Interface magazine – Issue 14 by B2e Media

Issue 14 | www.theinter face.net

Five opportunities that COVID-19 has created for the digital banking sector

A Matter of Trust Interface Magazine speaks to Chad Kalmes, Vice President Technical Operations at PagerDuty, to see how the SaaS digital operations management pioneer is supporting digital transformation around the globe

MAGA ZINE

A digital transformation with the customer at the centre

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WELCOME TO ISSUE 14 OF INTERFACE MAGAZINE! This month’s exclusive cover story follows the work of Chad Kalmes, Vice President Technical Operations at PagerDuty, to see how the SaaS digital operations management pioneer is supporting digital transformation across the sectors and around the globe… Plus, we speak to Alessandro Crisci, Senior VP of IT for Amplifon Americas, who talks digital transformation and how an aging population is more digitally enabled than ever before PagerDuty is a real-time digital operations company whose platform supports a lot of critical real-time use cases for its

EDITOR IN CHIEF Andrew Woods

customers by sitting at the heart of whatever technology

EDITOR

ecosystem that particular customer is using. PagerDuty responds

Dale Benton

to signals and data from all the different software applications and systems in that environment and helps to proactively and intelligently understand when something is not working

SOCIAL MEDIA MANAGER Callum Rivett

appropriately. The platform then helps customers to focus

CONTRIBUTING EDITORS

resources in a real-time manner to solve those problems, before

Nell Walker Kevin Davies

they actually become issues or outages. The company is on a dramatic growth curve, with a raft of big-name clients such as Netflix, Peloton, DoorDash and Amex. “I joined PagerDuty about a little over two years ago to help them on that journey

CREATIVE LEAD Mitchell Park

change to make them more successful, and getting them on that

VP GLOBAL FINTECH & INSURTECH

path toward public company readiness and ultimately the IPO

Alex Page

of maturing their processes, thinking through what needed to

last year,” he tells us. Elsewhere, we catch up with digital guru Paul Bailo, to kick off a trilogy of digital transformation masterclasses. Plus, we list the

VP TECHNOLOGY Andy Lloyd Craig Daniels

top five opportunities that COVID-19 has created for the digital banking sector… Enjoy the issue!

VP PROCUREMENT Heykel Ouni Greg Churchill

PRESIDENT & CEO Kiron Chavda

ndrew Woods, Editor in chief A content@b2e-media.com

PUBLISHED BY

CONTENTS

PagerDuty

6 Amplifon

32 How financial infrastructure providers are changing the way banking services are accessed and delivered

Paul Bailo â&#x20AC;&#x201C; Be human, have vision, stay curious

Five oppertunities that COVID19 has created for the digital banking sector

WRI T T EN BY PRODUCED BY

Andr ew Wo o d s Cr ai g D an iels

ever has the pace of technological change been this fast and, going forward,

this slow, ever again. Every industrial sector is undergoing constant shifts and revolutions allowing them to compete, succeed, survive and thrive. There is an increasing reliance on technology at every turn and this ongoing movement toward digital operations has created a myriad of opportunities for business and products that can enable and enhance these shifts in operations. PagerDuty is a real-time digital operations company whose platform supports a lot of critical real-time use cases for its customers by sitting at the heart of whatever technology ecosystem that particular customer is using. PagerDuty responds to signals and data from all the different software applications and systems in that environment and helps to proactively and intelligently understand when something is not working appropriately. The platform then helps customers

incredible ROIs. Chad Kalmes is Vice President,

to focus resources in a real-time manner

Technical Operations at PagerDuty and

to solve those problems, before they

an experienced technology executive

actually become issues or outages. The

and management consultant. Kalmes

company is on a dramatic growth curve,

was drawn to PagerDuty in 2018 just as

with a raft of big-name clients such as

the company was advancing towards

Netflix, Peloton, DoorDash and Amex; no

an IPO. â&#x20AC;&#x153;I joined PagerDuty about a little

small wonder when its platform can offer

over two years ago, now, when they

PA G E R D U T Y

were just starting to make that turn from

PagerDuty is a cloud computing

a true start-up to a public company.

company that produces a SaaS digital

I joined to help them on that journey

operations and incident response plat-

of maturing their processes, thinking

form for customers to enable real-time

through what needed to change to make

support to across their operations. As

them more successful, and getting them

of 2018, the company had raised over

on that path toward public company

$170 million in venture funding and

readiness and ultimately the IPO last

has been recognized by Forbes on its

year,” he tells us.

‘Cloud 100’. Within the realm of digital w w w.t h e i n t e r f a c e . n e t

A major partner in PagerDuty’s success is the world’s leading CRM provider Salesforce, which is helping global sales teams during these uncertain times… Sales had been undergoing a digital transformation for a while prior to the advent of COVID-19, which has greatly accelerated this shift as human contact shifts from face to face, into screen to screen. A more challenging aspect to sales in the ‘new norm’, however, is not directly related to the conversations and interactions that seal the deal… Where there are opportunities for improvements beyond the initial selling process is not actually in the selling part, but everything after. “When you think about the quote-to-cash flow, the approvals of the deal desk, the pricing, the legal reviews and negotiations; they’re all operational, legal and financial functions, which, for the most part, are in-office operations,” explains Pascal Yammine, Senior Vice President & General Manager of CPQ & Billing at leading CRM provider Salesforce. “But now, they have to find a way to work in a remote model they’re definitely not accustomed to. And so, what we’re seeing as a result, is a much heavier push towards automation and intelligence to make those processes easier.” Questions sales teams may be asking right now, could be: “How do we automate the approval process? How do we use data to be more intelligent around knowing when to approve, and when not to approve, things? Or, what’s missing in terms of the order form?” According to Yammine, these are the areas where we often underestimate the complexity of working from home, or within remote operations. “That’s a big area for our customers to focus on.” “The hard part of ‘going digital’,” says Yammine, “means acquiring agility, flexibility and speed to change. Seeing how customers have been able to quickly adapt their business processes with new capabilities while keeping

