It Implementation Stories

Embed Size (px)

Citation preview

  • 8/6/2019 It Implementation Stories

    1/15

    Eveprese

    challeth

    marshathe usuresourc

    extreme

    LessoLearned From

    Vertical

    By Balaj

    gu

    ra

    (From left to right)

    Vikram Chopra,

    GM (passenger services application)

    Centre for Railways Information SystemsSunil Rawlani,

    head-information systems & technology

    HDFC Standard Life Insurance

    Unni Krishnan T.M., group CTO

    (retail business),Shopper's Stop

    Jay Menon, director (innovation)

    & group CIO,Bharti Airtel

    Pradeep Saha,head-IT,Max Healthcare

  • 8/6/2019 It Implementation Stories

    2/15

    Retail is similar to the worlds fastest train, the

    TGV. Its speed, availability and extraordinary

    experience set it apart and has made it among the

    most preferred modes of transport in France. The

    same fundamentals separate the retail amateurs from the men.

    A retail organizations

    ability to scale up

    swiftly on demand, keep

    merchandize available,

    and create a consistently

    g re a t custome r

    experience in the face

    of surging volumes and

    mushrooming customer

    numbers will dictate its

    success. This is where

    technology assumes a

    pivotal role.

    Among the big

    players in the organized

    retail space in India,

    Shoppers Stop has

    always understood the criticality of scale, availability and

    experience, and has been an eager adopter of advanced, cutting-

    edge technology. We deployed JDA-MMS and JDA-WinDSS,

    core merchandizing, store PoS application and ERP in 1998,

    much before the other players, says Unni Krishnan T.M., the

    group CTO of Shoppers Stop retail business that includes

    Shoppers Stop, HyperCITY, Crossword, Mothercare, Desi

    Caf, Brio and Home Stop. And Shoppers Stop has continued

    to pump energy in this area. Today, says B.S.Nagesh, MD,

    and vice chairman of Shoppers Stop, it has implemented

    pioneering technologies like a self-checkout at HyperCITY,

    a first in both the retail brotherhood in India and globally.

    The Number CrunchersThe business and technological challenges that the retail

    sector face are similar to those in other sectors. What sets retail

    apart is the sheer volume of transactions it works with. Its

    this volume thats responsible for the high-use of technology

    in retail organizations. Other sectors focus largely on ERP

    and CRM type of applications. We need those and much more

    because the number of touch points between technology and

    the consumer is a great deal larger in retail, says Krishnan.

    The automobile industry, for instance, hardly has customers

    interacting directly with enterprise technologies, apart from a

    few dealer applications needed to help customers visualize the

    car they plan to buy, says Krishnan.

    But, retail creates a large number of customer-technology

    touch-points, with its self-checkouts, barcode scanners, price-

    checking solutions and anti-theft devices. And the number

    of customers interacting with such technologies (like at the

    checkout counter) can easily increase from a few hundred to

    millions in a short period.

    At HyperCITY, we've had over a million footfalls in the first

    three months, says Krishnan. At an average of two custo mer-

    technology contact points per customer and thats about

    two million probable interactions between customers and

    technology in three months. Add to that the large number of

    items a customer buys per visit. (An average receipt has 30-50

    items at a hypermarket.) Hypothetically, consider a 30 percent

    sales-conversion of two million footfalls that translates to

    anywhere between 9 to 15 [times customers trigger a play of

    technology] in three months from a single store.

    It goes without saying that technology deployed in a retail

    environment needs to be robust. But not robust like a tractor

    there is no place for the unsophisticated in a shopping mall.

    Retail technology needs to be intuitive, user-friendly and has

    to offer a consistent experience. This requires identifying

    cutting-edge technologies and putting them to innovative uses.

    There is a generation gap between us and other retailers in

    the country, as far as technology adoption is concerned. Weve

    brought new-age technologies to the Indian retail market, some

    which others havent introduced, says Krishnan.

    Shoppers Stop has one of the largest installed bases of

    AutoCAD software, says Krishnan, because the chain uses

    CAD technologies to craft, draw and plan its multiple stores

    as they roll them out. At last count, the group had over 20

    Shoppers Shop stores and 30 Crosswords outlets.

    The enterprise is also at an early st age of deploying a solution

    to optimization store-to-floor space ratio. Called Intactix, its

    going to help the store managers visualize how to stock shelves

    using optimal sales and margin expectations. The application

    also helps analyze how much specific shelves are generating.

    And it can even do a what-if analysis by removing certain

    merchandize off shelves and watching its impact on revenue

    and margins, adds Krishnan.

    The group was also the first to deploy an IBM i550

    performance server in the retail sector. This helps the

    organization consolidate all of its business units on a single

    box while running multiple applications, making it easier

    to administer and lowering the cost of ownership. Today,

    we run four different enterprise applications (primarily

    merchandizing and loyalty applications) catering to six

    different retail formats on the single box, and we can still take

    many more. Soon we will be the first to use the i570 series of

    servers running on the Power5+ chipsets, which will boost our

    disaster recovery capabilities, says Krishnan.

    Shoppers Stop was also the first in Indias organized r

    space to use salesforce.com, a leader in delivering on-dem

    CRM solutions via the Internet as software-as-a-servic

    automate its sales team. The application was customized

    implemented in-house and christened IB-Force (Instituti

    Business). IB-Force helps us to monitor a large percentag

    our gift voucher sales, which is about 10 percent (about R

    crore) of Shopper's Stop's sales, says Krishnan.

    Scale Up or Get OutThe TGV, even running at just 60 percent of its top spee

    515 kmph, requires over eight kilometers to brake. Reta

    dont have that luxury. IT's inability to scale up to mamm

    volume transactions while ensuring the constant availab

    of merchandize can bring a retailer to a grinding halt.

