1. Preamble
1.1 Information Technology (IT), irrespective of the
organisation in which it is applied, is only an enabling tool. It is only a means to an end and not an end
in itself. Implementation of I.T. on Indian
Railways should be seen in that context, particularly with reference to the
present crises (as of 2001) affecting I.R. While integrated application of I.T.
will help in increasing efficiency (and effectiveness) and reducing
costs, it has to be accompanied by necessary changes in the systems and
procedures, perhaps in the organisation structure, in the work ethos and in the
customer focus.
2. Current
Status of I.T. Implementation on I.R.
2.1
The present status of
I.T. implementation on I.R. indicates a mixed picture. There are islands of
computerisation in the sea of manual work. Some of the applications like
Financial Management, Materials Management, Payroll, Freight & Passenger
Accounting and Operating Statistics, etc. are run in the batch-processing mode
in the EDP centre in HQs of the Railways, using COBOL programs. Information can
only be provided to Management if the entire data for a period is processed
2.2
Apart from the
mini-computers in the Zonal/Divisional EDP Centres, a number of Railways have
developed stand-alone PC-based applications for various facets of the work.
These are based on individual initiatives and there has been, till recently, no
effort at introduction of comprehensive and integrated computerisation.
2.3 Sometimes in 1997-98, Systems Development
Teams (SDTs) were set up by Railway Board on some of the Railways to design
& implement RDBMS-based on-line systems in Materials Management, Financial
Management, Personal Management (including Payroll), Freight Accounting, Passenger
Accounting and Operating statistics as well as Department-wise MISs. These systems are at various stages of
implementation/design. However, even now it is not known as to how seamless
will be the integration of the various systems across I.R.
2.4
In addition to the above systems, other
systems like FOIS (Freight Operations Information System) including TMS (Train
Management System), RMS (Rake Management System) etc. is making some progress.
These systems are also critical for the interaction with our customers.
3. Vision
2010
3.1 It is hoped that various systems being
designed and developed by SDTs would be in place by 2005. It is also hoped that
there will be a seamless integration between the above systems as well as the
other systems like FOIS, TMS, etc.
3.2
With the implementation
of the above systems and an efficient networking infrastructure, it is expected
that all the information required by the Railway officers and staff for their
day-to-day working would be available on-line. The information would be
accessible to everyone from top management to the line staff at stations and
sheds.
3.3
Once the back-end
databases are in place, it is expected that these would be web-enabled so that
information would be available on the intranet (Railnet). Further, e-commerce
would also be enabled. WR has already made a beginning towards B2C transactions
with the sale of season tickets through Internet. MOU has been signed with IRCTC for a pilot project for sale of
reserved tickets through Internet. It
is expected that the system will be strengthened and expanded to provide for
most of the major transactions through Internet including linking up with the
suppliers and major freight customers, through an Extranet. Once the Payment
Gateways are in place and Digital Signatures take off, payment transactions can
take place on-line, resulting in improvement in net drawal position.
3.4
There is a clear
difference between data, information and knowledge. Information is about data
and putting it into a meaningful pattern. Knowledge is the ability to use that
information. We had two decades that focussed solely on data processing,
followed by two decades focussing on information processing. Now the focus has
shifted to knowledge.
3.5
IR is somewhere
between data & information processing stage. We have lots & lots of
data and we process it into either too much of information or the wrong kind of
information. Hence the importance of Knowledge Management (KM), which may be
the latest buzzword, but it is not a
fad.
3.6
Over the years, the
environment in which IR operates has changed. There is much more competition
from road and this is likely to intensify, what with super highways and
expressways as well as higher capacity trucks, coming up. In this changed environment, IR has to
redefine its role from merely being a transporter to being a logistics provider
fitting into the supply chain of its
customers. An increased focus is required on the customers and Customer
Relationship Management (CRM) is required to develop stronger relationships
with them.