people home with technology has been amazing,” he enthuses. “What’s really compelling for me is the agility that the Salesforce CPQ & Billing platform has provided companies in their business model. Customers who made the shift to recurring revenue subscription models three or four years ago, implemented Salesforce to help them through that three to four-year journey. And this year we’re seeing companies do it in a matter of months because they’ve had to. Not only are they able to adapt their business and their metrics, but they’re also able to adapt their business model. This platform has allowed them to stay healthy and actually excel during these times. That agility we’re seeing in the world is amazing to me. It’s one of those areas where you don’t know how much you can do until you’re forced to do it. And here at Salesforce, we’re thrilled, honored and humbled to be a platform for change.” Salesforce is also providing much needed support to enterprises for life ‘postCOVID-19’ with Work.com; a suite of apps that helps companies monitor their return-towork readiness, focusing on the logistics surrounding health and safety in the workplace and the staff who inhabit those spaces. “The focus of that suite is to arm stakeholders around the world with tools that help them handle the situation and get staff back to work safely,” says Yammine. “Because again, there’s no playbook for that and we’re learning and adjusting as we go.” So, with Work.com, and CPQ & Billing, Salesforce is providing an essential flexibility to the business model, by not only getting people back to work, but by also helping them to actually grow and optimize their revenue as we all look towards a brighter future.

transformation and the subsequent oper-

for building, maintaining, and supporting

ations, PagerDuty sees itself as Digital

those environments need to operate as

Operations Management, making sure

effectively as possible by responding to

that clients can get the right resources

problems as they arise.”

to tackle a problem as quickly as possi-

For companies that move to a DevOps

ble, and minimize the ultimate impacts to

engineering approach where the engi-

its business and its own customers. “So,

neers build, ship, operate, and maintain

the first use case, or where we typically

their code directly, or in traditional IT

find our initial traction with customers is,

operations organizations where there

maybe somewhat obviously, in depart-

are different functional groups within IT,

ments like Engineering or IT,” Kalmes

one of the biggest costs or risks comes

explains. “Essentially, those teams that

from downtime that either impacts your

are plugged into the digital ecosys-

customer’s ability to transact with you,

tem at their company. In the DevOps or

to access your services, to do what they

ITOps spaces, the teams responsible

need to do, or it shuts down an internal

“At PagerDuty, we know that we have to be at our best when our customers are at their worst” —

CHAD KALMES, VICE PRESIDENT TECHNICAL OPERATIONS, PAGERDUTY

PA G E R D U T Y

business function, which again, has

positioned to do. And so rather than

costs operationally. “I think one of the

having them just sitting around, staring

really powerful benefits of our platform

at a screen or waiting for the phone to

overall is that we’re not trying to take

ring, we only bring that to their attention,

humans out of the equation. We real-

or involve them, when it’s necessary, and

ize the value of humans, but we want

not when they’ve got a lot of other valu-

to apply them in the most effective and

able things they could be doing for the

value-add manner possible,” he says. “I

organization.”

think a lot of companies only really want

One of the tenets Kalmes holds dear,

to bring in the experts, the humans into

from his previous consulting roles, as

the equation, when you actually need

well as his current position at PagerDuty

them to take action on something, or

is People, Process and Technology. “It’s

to apply critical thinking or judgment,

a very simplistic model, but still a good

to make changes to something that

way to think about tackling any chal-

really only a human is probably best

lenge or problem,” he explains. “The

w w w.t h e i n t e r f a c e . n e t

order of those three points is important

they try to find a way to make it work,

as well. People is there first because

versus going the other direction with

I do think, ultimately, any successful

their decision making. While, the People,

company, strategy, program is only as

Process, Technology approach is very

good as the people you’ve got power-

simplistic, I think it’s also very powerful

ing it. And so making sure you’ve got the

because it gives you a framework for

right people in the right roles with the

thinking about things in a way that sets

right skillsets before you hit Go is really

you up for success if you do it properly.”

foundational. Process being the second

According to Kalmes, PagerDuty’s

part there, addresses the need to take

ultimate goal is to liberate people to

a step back and make sure you under-

do their best and most valuable work.

stand the problem you’re trying to solve

“Ultimately, that applies to every function

and what the end state you’re trying

in the organization,” he explains. “If I look

to get to, is. You have to have a very

at how we apply the platform internally in

clear vision for what that strategy and

our own operations, we have critical deal

approach needs to be before you start

flow and operational procedures in the

to move on to technology, which is the last point.” Technology is of course integral to the decisions you make and how enterprises implement change. “If you’re starting from a strong foundation of the right people and the right approach and strategy, the technology should largely become somewhat secondary, and it’s really just there to improve and enhance the other decisions you’ve already made along the way. And I think where I’ve seen companies go off the rails or struggle is when they start with the technology. They find a cool tool or a piece of software they think is interesting, and 14

