Everybody should know—and CIA directors should definitely know—that cloud-based e-mail services are not safe places to put things you don’t want anyone to see. In fact, Petraeus used an old trick he probably learned from Al Qaeda militants. The trick was this: Instead of sending e-mail to his biographer/ girlfriend, Petraeus simply kept messages in a draft folder without sending them. Both parties had the

findings

Mobile Disconnect

18

Mobile application development

68%

Mobile device management

51%

Mobile policy definition and administration

51%

Developing a comprehensive mobile strategy

49%

Mobile applications support

49%

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e-mail address, and simply logged in and read the drafts. Pathetic? Probably. But the reason Petraeus did such a dumb thing is the same reason why half the celebrities in Hollywood end up with naked cellphone pictures on the Internet, the same reason kids entering the workforce increasingly don’t get hired because of some online photo or comment, the same reason countless families argue over things posted or e-mailed, and the same reason people get fired every day over things they say online. That reason is a fundamental flaw in human nature, which is that we think our potential audience is the same as our intended audience. When teenagers post ill-advised pictures or comments on Facebook,

CIOs were asked in which areas they most lack in-house expertise in. Mobile device management ranks in the top five, which makes their reluctance to buy into MDM solutions surprising.

40%

Of Indian enterprises don’t have—and aren’t considering— an MDM solution. Vol/8 | ISSUE/03


The Fastest UTM appliances for SOHO/SMBs Get ready for network security appliances that offer upto 5 times more throughputs than the industry average, making them the fastest UTM appliances for SOHO/SMB segments. Cyberoam NG Series. Future-ready security.

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alert

EntErprisE risk managEmEnt

they’re thinking about a small number of friends reading it. While they’re thinking of those people, their brains prevent them from thinking about grandma, or the teacher they friended, or the friend who copies the content and broadcasts it publicly, or the future HR manager vetting job candidates. It’s not that humans are dumb, but that we’re single-minded. The second flaw in human nature is something economists call “present bias.” When the reward is now, but the risk later, we can’t help but to embrace the reward and ignore the risk. “Present bias” is why people get into crippling debt, take dangerous drugs, overeat and voluntarily do other things that cause regret. E-mail feels now, but e-mail is forever. And so are social media and other online activities. But they don’t have to be. A good rule of thumb is to only post or send something online if you would be happy to show it to your mother, children, partner, and boss. But there’s a loophole. A category of free services lets you communicate everything else with very low risk. The handiest solution is “e-mail” that self-destructs, like the taped messages in Mission Impossible. You type your message on a website, rather

than sending e-mail. The site will send e-mail, not with the message, but with a link. In some cases, the services will allow the recipients to read the message once, after which time it’s deleted. In others, you can set an expiration date. The best of these are OneShar.es, Burn Note, Privnote, Destructing Message and This Message Will Self Destruct (all available in India). Note that the Destructing Message service has an interesting twist: It doesn’t identify the sender. Of course, you can identify yourself in the message, but you don’t really have to. It’s both temporary and anonymous. Some e-mail services, including Gmail, may block incoming mail from Destructing Message. There’s a related type of service that’s useful when you want to keep a link private. You paste your link into the service, and set the expiration date. Then, the service creates a temporary link that leads to the real link. Examples of this type of service include This Link Will Self Destruct or Dying Links (also available in India). Note that Dying Links is highly configurable, enabling you to specify a delayed activation, an expiration date

and time, and even a maximum number of clicks before it expires. It can also shorten URLs. Sometimes, you just want to show someone a picture, but you want to do it securely and privately. In that case, you might try SnapChat (available in India). SnapChat is an iOS and Android app that lets you send pictures from your phone to a list of recipients, who can view the picture only from within the SnapChat application, and only for a maximum of 10 seconds. The sender can even choose to set the time limit to less than 10 seconds. While the picture is displayed, the screen capture feature on the recipient’s phone is disabled.

Are these services Unethical? You might think that these services are unethical and are only for people with shameful secrets to hide. But it doesn’t hurt to be smart when using e-mail, and social networks. Whether you use these services or not, you should know they exist. With these tools, you can enjoy the benefits of online communication without the risks. CiO

Mike elgan is a frequent contributor to Infoworld (CIO’s sister publication). Send feedback to editor@cio.in

[BiggEst sECUritY tHrEat in 2013]

“BYOD will be the biggest security threat in 2013. the demand to allow personal devices to access corporate networks is increasing. this will have a huge impact on security. to tackle BYOD, it should look at mDm solutions and create policies that take care of both enterprise security and employee privacy.” — SESANKA PEMMARAJU, IS DIRECTOR & CISO-GDC, HITACHI CONSULTING

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54 22,000 70 Galleries – part of Dubai’s vibrant art scene

people visiteD art Dubai in 2012

per cent of miDDle eastern art is traDeD here. Welcome to the reGion’s artistic hub

When you run the numbers, Dubai means business. see the film at vision.ae/viDeos/numbers

expo2020Dubai.ae Vol/7 | ISSUE/04

info@falconanDassociates.ae

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alert

Enterprise Risk management

Tracking Down Rogue IT

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business apps. After some more filtering, we were left with a short list of apps that are being used but never went through the review process. One of those was for storing presentations by the board of directors. Only a limited number of people would be interested in such an application, and after a few calls, the CEO’s administrative assistant told me, “Sure, we’ve been using that app for almost a year now.” She had used her own credit card to sign up for one year of service for $3,000 (about Rs 1,65,000 ) and then filed an expense report. What’s the harm, right? Well, after looking into this app, I found that it uses no encryption, has a poor authentication model and offers no process to remove users once they no longer need access.

TV Remote Sensing

S

ome call it shadow IT, but I am among those who call it rogue IT. Both terms refer to IT that has made its way into an organization without proper approval. Rogue IT can crop up very easily these days. Just about anyone with a valid credit card can spin up applications and infrastructure under the radar. If there’s no need to integrate with existing infrastructure, no contract review and no requirement for a purchase order generated by accounting, users can arrange to receive SaaS or even IaaS with no one in IT being the wiser. What my company has embraced is the SaaS model. In fact, SaaS has became our preference, followed by buying software, then building it. But our reliance on SaaS doesn’t mean that anything goes. Before any SaaS application is authorized, it must meet a rigorous set of needs in areas such as security, availability, and viability. But those needs don’t eliminate the possibility of unauthorized arrangements being made. At a recent business meeting, the CIO asked if we have a rogue IT problem. Much as I hated to, I had to say, “Yes, probably.” Having admitted as much, I felt the need to find out the extent of that problem. Rogue client applications on PCs aren’t the problem. We can easily discover them with our configuration management tool. But cloud-based apps typically require no client-side application, except for a Web browser. How do you find those, without spending money on yet another security tool? I turned to our network gear. Our Palo Alto firewall and the network sniffers installed at egress points gave us a comprehensive list of all fully qualified domain names of the sites to which employees make connections. We filtered out all the tolerated sites, which left us with a shorter list. Some of these were for known and sanctioned

We also found that a business group had contracted for the use of a SaaS knowledge base for our customers. Some very sensitive, proprietary data was being stored on that site, which offered no encryption in transit (SSL) or at rest, no proper account management and no redundancy if the site went down. Sadly, our IP was being put at risk of exposure in this way when we already have a very robust knowledge base. Unfortunately, this particular group knew nothing about it and set off on its own to fill its needs. All in all, I guess it’s better to know about all of this stuff than it is to remain blissfully ignorant. CIO This article is written by a real security manager whose name and employer have been disguised for obvious reasons. Send feedback to editor@cio.in

If you’re watching TV and the channel suddenly changes, you may not have sat on the remote control by accident. Researchers with the security consultancy ReVuln in Malta have found a vulnerability present in most TVs made by Samsung Electronics that could allow an attacker to install malicious software, turn on its webcam and even change the channel from afar. In a video titled The TV is Watching You, ReVuln shows the screen of an unspecified Samsung LED 3D model with a vulnerability that is exploited by the researchers giving them “root” access to the TV, or total control. “If the attacker has full control of the TV...then he can do everything like stealing accounts to the worst scenario of using the integrated webcam and microphone to ‘watch’ the victim,” says Luigi Auriemma of ReVuln via e-mail. “The vulnerability affects multiple models and generations of the devices produced by this vendor, so not just a specific model as tested in our lab at ReVuln.” Auriemma said Samsung TVs run on Linux. Some models allow users to attach USB drives to the TVs. The vulnerability would allow a hacker to access a USB drive remotely and look for sensitive information. It is also possible to copy the configuration of a TV’s remote control, which would allow a hacker to copy the remote control’s settings, and remotely change the channel. Malicious software could also be installed on the TV’s operating system. — By Jeremy Kirk

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Custom Solutions Group HP SOFTWARE

EXECUTIVE VIEWPOINT

Measuring up to modern performance practices For most companies, performance testing can be so hard that sometimes the results aren’t useful. It doesn’t have to be like that. Not if you use with HP’s service virtualization. What are the common challenges of performance testing? As performance testers begin working alongside functional testers and developers, they face one very important challenge: Traditional performance measurements require comprehensive utilization of shared resources to accurately predict production performance characteristics. Performance testers must overcome the limitations of testing only part of the application’s system without being able to include the resource overhead of the incomplete or unavailable components of the application’s architecture. In the earliest stages, testers are forced to conduct performance tests at the unit and component level only, with almost no ability to properly extrapolate results to the real world. The outcome is a rigid and untimely performance validation practice that stakeholders may perceive as an ineffective—or even—valueless approach to performance validation. Why is service virtualization important for managing performance testing? Bad performance test design will generate load on components that are out of scope— resulting in very inefficient performance testing practices. It means that a performance tester will spend time scripting or focusing on performance issues with a component that is completely out of scope, completely unchangeable, or completely not owned by your company. Performance testing allows you to virtualize those components that shouldn’t be distractions, so you can instead focus on the performance characteristics of the code and components that are most critical and most important to the project.

What are the benefits of service virtualization for performance testing? Performance testers face challenges that pose a serious threat to the success of every application development effort. If there is no plan for overcoming these issues, the result will be project delays, budget overruns, or even total system failure in production. Service virtualization addresses these challenges by avoiding accidental interface overload, beginning performance testing earlier in the lifecycle, preventing late-night performance testing schedules, overcoming budgetary limitations for lab resources, avoiding performance test work stoppage, improving performance testing analysis and prediction, and reducing performance test complexity. How can HP Service Virtualization help in improving performance testing? HP Service Virtualization is a software product that you install and configure to work seamlessly within the system-under-test (SUT) environment. The Service Virtualization application processes run independently on their own machine or virtual machine, with network connectivity open to receive network API calls from the SUT. As a result, the SUT may operate with full functionality, including the network API calls to the virtualized external services, without disrupting or invalidating the operation of the SUT components. When using HP Service Virtualization in this manner, the performance testing accuracy and measurements are improved greatly, which increase the usefulness of the results. How can ROI be calculated for service virtualization? Calculating ROI for performance testing solutions can be very complex. The complica-

Amit Chatterjee Country Director, HP Software India Chatterjee incubated the software business for HP, taking the company to a market-leading position. With over 25 years of experience in the IT industry, Chatterjee is always keen to introduce new businesses, and undertake initiatives to help the company grow.

tion is due in part to the fact that benefits of most performance testing solutions—preventing defects and bottlenecks, and reducing outages in production among others—are almost always indirect. However, there are three common contexts for calculating the ROI of HP Service Virtualization. First, you can calculate the ROI associated with the elimination of a performance test delay due to missing or unstable components of the SUT. This is the most common calculation used. Second, calculate the ROI associated with reduction in hours of overtime for late-night performance testing. And finally, calculate the ROI associated with reduction in hours spent coding, configuring, and maintaining custom stubs or home grown virtualization.

This Interview is brought to you by IDG Custom Solutions Group in association with


TM Arun Kumar 

frankly speaking

Big Brotherly Treatment What’s the point of the government's UID project? It is neither unique, nor does it provide an ID. It only fuels the government’s Big Brother ambitions.

W

hich government collects biometric data of all its citizens? Not many, one would rightly suspect. And that is not because they can’t; it is because they choose not to. However, some governments have, in the past, tried something similar. But, these are not the kinds of regimes that anyone would like to be associated with. The Nazi Germany under Hitler’s rule, for instance, tried something similar—it identified and listed all the Jews in Germany and we all know what transpired after that. Lately, some western democracies like the UK, Australia, and the US, have thought about it, but have wisely dropped the idea mainly due to privacy-related concerns and, more importantly, the fact that biometric recognition is not 100 percent accurate.

False Positive

Illust ration by masterf ile.com

The accuracy and reliability—rather the lack of it—of biometric data have been well documented and written about. The Economist magazine, in an article published in October 2010, says, “Thanks to gangster movies, cop shows and spy thrillers, people have come to think of fingerprints and other biometric means of identifying evil-doers as being completely foolproof. In reality, they are not and never have been, and few engineers who design such screening tools have ever claimed them to be so. Yet, the myth has persisted among the public at large and officialdom in particular.” Furthermore, a research paper titled Biometric Recognition: Challenges and Opportunities by the Washington-based National Research Council, further validates the inadequacies of biometric systems by saying, “Human recognition systems 24

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TM Arun Kumar

frAnKly speAKing

are inherently probabilistic, and hence inherently fallible. The chance of error can be made small but not eliminated.”

Opposition be Damned However, the Indian government, which likes to be compared with the liberal western democracies, marches undeterred in that direction through the Aadhaar scheme of the Nandan Nilekani-led Unique Identification Authority of India (UIDAI). This is in spite of the fact that the Bill for its establishment is still pending in the Parliament and the Parliamentary standing committee on Finance, headed by Yashwant Sinha, tore into the proposed Bill by saying that it was drafted in haste, has security gaps, is directionless, and uses unreliable technology. Similar concerns were raised by the current Finance Minister P. Chidambaram when he was the Home Minister. At that time, he wanted to conduct security checks on UIDAI servers and had said that he was "strongly opposed" to the UIDAI's proposal as the biometric collection process was "fraught with security risks". Surprisingly—or should we say rather unsurprisingly—Chidambaram has changed his tune since then and now, as the Finance Minister, wants to link the direct cash transfer scheme with Aadhaar. It’s like Lionel Messi suddenly turning up in a Real Madrid jersey.

PHoto By srIVatsa sHanDIlya

Optional or Mandatory?

26

As if pushing through with the Aadhaar scheme is not enough, the government is surreptitiously trying to make it mandatory for all citizens. It is doing so by linking services to the Aadhaar number. While the direct cash transfer scheme is being linked to Aadhaar, which means bank accounts would also be linked to it, the government has announced that the Aadhaar card is mandatory to access various services provided by it. Not just that, plans are afoot, which over a period of time, will link many crucial services to the Aadhaar number. However, the UIDAI clearly mentions on its website that the Aadhaar number is purely voluntary and is not mandatory. So, does the left hand not know what the right is doing? Or is this kind of skulduggery purely voluntary? So, one wonders what is the motivation of the government to go ahead with Aadhaar. On one hand, it is collecting your identity and giving you a number in return. On the other, it is not even unique; there are other existing identity documents like passport, PAN card, and the likes. You can’t walk into an airport with an Aadhaar number as proof of identity, can you? And, more importantly, there are big question marks over its authority. So, in essence, it is neither unique, nor does it provide an ID, and with barely an authority. So, is the Indian government morphing into a Big Brother? I hope not, but early warning signs seem to suggest so. CIO

arun has covered the IT industry in India since the time 80386 was cutting edge, MS DOS was the predominant desktop OS, and Internet was still a few years away. Follow him on twitter @aruntm

j a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD


Michael Hugos  

Project Management

Your Time Starts Now Survival of the fastest is the new world order. And IT leaders can’t ignore that. To keep up with changing business needs, IT needs to turn to agile development—now.

P

eople often ask me how I define agility and I tell them: Agility is simple things done well, not complex things done fast. Unfortunately, we fall for the latter. That’s because the platitudes that most of us deal with throughout our lives have hardwired our brains to believe that complex codes and Byzantine solutions are the only answers to most of our problems. Not to mention that complicated solutions help us prove a point, exhibit our great talents, and feed our egos. We are so busy trying to catch lightning in a bottle that we ignore the obvious answers that are staring at us in the face. I recall an incident when I was coaching a large group of developers for a large vehicle leasing company in the US. The business wanted a simple solution to help them tackle an issue. The IT team kept giving ideas that would take six months to a year to deliver—and programmers were busy writing a 100 line module of code. When I see a code like that, I just know that they are people who are smart but not talented. Planning a complex system that involves 365 days of hard work and a million dollars simply does not work. Not anymore.

Strategic Agility, Not Planning

Image by p hotos.com

Strategic planning is an industrial concept from the 20th century. And that’s no longer relevant. The world is going to change more rapidly and in a more unpredictable fashion. The business will need to adapt and respond to these spasmodic market realities, and IT will have to develop agile systems to help business achieve that. The good news: Even though the environment around you is shifting constantly, the goals remain the same. For organizations, the goal is to make profits and achieve customer satisfaction. For IT, it is helping the organization achieve both—quickly.

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Michael Hugos

Project Management

Strategic agility can lend a hand here. It helps you keep up with frequently changing business needs by breaking your projects into thirty, sixty, and ninety-day cycles. That’s important because today, the business world lives and dies by the quarter. If you cannot get something meaningful and significant done in 90 days, then you are completely useless in the modern business scenario.

Bag the Basics The question some people would like to ask here is: How can someone achieve something significant in such short timelines? The answer lies in the six core techniques that I believe are the keystones to IT agility. These techniques are a simple yet comprehensive set of skills that can be taught and mastered by people involved in building systems. The first technique is process mapping. This involves creating a data flow diagram. Then comes, data modeling in which you need to be able to create entity-relationship diagrams so that you can see the structure of the data that your system would be handling. Next is UI design or screen story boarding. System prototyping comes next. This is followed by object-oriented design and programming which will form the blueprint of your system. Finally, you move to system testing and rollout. This is a test-driven development model that requires you to run your code—written during the day—through a series of tests so that you can fix the bugs immediately. Honestly, mastering these comprehensive set of skills is not rocket science. These skills have been evolving in the IT environment for the past 30 years and can help you and your team produce competent—and sometimes even brilliant—results. But how do you use these skills effectively? This is where the 30-Day Blitz program comes into play.

The goal is to complete the process in 30 days, but that’s 30 calendar days which means its only 22 working days. To begin with, we use two days to define the problem. This can be achieved by prioritizing. For example, imagine you are writing an exam and have just two hours to sort your answers. That time line is there for a reason. It is devised to help you focus on the most important things, structure your answer, and cut the crap. Similarly, as IT leaders, you should ask the business what they need. Pick up the things that come up in the first 20 minutes because obviously those are the things that are bothering business the most. Next, we move to the seven days of conceptual designing. By now, you would have a sense of what information your system is going to be based on. In these seven days, you finalize the data model, and draw the story board of UI screens. This is followed by discussions and decision s on the technical architecture, followed by an object model that will show you how the software will be designed. Finally you come to the 13 days of programming. Yes, 13 days. Like I said, no one

The business world today lives and dies by the quarter. If you cannot get something meaningful and significant done in 90 days, then you are completely useless in the modern business scenario.

The 30-Day Blitz Program The core of this concept is based on the fact that the best modules are highly cohesive and loosely coupled. When you isolate functionalities in highly cohesive modules that are linked to the system through data calls, it’s easy to add another module or add logic to the code. After all agility is about continuously evolving the systems you develop and releasing new features—every two to three weeks—as the business comes up with new requirements. The 30-Day Blitz program is based on those six core techniques that I mentioned earlier. Under this program, we approach a problem with a three-step methodology. These three steps are: Define your problem, design your solution, and build your system. Each of these three steps is then further broken down into subsets containing a combination of the six core techniques. 28

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needs those 100 line programming modules. More features mean more program code, which in turn means more bugs and sad running programs. A good object model will show you the modules of your code. You come to an agreement with the business people and get started. I suspect by the end of the third day, you would have enough program code to start testing every night. This is extremely important because at the end of the 13th day, you don’t want to hand over a bunch of untested codes to the business. At the end of 30 days, the business can see the system. Tell the business: ‘Here’s a system that’s easy to master and will help you solve the biggest problems that you have right now.’ Relish the look of disbelief and bewilderment on their faces. Ask them what features they would like you to add. Get started on your next 30-Day Blitz. CIO

As told to Debarati Roy Michael Hugos is a former CIO, agility mentor, consultant and author. He is currently managing principal at SCM Globe. His latest book is Enterprise Games: Using Game Mechanics to Build a Better Business. Send feedback on this column to editor@cio.in

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Gunjan Trivedi 

leading edge

Teaching Moment Tim Cook stepped into the boots of an incredible visionary, and still found his own, unique voice. In that journey are lessons for every leader, including CIOs.

T

image by photos.com

he last 16 months have been quite eventful for the new CEO of the most valuable company in the world. Coming straight out of the shadow of one of the best-known names in the business, nay the world, and stepping into the most challenging role in tech history, Tim Cook’s hadn’t had it easy. But he has forged his own path and brandished his own style of leadership at Apple. This period has seen Cook ride several troughs and crests ranging from Apple’s stock price skyrocketing (it rose by 43 percent) and its new launches, to the trouble the company faced over the environmental and labor conditions at its contractors factories to senior management shakeups, and to his apology for the Apple Maps debacle. Last month, in an interview with Bloomberg’s BusinessWeek, Cook shared his perspectives and strategies on how he sailed through it all. Inc.’s Eric Markowitz boiled down this interaction to highlight key leadership lessons that CEOs should learn from Cook. I am sharing the essence of these lessons, lessons I believe CIOs and the senior IT decision makers can adopt and apply within their organizations to run their department more successfully and more effectively. Be Diverse. Be Fresh. Cook believes that the diversity of thought among Apple’s teams is a cornerstone of his management philosophy. Take a leaf out of his book, and find ways to encourage variability in the mix within your fiefdom, and encourage plenty of different approaches to meet goals in order to pick a path that works for you. Gone Wrong? Apologize and Course Correct. "So many people, particularly, I think, CEOs and top executives get so planted in their old ideas, and they refuse or don't have the

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Gunjan Trivedi

leading edge

courage to admit that they're now wrong," said Cook in the interview. Cook, himself, over-estimated the readiness of Apple Maps, and readily apologized when negative user reactions emerged. He suggests that every leader has such moments. Some ideas or approaches may seem fruitful at the start, but if they cease to be effective, don’t remain wedded to them. Own the problem with humility, and charter a new course or backtrack when it’s appropriate. Transparency Equals Trust. For a while, Apple found itself continuously under attack for the less-than-ideal standards it allowed the employees of its manufacturing partner, Foxconn, to work under. Cook opened the gates, allowing the world to see how Apple operated, and thus created much goodwill. Here’s the takeaway: By keeping users and team members in the loop, and having transparent processes, you can build loyalty and encourage engagement more effectively. Keep Your Users Close, But Your Customers Closer. Cook regularly walks around Apple’s stores and reads through customer e-mails. Not allowing yourself to become insular is very important, he believes. Frequently connecting with your clients, users, and colleagues will help you to be in a better position to spot trouble—or an opportunity far in advance.

Your peers, customers, and teams, will respect you all the more for it. Do, What You Do Best. Despite its size, Apple only has a few products. “We argue and debate like crazy about what we're going to do because we know that we can only do a few things great," said Cook in the interview. “At the right time, we’ll keep disrupting, and keep discovering new things that people didn’t know they wanted." There’s a lesson here: Identify the absolute key differentiators that are both internal to your team—internal and external—and which impact users or customers. Focus on invigorating these areas that distinctly set you apart. The caveat: Do not spread yourself thin. Evidently, with his calm and steady demeanor, Cook has successfully established himself as a visionary who has his management philosophy uniquely carved out and has avoided the temptation of being ‘the new Steve.’ Quite clearly, I see these leadership lessons offering valuable insights for leaders to steward their teams, divisions and organizations. CIO Gunjan Trivedi is executive editor at IDG Media. He is an awardwinning writer with over a decade of experience in Indian IT. Before becoming a journalist, he had been a hands-on IT specialist, with expertise in setting up WANs. Reach him at gunjan_trivedi@idgindia.com


Custom Solutions Group VMWARE

Cloud Corner Thought Leadership

Best Practices: What Makes Cloud Computing Tick Girish Gowda Head-IT Infrastructure, Weir India

A private cloud addresses the security, compliance, and policy concerns. It also provides a competitive edge. And that is an important aspect of business. Weir India, with its three business units—Weir Minerals, Weir BDK and EnSci—is a part of the Weir Group, which provides engineering solutions to the industries of minerals, mining, power, oil and gas. Our journey to the cloud started in 2009 with virtualization. Prior to that, we had a small server room with only two servers. We depended heavily on physical servers, since a lot of applications were installed on them. In 2011, Weir India acquired the Hubli-based manufacturer of industrial valves, BDK Engineering Industries. Merging different business units with different islands of IT infrastructure turned out to be a major challenge. To fix that, we deployed a

private cloud and built a consolidated datacenter for all our business units in Bangalore. This provides IT services to our units in Bangalore, Hubli, and other regional offices. This caters to about 850 users. In the private cloud, consolidating applications and assorted IT resources had to be dealt with carefully. But unlike physical datacenters where applications are bound to a static server, the private cloud has increased business agility, efficiency and scalability. It has also reduced costs. The private cloud has addressed our security, compliance and policy concerns—unlike a public or hybrid cloud model. This has increased productivity and improved service levels, and given us competitive edge.

T. Srinivasan MD, VMware India & SAARC

CIOs should choose a cloud solution that’s flexible and scalable enough to meet their current business needs and address security concerns in the future. Growing infrastructures and expanding networks could result in an organization cultivating datacenter silos, creating challenges for CIOs. This limits IT’s ability to leverage common management environments and drive automation or reduce opex. To overcome these challenges and invest in cloud computing, CIOs should choose a solution that’s flexible and scalable enough to meet their current business needs and address security concerns in the future. Virtualization is the foundation for any cloud deployment model. It’s a three-phased process. First, CIOs should become accustomed to the technology by deploying a testing environment, and

virtualize their tier 2 or tier 3 applications. Second, they must run mission-critical applications on it. Third is the agility phase which highlights speed and responsiveness. CIOs must develop a cloud strategy that’s evolutionary as compared to its existing IT architecture. The cloud strategy should be viewed as an IT investment which bridges the present and future cloud investments. CIOs wouldn’t want an isolated cloud platform that can’t interoperate with the existing business and can’t be leveraged for an adjacent business opportunity. Proprietary interfaces are expensive and it’s hard to move workloads and applications between clouds to get optimum value.


Pat Brans

Life Lessons

How to Set Goals Whether pursuing goals related to work or personal life, many people struggle to bring the important ones to completion. Here’s the science behind it.

