For IT leaders, mergers and acquisitions inevitably result in complicated challenges. IT methods and sources should be rationalized and unified, and differing cultures should typically be maneuvered towards alignment to make sure success going ahead.  

However with these high-profile undertakings can even come alternatives for profession development.

When Reliance Polyester — a subsidiary of world conglomerate Reliance Industries — accomplished its acquisition of polyester enterprise Shubhalakshmi Polyesters (SPL) in March 2023, Dr. Amrut Urkude, CIO of SPL, took over as CIO of Reliance Polyester. For now, Dr Urkude has his job lower out for him. He should combine the IT infrastructures of the 2 firms by bringing Shubhalakshmi Polyesters’ know-how on top of things with that of Reliance Polyester.

In a candid dialog with CIO.com, Dr. Urkude talks about his expertise of confronting myriad challenges whereas transitioning from a small firm to a big multinational enterprise, and the way he has handled them up to now.

SPL has a complete polymerisation capability of 252,000 tonnes per yr in contrast with Reliance Polymers’ capability of two.5 million tonnes every year. As an IT chief, have been you awed by this huge change within the dimension and complexity of enterprise?

Dr. Urkude: The transfer from a promoter-led enterprise to a one of many largest conglomerates on this planet is certainly a giant change. Nonetheless, I wasn’t awestruck due to my involvement within the due diligence of the merger and acquisition course of from day one. I used to be commonly interacting not solely with the IT management but additionally with the opposite enterprise groups resembling SCM, HR, accounts and finance, technique, and M&A of the Reliance Group. This familiarized me with Reliance’s model of working, and reporting construction, making it simpler for me to undertake their tradition and align SPL with the Reliance staff in a short while.  

iStock

How completely different is the IT infrastructure within the two firms? How are you planning to combine them?

Dr. Urkude: Reliance is way forward of SPL on the know-how entrance, be it within the areas of networking, backup, safety, and automations. It is just in ERP that SPL has an edge. SPL has carried out SAP S4/HANA whereas Reliance continues to be utilizing the outdated model known as ECC.

The IT in Reliance just isn’t solely cutting-edge, however it’s also extra organized. It’s divided into three verticals — enterprise IT, manufacturing IT, and central IT. Inside these three verticals, there are completely different divisions specializing in particular areas of know-how resembling networking, safety, and functions.

The acquisition course of was accomplished solely in March. To combine SPL’s IT with that of Reliance, we have to observe sure norms and requirements. We’ve already ready the finances in the direction of that finish, which is within the strategy of approval. We’ll provoke work as soon as we get the approval.

The place to begin of upgradation of SPL’s infrastructure can be its connectivity. We can be leveraging Jio’s MPLS to boost connectivity. The purpose is to combine the 2 infrastructures by September 2023.

Of the three IT verticals in Reliance, I’ve been interacting with manufacturing IT and enterprise IT within the final two months and hope to work together with central IT additionally as soon as the MPLS connection is in place. This has been a very new expertise for me.

So, how are you getting a grip on the cutting-edge IT instruments and options deployed in Reliance?

Dr. Urkude: Steady schooling is the one approach ahead. I’ve accomplished greater than 18 levels, diplomas, {and professional} certificates in my folder and nonetheless I’m studying. To maintain myself up to date and aligned with the most recent in know-how I attend seminar, webinars, and the bodily occasions. I additionally improve myself by studying related articles day by day. I’m additionally part of a number of CIO teams the place I get to know what is going on available in the market. With a bigger IT staff, I can now delegate my job to my staff members in order that I can give attention to the brand new applied sciences, implementation, and new initiatives.

Interacting with the area specialists in numerous divisions of Reliance’s IT verticals can also be a giant assist. Not solely do I be taught completely different expertise from varied area specialists, however I have to additionally improve myself earlier than reaching out to them. I have to learn up on the particular matters to grasp what the knowledgeable is saying. 

Coming from a promoter-led firm to a big enterprise, what dissimilarities did you encounter in your working relationship with the highest administration within the two firms?

Dr. Urkude: My interactions in SPL have been immediately with the promoter. It was very straightforward to get budgetary approvals and decision-making was very quick. If the promoter took a call, it was deemed closing. In Reliance, there are a number of approval processes. To get budgets for any new implementation, a number of procedures and approvals are wanted. As a part of the budgetary approval course of, the CIO should give the professionals and cons of the answer, its value, and ROI on the challenge.

The expectations of the highest administration in Reliance from the CIO are very excessive. There are a number of necessities on the MIS [Management Information Systems] entrance, which isn’t the case with a small group whereby the promoter is aware of the ins and outs of the corporate day by day. To fulfil this requirement of MIS, I’ve to upscale the methods in SPL.

In SPL, methods have been human-driven however in Reliance there’s a clear-cut instruction to automate most issues to scale back dependency on enterprise customers. The management in Reliance expects a CIO to work 24×7 as they don’t need any downtime in enterprise. To make sure this, in addition they present the requisite individuals, processes, and know-how.

How are you managing the brand new expectations?

Dr Urkude: Apart from dealing with IT at SPL, I used to be additionally heading the company HR perform. This expertise gave me the abilities to stability individuals, processes, and know-how. I knew methods to interact with the management staff. The Reliance management was very supportive of me. In the event that they felt I wasn’t updated on a specific ability, they’d help me.

On my half, I informed them that numerous change can not occur in a single day. They should improve their expectations progressively as a result of the 2 companies weren’t acquainted with one another’s working model, tradition, reporting construction, and approvals processes. To fill these gaps, ability upgradation, motivation, and constructing of belief are required.

With respect to the finances, I’ll take a unique strategy. I’ll clarify to the highest administration that in the event that they anticipate one thing they should spend one thing. I’ll inform them the earlier administration of SPL was not able to spend money on cutting-edge applied sciences and subsequently couldn’t notice the enterprise advantages accruing from them. We should match the enterprise requirement as per the market traits.

If I nonetheless encounter any hurdles in convincing the management, then I’ll contain the IT leaders of Reliance as a result of they know some great benefits of the assorted applied sciences as they’re already utilizing of their premises.

Out of your expertise, what would you advocate to a CIO who’s seeking to transition to a bigger group from a small firm?

Dr Urkude: CIOs should be clear. IT leaders from small organizations ought to acknowledge their limitations and capabilities. There isn’t a level in hiding one thing as a result of the brand new group will discover out ahead of later after which it is going to grow to be tough for the CIO to elucidate.

By being clear and trustworthy from day one, CIOs can hope to get higher steerage and help because the bigger enterprise will then share its information with them.