PA G E R D U T Y

“…letting perfect be the enemy of good is one of the worst things you can do.” — CHAD KALMES, VICE PRESIDENT TECHNICAL OPERATIONS, PAGERDUTY

organization where, if we’re trying to rapidly close a big deal or if certain service SLAs get out of appropriate bounds, we can make sure that we get people in realtime to focus on unblocking or fixing whatever is slowing that process down.” Ultimately as more and more functions in an organization become digitally enabled or digitally driven, there’s a story or a value-add use case for PagerDuty in those scenarios. PagerDuty adds more and more features over time to bring things like machine learning and automation increasingly to its customers, “that just helps speed up that decision making and that human interaction even more”. By focusing that response, PagerDuty can make companies far more efficient in what they do, and that of course raises the eyebrows at every strata of a company’s hierarchy. One study with IDC showed that over a three-year period, the company’s customers saw a 731% ROI, and an initial payback of their investment w w w.t h e i n t e r f a c e . n e t

in PagerDuty in as little as four and a half months. For many emerging organizations growing by 10-15% a year, they will definitely experience strains on its technology stack and operating environment. “They will then need to try to find efficiencies and ways to keep growing,” Kalmes reveals. “This is also particularly integral at companies at the start of that growth journey, pre-IPO to post-IPO where they’re growing at a 40-50% clip. And if you look at most companies, one of their largest expenses is ultimately headcount. Even small, incremental improvements in how you can make employees better and more effective at their jobs, and make sure that they’re spending time on the most value-add services they can provide, can have a big impact on the bottom line. That’s ultimately the power of what our platform brings to the table, and I think that’s reflected in that ROI study.” As companies experience growth, a genuine flexibility in operations becomes essential, and it’s that particular facet that appeals to Kalmes. “I think it’s a really interesting problem to try and tackle. I like that kind of challenge. You try to do yearly planning and have a roadmap of three to five years out, but you have to shift and adjust those plans on a quarterly basis, if not more frequently than that, to make sure you are continuously right-sizing your investments, your strategy, your operations, your technology stack to get you that agility you need to keep growing at that pace.” One sector PagerDuty is seeing a lot of potential in is finance and fintech. “If you look at how a lot of really big banks, investment firms, financial institutions operate, they’re still very tied to a traditional, in-office 16

PA G E R D U T Y

w w w.t h e i n t e r f a c e . n e t

“Even small, incremental improvements in how you can make employees better and more effective at their jobs… can have a big impact on the bottom line. That’s ultimately the power of what our platform brings to the table” — CHAD KALMES, VICE PRESIDENT TECHNICAL OPERATIONS, PAGERDUTY

culture with a lot of homegrown inter-

manner, without sacrificing that security,

nal systems that they’ve spent years

those controls, and the privacy protec-

building layers of security and walls of

tions they’ve put in place. I think that,

protection around, due to the very sensi-

as an industry transformation, it’s really

tive data they’re dealing with. But at the

interesting and exciting because it’s so

same time, the world is forcing them to

pervasive, and I think it’s just still so ripe

rethink how they can be more agile and

for potential improvement.”

flexible, and meet the demands of their

The customer journey is certainly seen

customers who are probably chang-

as a major selling point for PagerDuty

ing decisions or making decisions a lot

when attracting and servicing its clients.

faster and want a lot more access to

Its client journey enables customers

real-time information and services. All of

large and small, regardless of size, to

those institutions have to find ways to do

interact with PagerDuty in a way that’s

what they’ve done historically, but in a

purely digital. “We self-serve a lot of

faster, lighter-weight, more digital-native

their needs directly on the platform,”

PA G E R D U T Y

Kalmes explains. “And so if you’re a really small company and have a hand-

your business around is critical.” Kalmes, a man with extensive expe-

ful of users and very basic needs, you

rience from working in professional

can go to our website and get up and

services cites the importance of ‘influ-

running in a matter of seconds. If you’re

ence’ when liaising with clients. “As

a larger organization and you want to

a consultant you don’t have the abil-

do a little bit more due diligence, you

ity to go in and force a company to

want to go through the traditional sales

do anything,” he says. “You’re not an

cycle and process, we can support that

employee there, you’re not a manager

as well. Very early on, we identified that

or a leader… However, you want that

Salesforce, as a platform and an ecosys-

company to improve, to get better, to

tem, was going to be a huge part in our

fix the problem they came to you with

journey and our real-time capabilities in

and you have to do that through influ-

that space. Finding those ‘foundational’

ence. You have to show them the value

partners and platforms that you can craft

of changing, which is hard. I don’t think w w w.t h e i n t e r f a c e . n e t

many people like change, but it’s critical to be increasingly good at changing. And you really have to do that through influence. So, it’s building relationships, it’s illustrating that you know the business and what they’re trying to accomplish, and then laying out a clear path or framework for them to get better over time.” Change management and the shift in work culture is a challenge but it’s a notion that PagerDuty thrives on when dealing with its strategic interplay with clients. “I think a core cultural aspect we have, is of questioning everything and not letting decisions of the past dictate how we react today - I think that’s critical. Facebook is famous for its ‘move fast and break things’ methodology.

versus making a good decision and then

While I think we’re probably not quite

being able to rapidly adjust and iter-

that cavalier, and even Facebook has

ate on that. As a company, we’re open

walked back from that a little bit, we do

and willing to take chances and go with

see the value in bringing a lot of diverse

something that we think is directionally

perspectives and experiences to the

good and iterate along the way, that’s a

table, and quite frankly in freeing people

competitive advantage at the end of the

up to try new things. Not all of those

day because we can move in a direction,

experiments or innovations are going to

make a few adjustments, and probably

be successful, but letting perfect be the

get to a pretty close to perfect solution

enemy of good is one of the worst things

much more quickly if we just get going

you can do. I think there’s a lot of traps

and get momentum on our side.”