    Krishnan says theyre the first to have rolled out among

    most advanced replenishment applications for hypermark

    Called E3, this sophisticated mathematical software h

    HyperCITY analyze inventory trends, helping the enterp

    Cover Story| Imp

    REAL CIO WORLD | n o v e mVOL/2 | ISSUE/01VOL/2 | ISSUE/0138 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    Either youre partof the problem or part of the solution or youre just part of the landscape.Uttered by Robert de Niro in a 1998 heist film, the writer of this memorable line is still a mystery

    in filmdom. It doesnt matter because the words ring true, most of all in business today. WhenCIOs reporters explored the IT organizations of five business sectors retail, healthcare, BFSI, telecomand services their stories revealed how Indian majors are thriving on innovation to solve theirorganizations problems. Most interestingly, each vertical puts forth a series of learnings that are notunique to itself, helping you derive insights into their approaches to address your own IT challenges.The solutions are now out in the landscape. Find out, across the next five stories.

    Cover Story| Implementation

    KeepingpacewithvolumesGuaranteeingavailabilityofmerchandizeCreatingcustomerdelightandensuringconsistency

    GreatestChallenges

    By gunjan trivedi

    Every month, one of Shoppers Stop 50 outlets clocks seven million instances ofcustomers using technology. Encouraged, the group is now building on its technologycapability to stay ahead in the volumes game.

    creating shopp Pd

    Unni Krisgrup CTo (ret

    Sh

    RETAIL

  • 8/6/2019 It Implementation Stories

    3/15

    refill its shelves faster at lower costs, forecast better, and

    address the critical element of product availability. In a

    hypermarket, consumables like bread and juices fly off the

    shelves, Krishnan explains. Replenishing them every

    two days means were filling them about 180 times a year.

    Managing different products that need replenishment at

    different rates is tricky: should we buy 100 units of a productor 500? One hundred units means fresher products but also

    more frequent replenishment. Five hundred units allows for

    higher discounts, but pose a storage problem. E3 helps

    us find the right balance at the right time.

    HyperCITY is also home to one of

    the groups most innovative use of

    technology. Called iScan, this

    handheld barcode scanning device

    lets customers scan their merchandize as

    they take them off shelves. When they're ready

    for checkout, customers dont need to stand in a queue as

    their merchandize is scanned and billed saving time and

    improving customer experience.

    The iScan represents a classic case where a piece of

    hardware is put to multiple use by bundling it with different

    apps. The same hardware doubles as stock-taking solution for

    inventory. It is also used without the shopping cart as a

    receiving solution at warehouses and helps managers within

    a store do price-checks on merchandize.

    Known as a platform concept, Shoppers Stop borrowed

    the multiple-use approach from the auto industry and

    experimented with it in retail for the first time in India, says

    Krishnan. Car models like Tata Indica and Indigo share the

    same [architectural] platform. When you create a platform, its

    easier to build more models off it by incorporating tweaks. We

    surprised our application provider by applying hardware and

    applications in new environments, says Krishnan.

    One ViewShoppers Stop primary objective as an early-mover technology

    adaptor is not only to empower its businesses with the agility

    to scale up and the power to ensure availability of merchandize,

    but also to eventually bring all its retail formats on a common

    platform and create a consolidated view of its business

    and one view of the consumer.

    Each retail set-up within Shoppers Stop drives its ow

    business, but shareholders, management and the boa

    want to have one view of the business. Five to six years ag

    Shoppers Stops strategy was to grow quickly in differe

    retail formats even if it meant sacrificing a single view of businesses. Later, it became hard to see growth from multip

    verticals, business relationships and franchises. Instead

    having a 20,000-foot view of all our businesse

    what we had a view from a hill. And as w

    grew, we were forced to jump fro

    one business hill to another. Tw

    years ago, we decided to get

    consolidated view of all o

    businesses, while it w

    still early enough to crea

    commonality acro

    platforms, says Nagesh

    He associates thr

    objectives with this mov

    One is transparency

    view all his businesse

    Another is that it provid

    a benchmark in managin

    technology as a part of th

    business. Third is the eventu

    strength in acquiring a sing

    view of the consumer across all

    businesses. We want to have a comm

    view of one customer across our retail forma

    whether hes buying coriander leaves at HyperCITY,T

    Afghan at Crossword, a shirt at Shoppers Stop, a set of bab

    diapers at Mothercare or a cappuccino at Brio, says Nagesh

    Shoppers Stop is always trying to balance between comm

    platforms and creative technological solutions. Wherever it

    feasible, we try to create common applications across our ret

    formats. We recently moved Crossword from legacy apps

    JDA-MMS and JDA-WinDSS. As a result, we have achieved

    common merchandizing and store application platform almo

    across all our group companies, says Krishnan. Crossword

    using four enterprise applications, down from 12.

    However, when differentiation is required, specific solutio

    are created unhesitatingly. HyperCITY's speed checko

    solution using iScan is an example.

    This approach and the daring to take on new technologi

    is a characteristic feature of the group. And its being applie

    to getting a single view of the business. I firmly believe th

    investing in technology should be kept at par with investmen

    in real estate, senior management, and building capacitie

    Never hesitate in investing in technology, says Nagesh.

    Seior correspodet Guja Trivedi ca be reached at [email protected]

    Cover Story| Implementation

    VOL/2 | ISSUE4 0 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    SALE

    SALE

    SALEWith its price-checking

    solutions, barcode

    scanners and anti-theftdevices, retail creates alarge number of customer-technology touch-points.

    ILLUSTRATIOnS

    ByPCA

    nOOP

  • 8/6/2019 It Implementation Stories

    4/15

    VOL/2 | ISSUE4 2 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    For a company that began with one mobile

    service license in 1995, the Rs 8,156-crore Bharti

    Airtel has taken rapid strides to become the

    bellwether in the Indian telecom industry today.