W

hether pursuing goals related to work or personal life, many people struggle to bring the important ones to completion. This is no trivial matter. Dr. Brian Little, psychology researcher at Carleton University, reckons the best predictor of life satisfaction is project outcome—or more precisely, how likely people feel they will successfully complete their projects and reach the goals they set.

Problems in Goal Attainment

Illust ration by PHOTOS.COM

Most of us spend our lives juggling a variety of pursuits. At any given time, each of us has around a hundred different goals, which may be as insignificant as picking up milk on the way home from work—or at the other end of the spectrum, they may target an impact as large as changing the philosophy of the industrial world. Why is it so hard for some people to finish what they set out to do? The three most common causes of frustration are: Not knowing what you really want: People don't always know what they want, so they set their sights on a project that may seem meaningful at first, but turns out to not be what they're truly after. Once the shiny object loses its luster, any motivation to obtain it fizzles out. Setting unreasonable goals: People sometimes set goals that are beyond their control; or sometimes they shoot for an objective that simply can't be achieved in the amount of time they allocate to work towards it. Losing site of the goal: People don't stick to the plan they laid out to reach their goal. Sometimes they get distracted by some new opportunity, and put aside what they originally wanted to accomplish. 32

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Pat Brans

Life Lessons

This whole business of setting and reaching goals is important enough to open up several lines of research, with results that might help IT directors bring both their work and home projects to completion quicker and more predictably. Consider some of the more salient findings. Research in procrastination shows that people easily turn their attention away when they are doing something they feel forced to do or when they aren't comfortable with the expected outcome and what it means to their self image. If you don't have a choice in the matter, you tend to work like a slave, which is neither efficient, nor the right attitude for bringing the project to completion. People who are afraid of what project outcome means to their self image also seek to avoid working towards the objective, and are easily distracted. Think of all the people who have trouble finishing a thesis, a presentation, or a book. Why? Because going on stage after the work is complete is always a scary prospect. According to Dr. Carol Dweck of Stanford University, if you set out to do something with the attitude that the results will prove you have talent, you're likely to put off working on that project, and you won't work as well. You'll probably interpret all minor setbacks on your way to achieving your outcome as indicators that you don't have the talent you wish to display. Dweck says that a healthier and more productive approach is to maintain a learning-orientated attitude. All you have to do to reach your outcome is learn. With this kind of attitude, obstacles that stand in your way say nothing about your core self. Whenever you come up to a hurdle, you just learn the things you need to jump over it. The hundred goals most of us set have different attributes. Brian Little and colleagues have developed a system for classifying pursuits along a variety of dimensions. One such dimension is control. How much control do you have over project completion? Another dimensions psychologists use to catalog personal projects is the community dimension, along which you can plot the extent to which a goal is of value to people who are important to you. Pursuits that are relatively low on the community dimension may be blocked by those around you. Conversely, you're likely to get help from other people for those goals which are of value to the community. What researchers have found is that some of the biggest problems in goal attainment start with what the objective means to the person setting the goal. How do you define your goal and what is your attitude towards the outcome?

A Simple Technique for Setting Goals There's an easy method that will guarantee the completion of both personal and professional pursuits. Try setting goals with the following essential characteristics.

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Research shows that if you start something with the attitude that the results will prove you have talent, you're likely to put off working on that project—because you'll interpret minor setbacks as indicators that you don't have talent. • Everything that has to be done is within your control. • The outcome is important to you. • Working towards the goal is something that requires learning, as opposed to something you do as a way of showing off talent. • The outcome is not only important for you, but also for people close to you. • The project is challenging. • It's something you choose to do. If you find that hard to remember, you might try using the acronym WILL DO, where • W is for within your control • I is for important • L is for learnable • L is for love; you do it in the context of a community. The outcome is important to other people and you have support • D is for difficult • O is for optional; you choose to do it If a goal doesn't have all these elements, consider redefining your goal. For example, a salesperson who is trying to win 10 deals next year will find that taking those orders is not within his or her control. Customers have to agree; and economic factors come into play. However, the salesperson can set the goal to do everything possible to win 10 deals next year. By defining an objective in this manner, all responsibility for bringing the project to completion lies with the salesperson, and he or she wastes no time worrying about forces beyond his or her control. Another element that frequently requires a little thought is the last one, which is that the goal be optional. If your boss comes in to tell you to complete a project by next week, that's not your goal. Your goal is to get a promotion. You alone choose your pursuits. You alone are responsible for reaching the goals you set. CIO Send feedback on this column to editor@cio.in

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EXECUTIVE VIEWPOINT

Ramachandran Viswanathan, Country Manager-CI & Cloud Solutions, HP.

Dawn of the Converged Infrastructure Maturity Model HP India’s Country Manager for CI & Cloud Solutions talks about the benefits and importance of a converged infrastructure maturity model (CIMM) for today’s cloud-based enterprise infrastructure.

Ramachandran Viswanathan overlooks the cloud solutions sales across India and his team is responsible for developing cloud ecosystem by partnering with leading ISV’s, SI’s and channel partners. During his 12-year career at HP, he has spearheaded sales for HP ProLiant servers within the country. He has more than 18 years of experience and has held various sales, marketing, business development, and technology positions in the Industry.

What are the major stages in cloud capability maturity? We have devised the converged infrastructure maturity mode (CIMM) to primarily ensure that customers are ready for their future requirements while they utilize the full potential of the existing infrastructure and applications running in the datacenter. The five key steps HP follows on CIMM is based on a complete understanding of the customer’s environment. We have some tools and technologies that can be implemented to ensure that the assessment of the environment is done properly and help the customer in slowly graduating from the one step to another. The first step or the first maturity model is that we guide customers and ensure that their environment is completely standardized and consolidated. The second one is helping them make a transition from consolidation to virtualization and automation. This is followed by building their architecture, which is a self-service of their infrastructure. The fourth step is taking them towards application and providing them with lifecycle management, and the final step is how we ensure that we are able to build one converged cloud environment for the customer.


Custom Solutions Group HP Enterprises

Is this an extension of the SOA maturity model? Or is it a separate, parallel model? Today, if you look at the usage of service oriented architecture (SOA), it is seen widely in many of the stages. For example, if I want to do application enablement, it is the first layer that quickly fits into SOA. The second one that is quite commonplace is how SOA is linked to their applications, how the lifecycle is managed using such architecture and utilizing the same thing for exchanging message between different applications. So, we see SOA as a model that can come into the implementation at different stages, predominantly for application and information exchange. But if you look at the whole model, even though it is just services delivered to customers, it can be utilized for standardizing the existing platform and getting the platform to a self-serviced infrastructure level.

What role do standards play in how the cloud maturity model has evolved? This is a game of standards. In the first stage of standardization and consolidation, we build an ecosystem which is completely standard. Standardization is not to say that configurations are equal or the brands are equal, but their capacity is adequately measured for the application that is going to run on it. And then there is regrouping of multiple applications into a single infrastructure or a resource pool to get the consolidation image. The second stage is the virtualization and the automation part. Here, we are talking about customers creating hypervisors on multiple forms, which can arise from any vendor. Thirdly, the orchestration tool that is deployed is completely platform or hypervisor-agnostic. This allows customers to concentrate on standardizing. In the fourth stage, we use technologies to ensure that the database automation is taken care of, which means implementation of the application for database is of a certain standard so that customers don’t need to redo the same activity every time. And finally, there is a layer, which will allow customers to connect the private cloud with a public cloud or a managed cloud seamlessly depending on their requirement.

What impact does the cloud maturity model have on overall cost benefit? With standardization, the customer is now able to reduce the cost on infrastructure, power and cooling and able to build the most ecological datacenter that is possible. In terms of reusing the hardware and optimizing

their virtualization layer, we give the customers the flexibility of using certain hypervisors that are available as part of the OS or at a low cost rather than looking at a single option. In the automation layer, the customer does not have to buy one tool for every stage of the maturity model; the tool that the customer buys at the second stage of the capability expands as we move towards the later stages of the maturity mode, thereby saving costs. Enablement of the self-service portal according to a customer’s requirement also helps in reducing costs. As a result, the time-to-market is low and there is an improvement in the application readiness. The speed of innovation helps us in saving the costs of the customer.

With standardization the customer is now able to reduce the cost of infrastructure, power and cooling, and is able to build the most ecological datacenter possible.”

Finally, convergence means that a customer does not need to manage islands, put multiple administrators in place and manage multiple application protocols individually. All these are consolidated into one single IT team and the CIO can thus truly become the broker of a service.

How does the maturity model help make the transition from one phase to another more seamless? The orchestration tool is not a piece meal tool. It is modular. To this end, HP offers customers the HP CloudSystem Matrix. For example, in the future, if a customer wants to get into a public cloud, a small piece of software called ‘cloud server automation’ sits on top of the orchestration layer. The cloud server automation will drive the orchestration, application integration, lifecycle management, database automation and extending towards a portal that can be accessed by either the admin team for internal uses or for consumption by the consumer team.

How does it help mitigate the risk of cloud deployment? The assessment service helps in mitigating any risks associated with cloud deployment. The cloud discovery workshop identifies the cloud strategy for the customer. Application assessment checks if the application is ready for multi-tenancy and if it is secure for deployment to the cloud.

What role does the maturity model play in rolling out a hybrid cloud? HP has created an orchestration and management layer which can integrate a customer’s private cloud towards a managed cloud (hybrid cloud). Here, the infrastructure is managed by the service provider or a public cloud provider and converges to provide a single view for the user to deploy their applications.

Some CIOs believe that business-critical applications do not belong in the cloud. Do you agree? Currently, we have the live example of Salesforce.com, platform-as-a-service (PaaS) provided by different vendors, and aApplication-as-a-Service where ERP, CRM are on the cloud. I do not really think that applications can differentiate the usage of a particular cloud deployment, but I want to highlight that mission-critical data is something that customers are wary of moving to the cloud. Data is critical. Databases classified as confidential can be stored in-house, but the application can be hosted from anywhere. Application security protocols provided by cloud providers ensure that your application is safe, and the data is anyway stored in-house so customers don’t need to worry. There is no challenge or issues in porting business-critical applications to the cloud. The customer, however, has to ensure that the environment is completely secure, ports are rechecked, tools and technologies implemented are validated, and data is at a secure location.

This interview is brought to you by IDG Custom Solutions Group in association with


Business Intelligence

Mobility Enterprise Social Media

Cloud Computing

Cloud Computing The Year Ahead

2013

The Year Ahead

Customer Engagement The Year Ahead

Enterprise Social Media Outsourcing

Big Data

Big Data The Year Ahead

Mobility

Outsourcing


The Year Ahead

Full Steam AHEAD THE AgENDA

2013 is probably going to be as rocky as the year gone by, but that’s only egging Indian CIOs on to do more with technology to drive their organizations forward. BY tEAm CIO It’s 2013 and, boy, we are glad that the last year’s done with. That’s the good news. The not-so-good news? The coming 12 months aren’t going to be a whole lot easier. Just over a third of Indian CIOs, the largest majority, believe that the slowdown of the Indian economy will continue to have an impact on their companies. Forty percent say that from a business perspective, 2013 is going to be a very challenging year. From an industry outlook, 67 percent believe the next year is going to be somewhat to very challenging. Fortunately, CIOs aren’t backing down. They are aggressively pursuing a bunch of technologies that will help their business get new projects up faster and cheaper; improve collaboration, decision-making speed and productivity; jumpstart the innovation required to find competitive advantage and gain market share, create greater customer loyalty, and reduce costs. According to the State of the CIO Survey, one of the most comprehensive Indian surveys of your peers, the technologies that Indian CIOs plan to invest in include big data, business intelligence and analytics, cloud computing, enterprise social media, and mobility. Additionally, they are also going to use outsourcing and make customers a primary focus area in 2013. They are going to need all the ammunition they can lay their hands on, especially given the other trends the State of the CIO Survey has uncovered . These include retreating business horizons, the clear transition IT budgets are seeing from capex to opex, and shrinking pay, among others (see the State of the CIO Survey pullout). Yet, in the midst of these challenges, half of all Indian CIOs believe that their teams will have a good year in terms of meeting the goals set for them. Read on to figure how.

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In tHIs IssuE

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Cloud Compting’s public half finds more believers.

41

Customer Engagement goes centerstage.

46

Mobility CIOs just can’t get enough of it’s benefits.

52

Business Intelligence finally begins to bloom.

55

Big Data starts to drive large bottom line benefits.

60

Outsourcing Entrenches itself deeper in India Inc.

63

Enterprise Social Media goes beyond mere idle talk.

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Cover Story

The Year Ahead

i

THE POTENTIAL OF PUBLIC CLOUD

A PublicAffair

R oad t o 2 0 1 3

45

%

Of CIOs expect to invest in cloud computing this year.

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IT and the public cloud never got along. But this year, the public cloud is building new credibility and forcing IT to love it back. B Y E ric E r n e s t In corporate circles, inside the four-walls of IT, and at executive gatherings, tales of the affair between the public cloud and IT have fed uninterested CIOs with far-fromjuicy gossip. It was clearly a relationship—between IT and the public cloud—that was doomed from the start. A lack of trust, a world of insecurity, and a baggage of unresolved issues had crippled its foundation. A series of public cloud outages wasn’t helping. And it seemed like IT would never be able to trust the cloud again. Well for starters, there was a time when even the very concept of vanilla cloud computing took a considerable amount of time to build credibility. But with the passage of time, the cloud has only matured. From being a bottom-of-the-pyramid technology, cloud computing, in its many shapes and forms has grown to be a respectable and reliable technology for enterprises. This is evident from the fact that it features in the CIO priority list and is gradually making its presence felt in Indian organizations. Consider this: According to the findings in the State of the CIO Survey, almost 80 percent of all respondents were at some stage of implementing or had already implemented a cloud solution. Also, 35 percent of all respondents thought that cloud computing will have the single most profound effect on the CIO’s role in the near future. When it comes to the type of cloud implementation CIOs plan to deploy, 48 percent said they opted for a private cloud, 38 percent chose hybrid cloud, and only 14 percent went for a public cloud. The public cloud might not be a favourite yet but the percentage of organizations implementing it has jumped by 9 percent—a significant improvement. This makes the public cloud promising. Its gradual progress to the top is encouraging CIOs to spare a thought for the technology.

Going Public Taking a leaf from their peers, some forward looking CIOs have already started looking up to the public cloud.

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The Year Ahead

According to this edition of the State of the CIO Survey, a good majority—53 percent—of respondents see the main benefit of implementing a public cloud solution as that of increasing business agility. This was followed by other factors like reducing infrastructure costs and converting capex to opex, among other things. For Jagdish Belwal, CIO, Tata Motors, cost savings, scalability and process excellence are the benefits that he is expecting from his public cloud implementation. Belwal is planning to move his Web-based, external facing portals to IaaS platforms. In addition, he also plans to explore moving non-production systems—such as development boxes—to an IaaS platform as they are prone to seasonality of usage and remain unused for long periods of time. On the other hand, he strongly feels that the cloud offers niche, expert process solutions. Tata Motors has decided to leverage this through a technology principle. “We will first look at the cloud to deliver any new business process requirement that comes our

jagdish Belwal, CIO, tata motors, has a new rule: henceforth, the cloud will get first preference in meeting any new business requirement.

way. Our technology principle now is that whenever a new process enablement request comes in, we will first look at the cloud as an option, then we will look at packaged products. And then only we will turn to internal development” says Belwal. Another public cloud champion is Jayanta Prabhu, CTO, Essar Group. Prabhu also wants to reap the benefits of reduced capex and scalability when he looks to expand his presence on the public cloud. “Going forward, I have aggressive plans to increase the number of apps on—Microsoft’s public cloud platform—from four to 10,” says Prabhu. “We are also evaluating the possibility of moving SAP to the cloud.” Today, going to the cloud for specific business applications can surely be a cost efficient strategy. M.G. Raghuraman, CIO, Mphasis, says that Mphasis reaped significant cost benefits when he opted to deploy a cloud-based on-demand solution for his CRM system. Through this CRM tool—which has also been integrated with their enterprise applications—Raghuraman says that the company is now able to manage and track the entire sales life cycle, from lead generation to opportunity, right up to finalizing the deal. “I pay Oracle on a pay-per-use model based on the number of licenses deployed. This helped me cut initial investment costs during implementation and also provided me the flexibility to ramp up based on additional business requirements,” says Raghuraman. Another advantage that Raghuraman gained out of opting for this solution is that it was quick to implement and therefore it reduced his time-to-market.

Cloud Cover There’s no doubt that the issues surrounding public clouds have overshadowed the various benefits that it offers. From vague SLAs to infrequent availability, and from security to vendorlock in, the public cloud’s shortcomings can’t be ignored. When opting to implement a public cloud solution, Prabhu says there are a

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Cover Story

The Year Ahead

bunch of hurdles that CIOs need to cross. “Contracts management is a big concern with public cloud service providers. Appropriate SLAs, availability and performance uptime are still far from being precise. However, this is expected to improve gradually.” However, Raghuraman points out that there is an inherent lack of flexibility to customize cloud-based applications as you would see on on-premise enterprise applications; and this is a factor CIOs must keep in mind when opting for cloud strategy. There is a clear trade-off between time to market and customization. Fortunately for Raghuraman, the CRM tool that he chose had most of the features he wanted, and he only had to customize very minimally. He also cited possible degradation in application performance as an additional reason for not opting to overly customize a cloud application. “These cloud apps have been tailored to suit the most prevalent business processes and the best practices in the industry. So, if we use any cloud app as it is, we will perhaps get the best performance. However, if you start customizing it, then it would adversely affect performance and speed although you will get the additional functionality. So you always have to make the best compromise between the level of customization which you need and the performance of the cloud application. As a practice, my strategy is not to fiddle around and do too much customization on a cloud-based application,” says Raghuraman. Another aspect of the public cloud that could be a challenge is getting buy-in and funding for implementing the technology. However, both Prabhu and Raghuraman faced a relatively unencumbered path as far as getting the required finances to implement the project are concerned. In Prabhu’s case, despite a lack of prototypes and successful cloud implementation stories, his senior management was supportive of his efforts and Essar has been recognized as an early adopter of cloud computing by NASSCOM. Raghuraman, on the other hand, had sold his idea to the CFO on the premise that he was going to opt for a pay-per-use model when implementing his cloud app solution. “The cost economics of the cloud strategy as stated earlier, found a favor with my CFO,” says Raghuraman.

Interest in Public Cloud Rises CIOs using or planning to use the public cloud.

14% 5%

mar-12

Oct-12

Benefits of the Public Cloud 54% Increases business agility 46% helps us take advantage of the latest technology 46% reduces infrastructure costs 45% Converts capital expenditures to operating expenses 44% helps to scale It consumption up or down

Top Concerns With the Public Cloud

Forecast: Sunny Days Ahead Cloud computing has had a tough time earning the respect of the sceptics and the naysayers. But it has come a long way from being IT’s incomplete invention to a full-blown, promising opportunity for Indian organizations. However, the public cloud has fought— and is still fighting—a long and hard battle to get CIOs’ attention. Sure, there are a number of concerns with the public cloud like security and integration with enterprise apps, among other things. But the advantages it offers—added busines s agility, reduced infrastructure costs and scalability—are tempting benefits for companies and IT departments to give this relationship a chance to prove itself. CIO

Eric Ernest is correspondent. Send feedback to eric_ernest@idgindia.com

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J a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

56% vendor lock-in 54% unauthorized access to or leak of our customers’ information 53% Integration of cloud data with our internal systems 52% security defects in the technology itself 52% unauthorized access to or leak of our proprietary information Source:CIo research

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The Year Ahead

In-foCUS: ThE CustOmER

Customer Engagement Tops the List

CIOs may differ on many things, but there’s less disagreement with the fact that customers will be their top focus in 2013. B Y s H W E tA R A O The onset of 2013 has—as is the norm—raised the question of which technologies will be hot this year. But lost in this talk is one important trend: How Indian enterprise are putting almost all other priorities second to customer engagement. That trend showed up in the State of the CIO Survey, with 47 percent of Indian CIOs saying they plan to complete projects that strengthen IT at the customer engagement front in 2013—a 15 percent rise from last year. S.S. Mathur, GM at the Center for Railway Information Systems (CRIS), is halfway down that road. The increased use of Web services and smartphones has raised the Indian Railways customers’ expectations. As a result, it’s increasing the stress on CRIS’s systems by 30 to 35 percent a year, he says, as more functions come online. “Because of the increase of Web-based transactions, we are looking at reducing the number of resources every process needs by 50 percent by the end of 2013,” says Mathur.

Catching Up with Change Accenture’s Technology Vision report for 2012 suggests that services that combine real-time signals from the physical world with contextual inputs will be a big hit in the Indian subcontinent and will drive customer demands to a new high. As if on cue, many large enterprises are already catching the wave. At Bausch & Lomb, India’s market leader in eye healthcare business, Director-IT, Shuchi Nath Nagar, has found a solution to keep pace with these demands. Two years ago, Nagar realized that the company’s sales representatives were struggling to build a 360-degree view of the company’s customer. “The problem lay in the non-integrated, structured and unstructured activities, such as transactions, meetings, calls coverage, call schedules, survey results, and communications. So, 2013 will be about looking for a complete view of all customers interactions, across channels—and bringing them on a single platform, such

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%

Of CIOs plan tO COmplete prOJeCts that stREngtHEn CustOmER EngAgEmEnt durInG In 2013.

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Cover Story

The Year Ahead

that our brand lives to the expectations at all customer connect points,” says Nagar. He devised a customer engagement infrastructure with a wide range of apps “In the retail business, systems that quickly respond to retail to study his customer base at a deeper demands at sales outlets are a level. The apps capture operational data must,” says Ajay tyagi, dGm-It such as the time customers spend looking at relaxo footwear. at products or observations made during an interaction. “This data then drives our content development methods,” he says. Mathur at CRIS is handling the situation a little differently. “It’s important to focus on strengthening the first stage of the customer purchase cycle. This is a crucial stage where the customer realizes his need, searches for information, and even evaluates alternatives,” he says. “As online transactions have gone up considerably over five years, we found that the front end is a crucial factor to rejuvenating site performance. Today, the website performs over 12-15 lakh transactions every month for reserved tickets and over one crore transactions for unreserved tickets. However, we still see over 20 lakh failed transactions every month. And that’s why we have begun to strengthen the middleware that supports our ticketing front-end.” Demographics and psychographics (interests, food preferences, Mathur realized that the old code was designed for a limited numlocation preferences for advertisers) together provide valuable insights ber of transactions. A robust middleware allows an increase in the into our best customers,” says Mathur. number of concurrent customers using ticketing service.

Multiple Customers, One Challenge One of the trickier parts of enhancing customer experience is trying to personalize a company’s offerings according to different segments. T.S. Purushothaman, VP-IT at Reliance Big Entertainment, supports the IT for the company’s various services across diverse segments including movies, music, sports, gaming, Web portals, etcetera. But that impressive amount of work involved doesn’t deter him. In fact, he’s using it as an opportunity to cross-sell products. However, from cinemagoers, to Hollywood producers, to Internet gamers, Reliance BIG’s customer profiles vary drastically across business functions. Customer profile information sourced from multiple databases can get too wide-edged for a deep and quick analysis of customer needs. “I will be working at making these data warehouses relevant and fast to ensure that the transactional systems scale up as per the new world’s requirement,” he says. The Indian Railways’ customers, too, are varied and include passengers, freight customers, parcel shippers, and others like advertisers, which is why Mathur has employed systems to analyze who his customers were. Segmentation helps. “We have tried to profile customers with similar demographics and psychographics in a single database. 42

J a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

Real Time Service

Increasingly, businesses have shown the need to capture more realtime information to meet customer demands. As a CIO of a company that’s deeply into wholesale distribution and exports, Ajay Tyagi, DGM-IT at Relaxo Footwear, feels that customer service without realtime control over the supply chain is a half-baked effort. “In the retail business, systems that quickly respond to retail demands (mainly replacements and exchanges of footwear) at sales outlets are a must. The fact that your competition is able to quickly cater to a customer’s demand to exchange a product, whereas you cannot, is a warning sign that you are lagging. This can only be made possible with a transparent and real-time view of all retail outlets,” says Tyagi. Not surprisingly, CRIS’ Mathur has channeled the existing infrastructure to make it more agile to face similar demands. Dynamic changes in customer demands are worked into the system. For example changes in freight rates need software modification. However, a rules engine is being developed so that such changes can be handled through a workflow built into the system. So the effort is to move software and system modifications down to a set of pre-designed workflows for frequent changes in functionality. CIO Shweta Rao is correspondent. Send feedback on this feature to shweta_rao@idgindia.com

Vol/8 | ISSUE/03


WHEN IT MEANS BUSINESS IT departments have fast evolved from business enablers to business drivers. With increasing demand from CEOs and board members for measurable value of IT, it is now widely recognized that IT needs to step up and drive the business. The big question staring at CIOs today is ‘How can they make this transition successfully?’ Find the answers at the 2nd edition of CIO Summit. Driven by IDC & IDG, this business conference for IT leaders has been designed to focus on the business value of IT. With an impressive lineup of international speakers, real-life case studies and research findings; this residential conference will provide you with all the answers to make a successful transition from business enabler to business driver. At the conference, you can also meet and interact with some of the brightest minds in Indian IT and exchange ideas and best practices. All this and much more, at the CIO Summit 2013.

GLOBAL INSIGHTS

David McNally IT Executive Advisor, IDC (USA)

Ankush Chopra, Ph.D. Asst. Prof. Of Strategy, Babson College (USA)

Venu Reddy Research Director, IDC India

The conference is designed with dedicated themes to focus on the impact of technology on your business. Leading with Innovation: In this session leading academic and IDC analysts will present a framework for innovation encouragement and innovation management. Leading with Performance: The session will examine how CIOs can deliver programs which result in shorter ‘time to market’ and56% tangibly contribute to business results. Leading with Transformation: Lead by a global practitioner and IDC analysts, this session will help CIOs understand when a situation is truly ‘transformational’ and what they can do remain relevant and become successful through these situations.

Prashaant Huria CIO, EMEA AstraZeneca (UK)

DATE & VENUE

INSIGHTS FROM IDC

Shalil K Gupta Consulting & Insights Director, IDC India

THEMATIC AGENDA FOR FOCUSED DISCUSSIONS

6-8 March 2013 | Hyatt Regency, Pune

Sanchit Vir Gogia Principal Analyst, Emerging Technologies, IDC India

ENTRY BY INVITATION ONLY To Request For An Invitation, Visit www.ciosummit.in

Jaideep Mehta VP & Country GM, IDC India

Event Organisers


Things that Will Shape Your World in 2013 From making the cloud more sustainable, to digitization and working with geographical power shifts, 2013 will see technology trying to enable intuitiveness, simplicity and seamlessness for users. If 2013 is anything like the last few years, it’s going to be marked by an uncertainty, volatility and disruption. None of which is conducive to business or IT planning. So what’s a CIO to do? The trick is to decipher which trends are going to take center stage—and then figure out how they affect the business and IT.

