CIO & LEADER-Issue-01-April 2018 (1)

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Cover Story According to Gartner's 2014 agenda, The IT core — infrastructure, applications, information and sourcing — was built for the IT past. CIOs report much of their new technology spending going towards improving core systems and capabilities and needed renovations to ensure fit for purpose and being “digital ready” include moving to a more loosely coupled “postmodern-ERP” paradigm, deploying public and private clouds, creating the information architecture and capabilities to exploit big data, and augmenting conventional sourcing with more innovation, including sourcing from, and partnering with, smaller and less mature enterprises. By "partnering with, smaller and less mature enterprises", Gartner was referring to SMB/start-up engagement and agile development as a solution to addressing the dual need to simultaneously renovate the core of IT systems and services, and exploit new technology options. A few years ago when we spoke to enterprise CIOs in India they didn't seem kicked about the benefits of working with technology start-ups. One of For a startup, working on a technology problem is one thing, but creating a business case is another. Kamal Karnatak Group CIO, RJ Corp. the main reasons for this reluctance to give B2B focused start-ups a chance was the lack of trust in the start-ups' ability to sustain themselves. A success or sustainability of a start-up or a unicorn was but a candle in a wind for an enterprise CIO. Even if the start-up could prove the viability of its product, the enterprise CIO was unable to prove it to business. A lot of enterprises conducted pilots with start-ups (and still do) but wouldn't talk about it. Some of these CIOs belonged to innovation-centric organizations where they believe that they can learn a great deal from start-ups, and inculcate or maintain a culture of openness and change within. These enterprises and their CIOs were the early adopters of this trend, and the ones who built a framework early on that allowed them to work with start-ups in the best possible way. However, these organizations kept this 'relationship' a low key affair until it became fashionable to talk about the 'association'- and until the digital transformation wave hit them hard. The folks at Bajaj Auto were way ahead of the curve. #When an enterprise can work with a start-up and not worry about its sustainability or financials Organization: Bajaj Auto Start-ups: Universal Robots, GladMinds, Altisource Outcome: Achieve automation, and efficiency improvement A start-up may not be able to create a legible business case. That's where enterprises can play a huge role A 72-year old flagship brand of Indian conglomerate Bajaj Group, Baja Auto is one of largest two-wheeler and three-wheeler manufacturer in the world. Despite being one of the oldest family run businesses in India, innovation has always been part of the company's DNA. The company's engagement with start-ups began in 2010 when they realized the need to automate and digitize their assembly lines. The company deployed cobots or collaborative robots, a patented technology offered by Universal Robots, a Danish manufacturer that has just launched UR5, a six-jointed articulated arm robot and was expanding its base in Europe, and didn't launch business in India until 2016. According to Pradeep David, CTO at Universal Robots, Bajaj Auto saw a gradual rise in the productivity and efficiency in their production. It also increased the productivity of their employees along with their product quality. As a result, employees could easily program and set up these low cost robotic arms with 3D visualization. The actions of the robot are controlled and programed by a touch pad or by simply moving the robot arm to show the desired path of movement. The three-wheeler manufacturer has deployed over 150 cobots since 2010 and is now among the largest motorcycle manufacturer in the world. They are of the view that the added benefits of the cobots are easy use, very low annual maintenance and higher energy efficiency. Vikas Sawhney, General Manager Engineering (Robotics and Automa- 14 CIO&LEADER | April 2018
Cover Story Sometimes you don't see the problem till an outsider comes and shows you a better way of doing it. Rajeev Jorapur VP-MIS, Bajaj Auto tion) at Bajaj Auto, who oversaw the deployment, said of the implementation that they chose Universal Robots primarily due to the collaborative nature of the robots. "The key benefits of Universal Robots’ products such as their compactness, low pay back period, flexibility, light weight, costeffectiveness, accuracy and their safety, is what ultimately convinced Bajaj Auto about the suitability of Universal Robots for its standardized offerings," said Sawhney. Universal Robots wasn't the only start-up that Bajaj Auto worked with. According to Rajeev Jorapur, VP- MIS at Bajaj Auto, start-ups offer an exciting model of partnership that is very difficult to get from most other partners. Their focus is on the task and to make it happen. They are driven by passion and are more entrepreneurial in nature. "Most start-ups are sharply focused and they don't have width that you expect with more established companies. Thus, you must carefully choose them with the purpose you have in mind. We won't be worried about their sustainability or how strong they are financially. We believe we would be able to handle that part," said Jorapur. The automaker was looking to simply the manual process of sending the service coupons to Bajaj Auto every time the customer visited the dealer for vehicle servicing. Jorapur said that it was crucial for the manufacturer to carefully record the timeframe within which the vehicle was brought in for servicing. In the auto world, customers must get their new vehicles serviced within a month of purchase in order to ensure that the product has a long run. There was no way of knowing whether the customer or the dealer followed the process completely. With this resolve in mind, Bajaj Auto went through careful assessment and selected GladMinds Technologies, a cloud based start-up providing CRM services. After the deployment of the solution, the paper-based coupon system was replaced by a unique digital token system and was given to the customer every time he/she brought his/her new vehicle for servicing at the dealer's shop. Jorapur said that sometimes you don't see the problem till an outsider comes and shows you a better way of doing it. In 2015, the automaker partnered with an IoT start-up. At the time, a lot of manufacturing processes at Bajaj Auto were performed by external vendors at the company’s assembly plants. A vendor would communicate the production details at a pre-decided frequency but if machines could tell how they were performing without human interaction, not only would the manual effort at collecting information would go away and info would come directly from machines and would be more timely and reliable than somebody communicating it. “With this hypothesis, we approached the start-up, who helped us eliminate the manual channels and helped us plan our maintenance in a more robust manner,” said Jorapur. In the last four years, the company has evaluated over 50 start-ups, performed POC on 10 start-ups and are closely working with five start-ups on fully operational projects. “Most of our time is consumed in conducting background checks, financial analysis and performing due diligence – that is where most of our effort and energy is spent,” said Jorapur. #When an enterprise and a start-up can work together on resolving specific business problems Organization: ONGC Start-ups: Undisclosed Outcome: Inculcate innovation in business and eliminate critical business problems Some start-ups are only interested in increasing their own evaluation. You must gauge the motive of such organizations early on April 2018 | CIO&LEADER 15
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Page 10 and 11: COLUMN By Mohua Sengupta Is Hashgra
Page 12 and 13: COLUMN By Shyamanuja Das Cambridge
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Page 32 and 33: Insight Bot Seriously! Virtual assi
Page 34 and 35: Insight And You Thought Security Is
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CIO & LEADER-Issue-01-April 2018 (1)