    Its country-wide presence and market capitalization

    of Rs 101.9 crore reflect a fast-growing company at one

    level. At another level, such expansion signals a huge

    challenge, especially for a company whose growth has

    come inorganically, through mergers and acquisitions

    (M&As), as part of the industry consolidation. Ask Bharti

    Airtels IT organization.

    With each acquisition, the challenges grow by leaps and

    bounds. Bharti Airtel has sought to consolidate disparate

    IT systems of different entities and standardize platforms

    across the co mpany. Says Jai Menon, directo r (innovation)

    and group CIO of Bharti Airtel,

    In 2002, while on an S-curve

    of growth, we were just on time.

    It has reflected well in the way

    we adopted technology and the

    way customers experienced

    our offerings.

    The journey, which started

    then with basic integrations

    internally, will culminate by 2010

    as One Airtel a complete intra

    and inter-SBU integration across

    Bharti Airtels divisions. The

    journey has posed three major

    challenges: scaling up (vertically

    and horizontally), capability

    enhancement and integration.

    Braving the Integration BluesThere was a dire need to integrate all the services th

    Bharti Airtel provided as one brand. There was yet anoth

    need to integrate the systems and processes across circle

    and initiate the swift migration of all heterogeneo

    processes to one platform across the 23 circles.

    In 2002, when the carrier embarked on the integrati

    process, it had few circles to operate and was runnin

    legacy billing systems. Menon recalls the days wh

    the company bought its first off the shelf, high-en

    commercial billing system called Keanan in 200

    The migration of just two circles from legacy to th

    platform was extremely painful. Several business rul

    and processes needed to be aligned with the IT system

    Everything was missing. It took us several months

    set it right. Imagine the task

    repeating the similar exerci

    after every acquisition

    says Menon.

    There was a strong beli

    within that technology wasn

    the problem. It was integratio

    and its alignment with busine

    thereafter, which was essenti

    to keep growth steady on th

    S-curve. The non-integrat

    entities were also lying to

    low on the capability fro

    because of the over-customizatio

    of information systems an

    commercial software at differe

    entities within the compan

    Nothing is more frustrating than trying to get people to alter the waythey do things. New research reveals why its so hard and suggestsstrategies to make it easier.

    Integrationinthecontextofinorganicgrowth

    Gettingridoflegacysystems

    Minimizingmigrationtime

    GreatestChallenges

    By rahul neel mani

    Dial i.t.fo io

    TELECO

    How Bharti Airtel meets the challenges of integrating businesses and staying in line witgrowth fuelled by M&As.

  • 8/6/2019 It Implementation Stories

    5/15

  • 8/6/2019 It Implementation Stories

    6/15

    Cover Story| Implementation

    VOL/2 | ISSUE4 6 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    of bringing billing onto a common engine known as

    convergent billing platform.

    We have also progressed sufficiently on the common

    CRM platform across all 23 SBUs. This is a tremendous

    success in inter-SBU integration. It has not only brought

    business-IT alignment into play, but the capabilities of

    IT systems have grown nearly 10 times between 2002and 2006. On the customer side of

    IT, many areas like sales, order

    management, billing, revenue

    recognition, customer

    care and business

    intelligence have had

    to be migrated from

    their current platforms to one standard

    platform to be 100 percent more agile, say Menon.

    The entire IT infrastructure of Bharti Airtel now runs

    on multi-protocol label switching WAN, which helps the

    company support a host of applications, including the

    ones that are leading-edge. Migrating to MPLS-based

    services also cut costs for the company depending on

    the degree of converged traffic that Bharti Airtel was

    running on it. Says Menon: Using MPLS for all three

    layers data, voice and video saved us as much as 25

    percent on the network expenditure. CIOs might wonder

    how difficult it is to make the transition. Surprisingly, its

    less painful than anybody thinks. Technically, MPLS isnt

    a service offering, but underlying infrastructure.

    Through this exercise, Bharti Airtel has created an

    IT ecosystem which now uses one piece of middleware

    for 16 of its major application systems running on 1,500

    odd servers. As a result of this massive integration drive,

    Bharti Airtel executed three large utility computing

    models between 2004-2006 after factoring in both

    capital and operational expenditures.

    For business and internal IT, IBM became the key

    outsourcing partner with 15 more providers lined up

    behind it. For all contact center technology, Bharti Airtel

    picked Nortel and seven of its associated partners. On

    the infrastructure front, IBM was again the strategic

    outsourcing partner, with some others. All partners wo

    on a revenue sharing basis, so that there is no immedia

    capital expenditure; ROI doesnt come into play. Wi

    this kind of integration, I, as a CIO, have been able

    make capital expenditures, maintenance contracts an

    other such micro things redundant.

    All these functions are now offloaded to partnebecause of the utility computing model driven by th

    premise that integration not only brings operation

    efficiencies, but also gives cost efficiencies. In the ca

    of Bharti, the utility computing model has worked ve

    well. The company made sure from day one that th

    model is directly related to business outcome becau

    internally, in the company, most of the IT is related

    revenue, which is the busine

    outcome. As the revenue go

    higher, the percentage of spent o

    IT comes down, notes Menon.

    The UltimateObjectiveMost of the intra-SBU and som

    of the inter-SBU IT systems ha

    already been stitched with on

    thread and are working we

    Some of the most ambitious projec

    like integrated CRM, integrat

    self care and order manageme

    convergent billing are in advanced stages of completion.

    We are targeting that by 2008, Bharti Airtel mobilit

    fixed line and broadband will have one content gatewa

    one messaging gateway and one application gatewa

    across all platforms, that is, PC, mobile and TV. That w

    make us a 100 percent integrated telecom carrier. We

    be the first telecom company in the world to achieve thi

    claims Menon.

