Does IT help with product innovation?

For product innovation, customer connect is very important. We have an initiative that we are currently deploying, which tracks various customer segments by mapping the use of our vehicles across them. We identify various value drivers and capture it on a Data Management Service (DMS). We want to ensure that this data is part of the value delivery process. It's a fairly ambitious project but right now we have completed the first module of the DMS rollout. Eventually, it will morph into a tool for marketing to assess our value delivery.

Ashok Leyland's unit in India is a model of energy-efficiency. How did the CIO contribute?

We have a fairly elaborate process. Most of the manufacturing units have installed networking units for energy meters with an automated system to track and monitor energy consumption. The result is that data is delivered at the shop floor and energy monitoring is interwoven into shop management practices. This is only possible because of instantaneous information.

Do tech investments at Ashok Leyland need to prove ROI?

Obviously, every investment has to have ROI. Before we embark on major initiatives like CRM (customer relationship management) or PLM (product lifecycle management), we assess these investments and forecast their benefits. But I would like to point out that there are quite a few initiatives that -- although are subject to ROI assessment today -- become mandatory later. For example, today, I don't think anyone can even question whether ERP should be assessed. We don't look at accounting and finance from an ROI perspective. These are the foundations of business. This is part of an evolution, so what was subject to an ROI test 10 years ago is now a pre-condition for any business strategy.

How does your CIO reinforce your market strategy? Or product development?

Broadly, there are three roles that our CIO performs. One is to be integral to the process of integration development. For example, take product development. He is so closely involved in the PLM implementation that I can't think of the product development function being carried out without his involvement. He is pretty much a part of that kind of functional process improvement. In the same vein, there's also what we call customer connect -- the CRM. It's not your standard CRM package. It's a tailor-made program and it is another project where the CIO is involved.

Another role the CIO plays is bringing industry-specific IT innovations to the organization's notice. He is like a window; a source through which knowledge comes into the organization. Of course, he is not necessarily the only person to introduce new ideas, but the CIO has a big role here.

The third function the CIO serves is providing and managing our huge IT infrastructure. We are hugely dependent on the entire IT infrastructure. It's a truism that you only remember the IT team when there's a 10-minute connectivity problem. The fact that our CIO is running our huge infrastructure without breakdowns -- and making sure that IT isn't only noticed by its failures -- is, I think, the biggest challenge that he meets successfully.

What is ADES and how does it complement your capabilities?

ADES (Ashley Design and Engineering Services) is a testing and engineering outfit focused on the automotive side. It's a part of Ashok Leyland but serves third parties also. Ashok Leyland has its own dedicated product development and ADES is a separate outfit which takes work from outside. We have developed some critical competencies in ADES and when Ashok Leyland requires those critical competencies, we go to ADES.

Ashok Leyland is a leader in defence vehicles. How important is IT to this product line?

We have a lot of new product development related to the defence business. One important part of defence is developing a fairly large number of variants and doing it quickly. Today, we have a large number of design, testing and validation tools, which are all IT-based. This means that we can simulate a lot of testing. I'd like to think our product development is pretty contemporary in terms of simulation -- particularly with defence vehicles because quite often we have to predict behavior.

Where does the Indian auto industry rank against its global peers?

In the last 10 years, there has been tremendous growth in India's auto industry and it has been pretty much exposed to all contemporary technologies. Some of this is being used, others not. But, the Indian industry knows what is contemporary and useful.

What's being used is partly driven by what the customer wants. If you look at some of the comfort or safety issues, these are driven in part by legislation, in part by market needs. The Indian industry knows what is available on the shelf and, therefore, is in a position to employ a technology appropriately according to a market and a customer's requirements. That said, there are a lot of technologies which an Indian customer may not want, even if it is offered, for reasons of cost or because they are not relevant.