C&L October 2017_LR (5)

INSIGHT 

Meet the global desi IT leaders 

Pg 26 

BOOK REVIEW 

Systems thinking for 

effective managers Pg 24 

Volume 06 

Issue 07 

October 2017 

150 

TRACK TECHNOLOGY BUILD BUSINESS SHAPE SELF 

A 9.9 Media Publication 

Organized retail giants are gearing 

up for their second innings into 

e-commerce - and they are not 

leaving without a good fight

INSIGHT 


Pg 26 

BOOK REVIEW 



Volume 06 

Issue 07 


150 







EDITORIAL 

Shyamanuja Das 

shyamanuja.das@9dot9.in 

The game 

is wide 

open… 

U 

nlike many other areas—most notably banking 

and telecom—India’s organized retail is nowhere 

close to its counterparts in developed and even 

many developing markets. Significant part of 

Indian retail activities happens in small outlets, 

either single stores or hyper local chains. There’s 

a garment store chain which calls itself a ‘giant’ of 

West Delhi. Five years ago, it was one store. Now, 

it has at least four outlets that I know of. 

With this kind of fragmented market, it was not 

surprising that the first real pan Indian brand was 

built by the online retailers. Flipkart, Snapdeal, 

Amazon…why even Jabong/Myntra…are top of 

mind brands in Raipur, Vizag and Bhubaneswar! 

Which retail brand can claim to have that kind of 

mind share – except probably the good old Bata? 

So, you cannot really blame investors when they 

threw their money behind the Indian online retail 

opportunity. The top three Indian private companies—all 

Unicorns—are retail companies—two 

of them pure play retail (Flipkart, Snapdeal); the 

third (One97/Paytm) is now getting there quite 

aggressively. Flipkart is also the largest retail 

unicorn globally. 

While the first (half-hearted) foray into online 

business by the large organized retail vendors 

some time back was quite a non-story, this time 

they claim they have had a change of heart. It 

seems that they are transforming their entire 

business and ‘online venture’ is not a project led 

by a couple of bright mid-level guys. That is what 

Shubhra’s cover story suggests. 

That is a good start—even if the ‘transformation’ is 

just a wish. At least, give it to them for the thought. 

The online retailers started with some real 

As retail becomes more of 

a technology-leveraged 

business—we will see 

tighter integration of online 

business with the rest of it 

innovation based on local needs—like Flipkart 

addressing the gaps that existed in logistics. But 

somewhere on the way, they seemed to have lost 

the direction. Maybe, it was plenty of funding, 

maybe something else... I would argue that good 

competition from the offline retailers could have 

prevented that. 

Even now, the game is wide open. As retail 

becomes more of a technology-leveraged business—we 

will see tighter integration of online 

business with the rest of it. 

That will make it a real competition. The Tata 

CLiQ example makes one hopeful. 

Let it be more exciting. India is a high growth 

market. And there’s enough room for everyone. 

October 2017 | CIO&LEADER 

1



INSIGHT 


Pg 26 

BOOK REVIEW Volume 06 

Issue 07 




150 




leaving without a good fight 

CONTENT 

OCTOBER 2017 

COVER STORY 

10-17| 

Click and Mortar 2.0 

Organized retail giants are gearing up for their second 

innings into e-commerce - and they are not leaving 

without a good fight 

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2 CIO&LEADER | October 2017

FEATURE 

04-08 

Are You Ready For A Data 

Protection Regime? 

www.cioandleader.com 

INTERVIEW 

18-19 

“Observe zero tolerance 

towards basic security 

hygiene” 

EVENT REPORT 

20-23 

CA CIO Strategy 

Summit 2017: Paving 

The Way For Digital 

Transformation 

BOOK REVIEW 

24-25 

Book Review: Learning 

To Draw The Big Picture 

INSIGHT 

32-33 

Smartphones Will Come 

Bearing AI in 2020 

36-37 

Security Not A 

Priority For The 

Board 

MANAGEMENT 

Managing Director: Dr Pramath Raj Sinha 

Printer & Publisher: Anuradha Das Mathur 

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Printed at Tara Art Printers Pvt Ltd., A-46-47, Sector-5, 

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Editor: Anuradha Das Mathur 

38-39 

New WEF Report 

Brings Bad News 

For Gender Equality 

in India 


3

FEATURE 

Are you ready for 

a data protection 

regime? 

Protecting personal data of citizens is increasingly 

being seen as a major obligation 

By Shyamanuja Das 

R 

ecently, when Equifax, one of the top three US 

credit bureaus, suffered a massive cyber attack 

that resulted in breach of personal data of 143 

million people, the first major fallout was rolling 

of the heads of some C suite executives. 

No marks for guessing who those C-suite 

executives were. Dave Webb was working as the 

CIO of the company for seven years while Susan 

Mauldin was the chief security officer since 2013. 

It is anything but surprising. Protecting 

personal data of citizens is increasingly being 

seen as a major obligation of those who deal 

with that data—be it commercial agencies like 

Equifax or government agencies like Unique 

Identification Authority of India. 

Globally, an individual’s right to privacy—that 

includes informational privacy—is increasingly 

being recognized. Authorities are coming with 


Feature 

stringent regulations for the entities 

that handle individual’s personal 

data—often called ‘data controller’ and 

‘data processor’ in regulatory lingo. 

The General Data Protection Regulation 

(GDPR)—a regulatory framework 

that has been approved by the European 

Union Parliament and will come 

into effect in May 2018, is seen as a pioneering 

regulation regime in the area. 

The demand for such regime is 

becoming stronger in all parts of the 

democratic world. In India, the apex 

court, the Supreme Court of India has 

lent its voice to the cause by explicitly 

recommending the government to initiate 

such legislation. 

Justice(s) Seeking 

On 24 August, in a historic judgment, 

a nine-judge bench of the Supreme 

Court ruled that right to privacy is 

a fundamental right. While another 

important judgment on triple talaq 

delivered two days earlier saw a divide 

of opinion among the five members of 

the bench, the decision on right to privacy 

was completely unanimous, in a 

much larger bench. 

“The right to privacy is protected as 

an intrinsic part of the right to life and 

personal liberty under Article 21 and 

as a part of the freedoms guaranteed by 

Part III of the Constitution,” the bench 

ruled in its order while over-ruling two 

earlier decisions by the apex court. The 

government had argued against privacy 

being a fundamental right. 

While the media focused on the 

judgment’s implication for Aadhaar 

because the judgment came while 

hearing a petition that questioned the 

data collected by Unique Identification 

Authority for Aadhaar, the implications 

of the judgment are far wider. 

Creation of a data protection regime—is 

by far the most obvious and immediate 

fallout—something which the honorable 

judges have pointed out as well. Protected 

personal data is one of the most important 

means to protect an individual’s 

privacy. Ensuring it is becoming a tough 

challenge in this era of digital everything. 

There is an unprecedented need 

for regulation regarding the 

extent to which such information 

can be stored, processed and 

used by non-state actors. There 

is also a need for protection of 

such information from the State 

“We are in an information age. With 

the growth and development of technology, 

more information is now easily 

available. The information explosion 

has manifold advantages but also some 

disadvantages. The access to information, 

which an individual may not want 

to give, needs the protection of privacy. 

The right to privacy is claimed qua the 

State and non-State actors. Recognition 

and enforcement of claims qua 

non-state actors may require legislative 

intervention by the State,” Justice Sanjay 

Kishan Kaul said in his judgment. 

Giving examples of players, such as 

Uber, Facebook, Alibaba and Airbnb 

and noting the capabilities of technologies 

such as ‘Big Data’, the judgment 

observes that individual’s data can be 

collected, processed to find new uses 

of data. “A large number of people 

would like to keep such search history 

private, but it rarely remains private, 

and is collected, sold and analyzed for 

purposes such as targeted advertising,” 

the judgment noted. 

Noting that the personal data collected 

is capable of effecting representations, 

influencing decision making 

processes, shaping behavior, and the 

possibility of the government exercising 

control over us like ‘big brother’ 

leading to stultifying effect on the 

expression of dissent and difference 

of opinion, the judgment explicitly 

argued for legislation in the area. 

“There is an unprecedented need 

for regulation regarding the extent 

to which such information can be 

stored, processed and used by nonstate 

actors. There is also a need for 

protection of such information from 

the State,” Justice Kaul noted while 

clarifying that interception may be 

desirable and permissible in order to 

ensure national security, it cannot be 

left unregulated. 

Both Justice Dr DY Chandrachud 

and Justice Kaul explicitly stressed 

the need for legislation to protect 

data privacy. The judges delivered six 

separate judgments. While Justice 

Chandrachud delivered the judgment 

on behalf of four judges including the 

Chief Justice, the other judges delivered 

their own judgments. 

“Informational privacy is a facet of 

the right to privacy. The dangers to 

privacy in an age of information can 

originate not only from the state but 

from non-state actors as well. We commend 

to the Union Government the 

need to examine and put into place a 

robust regime for data protection. The 

creation of such a regime requires a 

careful and sensitive balance between 

individual interests and legitimate 

concerns of the state,” Justice Chandrachud’s 

judgment noted. 

“I agree with Dr. D.Y. Chandrachud, 

J., that formulation of data protection 

is a complex exercise which needs to 

be undertaken by the State after a careful 

balancing of privacy concerns and 

legitimate State interests, including 

public benefit arising from scientific 


5

Feature 

THE DATA PROTECTION LINGO 

Data Subject: The individual (natural entity) whose 

data is being used by the data controller and data processors. 