    Overall, the process has stemmed from the company

    quest for integration, which started early on in 200

    The company gathered the right ecosystem, got the rig

    architecture in place, and did the migration and integratio

    upfront. It has resulted in cost-effectiveness and the abili

    to recognize customers better. On the S-curve of growt

    we started very early. We wanted this whole strategy

    ultimately translate into rich customer experience. An

    its nothing but a result of integration and capabili

    enhancement in the IT systems, asserts Menon.

    Bureau head-orth Rahul neel mai ca be reached at [email protected]

    The thrust is to firstachieve integration

    of systems, businessintelligence systems, data

    warehousing, so that there isone national picture to view.

  • 8/6/2019 It Implementation Stories

    7/15

    VOL/2 | ISSUE4 8 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    What does it take to follow a paper trail?

    Ask an insurance company. Take an

    insurance organization anywhere in

    the world and it will look at paper as a

    necessary evil. Thats because with so many entwined

    business processes with cascading results, variables and

    overlapping needs, insurers need to ensure well-defined

    workflows, which for unprepared companies means an

    avalanche snowballing of paper and plenty of it.

    At one time, it got so bad that many insurers in the US

    housed in multiple-storey buildings used conveyor

    belts to carry files across hundreds of desks through

    multiple departments. The mechanical solution, though

    it successfully reduced the time it took to move paper files

    around, didnt address the problem. Sunil Rawlani, head-

    information systems and technology of HDFC Standard

    Life Insurance Company (HDFCSL), was certain he wasnt

    going to put his money into a conveyor belt.

    Rawlani was determined

    to drain away all the paper

    that was clogging business

    efficiency. He decided to

    introduce digitized content,

    automated workflow and

    agile, re-engineered processes.

    Insurance is a conventional,

    paper-based business with

    90-page files packed with

    supporting documents hopping

    across work-desks. These

    obese files then travel in and

    out of file cabinets, to agents, to

    junior underwriters, to medical

    institutes, to senior underwriters

    and so on. Imagine the volumes

    of paper racing around if a company handles about t

    thousand policy files everyday. Now, imagine the impa

    on the organizations turnaround time. Electron

    content management and digitization of workflow w

    imperative, points out Rawlani. In 2003, HDFCS

    embarked on a mission to cut out the paper chase an

    embrace Business Process Management (BPM).

    The Mumbai-headquartered HDFCSL, a joint-ventu

    between UKs mutual life assurance company Standa

    Life and HDFC, was started in 2000 to tap the evolvin

    life insurance market in India. As one of the first priva

    life insurance companies in India, HDFCSLs operatio

    were characterized by manual processes that were add

    incrementally to keep up with business requiremen

    In order to differentiate itself and tap the mark

    more progressively, it adopted the customer-centr

    approach and offered service as it's USP. As HDFCSL sa

    unprecedented growth, their manual processes, layer

    unsystematically over time, start

    to crack under the pressure.

    The number of Exc

    worksheets, used to tra

    p o l i c i e s , m u s h r o o m e

    Increased communication f

    new requirements began

    choke the organization. Multip

    systems to handle statu

    queries or communicating ne

    management decisions render

    process control inconsiste

    and inefficient, which hit th

    organizations ability to measu

    performance. All the while, th

    volume of paper exploded makin

    document-filing and handlin

    Eliminatingtheproblemsof

    apaper-intensiveworkflowwithelectroniccontentmanagementandBPMGivingbusinessbackitsUSPbyfocusingonserviceandnotpaperchasing.

    GreatestChallenges

    insuringa Pp-PhHDFC Standard Life Insurance has made a successful bid to get its people away fromthe clutches of paper files and back to the business of insurance.

    By gunjan trivedi

    BFS

  • 8/6/2019 It Implementation Stories

    8/15

  • 8/6/2019 It Implementation Stories

    9/15

    Cover Story| Implementation

    VOL/2 | ISSUE5 2 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    screens were viewed in

    landscape-mode, making

    the underwriters jobs

    very tedious. We tried

    using larger monitors,

    but that didnt work.

    As for portrait-oriented

    monitors, they were

    available only in the

    US at that time and

    were astronomically

    expensive, he recalls.

    With true CIO-

    resourcefulness, Rawlani

    found a solution that

    kept everyone happy:

    he deployed graphics

    cards that supported

    multiple monitors. Each

    underwriter workstation

    was connected to two

    15-inch monitors. One

    monitor displayed the

    document up-straight

    and the other displayed

    the scanned policy in

    portrait-mode.

    But, the document imaging solution isnt only a set

    of clever ideas. Its benefits, like proper indexing, access

    control, the ability to include annotations, secure storage,

    fast retrieval and better disaster recovery are far-reaching.

    Its also ensured better human resources allocation and

    that paper is eliminated from the workflow.

    The advanced capabilities of the BPM platform are also

    used to break down and monitor an automated process

    into steps as they are rolled out. Each step within a

    process is monitored and inefficiencies identified. Each

    steps time is noted and monitored against the duration

    of the entire process. Irregularities are immediately

    identified using key performance indicators built into

    the platform.

    Business procedural algorithms or rules are kept

    loosely-coupled with the BPM using a separate business

    rules engine, ensuring that in the wake of changing

    business needs, the entire process is not altered. Tweaking

    only the rules helps create a more agile process, which

    can effectively adapt to changes. Insurance companies,for example, allocate policies to either junior or senior

    underwriters, depending on the body weight of the

    applicant. If, at some stage in the future, these parameters

    change or say an applicant wants to customize his policy,

    the entire process doesnt need to undergo an alteration.

    The required changes are merely incorporated within the

    business rule engine.

