My Fortnightly column, A Dose of IT discussing the post merger issues on Wockhardt Hospitals acquisition by Fortis (now Parkway) Kapil Khandelwal QuoteUnquote with KK www.kapilkhandelwal.com

1. cmyk cmyk
business DC
Bengaluru ● Monday ● 21 September 2009
15
MS OFFENSIVE: Microsoft filed five
civil lawsuits in Seattle, Washington,
against alleged “malvertisers.”
Malvertising is the term used to describe
harmful online advertising and works by
camouflaging malicious code as harmless
online advertisements.
MORE BASICS: Amazon.com M&A FOCUS:: IT firm
is expanding its line of private- Omnitech InfoSolutions is eyeing
label products and will offer overseas acquisitions and hopes
basic consumer electronics
items such as cables and blank
DVDs under the AmazonBasics
brand.
to seal at least one transaction
by end-this fiscal. The firm is
looking at opportunities in the
US and central Europe.
TECHNOMICS
Simulations from city
Drop in IT
A dose attrition:
of IT Survey
power GE air engines
Kolkata, Sept. 20: The
IT’s chance economic slowdown seems
to have seen a drop in attri-
tion rate and salary increase
of IT employees, according
to a survey.
at Fortis GOUTAM DAS
BENGALURU
velocity which may cause
damage. If the bird hits the
fan portion, it can also go
damage.
“Our engineers work on
computer simulations for
metals do but are lighter.
While GE90 only had com-
posite fan blades, the latest
for the next generation of
narrow body aircraft or air-
craft with a single aisle. The
The average IT sector
attrition rate, which was 18
per cent last year has
dropped to 15 per cent,
Kapil Khandelwal clinical operations sides. Sept. 20: It is indeed para- inside the core — the com- different aircraft engine GEnx jet engine also has a engine programme is called according to a survey by
The scale of operations of doxical that a campus with a pressor and the high pres- components: the fan, the composite fan casing. Leap-X. The team is also IDC, a premier global
A
cquisitions in the merged entities allow distinctive rural feel — sure turbine. It can damage rotating parts, bearings, the Together, the composites working on what it calls ‘e- provider of market intelli-
healthcare have for the rationalised IT where a water body and nice the blades mechanically and structural components, can result in a weight reduc- Core’. GE is coming up gence, advisory services,
outperformed every budgets of the two compa- green cover attracts many create performance and combustion technology. tion of 1000 pounds per air- with a single core scalable and Dataquest.
other sector in the first half nies to be gainfully migratory birds a year — operation-related issues. They are involved in simu- craft, the company claims. model for three range of air- Despite the marginal
of 2009. In the US alone, deployed on several key has engineers working on That’s why engines are test- lating how a particular com- The aviation team in India crafts — the business air- increase in salaries, a
approximately USD 130 merger initiatives. The first some of the most complex ed thoroughly for bird ponent or a sub-module is currently involved in craft, regional aircrafts, and freeze on fresh induction,
billion have flowed from and the foremost issue is technologies. GE’s John F. tests,” Bangalore would behave in a typical design and analysis work narrow-bodied ones. lay-offs, cutting down on
321 deals in the first half. laying the immediate Welch Technology Centre in talent and keeping offer let-
In India, we have wit- strategic direction for the Bengaluru, for instance, ters on hold, the industry
nessed the largest deal ever merged IT, ensuring that it played an important role in saw a dip in attrition rate to
in the hospital sector with is aligned with the clinical designing the advanced 15 per cent.
the acquisition of and business management combustor in ‘GEnx engine’ The average retention
Wockhardt Hospitals by of the hospitals. that power the Boeing 787 rate, defined as percentage
Fortis. Let us remember that in Dreamliner among other of employees retained out
Given the scale of the hospitals, unlike other aircraft. of the total employees as on
Indian private hospitals sec- industries, doctors, medical A recently con- March 31, 2008, improved
tor, this landmark deal is professionals and the IT cluded technolo- to 85 per cent, from 79 per
very much comparable to staff, in many cases, tend to gy fest at the cent in 2008, the survey
the largest deal in the histo- be loyal to their hospital c a m p u s stated.