Towards that end, here are the five things Schneider Electric believes will influence major IT and business decisions over the next year.

Geographical Shift Once upon a time, India’s large cities were the drivers of its growth. That’s changing. With access to disposable income, India’s cash-rich middle-class is demanding all the luxuries their city-

cousins have, creating a consumer market few can ignore. In fact, McKinsey expects 25 Indian cities to become mega-cities, cities that have over 8 million in population and over $250 billion in GDP. This growing market is driving providers—from retailers to hospitals to hotels—to these cities, taking with them their hunger for a continuous supply of electricity. And because it’s hard to get,

there’s a growing demand for power solutions like UPSes and inverters. The demand for power solutions also extends to SOHO and SMB/SMEs. According to a MAIT, the SEC “C” segment is major driver for PC sales, which is driving UPS sales. According to MAIT, secondary cities made up 54 percent of total UPS sales.

Everything as a Service The days when one sold a product and then forgot about it are gone. Today, customers want a complete experience and are willing to pay a premium for convenience. On the supply side, businesses now realize that service is a prof-

Interview

Revolutionize Your Datacenter Schneider’s comprehensive solutions help to interconnect all key datacenter subsystems and ensure maximum efficiency. CIOs can now build a robust back end to support their business’ growth this year.

Shrinivas Chebbi

VP-India & SAARC, Schneider Electric

What’s Schneider doing to react to the trends it sees for 2013? Some of the major trends we’re seeing include the evolution of the cloud, the increasing use of virtualization, the rise of big data and analytics driving datacenter growth, and increasing focus on energy efficiency. To address these trends, Schneider Electric offers end-to-end solutions across the lifecycle of datacenters including design, build, operate and maintain, manage, optimize and assess. Our value proposition lies in our ability to maximize availability and uptime, enhance

productivity, improve utilization of assets, minimize operating cost and optimize energy consumption. Schneider Electric is the only company to view the datacenter as an interconnected environment. We call it the datacenter physical infrastructure, because it bridges all key datacenter subsystems and is the cost-effective path to highest availability and maximum efficiency. Power, cooling, rack systems, management, services and physical security—Schneider Electric delivers expert solutions and services across these complex domains.

Through these efforts we ensure the overall reduction in both opex and capex. This reduction stems from reduced energy consumption, the alignment of IT and infrastructure needs with high efficiency, and the achievement of business objectives. The business also gets increased visibility with monitoring as CFOs can now access energy-cost information. What are your plans for the Indian market? Managing energy is increasingly becoming important because global energy demand is likely to


Custom Solutions Group

itable opportunity, instead of the cost drag it used to be perceived as. It’s also an opportunity to lock customers for longer periods of time and increases the scope of offering bundled products or service experiences. The increasing adoption of cloud computing and the growing pervasiveness of SaaS (Software as a Service), PaaS (Platform as a Service), and even IaaS (Infrastructure as a Service) justifies the focus on this trend. According to Forrester survey 50 percent of Indian companies have adopted cloud solutions in 2012, compared to 40 percent in 2011, and 27 percent in 2010. In a world dominated by everything-asa-service increases the scope of solution offerings for companies like Schneider Electric, which have a multitude of value propositions to address all the critical power related needs of customers.

Digitization We are already witnessing the excitement around big data everywhere. Big data is nothing but the use of analytics to find useful information from the ever-increasing number of data points available

double by 2050 while global carbon emissions should be halved. To help our customers with this challenge, we have put in place a strategy for profitable and sustainable growth that combines leadership in innovative products, and solutions and services, so that our customers can make an informed decision in energy procurement strategies, carbon management and sustainable resource planning. Schneider Electric has introduced a comprehensive end-end services portfolio for energy management services that cover energy assessment and consulting, single point ownership of retrofit projects with demonstrated savings and, EnergySTEP, which offers a scalable approach to intelligent energy man-

from customer databases and social media platforms, and harnessing that information for organizational growth. At the same time, LTE devices and MiFi capability among smart phones will lead to greater mobile data usage. With 80 million Internet users in India, the World Wide Web and mobility make for a game changing combination for businesses. Currently, 28 percent of people book their travel online, 47 percent of the classifieds business is operating online, and 7 percent of people use online banking. With these numbers growing, this platform will force businesses to change how they take their products and services to consumers. Similarly, consumers are demanding more and more remote control an d capabilities to gather information and use it from the increasing digital asset footprints be it a remote datacenter, a factory abroad, or just another warehouse in the other city.

Sustainability We are a year closer to 2050, when the global demand for energy is going to double. There is

agement. Thereby, helping customers save 30 percent of their energy bills. We intend to adopt integrated O&M and RIMAA practice with performance contracting that has uptime, availability, efficiency improvement, TCO reduction and energy savings as its KPIs. We will focus on captive datacenters which outsource datacenter management as it is not core to their business. Schneider Electric will also focus on promoting DCIM software-Struxureware, and increasing customer awareness for the unique value proposition of upgrade and retrofit through audit and assessment offerings.

an alarming need to halve carbon emission by 2050 to avoid dramatic climate changes and their aftereffects. Electricity demand is going to double by 2030 and there’s no denying that the energy dilemma is going to cost businesses dearly. Some of the tangible effects are rising energy costs, unreliable power supplies, and increasing conflicts for access and control of limited resources. The industrial sector consumes about half of the total commercial energy available in India, 70 percent of which is in energy-intensive sectors including those producing fertilizers, aluminum, textiles, cement, iron, steel, and paper. According to the Energy and Resources Institute in New Delhi, between 15 and 25 percent of this energy usage is avoidable. India’s energy efficiency is the fifth lowest in the world, so there is plenty of room for substantial energy savings. The coming year will see a major focus in the areas of energy efficiency, renewable energy, electric vehicles, smart grids, and smarter cities.

Comeback of Government Spending Governments are not only spending to save their economies from a recession but also because people want protection from the uncertainty that major capitalist economies have seen in the past. In India, 13 states have a projected spending of about Rs 5,000plus crore on ICT annually. India also plans to invest around Rs 216,000 crore on IT spending in the next few years across schools, municipal councils, India Post, India Railways, and healthcare (database for patient records). In terms of businesses, the focus on CSR is not only a priority but also an opportunity as government spending will take place in various fields including infrastructure, education, financial inclusion, etcetera. Schneider Electric has the capability to offer valuable propostions in all of these segments.

Business-wise, Future-driven. S L F RO I T SADAX ACAPEXAOPUEA J BAS I I P YY RCAL I VNATAK ZOA L A RORO I HH R P L ABQRAMUU RE F F I C I ENT UNMR X B I L R E T C QW S R J P M L I N I O MA XR T MQ AQJ ENERGYB NYH YZ SYHNHEABR JQ COO L I NGE R T R D D DTEEKS L YE N CHBACKUP Y OU A B K L BDU N R P F J HM L E R M TS I MPL EVR J YZ

Now align your datacenter architecture to your business needs in just seconds with Schneider Electric's Infrastruxure solutions. For further details Call: 1800 4254 877.


Cover Story

The Year Ahead

i

This section is brought to you by

MOBILITY’S POWER TO DELIVER BUSINESS VALUE

thE Corporate Connection

R oad t o 2 0 1 3

62

%

Of Indian companies will complete deploying mobility solutions in 2013.

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J a n u a r y 1 5 , 2 0 1 3 | REAL CIO WORLD

Mobility is shaking off it’s nice-to-have tag, and becoming a force that can provide solid value to the business. BY Eric Ernest If you’re one of those organizations that don’t believe in the power of mobility, chances are you’ll soon be termed as outdated. Because if you turn a blind eye to the potential of mobility—despite BYOD, consumerization of IT and its cousins that have stirred up a revolution—your competition will get the better of you. That’s a bad place to be in when your competitors and consumers are going the mobile way. And taking a cue from the impact that mobility has had on consumers, today’s employees are pushing their companies to embrace consumerization of IT and facilitate BYOD. Enterprises can also latch on to the anytime-anywhere opportunity to do business that mobility provides. Not just employees, even analysts from IDC and Gartner swear by the many benefits that mobility offers. While IDC expects an increase in worldwide IT spending to be driven by smart mobile devices—smartphones, tablets, e-readers—it also expects mobile device sales to account for 57 percent of overall IT spending growth in 2013. Also, Gartner expects mobile phones to overtake PCs as the most common Web access device worldwide by 2013. Closer home, the mobility trend is definitely catching on. According to the State of the CIO Survey, the number of CIOs not interested in implementing a mobile technology came down from 10 percent in 2011 to 7 percent in 2012. The survey also found that respondents considered mobility as the second most likely factor (25 percent) to have a profound impact on CIOs in the near future, after cloud computing (35 percent). Moreover, 22 percent of the respondents considered creating a comprehensive mobile and tablet app development and adoption plan as one of their top three important IT initiatives for the next 12 months.

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The Year Ahead

Top Mobility Drivers staffers and customers demanding real-time information

Calling on Enterprises

Increased focus on innovation

While mobility by itself is only an extension of the capabilities that enterprises already have, the business impact of implementing such a solution can’t be underestimated. “Mobility is a very cost effective way of extending your enterprise system to the field,” says Dinesh Rao, divisional CIO, Trade Marketing and Distribution, ITC. One of the benefits that CIOs hope to leverage from a mobility solution is the ability to create a more informed decision-making process. This is what S.S. Sharma, head-IT, JK Tyre & Industries, is looking to achieve when he implements his mobility solution. He plans to implement a solution aimed at his company’s sales force wherein a sales person can access all the information related to sales activities through a mobile application from anywhere at anytime. This will empower the company’s sales force with the right information at the right time and help customers make informed decisions.

senior management requesting access to business critical data Source:CIo research

“When employees are empowered with the necessary information, they will certainly be more productive,” says Sharma. Improved productivity is in fact one of the advantages that ITC reaped when it implemented its mobility solution—a mobile app—for its sales force. For the sales force, this app is mostly for the purpose of completing the process of order capture. “This (implementation) is basically to drive our secondary sales from our wholesale dealer to the retailer.” Not only has ITC been able to lower the transaction cost of order capture but their sales person is now able to visit more stores than he was before the mobility solution was implemented. “In terms of overall productivity, we thought a (sales) person visited 20 to 25 outlets in a (regular) day. But what we figured out—by doing an analysis on the amount of time that a person spent on the market—is that he could cover 30 to 35 outlets (after the mobility solution was implemented),” says Rao. B. Venkatakrishnan, Another feather in ITC’s cap is that it head-It, mahindra vehicle has also setup a MEAP (Mobile Enterprise manufacturers, is creating a mobile app that allows Application Platform) infrastructure that customers to see their allows for applications to be deployed vehiclesbeing manufactured. faster, and across platforms.

Mobile Video in the Making In the case of B. Venkatakrishnan, the headIT at Mahindra Vehicle Manufactures, the mobility solution he plans to implement will be used to provide an innovative way to add value to the customer when a Mahindra premium vehicle is purchased. This—improving customer support or services—is one of the top benefits that CIOs, who look to implement a mobility solution, expect to reap, according to the State of the CIO 2012 survey. Venkatakrishnan’s solution, which is currently in the pilot stage, envisions having a mobile application that

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Custom Solutions Group HP networking

CASE STUDY

MGIMS Goes Mobile With HP Networking When India’s first rural medical college and hospital decided to go for seamless mobility using wireless network, it turned to HP. Today, its network gives its doctors, students, and researchers access to data from anywhere on campus.

P

eople know Sevagram as the village where Gandhi chose to build his ashram. But it’s also home to India’s first rural medical college, the Mahatma Gandhi Institute of Medical Sciences (MGIMS). A non-profit teaching organization, MGIMS has a 1,000-bed hospital, a medical college, and seven hostels sprawled across 450 acres. It has over 600 students, and 150 teachers/researches/doctors who deal with about half a million out-patients and 45,000 in-patients a year.

Anytime, anywhere access Despite its rural location, MGIMS is pretty clued in where technology is concerned. In 2004, for example, it migrated to an HIS (hospital information system). “HIS helped us build an extensive repository of patient-related data on diagnoses, laboratory tests, operations, treatments, which doctors could use for improving the accuracy of their diagnoses and designing evidence-based therapies, “ says Dr. S.P. Kalantri, Director-Professor of Medicine at MGIMS. The next step was to get that data into the hands of people who needed it, exactly when and where they needed it. Earlier, when doctors wanted information, they needed to find the nearest available desktop and look it up. “This slowed down their decision making and thought process; and there’s little need to reiterate the value of every passing second in healthcare,” says Dr. Kalantri. So, in 2012, MGIMS decided to equip its doctors with iPads and asked developers to design an application, aptly named Point of Care, that helps doctors access patient data where it matters most—at the patients’ beside. “But for this system to work seamlessly, we needed to connect those devices via a wireless network. We also realized that an alwaysconnected environment could give students and researchers access to relevant information, whenever they needed it,” says Dr. Kalantri.

750 kilometers away from the closest metro, Mumbai, was tough. “Additionally, we needed a partner who would not only design and build the system, but also help us maintain and develop it. Finding a vendor that could offer an endto-end solution, spanning wired and wireless networks, and ensure its security was a tough task,” says Dr. Kalantri. HP and its partner, Fribzi Multi Technologies, in Wardha, Maharashtra, met all those requirements. And they literally went the extra mile to ensure MGIMS got the state-of-theart infrastructure it needed. By the time they were done, HP and Fribzi Multi Technologies, had connected MGIMS’ wired and wireless networks, and put in place a single pane network management solution, covering over 20 departments and seven hostels. The solution uses advanced multiple input multiple output (MIMO) technology to provide enhanced wireless range and coverage area

“The HP solution enables timely access to information, which aids doctors to help patients in time, and allows students to become knowledgeable doctors.”

This feature is brought to you by IDG Custom Solutions Group in association with

The Perfect Dose What the organization needed was to revamp its entire network architecture. But getting a partner willing to work in a village located over

for improved roaming and performance. HP’s high-end Mobility Controller manages high availability with layer-3 wireless roaming facility. It also uses HP wireless with RF sensors to provide a high level of security for the entire wireless network, an important piece of the puzzle given the highly-confidential nature of patient records and research data. Today, the network ensures that doctors, students, and researchers have more prompt access to data—and that enhances the quality of medical care and education at MGIMS. Dr. Kalantri says that it has improved the way MGIMS students, teachers, and researchers access information to teach in the classrooms, conduct workshops, present research in conferences, and manage complex medical illnesses. “Our community of researchers and student have benefited immensely from the availability of relevant information anytime, anywhere they want it. And patients have gained more trust in healthcare services due to the timely and accurate decisions that doctors can now make,” says Dr. Kalantri. HP also extended a lifetime warranty (on maintenance and operations) on the network management lowering MGIMS’ TCO by between 40 and 55 percent. A single pane of management helps MGIMS manage the entire network with ease, control security, and ensure compliance. But as Dr. Kalantri puts it, “There can be no bigger benefit than knowing how timely access to relevant information can help doctors help patients in time, and allow students to become knowledgeable doctors that the entire nation can trust tomorrow.”

Dr. S.P. Kalantri

Director-Professor (Dept. of Medicine), MGIMS


Custom Solutions Group HP Networking

EXECUTIVE VIEWPOINT

Turning BYOD into a walk in the park For the unprepared, BYOD can be a complex beast. But HP provides a simply, elegant, and comprehensive solution that eases BYOD management for IT departments and also ensures control, compliance and security. As a greater number of mobile devices latched on to enterprise networks, what should CIOs look out for? As more and more devices keep connecting to company networks with each passing day, CIOs need a scalable and cost-effective approach that supports a diverse environment of company, employee, and guest-owned devices. The approach should ideally enable users to onboard quickly and easily, with minimal burden on the help desk—even when devices are entering the IT ecosystem for the first time. A good BYOD strategy also needs to ensure great user experience and agility, without compromising security. As enterprise networks are burdened with more data streaming in and out of them, CIOs need a network architecture that delivers consistent and seamless performance across their wired and wireless LAN (WLAN) infrastructure. This has to be complimented with stringent access controls, usage policies, and a system for quickly revoking access privileges when employees leave a company or when devices are lost or stolen. Why is it important to have a single window management portal for network management across wired and wireless environments? By deploying unified access control solutions, and implementing common authentication credentials across the entire enterprise network, CIOs can ensure that users have uniform access to network services whether they are connected wired or wirelessly. A unified management system facilitates the enforcement of a streamlined and centralized policy. It also ensures a single

platform so that IT teams can monitor a wide range of devices, and infrastructure (think LAN, WLAN, WAN) with ease. By implementing a unified management system, IT teams can quickly resolve and optimize resource allocation by correlating holistic network information. For CIOs scripting their BYOD strategies, what are the benefits of having network security instead of end-point protection? Comprehensive network access controls, based on user and device identity, are the first line of defense in any security strategy. To support the intensive interaction of a BYOD user, HP’s solution is built on three strategic pillars. The first is identity aware access, to allow a quick and hassle free onboarding experience (for example, a clientless solution using device fingerprinting), and to quarantine and blacklist malware infected devices. The second pillar is unified network support, which can enforce proper policies and register authentication for compliance. It also provides seamless wired and wireless security and network management, enables the easy identification of issues, and increases wireless client range and density support. Finally, monitoring and controlling ensures best user experience while complying with regulatory requirements and optimizing bandwidth for these devices. How does HP’s BYOD solution ease manageability for the IT team? The HP BYOD solution opens up a robust and secure path for single policy enforcement and converged network management

Prakash Krishnamoorthy Country Manager, HP Networking, Enterprise Business Group, HP India Sales Krishnamoorthy is responsible for the accelerated and profitable growth of HP’s network business in India and for its market leadership. As a lead evangelist for HP, he’s been at the forefront of increasing awareness and penetration into the market of HP networking products.

across multi-vendor wired and wireless environments. Leveraging HP Intelligent Management Center (IMC), IT departments can get single-pane-of-glass management to onboard, provision and monitor users, devices, and traffic on the network. Moving beyond basic identity-based access, IMC offers a comprehensive solution, and unified monitoring further enables enterprises to optimize resource allocation and comply with regulatory requirements. No other vendor can tie it all together like HP. IMC has been conceptualized and designed to deliver these benefits to enterprises. This interview is brought to you by IDG Custom Solutions Group in association with


The Year Ahead

Benefits from Mobility Competitive/information edge

68% 10% 62%

Improved customer support or services

23%

expected benefit 59%

more informed decision-making

28% 57%

Increased efficiency of business processes

35% 54%

Improved accuracy of data collected in the field expanded revenue opportunities lowered operating costs

29% 54% 13% 52% 19% 52%

productivity gains Improved supply chain management

already achieved benefit

37% 50% 15%

Source:CIo research

customers can use to view—via a video—how their vehicles are being manufactured. The user can log on and see certain stages of the vehicle manufacturing process—the stages that the user can see are already pre-decided by the company. For this, IP-enabled cameras have been installed at the required locations within the manufacturing plant. “Say, you have booked a red colored XUV, and at 11 o’clock the vehicle is going to get dropped on the TCF (trim, chassis, final assembly) line. You can login to the system and actually see—for three to four minutes—how the vehicle is passing through the various stages of the TCF line where we will show how the engine gets fitted, how the final polishing happens, and how the quality check happens,” says Venkatakrishnan, adding that the project is in a proof of concept stage. While the aim is to provide the customer with the ability to see their vehicle at the prescribed manufacturing stages in real-time, initially the company plans to use an offline archival storage mode wherein the relevant manufacturing stages of the vehicle are pre-recorded and stored for the customer to view later on. This facility will only be available for the customers who buy premium vehicles.

Error in Connection The advent of mobility will force companies to devise new IT security policies. In fact, this is one the main challenges CIOs think they will face when implementing a mobility solution. JK Tyres’ Sharma considers securing data as one of the challenges he will come across in deploying his mobility solution. But he is planning to put some controls in place. “Once we make the solution available, whatever applications which need to be accessed, will be accessed through the cloud. The salesforce will see the required information, but they won’t be able to edit that information,” he says.

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ITC’s Rao stresses on the importance of creating relevant IT security policies when it comes to implementing a mobility solution. He states that the mobile platform is one in which organizations don’t have much control over who’s using what and that’s why information security attains top priority status. He addressed the security problem by implementing certain control methods whereby the data on the mobile device is only available for a certain amount of time after which it automatically gets erased. Another challenge in implementing a mobility solution is the wide variety of device types—smartphones, tablets, mini-tablets—and supported OS types—Android, Apple, Blackberry, Microsoft—that are available in the mobile market. So when launching a mobile app, CIOs have to be aware of whether they will be implementing a solution that is aimed at a specific type of device or at a specific type of OS. CIOs have taken different approaches to address this issue. Rao has gone about implementing his mobility app aimed at only one smartphone segment. On the other hand, Venkatakrishnan states that once his mobility solution is completely implemented, it can be accessed through all mobile devices and OSes.

Call Forward Looking at the advantages that organizations have reaped or hope to leverage, it’s easy to see that mobility isn’t just a stylish trend to implement. It actually delivers solid business value, be it in terms of increasing productivity or improving customer engagement. So when mobility comes calling at your doorstep, don’t turn away. It’s a call you don’t want to miss. CIO Eric Ernest is correspondent. Send feedback to eric_ernest@idgindia.com

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i

Business Intelligence

Kicks Down Resistance

R oad t o 2 0 1 3

56

%

Of CIOs expect to complete bi projects IN the next 12 months.

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2013 isn’t the first time business intelligence has been a top priority, but it could be the year it will actually be implemented. B Y E ric E r n e s t In today’s fast-paced digital age, given the amount and the rate of data generation, it is incumbent on enterprises to use data to gain insights and stay one step ahead of the competition. Fortunately, CIOs are stepping up to the challenge. According to the State of the CIO Survey, almost 90 percent of Indian CIOs are at varying states of implementing—or are in the process of implementing—a business intelligence solution. Out of that, 56 percent say that they expect to complete their business intelligence and analytics projects within the next 12 months, a sure sign that CIOs realize the power—and the need for���business intelligence. However, just because BI seems to the in-thing, it doesn’t mean that CIOs will have an easy time getting the necessary funds or support from management to drive the project. This was a lesson Meenakshi Agrawal, VP-IT, Mumbai International Airport, learnt. When she proposed a business intelligence solution to optimize the airport’s operations by monitoring key performance metrics—a project that is currently underway—she had to wait six months for the necessary approvals to come though. “It was quite a tough battle,” she says. “Unless you’ve seen it or worked with it (BI) before; it was more theory for users; based on screenshots from vendors. They were not able to touch or feel the benefits. The process was protracted and it took a long time to take the decision to move ahead. They were uncertain about whether the solution would be as beneficial as planned.” Part of the challenge is that business intelligence and analytics projects are seen as expensive, that’s what 49 percent of CIOs report in the State of the CIO Survey. And while many think of a BI project as a sure way to drive business, another 30 percent of CIOs say that one of the key barriers to BI is that it has no clear ROI. It helps for stakeholders to be able to see how the solution will work to get them on to invest in BI. This is what Agrawal did. “We had to have a number of demos by vendors. We asked them to take our data and put it into their tool and allow users to see their own

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Meenakshi Agrawal, VP-IT, Mumbai International Airport, wants to use business intelligence to optimize the airport’s operations by monitoring key performance metrics.

data being manipulated. In this way stakeholders felt more comfortable,” says Agrawal. Nilesh Sangoi, CTO, Meru Cab Company, who is also looking to optimize his operations using data analytics as a tool—he plans to set up an algorithm that will automate and increase the efficiency of the booking process—went about getting buyin using another way. He says to get approvals for 20 mini-projects, for which analytics was used extensively, he ensured that for each of them proof of concepts were carried out by running controlled experiments and demonstrating the benefits from the projects. This, he says, helped build greater acceptability in rolling out bigger implementation across the board.

research, the majority of Indian organizations, 74 percent, use spreadsheets or Excel to share BI or analytical insights.

The Report Mentality

What is it Good For?

Another thing that CIOs who want to implement business intelligence should be prepared for is expectation management. And that leads to another challenge: The confusion over what BI really is. “Most of the time, BI is misinterpreted as MIS. BI is not just reports, BI is beyond reports,” says Veneeth Purushotaman, business head, technology & supply chain, HyperCity Retail. “The biggest challenge (in a BI implementation) is setting the right expectation. People interpret BI as reports. That is the first disconnect, as with that interpretation comes the interpretation of granularity. People interpret reports at the highest granularity. BI cannot be at the highest granularity, it has to be arrived at the highest granularity,” says Purushothaman. What he means is that the performance of a BI solution will degrade, as the granularity of the information that is requested increases, leading to a point where performance could fall below a user’s expectations—if they aren’t expecting it. The reporting mentality is not easy to get away from given how entrenched Excel is within most organizations. According to CIO

Trying to gain a deeper insight into data can be quite problematic for a number of reasons. First, there are the various departments within an enterprise, each with its siloed data. So, when making reports the MIS team will have to work through Excel and this leads to a situation where, as Purushotaman puts it, “ there are multiple versions of the truth, none that tally with another.” In Agrawal’s case, the request to get a report on a certain category of information would be done as and when requested, in an adhoc manner. “We didn’t have much historical MIS analysis available on the fly. For example, there was no easy way for management to know the rate at which cargo imports/exports were growing or trends in passenger loads. Normally the MIS team worked manually with Excel sheets and prepared graphs as required. This is the background to us creating a dashboard for senior management with all the data coming together in ways that were easy to slice and dice,” says Agrawal. For Purushotaman, the fact that a lot of reports were Excelbased, which raise security concerns because they could be copied, was an issue that was identified for resolution by opting for BI solution. Another benefit of using BI is that it gives users “the freedom to make whatever report

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they want,” says Purushotaman. But the biggest benefit of using BI, according to Purushotaman, is that “by having a data warehouse you get to put out one version of the truth; a single version of truth that everyone sees. When you have MIS there are Excel sheets sitting at very employees system and there are a million versions of the same data.” Agrawal also looks to benefit from “enabling a one customer view” of all the required information, wherein different officials can then see all the necessary information on a “dashboard without having to request for separate reports (from various departments),” she says.