    At first, we address

    the business processes

    breadth, to automate k

    front-end features. Th

    we started to scale t

    depth of the process. Th

    incremental approa

    helps us to address issu

    cropping up witho

    disrupting the enti

    process, and easily secu

    management buy-in b

    being able to show benef

    early on, says Rawlani.

    T h e a u t o m a t e

    workflow has benefit

    the organization. Apa

    from the measurab

    benefits of a 30

    percent improveme

    on policy turn-aroun

    time. For instance, t

    average time to issue

    new policy today is 1

    2.5 days, down from 5

    days. The organizatio

    is also able to off

    improved customer service with consistent experienc

    and enjoys improved efficiency in terms of immedia

    access to documents, tracking policies online, a new ea

    of administration, much better process manageabili

    and control, better compliance, and overall reduction

    the cost of ownership.

    There has also been a 40 percent reduction in the tim

    underwriters spend handling queries. This translat

    into substantial ROI, especially since the number

    policies issued in a year run in hundreds of thousand

    (HDFCSL issued over just under 4 lakh policies in 200

    06, covering more than 5.8 lakh lives.)

    Moving ahead, Rawlani wants to bring all busine

    processes that are not yet fully automated such

    claims under BPM. He is working full time to bring

    more third-party integration between the workflows

    HDFCSL and external entities such as medical institut

    or re-insurers. I am also figuring out how to furth

    equip our sales-force and agents with sophisticate

    mobile devices, which can integrate seamlessly with oworkflow and further reduce our tu rnaround time as w

    deliver policies to the customers, right at their doorsteps

    he says.

    Seior correspodet Guja Trivedi ca be reached at [email protected]

    The advanced capabilities

    of the BPM platform arealso used to break down andmonitor an automated processinto steps as they are rolled out.

    BANK

  • 8/6/2019 It Implementation Stories

    10/15

    VOL/2 | ISSUE5 4 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    As the second largest rail network in the world

    and the largest in Asia, statistics concerning

    Indian Railways are bound to impress. It boasts

    of coverage that exceeds 60,000 kilometers,

    has 300 railway yards and 700 repair shops. It runs more

    than 11,000 trains on a daily basis, and directly or indirectly

    touches the life of almost every person in India.

    However, not all figures concerning the Indian Railways

    are as impressive. For instance, almost 14 million of the 15

    million people whom the Railways transports every day

    travel on unreserved tickets. Handling them has been a

    huge problem. As union railway minister Lalu Prasad

    Yadav said in his maiden Railway Budget speech at the

    Lok Sabha in 2004-05, About 92 percent of railway

    passengers travel without reservation in unreserved

    coaches in trains in the country.

    This revelation is not something new, and the Indian

    Railways had realized the need for an Unreserved Ticketing

    System (UTS) a long time ago. In fact, Nitish Kumar, in

    his Railway Budget

    in 2002-03, had

    announced the pilot

    of the Unreserved

    Ticketing System,

    at a time when the

    Indian Railways was

    celebrating its 150th

    year of operations.

    As Vikram Chopra,

    g r o u p g e n e r a l

    manager (passenger

    services applications),

    Centre for Railway

    Information Systems

    (CRIS), points out, The

    decision to introduce

    UTS as a pilot project at 23 stations around Delhi was take

    in January 2002, and the inauguration of the same was do

    on August 15, 2002. Today, this project is showing a lot

    benefits, and has been extended to 588 stations as of Mar

    31, 2006. Further, the Indian Railways plans to cover 94

    more stations in 2006-07, and ensure that a total of 6,00

    stations have UTS as of March 31, 2009.

    While UTS is delivering excellent payback, the road tak

    was thorny. As a first step towards computerizing ticketin

    the Indian Railways introduced Self Printing Ticketin

    Machines (SPTMs), points out Chopra, adding that, The

    were standalone microprocessor-based ticket machine

    While they contributed towards reducing ticket invento

    and provided automated accounting at the station level, th

    had several limitations. The limitations included:

    The system was a logistical nightmare because fa

    changes had to be made on each and every machine.

    Since these machines were standalone systems, ticke

    could only be booked from the station of origin

    journey. Cancellation could also be only done at t

    same counter where the ticket was booked.

    Since there was no network, there was no real-tim

    generation of revenue. Additionally, these machin

    were prone to tampering.

    In order to overcome these limitations, CRIS designed th

    UTS. The project was given to CRIS on a turn key basi

    and the work involved designing the system, freezin

    of hardware and software requirements, procuring th

    hardware, development of software and testing it, an

    finally, installation, recalls Chopra.

    While implementing such a large system tends to be

    complex undertaking, CRIS core competency in handli

    such installations helped. Set up in 1986 to manage a

    the computer activities of the Indian Railways, CR

    had implemented large projects before, like the Freig

    Operations Information Systems (FOIS) and Passeng

    How the Indian Railways overcame a logistical nightmare in a mission to change the customeexperience of nearly 14 million people who travel with unreserved tickets everyday.

    By Balaji narasimhan

    O h rh

    track

    Designingthesystemfrom

    theground-upFreezingontherighthardware/softwarecombinationCreatinganextensiblesystem

    GreatestChallenges

    SERVICE

  • 8/6/2019 It Implementation Stories

    11/15

    Cover Story| Implementation

    VOL/2 | ISSUE5 6 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    Reservation System (PRS). But, while the PRS has been

    widely hailed by e-governance experts as one of the most

    successful e-governance projects, not only in India but across

    the world because of the number of citizens it has impacted,

    it handles only around 0.8 to 1 million reservations per day.

    The unreserved ticketing system, on the other hand, had to

    handle several million reservations a day, and be capable ofscaling way beyond 10 million reservations in the future.

