The need gets the nod

PUNE, INDIA: Be it budgets, timing, scale or vendors, CIO decisions are based on need more than any other consideration feels T G Dhandapani, CIO at TVS Motor Company as he shares some insights from his role at the automobile giant which is the third largest two-wheeler manufacturer in India and among the top ten in the world. Among some major IT implementations; TVS has laid down an e business system, ERP systems by SAP, a Dealer Management System (DMS), an e-sales portal site and information exchange apart from an e-sales portal site and information exchange besides having standardized best practices in dealerships and CRM. Here's more on how IT is accelerating the growth.

CMN: What part of IT implementations plays a more prominent role -- software or hardware or networking? Why?

T G Dhandapani: It depends on the context. If the project is on application then the software gets more importance and in case of interlinking of plants and offices networking gets prominence. In my opinion all these three areas need to be given equal prominence as the strength of the chain is in its weakest link.

CMN: Do you feel that enterprises are spending more on hardware than software? Elaborate.

T.G.D: Any spending be it IT or other wise is based on need. Software licenses are sold based on number of users and scalable. Similarly investment in hardware can also be scaled up based on usage and performance.

CMN: Do you feel that the amount allocated for IT is sufficient? If yes, why? If not, why not? How much should you be spending?

T.G.D: Any investment in IT is business driven and adequate funds are provided based on need.

CMN: Has the cost of the IT hardware/software been constant or has it been growing? Elaborate on specific hardware / software.

T.G.D: I could see perceivable reduction in cost of hardware or software per se, thanks to stronger rupee against Dollar and Euros.

CMN: Since the rupee is growing stronger against the dollar, don't you think it is the right time to purchase IT products (both hardware/software)?

T.G.D: If the IT project is justified at appropriate cost, one should go-in for investment. Considering level of obsolescence, it is not wise to invest in the absence of need. Buying IT hardware and software is not like buying gold or FE or shares or metals for hedging.

CMN: Does your enterprise consider spending money on the latest IT implementations as a burden on your expenditure or do you feel it is an investment and mandatory for any enterprise? Elaborate.

T.G.D: Of course people tend to be conservative on absorbing new technology in the absence of customer experience. If the need is strong, we try out new technology and gain experience.

CMN: What are the major implementations made over the years? Please specify.

T.G.D: We have digitized new product development process and enabled collaboration with business partners. We have also digitized lean manufacturing process and TPM in our ERP recently.

CMN: Mention the critical usage of any three of your major IT implementations over the last fiscal and define their benefits?

T.G.D: ERP helps in integrating all business functions, used as transaction processing.

PLM (Product Life Cycle management) helps in digitizing new product development process and electronic collaboration with business partners. DMS - Dealer management system is an ERP for our dealers integrated to Company ERP for exchange for information and transacting business.

CMN: Do you expect your IT staff to grow? Do you feel you are adequately staffed?

T.G.D: There is always thirst for demand of more staff.

CMN: Do you outsource a portion of your IT project? What percentage?

T.G.D: Hardware facility management and DMS customer support have been outsourced.

CMN: What would CIOs like you wish to hear from vendors during the next fiscal?

T.G.D: New technology and success stories.

CMN: If you were to name five top technologies that you would consider using, what would those be?

T.G.D: RFID and collaboration tools.

CMN: If you were to name top five vendors in various IT areas, who would those be?

T.G.D: HP, Microsoft, SAP.