How Do You Share Analytic Insights Within the Organization?

data availability and performance,” says Purushotaman. When such steps are not taken, Current Planned you can end up with a situation mobile (smartphone- or tablet-based) 9% 48% where stakeholders decide that the dashboards and data visualizations system is too clunky and call for its termination, a situation Agrawal embedded BI 9% 37% almost found herself in. scorecards 23% 27% When the first tests were being dashboards 36% 21% carried out, MIAL users found spreadsheets / microsoft excel 74% 5% that information was being fetched in too slow a manner for their reports 73% 5% liking. In fact, they wanted to close the project on account of this Top Barriers to BI and Analytics performance level, says Agrawal. data quality problems 58% But luckily she dodged this particular bullet, and while they software licenses are too expensive 49% are still facing a few performanceIntegration/compatibility issues with existing/ 44% related challenges, Agrawal is multiple platforms hopeful that they will move ahead ease-of-use challenges with complex 38% according to plan. no clear rOI 30% Despite these challenges, there’s no denying that Indian enterprises Raring to Go Source:CIo research and their CIOs are determined The performance of a business to own the benefits that come with business intelligence. 2013 intelligence solution is very important factor to consider when could be the year of business intelligence. CIO explaining to stakeholders how a system will actually work. “Make stakeholders understand there is a lag and it takes time for information to be shown. Keep them informed very clearly on Eric Ernest is correspondent. Send feedback to eric_ernest@idgindia.com


The Year Ahead

In Search of 2013’s BIg PROFIts

BIg DATA’S BIg PROMISE TAKES OFF

Big data’s ability to deliver competitive differentiation and lower costs are attracting large numbers of CIOs. BY sHuBHRA RIsHI The doomsday scare might be over. But there’s another threat lurking within enterprises: The data beast. No matter who you ask—analysts, CIOs, or technology providers—they all agree that the challenge of data growth will only get more accentuated during the coming year. The data challenges of most companies, however, pale in comparison to those of some other companies, those that generate data by the petabyte. That’s probably why despite the immaturity of big data (the industry still can’t decide whether the term ‘big data’ represents the problems that come with large amounts of data or the solution set to leverage it) it’s getting plenty of traction among IT leaders. In fact, it has made its way to one of the top technologies that Indian CIOs plan to implement this year, joining the ranks of more established technologies such as mobility or business intelligence. According to State of the Indian CIO Survey, 40 percent of Indian IT leaders plan to implement big data analytics over the course of this year—while 16 percent say they are already in the process of implementing it. Here are some of the benefits that four companies—that are already using or planning use big data technologies in the coming year—see from their big data initiatives.

Streamlining the Business and Improving Research With diverse businesses ranging from aircraft engines, power generation, water processing and household appliances to medical imaging, business and consumer financing, and industrial products, GE produces as much data as a small country. Until two years ago though, much of that data wasn’t structured, nor was it leveraged in the most effective manner. Which is why the multi-billion dollar multinational decided to create a separate team—and assigned a dedicated leader—to spearhead a big data initiative. “GE’s financial needs for big data were huge. We required a more holistic view, so we set a milestone around big data. When you have a business with a long fail-cycle, you need to look at data across multiple years, and the defects that surface on a daily basis,” says Amarjeet Singh, CIO, General Electric India.

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ROAD tO 2013

40

%

Of CIOs plan tO ImPLEmEnt BIg DAtA analytICs Over the COurse Of 2013.

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Based on the success GE has According to Singh, GE started on its big seen from using big data, it’s data journey last year. And the outcomes planning to invest more in the it has seen have driven it to pump more technology, says Amarjeet money big data’s way. “We started our big Singh, CIO, General Electric India. data journey in a huge way in 2011. Trends such as how we are doing in our software business came out of big data. By Q2 of 2012, we started seeing results and based on these results we will be investing more in the future,” he says. There are plenty of plans in GE’s big data pipeline, but it’s doing stuff right now that has the potential of saving the company billions. Based on its big data initiative, for instance, GE implemented a tool that monitors different parts of an aircraft during take-off, and then shares that information with the ground maintenance crew. The idea, says Singh, is to be able to analyze and predict the spare parts required to service an engine even before an aircraft lands, thereby ensuring that it does not remain on the ground—where it isn’t making any money—for too long. GE is betting big on big data. And why shouldn’t it? According to GE’s Industrial Internet report, it predicts that big data technology could result in a 5 and consumer lifestyle—create data in the range of several percent cost reduction from better flight planning and operational petabytes. Philips has put in place an organization-wide business changes. That’s $8 billion (about Rs 44,000 crore) a year—from a transformation project that’s being led by its global CEO. The only single business. way to extract intelligence out of data that large, is to approach the The big data bug hasn’t only bitten extremely large companies problem using the emerging tools in big data analytics. like GE. It’s also percolated down to organizations like the Kokilaben “Conventional data warehousing solutions arep not going to Dhirubai Ambani Hospital. According to Rajesh Batra, VP-IT at the be sufficient to analyze this kind of data. We need solutions that hospital, big data is being seen as a game-changing asset. “It’s a reality. can do parallel processing and provide relevant data in a timely Not only is patient data growing, our requirements for creating vast manner, to the right business people, in order to drive decisions that storage space for medical records is also growing by the day. Since will influence business parameters and performance,” says Sreeji the deployment of a common hospital management system last year, Gopinathan, senior director-IT, Philips India. “For big data and organizational data has run into petabytes,” says Batra. analytics solutions to work, getting visibility to the right data and The hospital has over 750-beds, 103 full-time doctors, 520 nurses analyzing it at the right time is essential. This could help us gain and 200 paramedics. And it has data streaming in from as many 18 market share and profitability.” departments, with radiology creating a bulk of its unstructured data. Press reports of the company show that Philips is targeting sales According to Batra, the hospital is aiming to use analytics to draw growth in the range of 4-6 percent. Its business transformation and intelligent information from patient data for the purpose of research big data project could go a long way in helping it reach that target in the near future. even in a sluggish economy. Philips isn’t the only company that wants to employ big data to help it drive sales and acquire greater market share. TVS Motor Increasing Market Share Company’s big data challenge is to find meaning in the surplus of At the 121-year-old Philips, executives hope that in the future big unstructured data streaming in from its highly successful social data could lead them to the Holy Grail of business: Competitive media strategy, one that has ensured 150,000 likes and comments on differentiation from new products. TVS’ social media page for big sellers like Scooty Pep and Apache. As the world’s biggest lighting manufacturer, and Europe’s According to CIO T.G. Dhandapani, the company plans to increase largest consumer electronics producer, Philips generates tons of market share and wants to leverage data from mediums such as data. Its three highly-successful businesses—healthcare, lighting

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The Year Ahead

The Big Data Advantage

Facebook and Twitter to help it get there. and ground work needed before big data Earlier for instance, the auto manufacturer can take off. “For big data and analytics used to invest heavily in market-focused solutions to work, it’s not enough to just studies, in which executives travelled across have the solution. It’s important that the Allows companies to streamline different metros and locations to gather underlying transactional systems and the costs information, collate it, and deliver it to business processes that run on the systems Helps introduce relevant businesses. The entire process took between are streamlined. Or else there would be tons of products to the market three to six months and incurred a huge cost to systems where data needs to be collected, and the manufacturer. collated and data normalized, before analytics Drives up market share Using social media in areas like market could give meaningful results, and usually research is a trend that Gopinathan has they are not effective.” observed, and he says, it has ramifications for big data. “If we look at At TVS, Dhandapani has already created a project that applies the way that functions like marketing, R&D, sales, etcetera are run, intelligence to the feedback it’s getting, and it’s helping lower both the it’s changing. Concepts like social listening, crowd-sourcing, mobility cost and the time it takes to do market research. “We have introduced will generate huge amounts of data; much more than we have been a pilot involving analytics. This has reduced latency by 50 percent, a handling so far,” he says. tremendous upsurge in receiving timely feedback from customers Like Gopinathan, Dhandapani thinks big data technologies can for TVS’ products,” says Dhandapani, adding that the success of the help. But one of the challenges in the way is finding and nourishing the project will propel an investment in big data. talent and resources the business will need. As a result of this implementation, Dhandapani says product sales That’s a challenge Singh says they faced at GE. But they worked have increased considerably. their way through the problem. “We have placed a lot of focus on hiring With results like that it’s not hard to see why there’s so much internal domain experts and are arming them with tools, resources interest in big data among Indian companies. According to CIO and training. We augment that talent with external technical expertise, research, 30 percent of Indian CIOs say their companies rate their where necessary,” says Singh. The company hired 30 percent of its interest in analyzing big data between 4-5 (on a scale of 1-5, with 5 workforce from outside who were trained in different analytical tools being extremely interested). and the rest were trained internally for the initiative. Not bad for a new kid on the block. CIO Another challenge that Gopinathan says companies going down the big data path need to be prepared for is amount of preparation Shubhra Rishi is correspondent. Send feedback on this feature to shubhra_rishi@idgindia.com


Cover Story

The Year Ahead

h Making Outsourcing Work in 2013

The Source OF Success There’s a significant rise in the number CIOs who want to outsource their IT. But it needs to be done right. BY Debarati Roy

R oad t o 2 0 1 3

48

%

Of Indian CIOs are planning to outsource 40 percent and more of their IT in 2013.

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“How much is enough?” If you are among the 48 percent of CIOs who, according to the State of the CIO Survey, are planning to invest in outsourcing significantly in the coming year, it is likely that you will find that phrase under your breath quite often in the near future. However, more than just quantity, it is also a question of quality. Because, contrary to commonly held notions, outsourcing is not the end of all your problems. “Sourcing is a business tool. And most CIOs don’t realize that finding the right vendor, nabbing the perfect deal, and making a sleek SLA, is not the end of it. It is just the beginning,” says Siddharth Pai, partner and president, ISG Asia Pacific and an outsourcing consultant. Experts like Pai believe that the coming year will see some new trends emerge and some old philosophies becoming redundant. This makes it prudent to re-look at what constitutes your outsourcing strategy. One thing has become clear, outsourcing isn’t about lowering costs. “The established view was that you need to have a large cost differential. However, in India there isn’t much offshore cost advantage to be had,” explains Pai. According to the survey, 57 percent of CIOs believe that smart sourcing will help them gain access to world-class capabilities, 63 percent believe that it will allow them access to new technologies or services without having to worry about the associated challenges of skill set acquisition and retention. Cost savings, which used to be synonymous with outsourcing, has slipped to third position, with only 53 percent of CIOs citing it as a reason to outsource. Thankfully more CIOs are becoming aware of the fact that cost arbitrage is a complimentary benefit and should not become the focus of an outsourcing strategy.

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Arun Goyal, Director-IT, Quest Diagnostics, says it’s important to talk frequently to outsourcing providers because you can unearth new ideas.

“With disruptive technologies like the cloud, virtualization, mobility and big data, outsourcing’s biggest strength is that it will help you to gain capacity, capabilities and scale. It helps the CIO handle strategic imperatives, and lets partners handle commoditized services,” says Pai. Your preferred reason for outsourcing could be any of the above, but the one thing that most CIOs and experts agree upon is the fact that it’s not done easy. The decision to outsource will keep your nose to the grindstone. But a little help from the experts can definitely help. Towards that end, here are the eight commandments of outsourcing. Be value driven, not price driven. Most CIOs want more from their partners than just a quick boost to the bottom line. Daya Prakash, head-IT, LG, believes that saving costs shouldn’t be the primary motive of an outsourcing strategy. CIOs should not be looking for vendors or service providers but strategic partners who can help them innovate, and give them more business flexibility. Some CIOs even prefer to bear the same cost for outsourcing as keeping things in-house just to keep themselves at bay from the nonproductive routine jobs. Prasanth Puliakottu, CIO at Sterlite Technologies, has outsourced his entire facility management services (FMS) and has about 30-40 people working under FMS. “I can put my own people there and maybe I will be able to reduce some cost in a tangible way. But in an intangible way, me and my lean team will lose a lot of precious time dealing with the routine all over again,” he says. Don’t shortcut internal preparation and strategy setting. Sourcing decision makers should strongly resist the temptation to shortcut internal preparation. Some Indian CIOs have even spent up to 18 months mapping out their company’s entire IT and enterprise architecture to find existing gaps and priority areas. That might seem like a long time, it underlines the importance of approaching outsourcing fully prepared. The connection between internal preparation and successful sourcing outcomes has been proven before, and Forrester data shows that outsourcing decision makers find it beneficial to devote even more effort to internal preparation and strategy setting.

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This level of preparation also ensures that CIOs are more clued into what their organizations will need a few years down the line. And that enables to make more flexible SLAs. Look for value-added service. Puliakottu is categorical that while choosing a partner his focus is not as much on cost as much as it is on a partner’s VAS capabilities. “Even if the cost arbitrage is not that huge, I will pick a vendor who can add value,” he says. In today’s scenario, when businesses want quick and easy solutions, having a partner who can help you deliver projects faster and can pack in that bit extra with changing business expectations is a must. For example, when Arun Goyal, director-IT, Quest Diagnostics, needed a mobility solution, he decided to approach his partner who manages all the company’s core applications. In 2012, Quest came out with an application which allows a phlebotomist (the person who collects samples) to take Quest’s services to a patient’s doorstep. The phlebotomist is equipped with a handheld device which has a small bluetooth printer attached to it which can issue receipts and barcodes to be stuck on sample vials instantaneously. The system helps the people in the lab plan their schedules better and saves Quest man-hours and human errors that stem from multiple points of data entry. “Our partners who developed this application were well versed with our domain and core application know-how. It didn’t take them a lot of time to develop the application and also gave us a cost benefit over getting someone else to develop that app for us,” Goyal says. REAL CIO WORLD | J a n u a r y 1 5 , 2 0 1 3

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At Sterlite, Puliakottu didn’t have to go through the trouble of developing a mobile solution for the company’s e-mail. “Google is my partner for outsourcing the hosting and management of a utility service such as e-mail. And Google has an existing robust mobility platform for e-mail which came as a value add for us,” he says. DIY first, consult later. “Though there are various templates available for sourcing agreements, it is advisable to engage a consultant at the very least to incorporate current market intelligence and pricing. A consultant brings legal and other expertise that many CIOs might not have,” says Pai. But if leaders aren’t careful, the cost of third-party assistance in setting up an IT services deal can quickly spiral out of control. And that’s not even accounting for an attorneys’ billable hours. One way to ensure you don’t fall into this trap is to bring in a legal and technology consultants only after you have had a go at creating a blueprints by yourself first. Decide on a vendor strategy. It is an age-old topic that attracts extreme polarities in view. While some IT leaders swear by bestof-breed, others are gung-ho about the single vendor approach. Goyal decided to go down the single vendor route, but how do you find a partner that can do it all?“I tried to narrow down to the best in the lot and then look for the one partner that could ensure end-to-end delivery. Some of the bigger MNCs have built that kind of capabilities,” Goyal says. Over the last two years of outsourcing, Puliakottu had accumulated a bunch of partners and is now on a consolidation drive due to manageability issues. “Seamless integration of

Interest in Outsourcing Rises Outsourcing...

2010

2011

2012

2013 Est

less than 10%

24%

26%

18%

10%

11-20%

13%

16%

18%

13%

21-50%

33%

39%

37%

42%

50% and above

29%

19%

26%

34%

Source:CIo research

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LG’s Prakash says that regularly keeping in touch with his partners and the entire technology/service provider community helps him keep a tab on new technologies, and pick up those he thinks can give the organization gain competitive advantage. Bring your partner to strategic business meetings. A lot is lost in translation. So when business and IT sit down to chart out what the business needs, engage your partner as well. “Make use of your partner’s subject matter expertise. Being a part of strategic meetings will help them get a clearer idea of what the business wants. It also enables them to offer suggestions and feel more part of your organization, not just mere brokers of services,” Goyal suggests. But don’t be in a hurry to usher them into your conference room. Ensure that you have introduced them to protocols your organization follows, the hierarchical structure or general rules that many of us just take for granted. “In the past, I’ve seen even seasoned outsourcing veterans failing to adhere to basic etiquette when on a call with our headquarters in the US,” says Goyal, who remembers a lot of background noise coming from the outsourcers end. “My colleagues in the US take these things very seriously,” he says. Keep SLA’s revocable in short intervals. You wouldn’t create longterm standing orders on your financial portfolio, so why would do it to your outsourcing contract? The pace at which technology and business changes makes it imperative for CIOs to ensure that their outsourcing contracts are not set in stone for long periods. The question is: How long should a contract be in force before it is reviewed? Three years, say experts, because it takes about that long for a new technology takes to develop to its full potential. Remember, it’s never too late to pull the plug. Goyal had outsourced his managed services for hardware support for desktops/laptops. “The skill sets required for this profile is not difficult to find. At one point we realized that outsourcing this function was proving to a more expensive affair than bringing it back in-house,” Goyal explains. Raising the flag on-time at deals gone sour is a wiser option than waiting for a miracle to turn things over. “Trying to renegotiate once more with the partner could be another option,” says Pai. CIO

Bringing your partner to strategic business meetings is a good idea, but make sure you’ve first introduced them to the general rules your company follows. partners can become a big challenge, so choose your vendor strategy wisely,” he warns. Make your partner you buddy. A commonly held notion is that once you have outsourced, the baggage is off your back. Restrain from developing a myopic focus of concentrating on just what you have outsourced. Pick up the phone and talk to your vendor sometimes even when the alarm bells are not ringing. “I sit down and talk with my vendors three times a day on average. That might seem like holding the reigns too tight to some of the CIOs, but being a HIPAA compliant organization means that I cannot take any chances with security and compliance,” says Goyal. He says that these conversations can be highly informative. “While I continuously keep my partner updated on what is happening in the industry, they keep me informed about the new technologies and how these can possibly help us make a better organization,” says Goyal. 62

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Debarati Roy is correspondent. Send feedback to debarati_ roy@idgindia.com

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The Year Ahead

CollABorATIon ImPEtus Enterprise Social Media gets Buy-In

Shrinking business horizons and a focus on keeping costs low, will compel organizations to turn to enterprise social media. By Eric Ernest 2013 could be the year of enterprise social media, but don’t take our word for it. According to a survey of your peers, Indian companies are slowly, but surely, beginning to implement enterprise social media solutions. The State of the CIO Survey found that back in 2011, 30 percent of Indian CIOs were not interested in implementing a social media solution. In the 2012 edition of the survey, that number had fallen to 25 percent. The falling number of IT leaders that are opposed to enterprise social media (ESM) is only one side of the story. According to the survey, the number of Indian CIOs looking to implement such a solution has increased from 15 percent in 2011 to 40 percent in 2012. So what’s behind this uptick in interest? For one, enterprise social media solutions improve information sharing among employees, thereby quickening decision making, an advantage that cannot be trivialized at a time when, according to 50 percent of CIOs, the business horizon of their organizations has shrunk to below six months. Reaction has never been more critical than it is today. So is the ability to do more with fewer resources. That’s another advantage ESM offers. Because it fosters collaboration, it allows an increase in staff productivity. This is one of the reasons Ramnath Iyer, CTO, CRISIL, is looking to implement ESM in the coming 12 months. “We are trying to use social media collaboration at work, so that people can share what they are working on and also collaborate to solve problems,” says Iyer. “(With this solution), we will get employees to interact better with each other, give them more access to common resources on the network, and promote collaboration. We will have an increased exchange of ideas among employees. It will help augment productivity and efficiency.” That’s a benefit that Sebastian Joseph, CTO, DDB Mudra Group, can testify to. As a creative agency, DDB Mudra takes it collaboration seriously and begun integrating a Facebook-like, in-house-made, EMS solution in 2010. “The number one benefit I wanted to derive is true

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40

%

Of CIOs expeCt tO COmplete theIr EntERPRIsE sOCIAL mEDIA InItIAtIVEs In 2013.

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Cover Story

The Year Ahead

collaboration. Ideation is what matters most in our industry. Now an idea can come from anybody—that’s the primary objective. Once you get into that then you get all the by-products of collaboration,” he says. An ESM tool also helps with one of the side-effects of doing business in today’s flatter world: Geographical dispersion. Take the Adani Group, for instance, which is present in multiple countries. “We need a seamless solution for people to connect to each other,” says Paresh Pujara, group CIO, Adani Group, who says he plans to get that done by using Microsoft suites. Pujara is also looking to integrate a chat functionality which the company uses to collaborate with partners (customers, vendors, banks, etcetera). The chat application, he says, will be part of the overall enterprise solution, enabling a seamless flow of data from the chat engine to the company’s ERP system. He foresees that this process automation will reduce the manual challenges that exist today, and will remove delays and other documentation challenges. Currently this project is in the design phase. “We are at an advanced stage of finalizing the design for the data integration layers. There are minor challenges, but we are confident of handling them,” says Pujara.

Making ESM Work Companies that want the benefits that come with ESM need to be ready to do more than talk. Among other things, an ESM implementation requires serious IT governance policies

Paresh Pujara, Group CIO, Adani Group, has plans to integrate chat with the company’s ERP.

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surrounding security and compliance. Then there’s the bar that Facebook’s set. At CRISIL, Iyer realizes how important it is for his ESM tool to keep up with social platforms employees use outside work, if he wants them to use his internal ESM. “The intent is to give an interface like that (of a social media platform like Facebook) and customize that interface for the collaboration requirements that we have,” he says. Iyer adds that the biggest challenge he foresees in implementing this solution is not the implementation per se, but in getting employees to accept it. Joseph’s experience confirms Iyer’s beliefs. Having implemented an earlier in-house portal and knowledge management system— both of which “failed miserably”—Joseph is fully aware of the importance of getting users to adopt an ESM solution. “The first and foremost challenge was adoption,” says Joseph, recounting how he got the current ESM project off the ground. Those learnings didn’t stop him from further testing how people across different locations could connect with each other. So Joseph, who was based out of Bombay, tested his ESM with his 50-member pilot team based in different parts of the country. To make sure his ESM tool was accepted by his employees—who are about 28-29 years-old on average—he made sure that it had the same ease of use they experienced with social media platforms like Facebook. He also ensured that the solution was available on the multiple devices that staffers use, irrespective of device type or operating system. The solution also has a singlesign-on facility, and once signed in, an employee can access any of the enterprise applications that are integrated with the ESM solution. For those who don’t buy the enterprise social media pitch, it could be time to re-look their assumptions. There is a growing number of CIOs who believe that enterprise social media could well replace today’s clunky communications tools like e-mail. For Joseph that reality isn’t too far in the future. Already, he says, his ESM, and social media in general, is being used so extensively, that it’s easy to see how it could replace e-mail as the preferred form of communication. Pujara echoes that sentiment, pointing to the fate of the pager. “It is a matter of time; the current e-mail platform will cease to exist, say within next 10 years, like what happened to the pager Industry a decade ago.” CIO

Eric Ernest is correspondent. Send feedback to eric_ ernest@idgindia.com

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WHEN IT MEANS BUSINESS IT departments have fast evolved from business enablers to business drivers. With increasing demand from CEOs and board members for measurable value of IT, it is now widely recognized that IT needs to step up and drive the business. The big question staring at CIOs today is ‘How can they make this transition successfully?’ Find the answers at the 2nd edition of CIO Summit. Driven by IDC & IDG, this business conference for IT leaders has been designed to focus on the business value of IT. With an impressive lineup of international speakers, real-life case studies and research findings; this residential conference will provide you with all the answers to make a successful transition from business enabler to business driver. At the conference, you can also meet and interact with some of the brightest minds in Indian IT and exchange ideas and best practices. All this and much more, at the CIO Summit 2013.

GLOBAL INSIGHTS

David McNally IT Executive Advisor, IDC (USA)

Ankush Chopra, Ph.D. Asst. Prof. Of Strategy, Babson College (USA)

Venu Reddy Research Director, IDC India

The conference is designed with dedicated themes to focus on the impact of technology on your business. Leading with Innovation: In this session leading academic and IDC analysts will present a framework for innovation encouragement and innovation management. Leading with Performance: The session will examine how CIOs can deliver programs which result in shorter ‘time to market’ and tangibly contribute to business results. Leading with Transformation: Lead by a global practitioner and IDC analysts, this session will help CIOs understand when a situation is truly ‘transformational’ and what they can do remain relevant and become successful through these situations.

Prashaant Huria CIO, EMEA AstraZeneca (UK)

DATE & VENUE

INSIGHTS FROM IDC

Shalil K Gupta Consulting & Insights Director, IDC India

THEMATIC AGENDA FOR FOCUSED DISCUSSIONS

6-8 March 2013 | Hyatt Regency, Pune

Sanchit Vir Gogia Principal Analyst, Emerging Technologies, IDC India

ENTRY BY INVITATION ONLY To Request For An Invitation, Visit www.ciosummit.in

Jaideep Mehta VP & Country GM, IDC India

Event Organisers


FAST MONEY The world of stock broking runs on one word: Speed. but manual processes could play spoilsport and derail business, giving competition an opportunity. Kotak Securities strove to change that and, on its way, created an industry-first. B Y S H W E TA R A O Stock broking is like watching a thriller. There’s a climax every second. But a few years ago, when stock brokers traded cross-country—over old-fashioned, round-mouthed landlines—the world of stock broking was like an Indian soap opera: Slow, dragging and dull. To get the best deal, you’d have to take a leap of faith and play the waiting game. If trusting a broker 66

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with your money was hard enough, waiting for hours to know your money’s worth was overwhelming But stock broking was always about speed. That’s why for broking firms—and investors—time is literally money. This was something the Securities and Exchange Board of India (SEBI) acknowledged.

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Case File | Kotak Securities

And in August 2010, it made it mandatory for stock broking firms to provide their customers with an automated trading facility that would speed up the trading process and help investors seal the best deals. And Kotak Securities grabbed this opportunity with both hands.

Need for Speed Fortune is fickle; it favors the fastest—not the bravest anymore. In the broking industry, speed is crucial both for investors and brokers. It is a differentiation factor for every brokerage firm, from a competition standpoint. “Speed is sometimes measured in millionths of a second in the trading business,” says Trivi-

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kram Kamath, EVP and head-Operations, Finance and Technology, Kotak Securities. “Every aspect of the trading process must be extremely fast and synchronized, apart from being agile. Trading algorithms, network servers at the trading venues, and the order-routing system must be fast and flexible, ” he adds. That’s why Kotak Securities quickly jumped to adhere to SEBI regulations and Reader ROI:

The advantages of being an early-adopter Why user buy-in is important What to watch out for when following regulatory mandates

gain a competitive edge. To start with, Kamath knew he had to change the way they worked. But how did they work? India, like a few typical Asian markets, has its stocks listed on two different exchanges. An investor wanting to trade a security is always looking for the best possible price. The best options would be either on the NSE or the BSE—a decision brokers like Kotak Securities execute on behalf of the investor. This was a fairly manual process. It created latency that resulted in huge losses. “If the prices change by the time orders were executed, chances are that the order doesn’t go through, eating into our profits,” explains Kamath. To execute orders quickly, and help customers stay in the black, Kamath turned REAL CIO WORLD | j a n u a r y 1 5 , 2 0 1 3

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Case File | Kotak Securities

to smart order routing (SOR) technology. SOR would help the company’s trading engines to systematically choose the execution destination—where investors would like to buy or sell, NSE or BSE—based on price, cost, speed, and other factors as demanded by customers. This decision is taken independently and impartially, based on standard algorithms by SOR, making manual intervention irrelevant. For example, a Kotak Securities client lays down a set of rules according to his requirements. These factors—speed and cost, for example—are manifested in the form of algorithms that sell or buy shares at the best price. The SOR is required to handle numerous trading strategies and parameters. It needs to dynamically change with every new order and constantly evolve with trading strategies. And that it has. “With SOR, our retail clients will be able to savor an industry-first facility that allows them to monitor the order book of multiple exchanges automatically and quickly execute trade at the best price,” says Kamath. With immense competition in the stock broking business, SOR has provided the company with a much-needed competitive edge.