The data protection regulations are meant 

for protecting his/her right 

Personal Data: Any information related to a natural 

person or ‘Data Subject’, that can be used to directly or 

indirectly identify the person 

Data Controller: The entity that determines the purposes, 

conditions and means of the processing of 

personal data 

Data Processor: The entity that processes data, on 

behalf of the Data Controller by the definition of EU 

GDPR but also ‘independently’ by the definition in the 

private member bill introduced in the Indian Parliament 

Consent: The explicit permission given by the data 

subject to the controller to use his/her data for a purpose 

other than what it was collected for. Usually, that 

can be withdrawn at any time 

Data Erasure or Right to be Forgotten: The right of 

the data subject to have his/her personal data erased 

by requesting the data controller/processor/third parties 

associated with them 

Data Portability: Obligations on data controllers to 

provide the data subject with a copy of his or her data 

in a commonly used, machine readable format that 

can be transferred to another controller with ease 

Data Protection Authority: Regulators for ensuring 

data and privacy protection; the body may even be 

involved in making recommendations to make amendments 

to the data protection legislation 

Data Protection Officer: The executive within a data 

controller or processor accountable for ensuring data 

privacy and the data protection regulations are complied 

with 

Privacy by Design: A principle that calls for the inclusion 

of data protection from the onset of the designing 

of systems, rather than a later addition 

Pseudonymisation: The processing of personal data 

in such a manner that the personal data can no longer 

be attributed to a specific data subject without the 

use of additional information, provided that such additional 

information is kept separately and is subject to 

technical and organizational measures to ensure that 

the personal data are not attributed to an identified or 

identifiable natural person 

Right to be Forgotten: Also known as Data Erasure, 

it entitles the data subject to have the data controller 

erase his/her personal data, cease further dissemination 

of the data, and potentially have third parties 

cease processing of the data 

Right to Access: The right of the data subject to 

have access to and information about his/her personal 

data 


Feature 

...Continued from Page 5 

and historical research based on data 

collected and processed. The European 

Union Regulation of 201629 of 

the European Parliament and of the 

Council of 27 April 2016 on the protection 

of natural persons with regard to 

the processing of personal data and 

on the free movement of such data 

may provide useful guidance in this 

regard. The State must ensure that,” 

said Justice Kaul in his judgment. 

With such unambiguous, unequivocal 

and forceful recommendation by the 

highest court of the country, the efforts 

towards formulating a data protections 

law are only expected to accelerate. 

As such, the government had initiated 

some first steps in that direction. 

In July, the Ministry of Electronics and 

Information Technology (MeitY) constituted 

a committee of experts under 

the chairmanship of Justice B N Srikrishna, 

former Judge of the Supreme 

Court, to identify key data protection 

issues and recommend methods 

for addressing them. Its brief also 

includes creation of a draft data protection 

bill. Members of the committee 

include Dr Gulshan Rai, National 

Cyber Security Coordinator; Prof 

Rajat Moona, Director, lIT, Raipur and 

a noted cyber security expert and Ajay 

Bhushan, CEOof Unique Identification 

Authority of India among others. 

Interestingly, a private member 

bill called Data (Privacy and Protection) 

has been introduced by Biju 

Janata Dal MP Baijayant Panda in 

the Parliament. The draft bill is 

based on the major issues addressed 

by the European GDPR. 

Implications for 

enterprises 

The EU GDPR defines a data 'controller' 

as ‘the natural or legal person, 

public authority, agency or other 

body’ which, alone or jointly with 

others, determines the purposes and 

means of the processing of personal 

data. Similarly it defines a processor 

as an entity that processes data on 

behalf of the controller. 

The non-state actors referred to by 

the judges are typically commercial 

companies who use an individual’s 

data for their business purpose. Most 

commercial agencies, especially those 

engaged in large scale B2C business, 

would fall under the definition of data 

controllers in the EU GDPR definition. 

And certain category of businesses 

would typically be classified 

as data processors. While in the EU 

definition, a processor is defined as 

someone who does the processing of 

personal data ‘on behalf of the controller’, 

it may not be defined that way 

necessarily. For example, the private 

member bill introduced by BJD MP 

Panda, defines a processor as someone 

‘who processes data independently 

or on behalf of a data controller’. 

In short, most businesses would fall 

under one or both the definitions and 

will have to comply with the new set 

of regulations. A limited exposure 

to EU GDPR—such as by companies 

who do business there or who provide 

IT or BPO services to European companies—has 

already resulted in many 

companies scrambling to comply. A 

full-fledged Indian data protection 

regime will result in several compliance 

requirements. 

Once that happens, it is a no brainer 

that the CISOs and CIOs will have 

to drive this new set of compliance 

requirements. 

Here is a look at some of the obligations 

that may come your company’s 

way. While you may have some of 

those in place already if your sectoral 

regulations require that, most of them 

would be new for most companies. 

While all of them may not require 

you to ‘show’ something (like 

appointing a Data Protection Officer) 

immediately, you nevertheless need 

to ensure that the obligations are met. 

An Indian draft data protection bill is 

yet to be ready and is a specific brief 

for the committee appointed by the 

Government under the chairmanship 

of Justice Srikrishna. So, most of the 

possible requirements that are presented 

here are taken from European 

GDPR’s principles, if not its exact 

regulatory requirements. 

In the discussion, we will refer to 

data controller/processors as businesses 

or enterprises though it may 

apply to other types of entities as well. 

Possible Issues/ 

Requirements 

Purpose of processing: The controller 

or processor has to clearly mention 

the purpose of collecting/processing 

data. That is because using the data for 

anything else other than the original 

purpose for which it was collected has 

to have explicit consent of the individual 

concerned, also referred to as data 

subject. The onus of ensuring that will 

be on the enterprises. 

Consent of the individual: One of 

the requirements of the European 

GDPR is that “where processing 

is based on consent, the controller 

shall be able to demonstrate that the 

data subject has consented to processing 

of his or her personal data.” 

It further mandates that the request 

for consent cannot be fine print as 

is the case today. It should be very 

clear and in plain language. Further, 

the companies should be able 

to make it easy for the individual to 

withdraw consent any time. Whether 

the consent us taken through 

paper-based documents or electronic 

means, business organizations 

have to put the systems in place to 

make it possible. “Making it easy for 

the individual’ has to be defined and 

that may go through change from 

time to time. 

Right of access by the data subject: 

One of the possible requirements from 

the companies dealing with individual 

data would be to provide the data 

subjects with access to their own data 

as well as additional information like 

the period for which the data would 

be stored; who will be provided access 

to that data, if it would be transferred 

beyond the boundaries of the country…the 

list may keep changing. 


7

Feature 

Right to be forgotten/Data erasure: 

Another important requirements that 

the EU GDPR has mandated—and 

which has become somewhat controversial—is 

the right of the individual 

to be forgotten or to request erasure 

of his/her data without ‘undue delay’. 

This is going to be especially challenging 

as there would most likely be a 

stipulated time period and failure to do 

that in that period may attract stringent 

penalties/punishment. The front end 

and back end system should be such 

that it should not only make it easy for 

the data subject to give or withdraw 

consent but also easily request for 

erasure which then have to be honored 

within a given time period. 

Data portability: Another possible 

requirement—taking a cue from EU 

GDPR—could be data portability. This 

means the data controllers or processors 

are under obligation to provide 

a data subject’s data to him/her on 

demand in a structured, commonly 

used and machine readable format 

for the latter to transport that data to 

another data controller. Practically, 

the challenge for the businesses is not 

just to make it possible but find an efficient 

cost-effective manner in which to 

make it possible. 

Storage and transfer of personal 

data: There are a number of requirements 

from the data controllers or 

businesses about how they should 

keep the data subjects in loop where 

they store the data and if they transfer 

data to a third party. With evolving 

technology, there would be a number 

of clarifications needed to enforce this 

regulation. For example, for this purpose, 

if a public cloud will be considered 

a third party is open for debate. 

Data protection mechanisms: 

The EU GDPR explicitly mentions 

pseudonymization as a data protection 

mechanism. A robust data 

protection mechanism may involve 

advanced techniques of data encryption 

and/or anonymization. 

Breach notification to the data 

subjects: This one is a no-brainer. 

Any data protection legislation would 

make it mandatory to for the data 

controllers to inform the individuals 

about any breach that happens. While 

many countries already have laws to 

address this, in India, it is still not a 

requirement; nor has been a voluntary 

practice. So, a new data protection 

regime will be challenging. 

Appointment of Data Protection 

Officers: The EU GDPR asks for a 

designated Data Protection Officer. 

This is primarily for accountability 

purpose as far as regulators are 

concerned but a dedicated executive 

also brings in focus. It remains to be 

seen if some information security 

professionals would look at a new 

career path through this responsibility. 

The companies will have to clear 

on what would be the role, seniority 

As a CIO or CISO, it is time 

for you to examine what the 

compliance requirements could 

mean for your organization and 

your KRAs. While the legislation 

and enforcement may still be at 

least a year away 

level, reporting structure of such an 

executive and what will be his/her 

relationship with the CIO and the 

CISO. Taking a cue from EU GDPR, 

the private member bill introduced by 

MP Baijayanta Panda too mentions 

the need to appoint a Data Protection 

Officer.“Every data controller or 

processor or third party, as the case 

may be, shall appoint a Data Protection 

Officer having adequate technical 

expertise in the field of data collection 

or processing and the ability to 

address any requests, clarifications 

or complaints made with regard to 

the provisions of this Act,” it notes. 