    The most important thing about the unreserved ticket

    system was that, since it impacted so many people, it has

    to be available on a 24x7x365 basis and this applied

    to all aspects of the system. The system has therefore

    been implemented in the high availability mode from all

    hardware, software and telecommunication angles,

    says Chopra. Therefore, CRIS decided to use diskless PCs

    equipped with 144 MB flash ROMs. The ROM was to be

    loaded with three components: Red Hat Linux, Adaptive

    Server Anywhere Sybase RDBMS, and the ticketing

    application itself. The problem that CRIS faced was that

    all these things didnt fit into the 144 MB ROM, and

    measures had to be taken to trim the RDBMS and the OS

    Once this task was accomplished, CRIS faced anoth

    problem: it was using proprietary terminal servers

    connect dumb terminals with the backend server. Th

    apart from being expensive, was also capable of tying th

    Indian Railways to outdated legacy methods. In order combat this problem, the UTS team at CRIS started work o

    a TCP/IP terminal server, which had the advantage of bein

    extensible. Because security was an important consideratio

    for the Indian Railways, CRIS developed special tools

    centralize the management of these dumb terminals. As

    result of these tools, the security administrator can mana

    the ports from a central location, and even define th

    transmission speeds for data flow. But the finest aspect

    the terminal is that it is highly fault-tolerant. While it work

    off the network, it can also function as a standalone syste

    if the backend server or the telecommunications link brea

    down. Once the server or the network failure is rectified, th

    client reconnects to the backend server and automatical

    synchronizes the data.

    Another added bonus of these efforts was that the TCP

    IP terminal server cost just one-fifth of the proprietar

    terminal server that was in vogue earlier. Since TCP/IP

    the lingua franca of the Internet, CRIS was also able to mak

    the UTS easily accessible over the Web. As Chopra poin

    out, The booking of unreserved season tickets can now b

    done through the Internet with the physical ticket bein

    delivered to the passengers address.

    The usage of the Internet apart, the overall reach of th

    UTS has been staggering, to say the least. Today the UT

    network covers 682 stations with 2,152 users connected

    eight data centers located in New Delhi, Kolkata, Chenna

    Mumbai, Secunderabad, Patna and Gorakhpur. The syste

    issues tickets to around 5 million passengers every da

    generating revenues of over Rs 14 crore, avers Chopra.

    While numbers are always striking, the other benefi

    both to Indian Railways and to the common man a

    even more stirring. Now, travelers can buy tickets from an

    station and need not be restricted to the boarding statio

    The new UTS system also allows the purchase of a

    unreserved ticket three days prior to the date of journey,

    the facility for booking unreserved return tickets exists.

    The Indian Railways has also seen benefits from th

    UTS. Since the burden on the ticket-issuing personn

    was reduced, the same staff could be used for addition

    ticketing counters. The productivity of the booking clerk

    was also enhanced.

    The Indian Railways enjoyed other benefits, such as:

    Fares and business rules could be changed mo

    easily, and this protected railway revenues an

    reduced passenger complaints.

    Passenger traffic is measurable on a real-time basis

    Since more details of the usage of trains were availab

    Vikram Chopra,Gm (passenger servicesapplicatin), CRIS

  • 8/6/2019 It Implementation Stories

    12/15

    analytical reports with higher accuracy could be

    produced for top management.

    More counters could be opened for ticket sales without

    requiring any addition in manpower.

    The security features incorporated into the UTS

    reduced the chances of fraud considerably.

    Of course, all this comes at a cost. While Chopra was notable to provide the final cost of the UTS system because the

    implementation of the system is still in progress, he says

    that the Indian Railways has already spent Rs 80.71 crore

    as of March 31, 2006. An additional amount of Rs 86 crore

    has been sanctioned for 2006-07.

    While Chopra didnt provide any direct figures bearin

    upon the ROI of the project, he points out that, Whi

    it is not possible to quantify direct savings or increas

    revenues on account of UTS at present, as it is still in th

    expansion stage, costs will come down on account of reduc

    ticket stock inventories and reduction in investment f

    increasing points of sale. Revenues will increase becausegreater productivity in ticket sales by booking clerks, bett

    availability of tickets, and more efficient services throu

    better planning made possible by better MIS.

    A study of Lalu Prasad Yadavs Budget Speech f

    2006-07 gives us some indicative figures of the ROI

    UTS. Passenger earnings increased by 7 percent, and n

    doubt, UTS would have contributed to that . Streamlinin

    achieved by the UTS, among others, has also enabled th

    Indian Railways to target an additional income of Rs 20

    crore by adding additional coaches to some 190 popul

    trains. For 2006-07, a growth target of 11 percent has bee

    set for passenger revenues, which add up to Rs 16,800 cror

    Since the UTS already touches 5 million people per day, t

    averment that it is bound to add significantly towards th

    target is not untenable.

    Success apart, CRIS has no plans of resting on its laure

    We are now planning to further enhance the UTS proje

    with the introduction of touch screen based Automate

    Ticketing Machine, both with prepaid smart card

    debit/credit cards and currency in the ne

    future, says Chopra.

    Some of the innovations are al

    coming from slightly out-of-the-w

    locations. For example, the Indi

    Railways launched its first satell

    UTS at the Pampa Devaswo

    complex in Thiruvananthapura

    in November 2005, which

    aiming at issuing unreserv

    tickets from non-rail heads. Th

    system is expected to help sever

    lakh pilgrims visiting Sabarima

    by enabling them to purcha

    tickets three days in advance fro

    any railway station.

    Another first has been achieved b

    the Danapur division of the east centr

    railway, which has become the first divisio

    of the Indian Railways in which all A B and

    class stations have been provided with UTS facilitie

    With UTS expected to proliferate across the country

    the coming years, these numbers are only likely to go u

    along with customer satisfaction, of course.

