When Ashish Chauhan assumed responsibility as Group CIO of Reliance Industries, he faced a monolithic challenge—to create a common framework for IT implementation for the conglomerate. India’s largest private sector company has diverse businesses such as manufacturing, petrochemicals, refining, oil and gas, gas pipeline, life sciences, consumer retail, urban infrastructure, etc. Bringing all these businesses on a common IT platform was no easy task. Chauhan’s in-depth understanding of the business and his rich industry experience helped him immensely. During his career he has worked on several complex projects that have directly impacted the business.
Chauhan has worn different hats during his career. At one stage he was setting up and running a satellite communications network for the National Stock Exchange (NSE). He was also involved in setting up the Financial Derivatives markets for India. There was a time when he was the Industrial Finance Officer at IDBI. He also headed Corporate Communications for the Reliance Group, and was once the CIO of Reliance Infocomm (now Reliance Communications).
He believes the modern day CIO has to be a business leader first and then an IT manager. That’s because the CIO’s role has evolved from the IT technical function to become more of a strategic and business role, he says. Elaborating further, he suggests that a CIO should be intricately involved in activities ranging from annual business reviews and strategic planning to takeovers and mergers/de-mergers. “In addition to IT enabling strategic objectives set up by the management, the CIO role also adds another dimension of using IT itself as a competitive strategic tool,” adds Chauhan.
When asked if he considers himself a catalyst in the business process, Chauhan says the role varies. “Depending on the situation, the CIO may at times act as a catalyst in the business process, but in other instances play a more central role or just act as an observer,” he says.
Measuring IT effectiveness
Under Chauhan’s leadership the Reliance Group implemented one of the largest SAP implementations in India. Besides, there were hundreds of other IT applications deployed in the Group companies. So how did Chauhan and his team go about measuring the effectiveness of IT after each project?
Chauhan says there are several ways to measure IT effectiveness. “During recessionary periods, the focus is more on cost effectiveness. During boom time, the focus is more on attaining maximum automation and MIS, although both objectives are not contrary,” he adds.
It is really about convincing management about the benefits that IT will bring. He feels that the task is not too difficult since most management teams are aware and are appreciative of the capabilities of IT. However, some CIOs may not be trained in the approach, and may find the task difficult.
How IT can change India
There’s no doubt that technology can play a major role in the development of our country, whether for reducing poverty, eliminating corruption, improving healthcare and education, or strengthening governance.
Take communications for instance. It brings government services to the masses at an affordable price.
Chauhan cites the example of Reliance Infocomm introducing mobile phones for a down payment of Rs 500 with calls at 40 paise per minute. He believes this created a mobile revolution in India within a year.
He says IT facilitates the distribution of information and decision making, yet it also centralizes both aspects. In that sense, it can be used to meet the Government’s objectives relating to the distribution of products, services, benefits, and information—to every individual in society with ease, yet keeping tabs on leakage of information.
Says Chauhan, “IT has the potential to make India a truly participative democracy, and to provide Government services to all Indians in a transparent, fair, and efficient manner.”
He says there are other ways to use IT, as demonstrated by the Chinese government in filtering undesired content from reaching the masses. “In essence, the agenda would depend on the overall agenda of the Government. IT will become a facilitator in the process,” adds Chauhan.