The draft bill also tries to list the role 

of Data Protection Officers. It says 

the role of DPO would be to act as an 

independent person, address requests, 

clarifications or complaints by any 

aggrieved person in stipulated time 

and recommend actions to be initiated. 

The Indian bill is yet to be drafted. 

It may add some other requirements 

and/or ignore some of the EU GDPR 

requirements. One of the tricky challenges 

for Indian banks, telcos and 

other such companies dealing with 

individual data will be how to meet the 

compliance requirements even in the 

wake of mandate to link with Aadhaar. 

As a CIO or CISO, it is time for 

you to examine what the most likely 

new compliance requirements could 

mean for your organization and for 

your KRAs. While the legislation and 

enforcement may still be at least a year 

away, it is only now that you can provide 

input to making of the legislation. 

Since a regulator like a Data Protection 

Authority will only be formed later, 

the committee may not be proactively 

be able to approach businesses. It is 

not a bad idea to get your voice heard 

now. This will ensure that the draft bill 

does not throw some nasty surprises. 

The private member bill introduced by 

Panda is a fairly comprehensive work 

and may serve as a good starting point 

in case you want to deliberate and 

reach out to the authorities with your 

considered opinion. 


100 

IT Decision makers with 

10,000+Cr 

of IT Budget are getting 

together at 

1st-2nd December, 2017 | Amritsar 

Are you there? 

For engagement opportunities, please contact 

AshishKumar ashish.kumar@9dot9.in, 9740761921 

DeepakSharmadeepak.sharma@9dot9.in, 9811791110 

PrashantAmin prashant.amin@9dot9.in, 9820575282 

Gold Partners Technology Partner 

Associate Partners Organised by A Brand of

10 CIO&LEADER | September 2017 





Cover Story 

TAKING 

STOCK 

Organized retail in India 

has reached an inflection point 

By Shubhra Rishi 


11

Cover Story 

I 

These are interesting times for India's retail sector. 

The e-commerce space is innovating at breakneck 

speed. Amazon and Flipkart recently completed 

their much-awaited Great Indian Sale and 

the Big Billion Day sale. Not to mention the more 

than sizable losses. According to news agency 

Moneycontrol, Flipkart topped the tally for last 

year with USD 803.99 million in losses. Amazon 

came second with USD 549.46 million in losses. 

The mounting losses for e-commerce firms indicate 

heavy spend on marketing to up the gross 

merchandise value (GMV) last year. 

In Amazon's case, the global ecommerce player 

has been on a losing spree for the last 23 years. In 

1996, two years after its launch, Amazon grew its 

revenue from USD 511,000 to USD 15.75 million, 

and its losses grew from USD 303,000 to USD 

5.78 million. Its Indian unit reported a 50.2% 

jump in sales to USD 26.14 million but suffered a 

loss of USD 3.78 million in a year after launch, 

Flipkart, on the other hand, clocked USD 100 

million from its first Big Billion Day sale in 2014. 

It also recorded a net loss of USD 298.3 million 

(approx) in the same year. 

However, these losses don’t concern the spendthrift 

Indian consumer who gushes over every 

penny saved on an online purchase and in turn 

is spending more than ever. Heavy discounts and 

aggressive marketing over a range of products 

have the Indian consumer in the online player's 

pocket. According to PwC’s retail survey conducted 

in 2016, Indian consumers have adapted 

the pace towards the omni-channel way of life. 

Their survey data suggests that Indians buy 

online primarily because of convenience (65%), 

followed by price (31%). 

Unfortunately, the organized retail sector 

hasn’t impressed the Indian consumer yet. They 

have disappointed the Indian consumer - in 

terms of cost, customer experience, and choice. 

Until now. 

Organized retail may be soon have its Amazon 

moment. 

According to Pinakiranjan Mishra, Partner and 

National Leader, Retail and Consumer Products, 

Ernst &Young (E&Y), the organized retail sector 

is ready for some change. In the last year or so, 

the stress on pure-play online retailers to showcase 

business profitability, has given these retail 

giants some respite, in order to take advantage 

of the visibility of opportunity, and to invest and 

innovate in the online space. 

Let’s consider Tata Group, the 150-year-old 

conglomerate who despite being a major offline 

retailer since 1998, entered online retail only a 

year ago in 2016, with an all-new e-commerce 

portal TataCLiQ. Tata UniStore is the company 

behind TataCLiQ.com that offers customers the 

phygital experience through a ‘Cliq and Piq’ 

payment option that allows you to shop online 

and collect your order from the store. “Within 

the first week of launch, it has received orders 

Carve a compelling 

brand story that 

promises a unique 

customer experience 


Cover Story 

from every Indian state. In terms of traffic to the 

website, we are witnessing a 3X growth since the 

launch date with a 15% repeat rate amongst customers,” 

said Ashutosh Pandey, CEO, Tata CLiQ, 

in an interview published on tata.com. 

In the past, the organized retail sector has disappointed 

the Indian consumer - both in terms 

of price and products. First it was Future Bazaar 

and then Big Bazaar Direct, Future Group’s 

much-hyped e-commerce venture, which shut 

down after almost 3 years of its launch in September 

2013. The recent casualty has been USD 

41 billion Aditya Birla Group’s flagship e-commerce 

site Abof.com, which will close down its 

operations by the end of 2017, after being unable 

to compete against the heavy discounting model 

of online rivals such as Flipkart and Amazon. 

Abof.com is the only exception to this trend. 

As against USD 3.1 billion Future Group, which 

is suffering a loss of around USD 38.46 million 

on their e-commerce ventures, such as Future- 

Bazaar.com, Big Bazaar Direct, and Fab Furnish, 

you would expect the retail major to swear off 

e-commerce retail. However, the company is 

playing it safe by not talking about its investments 

in the online space. 

Tata CLiQ, on the other hand, has gone one 

step ahead by stating that the company has 

got into the e-commerce space to play the long 

game. Shoppers Stop also, is looking at generating 

10% revenue from online sales by 2020. 

Mukesh Ambani-led Reliance Industries Ltd’s 

retail arm Reliance Retail is preparing to capture 

the top spot as India’s top online grocery 

retailer by 2020. 

We anticipate that the retail giants are gearing 

up for a second coming into e-commerce and this 

time they won't go down without a fight. How? 

Read on to find out. 

In the year 2007, the Indian retail sector was 

estimated to be worth USD 350 billion. It was 

also around the time when 97% of the Indian 

retail market was dominated by traditional 

'kirana' or 'mom and pop' stores. India's vast 

geographic, cultural, and economic diversity 

has encouraged traditional retail to prolifer for 

centuries because of a strong need and preference 

for personalized shopping requirements. 

The organized retail sector by that time, had 

developed a business model and was expanding 

very rapidly to get scale, but was badly hit 

by e-commerce. It was the year when Flipkart 

launched its business as an online bookseller 

"In many ways, the 

businesses are trying to 

bring up their play in all 

channels - online and 

social - and prominently 

stay available there." 

—Anil Shankar 

Customer Care Associate and 

VP – Solutions & Technology, 

Shoppers Stop Ltd. 

in India. Since then, the world of retail has been 

the same again. 

Today the Indian retail market is estimated to 

cross USD 1.3 trillion by 2020 from the current 

market size of USD 500 billion. According to 

Anurag Mathur, Partner-Consumer and Retail 

at PriceWaterhouseCoopers (PwC), organized 

retail will observe a 28% growth whereas 

e-commerce would be about 46%. 

“Both e-commerce and organized retail will 

grow fast although it is only in the last one and 

a half years that offline retail players got serious 

about online retail,” said Mathur. 

The Big Trigger: Demonetization and 

the Rise of Digital Payments 

One of the major reasons why this was possible is 

the Modi government’s November 8 demonetization 

drive in 2016, which has had a positive impact on 

organized retail unlike several other sectors. 

According to E&Y’s Mishra, several industries 

including food and groceries benefitted 

-- because citizens didn't have cash to pay at local 


13

Cover Story 

"If retailers wants to do 

business in this age, and 

wants to be profitable, 

they have to be on every 

channel." 

—Vineeth Purushotaman 

CIO, Fortis Healthcare 

and Former CIO, Bharti Retail 

kirana stores -- many of them saw the spike in 

the prices as an aftermath of demonetization. 

The fashion and apparel unit suffered because 

buying clothes wasn’t a priority for consumers at 

the time. Most major retailers had already understood 

the importance of bringing the convenience 

and interactivity of online commerce into the 

offline world thereby integrating digital wallet 

into their point-of-sale systems. 

For instance, Shoppers Stop launched its digital 

wallet in September 2015, Reliance Retail 

launched ‘JioMoney’ in May 2016, and Future 

Group launched FuturePay in October 2016. The 

penetration of mobile Internet and smartphones 

aggregate, mobile wallets, with their ease of use 

and convenience, as expected, have grown in 

popularity ever since. 

According to a report, digital transactions, trebled 

and quadrupled in volume and value across 

various modes from wallets to cards and interbank 

transfers from a year earlier. The mobile 

wallet industry is expected to maintain the pace 

of its current expansion with transaction volume 

expected to touch USD 32 billion by 2022 and the 

Offer customized 

offers based on totally 

secure personal 

preferences and 

information 

value of transactions is also expected to reach 

INR 32 trillion by 2021, growing at a rate of 126%. 