that companies can fall into. Paralysis

Nowhere has the value of companies

through analysis and getting too caught

such as PagerDuty been felt than during

up in trying to make the perfect decision,

the global pandemic of COVID-19 as

PA G E R D U T Y

companies have experienced remote

“Those companies have already

working and increased demand on digi-

thought through how they’re optimizing

tal offerings and operations. “I would

their operations and their technology

bet that the companies that are weath-

to power their business, and can make

ering this storm the best, that made the

those adjustments and changes as close

fastest shift from a work-in-office envi-

to real-time as possible. I think those

ronment to a work-from-home environ-

organizations were probably some of

ment, in some cases almost overnight,

the first to almost flip a switch and let

are those that were further along in their

their people work from home without

transition to digital operations. They’re

any hiccups. They’re probably also the

probably also those companies that will

ones that were immediately questioning,

not only weather the storm but come out

planning, forecasting what the impacts

stronger, better, faster, at the other end

of COVID-19 were going to be on their

– those that are more digital-native than

operations. They’re looking at all the

their competitors,” he explains.

metrics of their business in real-time and w w w.t h e i n t e r f a c e . n e t

understand what they have to do in order to adjust to meet their customers where they are today in light of the current environment. I think, again, the companies that are the most agile and the most able to adjust will probably continue to grow despite macroeconomic impacts and will probably come out the other end stronger.” A key part of PagerDuty’s relationships with its clients comes down to one simple, yet priceless word: trust. “Without it, there really is no business to be had,” Kalmes says. “Trust in the SaaS space, especially enterprise SaaS where it’s businesses relying on you to power part of their operations, trust is the number one thing you ultimately sell. You can have the greatest features, the coolest product, a really novel approach to something, but if ultimately you’re not a trustworthy company, you don’t operate in a manner that’s transparent and gives a sense of reliability and safety to your customers, they’re not going to trust you with the most critical workloads, the most critical processes and operating elements of their business, because it’s too important to what they do. At PagerDuty, we know that we have to be at our best when our customers are at their worst. That is a burden and a duty that we do not take lightly. So, I definitely can’t stress enough how critical trust is to that equation. If you don’t have that trust, I don’t think you’re going to be in business for very long.”

PA G E R D U T Y

Chad Kalmes Vice President Technical Operations at PagerDuty Chad is a proven executive with over 20 years of technology, security, and consulting experience. Throughout his career he has worked with companies to strategize, innovate, and implement successful operations for hypergrowth, public company readiness, and sustainable long-term scale, building successful teams spanning IT, Production Operations/Engineering, Security and Compliance, Business Intelligence, and Program Management.Â Chad was the top IT executive at both Twilio & PagerDuty and successfully led both through their IPOs. He currently serves as the head of Risk Management & Technical Operations at PagerDuty, the leading SaaS platform for real-time digital operations management and incident response.

w w w.t h e i n t e r f a c e . n e t

How financial infrastructure providers are changing the way banking services are accessed and delivered When faced with maintaining legacy IT systems or investing in new ones, costs can be prohibitive for both â&#x20AC;&#x201C; so how do financial institutions handle it?

WRI T T EN BY Ander s l a C our, C o - Fo u n d e r a n d

Chi e f E xec ut i v e O f f ic e r o f B a n k in g C ir c le

aintaining legacy IT systems is

between a rock and a hard place; do

cumbersome and expensive.

they risk getting left behind by relying on

However, for those looking to

legacy systems, or take the plunge into

invest in new processes the costs can be

the potential unknown of new systems

even more severe. For example, it was

development?

recently revealed by Euromoney that

There has, however, been a growing

for payment and banking organisations,

recognition that the banking industry can

investment could be anywhere between

benefit from the utility model. Specifically,

15%-25% of a typical annual budget. Itâ&#x20AC;&#x2122;s

the shift many utilities have been going

therefore unsurprising that many finan-

through, from a do-it-all to do-only-what-

cial institutions find themselves stuck

you-can-do-well approach. This means

ANDERS LA COUR

that the need for banks and other financial businesses to build and maintain their

A growing demand for better infrastructure

own infrastructure is reduced. Instead,

A problem facing many payment and

they can focus on what really matters -

banking businesses is an increasing

their relationships with the end customer.

demand for cheaper, faster, more effi-

Although it meets the basic criteria of

cient payment services. Unfortunately,

a utility, the banking industry has never

existing infrastructure rails are often too

traditionally operated via such a model

slow or simply unable to adapt to this

â&#x20AC;&#x201C; until now. Times are quickly changing,

new challenge. Potential customers look-

and financial infrastructure providers are

ing to access such products are there-

emerging to plug the gap.

fore forced to look elsewhere. w w w.t h e i n t e r f a c e . n e t

On top of this, investing in brand new financial infrastructure can be cumbersome and costly. Many businesses simply lack the funds or experience to invest. With many already struggling with a lack of profitability, itâ&#x20AC;&#x2122;s unsurprising that forming a partnership with a financial infrastructure provider that understands the intricacies of payment and banking processes, and that can facilitate this infrastructure roll-out and management on their behalf, is seen as beneficial.