    Special correspodet Balaji narasiha ca be reached at [email protected]

    Cover Story| Implementation

    VOL/2 | ISSUE5 8 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    While RFID (radio frequency identification) is usually seen as

    something that adds value to the supply chain, the Indian

    Railways is also implementing this technology to make

    traveling easier for the common man. This plan revolves around

    smart cards, which are issued in denominations of Rs 100, Rs 200

    and Rs 500. These cards are valid for one year, but the

    unused amount can be transferred to a new card.

    These smart cards are used with ATVMs

    (Automatic Ticket Vending Machines),

    which are equipped with a touch screen.

    Using the touch screen, the smart

    card holder can enter the details

    of his journey and the amount is

    automatically subtracted from his

    smart card.

    While this usage is bound to

    enhance customer satisfaction,

    RFID is capable of playing an

    even higher role in the handling

    of freight. The Indian Railways

    is supposed to have 222 million

    freight wagons, and RFID tags

    embedded in the wagons will be

    read by readers located in sheds.

    Using this system, which is currently

    in its pilot phase, the Indian Railways hopes

    to streamline freight management across the

    country. The impact upon the country itself is bound to

    be huge because, as of 2004-05, the Indian Railways carried 1.65

    million tonnes of freight on a daily basis. Since the network of the

    Indian Railways covers around 63,465 km across the length and

    breadth of the country, this system will make tracking of freight

    much easier than it is today.

    B.n.

    Empowering Passengers

  • 8/6/2019 It Implementation Stories

    13/15

    VOL/2 | ISSUE6 0 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    That India is a vast and varied geography with a

    burgeoning population is oft documented. Over

    a billion people are spread across a landscape

    from deserts to frozen mountain ranges, whose

    temperatures soar to 50 degree Celsius and plummet to -30

    degree Celsius. Delve deeper into the demographics, and one

    will find more revealing facts: a very high infant mortality rate,

    an unmanageable population per doctor nearly 70 percent

    of the population lives in remote parts and an average life

    expectancy of 63 years. In many ways, all pointers to a deeper

    need for India to turn to telemedicine.

    The modern applications of telemedicine do not

    simply entail a better business logic for hospitals

    and other healthcare service providers, but also promise

    to contribute toward an national cause. India has been

    a relatively late adopter, but is fast catching up in terms of

    applying telemedicine

    technologies.

    Max Healthcare

    Institute, the Rs 145-

    crore super-specialty

    hospital, has taken a

    plunge in proliferating

    treatment and medical

    ser vices thr o ugh

    telemed icine. Its

    TeleMed connects

    primary and specialty

    healthcare services,

    through images and

    other data, to health

    centers and tertiary

    hospitals with their

    highly specialized staff and technical equipment in remo

    areas. Telemedicine is an emerging system of medicine

    India, but can prove very effective in terms of deliverin

    timely treatment for those deprived of good medic

    facilities, says Pradeep Saha, head-IT for Max Healthcar

    Information and telecommunication technologies ha

    now reached a stage of maturity so that it doesnt tak

    much time to set up a network for telemedicine faciliti

    between two points.

    Earlier, an example of telemedicine may have been

    simple as a doctor receiving advice and consultation fro

    another doctor over the telephone. Today, telemedicin

    can bring a physician located hundreds of miles away in

    an actual examination room, thanks to a live, interacti

    system, notes Saha.

    However, India is still far behind when it comes

    attaining acceptable standards of health infrastructu

    and services, says Saha. There is a shortage of compute

    savvy healthcare personnel. Overall, it results in the po

    use of telemedical infrastructure, and the people wh

    suffer the most are those in the remote areas. Quite ear

    on, Max Healthcare felt the lack of training facilities wi

    regard to information and communication technolog

    (ICT) in medicine. In rural India, medical terms lik

    HIS (hospital information systems, RIS (radiolog

    information systems), and PACS (picture archivin

    and communication systems) are unheard of by th

    medical community.

    There is virtually no exposure to the applications of IC

    in remote areas where most people of India reside, says Sah

    We recognized this problem and thought of putting in pla

    a solution to bridge this gap. Max Healthcare got active

    involved in the practice of telemedicine with its variou

    Enter a healthcare WAN that has succeeded in taking highly-differentiated and specialty medical services to remote areas.

    By rahul neel mani

    InfrastructuretoprovideservicetoremoteareasTrainingandenhancingmanpowercapabilitiestoprovideservicesCreatingcost-efficienciesthroughsuchasystem

    GreatestChallenges

    curesO l s

    HEALTHCAR

  • 8/6/2019 It Implementation Stories

    14/15

    Cover Story| Implementation

    VOL/2 | ISSUE6 2 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    specialty hospitals and clinics, as well as ongoing telemedicine

    research and training projects, he explains.

    The hospital prepared a blueprint to establish tertiary-

    level service delivery facilities across rural and urban

    locations that were integrated with Max Healthcare TeleMed.

    This was to bring Max Healthcare services closer to the

    people, regardless of the geography in question. The MaxHealthcare doctors were confident that telemedicine would

    be a great tool to enhance the level of onsite care in small

    nursing homes. It would virtually eliminate unnecessary

    ambulance transportation and delay in providing critical

    medical care whenever and wherever required.

    The aim of Max Healthcare TeleMed was to empower

    physicians in remote areas as well as healthcare personnel

    to stay updated, vis--vis medical knowledge and the

    skills to provide better healthcare.

    Another major objective was to educate and train

    doctors in remote areas who were otherwise unable

    to access such training for both geographical an

    monetary constraints. Doctors in remote areas seldo

    get an opportunity to attend training sessions an

    thus lack knowledge to handle critical medicinal case

    Telemedicine is one of the greatest ways to provide a

    online training program, in which doctors usin

    communication links can actually indulge in trainingsays Saha.