GST – The Great Leveller 

“GST will significantly impact the retail sector,” 

said Mishra. It will bring two major reforms in 

the retail sector. One is definitely the shift from 

unorganized to organized retail, and second 

is the improvement in margins. "The prevailing 

revenue neutral rate for apparel industry 

is 12-14%, and any rate set out by the new GST 

regime above it would have affected demand in 

the short-term as companies would pass on hikes 

to consumers, However, with the latest reports, 

rate for the branded apparels has been fixed at 

12%, expected to have a neutral impact on the 

apparel industry. The GST would reduce competition 

from the unorganized sector and provide a 

level playing field to the organized branded players," 

said a Credit Analysis & Research Limited 

report. 

GST will be able to set-off the service tax paid 

on the rent as input tax credit against the taxes 

to be paid on the final revenue. 

According to Mathur at PwC, a fully compliant 

value-chain will be more profitable than a partcomplaint 

one. As a retailer if you buy something 

from a vendor and you will be able to check the 

value chain, you can negotiate the credits that are 

available in the entire chain. As a result, the pricing 

and procurement will be better. 

“That’s where the retailers will get a more levelplaying 

field,” added Mathur. 

Know Your Customer and Technology 

Shoppers Stop, with an annual turnover of USD 

300 million, owned by K Raheja Corp Group is 

one of the oldest players in the organized retail 

business. The department store chain, owned 


Cover Story 

by the K Raheja Corp Group, has over 83 stores 

across 38 cities in India. In 1991, it launched 

its first store in Mumbai, and since then it has 

made consistent efforts to introduce innovative 

schemes such as the loyalty programs which has 

garnered over 4.6 million First Citizen members 

and one million Shoppers Stop Mobile app download. 

The retailer believes it can use anonymized 

aggregate data to provide mapping, directions 

and personalized in-store promotions to customers 

in the coming months. 

The retail major is aiming to accelerate the digitization 

of its stores in-line with its omni-channel 

strategy by 2020. 

According to Anil Shankar, Customer Care 

Associate & Vice President - IT, Shoppers Stop, 

this is a result of a sustained effort that has gone 

in the last couple of years. We have put in unrelenting 

effort in a direction where things are 

moving. 

Shankar has closely observed the evolution 

of the Indian retail sector for over two decades. 

He said that there has been a consistent effort in 

terms of how customer segments are moving and 

how customer preferences have changed - we 

have to align their strategies internally and put 

tech into play. 

In organized retail, this change is happening. 

“In the last 2-3 years, retailers are looking at 

deploying a cross-channel strategy. We acknowledge 

the fact that they will need to be available to 

the customer on channels in which the customer 

is available,” added Shankar. 

Multichannel retailing has been helping India’s 

consumption story and increasing the share of 

organized retail in the total retail pie. According 

to Mathur, in the present scenario, omnichannel 

agenda coupled with the pressures of delivering 

superior customer experience and in the face 

of aggressive competition will put the onus on 

developing an operating model which is strategically 

aligned to business goals. 

As a retailer, you can't choose between e-commerce 

and brick and mortar today. 

According to Veneeth Purushotaman, CIO, 

Fortis Healthcare, “the decision to choose the 

channel lies with the consumer. However the 

choice of being the channel is obviously in the 

hands of the retailer. If a retailer wants to do 

business in this age, and wants to be profitable, 

they have to be on every channel.” 

In a career spanning over two decades, Purushotaman 

has led technology leadership roles across 

several retail mammoths, such as Shoppers Stop, 

HyperCity and Bharti Retail. “Retail is the most 

dynamic and fast growing industry. Today a lot of 

consolidation is already happening among online 

and offline players. A good offline retailer player 

could shake hands with an online player rather 

than going all out and creating an online presence,” 

he said. 

According to E&Y’s Mishra, the element of connecting 

with customers, creating engagement, 

and connecting with the brand is significant – 

"The time has come when 

the retail players re-align 

technology, value, and 

margins in order to 

become profitable." 

Provide an 

enhanced and 

consistent experience 

across all channels 

—Meheriar Patel 

Chief Information Officer, AGC 

Networks Ltd and Essar Retail 


15

Cover Story 

that is an area where retailers have to do more. 

With the variety of technology, whether it is 

through big data, artificial intelligence IoT, a lot 

of this data that can be embedded into the physical 

world. 

Today, retailers are using predictive analytics 

to data optimize customer experiences by identifying 

the most valuable big data streams and 

integrating cross-channel data requirements 

for targeting customers, This data is also being 

used for understanding retail, and staying ahead 

of new trends, buying preferences and product 

affinities, checking inventory status, and segmenting 

and targeting customers accurately. 

“The change has led through the tech side. Some 

retail players have put in a lot of tech investment 

especially in the online retail space,” added Shankar. 

Essar Retail is a venture of USD 22 billion 

Essar Group. It has over 300 telecom retail outlets 

spread across 48 cities in India. Meheriar 

Patel, who is the Chief Information Officer, AGC 

Networks Ltd and Essar Retail, believe that a 

convergence of technologies is happening in digital 

technologies. While Robotics, AI, and big data 

are already getting implemented, the relative 

value in using these technologies and quantifying 

it is becoming extremely important. Patel, 

whose carrer in IT spans over three decades, has 

worked with organizations like Sun Pharmaceuticals, 

Globus Stores, Jet Air Pvt Ltd., and The 

Mobile Store. He believes that offline retailers are 

now looking at reinventing their offline strategies 

to serve their existing and new customers.”They 

are experimenting with ‘Buy Online and Pick from 

Shop’, ‘Shop Offline and Get Delivery’, and ‘Order 

Online and Pick’ customizations, and offering 

competitive pricing and parity for both offline and 

online. Most of the large and small retails have 

their backend integrated with online and offline 

interface. However, time has come when the retail 

players re-align technology, value, and margins in 

order to become profitable. It is the business model 

that will shape their existence,” he added. 

Today retailers’ brick and mortar strategies 

Provide an always 

on, 24/7 experience 

INR billion 

9,000 

8,000 

7, 000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

MUMBAI METROPOLITAN REGION 

1,415 

2,243 

TOTAL RETAIL MARKET SIZE 

NATIONAL CAPITA L REGION 

1,218 

1,919 

BENG ALUR U 

741 

1,155 

also need to evolve. 

To continue to draw customers into their stores, 

and to compete with the online retailers opening 

their own physical outlets, innovative marketing 

strategies, as well as new technologies such as 

smart shelves, robots, self-checkout, and interactive 

and virtual reality, being deployed in-stores 

as retailers strive to compete on all fronts. 

According to Purushotaman, the real intel- 

CHENNAI 

384 

615 

HYDERABAD 

444 

692 

TOTAL RETAIL MARKET SIZE IN 2016 (INR BN) 

ESTIMATED TOTAL RETAIL MARKET SIZE IN 2019 (INR BN) 

Source: Knight Frank Research 

PUNE 

337 

545 

TOP 6 URBAN CENTRES 

4,539 

7,168 


Cover Story 

2,0 00 

1,80 0 

1,60 0 

TOTAL MODERN RETAIL MARKET SIZE 

MUMBAI METROPOLITAN REGION 

NATIONAL C API TA L REGION 

BENGALURU 

CHENNAI 

HYDERABAD 

PUNE 

TOP 6 URBAN CENTRES 

1,718 

Use predictive 

analytics to 

understand your 

customer better 

instead of post facto,” he added. 

“Video analytics also has a huge potential in 

retail stores and now retailers are using it to capture 

customer trends, track traffic, catch shoplifters, 

as well as reduce fraud. 

INR billion 

1,40 0 

1,20 0 

1,0 00 

80 0 

60 0 

40 0 

20 0 

0 

194 

381 

319 

630 

183 

363 

ligence that will drive business will come from 

predictive analytics. “Data will continue to 

become bigger. One of the problems that continue 

to persist is the triviality with which we 

handle KYC in retail stores. That activity has 

to be given more seriousness. If the customer is 

inside the store, what is the best way in which 

you can invoke personalization, recognizition, 

and reward the customer - instantaneously 

61 

119 

43 

86 

TOTAL MODERN RETAIL MARKET SIZE IN 2016 (INR BN) 

ESTIMATED MODERN RETAIL MARKET SIZE IN 2019 (INR BN) 

Source: Knight Frank Research 

72 

141 

871 

The Future 

According to Shankar, in many ways, businesses 

are trying to bring up their play in all 

channels - online and social - and prominently 

stay available there. 

“The disruption has been there, but whether 

it will match up to the same level as their e-commerce 

counterparts, through their online strategies, 

will be a hope for the future,” he said. 

Organized retailers have long focused their 

business model innovations on aping the techniques 

applied by their ecommerce counterparts. 

To succeed, these tactics may not help in the 

long run. 

What Tata CLiQ has done in the last one year is 

commendable. As its CEO puts it: We are attractive 

for a brand-focused, quality-seeking audience 

so that we can deliver a targeted phygital 

marketplace. 

Essentially, they are taking steps to carefully 

carve a unique brand image via online, mobile 

and social platforms, at the same time, making 

use of their 149-year old brand heritage. 

All other large Indian retailers have the same 

advantage. 

Small innovations and supply chain improvements 

cannot differentiate an offline retailer. It needs 

a structure for organizational change, a carefully 

crafted cross-channel strategy that reflects what 

customers want and where and when they want it. 

Last but not least, the model requires a mechanism 

for getting the most out of the technology, tools and 

the vast ocean of big data that only is going to grow 

larger every day. As for consumers, the more retailers 

there are, the merrier they will be. 