Working in partnership By enabling services to be managed by a financial infrastructure provider, banks and financial services will see a host of benefits. Not only are costs significantly cut, but time that would often be spent managing these processes can be diverted to other more important areas of the business. This means organisations can shift focus to securing additional market opportunities, aligning closer with customers to identify their pain points and offering a better service. By focusing on the wants and needs of the end customer, organisations will understand the individual expectations of each client and how to better serve these, ultimately helping the business to invest in the right areas and maintain growth. In an era of growing competition from emerging fintech players, it is crucially important that more traditional organisations improve their focus on the demands of their customers.

Remaining compliant On top of these benefits, thereâ&#x20AC;&#x2122;s also the issue of maintaining regulatory compliance. Balancing compliance 28

ANDERS LA COUR

“ By enabling services to be managed by a financial infrastructure provider, banks and financial services will see a host of benefits” —

NDERS LA COUR, CO-FOUNDER AND A CHIEF EXECUTIVE OFFICER OF BANKING CIRCLE

w w w.t h e i n t e r f a c e . n e t

with regulation is a continuous chal-

diligence, transactions monitoring, sanc-

lenge, and as more regulations arise

tions screening and event-driven reviews.

cross-country it has become a real test

Supporting customers for the future

for anyone operating in the market to

As SMEs look to offer their end custom-

remain fully compliant.

ers easier, more flexible payment solu-

Fortunately, through working with a

tions over the next few years, payment &

financial utility partner, the CTOs and

banking providers will need to make sure

compliance officers of payment companies

they have the innovative processes in

and banks can sleep soundly knowing that

place to enable such services.

the right due diligence has been carried

If these providers do not have the right

out and maintained. Elements to look out

infrastructure in place, and are therefore

for when selecting the right infrastruc-

unable to support the real-time, cross

ture partner should include ongoing due

border faster payment requirements, they

ANDERS LA COUR

could quickly see their customer base move to competitors that can. Banks and payment companies have

best services, to competitors. It appears obvious therefore that transitioning towards a utility model, where

historically remained largely responsi-

organisations delegate their architec-

ble for the infrastructure that powers

ture and maintenance to financial utilities

their services. However, a rise in costs

is the way forward. This model not only

and complexities is making this a tall

cuts costs, but frees up valuable time

order in todayâ&#x20AC;&#x2122;s climate. Many organisa-

and resources for them to focus on what

tions, stuck with underachieving legacy

really matters: improving the experience

systems want to upgrade, but simply do

of the end customer.

not have the funds or technological nous to do so. This means many risk losing customers, intent on having access to the

w w w.t h e i n t e r f a c e . n e t

Digital Alignment: A digital transformation with the customer at the centre Alessandro Crisci, SVP of IT for Amplifon Americas, talks digital transformation and how an aging customer base is more digitally enabled than ever before...

WRI T T EN BY

D al e Bent o n

PRODUCED BY

Cr ai g D aniels

he role of the CIO and the significance of an IT function has changed dramatically. Given the rise of digital solutions, digital transfor-

mations and the digitalisation of business, this comes as no surprise. No matter the industry, no matter the market specialization, the challenge for any business remains the same - serving the customer. The customers of today, and the customers of tomorrow, demand seamless experiences and digitally enabled interaction with their service providers. These demands are constantly shifting and so businesses over the world continue to radically shift their internal IT infrastructures to enable a level of agility and resilience that fosters innovation and allows them to continue to better meet the needs of this evolving customer base. “The world around you is constantly evolving thanks to new technologies and new market challenges; your customers are changing too,” says Alessandro Crisci, Senior VP of IT for Amplifon Americas. “There is a major generational change happening and so whatever you were prepared to face five years ago has changed quite a bit. “Every company has to continually adapt to be relevant in the market and to be relevant to the customer, whoever they are.” Amplifon is the leading global provider of solutions and services in the hearing care space. With more than 10 million customers worldwide, Amplifon provides a number of services ranging from comprehensive hearing tests, consultation on hearing aid solutions, fitting of hearing devices, and hearing care assistance. With more than 10,000-point of sales (POS), and 17,000 people across all 34

AMPLIFON

five continents, the challenge of meeting

clinics and stores) and Amplifon Hearing

the changing customer base is amplified

Health Care (managed care space serv-

significantly.

ing members of insurances, employers or

Crisci is the SVP of IT for Amplifon Americas, which is made up of four key brands; Amplifon Canada (business to

associations that are providing hearing aid benefits to their members). Through his role, he serves all four of

consumer retailer), Miracle-Ear (the larg-

the brands with a shared and unified IT

est brand made up of franchisee and

team. “I am here to drive the digital trans-

corporate-operated clinics), Elite Hearing

formation of Amplifon in the Americas

Network (offering services to independent

Region,” he says. “It’s important to w w w.t h e i n t e r f a c e . n e t

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U N D E R S TA N D I N G E Q A N D H I R I N G F O R I T I N A P O S T- PA N D E M I C W O R L D

recognize that this is not just an IT journey,

to a digital transformation, and Crisci is

it’s a joint journey. We are transforming the

keen to highlight the one true common-

company in the way we operate, and we

ality in any journey. “It has to be relevant

are doing it in conjunction with all of the

and start from the customer,” he says. “At

business.”

the end, we transform to better serve our

This transformation aligns to a broader

customers. A transformation done just for

global journey of Amplifon called One

the sake of adopting technology does not

Amplifon Transformation, which will see

make sense.