In an environment where we have multiple exchanges, we provided a transactional interface which is easy to use for investors. This is the best thing that has happened in the BFSI sector this decade. B. Gopkumar, EVP & Head Broking, Kotak Securities

“In an environment where we have multiple exchanges, we were focused on providing a transactional interface which is easy for investors to use. This is easily the best thing that has happened in the BFSI sector this decade,” says B. Gopkumar, EVP and head -broking, Kotak Securities. Also, the project on its own wasn’t very capital-intensive. The hardware cost can be approximated to about Rs 3-4 lakh, while the software may cost up to Rs 8,000-10,000 per desktop per month. The company will complete the second phase of the project by March this year. Today, Kotak Securities has become the first Indian brokerage firm to offer the SOR facility to its retail customers—a feat that was by no means easy to accomplish.

In the Red Creating a first-of-its-kind can’t be achieved overnight. Without an industry prototype to match up to, Kamath was left with no option but to shoot in the dark. And that could have derailed the project. To ensure the project stayed on track, Kamath’s first step towards SOR was to apply to the respective stock exchanges, detailing the company’s interest in implementing it. After, SEBI’s approval within the stipulated period of 30 days, Kamath identified a third-party auditor for system and software assessment. “Auditors are chosen from the list of approved system auditors released by stock exchanges. As per industry regulations, we carry out

Smart Trade Secret BEFORE SOR STEP

1

STEP

2

Investor identifies stocks to trade on Kotak’s website. Spends 10 minutes inputting indicators like exchange type, asking rate, etcetera.

3

50

STEP Investor inputs stocks

1

The order is notified to one of the advisors at Kotak Securities, who in turn manually inputs various factors (mentioned by the investor in Step 1) into the system. This manual process was time consuming and errorprone. an investor’s loss or gain heavily depended on the broker’s speed, integrity, and capability.

STEP

AFTER SOR

Kotak’s stock advisor queries for prevalent market price, manually calculates the best possible buy/sell rate and proceeds to trade. also, only the broker was aware of the stock prices and he traded on the investor’s behalf. This made the process opaque.

D E C E M B E r 1 5 , 2 0 1 2 | REAL CIO WORLD

STEP

2

he wants to trade on an interface in Kotak’s website—a process that takes two minutes.

Other parameters—exchange rate, asking rate—are automatically retrieved by the Smart Order routing system (SOr). The system’s decision process depends on factors like: Historical data, prevalent market rate, and customer specifications. This makes the process more accurate as there’s no need to manually input the same data, leaving no room for error. Stocks are immediately traded in real-time with stock prices being transparent to the investor. This gives the investor more power and eliminates opaqueness from the system.

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system audits and submit details to the exchange on a periodic basis,” says Kamath. SEBI’s aim at bringing in SOR was to have the exchanges share necessary data when required to facilitate a transparent investor-broker relationship. As SOR handles intricate and complex transactions, it’s important that broker firms like Kotak Securities ensure the new system routes orders in a neutral manner. “Every SOR order is assigned to a unique identification number (UID) and data concerning all orders and trades is maintained. We also provide an alternative mode of trading system in case of failure,” says Kamath.

The Mandate Syndrome Finance has always been the motherland of rigorous regulations, often slowing things down. The crux of the project’s implementation lay in paying attention to SEBI’s regulations which permitted SOR in Indian stock exchanges two years ago. “For example, SOR saw a late start because SEBI had asked stock exchanges to set up systems that time stamp their market data values within three months from the date of SOR implementation,” says Kamath. The main challenge lay in chasing for approvals from exchanges. Worse, regulations that required documentation and approvals on each step deteriorated customer buy-in rate. The firm has 400,000 customers registered online across the various services it offers. About 30,000 to 50,000 of them log in on a daily basis and Kamath figured bringing customers on to the new system would be easy. He couldn’t have been more wrong. “Since the launch of SOR last month, only about 155 users have applied for it. The numbers could have been much higher but a formality has discouraged them: Every new user needs to sign an approval form for SOR as regulated by exchanges.” This approval form states that the customer is okay with trading on the SOR system. What is surprising is the lack of common set of guidelines for brokerage firms to adhere to during imple-

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Speed is sometimes measured in millionths of a second in the trading business. Every aspect of the trading process must be extremely fast and synchronized, apart from being agile. Trivikram Kamath, EVP & HeadOperations, Finance and Technology, Kotak Securities

mentation. “While one exchange asks for a physical sign off from customers, the other is okay with receiving online approvals. This bipolar approach only deters technological growth We had to go ahead with both kinds of approval from each customer to start getting buy-ins for the new system!” That wasn’t the end of Kamath’s woes. With the SOR system, data explosion was always going to be a problem. This was an impending danger for Kotak Securities. With the second phase of SOR this year, the company will begin to predict

the prospect of profitable completion of orders based on existing factors and previous data. “As a result, we will constantly exert more effort to quantify data. As systems mature, quarterly analysis of SOR strategies will be done on a daily or weekly basis,” predicts Gopkumar. Apart from the different trading avenues, the SOR system deals with large amounts of incoming and historical market data. “An SOR order consists of a whole bunch of information from historical data such as real-time records and time stamps,” says Kamath.” Besides assimilating large volumes of historical data and reliably performing a transaction, the most important fundamental trading requirement is speed. But that is a challenge Kamath isn’t worried about. Now that the SOR system has removed manual intervention, speed has become a competitive differentiator.

Fast Forward Today, Kotak Securities’ SOR is all but a part of a global trading environment that demands speed and customization. “With SOR, brokers are now aiming at tailoring their products to specific end-user needs—a long awaited move. The mandate came into existence to help participating brokers with more flexibility in discovering available avenues for better price discovery. Most importantly, the mandate imbibed dual abilities of being able to predict and learn from our customers,” says Kamath. But it’s a facility that is still in its nascent stages. “The complete trading fabric is evolving and SOR is just a baby,” says Kamath. But that doesn’t mean it’ll stay so forever. “With more investors trusting their investments with smart order routing, market dynamics are all set to change,” says Kamath. And that makes stock broking a thrilling business. CIO Shweta Rao is correspondent. Send feedback on this feature to shweta_rao@idgindia.com

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CXO Agenda | Staff Management

Diverse Staff, Diverse Ideas When businesses battle intense competition, they turn to their employees to spin up innovative products. Creating a culture of attracting and retaining talent from diverse backgrounds propagates new and unique ideas. How Anuraag Maini, Executive VP-HR & Training, DLF Pramerica Life Insurance (DLFP), is doing just that.

By shubhra rishi CIO: DLF Pramerica was formed in 2008 when there was a huge economic slowdown. What recruitment challenges did you face?

Anuraag Maini: In 2008, we were probably the 23rd insurance company in India. The first immediate challenge was to be able to attract people to an unlicensed company. We were clearly unknown and had to begin from what we aspired to build in a new organization. We had to setup basic systems and processes and create a balance between the immediate short-term goals—for instance, deploying a payroll for the start-up—and longterm goals such as competencies and values. Managing that is clearly a challenge for any startup. Building strong ethics and work culture was another challenge. It took us some time to create our own work 70

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culture in order to manage employees with different belief systems and tactics while responding to business demands. We started with about 130 employees. Today, we are a little over 2,000 employees. Five years down the line, people in the industry know us, and our ability to attract talent is much better right now as

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CXO Agenda | Social Media

ANURAAG’S AGENDA: Creating a diverse workforce and attracting talent in a competitive industry.

compared to what it was then. So from an HR point of view, attracting talent was our biggest challenge. What’s changed since then?

Our strategy around talent acquisition has transformed significantly. As a startup in 2008, 85 percent of our talent pool used to come from the insurance sector. In the last couple of years, we have been looking at identifying, attracting, and hiring a diverse

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talent pool. The more people are from diverse industries, the more diverse are the ideas and proposals. Currently, about 35 percent of our salesforce comes from diverse industries and backgrounds. It was much lesser earlier but it’s only going to rise to 50 percent in the future. Another focused approach has been towards hiring female employees. For instance, we have 16.5 percent of female employees in our company as compared to 10 percent two years back. REAL CIO WORLD | j a n u a r y 1 5 , 2 0 1 3

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CXO Agenda | Staff Management

As the HR-head of DLF Pramerica, how have you spearheaded this change?

To give you a perspective, only 20 percent of my HR team has an insurance background, the rest consists of a diverse pool of people from different industries. This has improved our ability to deal with insurance challenges and understand business better. In 2010-11, we conducted a study and found that the average productivity of women sales employees was about 40 percent higher than men. We also found that they stayed longer in a company and therefore, the attrition rate was low. We created a business case and presented it to our CEO. There’s been a strong initiative towards diversity inclusions. It has started with gender first and now we are slowly moving towards other forms of diversity.

an employee should bring to the organization. Also, we made sure that we hired employees who had spent at least a stipulated time in their previous companies. Due to speedy growth and shortage of talent, a lot of skilled resources in the insurance sector were over-rated in terms of their performance and caliber. We didn’t want to fall into that trap. Therefore, from the beginning, we laid out strict parameters on how we rate and calibrate performance. Also, we have been extremely rigorous on the talent management aspect. For instance, we spend three days every year with our leadership team, providing feedback about their performance. This discussion circles around where the company sees their potential, the areas that they need to develop or improve, and what they need to do better in order to survive in the company. Very few companies do that.

“Initially, we used to lose around 20 percent of our salesforce as a result of negative background verification. But now, this number has come down drastically to 6 percent.” How has this change impacted business?

We are in the service business, which means we require the right type of people in right quantity for various business functions. We have hired a lot of employees who have been with the armed forces. They work with affinity in order to provide insurance solutions to our customers. We are also conducting a pilot to sell insurance to parents of school children. It’s a natural choice to hire women sales employees for the job as they have the ability to relate to parents and communicate better. Second, as a new company, we pay very attractive salaries. Even though our brand is still being established, we make sure that even with a stipulated budget, we give performance-based incentives to our employees. As a result, attrition has been insignificant. We ensure that our cost of hiring remains under control. Just to give an overall sense, 20 percent of hiring within DLFP is through consultancy and 80 percent via referrals, Webbased forms, walk-ins etcetera. So we are very stringent about how we source or recruit people. Tell us about some key strategies which have laid the foundation for HR at DLF Pramerica.

We just wanted to make sure we were attracting the right kind of talent. We have defined our basic competencies and values that 72

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How is managing HR different in the private insurance sector, considering the industry opened up only 12 years back?

Luckily, we started the company at a time when the industry was slowing down and we wanted to phase out our growth so that it’s profitable for our business. Therefore, we could procure some highquality HR practices. The employee turnover in our industry is very high. People also resort to unethical ways to make a quick buck. That’s why background verifications are very crucial. Initially, we used to lose around 20 percent of our salesforce as a result of negative background verification. But now we have been extremely careful and this number has come down to 6 percent. How do you plan to improve the HR function in 2013?

There are five areas that the HR team needs to address. These are: How to build the right organizational structure; how to ensure that we are able to raise our productivity benchmarks; how do we attract a diverse and productive talent pool; how do we strengthen our work culture as we expand, move to new locations, and hire new employees, and how to ensure that as our business grows, we provide our employees and customers high-quality HR services. CIO Shubhra Rishi is correspondent. Send feedback on this interview to shubhra_ rishi@idgindia.com

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Custom Solutions Group JUNIPER NETWORKS

E V E NT R E PORT

Trying times create multiple—and confusing—priorities for business and IT.

Keeping the

Business Happy

CIOs who focus on cost reduction, efficiency creation, risk mitigation, and innovation, create less friction with

the business.

By Sneha Jha

E

ver since the economy fell off the cliff, enterprises have been under pressure to do more with less. And IT is feeling the pinch like never before. Budgets have been slashed, big ticket IT investments have stalled, and management’s expectations from IT have risen to new heights. At the same time, CIOs are expected to formulate new strategies to maximizing agility, increase cost optimization, drive revenue generating innovation, and build efficiency-creating tools. As the CIO community faces these tough challenges, they need to resort to more out of the box thinking. To get an insight on some of the drivers behind innovation, CIO magazine in association with Juniper Networks and AGC Networks, gathered leading Indian IT leaders for a roundtable, during which CIOs exchanged stories of how they are bolstering business in these times of economic uncertainty. Dan Miller, SVP-Global Enterprise Sector, Juniper Networks, set the context by outlining the four key challenges CIOs face. “Cost reduction, efficiency creation, risk mitigation, and building market differentiators by delivering faster services are the top of the mind priorities for CIOs. While seeking new ways to innovate and providing sustainable competitive advantage, CIOs are also grappling with security concerns,” he said.

In these trying times, many managements expect their CIOs to wring benefits out of IT investments. Suneel Aradhye, group CIO, RPG Enterprises, explained that businesses are facing tremendous pressure in the market place and this is reflected in the way they are dealing with the IT department. They expect

“Cost reduction, efficiency creation, risk mitigation, and building market differentiators by delivering faster services are the top of the mind priorities for CIOs.” Dan Miller,

SVP-Global Enterprise Sector, Juniper Networks

IT to come up with business solutions and not just technology solutions. He suggested that the best way to resolve this issue is to keep all channels of communication open. “Continuous communication with the business and end users is what will build goodwill within the organization. The CIO should empathize with internal customers, appreciate their needs, and alleviate their pain points using technology. He should draft a wish list of the needs of internal customers and deploy small BPR initiatives on a periodic basis to fulfill their needs,” he said. Cost rationalization initiatives also sparked a debate between capex versus opex models. ROI seems to be the mantra of the bean counters. However, CIOs held that focusing only on operational costs can stifle innovation and customer centricity. Milind Joshi, SVP-IT Services, Aegis, believes that CIOs should put different choices in front of the business. And then leave it up to the business to decide if it wants to use a capex or an opex model. “It’s immaterial if it’s TCO or ROI. Any investment that improves alignment with KPIs is music to the ears of the CEO. If we are able to give choices—instead of making prescriptions—we won’t be treated as a cost center,” he said. Arun Gupta, CIO, Cipla said that the cloud can generate value for enterprises during a financial squeeze. If CIOs can manage the risks that come with cloud computing then cloud infrastructure can go a long way in meeting enterprise needs. The CIOs were optimistic that with judicious decision making and well thought-through, business-focused strategies can impel innovation during testing times. This event report is brought to you by IDG Custom Solutions Group in association with


CHARTING THE

YEAR AHEAD


Presents

CIO's Annual Year Ahead Program 2013 brought India's top CIOs and the leading lights of the industry under one roof. Held at the Grand Hyatt, Mumbai, in December 2012, the event saw IT leaders, solution partners, and experts, chart out the opportunities in the upcoming year. A host of interesting sessions, debates, discussions, and entertainment marked the event. Here's what you missed.

Year Ahead Theme Platinum Partner

CIO Conversation Partner

Gold Partners

Cloud Theme

Mobility Theme

Theme Presenter

Theme Presenter

Associate Partner

CIO Conversation Partner

Partners

HCL Technologies

Log on to www.cioyearahead.in for more


Feature

The

IT BLUE PRINT for 2013 Every new year brings with it a new set of challenges and opportunities. 2013 is going to be no different. Except for CIOs. It's going to be more daunting, more eventful, and more exciting than it's ever been. Here's why.

By Sneha Jha ncertainty is the new certainty in today’s macro-economic environment. India's growth story is going astray. Indian organizations are squeezed for cash and the slowdown tremors have dried up investments. This is hampering effective execution of business strategies. Economists are scrambling to identify new ways of leading the economy out of this morass. But sinister thunderstorm clouds hanging low on the economy have obfuscated the horizon. In this new context, the business imperatives are undergoing continual change to adapt to the new market realities, absorb the


impact of the slowdown, and enable sustainable growth.

Businesses that don't embrace emerging trends are not likely to survive in today's economic landscape.

The Way Ahead The changing business forces have brought the CIO into the spotlight. Faced with the onslaught of business and economic challenges, organizations are now identifying CIOs as enablers of disruptive change. To help CIOs acquire insights to make the right choices to succeed, CIO magazine organized the Year Ahead 2013 Program. Now in its sixth edition, the event— which happened on the 29th and 30th of December, 2012 at the Grand Hyatt, Mumbai—brought together IT leaders from India’s top organizations to plan India’s IT roadmap for the upcoming year. The first day’s session equipped CIOs with great insights to cope with new challenges, offered keynote presentations from industry stalwarts; and results of CIO magazine's most

Mark Boyle, MD-Cloud & Mobility, APAC, Accenture

exhaustive study—the annual State of the CIO survey. With over 250 CIOs in attendance, Mark Boyle, MD-Cloud and Mobility, APAC, Accenture, flagged off the event by stating that cloud, mobility, and analytics will be the three pivotal themes for 2013. “Businesses that do not embrace these emerging trends are not likely to survive in the current economic landscape,” he said. A recent report by Gartner predicts that the adoption of these technologies will accelerate as organizations peer into the future. And these trends will deliver competitive differentiation. This fact was reiterated by Vijay Ramachandran, Editor-in-Chief, IDG Media, as he presented the findings of the State of the CIO survey. He expounded that these technologies will help CIOs in coping with the new market conditions and urged them to keep pushing ahead.

in the cloud for CIOs. It has expanded the dimensions of a CIOs role within the enterprise and brought more business focus into the system. We have seen the roll out of some very large-scale IT projects in this period. There is a spurt in projects which have a direct causal link to a business outcome,” he revealed. However, IT budgets continue to shrink. Over 85 percent CIOs believe that their budgets will increase by

Cost Concerns Override In an era characterized by innovation and disruption, taming the hyper-connected world is the key to creating new revenue streams. Bruno Goveas, Director-Products APEJ, Akamai

Addressing a power packed gathering of CIOs, Ramachandran set the tone of the event by presenting the findings of the annual survey. While he highlighted the challenges—shrinking budgets, cost optimization and ROI justification—he expressed faith in the dynamism of Indian enterprises and the all-embracing role IT is set to play in testing times. “There are sunny spots

CIOs will have to use technology in a way that it drives greater customer engagement and cost effective innovation. manish Panjwani, Country Managing Partner, Accenture


Feature

A distinguished panel of IT leaders and solution partners discussed the viability of opex models in today's enterprises.

13 percent which is the lowest rise in budgets in the last six years. This will tighten the rigor of ROI justification. “When the economy was booming and optimism was all pervading, CIOs did not have to justify the ROI for their IT investments. But now owing to the cost pressures, they are getting ROIsavvy and driving tight business IT alignment in their quest for profitable growth aimed at higher market share, mindshare, market capitalization, and competitive advantage,” he highlighted. This idea was reinforced by Manish Panjwani, country managing partner, Accenture, in his presentation Writing's on the CIO’s wall: Becoming Intrinsic to the Company’s Business Model. The slowdown is a blessing in disguise for CIOs. It will fortify their position within the enterprise. Panjwani elucidated that in today’s business landscape we are witnessing increased intersection of technology and industry. CIOs will get intimately involved with strategic business objectives. Hence, the CIO

agenda should be aligned with the business context to remain relevant to business expansion and growth. The slump will lead to a refinement in business models. There will be a wave of technology friendly and customer-centric new business models sweeping the enterprise. “As consumerization of IT becomes a rage, we will see social commerce assuming greater prominence. Frugal innovation will be

the order of the day. Mindful of these new trends, companies will be nudged to redesign their business models to adapt to the new environment. Partner ecosystem, niche customer segment, customer value proposition, and newer revenue streams will impel them to revisit the existing business models,” Panjwani opined. CIOs will have to use technology in a way that it drives greater customer engagement and cost effective innovation, Panjwani said. Grappling with the global economic headwinds, an increasing number of enterprises are trending toward outsourcing and managed services. According to the CIO Mid Year Review Study, this trend seems to be fueled by multiple factors—mid-tier attrition and skillset gaps; the need for faster rollouts, the requirement to build in more agility and flexibility in delivering IT services to business, among other things. And with cloud computing making inroads into the enterprise there is a transition from the capex to an opex cost-based approach. In order to understand the viability of the opex approach, there was a panel discussion moderated by IDG’s Ramachandran. The panelists included Srinivasan Iyengar, directorTechnology and Change Management, Aegon Religare Life Insurance, C.V.G Prasad, CIO, ING Vysya Bank, Veneeth

We repositioned ourselves with a new brand name. We realigned with customer demands, and reinvented ourselves. Deepak Mokashi, VP & Head-Sales & Service Function, Hero MotoCorp


The Customer Experience Challenge

Agile BI liberates business managers by giving them timely access to the data they need to make decisions. Varun Babbar, Pre-sales LeaderIndia & South Asia, QlikView

Purushottaman, business-head Technology, Hypercity Retail, and K. Bhaskar, director-Enterprise Solution Division, Canon India. The panel debated the benefits of both the cost approaches, the cultural shift involved in switching to an opex and services model and CIOs’ efforts to understand the economics of sourcing and the trade-offs involved. Purushottaman stated that in the current economic climate there is a spurt in outsourcing engagements. Today, everything other than the core functions can be outsourced. However, the transition entails a shift in the organizational culture. “Moving from a capex to an opex model is a cultural shift. CFOs are willing to look at it selectively but the preference is still capex,” highlighted ING Vysya Bank’s Prasad. The panel was unanimous about the fact that CIOs should go for a model that is best suited to their organization’s needs.

The new economic order has not only transformed the cost approach but it has also led to the advent of technologies that are shrinking the world. Bruno Goveas, director-Products APEJ, Akamai, emphasized that with cloud computing, mobility, social media, and security gaining traction, CIOs are combating the challenges of doing business in a hyperconnected world. “In an era characterized by innovation and disruption, taming the hyper-connected world is the key to creating new revenue streams, building new ecosystems, and inventing new business models—all online and at an unprecedented pace,” he observed. Just as a hyper-connected world can cultivate hyper accelerated innovation, consumer focused practices can also become a wellspring of customer-centric innovation. All it takes is acknowledging dynamically changing customer requirements and then adapting the organization to respond with agility. Narrating the story of how Hero MotoCorp has tuned itself into changing customer behavior to grow in tough times, Deepak Mokashi, VP and head-Sales and Service Function, Hero MotoCorp, elucidated how his organization repositioned itself with a new brand name. The organization realigned with the changing customer demands, remade products, and reinvented the way Hero MotoCorp worked. The two wheeler company has always focused towards identifying customer niches to provide a unique value proposition to its consumer. It was the first to introduce self-start option in 100 cc bikes. This customer focused innovation led to a 27 percent growth in their business. They wooed their customers by offering them an extended two year warranty as opposed to the sixmonth warranty being offered by their

The New Economic Order Dr. Ajit Ranade, chief economist, Aditya Birla Group, delved into the global economic crisis and how India can benefit from it.

In his keynote session, Dr. Ajit Ranade, chief economist, Aditya Birla Group, explained the macro-economic scene in the face of the global economic crisis. He started off by painting a bleak picture of the European economy. The European sovereign debt crisis wreaked havoc on the markets. However, four out of 27 countries in Europe are inching back to economic recovery. But closer home, even as Asia takes ever more confident steps in the global arena, the region is beset by socio-economic and political weaknesses. China, the poster country of unprecedented growth, is showing signs of a slowdown. This might place India in the dynamic growth equation. In 2012, India received the highest ever inbound FDI to the tune of $48 million. Its manufacturing exports brought in close to $302 billion. The low rupee-dollar value will make Indian exports more competitive but India’s export basket will have to be sufficiently diverse to benefit from it, Ranade concluded.


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competitors. This turned out to be a value enhancement feature for its buyers. Appreciating the changing needs of a highly aware and demanding user is the key to business success. Varun Babbar, pre-sales leader, India and South Asia, QlikView, said that technology is changing from being report-centric to business-discovery centric. He made a presentation on how CIOs can harness the power of self-service BI to drive competitive advantage. “Many organizations are turning to non-traditional BI to attain revenue enhancing insights. Agile BI liberates business managers by giving them timely access to the data they need to make decisions,” he said.

Changing the Game In 2013, organizations will wake up to the dawn of big data analytics. Organizations that took a dim view of the increasing torrent of data are starting to consider it a strategic asset. The new research survey conducted by Kelton Research titled The Global Survey of Big Data, values big data analytics as data is the new oil, the source for corporate energy and differentiation. This was illustrated by

Big data is the newest star in the technology firmament and it can lead to datadriven problem solving. Deepak Ramanathan, Head-Information Management, APAC North, SAS

Deepak Ramanathan, head-Information Management, APAC North, SAS. “Big data is one of the key dimensions of analytics. Come 2020 and there will be 35.2 ZB of data. Given the data deluge in enterprises, the next unit of information is yotobyte (one quadrinial gigabyte). Big data is the newest star in the technology firmament and it can lead to data-driven problem solving, improved business forecasts and enhanced competitive positioning,” he said. Organizations beleaguered by shrinking costs are warming up to the idea of collaboration over video. Visual collaboration is the latest addition to enterprise technology. Neeraj Gill, MDIndia and SAARC, Polycom, pointed

Neeraj Gill, MD- India & SAARC, Polycom, and Vijay Ramachandran, Editor-inChief, IDG Media, discuss the potential of visual collaboration.

out that as mobility and smart devices get a foothold in the enterprise space, video is gaining currency. With the advent of tablets, smartphones and ultrabooks, people can access videos from anywhere. He highlighted that CIOs don’t want a video collaboration facility which is confined to conference rooms but one that can be accessed on any device used by end users. Gill’s observation is bolstered by Gartner’s research enumerating that by 2015 there would be close to 200 million people using corporate supplied hi-definition video from their smart devices. There was a session on the state of the Indian economy by Dr. Ajit Ranade, chief economist, Aditya Birla Group. The session shed light on the direction that the economy will take in the near future and its precipitating factors. Ranade shed light on the macro view of the economic climate, its impact on IT and business. He underscored that the European sovereign debt crises and the US fiscal cliff will weigh on our minds in the coming year. Growth will be sluggish and business confidence will continue to remain low. The growth engine of China will decelerate and that might place India in the dynamic growth equation. The low rupee-dollar value will make Indian exports more competitive but India’s export basket will have to be sufficiently diverse to benefit from it.