3.7
CRM is a
technology-enabled business strategy whereby IR can leverage increased customer
knowledge to build profitable relationships, based on optimizing value
delivered to and realized from its customers.
3.8
No I.T. vision can be
complete without a clear focus on how I.T. is to be applied. It is submitted
that KM and CRM are two of the most important areas on which focus is to be
brought about and maintained, if I.T. is to be used profitably. It is
appropriate, therefore, that we take some time in exploring these concepts.
3.9 Knowledge
Management (KM)
3.9.1.
“The
ultimate corporate resource has become information – the ultimate competitive
advantage is the ability to use it – the sum of the two is knowledge
management” (Oxbrow & Abell – 1998).
3.9.2.
KM involves various
stages, among them the following:
(i)
Knowledge capture,
i.e. creation of documents and moving documents onto computer systems;
(ii)
Adding value to
knowledge through editing, packaging and pruning;
(iii)
Developing knowledge
categorization approaches and categorizing new contributions to knowledge;
(iv)
Developing I.T.
infrastructures and applications for the distribution of knowledge; and
(v)
Educating employees
on the creation, sharing, and use of knowledge.
3.9.3. While compiling computerised databases of organizational
knowledge, “pointers to people” also need to be included. For example, for any
process or activity, best practices can be captured in a database that combines
human and computerized knowledge. Each entry to the database can be screened
for usefulness and relevance. The entries can record just enough about the
practice to pique the reader’s interest, and can then provide the name &
phone number of a person who could describe it in detail.
3.10 Customer
Relationship Management
3.10.1
CRM
itself is not a technology, even through technology is required to enable CRM.
CRM is in fact about creating value for customers. Technology makes it possible to integrate the large volumes of
customer information that are required for CRM, and to effectively transform
this information into useful knowledge.
3.10.2
In the liberalised
and competitive environment in which IR is now operating, it has to decide
whether to compete on the basis of price or on the basis of customer
relationships created through a superior value proposition. Pricing strategy
has its limitations, particularly in view of the high overheads on which IR
operates. As such, the second approach, that of CRM is more relevant. It will
help IR to sense even more precisely the needs of its customers, and to respond
to those needs with highly targetted offerings and marketing messages.
3.10.3
One way to assess the
need for implementation of CRM in an organisation is to count the channels a
customer can use to access the organisation.
The more channels there are, the greater need there is for the type of
single centralised customer view a CRM system can provide. On this basis, the need for implementation
of CRM on IR cannot be denied.
3.10.4
Though there are many
technological components to CRM, thinking about CRM in primarily technological
terms is a mistake. CRM is a process
that will help bring together lots of pieces of information about customers,
revenues, marketing effectiveness, responsiveness and market trends.
4. Pre-requisites
for Vision 2010
4.1
For
the IT Vision to become a reality, there are some important pre-requisites in
the area of networking and infrastructure, training requirements, IT
Organisation and Organisational culture, etc.
4.1.1.
Networking
and Infrastructure
4.1.1.1 Networking
4.1.1.2. Other Infrastructure
4.1.2. Training
4.1.2.1.
Implementation of the I.T. Vision cannot take place without proper computer
awareness and training. A number of
officers and staff have already undergone basic computer training. It is
expected that by 2005, 50% computer literacy and by 2010, 100% computer
literacy would be achieved on IR. In addition about 10 to 15 % oficers and
staff, would also undergo high-end training, in networking, systems
administration and database administration.
4.1.2.2 E-learning
A
number of organisations, particularly the large organisations, have already
switched to e learning and it is time IR also does so. Free on-line learning modules are available
on Internet on a large number of subjects/topics. Specialised course content
can also be created and made available on the Railnet so that the concept of
anywhere anytime training can be implemented. Self-learning training centres in
all the Railways can supplement this, where the officers and staff can train
themselves at their convenience. E learning is more cost effective than
classroom training and a judicious mix of the two should be aimed at.