the company truly align and leverage all of

“We look at all the aspects of the

its global assets, solutions and ‘know-how’

customer journey and customer experi-

while still remaining relevant to its local

ence and we define a roadmap based

markets.

on what is relevant for them. Then we

The term ‘digital transformation’ is

have regular alignment discussions with

incredibly overexposed and, with it, comes

all business unit leaders, and corporate

a key challenge in trying to define what it

and global colleagues, and we execute

even means for a company. Each company

against them. That’s the basis for this

has its own focus, priorities and approach

transformation.”

w w w.t h e i n t e r f a c e . n e t

Placing the customer at the very centre

old. We found that even if you think they

of the transformation sounds simple

are unfamiliar with digital channels, that’s

enough on paper, but to maintain this

not actually true; a good portion of them is

approach requires a constant dialogue

very active on the digital channels.”

with the customer and keeping a close

This has forced Amplifon Americas

eye on the market. This allows the busi-

to think a little more about its own digi-

ness to ensure that any decision it makes

tal channels and recognize and iden-

is made with the customer’s needs and

tify a number of key ways in which it can

expectations in mind.

improve and better serve this customer

“As a company, of course we observe

base. Crisci is keen to highlight that as

the market. We observe the trends, and

Amplifon has such a huge global network,

we make our own studies,” he says. “One

some of which are further along this digi-

thing that we’ve found particularly inter-

tal maturity curve than others, he can

esting about our customer base is that

tap into and leverage best practices

normally they are around 60-65+ years

and successes from them. This proves

Conduent brings more precision to paying claims. Returning more than $750M a year to health plans

AMPLIFON

“It’s important to recognise that this is not an IT journey, it’s a joint journey. We are transforming the company in the way we operate, and we are doing it in conjunction with all of the business” —

ALESSANDRO CRISCI SVP OF IT FOR AMPLIFON AMERICAS

essential when establishing businesses

piece.”

cases for digital solutions, as opposed to

Amplifon Americas’ digital journey

simply following the digital trends in the

looks closely at three different areas:

markets.

digital interaction, the evolution of hear-

“You need to be aware of technology

ing aid products and the transformation

and to study both your market and the

of systems and technology to enable its

other businesses to see what is available,

people to serve the customer better. As

especially when the investments are large

Crisci noted above, the majority of the

and they change how your business oper-

customer base sits in the 60-65+ age

ates,” says Crisci.

range but market evaluation recognized

“It’s very important that you have solid

that both this group and the younger

business case study. There are some

55-60 age group are digitally active,

things you can try and pilot; a quick solu-

and so digital interaction becomes a key

tion that you can put there and see if it

priority.

works. When we invest in technology,

The company has invested in overhaul-

we have to start by asking how we can

ing its websites and the experience, capa-

better serve our customers. We try to look

bilities and the functionalities behind them

end-to-end and at the customer journey;

as well as launching a branded mobile

what they will experience? How can we

app. “We also looked at the digital inter-

provide a better experience? Or better

action not just with our end customer, but

products, solutions and a better service?

with our partners,” says Crisci. “Here we

We then try to define the technology

launched new portals to be able to interact w w w.t h e i n t e r f a c e . n e t

AMPLIFON

digitally with our providers. With custom-

channel. “Audiologists and hearing care

ers, we now have a scenario where they

professionals are at the centre of our

can go on our website or app, find a store

customer experience, and they need to

close to them, book an appointment, and

be enabled with tools and capabilities to

schedule a consultation online.”

provide an excellent experience,” he says.

As a market leader in hearing care

He envisions a situation where a customer

services and solutions, Amplifon does

enters a store and the shop or clinic

not actually manufacture hearing aids. It

personnel know who that person is and

works with partners to make hearing aids

knows in advance what issues they might

available on the market and provide new

have if they use a hearing aid.

solutions to the customer, which are more

To achieve this, Amplifon focuses on

advanced and more connected. Falling

the digitalization of enterprise processes

under Amplifon America’s largest brand,

and customization of the experience:

Miracle-Ear, the company launched an

“The more you streamline your enterprise

initiative called the Miracle-Ear Product

processes, the more precise, timely, and

Experience. This is a comprehensive prop-

reliable you are in serving” he says. “As per

osition for its customer, which encom-

providing a personalized experience, this

passes both the technology solution

means you look at an increasing number

(hearing aids) and services like hearing

of data and truly know your customer,

care and support. “This proposition is fully

because if you know your customer, then

connected,” explains Crisci. “Your hear-

you can provide better services because

ing aid is connected through your mobile

you understand their challenges.”

app and can be connected through other

Evidence of this can be seen in how

devices in the house. You have a fully inte-

Amplifon Americas has worked to improve

grated journey, and you can also provide

its capability as a third-party administra-

care to the customer. Remote care is a

tor in the managed care space. These

growing trend, so this is becoming more

improvements allow the company to seam-

relevant to Amplifon.”

