Interview Questions

Full Interview with Dilip Oommen

Dilip Oommen:

There isn't an iota of doubt that we're a global company. We are growing at a very fast pace and are acquiring steel companies around the world. And as we have expanded, IT has helped us greatly. Our wide area network and virtual private network - running across all our locations, even the global ones - have helped our staff access vital data resources, business applications and productivity tools in a secure manner, 24 by 7. The benefits don't stop there. The speed at which we conduct business has gone up tremendously. Interactions among employees and our responsiveness to business partners have also increased considerably thanks to IT. To fulfill the company's dream, we started with a long-term program to upgrade our ERP. We have also implemented planning solutions across the steel business group. Phase one of this IT-enablement is complete and a new version of SAP has been implemented in Essar Steel and the same template is being rolled out in other companies across the globe.

The upgraded ERP has helped us achieve business processes integration across IT solutions and has enabled reliable operations reporting. We have also completed the implementation of i2 solutions. There are several benefits that are being realized as the solutions stabilize. For instance, the quality of data and user expertise is improving. By implementing i2, we have achieved end-to-end planning from demand forecasting to customer delivery using a single platform. We have also optimized our resources for profit maximization and customer satisfaction. Put together, both help us increase customer responsiveness because we can effectively track orders, make active changes in production to meet rush orders or small quantity orders, and have better control on credit and price realization.

Dilip Oommen:

There are three aspects to this question. First, Essar Steel creates 'made-to-order' products. In that respect, IT has helped us greatly get an end-to-end visibility of the status of customer orders. It has also helps us control credit effectively and track every batch or unit of material. Second, by implementing i2 solutions we have got excellent tools to optimize capacity utilization, thus allowing us to manufacture in a more profitable manner. It also gives us complete visibility and control through the manufacturing process.  Finally, our information systems are now being leveraged to crunch the cycle time from steel melting to cash realization.

Dilip Oommen:

Distribution and logistics are most critical for any manufacturer. Based on the intelligence we gathered through our earlier experiences, IT was given a mandate to provide complete visibility of finished goods from factory to a customer's premises. In its first phase, this challenge has been accomplished successfully. These systems are now being improved with planning and optimization solutions, and other solutions that will reduce vehicle turnaround time. A material tracking system is also being evaluated to further reduce inventory time.

Dilip Oommen:

As a company, we have always believed in leveraging the latest technologies, developing internal competencies and getting the best value out of our investments. Essar was one of the first companies in India to embrace SAP, leverage auction technologies using the Internet, develop a lively Intranet, launch several master data synchronization/ unification initiatives, introduce shared services, etcetera. Our investments in IT have always matched business requirements. And in several areas, business strategies have been IT driven.

Dilip Oommen:

Since we are a growing enterprise and need quick action and turnaround time, the expectations from IT and our technology leaders are very high. One version of the truth was a priority (by way of unified, actionable, reliable reporting). So was deploying resources in value-added areas through automation and productivity improvements. Another important business priority was business process orientation, which can help reduce cycle times and cross-functional gaps.

 

Dilip Oommen:

When it comes to amalgamating the disparate processes of two distinct entities, IT is probably the only savior. It has certainly got an important role to play in the merging of processes, systems and even cultures. People and systems across the globe can talk the same language on SAP and i2, use identical system template, share data across geographies for effective procurement, improve sales realizations, reduce inventory, better customer service, and share services to reduce the cost of operations. We also want to leverage best practices from each geography, share knowledge using the latest technology and develop domain competencies internally. Apart from this, shared and optimized IT assets have definitely helped us leverage time zone differences and keep working round-the-clock.

Dilip Oommen:

IT is becoming an integral part of every business activity from accounting toproduction to statutory records. It's all about how we want to conduct and control business and business processes efficiently. The success of IT initiatives and the delivery of business benefits is becoming lot more critical to stay competitive. It is essential to have CIOs who understand and communicate the business effectively. They are taking role of change managers and catalyst for business transformation.

Dilip Oommen:

All investments should have tangible and intangible benefits. That's our business philosophy. I agree that some IT costs are part of running the business and therefore, can't be directly related to ROI. Having said that, effective steps are being taken at Essar to track tangible business benefits, effective ROI forecasting and make the CEO/CFO/ CIO responsible for tracking and delivering planned tangible business benefits.

 

Dilip Oommen:

In all new initiatives, IT initiatives are planned with Greenfield/Brownfield projects.Plus, IT has a significant role in the integration of acquired entities. We endeavor to ensure that systems talk to each other and every function should leverage technology to their benefit. It's not just the function of IT to implement projects and rollout new initiatives; but it is for individual business users to leverage IT and benefit from it. That is the recipe to stay ahead in the marketplace.