4.1.3. I.T.
Organisation
4.1.3.1 One of the most important pre-requisites for
realising the I.T. Vision 2010 would be a thorough review and revamp of the
present I.T. organisation on IR.
4.1.3.2 The migration from the existing batch processing
flat file environment to on-line RDBMS & then to KM and CRM will have a
dramatic effect on the existing functionality of the zonal/divisional EDP
centres. The back-end functions of administration and management of operating
systems, databases & networks are particularly crucial. In addition, the
EDP centres will have to continue to look after the training requirements of
EDP centre officers and staff as well as the end users.
4.1.3.3 The above requirements can only be fulfilled if, in
addition to necessary high-end IT training to EDP officers & staff, the
organisation is also restructured along functional lines. The Zonal EDP centres would be a learning,
information and knowledge repository for the zonal railway and would function
as a Resource Centre.
4.1.3.4 While the
detailed staffing pattern of the IT organisation would require considerable
discussions & thought, it is submitted that a separate I.T. department be created
on IR. At apex (Board’s) level, there should be at least an Additional
Member(IT) reporting to CRB. At zonal railways’ level, there should be a Chief
Information Officer (CIO) or even a Chief Knowledge Officer (CKO) reporting to
GM. The CIO or CKO should be at least in Sr. Administrative Grade. The CIO/CKO
should have at least one Dy.CKO/Dy.CIO and Chief Manager (IT) for the zonal
& divisional EDP centres (which should be renamed as IT Resource Centres).
The IT Resource Centres should have the necessary supporting staff in Database
Administration, Network Administration, Operating Systems, etc.
4.1.4. Organisational
Culture
4.1.4.1.Any major improvement in
the organisational efficiency and effectiveness through integrated
computerisation, would require a charge in the work culture and ethos as well
as basic changes in the systems of working. Further, knowledge management
requires a very strong focus on a knowledge-oriented culture and long-term
rewards for those who create, share and apply knowledge.
4.1.4.2.
Knowledge management also requires a very close interaction between all
departments. I.T. Department can only help with the technology. Other
departments have to provide knowledge of the specific domain being addressed –
commercial department, for customer knowledge, for example. Creating
appropriate rewards and sanctions for knowledge-oriented activities would be
the responsibility of the Personnel Department.
4.1.4.3
Ultimately, suitable motivational training would also have to be devised so
that an attempt can be made to change the organisational culture.
5. Conclusion
5.1
To
summarise, the expectations of the Government/Parliament,
customers/passengers/suppliers & employees as per I.T. Vision 2010 could be
as follows:
5.1.1 Government/Parliament
Adhoc information requests and policy
change decisions, new projects to be undertaken, information about any on-going
project, changes in rules & procedures & other information to be made
available centrally.
5.1.2 Customers/Passengers/Suppliers
Ability to reserve tickets, claim
refund and make payments online. For major freight customers, ability to find
out status of outstandings/wharfage/demurrage, etc. & also make payments
on-line, connections on extranet and on-line issue of RRs at sidings, availability
of password-protected page for each major customer on Railnet/Extranet for all
relevant information. Similar page for suppliers to know about the latest
position of payments, status of orders, etc. On-line tendering to be the normal
mode. Customers offering smalls traffic through freight forwarders/ CONCOR to
be able to access position of consignment through an on-line tracking system.
5.1.3 Employees
Access from railnet to latest
circulars on policy, codal rules & regulations, forms, in fact any
information that would help them in making a faster and more rational decision.
Access, in addition, to a knowledge bank, including a `pointer’ to an expert on
the relevant topic, with whom they can discuss the problem. Information about
the employee’s PF balance, HBA balance, leave account, etc. to be also made
available, on the railnet, which they can access through a password-protected
personal page.
5.2
It
is hoped that with the effective & timely implementation of the Vision
2010, IR, its customers & its suppliers would be networked in a win-win
scenario for all of them.
(A.K.Bhatnagar)
EDFC