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ROUNDTABLE

Management By Delegation Management gurus all say that the best leaders delegate. The same applies to IT. CIOs who let services providers manage some things for them have more time to focus on core competencies.

A roundtable on the benefits and challenges of a managed services model got many CIOs talking.

By Sneha Jha

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uring hard times, conventional wisdom says that CIOs tend to gravitate towards a managed services model because it offers them high-quality IT services at optimal prices—without the hassle of maintaining internal resources. To test that theory and find out what Indian IT leaders think of the managed services model, CIO magazine and Canon India, organized a roundtable with CIOs on the sidelines of the Year Ahead Program. Opening the discussion, Alok Kumar, VP and global head-internal IT and shared services, TCS, pointed out the many benefits of working wtih a managed services model. “CIOs want to focus on their core competencies. They also want to avail of the services of highlyskilled personnel without incurring huge cost in the form of salaries. Sometimes, they may also be facing

staffing issues such as attrition and gaps in skill sets. Managed services promises to address these issues and augment efficiency,” he said.

During trying economic times, enterprises tend to shift towards a managed services model. K. Bhaskhar, Senior Director-Office Imaging Solutions Division, Canon India

One of the challenges, CIOs could face with a managed services model, revolves around the contract, said some CIOs. Ashok Cherian, CIO, JK Cement, said that no matter how many legal experts and contract specialists you bring to the table, there will always be grey areas. That’s not something service providers are unaware of. “The service provider factors in a lot of situations while drafting a contract. There is a long deliberation around risk factors and contract clauses,” said K. Bhaskhar, senior director-Office Imaging Solutions Division, Canon India said. But that only makes it all the more important for both parties to work together in an amicable environment. There are also other challenges to a managed services approach, which have nothing to do with service providers. One of them is the readiness of an organization. “If there is a management mandate to deploy managed services and the internal IT team is unwilling to give up control, then the CIO is burdened with challenges relating to organizational culture shifts,” noted Murlidharan Ramachandran, CIO, Syntel. In such cases, he added, companies need to a have a robust transition management process. Among the other benefits that came up during the discussion w as the flexibility that comes with a managed services approach. Cherian underscored that one of the biggest advantages is that it enables an organization to scale up and scale down easily. And that’s going to be extremely useful as yet another uncertain year unfolds.


ROUNDTABLE

Analytics: Making it Work in the Real World

A roundtable discussion revealed what’s really required to ensure that an analytics project takes off and is successful.

Too often an analytics project is slowed down—or worse, derailed—by non-technological factors. A roundtable of Indian IT leaders discusses

what organizations need to focus on to ensure success.

By Gunjan Trivedi

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he perception of analytics among Indian enterprises has begun to evolve sharply. IT decision makers, who largely used to associate the task of churning out a plethora of reports with BI, have begun to appreciate the true role of analytics in increasing business value by deriving insights from data. However, analytics comes with its own set of challenges, especially around the areas of business ownership, management buy-in, data definition, and outcome justification. Such issues were largely debated on and


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discussed in a roundtable discussion with 10 CIOs broadly representing large industries and various multi-nationals, at the sidelines of The Year Ahead Program. The roundtable was chaired by Soumendra Mohanty, MD-Information Management, Accenture, and moderated by Vijay Ramachandran, editor-in-chief, IDG India. The discussion explored the challenges associated with analytics in terms of its consumption in developed versus emerging economies. It was observed that the maturity of analytics use in developing economies lags behind by about five years when it comes to deriving clear business outcomes. The panelists believed that lack of clear project ownership, ineffective execution, inadequate availability of skill sets, and an overtly complex structure usually sink analytic projects. “Success is not in knowing what to do. Getting it executed and deriving desired benefits define the parameters for the success,” said T.G. Dhandapani, CIO, TVS Motors. “It’s the top management’s responsibility to ensure that an analytics project does not remain an academic endeavor and that it gets adequate business sponsorship. That’s

a must for it to be successful. Without business sponsorship and adequate topdown emphasis on the standardization of data definitions, a business analytics project can never take off,” stated Manoj Shrivastava, director-IT and head of integrated technology and IT governance at MTS India. He added that his team periodically showcases the link between outcomes and analytics to the business to ensure that the rigor of the use of the system is maintained, he added. Bajaj Auto’s VP-MIS, Anil Khopkar said that CIOs shouldn’t have to struggle to prove ROI for an analytics project. “Rather, we should convince management to see this as core, productive infrastructure, which could help business with the best available tools to continue gaining relevant insights and creating strategies,” he said. Accenture’s Mohanty was of the opinion that CIOs generally confuse tools with a BI platform. “A tool doesn’t become the platform. Rather, it’s the enterprise data within the tool that becomes the platform. If you put a governance structure around the platform with clear processes and policies around it, the BI project becomes successful,” he stated.

Without business sponsorship and adequate top-down emphasis on the standardization of data definitions, a business analytics project can never take off. Manoj Shrivastava, Director-IT and Head of Integrated Technology & IT Governance, MTS India

A tool doesn’t become the platform. Rather, it’s the enterprise data within the tool that becomes the platform. Soumendra Mohanty, MD-Information Management, Accenture

It was also noted that in developed markets, most organizations have made analytics an integral part of their business strategy. That’s obvious from the speed at which roles like chief analytics officer and chief insights officer are materializing. ‘Data Scientists’, to which they are often referred as, are key to the analytics function. However, such skillsets are easier to find in developed markets than in emerging economies. “IT should act as a catalyst within enterprises and perhaps leave the technicalities to service or solution providers,” Khopkar suggested. Nevertheless, panelists concurred with the fact that analytics will be one of the very strong levers that organizations will deploy in the next 12 months. They agreed that the writing on the wall was pretty clear: If you do this, you grow. If you don’t, somebody else will grow at your cost.


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Forecast 2013: Cloud Reigns Cloud computing is clearly a top priority for CIOs today. In 2013, it will be one of the top technologies to watch out for. No wonder it was a hot topic at CIO Year Ahead 2013. By Gopal Kishore

Windows Server 2012 provides powerful new technologies to enable transformation to a modern datacenter.

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loud computing seems to be an unstoppable revolution. And organizations are increasingly acknowledging the fact that it’s best suited to meet growing business needs. In today’s organization’s cloud computing’s adoption is driven by the economic climate—which demands flexibility and rigorous cost control— and trends like consumerization of IT. At the CIO Year Ahead Program, there were several discussions on how to transition to the cloud, the challenges that enterprises face, and how to successfully overcome them.

Srikanth Karnakota Country Head, Server & Cloud Platform, Microsoft There are several key technology and IT trends that are creating opportunities for IT to better address business needs, including innovations in datacenter compute, storage, and network resources,

A panel discussion on the cloud brought together some of India's most forward-looking IT leaders.

cloud computing, new application platforms, data explosion, and the proliferation of consumer computing devices, said Srikanth Karnakota, country head, Server and Cloud Platform, Microsoft, in his presentation. A cloud platform should be able to deliver the promises of a modern datacenter and people-centric IT in four key ways: It should take the organization beyond virtualization, it should deliver the power of many servers with the simplicity of one, it should open the door to every app on any cloud, and enable a modern work style. According to Karnakota, Microsoft has gained expertise from years of building and operating some of the largest cloud applications in the world. It has combined this expertise with its experience in delivering enterprise operating systems, platforms, and applications to develop a platform, like the Microsoft Cloud OS. As


the foundation of Microsoft’s Cloud OS platform, Windows Server 2012 provides powerful new technologies to enable transformation to a modern datacenter platform. The aim is to effectively address opportunities created by IT trends and to better meet today’s business needs with agility and efficiency, Karnakota added.

Making Private Clouds App-en With the proliferation of the cloud model, every CIO wants to know where each application, or a set of related applications belong. Do they belong in the public, private or, a hybrid cloud? Or in the organization’s legacy computing environment? In a high powered panel discussion, leading CIOs provided different perspectives to this dilemma and discussed what happens when applications, business users and cloud computing collide. According to R. Muralidharan, CIO, Syntel, though virtualization is the stepping stone to the cloud, today, it is possible to leapfrog the technology and install packaged

Open, standardsbased integration enables enterprises to build their cloud, manage it, and create a converged cloud strategy. Sudhir Rao, Chief Technologist, Enterprise Services, HP India

applications that are cloud-ready. This is an essential factor in facilitating the move to the cloud for many enterprises. However, it is not possible to ignore the legacy applications that are in the traditional IT setup. “Depending upon the refresh cycles, CIOs can ensure that legacy applications are also cloudenabled,” said Suneel Aradhye, Group CIO, RPG Enterprises. It is extremely important that best practices are followed and that at least the standard applications are moved to the cloud, said Alok Kumar, VP and global head-internal IT and shared services, TCS. An essential component is training and nurturing the right talent, he added. Busting the myth that the cloud is not suitable for mission-critical applications, Tarun Sareen, sr. director, EMC IT Center of Excellence, described EMC’s journey to the private cloud, which also involved running an SAP-based ERP system from the cloud.

Looking Up to the Enterprise Cloud At whatever stage the enterprise is on its journey to the cloud, it is important that it makes a complete security and risk management assessment. In order to cloudenable datacenters, enterprises should automate and orchestrate the traditional datacenter, unify management and security for the cloud. It is important to extend the best of traditional IT and leverage cloud services, said Sudhir Rao, chief technologist, Enterprise Services, HP India. Today’s organizations also require a converged delivery model, sourced across traditional, private and public cloud offerings. “A converged cloud strategy provides simplicity, speed, reduced risk, cost, and compliance,” Rao added. According to Rao, HP’s Converged Cloud provides enterprises with a common architecture across private and public cloud with traditional IT infrastructures. “Open, standards-

Cloud Computing:

The New Wave Jack Shaw, author and futurist, shared his insights on the impact of the cloud.

Jack Shaw, author of Surviving the Digital Jungle and Doing Business in the Information Age, is a world-renowned business technology futurist and expert on leveraging technology for strategic advantage. In his presentation, Shaw discussed emerging technology architectures such as cloud computing and the strategic implications for the business. Shaw said the leading drivers of cloud adoption include agility, improved time-tomarket, efficiency and productivity. But factors like security, data ownership, legal and contractual issues, and regulatory compliance are still discouraging the adoption of the cloud. “CIOs need to make a case for the cloud and not pitch it as something that cuts costs. They should highlight its potential to drive innovation and competitive advantage. If CIOs could reliably and measurably move the needle on such things, instead of just auditing costs, the ‘happiness gap’ between the business and IT could be closed,” said Shaw.

based integration across traditional infrastructure enables enterprises to build their cloud, manage it, and create a policy-based, model-driven service delivery model. They can also enable a common architecture across all delivery models and one simple consumption experience across all models,” Rao said.


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ROUNDTABLE

The New Way to Counter Threats Much like national security, IT security has to encompass different defense strategies too. In a recent roundtable discussion, CIOs shared their ideas in this area.

CIOs discussed the different ways in which enterprises can prepare themselves to counter emerging IT security threats.

By Gopal Kishore

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oday’s businesses deal with a huge array of continually evolving security issues. These emerging threats have changed the way IT and security managers protect their companies’ computing infrastructure and assets. On the sidelines of the Year Ahead Program, CIO magazine, in association with McAfee, spoke to several CIOs to understand how enterprise risks can be better managed. One of the biggest challenges organizations face today is ensuring security compliance. T.G. Dhandapani, the CIO of TVS Motors, said it's important to motivate employees to follow security practices. “Most questions arise out of ignorance. If the CIO makes security policies easy to understand, then it will be easier for the employees to follow them,” he said. According to Jyoti Bandopadhyay, VP-IT at Torrent Power, it is important

to create a security roadmap that aligns with business objectives. “While security is a continuous learning process, certain aspects such as

Using different solutions for different threats creates a patchwork of siloed products, leading to excessive management overhead and costs. Jagdish Mahapatra, MD-India and SAARC, McAfee

application strategy and execution policies, when designed in a structured and systematic manner. will benefit the organization,” he said. The ‘security maturity’ categorization sheds light on the different approaches towards information security. Rajeev Sridhar, regional sales manager, McAfee, explained the categories: Reactive: Where enterprises define security processes ad hoc. Compliant: Where there are some policies with little or no standardization. Proactive: Where there are standardized policies, centralized governance, and a degree of integration. And optimized: Where there are best practices and strict adherence to corporate policy. Jagdish Mahapatra, MD for India and SAARC at McAfee, said, “Enterprises need enough security to keep threats from disrupting business. To make matters more challenging, many firms use different products for different threats, creating a patchwork of siloed products that leads to excessive management overhead and costs. Simple, unified management can reduce the administrative workload, thereby freeing time for other tasks and releasing the budget to enable innovation,” he said. With workers’ accessing the enterprise network using multiple devices, data and applications are being moved into the cloud, where data owners have little direct control over security. There was a general consensus that a single unified view on a dashboard can help CIOs and CISOs manage enterprise risks more efficiently.


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ROUNDTABLE

HCL Technologies

The Managed Services Gambit Managed services are turning out to be significant business transformers. And managing relationships with vendors is emerging as the core strategy to its success.

By Gunjan Trivedi

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he debate over the opex versus capex model seems to be getting more decisive. According to the State of the CIO 2012 survey, the ratio of expenditure of enterprises in IT is now trending to about 60:40, in favor of the opex model. This resonated at a roundtable—held at the CIO Year Ahead 2013—on managed services. The discussion focused on whether SLAs are a good way to manage service provider relationships; and how managed services are evolving to be significant business transformers. “We chose our partner to run IT as an independent function. Our job is to continuously break new ground and drive new initiatives. Once rolled out, we hand them over to our partner to further productize and manage. In fact, we are now asking our partner to handle our source code as well,” said Gopal Shukla, senior VP-Business Services Group, Hindustan Coca Cola Beverages. Vinod Sivarama Krishnan, CIO, Walmart India, underscored the fact that

IT leaders from some of India's most prestigious organizations gathered to discuss the potential of managed services.

this kind of partner relationship boils down to the value it gives in return or the pain points it reduces. “Either you pay for the value or you pay for removal of annoyance; and ideally you would ensure that the overheads are not significantly more than what it would take to do it yourself,” said Krishnan. One thing that CIOs need to keep in mind when going for managed services is workforce

HCL Tech brings a high degree of transparency with flexibility in SLAs to our clients in MS engagements. Rajesh Thakur, Country Manager, HCL Technologies

competency. "Competency levels of workforce being deployed is always a challenge. But if it is a standard product or offering, the variation in the quotation is usually not much," said S.C. Mittal, sr. executive director (MSD & IT), IFFCO. It also becomes very difficult when an SLA obstructs this arrangement. Rajesh Thakur, country manager, HCL Technologies, opined that it’s impractical to work on an extreme model of governing everything with SLAs. “We would need to find a workable solution that helps us govern such relationships,” he said. Thakur also felt that flexibility and transparency are key to the success of forging such engagements. “We are focusing on the fact that if your business grows, your spending should increase but if your business goes down, your spending should decrease proportionately. Such projects have successfully taken off with our customers," he stated.


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Mobility on Speed Dial in 2013 Enterprise mobility is the flavour of the season. As CIOs understand the importance of BYOD, businesses are acknowledging the impact of mobile technologies.

By Gopal Kishore

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ven while CIOs target mobility as a priority in 2013, they face competitive and development challenges. IT leaders at the Year Ahead 2013 tried to chart out the best strategies to develop a cogent mobility roadmap, meet business and employee demands, seize the opportunities that mobility presents, and stay ahead of the curve. According to Mark Boyle, MD of Technology, Asia Pacific, Accenture, most companies overestimate the short-term benefits of mobility and

underestimate its long-term benefits. “As enterprises begin to embrace mobility, they start seeing different beneficial outcomes, such as BYOD leading to better employee engagement, and having the best person on the job irrespective of time and location. But the biggest advantage is when CIOs integrate mobility with the cloud. This begins to unleash the potential of big data,” said Boyle. According to Ram Kalyan Medury, VP and head-IT at ICICI Lombard, there are more than 50 functions of a mobile device, and this has helped his company to eliminate multiple devices,

CIOs from different verticals discussed the various ways to leverage mobility for business value.

most notably the digital camera and the laptop. “We started the mobility journey about 18 months back, where it used to be one application for a specific purpose. Now, we have been able to make that application itself into a platform, taking mobility to a different level. The possibilities are endless, and there are exciting times ahead,” said Medury.

State of Mobility From the results of the State of the Mobility survey conducted by CIO, Gunjan Trivedi, executive editor, IDG India, showcased the perceptions of mobility among CIOs. According to the survey, the top five mobility investment drivers were: The increased availability of powerful devices, security requirements, senior management wanting access to critical information and intelligence, employees and customers demanding real-time information, and increased focus on innovation. “However, the results showed that payments and transactions, sales force automation, supply chain tracking, and video conferencing would constitute the bulk of the FY 2013 value drivers,” said Trivedi. Interestingly, more than half the CIOs surveyed, said that the challenges faced by them were in the areas of


A Shot at Success Geet Sethi needs no introduction. An award-winning Billiards champion, Sethi is a force to reckon with. At the 2013 Year Ahead Program, Sethi interpreted the true meaning of success and joy. He stressed on honing one’s skills to achieve success. “Success is nothing but a function of action. An action qualified by consistency, concentration and spirit of cooperative endeavour, that results in humility,” said Sethi. He also spoke about the spirit of cooperative endeavour, and said humility comes from the appreciation that there may have been a million circumstances that enabled you to fulfil

mobile application development, mobile device management and mobile policy definition and administration. However, with over 62 percent of CIOs admitting that they are on track to complete their mobility initiatives and infrastructure in 2013, these challenges are soon going to become a priority, Trivedi added.

your potential. “True legends realize this, and therefore play down their achievements. For them humility is second nature. They learn to respect and accept the fact that forces outside their own selves have been responsible for their accomplishments,” said Sethi.

Securing the Mobile Enterprise In a world where an increasing number of people are using smart phones and tablets to access their company’s data, it has become critical to secure the data on these smart devices. In fact, according to the recent State of the CIO survey, 47 percent of CIOs stated that enterprise mobility adds to IT

IT leaders from some of India's top organizations share the security concerns that come in the way of deploying a mobility solution.

He provided some examples of renowned sportspersons such as Prakash Padukone, Yogeshwar Dutt and James Wattana, to highlight how successful people understand the meaning of discipline and living in the moment. “Living in the future is professional suicide. Living in the past is sometimes even more dangerous. I believe that it is the act of staying in the moment that gives immense, immeasurable joy. To me such joy is the ultimate and true measure of success. I define the meaning of my life as being in these moments of joy,” said Sethi.

risks. In another survey, State of Enterprise Security, CIOs stated that 32 percent of security breaches were related to mobile devices. A high powered panel, consisting of leading CIOs tried to understand the simplest way to let employees work with their smart devices without compromising their company’s security. According to Rohan Deshpande, CTO, O&M Worldwide, by enabling an environment where users can bring their own device, and access information on any device, the company has created a win-win situation for end users, clients and business. “However, it is important to have systems and processes in place to prevent data leakage,” said Deshpande. Burgess Cooper, VP-Information Security at Vodafone Essar, said the entire threat landscape has changed with the advent of mobility and BYOD. Now, CISOs need to move from protecting the device to protecting the data within a device. If BYOD is not handled well, it can become Bring Your Own Disaster, he said.


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ROUNDTABLE

Powering Business with the Cloud Organizations are no longer hesitant about utilizing cloud services. A recent roundtable discussion saw Indian CIOs share their strategies to best leverage the cloud.

A roundtable of Indian CIOs discussed common challenges related to cloud computing and effective solutions to counter them.

By Sneha Jha

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loud infrastructure is fast gaining mainstream acceptance within the enterprise. To find out what challenges CIOs faced with the cloud, what opportunities they were seeing, and the best practices they were learning, CIO magazine, in association with HP Services, organized a roundtable discussion on the sidelines of the Year Ahead Program.

The participating CIOs concurred that cloud computing should not be viewed as just a cost optimization strategy though it does have the ability to deliver cost reductions. Prashanth Puliakottu, CIO, Sterlite Technologies, said, “A common misconception is that there will be huge cost savings with the cloud. I caution against falling in this trap. The costs associated with the cloud are the same or even more as compared to any other model. How-

It’s vital to choose the service provider for a longterm policy. Organizations must have a roadmap of where they are and where they plan to get. Sudhir Rao, Chief Technologist–Enterprise Services, HP India

ever, in terms of value add, it pays off handsome dividends.” CIOs know that the cloud lends several business advantages, but they are concerned about issues such as vendor lockin and exit strategy. Nevertheless, CIOs are now beginning to put new enterprise initiatives on the cloud. Shobhana Ravi, chief information and learning officer, TAFE, said that she was indeed planning to host new applications on the cloud. “We will not host ERP and other legacy applications on a cloud platform, but we are putting our dealer management system on the cloud. For an implementation of that magnitude, it will be difficult for us to manage the development ourselves. It takes tremendous amount of time, effort, and skill, that we are not keen on investing,” she said. The cloud is also an effective solution for organizations that want scalability. N. Rajendran, head-network, information security and datacenter, NPCI, said, “Our business is growing at a blistering pace. And we are aware that soon we will need a public cloud to scale up. In the future, with the right security nets in place, we might explore the option of a public cloud.” The CIOs also agreed that organizations should evaluate use-case scenarios and then map out a clearly-defined cloud strategy. Sudhir Rao, chief technologistEnterprise Services, HP India, said, “Choosing the service provider for a longterm policy is important. Organizations must have a roadmap of where they are and where they plan to get. Painstaking research and meticulous planning on the part of the cloud provider goes behind the delivery mechanism.”


Cloud Computing

TECH When it comes to cloud computing, the biggest obstacle in IT’s way is often a company’s own corporate counsel. Here’s how IT is resting its case.

By Howard Baldwin

The first time a client brought intellectual

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property lawyer Janine Anthony Bowen a cloud computing contract to look over, her reaction was, essentially, “These people must be nuts.” “I read the clause saying the service provider would bear no liability for anything that went wrong with its service, and even if something did go wrong, my client would still be responsible,” recounts Bowen, lead partner at Jack Attorneys & Advisors in Atlanta. To recover any losses, her client would have had to bring suit, and the maximum recovery amount equaled no more than the fees paid for 12 months of service. That amount wouldn’t even

How to convince your legal team for the cloud Why IT and legal need to be friends What legal needs you to ask your cloud vendor

begin to come close to the value of a data loss. Bowen’s assessment of the contract was blunt: “The terms were offensive,” she says. Tanya Forsheit, with whom Bowen shared the dais at a Practising Law Institute seminar on cloud computing, says she has similar concerns. “The cloud providers try to convey a take-it-or-leave-it attitude for their contracts, expecting people to click through the ‘I accept’ options the way people click through the iTunes website,” says Forsheit, a founding partner of InfoLawGroup. Because of the take-it-or-leave-it approach of cloud providers, IT professionals are running

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Cloud Computing into problems with the legal professionals charged with mitigating the risks that their organizations face. That’s the case at the Port of San Diego, where Deborah Finley just began thinking about using a small vendor’s cloud-based e-mail archiving service. “We’re a medium-size organization without the leverage a larger organization might enjoy. The vendor’s contract had a limitation of liability for the cost of the contract, while our legal department has standard language about indemnification,” says Finley, the Port’s director of business information and technology services. “To change that language, we would need board approval.” After some back and forth, Finley and the Port lawyers reached a compromise, but she’s reluctant to go to the board every time she wants to sign a cloud computing contract. For Finley and many other IT execs, the bottom line is this: Cloud computing is supposed to make things easier and cheaper for IT, but instead, it’s turning lawyers and CIOs—two groups with more common ground than they realize—into adversaries, at least temporarily. The lawyers, whose job is to advise the company on legal, risk and compliance issues, want to limit contracts that ignore or gloss over matters related to data loss, privacy, security and e-discovery. CIOs, whose job is to advise the company on technological issues, want to provide computing capabilities to business units as quickly as possible. As cloud computing becomes more prevalent, the two groups can

find themselves at loggerheads—though both are striving to serve the business. As an IT leader, how can you come to terms with your company’s legal counsel? How can the two of you work together to make your company’s transition to the cloud fruitful rather than fretful? The process is fairly simple, cloud pioneers say: Ask lots of questions and exercise a healthy dose of due diligence—all of which can lay the groundwork for future teamwork in the cloud.

Why the Cloud Causes Trouble

Cloud computing is a relatively recent development and therefore an area where legal precedents are scarce. “People don’t think about the legal issues because this is so new,” says Barry Murphy, an analyst at Boston-based eDJ Group, a research firm that focuses on information governance and e-discovery. “There’s no prescriptive case law, so there’s a lot of trepidation” among lawyers anxious to both protect the company’s data and remain on the correct side of government regulation, Murphy explains. Case law is clear, however, when it comes to e-discovery in the cloud. “The courts say, ‘If you’re storing information, we expect you to produce it for litigation or compliance,’ “ says Murphy. “Most companies aren’t smart enough to ask a service provider if they’ve mapped out a chain of custody for data. And a lot of CIOs don’t know the implications of privacy and transparency laws.” Legal questions about the cloud are becoming an issue now simply because enterprise adoption of cloud computing is growing. The small and mid-size companies that pioneered the move to the cloud were less likely to have legal teams waving red flags, industry watchers say. For one thing, they didn’t have a lot of leverage when it came to negotiating the terms of contracts with vendors the size of Microsoft, Rackspace and Amazon. Moreover, they may have been more willing to overlook legal and security concerns because they were eager to embrace a new If you want your company’s legal team to swing in favor computing paradigm that promised to help them get of cloud computing, you need to ask your cloud providers applications up and running quickly. some tough questions. Here’s what lawyers recommend. Now that larger companies are considering cloud services, corporate lawyers are getting “Lawyers balk at cloud computing contracts because they don’t have all involved—and they’re rejecting some of the more the facts. Until they have all the facts, the lawyer can’t give you legal advice,” egregious clauses of standard service-provider observes David Wells (a pseudonym for a Fortune 500 corporate counsel who contracts. Forsheit, for example, frequently tells requested anonymity). service providers that her clients won’t blindly He notes that cloud questions should seek the same information journalists sign away protection. “I’m not asking them for are supposed to gather: Who, what, where, when, why and how? Wells and other unlimited liability,” she says. “But if they want our lawyers suggest asking these questions: business, they have to compromise.” Why are we thinking of a public cloud? What are the trade-offs vis-a-vis storMartin Fisher isn’t a lawyer. But as director of ing the data on-site? information security at WellStar HealthSystem, a What kind of data are we putting in the cloud? Is it personally identifiable five-hospital group in Atlanta, he’s familiar enough or sensitive? with healthcare regulations such as HIPAA to Where are the servers located? What privacy laws govern those jurisdictions? recognize problems in cloud contracts. Fisher How is the data stored and transmitted? Will it be encrypted? looked at one well-known vendor’s cloud-based Who has access to the data? How is it physically protected? e-mail system before realizing that, in order to How quickly will we be notified if there’s a breach? comply with HIPAA, he would have to sign what’s known as a “business associate agreement” with —By Howard Baldwin

Legal Cloud Advice: What to Ask Yourself

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Cloud Computing any other entity whose data resided on the same system. Fisher killed the deal and went with a remote-hosting arrangement, where WellStar’s equipment sits in a third-party datacenter.

