We have a focused strategy to improve IT governance and future-proof our infrastructure against evolving digital threats: Badar Afaq, Group Head-IT, KCT Group

In an exclusive interview with Express Computer,Badar Afaq, Group Head-IT, KCT Group discusses the company’s digital transformation journey, emphasizing the integration of new technologies such as AI and IoT. The conversation covers the challenges of modernising legacy systems, balancing innovation with security, and managing change within a diverse workforce.The discussion also highlights strategic efforts to upgrade infrastructure and implement advanced solutions to improve operational efficiency and ensure secure business processes.

Here are the edited excerpts:

Can you take us through some of the recent digital initiatives that KCT Group has undertaken and their impact?

KCT Group, established in 1929, operates in diverse sectors like coal logistics, real estate, aquaculture, and financial services. Over the past year, we initiated several digital transformations across our businesses to improve efficiency and modernise legacy systems. 

In the coal logistics sector, we started digitising processes and we’re working towards implementing a full ERP system. Currently, we use multiple applications for logistics, finance, and sales operations. These efforts have significantly streamlined operations and boosted efficiency. 

In the financial services sector, we implemented tools like SharePoint for documentation and portfolio management. Our aquaculture business, which primarily exports seafood to the US and Europe, operates on an SAP ECC system, which we plan to upgrade in the next two years due to the upcoming end of its lifecycle. 

In real estate, we’ve planned to introduce customer-facing apps for managing complaints and visitor management. We’re also working towards integrating these systems into a more comprehensive ERP for improved management across our real estate portfolio, which includes properties in major metros like Delhi, Mumbai, Kolkata, Bangalore and Hyderabad.

What are some of the areas in which you are using generative AI? What is its impact?

We are not actively using GenAI yet, but we are in the early stages of implementing it. Our current focus is on integrating Microsoft Copilot across various businesses. Since much of our work happens on O365 and Microsoft Teams, Copilot will help streamline meetings, automate workflows, and improve decision-making, especially in departments like finance and sales. We’ve already started training employees on using the tool, and we anticipate seeing tangible results in the next two to three months.

The potential for AI is vast across all our sectors. For example, in finance, it could assist with automating data analysis and reporting. In real estate, AI could enhance tenant management systems by predicting maintenance needs and improving customer service through chatbot integration. In our aquaculture business, AI-driven insights could optimise supply chains and improve operational efficiency.Though we are at the beginning of our AI journey, we see a growing demand for AI across all business areas. It is not just a tool for automating tasks but also for driving innovation and improving overall business performance, which is crucial in our multi-faceted operations.

What is the current IT roadmap for your organisation?

The IT roadmap emphasizes complete digitisation and system integration across all business units to enhance efficiency and reduce costs. A major priority is upgrading legacy systems, such as SAP, to streamline operations and improve scalability. Businesses currently using siloed applications will be integrated into a unified ERP platform, offering end-to-end operational visibility and better data management.

Cybersecurity is a critical focus area. Recent initiatives include upgrading antivirus systems with advanced solutions like Managed Detection and Response (MDR) and Extended Detection and Response (XDR). Additionally, online backups have been rolled out for key users, and Data Loss Prevention (DLP) solutions are under evaluation to safeguard sensitive data. To further fortify security, a comprehensive vulnerability assessment is planned, and outdated firewalls have been replaced.

These steps are part of a broader strategy to improve IT governance and future-proof the organisation’s infrastructure against evolving digital threats, ensuring both operational efficiency and robust data protection.

What cyber security measures are you taking to ensure the security and integrity of your IT systems?

To safeguard our IT systems’ security and integrity, we’ve taken comprehensive cybersecurity measures. Our focus is on proactive IT governance aligned with the evolving regulatory landscape, particularly the new Data Protection Bill (DPDP) guidelines. This ensures that we safeguard sensitive data from vendors, employees, and customers across all business functions. While our exposure to cyber threats is lower compared to industries like retail or e-commerce, we recognise the importance of robust network security. Our websites are mainly informational, with no transactional exposure, but we remain vigilant about protecting our internal systems from potential threats.

We’ve invested in state-of-the-art security infrastructure, including upgrading our firewalls and network protection systems regularly. We’re also working towards implementing solutions like Managed Detection and Response (MDR) and Extended Detection and Response (XDR) to enhance threat detection and response capabilities. Additionally, we’re constantly improving online backup systems for critical users and evaluating Data Loss Prevention (DLP) tools to prevent data breaches. Cybersecurity is an ongoing priority, and we remain committed to maintaining a secure and resilient IT environment across our operations.

What new digital initiatives are planned for in the next six months to a year?

Over the next six months to a year, we have several key digital initiatives planned to enhance operational efficiency and modernise our infrastructure. A major focus is upgrading our legacy SAP system or exploring alternative solutions to streamline processes across the organisation. This is crucial for achieving better integration and cost optimisation.

In our real estate business, we are implementing a visitor management system that integrates with access control for better security and convenience, especially since we have multiple tenants across various properties. This initiative will also include upgrading our facility management system, allowing tenants to handle service requests online, automating many internal processes for smoother operations.

A significant project in the pipeline is the rollout of a comprehensive Building Management System (BMS). This system will integrate key infrastructure components, including HVAC, electrical systems, firefighting systems, and other essential equipment. Our goal is to centralise these systems across all buildings within the next year. In addition, IoT solutions will be deployed to track visitor movements and manage building activities, enhancing real-time monitoring and operational control across our real estate vertical.

Are there any additional insights you would like to share regarding your digital transformation journey?

Implementing cutting-edge technologies within a long-established organisation like ours presents unique challenges. Our workforce consists of both long-tenured employees and newer talent, which requires a balanced approach to managing change. Gaining stakeholder approvals and conducting thorough cost-benefit analyses are critical steps in our process. While technologies like AI and IoT offer immense potential, integrating them across all business processes while ensuring robust security measures remains a challenge.

For example, IoT in our real estate division, particularly in fire safety systems, offers significant operational benefits. However, if not properly secured, such technologies could expose us to substantial cybersecurity risks. Similarly, while we are exploring AI tools, including experimenting with ChatGPT, it will take time to fully integrate AI solutions that align with the specific needs of our industry. We remain optimistic about the possibilities and are actively working towards implementing these technologies in a secure and efficient manner to drive future growth and innovation across our business verticals.