17

INTERVIEW 

“Observe zero 

tolerance 

towards 

basic security 

hygiene” 

Vishal Salvi, CISO, Infosys 

discusses the security trends in 2017 

We have heard that 2016 

has been a year of 

ransomware and in 2017 also 

we saw that there were two 

incidents that took place 

simultaneously. What does 

that really tell us about our 

security preparedness? 

If you look at the recent 

ransomware attacks: WannaCry on 

12th of May and "Petya" on 27th of 

June, both are watershed events as 

far as cyber security is concerned. 

In my two decades of cyber security 

experience, I haven't seen so much 

of devastation being caused by any 

single cyber security event which 

has impacted multiple organisations 

at the same time in a very short 

span of time. These are the events 

we should sit back and understand, 

learn and take lessons from. In my 

mind it has changed my outlook 

towards how we look at the issues in 

cyber security, how we look at our 

value that we add to the business, 

and how we need to change our 

strategy, our vision and our response 

when it comes to dealing with 

managing the overall cyber security. 

Of course it will be a mistake to just 

look at ransomware as an issue and 

focus on that, but also if we look at 

the overall strategy, it is extremely 

important but ransomware is 

one example which gives us how 

important cyber security is for 

today's digital evolution. While 

we can’t expect the technology 

evolution and innovation to change 

dramatically, we can definitely 

change the way we look at it. As 

cyber security experts, we must have 

an influencing capacity in terms of 

being able to engage the stakeholders 

and send the right message, get the 

right budgets, and make sure that 

you work closely with the CIO and 

the technology teams to be able to 

build necessary controls. I think we 

need to observe zero tolerance when 

it comes to basic hygiene. 

How has the role of the 

CISO evolved in the last 

few years? How do you think 

the role is ready for change in 

the near future? 

Organisations which have got 

impacted have made the CIO and 

the CISO equally accountable for 

their role in the organisation. Today 

the CISO must be able to influence 

and convince people to invest in the 

right controls and build a trust with 

the stakeholders. Otherwise you are 

not doing your job. So it’s not about 

externalising the problem, you need to 

internalise the problem and you need 

to take ownership in order to make 

sure that it’s not just implementation 

of control but getting sponsorship for 

implementation of control is equally 

an important part of your role to 

entrust people and get it done. So I 


Vishal Salvi, Infosys 

Interview 

think that people should realise that's 

the change. In fact it was always there 

but it is now more fundamental now 

that people realise that you know you 

are accountable and you need to make 

sure that a business case needs to be 

presented. It is also about making sure 

that you are also accountable to get 

maximum return on investment. 

What is the importance of 

vendors collaboration in 

security and how does that 

impact the solutions that you 

choose within your 

organisation or for your 

organisation? Isn't 

collaboration essential for the 

new threats that are emerging 

in the enterprises? 

Generally speaking, you know 

most of the vendors have a closed 

approach towards their solutions 

and how they would want to bring 

them to the market. That definitely 

is a problem. Every security vendor 

has his own standard and strategy. 

And they haven't really been able to 

come together and create a common 

architecture and a common standard 

which the world will benefit. We 

obviously have challenges in the 

bureaucracy and the processes and 

practitioners also. So all these are 

loopholes which are exploited by 

cyber criminals who don’t have any 

processes that are very cohesive. 

As practitioners you have to do the 

best with what you have. For example, 

we invest in engineering, orchestration, 

and automation; so there is hope. But 

not many organisations are able to do 

that. We are able to do it but not many 

organisations are able to that and 

therefore, there is always a struggle in 

terms of depending on an external party 

to come and deliver that value. 

What are the top 3 things 

on your agenda in 2020 

as far as security is 

concerned? 

I think this year has largely been 

in terms of investing and building 

capabilities. We are actually embarking 

on a journey of operational excellence 

and making sure that every single 

control that has been invested on is 

actually delivering the value for the 

buck right. There are four important 

objectives: The first one is to build a 

team which will give assurance to our 

clients about security of their data 

and business that they are entrusting 

on us. The second objective is to 

constantly improve the efficiency and 

effectiveness of the controls that we 

have deployed. The third objective is 

to ensure that people remain calm and 

composed when you respond to cyber 

events and cyber incident that happen 

to your organisation so that you not 

only contain, but also recover from 

them quickly. The fourth objective is to 

build a security culture. At Infosys, we 

have various tools and methodologies 

along with the maturity models 

that we have defined, both of which 

focus on the improvements as well as 

operational excellence, and every year, 

we revisit ourselves and constantly 

evolve to deliver the value that our 

customers expect from us. 


19

EVENT REPORT 

CA CIO strategy 

summit 2017: Paving 

the way for digital 

transformation 

The CA Technologies CIO Summit 2017 took place in 

Udaipur from 5-7 October 2017 

By CIO&LEADER 


Event Report 

Sunil Manglore, Managing Director 

– India, CA Technologies welcoming 

delegates to CA Strategy Summit 2017 

Ongoing discussions on Day 1 

of the CIO strategy summit 

Martin Mackay, President & General Manager 

– APJ for CA Technologies delivering a keynote 

address to the gathering 

T 

oday’s business environment is characterized 

by shrinking product lifecycles, new forms of 

competition, growing customer expectations 

and relentless cost pressures. New, nimble competitors 

are leveraging advances in technology 

to disrupt markets and displace market leaders. 

Consequently, enterprise technology leaders are 

under growing pressure to change and innovate 

at a brisk rate—and deliver compelling solutions 

to stakeholders. 

However, to deliver superior customer experiences 

in this new environment of continuous 

change, they need to adopt new methodologies and 

tools, and employ different skills and techniques 

to develop, test, deploy and operate software that 

forms the heart of the business in the digital age. 

At the CA Technologies CIO Summit 2017 which 

Today’s business environment is characterized 

by shrinking product lifecycles, new forms 

of competition, growing customer expectations 

and relentless cost pressures. New, nimble competitors 

are leveraging advances in technology 

to disrupt markets and displace market leaders. 

Consequently, enterprise technology leaders are 

under growing pressure to change and innovate 

at a brisk rate—and deliver compelling solutions 

to stakeholders. 

However, to deliver superior customer experiences 

in this new environment of continuous 

change, they need to adopt new methodologies 

and tools, and employ different skills and techniques 

to develop, test, deploy and operate software 

that forms the heart of the business in the 

digital age. 


21

Event Report 

The winning team posing after a successful Cook Out session 

Stephen Miles, Chief Technology Officer- APJ, CA Technologies took 

the delegates through the concepts of the Modern Software Factory 

on Day 2 of the conference 

was held in Udaipur from 5-7 October 2017, delegates were 

introduced to contemporary thinking and new practices 

that comprise the “The Modern Software Factory.”In his 

welcome address, Sunil Manglore, Managing Director – 

India, CA Technologies emphasised the need to transform 

innovative business ideas into outstanding customer experiences—and 

how the how the software factory concept 

brings together agility, automation, insights and security 

to help businesses compete more effectively and efficiently. 

In his keynote address to the gathering, Martin Mackay, 

President & General Manager – APJ for CA Technologies 

discussed the imperatives for digital transformation, 

and described how various organizations were 

leveraging new technologies to build better apps quickly, 

maximizing application performance with better tools, 

and making security a competitive advantage. In his talk, 

he also highlighted the typical challenges encountered 

by organizations undertaking a digital transformation, 

and suggested ways to overcome them. 

In the ensuing panel discussion on Digital Transformation 

Strategy moderated by R Giridhar, Group Editor, 9.9 

Media, experienced industry practitioners debated and 

deliberated on practical issues surrounding digital transformation 

efforts. Participating in the discussion were 

Keyur Desai, CIO, Essar Ports & Shipping; Navin Agarwal, 

Director, KPMG; TejveerBhogal, Head - Governance & 

Alliances, BCCL; Rajendra Mhalsekar, Head - Corporate 

Banking Technology, Yes Bank; and Martin Mackay, President 

& General Manager - APJ, CA Technologies. 

The day concluded with a light-hearted contest amongst 

the delegates in the form of a cooking competition. Technology 

experts put on their chef hats, and wielded skillets 

and spatulas with great adroitness to produce and array of 

mouth-watering delicacies to impress the judges. The competition 

was won by team 4 comprised of Vibin Venugopal, 

Rajesh Pareek, Nitin Bansod, Avinash Naik, Sushil Kumar 

and Sunil Mangalore. 

Rajendra Mhalsekar, Head Corporate - Banking Technology, 

Yes Bank said that it was a fantastic experience especially 

the the Cooking event was amazing and innovative. 

On Day 2 of the conference, Stephen Miles, Chief Technology 

Officer- APJ, CA Technologies took the delegates 

through the concepts of the Modern Software Factory. 

He demonstrated why emerging and evolving business 

models require an entirely new way of thinking about 

developing, testing, deploying and running software to 

deliver digital transformation solutions for the application 

economy. 

Speaking on “APIs and the Application Economy,” Sumit 

Gupta, Senior Director Software Engineering, CA Technologies 

described how APIs—the flexible, extensible building 

blocks of today’s apps—operate behind the scenes to 

help you innovate faster and fuel your digital transformation. 

His talk covered issues like the need for Application 

The panel discussion on Digital Transformation Strategy moderated by 

R Giridhar, Group Editor, 9.9 Media, with experienced industry practitioners 


Event Report 

Experience Analytics and proper API Management. 

