Anchor Electricals Pvt. Ltd., one of India’s oldest electrical brands and a wholly owned subsidiary of Japanese electronics giant Panasonic has set an ambitious goal to more than double its revenues by 2020. In order to attain this revenue target in the next three years, Anchor Electricals has rolled out a major digital transformation plan across its business functions and IT operations in partnership with IT services firm Dimension Data. The rationale is to optimize IT infrastructure and operations with added agility and scalability so it helps the company to lower the IT operational spend by 10 percent as well as support business expansion. Dimension Data will enable and execute Anchor Electricals’ digital transformation plan using its Managed Services Automation Platform (MSAP). It will provide hybrid IT managed services to the electrical brand. The digital transformation plan is a three phase project. In the first phase, company is eyeing consolidation of around 50 servers during this FY2017-18 fiscal. And subsequently, the remaining two phases will be executed over the next two fiscals.
“From IT infrastructure perspective, we were looking for added agility and scalability but with reduced costs, so that it can support our business expansion and help us achieve our sales target,” Balbeer Singh, Senior General Manager – IT, Anchor Electricals told ETCIO.com.
“As the management and our JMD Dinesh Aggarwal is looking to double the sales over the next three years, it is also looking at IT not just as support function but also as business enabler,” added Singh.
With the digital transformation plan in place, company aims to overcome many of its business challenges that include high cost of infrastructure and its manageability aspects. For instance, Singh informed that the resources for managing the infrastructure were very high in terms of cost and time, yet many remained underutilized and even the lead time for application deployment was high from business operation perspective.
To overcome those challenges, company looked upon digital transformation along cloud and other technologies and also scouted for a suitable IT or technology partner. And that’s where Anchor Electricals post performing a thorough vendor evaluation practice of different IT services firms, picked Dimension Data as technology partner for its digital transformation plan.
“One key thing that we have noticed about Dimension Data is that they are proactive and not reactive. They have certain automation and other tools, which they will use to proactively monitor the IT infrastructure and also have a hybrid (onsite offshore) managed model, which is very flexible in nature,” Singh commented.
Dimension Data will transform Anchor Electricals’ existing datacentres and network infrastructure into a scalable hybrid cloud environment based on the business needs. It will also manage the entire hybrid IT infrastructure and services through its MSAP.
“The use of Dimension Data’s MSAP will bring about a radical shift from the company’s prevalent reactive IT operations management environment to a more focused, predictive and proactive management environment,” said Kiran Bhagwanani, CEO - Dimension Data India.
Singh informed that company will leverage a private cloud for highly critical business applications and functions which deals with sensitive data and where security remains top priority. For non-critical business functions, company will use public cloud, which in a way will help to bring down cost of IT operations. Overall, it’s a hybrid cloud and IT model that company has adopted here.
The first phase of the digital transformation project dealing with server infrastructure consolidation is expected to be completed within this current fiscal.
Though cloud technology remains core to Anchor Electricals’ digital transformation plan. Besides, Singh pointed out that other technologies will be also used for enhancing data security with backup appliances, improving the datacentre efficiencies with software-defined networking (SDN) and more.
Company’s digital transformation plan will have major impact on core business functions and operations including manufacturing, supply chain, logistics and others. Overall it is banking on this project to improve business efficiencies and operations, which would than reflect in boosting sales and doubling its revenues by 2020.
Though, Singh didn’t reveal much about company’s annual IT spending and revenues. But according to recent media reports quoting company officials had stated that Anchor Electricals is aiming to grow its revenue by 20 percent to Rs 2600 crore in 2017-18.