lessly integrate with large payers like insur-

For Crisci, the third area is very impor-

ers and employers to be able to better

tant, and for him it’s a case of enabling

serve their members, be more respon-

Amplifon’s people to serve the customer

sive and streamlined and have immediate

better, irrespective of the customer

access to the right information. This can w w w.t h e i n t e r f a c e . n e t

include what benefits they have or what process and even what insurance claim they might have. Amplifon Americas can now do this much more effectively in an integrated and automated way. Elsewhere, Amplifon Americas has also launched its One Big Data program, which allows the company to have a comprehensive view of its customers, including visits to any of its clinics as well as what their purchases are. On top of that, thanks to the integration with the mobile app, the company can understand if they are using their hearing aid effectively and can assist them in optimising their distinctive experience. “Ultimately, the aim of this is to have a better understanding of what the customer needs in order to serve them better,” adds Crisci. “We can use this to offer the best solution to fit their needs and provide them with counselling and care throughout the journey so that they make the best use of it.” One can be forgiven for thinking a journey like this is a simple and pain free experience, thanks in part to the great successes achieved so far. But, as we all know, technology breeds great opportunity and great challenge and no company is immune to these challenges. For many, a key challenge is buy-in. After all, a transformation brings change and some 42

AMPLIFON

w w w.t h e i n t e r f a c e . n e t

AMPLIFON

may not feel the need for change. “Any

work and deliver results and prove that

successful transformation is successful

he is doing the right thing. Having experi-

only to the extent that it’s fully embraced

enced success helps the conversation but

by the team,” he says. “I think it’s manda-

you have to continuously work to engage

tory, and a pillar of your transformation

and stimulate your team, and the entire

should be to continually promote and

organization. “Apart from the buy in of the

explain the journey, and to have ambassa-

business, a transformation is resource

dors promoting the idea and the change

demanding and intense,” he says. “Seeing

through the organization.”

results and seeing the fact that they are appreciated helps build the morale of the

“There’s also the need to integrate your transformation journey with the running

team,” he says. “That’s an important aspect

of your daily operation,” he adds. “You

too, where I work a lot with my team in

have to serve your customers on a daily

getting suggestions from them on which

basis, all while running a transformation.

type of communication, interaction and

I don’t think there is a secret sauce here

discussion they want to have. That’s some-

to face this, but you have to carefully plan

thing we work a lot to be all aligned in this

resources and not underestimate the

journey.” Aligning and energising the people is

importance of knowing which people you

something that Crisci and his team are

need to do what.”

incredibly proud of.

With a digital transformation, there is no

“The team that I have today has signifi-

clear end in sight. Businesses find themselves in a continuous evolution and Crisci

cantly evolved from the one I met almost

is one of many who must continuously

two years ago when I joined,” he says.

“A pillar of your transformation should be to continually promote and explain the journey, and to have ambassadors promoting the idea and the change through the organisation” —

ALESSANDRO CRISCI SVP OF IT FOR AMPLIFON AMERICAS

w w w.t h e i n t e r f a c e . n e t

ALESSANDRO CRISCI SVP OF IT FOR AMPLIFON AMERICAS

“There is a good part of the team which is

cannot be achieved alone, and Amplifon

still the same, but with a different energy

Americas works closely with a number of

and interest. There are people who are

partners on this journey. Some of them

energized talking about new technol-

have been partners for a long time, and

ogy and a new role of IT in the company.

others brought in specifically for this

They are passionate about learning and

journey.

evolving.”

Crisci is keen to highlight a few that he describes as, “the backbone to providing

Vendors and partners A transformation is something that simply 46

AMPLIFON

services to our customers”.

A time of crisis

“Think about the journey we are doing.

At the time of writing, the world has been

We are transforming the way we run our

gripped and devastated in many ways

operations. To us, it’s very important that

by the COVID19 pandemic. For business,

the partners bring their experience and

this has been a time of uncertainty and

perspective. Have honest, constructive

opportunity and Crisci is quick to highlight

and open conversations,” he says. “It’s

that the strength of these partnerships

much easier to deal with partners, where

(coupled with the work completed so far)

you can talk straight, you can have an

has been key for Amplifon Americas to

honest conversation, you can give feed-

remain strong throughout.

back to each other, and we can improve w w w.t h e i n t e r f a c e . n e t

together. I think that’s the type of partner that we of course look for, and those are the partners we try to work with.” The next few years will see increased optimisation of the IT infrastructure and it will also see a degree of harmonisation, bringing the best practices from one brand into the others; aligning the people, and the businesses, together. Crisci reflects on what has been key to success for him and what will remain key moving forward - is it the best technology? Or is it investing great deals of money? “It’s simple: listen to your customer,” he says adamantly. “I have a lot of internal customers who I work in partnership with and we have a lot of mutual trust. For a transformation it’s about managing the change, the priorities, the team and the organization “If you openly discuss with everyone and manage it together and if you work in partnership and align on the priorities, then you are achieving success from the very start.”

Ricoh IT Services “We have a complex, IT infrastructure, some of which is in the public and private cloud space. Ricoh supports us in managing our private cloud and the data center infrastructure. We started a journey with 48

AMPLIFON

them to increase virtualization to our scalability. That’s very instrumental for us: for our ability to expand, to better serve our customers, to be able to operate at speed, and to be reliable.”