Legal, Your New Best Friends The CIO and legal counsel must recognize that they’re on the same team. “Both sides have to think of things from the other party’s perspective,” says Paul Lewkowicz, an intellectual property attorney at Daly Crowley Mofford & Durkee in Canton, Massachusetts. “IT has to think about what happens when everything goes wrong. The lawyers have to remember that IT is there to make the business run. [The lawyers] don’t want to say no. They want to know what can make the contract more acceptable.”

knowing what the risks are. There are risks in everything, even in managing data on your own premises. The biggest question is, How do you mitigate the risk? How do you protect yourself as best you can without stifling the business? David Wells (a pseudonym for a Fortune 500 corporate counsel who requested anonymity) agrees that getting subject-matter experts into one room promotes understanding. Each person can address facets of the deal with his own expertise, which helps the group identify which issues are worth worrying about and which aren’t. “Otherwise, you can have lawyers spinning scenarios and creating fear, uncertainty, and doubt. If you can’t get past FUD because people don’t understand it, you’ll either crater the deal or, worse, do a bad one.” How do CIOs and counsel start collaborating? By asking questions. Ideally, the CIO should know the questions to ask before the attorney even requests the answers, but that doesn’t always happen. “That’s why I ask the same questions over and over,” says Wells. “My people finally know not to come to me without the answers to my questions.” Beyond that, lawyers suggest CIOs ask what clauses in the contract really mean. Wells says that service-level agreements drive him especially crazy. He sees contracts promising restitution for downtime, but the amount of payback is minimal. “If your lawyer’s not paying attention, your remedy for downtime is actually pennies on the dollar, and you give up your right to sue for breach of contract by accepting it,” he says. “If you have a service provider [whose systems are] chronically down, the lawyer should insist on the right to terminate for breach of contract.” E-discovery is another issue that lawyers tend to focus on more than CIOs do. Murphy notes that there are companies like Nextpoint and X1 Discovery that specialize in discovery in the cloud, but the issue is more complex than it appears at first glance. Forsheit agrees. “In the cloud, data is being replicated, so it creates more data for discovery, including metadata,” she warns. Federal rules require that you must know where the data is and ensure that e-discovery will find it. “But if there’s a server in the cloud that nobody thought about,” she says, “people can get sanctioned or jailed, and lawyers can be disbarred.” In the end, legal experts say, getting IT and legal to agree on cloud contracts comes down to a matter of careful communication. “They have to speak each other’s languages,” Forsheit says. “Counsel needs to understand IT and vice versa. Doing it another way is not an option.” CIO

The bottom line is this: Cloud computing is supposed to make things easier and cheaper for IT, but instead, it’s turning lawyers and CIOs—two groups with more common ground than they realize—into adversaries. IT should ask counsel to handle contract negotiations. “Negotiating is an art form, and lawyers are trained to do it,” Lewkowicz says. “IT people think of contracts as a couple of pages of specifics and then boilerplate. But it’s that boilerplate that saves everybody’s bacon when something goes wrong.” While it’s important that the CIO and corporate counsel have a good relationship, it’s even more important that they bring together a team to pore over the agreement and ensure that all issues are covered, says Thomas Trappler, who teaches a cloud computing course at the UCLA Extension school. Admittedly, this may seem counterproductive, because one of the benefits of the cloud is to make IT deployments quicker and easier, but it’s worth the time, Trappler insists. After IT and legal work on a few cloud contracts together and get some experience hammering out terms, the process should get easier—in theory. Trappler says that one of the things he stresses in his classes is the importance of team building—where the team includes the business process owner (the one who needs the cloud service), legal counsel, representatives of IT and people involved in procurement, risk management, vendor management and security. WellStar’s Fisher concurs: “When IT and the attorney and someone from compliance all sit down and go through a contract, with give and take about what’s best for the organization, you get a lot of goodness out of it.” Industry watchers say it’s all a question of due diligence, of

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from the TOP

Rajeev Wagle, Managing Director, Kuoni India, says his company, and the industry, can achieve a lot more using IT.

IT-inerary

Planning By Eric Ernest

For a country like India blessed with backwaters, beaches, mountains and monuments, the travel and tourism is replete with opportunity. Among the top travel operators in the country, Kuoni India has been striving to enable the Indian traveler to experience the joys of the land and fulfill their aspirations to travel abroad. Thriving in an industry that contributes roughly 6 percent to GDP— but is currently marred by high airfares, a weak Rupee, and less-thanadequate support from the government—isn’t easy. In this interview, Rajeev Wagle, MD, Kuoni India, talks about the aspirations of the Indian traveler and how technology can help Kuoni India keep growing and enrich their customer’s experience.

Kuoni India is among the top three organizations in its space. How do you plan to grow from here?

What do CEOs and other C-level executives expect from you? Read all about it in View from the top. Visit www.cio.in/ceointerviews

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I believe we need to leverage technology to the maximum. A lot of our processes are manual and lend themselves to automation, which will help us derive productivity gains. We try and automate from end-to-end so that our processes are robust and secure while ensuring that there is very little manual intervention. We already have good front-office systems, and a seamless

interchange between the front office and the back offices.

How about customer-facing technology initiatives to drive growth? We have quite a few initiatives in that direction including those where we enable our customers to book directly from our website or through our call center. There are many ways through which technology can make the experience for the client a lot richer. Most of us don’t necessarily go to a bank branch; we conduct business over

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Rajeev Wagle expects I.T. to

Make customer experience more delightful

Automate processes and improve productivity

Stay abreast of technological advancements

Photo by s rivatsa shandilya

the Internet or a mobile. Although the travel industry hasn’t evolved the way banking has, we are seeing a lot more of these initiatives here. OTAs (online travel agents) have helped make this happen. Over time, behavior patterns will emerge and technology will be a differentiator.

Doesn’t using technology for customer interactions move accountability away from the enterprise and onto the customer?

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I don’t believe there is a shift in accountability. All that we are providing the customer is a feature-rich engine with a lot of features which will allow customers to discover and experiment. Customers want to decide on their itineraries considering their budgets, destinations, and time constraints. If you leave customers with possible options for a couple of days they will short-list some options. This allows them the joy of discovery using the website. They still need our help, though. And

not just with transactional things like final ticketing and foreign exchange, but also to enhance their experience based on inputs from experienced professionals on things to do in particular locations. There still are a lot of things that a search on Google or Trip Advisor can’t tell you. We believe that companies like us will be able to bring this. For example, if someone needs to make a round trip from Mumbai to Delhi then it’s just a question of getting the cheapest tickets, which is like buying

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any other commodity today. But if you add an itinerary to this trip and add places to visit, then someone needs to understand the customers’ interest and make suggestions based on them. Travel is a lot about experience.

What are some trends you are witnessing with respect to the duration of trips? We are seeing a definite trend where people are taking more than one holiday a year. These may be all foreign, all domestic or a combination of the two. This also includes some group tours with parents and others with friends. There are a lot of senior citizens and retired people who like to go out for longer vacations. This is a growing segment. This is an affluent section as people at that age realize they need to catch up on their travel, which makes it an interesting segment. The trends haven’t lead to an elimination of long duration trips. It varies according to the segment. It is true that the quantum of long duration trips is not increasing drastically owing to exigencies working adults face and how difficult it is to get a leave of three weeks at a stretch. The trend is also about wallet share. The customer may not be able to afford multiple Euro-trips because it is expensive given what he earns and may not be able to make it more than once a year. So he’d rather go and see all the countries in one trip and make the most of the travel. A first time traveler weighs that in his mind when he is taking his wife and family abroad. The affluent sections approach this differently. They might just visit Italy in one trip, France in the other and UK in yet another trip. Each market needs to be catered to differently.

Talking about segmentations, how do you target different market segments? We’ve been in the business for a substantial number of years and we 96

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"Over time, behavior patterns will emerge and technology will be a differentiator." —Rajeev Wagle

have past data on our customers and sophisticated CRMs that slice and dice this data. A customer who has taken a trip to Europe may want to visit the US next and we will be able to offer him options in that regard. Or a customer who has completed an Asia trip might now aspire to visit Europe. Our past customer data is rich and we have a lot of loyal customers. We use our CRM tools to ensure that our propositions to our customers are offered well in time and this has been very well appreciated.

Is the industry beginning to see a shift towards international travel? Domestic travel in India is largely dominated by religious tourism and visiting friends and relatives. There are almost 700 million inbound travelers and 13 million outbound travelers. But if you are asking whether an existing domestic traveler can move to an international one, the answer is yes.

We are looking at high-end domestic travelers who aspire to go international and whose usual destinations are places in South-East Asia such as Thailand, Singapore, or Malaysia. They might also initially go to neighboring countries like Nepal. This tends to be cost effective and customers feel comfortable because culturally these countries are close to us. People sometimes are also worried about food and customs and South-East Asia is more compatible in that regard.

How does this impact your profit margins? Profits are a function of your cost structures; on what you spend on advertising and the competition you face. In the last couple of years, the industry has witnessed a reduction in margins essentially because of the steep depreciation in the value of the Rupee, which forces the price of packages up. We have not been able to fully pass on these costs to customers and hence we have absorbed some of it. We have also pushed some of it to our partners, including airlines and hotels. Margins are a lot more difficult. In some cases there has been down-trading. Owing to the cost of packages, customers have had to opt for shorter trips or more cost-effective destinations. But we are hopeful that 2013 will be better. I also think that due to the stock-market being where it is today, there is a feel-good factor attached to it.

How is Kuoni India coping with the consistently weak Rupee? We are at the complete mercy of the Rupee-Dollar parity. The suddenness with which the dollar went from Rs 55 to Rs 57 caught a lot of us by surprise and made customers cancel or postpone their tours. This year we seem better placed as nobody expects it to go back to Rs 45. We expect the dollar to be in the range of Rs 52 to 55, which is a fact we are getting used to.

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We are dealing with this by introducing more affordable packages by going back to our suppliers and renegotiating rates wherever possible, and shedding some of our margins.

Many in your industry say the last budget was a dampener. Do you agree? We’ve not grown as much as we thought we would but we have done better than last year. Trends in 2012-13 seem to be better with the government getting its act together. If you find an economy not growing and the government not taking appropriate measures and consequently affecting GDP, the travel industry suffers. When GDP grows, discretionary spending goes up, stock markets do well, and people’s propensity to spend is high. When the economy is recessionary, there aren’t very many good employment opportunities and spend on travel decreases. We are also seeing an increase in demand from the middle class for whom travel has become a mandatory spend as they manage the expectations of their family and friends.

Do you think enough is being done by the government to promote tourism in India? The government tends to get obsessed with inbound tourism but I think they have done a very good job in this area. Outbound is not talked of as much because it is considered a spend of foreign exchange. A number of national tourism organizations have setup shop in India because the Indian tourist is a high spender in those countries. These are countries that are dependent heavily on income from tourism and depend on travelers from countries like India. We send more than 1 million tourists to Thailand and a little less to Malaysia. These countries value the spending habits of the Indian traveler and actively woo such tourists.

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What are some of the specific additional measures that are called for?

SNAPSHOT

Kuoni India

some other company might not have been able to achieve that. Headquarters: Each organization in Mumbai an industry will achieve Founded: productivity and other gains 1996 from the deployment of a The government has technology in a different introduced the service tax Revenue: Rs 2,200 crore manner. If we talk about the recently and all of us in the front-end, differentiation is tourism industry felt that Employees: 3,500 more apparent. Some may have the amount which is spent their own customized customer outside India for hotel, interfaces and the experience sightseeing, food and leisure would depend on how smoothly the ticketing should not be taxed in India. We are making process can be completed and the ease with representations to the government about which it can be done. this and hope to see some joy in the next budget. We are not opposed to the tax but we want it to be properly levied. In such a scenario what are

Despite being one of the largest employers, your industry doesn’t attract the best talent. What's the fix? This has a lot to do with how the travel industry portrays itself. Hospitality, for instance, is similarly placed but ranks higher on the list of someone looking for a job because hospitality has packaged itself far more attractively and appeals to a student who is not going to be a CA, a doctor or an engineer. Travel and tourism, on the other hand, is viewed as being lower in stature. We run a travel academy to provide vocational training and making the students more employable. But I do feel more needs to be done by everyone as this industry is such a huge employment generator.

How can technology be the differentiator for an organization operating in this sector? Even though the same technology is available to every organization, it is deployed differently. Finally, it is the people that make the difference. Technology is a differentiator not because I am buying something else. Even if I use the same technology I might have deployed it in a seamless manner whereas

your expectations from the CIO and the IT team?

One would expect the CIO and the IT team to stay abreast of all the latest technologies and figure out which of these are relevant to a travel organization. He should be in tune with the company’s strategy and objectives. A CIO should be someone who can oversee the sourcing of technologies for strategic business advantage.

Finally, what’s your take on the rise of social media? Today, every company needs to evolve with social media strategies. There are companies that have done it well and there are others who haven’t. Every category of products is going to find a way into social media. One can’t afford to ignore it as it is a channel to ensure we get repeat customers. The customer referrals here can be achieved at a fraction of the cost of other channels. It’s our endeavor to utilize social media as a source for endorsing our products. There might also be customer experiences which, if they are not up to the mark, might get blown out of proportion. But that’s just how social media is. It does come with its issues but I believe every company, us included, needs to have a proper social media strategy. CIO Anup Varier is senior correspondent. Send feedback on this interview to anup_varier@idgindia.com

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Growing Strong With EMC Everybody likes a growth story. But KPIT Cummins’ rapid growth was giving its IT team nightmares. To sustain growth, it needed to infuse flexibility, make its systems more efficient, and have a solid DR and BCP strategy. It turned to EMC.



Company

KPIT Cummins

Industry IT

Revenue

Rs 1,503 crore

Over the last couple of years, Pune-based KPIT Cummins Infosystems has demonstrated a year-on-year growth of nearly 50 percent. Today, its revenue stands at about Rs 1,503 crore. Anything that obstructs this dream run is undoubtedly more than a mere hurdle—it’s a threat to the company’s business. One such hurdle existed in KPIT Cummins’ test and development environment. As an IT services organization, the company needs to service its clients by showcasing a proof-of-concept and assuring them that the solutions work the way they ought to. In order to achieve this, it would need to run the relevant applications in a test environment and also need more compute and storage capacity. To this end, the development team would raise a purchase request for approvals and the procurement of additional servers could take anywhere between eight to 10 weeks. This was precious time and opportunity the company was losing. It realized early that it needed a mechanism that could help its teams deliver faster—and more efficient services—to its clients.


Custom Solutions Group EMC

Our production applications and critical services run on three EMC storage arrays— NS480, VNX 5300 and VNX 5500—and they are also used for all our databases.” Mandar Marulkar,

Head-IT infrastructure, KPIT Cummins

Adding Numbers The company’s growth story is not just restricted to revenue but is also visible in its employee strength that has jumped from around 6,500 to 8,000 in the past two years. The fatter balances, however, also meant greater workloads during month ends. Activities such as batch processing, invoicing and payroll would stretch into the next month and cause unwarranted delay. “We were not able to dynamically increase or reduce the compute power as per requirement,” says Mandar Marulkar, head-IT infrastructure, KPIT Cummins. And while the company was adding numbers to its strength, it was also spending excessive time in assigning a desk to a new employee. It would take the IT team at least a day to provide the necessary assets to a user and load the software required for their

job role. The IT team would also have to individually upgrade the PCs. This was a time consuming affair. The company was also looking for a way to efficiently utilize the physical infrastructure and provide its employees with the flexibility to work from any location using any type of device.

Virtual Ploy Though a late adopter of virtualization, Marulkar and his team had tried their hands at it by putting their non-critical applications on a pool of virtual resources and were more than pleased with the results. They knew that one way of tackling their growth concerns would be to beef up their datacenter by going all out with virtualization. They realized, however, that virtualization alone wouldn’t be the answer to all their woes. And since


they were planning for a fully virtualized environment, they reasoned they might as well go a step further and implement a private cloud by adding efficient administration, management controls, and selfservice features. This would not only reduce the dependency on IT but also help management to control and monitor how efficiently the infrastructure is being utilized. As luck would have it, Marulkar had a chance meeting with some senior leaders of EMC IN 2010. They informed him of a converged infrastructure solution focused on the next generation datacenter and the future of cloud computing that was coming up from VCE (VMware, Cisco and EMC) called Vblock. “Even though the company had not been officially formulated then, we were very impressed by the proposition,” says Marulkar.

many principals offering such a solid pre-integrated and pre-configured solution. In February 2011, Marulkar and his team started with the implementation of Vblock and went live in two months flat. Once the implementation was complete, they hosted all their production applications like SAP, Exchange, Microsoft Lync, and configuration management system on it. “We gained a lot of confidence from this and decided to expand our cloud to consolidate more than 400 other test and development applications,” says Marulkar. At the same time, KPIT Cummins also decided to tackle the issue of high desktop provisioning times by taking the VDI route. This, it figured, would allow flexibility to its employees and also improve the productivity and efficiency of its IT team.

Trust, But Verify

But a major factor for consideration for both these decisions was the mission-criticality of the data being hosted on the virtual infrastructure. So, along with their expansion plans Marulkar decided to build a DR not just for their private cloud but also for their virtual desktops and ensure business continuity. “We set up our private cloud with the intention of providing IT-as-a-Service to our internal customers. But when we set up the cloud, we realized we had created a huge dependency on the infrastructure and wanted a robust DR solution for it,” says Marulkar. For this, they placed an order for 2 Vblocks in Dec 2011—one for the expansion of their private cloud and the other for DR—and this was delivered to them in early March 2012. The pre-configured racks, shipped from Israel, were accompanied by professionals from the UK. They moved the racks into the datacenter and within 48 hours were able to conclude the power-on tests and check if all the components were working. This was then handed over to the IT team at KPIT Cummins for their business applications. “The most impressive part was that they planned well and were thorough in collecting our requirements and our sizing needs,” says Marulkar. As part of the Vblock architecture, KPIT runs on three EMC storage arrays—NS480, VNX 5300 and VNX5500. “Our production applications and critical services run on these storage arrays and it is also used for all our databases primarily,” says Marulkar. The NAS services are also used for file services, VDI home-folder mapping, and many non-IO intensive workloads. Marulkar and his team then looked for options for an efficient storage replication solution and deployed EMC’s Recoverpoint appliance in tandem with VMware’s site recovery manager. A key criterion

So, KPIT Cummins conducted a proof-of-concept and thoroughly tested the capabilities for not just Vblock but also solutions from other infrastructure providers. But the fact that they would have to look for different products—for software, storage, servers and networking—from different vendors and rely heavily on an SI partner to ensure that infrastructure is right-sized wasn’t encouraging. What also worked in VCE’s favor was the fact that in 2010 there weren’t

EMC RecoverPoint can transfer the load of server compute onto the appliance at the time of replication. This provides an RPO ranging from 0-10 minutes depending on the nature of the application.

Disaster-Proofing


Custom Solutions Group EMC

while executing DR for KPIT Cummins was the ability to restore the data while ensuring a two-way transfer. “When hundreds of TBs of data is getting replicated, this feature helps avoid the creation of an additional overload on the actual host and a consequent degradation in the performance of production application. A simple hostbased replication could have also sufficed but then you add burden on the existing compute,” says Marulkar. It’s easy to set up RecoverPoint to replicate the data at the DR site, as it also has a feature that can roll-back data at the DR site to pre-defined recovery points. This avoids replicating corrupted data from the primary site onto the DR site. There is also an additional feature in RecoverPoint that transfers the load of server compute onto the appliance at the time of replication. This solution provides an RPO ranging from 0-10 minutes depending

on the nature of the application. Yet another challenge faced by Marulkar was that the backup window shot up to almost 38-40 hours as a large number of applications were consolidated onto a single platform. “We were unable to take daily backups and data continued to grow in an exponential manner.” Especially with the deployment of virtual desktops, the company was at a risk of losing the data of 1,200 users if there was a failure. “We needed an efficient backup solution which is why we went ahead with EMC Avamar for taking full backups on a daily basis. This helped us reduce the backup window by almost 70 percent,” says Marulkar. Of all the benefits derived from the solutions, it is the commitment and the personal touch of EMC’s senior management that has left a mark on Marulkar. Today, he is among EMC’s satisfied customers.

Redefining Government Organizations Bhupesh Chauhan, Head-Government Business, EMC India & SAARC, says technologies like the cloud and big data are reshaping government organizations and improving citizen services. What are some of the unique challenges facing central and state governments? We are living in an era of digital information explosion and the biggest challenge faced by our government is data management and security. Some key considerations for the government sector would include evaluating the existing IT portfolio against tomorrow’s needs, mapping service-level requirements, and arriving at the kind of future infrastructure that’s required.

How can technology help? PSUs need to evaluate their future IT requirements against their budgets and cloud vendor services to determine which IT services need to be moved to the cloud. Government organizations must also have a zero-tolerance approach to data leakage, insider threats, zero-day and targeted malware. And finally, they need to identify an end-to-end solution provider to bring together the different pieces from the larger ecosystem.

India, with its ambitious Aadhar project, has a classic opportunity to leverage big data to make radical improvements in citizen services.” Bhupesh Chauhan,

Head-Government Business, EMC India & SAARC

Considering the scale at which most government businesses run, how can they optimize their infrastructure? It’s time for IT transformation and government companies should focus on consolidating existing datacenters, shifting to cost and agility environments that include virtualization and the cloud. India, which has already set the stage with the ambitious AADHAR project—the world’s largest biometric identity platform—has a classic opportunity to leverage big data to make radical improvements in citizen services. How can IT improve user experience? Today, the cloud is revolutionizing the IT process by making it possible to run ITas-a-Service and driving maximum efficiency for its consumers. By deploying a pool of elastic resources, IT must provide a new end-user computing model so that IT can maintain control over information and access, while allowing users to choose their own devices.


casefiles real people

* real problems * real solutions

A Suitable

Bargain New software could save Gokaldas Exports millions a year—the problem was it required a capex investment the company didn’t want to spend. It seemed like a lost cause until its CIO created a payment model that kept everyone happy. By Debarati Roy The Organization: Gokaldas Exports is the royalty of the Indian garment industry. Its pedigree goes back four decades to when J.H. Hinduja founded the company and quickly put India on the global apparel map. Today, the Bangalore-based bulk manufacturer and exporter of ready-made clothes works with high-street clients that include Nike, Diesel, Levi’s, and Abercrombie and Fitch, among others. The Business Case: Like most other businesses worldwide, sluggish sales and rising input costs have forced Gokaldas Exports to look inward to cut costs and improve the health of their bottom lines. When the company’s leaders began looking in 2011, what they found surprised them. “When we did a study to find out the areas we needed to improve in, we found that Gokaldas was losing a considerable amount in value chain loss,” says Yatendra Kumar, head-IT, Gokaldas Exports, who was part of the team in search of new efficiencies. Value chain loss is a challenge many manufacturers face. At Gokaldas Exports, it came in the form of raw fabric that was left over after a roll of cloth had been cut. According to Kumar the company was losing upto 10 percent of raw material in the manufacturing process. Given that Gokaldas purchases raw fabric worth about Rs 800 crore a year, it was taking a Rs 80 crore hit, approximately, in value chain losses a year. “That’s huge,” says Kumar. ‘Cut Plan’ software, Kumar knew, could reduce raw material wastage. The software, which is available off-the-shelf from Provab Technosoft, allows workers to input the size, type, and other specifications of the garment to be made and uses an algorithm to generate

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an optimal cutting plan. This plan is then fed into the systems at the cutting lines. “We ran a test for the software about six months towards the end of 2011 and saw great results,” says Kumar. There was only one problem: The software was very expensive. The Challenge: “We realized we needed to invest about Rs 8-10 crore to install the software at all 30 factories,” says Kumar. And that didn’t include other overheads like training costs. Once upon a time, an ROI window of a year might have been acceptable, but not in today’s climate. So Kumar then tried looking for a more cost-effective alternative to software Provab provided, but came up empty. “Most other players had standalone modules. Clustering many of these smaller apps together would lead to integration challenges,” he says. So Kumar revisited his original idea of working with Provab, only this time he focused getting them to agree on an opex model. The question was: How was he going to convince a software provider, which didn’t have a cloud offering—and probably knew it had a monopoly in its niche market—to agree to anything but a capex model? The more Kumar thought about it, the more he realized he needed to look at it from Provab’s perspective. “It already had the software ready. If they didn’t agree to a more flexible model, the software would just sit idle with them,” says Kumar. Kumar also knew that Provab was confident of the enormous savings its technology could bring. He decided to challenge the company: If they really believed in their product, they would accept no upfront payment and only 5 percent of what Gokaldas saved using its software for three years. If Gokaldas could save 8 percent on raw material purchases worth Rs 800 crore, Provab’s take would be in the range of about Rs 3 crore. He then hung the alternative before Provab: Make no money at all. Provab got on board.

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Yatendra Kumar, Head-IT, Gokaldas Exports, got a software provider to agree to a new payment model: 5 percent of what its software saved Gokaldas, over three years.

Benefits: It’s been nine months since the software was deployed at Gokaldas’ factories. Initially, Gokaldas saw only a 2 percent saving as it got used to the software. But over time, Kumar says, the needle moved up to 5 to 6 percent. At 5 percent, Gokaldas is still saving about Rs 35 crore a year—even if it lowers its buying to Rs 700 crore of fabric a year.

Kumar says that they plan to increase savings to 8 percent, which works out to about Rs 6.4 crore a year—a feat that would have been impossible if Kumar had decided to listen to conventional wisdom and cut his coat according to his cloth. CIO Debarati Roy is correspondent, Send feedback on this feature to debarati_roy@idgindia.com

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casefiles

Zenga Media

If Zenga Media needed to keep pace with the customers of its live streaming business, it would need to turn to the cloud.

By Eric ernes t

The Organization: Back in 2008, when live video streaming was still in its infancy in India, Zenga Media made an entry, promising it’s viewers with mobile TV service—even on 2.5 G—and mobile e-mail solutions. Today, the company caters to more than 50 percent of mobile TV consumers in India. The Business Case: In 2008, all of Zenga's services—including Zengamail, its push mail service—ran from a local datacenter. For a startup, managing a datacenter was

Shabir Momin, MD & CTO, Zenga Media, saved 80 percent in costs by moving to the cloud.