Abhilash Purushothaman, Senior Director – APJ, 

DevOps Business, CA Technologies spoke on the growing 

role of DevOps in organisations, and the need to establish 

a proper set of practices to automate the processes between 

software development and IT operations teams to build, 

test, and release software faster and more reliably. Abhilash 

also covered the CA Technologies’ DevOps portfolio 

that enables users to develop code swiftly, test automatically 

and release reliably. 

In the online age, you need to deliver an exceptional 

digital experience to keep customers engaged and satisfied. 

However, without proper insights into how well 

your apps are working makes it hard to find and fix 

issues and problems. Sushil Kumar, Senior VP – Product 

Strategy & Management at CA Technologies, described 

the techniques available for end user monitoring, application 

performance management (APM), and infrastructure 

management. 

Head - Governance & Alliances - Information Technology 

- Bennett Coleman and Co said that the event was a 

great opportunity to meet such intellectual minds over 

the last few days. 

In today’s digital world, you need to open your business up 

so that users, employees and partners can access the data they 

need. But the more open you are, the more vulnerable you 

become to data breaches. So, how can you have better security—and 

even use it as an opportunity to win customer loyalty 

The delegates were taken to a tour of 

the magnificent Udaipur city 

Rajasthani folk dance was performed 

during networking cocktail and dinner 

The workshop on 'Optimized Business Outcomes' was conducted by Paul 

Eames, Senior Principal Transformation Consultant at CA Technologies 

Delegates participating in the workshop 

and boost employee productivity? In his talk, Sumeet Mathur, 

Vice President - Software Engineering, CA Technologies 

explained how you can boost application and access security 

without compromising on performance and usability. 

Ashok Gupta, Associate Vice President at Max Bupa, 

said that the entire event was very meticulously planned, 

well-executed and the sessions were quite informative. 

On Day 3 of the conference, a 3-hour workshop on “Optimized 

Business Outcomes” was conducted by Paul Eames, 

Senior Principal Transformation Consultant, CA Technologies. 

Participants were taught how to employ a structured 

approach to achieve the greatest business impact when 

updating their current It environment to meet new business 

needs. The workshop helped delegates identify business 

drivers, understand current state capabilities, and formulate 

a plan of action for digital transformation. 


23

BOOK REVIEW 

Book review: 

Learning to draw 

the big picture 

The importance of system thinking is ever on rise as the 

world becomes more and more interconnected 

By CIO&Leader 


Book Review 

I 

t is ironic that in a culture where sacred texts start 

with teaching the importance and characteristics of 

the divine ‘wholeness’ (the invocation of Isa Upanishad), 

thinking in whole or ‘system thinking’ is so 

conspicuous by its absence. 

Never has the importance of ‘system thinking’ 

been as evident as it is now, as the world becomes 

increasingly interconnected; and solving problems 

in isolation can no longer said to be a valid, let 

alone sound, method. 

What is more, with technology making things 

more and more open and interconnected, people are 

increasingly realizing the value of the ‘whole’—that 

is not segregated into small parts, thus breaking 

a hundreds-of-years old legacy of reductionist 

approach. Whether it is the Internet itself or the 

ctyptocurrencies and blockchain, they proclaim the 

superiority of this systems approach, where complex 

systems with no one centrally controlling it 

have provided immense value and benefit to a world 

which still sees thing, by and large, in parts. 

‘System thinking’ is becoming essential for businesses 

to succeed. A book for practicing managers 

on the subject, like Systems thinking for Effective 

Managers: The Road Less Traveled by Prashun 

Dutta and published by Sage, hence, is an extremely 

relevant and timely effort. 

Dutta, who has served both as a management 

consultant and a CIO (Tata Power and Reliance 

Infrastructure), is no stranger to the real life situations 

and expectedly the book is replete with typical 

situations that managers can relate to. 

“Attempts at isolating problem situations and then 

developing solutions for the same without considering 

the whole context are most likely to fail. In this 

regard, one has observed the practice of trying to 

import a solution that may have worked elsewhere. 

While one may adopt the thinking behind a solution 

implemented elsewhere, it will necessarily have to 

be adapted to the context at hand,” writes Dutta. 

How familiar it sounds! Few practicing managers 

would fail to identify with such situations. 

There are many examples from real corporate 

world—from manufacturing companies to IT companies; 

from business issues to IT project management. 

Once you go through them, you will surely 

relate to them. 

The challenge, however, is to find them as they 

seem almost hidden inside the descriptive text. That 

is the essential issue with the book. It is neither a 

‘chicken soup’ for the managers, written in heady 

easy-to-refer format nor is it a systematic primer to 

‘system’ thinking. Nor for that matter, and out-andout 

academic book, though Dutta’s work does exude 

significant academic indulgence. 

The book is essentially presented as a journal 

of the author’s learning journey, though loosely 

categorized into various aspects of ‘systems’ thinking—right 

from basic definitions to areas such as 

complexity management, management styles and 

leadership. The author tries to show the utility of 

systems thinking or looking for the big picture, 

which he confesses to have discovered as being 

synonymous with wholeness or completeness of the 

picture and not really their ‘bigness’. 

Essentially it is a reader’s book; not a referrer’s 

book. You have to invest time to read it sequentially 

and absorb. The original analysis and presentation 

style of the author is sometimes very enlightening 

and engaging. But you must fully commit 

to it. It is not a book that you can flip through. So, 

for those going through a training program or 

academic program, it is a welcome addition to systems 

approach literature—a book with so much of 

practical insight. But it is not a book that will help 

you on the go. To that extent, the name may be a 

bit misleading. 

In essence, it is a very good book on systems thinking 

for those who are willing to invest on learning; 

not a guide book that can be referred at will. 


25

INSIGHT 

The global desis 

Close to a dozen Indians manage IT for the Fortune 

500 companies. Find out who they are... 

By CIO&Leader 

J 

ust like it isn't rare to spot an Indian while 

travelling to the rarest corners of the world, it 

isn't rare for an Indian to head a large Indian 

corporation today. We all know about Google 

when it was choosing Sundar Pichai for the 

top job, there wasn’t another contender in 

the race. In the case of Uber, however, former 

Google and Softbank executive Nikesh Arora, 

was among the candidates considered for the 

post of Uber's CEO. 

As Indian companies expand their businesses 

and advance into new territories, 

people will be the immediate beneficiaries of 

their success. 

Is it interesting to see that global organizations 

are appointing leaders from diverse 

backgrounds and cultures to look after their 

businesses. What’s stirring this diversity in 

organizations? 

According to a Glassdoor survey conducted in 

2017, the largest highly inclusive organizations 

generate 2.3 times more cash flow per employee, 

while the smaller companies had 13 times higher 

mean cash flow from operations when compared 

to peer organizations. The survey added 

that highly inclusive organizations generate 1.4 

times more revenue and are 120% more capable 

of meeting financial targets. 

While CEOs remain cynosure of everyone's 

eyes, it is the CIOs or the IT leaders, who are an 

eclectic but a shy bunch, and hardly make headlines 

with their appointments. Thanks to Vivek 

Kundra who served as the first Chief Information 

Officer of the United States and Hardik 

Bhatt, the CIO of the State of Illinois, brought 

the position back to the limelight. And thus, has 

given rise to a trend across the globe. 

Enterprises also have appointed Indian 

CIOs to look after their IT departments and 

implementations. Some Indian CIOs took this 

responsibility from their homelands while 

others were born there. Some even moved 

there after securing these top positions. 

We bring to you ten names who have set 

examples for others to follow. The appointment 

of these CIOs is surely not an aberration 

and it will be interesting to see whether it continues 

to remain a trend. 


Insight 

Mamatha Chamarthi 

Chief Digital officer, 

ZF Friedrichshafen AG 

Germany 

Mamatha Chamarthi served as the Chief Information Officer 

and Vice President of Consumers Energy Company and 

CMS Energy Corp. since May 2010. Chamarthi had overall 

responsibility for the information technology systems for 

CMS Energy and its principal subsidiary, Consumers Energy, 

a Michigan electric and natural gas utility. During her 

16-year career, she held a series of increasingly responsible 

positions. She served as the senior manager of information 

technology for Daimler Financial Services. 

Anthony Thomas 

Global CIO, 

Nissan Motor Company, 

Japan 

Anthony Thomas, also known as Tony, has been Corporate Vice 

President of Nissan Motor Co., Ltd. since October 2017. Thomas 

served as the Chief Information Officer at GE Global Growth 

Organization since 2015. He served as the Chief Information 

Officer at Vodafone India Limited until September 15, 2015. He 

joined Vodafone in April 2012. At GE, he is a Member of GE 

Global IT Council and GE India Leadership Council. 


27

Insight 

Roger Gurnani 

EVP & CIO, 

Verizon Communications, USA 

Roger Gurnani served as the Chief 

Information & Technology Architect 

and Executive Vice President of Verizon 

Communications Inc. and Verizon 

Nederland B.V. for the last two years. 

Gurnani was responsible for developing 

and guiding Verizon’s technology strategy 

and investments. His role includes network 

and technology planning, development 

of architecture and roadmaps, continued 

evolution of digital platforms and oversight 

and direction for the Chief Information 

Officer and Chief Technology Officer teams 

across Verizon. 

Bask Iyer 

EVP & CIO, 

Dell Technologies, USA 

Bask Iyer has been the Chief Information Officer and 

Senior Vice President of VMware, Inc., since March 2015. 

Iyer served as the Chief Information Officer of Juniper 

Networks Inc., since 2011 and served as its Senior Vice 

President of Technology & Business Operations. A 

respected industry veteran, he has more than 25 years of 

experience in executing and driving change in traditional 

Fortune 100 manufacturing companies as well as Silicon 

Valley-based high technology firms. 