    Consultation with experts and taking seconda

    opinions is a time-consuming job, especially if th

    experts are unavailable. Telemedicine bridges this ga

    easily. If a doctor has a heart patient but is not able

    read an electrocardiogram, the images need to be sen

    immediately for an experts interpretation. It can sav

    a life and thats only possible if you have a telemedicin

    facility with data and voice, asserts Saha.

    Max Healthcare was confident that it could eve

    monetize the rural centers through cost savings generat

    by identifying diseases in the early stages.

    Brick and Mortar ofTelemedicineTelemedicine technology is generally a function

    communication infrastructure and the cost of informatio

    technology hardware. There has to be a prop

    communication link between the center from where th

    telemedicine service and expert opinion are to be provid

    and the place where the patient is actually located.

    To be able to provide cost-effective services an

    avoid unnecessary overheads of capital and operation

    expenditure, Max India set up a 512-kbps primary ra

    interface ISDN link between the telemedicine cente

    and the tele-consultants. This was enough to work as

    primary link between the two centers. These lines we

    connected with modems at both ends to transmit the da

    between the two places.

    The pain area was not the technology, but i

    implementation and maintenance at the remote en

    because doctors and technicians needed initial trainin

    for usage. Also, there were problems of downtime, whi

    were natural. But with time, things have improved a lo

    says Saha. The images of reports began to be scanned an

    sent to teleconsultants who would monitor and sugge

    approaches to treatment over the telephone.

    Quite naturally, Max Healthcare thought of addin

    video in the process. It was not only difficult, bu

    impractical to narrate readings of the bedside monitor

    There was always a threat of marginal error. The err

    could turn fatal if the case was critical and immediate

    needed intervention, explains Saha.

    This was overcome by adding video to the setu

    Max India decided to put polycom video conferencin

    equipment, so that doctors could virtually collabora

    in times of emergencies and critical diagnostics. Th

    Pradeep Saha,head-IT, max Healthcare

    IMAGInGB

    yBInESHS

    REEDHARAn

    IPHOTOB

    ynAVEEn

  • 8/6/2019 It Implementation Stories

    15/15

    Cover Story| Implementation

    VOL/2 | ISSUE6 4 n o v e m B e R 1 5 , 2 0 0 6 | REAL CIO WORLD

    further helped in providing training and online learning

    to the doctors, says Saha.

    Healthy ProcessesA medical practitioner in a remote location now schedules

    all his patients who require expert medical tertiary-level

    specialists advice on a particular day and time of the week.The medical experts sitting at specialty

    locations are made available

    online during that schedule

    for consultations on

    the cases. Before

    hand, the remote

    p r a c t i t i o n e r

    makes available

    all the case

    history and

    investigations

    of patients to the super-specialists. It saves time, money

    and, most importantly, the lives of a large number of

    people, says Saha.

    Offsite nursing homes, diagnostic centers and hospitals

    can now send images of diagnoses online to experts for

    an opinion. This takes no time in comparison to sending

    the images physically. The latter brings into play the

    possibility of a patient losing time if he is at a critical

    stage of treatment. TeleMed has proved to be a boon in

    disguise for monitoring patients while they are admitted

    in an intensive care unit (ICU) at a remote location.

    The doctor in the local ICU connects the patient to the

    ICU or CCU (critical care unit) of Max Healthcare, while

    our expert cardiologists and other critical medicine experts

    review the patients condition online and provide expertise to

    a local ICU or CCU doctor in managing the patient

    with the best clinical practice, which is otherwise

    impossible, says Saha.

    Further, patients with chronic ailments can have

    follow-up consultations with their respective consultants

    while sitting in their homes or workplaces. For a nominal

    amount, the patient is given a device that needs to be

    connected to an ordinary telephone line.

    During the consultation, this device transmits the

    ECG and other relevant clinical parameters to the

    consultants monitor at Max Healthcare. We provide

    similar facility at the doctors premise. So if there is

    need for an emergency consultation, doctors in a remo

    location dont have to wait for their counterparts to rea

    the hospital, says Saha.

    With telemedicine now in place, an offsi

    catheterisation lab or cath lab (an examination room widiagnostic imaging equipment to support a catheterisatio

    procedure) gets hooked with the intervention cardiologi

    Also, the offsite cardiologist can send the cath lab imag

    online to an expert cardiologist who can review th

    images before the off-site cath lab gives a final opinio

    on the study procedure.

    Max Healthcare TeleMed has greatly helped doctor

    nurses and paramedical personnel in remote location

    providing them an opportunity to interact with supe

    specialists and update their own k nowledge and skills.

    ensures better patient management at a local level.

    Max TeleMed empowe

    patients to avail tertiary-lev

    healthcare services of glob

    standards from anywhere.

    patient can contact the neare

    Max TeleMed Center f

    scheduling her second consu

    or follow-up with the Ma

    Specialty doctors, says Saha.

    Currently, Max Healthca

    doesnt offer telemedicine at a ve

    large scale. People are slowly catching up with this new conce

    in India. With rapid developments in IT, new capabilities a

    being added to the core telemedicine infrastructure. Wi

    decreasing bandwidth prices, we can now think of linkin

    these centers with dedicated leased lines and perform virtu

    surgeries, he says.

    The processes established by Max Healthcare hav

    been so effective and efficient that the initiative has g

    the endorsement of International Technology Union

    Telemedicine division. As Saha puts it, this endeav

    ensures the delivery of right healthcare irrespective

    spatial separation. CIO

    Bureau head-orth Rahul neel mai ca be reached at [email protected]

    Patients in remote areaswith chronic ailmentscan have follow-up

    consultations while sitting intheir homes or workplaces.