In my previous post I discussed about the issues faced in CAD to GIS conversion when using basic utilities of ArcGIS. In this post I will discuss the route taken by me to convert a set of DWG files to SHP format. If you are working with a data pertaining to a large area or data with a large number of layers Data Interoperability extension for ArcGIS becomes very essential. While Data Interoperability can handle nearly 100 data formats, FME Desktop on which Data Interoperability is based on can handle 300+ formats. Whatever conversion you need these software have an answer - cad to gis (shp, geodatabase, kml , 3d pdf etc.)