Anuj Dhanda 

EVP & CIO, Albertsons, USA 

Anuj Dhanda has been the Chief Information Officer and Executive Vice 

President at Albertsons, LLC since December 17, 2015. He serves as a Member 

of Executive Board at BITS Financial Services Roundtable. Dhanda has been 

Chief Information Officer and Executive Vice President of AB Acquisition 

LLC. since December 2015. Mr. Dhanda served as Chief Information Officer 

for the Giant Eagle supermarket chain based in Pittsburgh, PA since 2013 and 

its Senior Vice President of Digital Commerce. 


Insight 

Rahul Samant 

SVP & CIO, Delta Airlines, USA 

Rahul Samant has been the Chief 

Information Officer and Senior Vice 

President of Delta Air Lines, Inc. since 

February 2016. Samant is responsible 

for the airline’s information technology 

strategy, applications, cybersecurity and 

infrastructure, which are a vital part 

of nearly every aspect of the customer 

experience. He joined Delta Air Lines in 

February, 2016 from AIG, a multinational 

insurance corporation with more than 88 

million customers in 130 countries 

Suren Gupta 

EVP Technology & Operations, 

The Allstate Corporation USA 

Krishna Mikkilineni 

SVP Engineering, Operations and IT, 

Honeywell International, USA 

Krishna Mikkilineni has been Senior Vice 

President of Engineering, Operations & 

Information Technology at Honeywell 

International Inc. since April 2013. Mikkilineni 

oversees the effectiveness of Honeywell’s 

research, development, engineering, supply chain 

and operations, strengthening Honeywell's ability 

to create differentiated products and solutions for 

Honeywell’s markets across the globe. 

Suren K. Gupta has been Executive Vice President 

of Enterprise Technology & Strategic Ventures - 

Allstate Insurance Company since January 2014. He 

served as Executive Vice President of Technology & 

Operations for Allstate Insurance Company since 

April 11, 2011. Gupta is responsible for enterprise 

wide technology strategy, network infrastructure, 

enterprise applications and technologyrelated 

governance, security and compliance 

activities. Most recently, Gupta was 

Wells Fargo Executive Vice President 

and Group Chief Information 

Officer for consumer 

lending. 


29

Insight 

Atish Banerjea 

CIO, Facebook, USA 

Atish Banerjea has been Chief Information 

Officer of Facebook, Inc., since November 

2016. Banerjea served as an Executive Vice 

President and Chief Information Officer 

at NBCUniversal from January 2013 to 

September 2016. Mr. Banerjea served as the 

Chief Technology Officer and Senior Vice 

President of Dex Media, Inc. from 2011 to 

2013. He was responsible for all information 

technology, engineering and interactive 

product development. While at Pearson, 

he was credited with helping direct its 

transformation from a print-dominated 

business to a digital leader. 

Ganesh Jayaram 

VP-IT, 

John Deere, USA 

Ganesh Jayaram is Vice President, Information 

Technology, Deere & Deere, a position he has held 

since January 2016. He is responsible for all global 

information technology activities for the company. 

Prior to that, he was named Director, Global IT 

Business Insights and Enabling Solutions. Jayaram 

also handled senior roles in Canon, and The Boston 

Consulting Group in Chicago and Mumbai. 

Alpna J Doshi 

Global CIO, 

Business Transformation & IT, 

Royal Philips, The Netherlands 

Alpna Doshi joined Royal Philips as 

the Global CIO in 2016. She was the 

Chief Information Officer of Reliance 

Communications for four years. Doshi 

served as Vice President of Telecoms 

Business at Satyam. Doshi has been a 

Director of TeleManagement Forum since 

April 2007. She is a strategic thinke, a 

collaborative leader dedicated to delivering 

top and bottom line results and creating 

new business models. 


Insight 

O 

Putting 

cloud 

first, 

literally! 

IBM may also be looking for 

capturing a higher share of 

public services market 

By CIO&Leader 

n Wednesday 1st Nov 2017, IBM announced 

Cloud Private, a platform for enterprises 

to leverage the microservices architecture 

for building cloud-native applications and 

refactoring their monolithic applications. This, 

the company says, will facilitate “integration and 

portability of workloads as they evolve to any 

cloud environment, including public IBM cloud.” 

The new platform is built on the open source 

Kubernetes-based container architecture and supports 

both Docker containers and Cloud Foundry. 

IBM is the third largest cloud company globally 

and is a leader in the private cloud market, according 

to the Q3 2017 (latest) figures released by research 

firm Synergy Research Group. However, IBM lags 

both bigger rivals AWS and Microsoft as well as 

challengers like Google, Alibaba and Oracle in 

terms of growth. That is because of a higher growth 

witnessed by the public cloud segment of the market. 

The new initiative, on the face of it, will give 

a greater push to the private cloud market, on 

which it has a firmer hold, and drive its growth. 

Some customers are having a relook at public 

cloud, because of control and performance 

issues while some others want to remain private 

for privacy/regulatory reasons. IBM wants to 

leverage this segment and grow the entire private 

cloud piece of the market. 

That is the stated positioning of IBM. 

“IBM Cloud Private brings rapid application 

development and modernization to existing IT 

infrastructure and positions it to be combined 

with the services and experience of a public cloud 

platform,” he said. 

IBM also claimed that “companies will spend more 

than USD 50 billion globally starting in 2017 to 

create and evolve private clouds with growth rates 

of 15 to 20% a year through 2020, according to IBM 

market projections.” 

However, IBM may also be aiming to capture a larger 

share of public cloud market through this initiative. 

This is how. 

IBM has a huge customer base that uses 

its traditional middleware and other legacy 

applications. Through this initiative, IBM hopes to 

provide an easy migration path for these customers. 

By building the platform on the open source 

Kubernetes-based container architecture (supporting 

both Docker containers and Cloud Foundry), IBM 

hopes to facilitate easier integration and portability 

of workloads between private and public cloud. 

One thing that IBM Cloud Private will do is 

to help IBM customers place IBM middleware 

and other legacy applications inside containers 

and transform them into modern cloud 

ready applications by leveraging container 

orchestration run by Kubernetes. 

By working closely with the clients on their private 

cloud and making it easy for them to migrate to 

public cloud, IBM can genuinely hope to boost its 

public cloud business. 

This strategy is evident from the fact that IBM also 

announced new container-optimized versions of 

core enterprise software, such as IBM WebSphere 

Liberty, Db2 and MQ. 


31

Insight 

Smartphones 

will come 

bearing AI 

in 2020 

Apple, with its Bionic system on chip (SoC), 

will drive native AI adoption in smartphones 

By CIO&Leader 


Insight 

The initial driver for the rapid adoption 

of AI in smartphones is the use of 

facial recognition technology by 

Apple's new iPhone X 

O 

ne in three smartphones -- roughly over half 

a billion -- shipped in 2020 will have machine 

learning and artificial intelligence (AI) 

capabilities at the chipset level, new research 

said on Monday. 

According to Counterpoint's 'Components 

Tracker Service', Apple, with its Bionic system 

on chip (SoC), will drive native AI adoption in 

smartphones, making the iPhone maker a leader 

in the AI-capable chip market through 2020. 

Huawei, with its HiSilicon Kirin 970 SoC, is 

second in the market after Apple with AI-capable 

smartphones. 

"The initial driver for the rapid adoption of AI 

in smartphones is the use of facial recognition 

technology by Apple in its recently launched 

iPhone X," said Counterpoint Research Director 

Jeff Fieldhack. 

"Face recognition is computationally intensive and if 

other vendors are to follow Apple's lead, they will need 

to have similar on-board AI capabilities to enable a 

smooth user experience," he added. 

Qualcomm is expected to unlock AI capabilities in its 

high to mid-tier SoCs within the next few months. 

Qualcomm should be able to catch up with 

Apple and Huawei and is expected to be second in 

the market in terms of volume by 2020, followed 

by Samsung and Huawei. 

"With advanced SoC-level AI capabilities, 

smartphones will be able to perform a variety 

of tasks such as processing natural languages, 

including real-time translation; helping users 

take better photos by intelligently identifying 

objects and adjusting camera settings 

accordingly," explained Counterpoint Research 

Director Peter Richardson. 

Machine learning will make smartphones 

understand user behaviour in an unprecedented 

manner. 

Analysing user behaviour patterns, devices will 

be able to make decisions and perform tasks that 

will reduce physical interaction time between the 

user and the device. 

"Virtual assistants will become smarter by 

analysing and learning user behaviour, thereby 

uniquely serving each user according to their 

needs," Richardson added. 

According to Research Analyst Shobhit Srivastava, 

there is also growing potential in for AI-capable 

devices to play a key role in health care. 

"Machine learning algorithms can be used to 

generate health and lifestyle guidance for users by 

analysing combinations of sensor data and user 

behaviour," said Srivastava. 


33

Insight 

Enterprises, is 

it time to say 

goodbye to legacy 

networking 

infrastructure? 

Legacy networks are causing cloud transition 

problems in enterprises 

By CIO&Leader 


Insight 

G 

Companies are 

struggling with 

legacy networks, 

which are not 

suited for today's 

cloud based 

applications 

and their 

accompanying 

workloads 

etting rid of old furniture is a little like 

replacing your legacy infrastructure. 

It isn't easy to let go. 