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not only expensive, it was also cumbersome. Zenga TV was started as a pilot service from the datacenter. The resultant higher loads on the network along with the occasional spikes in traffic made Zenga realize that they needed a new system to accommodate these changes. Also, getting the right resources to manage the datacenter was a significant problem that Zenga faced during its initial founding days. “When managing a datacenter, you have to deal with the smallest to the largest of issues,” says Shabir Momin, MD and CTO, Zenga Media. Another problem was the increasing load resulting from video views. Zenga media has recorded 421 million video views for 2011, a massive jump from 150 million in 2010. On an overage, Zenga currently sees close to 60-70 million video views a month. Momin expects this to jump to 600-700 million views by 2013. The Project: In order to put all these issues to bed and infuse agility and scalability, Momin turned to the cloud. Initially, Momin decided to move his datacenter to Rackspace’s cloud platform. But the beginning of the IPL season in 2009—that Zenga won the rights for—triggered the need for another cloud platform just to accommodate IPL. While all

the other services remained on Rackspace, IPL streaming moved to Amazon. As the 2009 IPL stream went smoothly, Zenga shifted its other services on to Amazon as well. The Benefits: Moving to the cloud helped Zenga's IT department reduce its strength from 35 to five. The remaining 30 team members were allocated to the R&D wing, thereby adding value to the company. On the financial savings of this move, Momin says that he has been able to save up to 80 percent on the resources front. He has also saved 50-60 percent on infrastructure costs. "If I were to do IPL, I would have had to buy 50 servers. And I wouldn't be able to use those 50 servers after the IPL; they will lie idle for no reason. A business model that would allow for (such) an investment and use it only for two months in a year is not viable. Now, I am not worried about all this as I can scale to 500 servers when I need and even come down to five servers as needed," says Momin. This has been a win-win situation for everyone, including Zenga Media’s customers who have also benefited from the better connectivity when streaming content online. CIO Eric Ernest is correspondent. Send feedback on this feature to eric_ernest@idgindia.com

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WHEN IT MEANS BUSINESS IT departments have fast evolved from business enablers to business drivers. With increasing demand from CEOs and board members for measurable value of IT, it is now widely recognized that IT needs to step up and drive the business. The big question staring at CIOs today is ‘How can they make this transition successfully?’ Find the answers at the 2nd edition of CIO Summit. Driven by IDC & IDG, this business conference for IT leaders has been designed to focus on the business value of IT. With an impressive lineup of international speakers, real-life case studies and research findings; this residential conference will provide you with all the answers to make a successful transition from business enabler to business driver. At the conference, you can also meet and interact with some of the brightest minds in Indian IT and exchange ideas and best practices. All this and much more, at the CIO Summit 2013.

GLOBAL INSIGHTS

David McNally IT Executive Advisor, IDC (USA)

Ankush Chopra, Ph.D. Asst. Prof. Of Strategy, Babson College (USA)

Venu Reddy Research Director, IDC India

The conference is designed with dedicated themes to focus on the impact of technology on your business. Leading with Innovation: In this session leading academic and IDC analysts will present a framework for innovation encouragement and innovation management. Leading with Performance: The session will examine how CIOs can deliver programs which result in shorter ‘time to market’ and tangibly contribute to business results. Leading with Transformation: Lead by a global practitioner and IDC analysts, this session will help CIOs understand when a situation is truly ‘transformational’ and what they can do remain relevant and become successful through these situations.

Prashaant Huria CIO, EMEA AstraZeneca (UK)

DATE & VENUE

INSIGHTS FROM IDC

Shalil K Gupta Consulting & Insights Director, IDC India

THEMATIC AGENDA FOR FOCUSED DISCUSSIONS

6-8 March 2013 | Hyatt Regency, Pune

Sanchit Vir Gogia Principal Analyst, Emerging Technologies, IDC India

ENTRY BY INVITATION ONLY To Request For An Invitation, Visit www.ciosummit.in

Jaideep Mehta VP & Country GM, IDC India

Event Organisers


By Minda Zetlin

Gambling on Startups By Stephanie

Overby

CIOs say that partnering with no-name vendors can lead to a big payoff (more innovation)—or a total bust. Here’s how to ensure you don’t fall in the second bucket. Reader ROI: Why working with start-ups is beneficial The challenges of working with them How to figure out which start-up to invest in 80

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Vendor Management

10 Questions for a Startup Vendor Several years ago,

Rob Duchscher took a chance by signing a contract with a startup vendor of test automation software. Duchscher, now the CIO of Starkey Industries, the largest hearing-aid manufacturer in the United States, did his due diligence. The financials were in order, the company’s leaders had a track record of success, and the startup’s technology blew the competition away. A few years in, the company closed. And Duchscher was left to pick up the pieces. “At that point,” says Duchscher, “I was hosed.” It wasn’t the first time Duchscher got burned placing a bet on a young vendor. Some were bought. Others went bankrupt. And it probably won’t be the last. Unlike some IT leaders, Duchscher doesn’t like to play it safe with vendor selection. “A lot of my peers are too risk-averse. They want to make the absolute safest choice,” says Duchscher, who was VP of software engineering and a R&D program manager before taking over IT. “Safe choices lead to a culture of status quo. And status quo, especially today, can make it hard to survive and remain profitable.” Increasingly, IT leaders, frustrated with traditional suppliers, are seeing the appeal of startup partnerships. “The desire for lower risk pushed a lot of CIOs toward the bigger players with deeper pockets and more money for R&D. But they gave up one risk for another,” says Christine Ferrusi Ross, research director at Forrester. “They traded the risk that a smaller, newer vendor would somehow fail for the risk that they would be held hostage to a supplier with whom they have no leverage.” It’s not just increased influence that draws CIOs to nascent suppliers. Startups are more flexible with pricing terms and product features. Their contracts take weeks to negotiate rather than months; implementations take months rather than years. Most importantly, they are answering the technology questions that older vendors won’t even ask. “Small, startup companies are the primary drivers of innovation within IT,” says Mark

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Using a little-known tech firm can produce big benefits. But you should do your homework. Here’s what you need to ask them. 1. What is your source of operating capital, and how long can you operate at current revenue levels?

2. Who are your advisers? 3. Do you= have a product in production? 4. Who are your key employees, and how will you retain them? 5. What aspect of your product cannot easily be reproduced by competitors?

6. What percentage of your users are paying customers? 7. What is your product road map, and how often has it changed?

8. How much are you spending on security and compliance? 9. How many recurring contracts do you have (versus month-to-month subscriptions)?

10. What is your exit strategy? —By S.O.

Settle, CIO of $2.2 billion (about Rs 12,100 crore) BMC Software. “A lot of startups are not only solving the newest problems out there,” adds Ben Haines, CIO of Pabst Brewing, “they’re solving them at a faster rate.” But working with startup vendors is complicated. They lack the processes and customer support frameworks of their moreestablished counterparts. Their rollouts and updates require extra oversight. And the CIOs that partner with them have to do a lot of hand-holding throughout the relationship. “It takes time and direct involvement. But if you’re truly getting a unique value proposition that you can’t get elsewhere, you have to be willing to invest in this stuff,” says Tracey Rothenberger, CIO of Ricoh, the $23 billion (about Rs 126,500 crore) maker of copiers, supplies and document-management technology. “We’re not [working with startups] for parts of the business that are small or insignificant. We’re doing this with vendors that will have the ability to truly be transformative for us.”

The Upside of Startups “Startups are a good way to experiment at the edges of your priorities and position your company as an innovator,” says William Hsu, co-founder of startup accelerator MuckerLabs. But a carefully selected startup operating at the core of the business can make an even bigger bang, as Rothenberger found out. “We’re trying to get an advantage for our business by moving into progressive technology much faster,” he says. Nine years ago, Rothenberger needed a mobile solution for Ricoh’s service force— something that would give it access to parts inventory, schematics and dispatched calls in the field. At the time, the market was ill-defined—many players and even more technologies. Rothenberger teamed up with a new vendor that had a handful of employees. “They had some incredibly good technology, and it gave us a good couple of years with that solution before our competitors had it,” Rothenberger explains. REAL CIO WORLD | j a n u a r y 1 5 , 2 0 1 3

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Vendor Management Increased responsiveness and influence over product design are also among the perks of working with a budding vendor. Clorox CIO Ralph Loura works with startups when he’s looking for what he calls “systems of engagement”—those tools that take a new, often social approach to a business problem. Young vendors are noticeably more nimble and responsive to his needs as a customer. When Loura asked one startup partner for integration support for a legacy platform, the company got to work immediately. “In an established vendor, it may take 18 to 24 months to make such a request, have it filtered from the field through product management, have it approved for the product road map, and make it into a release,” says Loura. “This startup vendor was able to accomplish the same in under four months. [It’s] a

much flatter organization and the focus is more on being agile than on product lifecycle management.” Duchscher likes the attentiveness. “When you’re working with one of the behemoths, you might get a quarterly visit or someone asking you at the end of the fiscal year what they can do for you. That drives me crazy,” he says. “With a startup, there’s a much tighter interaction. You know the engineers and the owners, and they’re actively involved in how things are going.” And, of course, the price is right. If you’re an inaugural customer, you may even score freemium rates. “A lot of them don’t know how to price their products. One founder asked me if he was charging too little,” says Haines of Pabst Brewing. “I had to say, ‘Yes. But I like it.’ I want it as cheap as possible. If I’m in early, I get that benefit.”

Rob Duchscher, CIO at Starkey Industries, has been burned by a few start-ups, but he doesn’t like to play it too safe with vendor selection because it leads to a “culture of status quo.”

Where the Startups Are CIOs can find viable startup vendors everywhere. Peer networks. Industry forums. Analyst reports. Google searches. “Any CIO that is trying to develop competitive advantage for his or her business through the use of IT really needs a mechanism for continually scanning the landscape of tech startup companies,” says BMC’s Settle. One of the best avenues for finding newer, niche players is venture capital firms. Many specialize in a specific type of technology— cloud, mobile, collaboration—so it’s relatively easy to identify potential partners. More important than uncovering the newest player in a market, though, is finding the right one. Compellent Technologies actually reached out to Duchscher about its new disk array products as he was researching offerings from traditional providers like IBM and EMC. “They were a small shop, and there was concern here at the top that they might not make it,” says Duchscher, particularly given that this would be a multimillion-dollar investment and not a sideline experiment. Duchscher did what he always does—get inside the company. “I like to go onsite and really get to know them,” he says. They had a solid, intelligent disk array at a time when others didn’t. Funding was robust. The leaders had strong backgrounds. And they were 25 percent cheaper than other options. In many ways, running a background check on a new market entrant is similar to traditional vendor due diligence. “The categories are the same,” says Forrester’s Ross. “But the definitions are different.” Financial viability is always important, for example. But if you judged startups on profitability, you’d rule out 90 percent of them, Ross notes. “A lot of what we do with established solutions is filter. We have a need. We [find] five or six established solutions in that space and try and eliminate choices,” says Loura of Clorox. “This logic needs to be inverted for startups. The question shouldn’t be, ‘Can I filter them out?’ It should be, ‘Can I convince myself that they could close the gaps?’” Those gaps tend to come in three categories: Financial, technical and foundational. CIOs often have certain metrics or guidelines for assessing financial viability. Who is

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Vendor Management funding them? Are more than half of their users paying customers? How much cash flow is there? “I can’t sign up with two cash-strapped guys in a garage,” says Rothenberger. When Haines was looking for a filesharing tool in his previous role as director of architecture of Red Bull North America, he considered using Dropbox but backed out when he realized there would be no enterprise support. Then he found Box. They had well-known backers. They’d brought in some enterprise heavyweights. He hired them at Red Bull and has since deployed their technology at Pabst. The technology check is often more rigorous because “there is relatively little third-party validation out there that [a startup] product can deliver,” says Nick Gaunt, CIO of the Institute for Innovation and Improvement at the UK’s National Health Service (NHS). Rothenberger spends the most time on the technology evaluation. “You may find they have a fantastic concept but it’s not mature enough for your organization,” he says. Big red flags include a system in perpetual beta or a product road map that shifts with the wind. Loura looks for portability. “If a solution requires substantial integration or development and is hard to decommission once deployed, then we’d have a greater concern,” he says. Solid-state disk storage is less risky, for example, because one could easily migrate back to spinning disks. A new BI and analytics tool is a harder sell. “The investment in end user training and data integration would be significant and not easy to port to a different platform,” Loura says. Then there’s the foundation: The business plan, the talent, the leadership. Gaunt of the NHS looks for entrepreneurial veterans with a history of commercial success. “We were thinking about getting involved with a company where the chief technologist was incredibly bright. But he wasn’t a good business person,” says Rothenberger, who ultimately chose not to work with the company. “They had the superior product, but he had a stranglehold on all the decisions.”

Once the Ink is Dry One of the biggest issues for IT leaders who bring in these niche suppliers is integration. “It’s tough,” admits Haines. “You have to make sure your staff is trained in all the different APIs and platforms out there.” Vendor management headaches also increase. “Most aren’t very good at managing their vendors, so governance becomes a huge problem,” says Forrester’s Ross. “You need to parcel the responsibility out to the person who works closely with the niche supplier but also make sure everyone knows how to manage vendors.” Customer service can often be an issue. “Startups don’t have a lot of processes in place, and they haven’t worked with 1,000 customers,” says Hsu of MuckerLabs, who

While the speed of startup rollouts and updates can be a boon, they also require more technical oversight. “We allocate more testing time to the releases,” says Rothenberger. “Smaller vendors have fewer controls, so more issues pop up.” There can also be internal resistance in IT to the startup partnership. “The ultimate paradox in most IT shops is that the staff complains that they spend all their time maintaining legacy technologies and that there’s no innovation going on,” says Settle of BMC. “But when efforts are made to evaluate or prototype new startup products, everyone complains that they already have too much work to do.” CIOs always talk about vendor engagements as partnerships, but that’s often just lip service. When working with

These startups can become big players themselves—not necessarily becoming behemoths, but really owning their space.

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founded BuildPoint, a construction bidding system, at the age of 23. “Support and issue resolution from post-sale to implementation is something you have to work out before the contracts are signed.” Startup employees are often playing multiple roles: Product development, project implementation, customer support. “On the plus side, the startup organization is far less bureaucratic,” says Settle of BMC. “On the negative side, those same technical resources may already be dedicated to support another customer or to get the next product release out the door, and access to those individuals may be walled off altogether.” If you’re a Fortune 500 company used to working with big vendors, you’re accustomed to strong vendor account management. “Smaller players have focused so much on their product that that is something they haven’t developed yet,” Ross says. “The relationship management pieces aren’t there.” The customer has to take the reins and set expectations for communication.

a startup, partnerships are a requirement. “You can’t just make the purchase and go away. It’s not like working with Microsoft or Oracle, where you ultimately get a product that works, with a few bugs here and there,” says Duchscher. With startups, “things are fluid, decisions are made quickly, and you need to stay on top of that.” At Pabst, Haines is working with some very early stage players—a data integration company that hasn’t even entered Round A funding and a performance management provider going into general release in a few months. “It becomes a mini external R&D group for us,” Haines explains. “They’re giving us a lot, and we’re there on the ground level helping them to shape the products.” Ricoh’s Rothenberger has even talked to venture capital firms on behalf of three of his startup partners. “It’s another more intimate way to get engaged. We get into discussions about where they’re going for the next rounds of funding, their last six months of financials, strategies to take the company public or sell,” REAL CIO WORLD | j a n u a r y 1 5 , 2 0 1 3

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Vendor Management Tracey Rothenberger, CIO of Ricoh, says using a wellvetted start-up’s technology in a core area of the business can produce a dramatic competitive advantage.

he says. “Initially, you’re just buying into the technology. But as the relationship evolves, you want to see the company succeed.” But too much guidance from—or customization for—a specific customer can handicap a startup. “My role is not to push them, but to act as mentor,” Rothenberger says. “I’m hiring these guys because their product is unique. If I knew how to build it better than them, I would have done it myself.”

The End Game Startups aren’t startups forever. Loura at Clorox knows a CIO whose entire enterprise is now being run by a major ERP player even though he didn’t buy a single piece of software directly from them. The big ERP vendor had acquired the smaller companies he was working with. It happens. A lot. Loura has seen collaboration tools, systems monitoring 110

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solutions etcetera, snapped up by legacy vendors. “Sometimes it’s business as usual, but often the acquirer will make changes to the prior road map or strategy,” he says. At Pabst, Haines is waiting to see how Microsoft’s acquisition of Yammer works out for him in the long run. “I’m a little nervous,” Haines admits. “I’ve talked to them, and they’ve been open about Yammer remaining separate, which is good.” Contingency plans are key, starting with securing source code escrow and forensic toolkits in the contract. Even the big vendors can discontinue support for their own products. “It’s just as easy for an IBM to make a SKU disappear,” says Haines. At Starkey, that source code and forensic toolkit enabled Duchscher to continue to use the test automation software that was shut down—for a time. “But the life of that product had ended. No more fixes, no more

enhancements,” Duchscher says. “You can live that way for a while, but eventually if the vendor is not moving their product forward, that impacts your ability to move your product forward.” Today, Duchscher is dealing with the aftermath of Compellent’s sale to Dell. “We’re not seeing the level of responsiveness that we saw when it was just Compellent,” he says. “I’m happy for the people of Compellent, but it was not the best move for Starkey. When I had a real problem before, I could pick up the phone and call the president for immediate action. I don’t have Michael Dell’s number.” There’s also some risk in startup success. “These startups can become big players themselves—not necessarily becoming behemoths, but really owning their space,” says Ross of Forrester. “And the vendors can start to take on the characteristics [that CIOs] were trying to avoid in the first place.” Then there are the startup failures. “I’ve been involved in a couple, and they’re always tragic,” says Rothenberger. “It’s never about the technical aspects of the product. Those things can be fixed. It always comes down to the human element—individuals who make poor decisions or don’t communicate well and end up creating a big mess.” Working with startup vendors isn’t for everyone. Joe Fuller once started his own a point-of-sale software company for specialty retailers. His employer, Dominion Enterprises, has invested in a startup accelerator program called Hatch. And Fuller has served as judge for Start Norfolk, startup event and competition in Virginia. Yet as CIO of Dominion Enterprises, he doesn’t purchase any products or services from startups. “We are typically dealing with large vendors for our expensive services and products such as disk storage and Internet connectivity,” Fuller explains. “These are capital-intensive businesses that small startups really can’t compete with.” Fuller wouldn’t rule it out entirely. But, he says, “Most startups...are under-capitalized and they can’t survive any setbacks. As CIO, I can’t afford to go with an innovative company that offers a neat product at a great price if I’m afraid they will go out of business.” CIO Send feedback on this feature to editor@cio.in.

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Essential

technology image by photos.com

A CLOSER LOOK AT Business Intelligence

At these organizations, business intelligence isn't just generating reports—it is answering questions, solving problems, and finding red flags.

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IT's Guiding Light: BI By Mary K. Pratt

| When it comes to making wine, Matt Wood believes cultivating customers is as complex as cultivating grapes. The success of both endeavors depends on many factors, including the tools used to grow the grapes and the business. With that in mind, Wood is nurturing his customer base with the help of one of the most modern tools available: Business intelligence (BI) software. He uses BI to understand who buys his company's wines and to predict which customers might switch to other brands, so he can modify his marketing efforts accordingly. "It's really trying to look at people's behavior and get to the insights through the BI tool. That's where the huge opportunity is," says Wood, estate director of Domaine Chandon and Newton Vineyard in Yountville, California. The basic goal of business intelligence is to turn raw data into information. For many businesses, that means using BI tools to transform data into reports and computerized views of past performance—"rear-view data," as one BI specialist puts it. But as more organizations develop mature BI infrastructures and practices, they're learning to push their BI tools to answer questions they never thought they could ask. And they're moving into predictive analytics, where they can analyze historical data to develop ideas about what will happen in the future, so they can craft better strategies to cope with what's ahead.

Business Intelligence

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"To be able to drill down, to look for patterns that aren't obvious from the start, that's definitely very powerful," says David White, an analyst at research firm Aberdeen Group. That kind of innovation is enabling organizations to respond to challenges more quickly, effectively and efficiently. Wood mines vast amounts of customer data using a system set up by eWinery Solutions, an e-commerce software and services provider. The system, which uses the WebFocus BI platform from Information Builders, can determine whether customers open e-mails sent by the vineyard, whether they buy wine in response to an e-mail or a telemarketer's call, whether they make purchases via the company's website, whether they visit the winery for tastings and tours, and whether they prefer red or white wine. Wood says he's not so much interested in seeing, for example, the number of people who buy via the website or who prefer red wines. It's important to know such details, he says, but the real value that comes from all of that information

'Sample our newest release before everyone else'—then we're building something where we can see what the pattern is for these people moving forward." According to White, such innovation is critical, because organizations must react to market pressures very quickly. Research shows that 65 percent of managers say their decision windows—the time they have to get information and make a decision—are shrinking, says White. In fact, 44 percent of 293 business leaders that Aberdeen surveyed in 2012 reported that, in order to make more effective decisions, they need actionable information within an hour, in near real-time (minutes) or in true real time. They need to quickly access data and interact with it. And that need is driving the push to put BI tools into the hands of business leaders. As a result, the model of self-service analytics is replacing the traditional BI model of IT-managed reporting, White adds. "People have to act faster and faster, so we'll see more real-time or close-to-realtime need for data," says White. "People

As more organizations develop mature BI infrastructures and practices, they're learning to push their BI tools to answer questions they never thought they could ask. is understanding what certain groups of people are likely to do. Right now, he's looking for patterns among customers who drop out of the vineyard's wine club, so he can figure out marketing strategies to keep their business. "I was convinced that if I could understand buying habits and then identify patterns, I could actually predict people's behavior and have proactive marketing campaigns," Wood says. "And if we can proactively market to those people—say to them, 'Come up for lunch, it's on us' or 112

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will look to tap more and more into the operational data as it's created, so the visualization of data will continue—as will the shift to self-service BI."

Helping At-risk Students Barbara Boyd understands the importance of getting more information into the right hands more quickly. Boyd is president of Learning Circle Education Services, a Columbus, Ohio-based non-profit that was part of Nationwide Insurance until it was spun

36%

Of Indian CIOs say they are early adopters of BI and analytics. Source: State of the Indian CIO 2012

off in 2010. She and her team help school districts make better sense of their data. And like Wood, they use WebFocus to do that. Working primarily with the Columbus school district, its 118 schools and 50,000 students, Learning Circle's goal is not only to produce reports, but also to ask questions that educators couldn't answer without BI. Boyd says her team aims to do more than analyze test results. The real innovation, she says, is using BI to identify students who could be headed for trouble based on a collection of indicators that might not raise red flags early enough when observed individually. To do that, Learning Circle created an application that's designed to identify at-risk children by evaluating data related to academic performance, attendance and discipline. "It took time for people to understand how to use data and the power of data, and then it took getting data on an earlier basis," Boyd says. "And now that they see the benefit of seeing data in a different way, they're saying, 'I want to see this or pull in this data set,' so we can [ask], 'What questions do you want to answer now?' "

Fighting Crime and Improving Healthcare In one unusual application of BI tools, Swedish police used QlikView from Qlik Technologies to analyze volumes of reports to find a shooter suspected of multiple murders. Berth Simonsson, an analyst for

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the police department in Skane, Sweden, says that such a project would normally take at least three people three months to complete, but the department was able to do it in minutes using the BI program. "Analysts were able to search through all notifications in less than three minutes to find clues or reports that could be traced to the shooter," Simonsson says, noting that analysts applied the same search process to the police department's event system, which logs notes on every call authorities receive. Dr. Patrick Frias, director of outpatient operations for the cardiology group at Children's Healthcare of Atlanta's Sibley Heart Center, started with a similar approach when his organization adopted QlikView several years ago. "We looked at business intelligence solutions that could get our hands on the data more immediately," he says, explaining that he and his colleagues work with a data analyst to examine data on the tens of thousands of patients the center treats annually. Frias, a pediatric cardiologist, acknowledges that using BI tools to analyze administrative data is a good way to help the center run more efficiently. But he notes that the real value of BI is that it allows doctors to examine clinical data and gather information that can dramatically improve healthcare delivery. "We're trying to learn more about the kids' history, the families' history, and mine the data to find that [key indicator]," he says. "It might be a few questions, it might be this on the EKG, or a family history of sudden death, that points to that child at risk." CIO

BI Pumps Up Sales analytics | The sales team at HealthHelp had always made one thing clear—the faster they could respond to RFPs from potential clients, the more sales they could close. As a specialty benefits management provider, HealthHelp works with health insurance companies to help their network physicians find the best tests and treatments for patients. To win new business, HealthHelp demonstrates how it might improve outcomes by running a variety of analyses on a health insurer's data about its claims, providers and members. Running analyses was once a cumbersome process requiring weeks of back-and-forth between the salesperson and HealthHelp's business analysts, who wrote custom scripts to pull information from various databases. Errors occurred. And by the time it was done, the potential customer may have lost interest—or faith—in the company. HealthHelp CIO Steve Spar had previously implemented a data warehouse, migrating the company's reporting metrics to SQL Server Analysis Services (SSAS). But that still required analysts with knowledge of both SSAS and benefits management, which is rare. To cut out the middle man, Spar rolled out Tableau Software, an analytics tool he says is as easy for his company's knowledge workers to use as Excel. Thanks to real-time visual analytics, members of the sales team can, without help from business analysts, run a variety of analyses on a potential customer's data and include the results in their RFP responses. Spar says the faster, self-service analytics approach has increased the sales team's "win rate." The team can also analyze customer data to identify opportunities to cut costs, improve performance, or implement new tests and treatments in areas such as cancer or emergency medicine. "All those things contribute to our ability to sell additional new products," says Spar, noting that the new system has contributed to HealthHelp's 85 percent revenue growth over the past two years. — Stephanie Overby

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* By Lauren Brousell

There are fewer than 550 North Atlantic right whales left on earth, and being hit by a ship is their number one cause of death. To protect the remaining animals, the National Oceanic and Atmospheric Administration in the US (NOAA) developed Whale Alert, a free app designed to be used in the Stellwagen Bank National Marine Sanctuary. Available on iPads and iPhones, the app relays real-time information from acoustic buoys and other sources that pick up the whales’ sounds and report their locations via satellite. It includes a map that lights up with bright yellow icons when a whale was heard nearby in the last 24 hours, and mariners navigating shipping lanes can use it to get suggested travel speeds and find what areas to avoid. David Wiley, research co-ordinator and scientist at NOAA, says he’d like to add more details and eventually develop similar apps for other endangered animals. “ We’re hoping to make it more important for mariners, and that when people see its popularity, more conservation apps will be produced.

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Right of Whale



CIO Januray 15 2013 Issue