ry of private hospital indus- and meeting their expecta- revealed more The survey results indi-
try, the merger of Hospital tions may be in direct con- about the cate a visible improvement
Corporation of America flict with the overall sys- Indian avia- in work environment even
and Columbia Hospitals. tems, processes, and the IT tion team’s though the average salary
While we celebrate this consolidation planning. importance increases during the year
deal, mergers in hospitals Since both Fortis- in the over- were pared to 1.4 per cent.
and the consequent Worckardt have been all GE air- The salary increases for
restructuring have resulted redefining their IT opera- craft engine employees with less than
in mixed outcomes of tional strategy, technology ecosystem. two years of experience
improved access in com- and architectures due to T h e earned 2 per cent increase.
munities, cost of care to the downturn in the econo- Bengaluru Those between 5.1 and 10
patients, hospital clinical my, the merger becomes a centre is the years received an average
outcomes, profitability and good reason for the main address salary hike of 5 per cent
efficiency of operations. merged IT to re-architect for computer and those with over 10 year
However, the Singh for more efficient opera- design and experience earned four per
Hybrid
brothers, promoters of tions. analysis simula- cent salary increase.
Fortis, have gained from Empirically, merged hos- tion where 500 In addition to work-life
their experience of Escorts pitals that have successfully engineers have balance, job security came
and other brown field hos- used post-merger integra- been checking the out as a crucial factor in the
pital acquisitions in ensur- tion as an exercise to trans- impact of what is survey.
ing retention of key clini-
cal staff and, thereby, con-
tinuity of care. In the case
of Wockhardt’s acquisi-
form their IT architectures
have been able to deliver
positive clinical and opera-
tional outcomes. Some of
technically called
‘engine imbalance’,
which can lead to disas-
ters in mid-air.
Locomotives The study reveals that
there is a drastic fall in the
number of people who feel
that their job is secure with-
tion, the promoters have the areas that Fortis- The computer simulations GE is developing ‘hybrid in their company.
been very involved in the Wockhardt would need to help in optimal design of the locomotives’ that uses a The reducing bench and
pre-merger activities to jointly evaluate is moving aircraft engine and drasti- mass layoffs by the larger
ensure successful closure to world-class custom-off cally drive mix of diesel and battery. players seems to have left
of the deal. the shelf (COTS) applica- down the Although the firm was an impact on the minds of
While the post-merger tions in clinical systems, expenses related to physical The aviation team operating environment. We targeting the first com- people.
integration of Wockhardt patient management and tests demanded by federal use commercially available mercial one to hit the A majority of IT employ-
and Fortis is ongoing, the relationship systems, clini- institutions — they often in India is software and we simulate ees said they changed jobs
scale of the transaction cal department systems, run in millions of Dollars. A currently involved the event in such a way that tracks in 2010, the eco- for better salaries and com-
opens up huge opportunity medical devices integra- physical ‘Fan blade-out it helps us in reducing the nomic slowdown may pensation (53 per cent),
for integration of IT func- tion, facilities management test’, where the impact of a in the design and number of physical tests overseas postings (38 per
now delay the process, a
tions for both the merging systems, business and clini- fan blade malfunction at analysis work for required,” Walia says. GE official said. Hybrids, simply put, are cent), better job security
companies. cal intelligence over cus- take-off is tested, can cost the next GE says its use of compos- (18 per cent), flexible
Given the IT maturity and tom development. between $10 million and ites technology — that is all about generating, storing and using working hours (18 per cent)
leadership at both the com- While this implementa- $15 million. generation engine replacing metal components energy efficiently. This is what GE is and training and develop-
panies, this would be an tion would be a large trans- An aircraft engine is typi- programme for with materials such as car- doing with locomotives: when brakes ment (9 per cent).