According to Riverbed Future of 

Networking Global Survey 2017, 

which includes responses from 

1,000 IT decision makers across nine 

countries, including 100 in India, 

revealed that legacy infrastructures - 

especially networks - are holding back 

their cloud and digital strategies. 

The survey found that nearly all 

respondents from India (98%) agree 

that legacy network infrastructure 

will have difficulty keeping pace with 

the changing demands of the cloud 

and hybrid networks. Conversely, 94% 

of respondents say their organization’s 

cloud strategy will only reach its full 

potential with a next-gen network, 

and 98% agree that a next generation 

network is critical to keep up with the 

needs of their business and end users. 

Let's agree to the fact that 

SD-WAN is a definite improvement 

over the MPLS networks. In the 

recent March 2017 "Market Guide 

for WAN Edge Infrastructure" 

report, Gartner evaluated the 

SD-WAN market at USD 1.3 billion 

annually by 2020.That is a really 

short time. Considering some 

common problems that SD-WAN 

promises to solve a)Increase 

flexibility and performance of your 

network b) Manage costs c) Decrease 

network complexity, the Riverbed 

survey confirms that 92% of IT 

decision makers in India plan to 

migrate to SD-WAN within the next 

four years - up from just 3% in 2017. 

Other benefits for SD-WAN include: 

Increase application performance 

(40%) 

Network automation and ability to 

prioritize apps (55%) 

Unified connectivity across entire 

network (43%) 

Network visibility and monitoring 

(47%) 

Simplicity/ease of management 

(51%) 

Increased network security (46%) 

Integration with WAN optimization 

(37%) 

Instant cloud connectivity to AWS 

and Azure (44%) 

Decreased costs (29%) 

Currently, the survey confirms that 

performance pains experienced by 

businesses are glaring, as 42% of the 

respondents that they experience 

cloud-related network issues 

specifically caused by their legacy 

infrastructure a few times a month or 

more; and 90% said it impacts their 

business at least monthly. 

All this adds up to the fact that 

companies are struggling with 

legacy networks, which are not 

suited to meet the demands of 

today’s cloud based applications 

and their accompanying workloads. 

Simply put, legacy networks are 

dysfunctional for the business. 

According to the survey, 84% of 

Indian respondents stated both 

legacy networking infrastructure 

and lack of visibility into the cloud 

are barrier to their cloud strategy 

reaching its full potential – this, 

compared to 69% globally. 

However, there's still hope. 

The survey indicates that within 

two years SD-WAN technology will be 

critical in next generation networks 

to manage cloud and hybrid. And 

while only 3% of those surveyed are 

currently benefitting from SD-WAN 

today, within two years 54% plan to 

migrate to SD-WAN, and 92% within 

four years. 


35

Insight 

Security not a 

priority for the 

board 

A Fortinet survey reveals that 84% of 

businessses have reported increase in breaches 

By CIO&Leader 


Insight 

Another important driver for board 

awareness is the proliferation of 

regulation. With major fines threatening 

the bottom line, the board now has a 

mandate to take interest 

A 

Fortinet Global Enterprise Security Survey reveals 

that despite high profile cyberattacks continuing to 

occur, almost half of IT decision makers (ITDMs) 

at 250+ employee organizations around the world, 

including India, still believe that business executives 

are not making cybersecurity a significant priority 

or focus. However, many IT professionals believe 

that the transition to the cloud as part of their organizations’ 

digital transformation will in turn make 

security a growing priority. 

India Research Highlights: 

Board members are not treating cybersecurity as 

a top priority: 42% of IT decision makers in India 

believe that IT security is still not a top priority 

discussion for the board. This doesn’t seem to affect 

budgets since 74% of enterprises stated that they 

spend over 10% of their IT budget on security, which 

is a high investment. 89% of the surveyed respondents 

said their IT security budget has increased 

from the previous year. Now, IT decision makers 

feel strongly that cybersecurity should become a top 

management priority with 87% of the respondents 

saying that the board should actually put IT security 

under greater scrutiny. 

Three key drivers for cybersecurity becoming a top 

priority: 

Increase in security breaches and global cyberattacks: 

In the last two years, 84% of businesses 

have experienced a security breach, with the most 

common vector of attack being malware and ransomware 

for 54% of respondents. 71% of ITDMs said 

there has been an increased focus on IT security following 

global cyberattacks, such as WannaCry. The 

scale and profile of global cyberattacks is bringing 

security to the attention of the board. Security is no 

longer just an IT department discussion. 

Increased pressure from the regulators: Another 

important driver of board awareness is the proliferation 

of regulation, 47% of respondents reported. 

With major fines threatening the bottom line, such as 

the impending GDPR compliance for European data, 

the board now has a mandate to take interest. 

Transition to the cloud as a catalyst for security 

priorities: As organizations look at migrating to the 

cloud as part of their digital transformation, 88% 

of IT security decision makers believe that cloud 

security is becoming a growing priority. 92% of the 

respondents also affirm that cloud security - along 

with the investment in security to support it – is 

becoming a key priority for the board. As a result, 

half of those surveyed (71%) are planning investment 

in cloud security in the next 12 months. 

Report Methodology 

The 2017 Fortinet Global Enterprise Security Survey 

was undertaken on behalf of Fortinet by independent 

market research company Loudhouse to 

examine the changing attitudes towards security in 

business in July/August 2017. The global survey of 

IT decision makers with responsibility/visibility of 

IT security, received 1,801 anonymized respondents 

across 16 countries (India, Hong Kong, Korea, Indonesia, 

Singapore, the US, Canada, France, the UK, 

Germany, Spain, Italy, Middle East, South Africa, 

Poland, Australia). There were a total of 100 respondents 

in India to the online questionnaire. They were 

not aware of the purpose or sponsor of the report. 


37

Insight 

New WEF report 

brings bad 

news for gender 

equality in india 

The overall gender gap has fell back to where it 

stood in 2008, after a peak in 2013 

By CIO&Leader 

W 

e have written extensively about 

the underrepresentation of women 

in the workforce. However, this bad 

news continues to prevail - especially 

for India. According to World Economic 

Forum's The Global Gender 

Gap Report 2017, India has fallen to 

an overall rank of 108 in 2017 from 

87 last year. The report states that it 

has been largely due to the widening 

of its gender gap in women's share 

among legislators, senior officials, 

managers, as well as professional 

and technical workers. 

In contrast, Iceland sits at the top of 

the Global Gender Gap Index. Having 

closed nearly 88% of its gap, it has 

remained the world’s most genderequal 

country for nine years, according 

to the report. The four countries 

that made it to the top five included 

Norway (2), Finland (3), Rwanda (4) 

and Sweden (5). North America has 

a remaining gender gap of 28%, the 


Insight 

I 

out of 144 countries 

108 

0.00 = imparity 

0.669 

1.00 = parity 

IND 

A 

0.40 distribution of countries by score 1.00 

SCO E AT 

LANCE 

E INDICATO S 

Politics 

Economy 

Education 

ll 

e a a a l 

al ula 

ula 

a e 

ula a e ale ale 

u a a al e e 

a 

ave a e 

e 

Health 

e 

Global Gender Gap score 

a a a u 

u a al a a e 

eal a v val 

l al e e e 

a u 

a e a e 

COUNT SCO E CA D 

smallest after Western Europe. Both 

Canada (16) and the United States (49) 

have closed more than 70% of their 

overall gender a ugap. 

e a a 

What is surprising a ee ual is the la steep fall ve 

in gender pairity a ehas ea come e in ea span 

of one year. The overall gender gap 

has fell back to where it stood in 2008, 

e al a e al e 

after a peak in 2013. The report indicates 

that the gap in 2017 is larger 

Educational attainment 

than 

Economic participation and opportunity 

e a al a a a e 

it stood in 2006, 

e a 

in 

a epart due to specific 

l e a e u a 

issues in selected large countries, in 

particular China l e and India. a e u a 

Deconstructing l e the eeconomic a e u a gender 

gap into two of its core aspects, wage 

Health and sur i al 

parity and labour market participation, 

the report has found that low- 

e a a 

eal l ee e a 

income countries namely India, Sri 

Lanka, among 

Political 

others 

empohave, erment 

on average, 

e a l a e 

closed only 67% of their labour market 

participation gender e gaps. e al 

Notable recent ea estimates e ale easuggest 

a e la 

that economic gender parity could add 

Source: Glassdoor 

France’s and aUSD310 e a billion to the 

a e av e ale ale 0.00 1.00 2.00 

Gender parity 

could add a 60% 

jump by 2020 

if the gender 

inequality issue 

in the workforce 

is resolved 

an additional USD 250 billion to the 

gross domestic produc (GDP) of the 

United Kingdom, USD 1,750 billion 

to that of the United States, USD 550 

billion to Japan’s, USD320 billion to 

GDP of Germany. Closer home, the 

report indicates that China could see 

a USD2.5 trillion GDP increase from 

gender parity and that the world as a 

whole could increase global GDP by 

USD5.3 trillion by 2025 if it closed the 

gender gap in economic participation 

by 25% over the same period. 

In India, the GDP could see a jump 

of about 60% by 2025 if the gender 

inequality issue in society is resolved 

and more women are allowed to join 

the workforce, according to a McKinsey 

report last year.. The report also highlighted 

that in a ideal scenario in which 

women play an identical role in labour 

markets as men, India is likely to witness 

the highest potential boost at 60%. 

Unfortunately, this scenario remain 

ideal unless steps are taken to close 

this growing gender gap in India. Are 

0.00 1.00 2.00 

the enterprises listening? 

176 The Global Gender Gap Report 2017 


39

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