Thai firms should embrace IT to get ahead

Business News - Sunday December 23, 2007

INFORMATION TECHNOLOGY / INDIAN PIONEER'S ADVICE

Thai firms should embrace IT to get ahead

UMESH PANDEY

Thai firms big and small should try to embrace the democratisation of information technology that is spreading across the world as it would help them become more efficient, productive and transparent organisations, an information technology leader said yesterday in Bangkok.

''The democratisation of IT is a big enabler to enhance the productivity, efficiency, transparency, accountability and the responsiveness of organisations, governments, businesses and other institutions,'' Narayana Murthy, the chairman and chief mentor officer of Infosys Technologies of India, said as he delivered the ninth annual Chin Sophonpanich memorial lecture.

His comments echoed those made by Gen Prem Tinsulanonda, the Privy Council president, who said it was high time that counties and corporations adapt to the changing world and harness the potential of better access to information technology.

Mr Murthy said the country and corporations must embrace this phenomenon if they wanted to survive in the long term.

Citing the example of his own business, which he had founded in 1981 with a mere 10,000 rupees ($250), Mr Murthy said Infosys had made it big by catering to foreign companies. Today he says the company's annual revenues are about $4 billion and profits are about $1 billion. The company has a market capitalisation of more than $25 billion.

Countries such as Thailand can also take on the world in terms of information technology, he said, but education is the key. The Indian system has a heavy emphasis on mathematics and logistics, which is the result of former Indian leaders who made the right investments in infrastructure by building institutions of higher learning.

Gen Prem said it was also necessary for Thailand to seek India's help in developing Thailand's education system.

''Thailand has been looking forward to India's help in developing our education system and strengthening our technical capabilities,'' he said in his opening remarks.

Bangkok Bank stages the Chin Sophonpanich lecture each year to commemorate its founder.

Mr Murthy said the rise of India and China had made the 21st century one for Asia, where all countries have benefited from the growth of these two emerging giants. Thailand should position itself to take advantage of the trend.

ICICI Bank, India's second largest bank, now has assets of more than $55 billion, said Mr Murthy. It has the largest market capitalisation among Indian banks and derives only 15% of its revenues from the branch network, while 60% of transactions are done by ATMs and 20% over the internet.

The key for success for any firm depends on: 1) openness to ideas and cultures; 2) abolition of the culture of hierarchy based on people rather than on ideas; 3) the speed at which an organisation makes changes; 4) the acceptance of new ideas; and 5) the execution of ideas.

''Any corporation that follows these principles will surely go far and succeed on a global scale,'' he said.

Bangkok Post