Big Data. Big Decisions
InformationWeek
Special Coverage Series

Commentary

Rob Preston

Rob Preston

VP & Editor in Chief, InformationWeek

When Incremental IT Change Won't Cut It

For Indian pharma company Cipla and its new CIO, IT transformation is all or nothing.

No business technology buzzword gets worn out quite like "transformation," but there's no other way to describe what Indian pharmaceutical company Cipla is embarking on.

The 77-year-old company, publicly traded but family controlled, is one of the world's largest generic drug makers, with a presence in more than 170 countries (half its revenue comes from India). But until six months ago, it didn't have a CIO and was the poster child for shadow IT. Each company department negotiated with tech vendors on its own, deployed its own systems, and then looped in the IT department -- which consisted of only 17 core internal people, serving a company with 20,000 employees.

More Insights

Webcasts

More >>

White Papers

More >>

Reports

More >>

Enter Arun Gupta, whom Cipla recruited earlier this year from retailer Shoppers Stop to bring discipline and vision to the company's IT. I caught up with the soft-spoken Gupta earlier this month at Interop Mumbai, where he put his IT transformation efforts into the context of a broader business restructuring underway at Cipla, which has also brought in new chiefs of HR, supply chain, international marketing, strategy, legal, and other functions over the past half year.

Early on, in talking with colleagues and employees about their views of the company's IT, Gupta says he heard three main complaints: IT doesn't deliver what we need; we can't get the information we need when we need it; and we have too many systems that don't interoperate.

It's not for lack of investment. Cipla spends about 1% of its $1.4 billion in annual revenue on IT, and it's "not shy about investing in people, processes and manufacturing facilities," Gupta says. The problem was lack of coordination and oversight of the company's myriad IT vendors and systems.

[ A new InformationWeek survey says IT has reason to worry. See Business Users Satisfied With IT? Think Again. ]

Gupta's first major step was to consolidate Cipla's six data centers to a single collocated one and revamp its network around a mix of multiprotocol label switching (MPLS) and metro Ethernet links. The company's ongoing application rationalization is a "bit more complex," he says. The plan is to reduce more than 600 database servers to 100 and reduce the company's scores of ERP, CRM, HR, document management, laboratory information management and other pharma-specific apps to about 15 total. Gupta says he's also fixing Cipla's "broken" implementations of Pilgrim (quality assurance and compliance) and IBM Cognos (business intelligence) software.

Global CIO
Global CIOs: A Site Just For You
Visit InformationWeek's Global CIO -- our online community and information resource for CIOs operating in the global economy.

Looking to make a difference on the frontlines, he's focusing on Cipla's medical reps: the employees who sell the company's products to doctors. Already, Cipla is one of the few pharma companies that doesn't pay its reps based on sales, he says, and it wants to enhance its reps' engagement with doctors with a new off-the-shelf software tool that lets them share information on clinical trials and medical studies. The goal is to increase the average time a rep spends with a doctor from one minute to five, a small but significant increase. Gupta estimates that the new tool also helps reps save as much as three hours a day on planning and reporting activities: accessing customer data, tracking sales activity and filing expense reports.

Cipla plans to replace the 8,000 laptops its reps use with 10,000 Windows 8 tablets. It will pilot the tablets with about 200 reps over the next few months before rolling out the devices, from multiple OEMs, next year.

Gupta is also trying to get his arms around Cipla's sprawling supply chain of distributors and resellers to improve on-time delivery, which he estimates was in the low teens when he took the job. Cipla's starting with process improvements, adopting theory of constraints methodologies before turning to technology.

Next up is a big bang SAP ERP implementation -- starting with financial accounting, sales and distribution, production planning and materials management, and purchase and order management -- to replace 40-plus custom systems. "Every process will change," Gupta says. "There will be disruption from day one." The rollout is due to start in January and finish by 2015.

Meantime, Gupta is building up Cipla's in-house IT capabilities. A goal over the next 12 months is to add 35 IT specialists beyond those 17 in the core IT group. For example, a SAP lead will join the company next month and hire his own team; same for a chief information security officer Gupta is recruiting. In the process, Cipla will gradually wean itself off its dependence on IT vendors, integrators and consultants -- much like CIO Randy Mott is doing at General Motors under his own recently launched IT "transformation" effort, though that's on a much larger scale.

Gupta, like Mott, realizes he doesn't have the luxury of making incremental changes. He figures Cipla is 10 to 15 years behind others when it comes to IT best practices, and all Cipla executives are under pressure to accelerate company growth to the 30% to 35% range.

In the past, Cipla was averse to doing such a massive ERP implementation, for instance, "but now there's no choice" Gupta says. "If we don't do it, it will start impacting the business."



Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

BYTE encourages readers to engage in spirited, healthy debate, including taking us to task. However, BYTE moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. BYTE further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.

Follow InformationWeek

By The Numbers

What Are Your Primary Concerns About Using Big Data Software?

Base: 417 respondents at organizations using or planning to deploy data analytics, BI or statistical analysis software
Data: InformationWeek 2013 Analytics, Business Intelligence and Information Management Survey of 541 business technology professionals, October 2012

What Do You Think?

What's your attitude about SQL analysis on top of Hadoop?
We want fast, standard SQL analysis capabilities on Hadoop ASAP
Hadoop is for unstructured data; SQL is for relational databases
We'll give SQL on Hadoop a try, but relational DBs will remain the mainstay
Given strong SQL support on Hadoop, we'd nix the data warehouse
We're not interested in Hadoop
No opinion



Related Content

From Our Sponsor

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Business leaders often need a visual snapshot of data to quickly grasp and use it. This paper identifies five challenges in presenting data and how visual analytics can resolve them. Solutions are suggested to overcome the challenges of: speed, data clarity, data quality, displaying meaningful results, and dealing with outliers.

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Today's competitive advantage requires a deeper understanding of your business, your market and your customers. As an IT executive, you can drive that knowledge transformation. In this white paper, learn how to make decisions as a strategic business leader and three steps to begin an analytics initiative within your enterprise.

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

High-performance data visualization turns sophisticated analyses into meaningful graphics, leading to faster and smarter decision making. In this white paper, learn how visual analytics can transform big data, with additional features such as real-time functionality, mobile compatibility, robust applications for technical groups and accessibility for nontechnical users.

Big Data: Lessons from the Leaders

Big Data: Lessons from the Leaders

Financial performance, competitive advantage, operational efficiency, strategic decision making - every business goal can extract value from big data, and the time for doubt or inaction has long passed. In this Economist Intelligence Unit report, in-depth interviews with data pioneers reveal the link between the effective use of big data and the bottom line among other results.

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Which came first, the data or the decision? This white paper makes the case for having a decision in mind, then tailoring big data's volume, variety and velocity to achieve business results such as overcoming customer dissatisfaction or creating well-informed strategies in real time.

Informationweek Reports

Research: The Big Data Management Challenge

Research: The Big Data Management Challenge

The challenge of big data is real, but most organizations don't differentiate 'big data' from traditional data, and nearly 90% of respondents to our survey use conventional databases as the primary means of handling data. We'll help you understand what constitutes big data (it's not just size) and the numerous management challenges it poses.