IT Is the Power of Technology : Deepak Puri

Interview Questions

Full Interview with Deepak Puri

Deepak Puri:

There was a time when the only source of information was Encyclopedia Britannica. Today, if I require information, I just hook onto the Internet. IT is about the power of information, which we use in enterprise everyday. We export thousands of SKUs (stock-keeping units), apart from which we have customers all over the world.

Don't forget, ours is a business in which people who are averse to risk can't survive. We don't get orders for six months in advance - we get monthly orders. Further, this is a nasty market which can ruin my reputation anytime. You buy a Moser Baer product and, say, it doesn't work or if data gets lost, you will tell the entire community around you not to buy the product.

Moser Baer sells optical media products all over the world, and still keeps track of them instantaneously. The customer sends us orders using the information superhighway and expects to know in 24 hours what the status of his order is. It's all been made possible by our IT deployments. Because our customers' businesses are largely dependent on our production and output, the transparency and speedy exchange of information is vital. And that is provided by the innovative use of IT.

Deepak Puri:

This is an interesting feature of any technology manufacturing industry. The speed at which the technology space is evolving globally is both fascinating and challenging. It's fascinating because technology is making life simpler for consumers, while the challenge lies in giving the technology to consumers at the right price point. As the lowest-cost producer of optical media in the world today, a large part of this advantage can be attributed to information technology or modern-day electronics embedded in our manufacturing processes and R&D.

Moser Baer has developed a unique software for logistics and production planning, which sits on the ERP, and also talks to the entire supply chain on a real time basis - wherever you may be in the world. We pride ourselves in having over 99 percent on-time deliveries to our customers. This would not have been possible without strong systems and our technology backbone. I do agree that the usable technology is created by excellent minds, and feel that it is most practical for us to have the right people in the right place. I personally take care of this right blend in this company.

Deepak Puri:

This is a constantly evolving exercise. Some of the important business goals of an organization would be:

- Customer delight
- Increasing profitability

- Employee engagement

A robust technology infrastructure can provide critical information to people to assist them in taking right actions at the right time to meet the business goals. At Moser Baer, we have been able to align this to a large extent, borne out by the fact that we have not lost a single customer since our inception. This has been facilitated by a strong information technology system enabling seamless working of different functions towards strong customer orientation.

 

Deepak Puri:

We realized the importance of IT to business a long time ago, and we have ensured that the IT function is well aligned with other business functions. This is the reason our group CFO takes the responsibility of the CIO for the group. I agree that the technology function should be kept separate from that of finance. But if you have a finance person who has enough knowledge of systems, that would be the perfect example of attaining the ITbusiness alignment. Most of IT is targeted towards accounts and general finance, be it HR or payroll. Someone who has a blend of finance and technology would easily understand what kind of systems is required to achieve the desired results.

On the other hand, a pure IT person - however strong his knowledge base may be - wouldn't really be able to achieve the cost effectiveness if he has little or no knowledge of finance. As a result, I would say the CIO has to have a blend of the two areas mentioned above. The CIO has to think through business and has to have decent knowledge of how crucial it is to have effective control over inflow and outflow of money used for business.

Deepak Puri:

Our internal cost sheets are precise to the fourth decimal place, which signifies our extent of focus on costs and efficiencies. This is again possible only if we have a strong IT backbone that provides management with a real-time dashboard to take critical decisions at the right time. Today, if my supply chain is not connected to me on a 24/7 basis, I can't think of doing business at this pace. When I say that we supply products to over 80 countries, it's not physically possible to go to each location and conduct buying and selling. But yes, it's possible by using IT, and that's where the bottom lines are under control and efficiency is at an all time high.

Deepak Puri:

We compete in a market that is one of the fastest evolving marketplaces, and we compete with the best. Globally, we supply products to top-tier technology brands. To achieve superlative results, there is a need for a strong technology backbone running throughout the company and one that integrates with customers - both buyers and suppliers.

Today, Moser Baer has complete automation from order placement to production planning, efficiency mapping and quality control, packaging and logistics management, and finally product delivery. Such automation becomes more complicated when you talk about 3 billion discs and 200 product variants supplied to all major technology brands across 81 countries with very tight delivery schedules. Can we even think of this kind of movement without heavily embedded information technology in our systems and the way we operate?

As I said earlier, IT has brought transparency to the whole supply chain. On the very next day of placing an order, the customer has knowledge of the production cycle and post-production activity, including the dispatch. It is no less than tracking a parcel of DHL or Blue Dart. That's what we need from IT and that's what we are getting.

Deepak Puri:

In any R&D-driven manufacturing organization, IT is a key facilitator that binds the entire product development cycle. One example specific to us is the utilization of high-end hardware to support the design of groove geometry for manufacturing better and efficient optical storage media discs. Until now Moser Baer was just manufacturing optical media. Tomorrow when we have four more products to launch, nothing else but information technology will enable us to do so.

Deepak Puri:

It is impossible to efficiently run and scale up any business without technology. Today, IT is a DNA around which successful transnational corporations are being created. A company's entire business model can be dramatically altered by the manner in which it leverages information technology. One of the critical differentiators between an average company and a good company is the quality of systems and IT infrastructure. IT can significantly add value to an organization. For instance, cost effectiveness is a given for any IT deployment.

Deepak Puri:

One of the key performance indicators for a CIO could be the level of cost savings enabled by IT over a period of time. IT can also increase capacity effectiveness and efficiency. Another indicator on the intangible side for the CIO is how IT can improve the capacity of each individual in the organization and, hence, its overall productivity. I think a CIO is a critical link between the company and its progress. For me, the most important indicator of successful technology deployment is about getting information on time. If my CIO is capable of delivering a platform that enables each Moser Baer employee to access the right information at the time of requirement, I think he has proved his competency.

A CIO is just like an excellent cook in a kitchen who is catering to the demands of different types of users who have different tastes and need different dishes.

 

Deepak Puri:

It's a timely question. Even before coming for this interview, I spent 5-10 minutes with my CIO. I wanted to know whether I really know the role of a CIO of a company before commenting upon it. We just want to use IT whenever we need it. We are not at all concerned about what goes in the backend to create that kind of information superhighway. Today, I often have video-conferences with my business partners. Without having a good IT leader and his team in place, it would not have been possible to talk with and see the people sitting thousands of miles away.

The success of an enterprise reflects the efficiency of its IT systems and, hence, its operations. And a CIO acts as the facilitator for efficient operations and growth of an enterprise. I believe both go hand in hand. CIO