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Business Transformation- The Datt Approach
Ashwini Kachapeswaran
Saturday, October 1, 2005
In the world of IT clutter, CIO’s worry about high costs and even higher expectations.

A complex IT infrastructure that runs on multiple platforms and CIO’s often find themselves amidst an IT haze. Panasonic Automotive Systems North America, a maker of automobile entertainment systems with manufacturing locations around the world was a little different.

PASA, a $1.4 billion business is a part of the Japan based Matsushita conglomerate. PASA’s IT investment stopped in the 1990’s, a place many CIO’s today wouldn’t want to be. But for Raj Datt, CIO and Business Transformation Leader, it was as simple as streamlining processes, simplifying integration to leverage technology.

As Datt joined PASA in 2004 from General Electric, he had just migrated from a ‘Center of Excellence’ in ERP implementation to the center of business transformation. When Datt took over, he soon realized even though the infrastructure was in order, there was no methodology in place. Being the true fan of Jack Welch and GE, Datt implemented Six Sigma along with the Lean Manufacturing, an approach to reduce waste and streamline operations.

Lean manufacturing embraces a philosophy of consistently increasing the ratio of value added activity of their business through ongoing waste elimination. Lean manufacturing provides companies with tools to survive in a global market that demands higher quality, faster delivery and lower prices. Applying this philosophy helps to reduce the waste chain, inventory and floor space requirements, create more robust production systems, develop appropriate material delivery systems and improve layouts for increased flexibility.

By implementing Six Sigma and Lean Manufacturing, Datt has brought back focus on the basics—business and people. He emphasizes on the importance of the right team. Datt built a team comprising of Six Sigma black belts who are experts in business process along with people who understand technology. “It is all about Six Sigma— mapping out the processes, identifying the risk and focusing on execution,” says Datt.

Datt’s recipe for transformation is as simple as, having a plan and sticking to it. The plan involves team collaboration and a lot of listening, he says. Involving and understanding customer needs; understanding competitor’s environments and listening to the employees ranks high on his list. With a mission to provide an integrated platform of technology and optimal business processes to provide a platform for growth, cost competitiveness, quality and simplification, Datt first integrated the IT staff to create his team. He worked toward a 360-degree perspective of the organization and bringing in a framework to establish the roadmap for future.

While Datt is busy charting the course of PASA’s future, his career has been one charted by both business and technology. Prior to PASA Datt was the Global Director of ERP at GE for numerous Oracle ERP implementations worldwide. Datt started his career in finance and corporate auditing; and progressed to various e-Commerce and technology roles including CIO for GE Energy Rentals. “I have 70 percent IT and 30 percent business considering I am a non-techie from a typical accounting track,” says Datt. It was at GE where Datt became a firm believer in the tenets on Six Sigma the 4E’s—Energy, Energizing others, Edge with keen focus on Execution. Applying six-sigma tools and methodologies has been the framework for his team’s success at PASA.

Datt who initially joined as the CIO at PASA in 2004, was recently roped in as the Business Process Leader to oversee and help the transformation of the supply chain operations for PASA. To Datt and his team this was a major step forward in becoming a true business partner that will allow IT to move from a back office function to a vital strategic partner in the organization. With Six Sigma coupled with Lean Manufacturing, Datt and his team soon started the as-is process mapping, team workouts and identified key risk areas.

He also established a rhythm to meet and brain storm ideas, created a list of action items and assured that all parties were involved. In a team he says it is very important to have the right mindset, establish a communication vehicles and framework for quick decision-making. This may sound simple but it takes leadership and box of tools in rallying the right support and navigating to land the plane at the right time and place. “We need to communicate a sense of leadership allowing people to succeed giving them the tools, stretching them so that they can better themselves and in return better the company,” he says.

Leveraging technology and SCM implementation at PASA, Datt has only one concern that keeps him awake at night-Security. He looks at security as a strategic and technological advantage, but unfortunately feels security solution providers are still on the sales mode, trying to sell more and not focusing on the solution. PASA supply chain management system is very similar to that of Dell, with manufacturing locations at Mexico and China, and operations throughout the world. Datt and team are currently in the final stage of launching the transactional enterprise system that will integrate financials, purchasing, production management, manufacturing and logistics. Deploying Glovia, a Fujitsu product with an integrated point solution for shipping and logistics, this solution addresses 60 percent of their processes road map and will help with real-time supply chain and financial reporting, he says.

According to Datt, the secret sauce to leverage technology is Business Process Integration. “We are just not IT folks but a team with business, management, strategic approach coupled with IT. We use a surgical approach, identify and look at issue and address those,” he adds.

As Datt coordinates business transformation and constantly interacts with people from various geographies, he has learned to manage global teams and developed a sense of appreciation toward the culture and the work people do. Transforming the business through IT innovation, business process leadership and infusion of top talent defines the Datt approach toward excellence.

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