occasion for the merged formation; it would defi- cally tested on multiple narrow body bon fibers and ceramic, are applied to a train on the tracks, lot The survey also reveals
entity to transform their IT nitely take Fortis- parameters. Besides Fan besides innovative design - that companies have
functions, technology Wockhardt to establish new blade out, there is cold aircraft, called has been making its blades of energy is wasted. The firm is figuring become more transparent in
architecture, rationalise IT paradigm in Indian weather, heavy rain environ- Leap-X. bird-strike tolerant. Its out if this energy can be stored in bat- their communication with
solutions portfolio to adopt healthcare industry and ment, crosswind, and bird GE90 engine, in circulation teries and used for the running auxil- employees giving them a
world-class IT solutions, steer ahead of their rival strike tests. The Bengaluru since 1999, has had 38 bird sense of belonging. They
both on the enterprise and Apollo. centre currently simulates Engineering Centre’s hits thus far around the iaries such as the compressor and have also gone ahead and
bird hits and fan blade out Jaswinder Walia says. world but “zero distress”. cooling fans. The engine’s horse power adopted a higher degree of
Kapil Khandelwal is the founder-director of events. Computer simulations can Composite materials give requirement is thereby reduced. professionalism in their
Disease Management Association of India. “When a bird hits an accurately predict the fail- the same amount of dealings with employees as
engine, it is the relative ure of the blades and related mechanical properties as well as customers or sup-
pliers.
Another key finding is
Tech in starring role at NY Fashion Week
that more employees are
satisfied with the interest
shown by their companies
as well as their immediate
seniors in helping them
strike a work-life balance
JAN PASCHAL and shoppers to buy clothes from through technology.” With challenged buyers to buy compared to last year.
MARTINNE GELLER their phone. cable television and the well,” Leon said, noting that More employees believe
NEW YORK “This is the technology Internet, designers know that e-mail has given Opening that training has helped
that’s changing our lives,” their shows can be seen by Ceremony better access to them in their all round
Sept. 20: The Internet and said Kamali, who displayed many more people than just new designers. growth.
advances in technology are her spring and summer 2010 the buyers, editors and Designers, including those On the salary and com-
transforming fashion, mak- collection as well as exclu- media who attend, and in behind Proenza Schouler, pensation front, a surpris-
ing it easier for designers to sive lines for eBay Inc and some cases, they are design- are finding that technology ingly high number of
create collections and less Walmart.com at the Apple ing accordingly. can also help the actual employees feel that they
expensive for them to show store in Manhattan’s Soho “Back in the day, shows design work by allowing are being paid at par with
and sell their work, experts neighbourhood. were squarely aimed at edi- artists to explore new ideas industry standards com-
say. Kamali’s iPhone applica- tors and buyers mostly,” said and processes. pared to last year. — PTI
Instead of spending tens of tion has a “Try Before You Lazaro Hernandez, half of But Simon Collins, the
thousands of dollars on a Buy” option, which allows the duo behind the label dean of fashion at Parsons
runway show at New York clothes to be sent overnight Proenza Schouler. “Now, The New School for Design,
Fashion Week, some design- to a customer, who provides when you do a show, you said even though technology
ers presented collections for her credit card information, think about the fact that is helpful, there is still no
spring and summer 2010 so she can try them on at everyone’s going to see it on substitute for talent and hard
online, while others are home before committing to the Internet the next day. It’s work. “Absolutely, there’ll
expanding the reach of their buy. become much more demo- be people out there that have
brand by making it easier for Menswear designer Miguel cratic.” That democracy incredibly successful busi-
shoppers to buy their clothes Antoinne and womenswear goes both ways, according to nesses that don’t know the
online. designer Marc Bouwer both book adorned with a Tam New York Fashion Week, park could watch. Humberto Leon, co-founder first thing about (draping
Designer Norma Kamali put on virtual fashion shows, design. Mazdack Rassi, co- said he hopes to broaden the “It goes back to opening it of retailer Opening and construction), just think
and Polo Ralph Lauren while models at Vivienne founder and creative director reach of Fashion Week and up to the consumer,” Rassi Ceremony. “The Internet has it up, put it on the computer,
Corp’s Rugby brand both Tam’s show carried gold of Milk Studios, a hip down- was considering projecting said during a panel discus- really challenged buyers fire it off to the factory and it
have applications for Apple “digital clutches” — a town space that showed shows on the side of a build- sion on the future of fashion. because now information is works,” Collins said.
Inc’s iPhone that allows Hewlett-Packard Co net- about 70 collections during ing so people at a nearby “That can only be done everywhere ... it’s really — Reuters