Sycle.net, “They provide the solutions which we use in the clinics to handle patient care, so they are a critical part of our infrastructure. We want to provide an omnichannel journey for our customers. If you come from a digital channel, or you’re going to the shop, or you use our mobile app, the interaction you have with us is visible and is consistent across the channels. They are the master of our customer data and if you take an appointment from the web, it’s synchronized and it’s visible in the store, and our hearing care professional can serve the customer better. They’ve been instrumental here.”

w w w.t h e i n t e r f a c e . n e t

Be human,

have vis

stay curious WRI T T EN BY

N el l Wal ker Digital strategy is the cornerstone of any business â&#x20AC;&#x201C; but how is it driven? Dr. Paul J. Bailo, Global Head of Strategy and Innovation at Infosys Digital, explores digital leadership...

sion, 51

WHEN IT COMES TO DIGITAL LEADERSHIP, PEOPLE OFTEN BECOME FIXATED ON THE SOFTWARE PART OF THAT – BUT YOU ARE SOMEBODY WHO BELIEVES THAT THE HUMAN ELEMENT IS JUST AS IMPORTANT.

some people had digital in the corner, and

Absolutely. I don’t see how any organi-

model, that they don’t have a digital lead-

sation in this current world could survive

ership framework where they have a vision

without a true digital leadership model,

for digital, and that digital is everything.

some people didn’t even have a Chief Digital Officer. Fast forward today, if you didn’t have a digital model when COVID19 hit, you’re dead in the water. That kick in the butt is allowing businesses to see cracks and fractures in their leadership

when digital is at the forefront of every business. With COVID-19 coming into play and people working from home, you really have to develop your digital talents in relation to digital leadership. How do you become part of an employee’s moral values? How do they hear your voice for leadership and guidance? And how do you do this without physically being next to that person? How do you actually lead in this world of digital without a physical person being there? In my experience, and my own research, one of the critical elements to being a real digital leader is to have vision. How do I take these pieces of technology, people, and process and look towards the future, allowing us to get from point A to point B, while keeping us moving forward? Six months ago, some people were sort of thinking about digital, some organisations had digital in a box, 52

B E H U M A N , H AV E V I S I O N , S TAY C U R I O U S

WHAT ARE THE MOST IMPORTANT TOOLS IN A DIGITAL LEADER’S ARSENAL?

the philosophical world. You may need

Creativity, and a great network. You

you need them to build these solid rela-

have to have a big Rolodex; you have to

tionships in order to share the wealth

have a big contact list in your phone. You

of knowledge.

high-end programmers. You need all these people at your beck and call and

have to have a great network of differ-

In my opinion, it doesn’t help a digital

ent people from different areas that you

leader to network in the same area that

could call upon. You may need people

they’re familiar with. They have to break

in the artistic world, the academic world,

out of their own shell and network and build deep relationships, working rela-

D R . PA U L J . B A I L O G L O B A L H E A D O F S T R AT E G Y A N D I N N O VAT I O N AT I N F O S Y S D I G I TA L

tionships, outside of their norm. A lot of people say, you’re in digital, so you’re going to go to the digital conference. That’s great; I love to go to the digital conferences, and I love to speak at them. However, I also go to other conferences, which have nothing to do with digital or data. I’m interested in aerospace, so I go to aerospace conferences to see about what’s happening in the aviation space. I go to museums to see the world differently, where there might be something in that artwork that intrigues me, that gets my brain to be working and thinking about problems differently. When we start talking about networking, digital leaders need to know that

CLICK HERE TO LISTEN TO THIS PODCAST

they have to expand their proficiency in networking. They need to look outside what they’re comfortable with. w w w.t h e i n t e r f a c e . n e t

“ Failure is just part of how we learn; we've put a societal black cloud over it, but it's how we were made” — D R . PA U L J . B A I L O G L O B A L H E A D O F S T R AT E G Y A N D I N N O VAT I O N AT I N F O S Y S D I G I TA L

B E H U M A N , H AV E V I S I O N , S TAY C U R I O U S

The way a digital leader thinks is that the

testing it out and trying it first. Talking

day something is successful is the day

without substance or an understanding of

it’s antiquated, so you have to rewire

the data, and having the ability to talk to

your mind that it can always be better.

people but not really having empathy for

And this is not new – this is how nature

them. People are smart, and they want to

works, it’s called evolution. Everything

know that you’re going to walk through

is constantly changing for the better,

fire with them.

depending on the environment, or

The idea of leaders considering them-

depending on the conditions that we’re

selves to be in a position of power –

living in. So when you start thinking

those days are over. People don’t want

about the digital leadership, I don’t think

that; they want a leader who’s at the

it just comes naturally – it’s an art form.

front, who’s going to be with them day

It’s something you have to work on, it’s

and night to make sure things work.

something you have to rewire your brain

They want someone to are for and love

for; you have to read about it, you have

them, who has the vision, experience and

to be thinking about it, you have to be

knowledge to assess risks very quickly.

talking about it, and you have to collaborate with others.

These qualities are not easily found; there’s a limited amount of people who can do this, but if you can communi-

WHAT DO YOU THINK ARE SOME OF THE PITFALLS, OR COMMON MISTAKES PEOPLE MAKE, WHEN IT COMES TO SUCCESSFUL DIGITAL LEADERSHIP?

cate digital change and transformation

Great question. Number one is thinking

people focus on the big pain points and

you have the people’s support when

miss the smaller ones, but as a digital

you don’t; thinking you actually have

leader, you need to understand. Then

the leadership and the inspiration of

you can instil in them self-leadership, and

the people, when you don’t. Thinking

show them that you’ll be there to pick

that what you suggested works without

them up if they take a risk and fail.

in a way that really touches their hearts – in a way that people understand – they’re happier to take risks. I look for the pebbles in people’s shoes; a lot of

w w w.t h e i n t e r f a c e . n e t

WE’RE HEARING MORE AND MORE ABOUT THE ADVANTAGES OF FAILING, AND THAT IT SHOULD BE SEEN AS TESTING AND PROGRESSION. I think we’ve all failed, right? Historically, everyone has failed, but many swept it under the rug because people weren’t rewarded for failing, and looked down upon it, but life is made for us to fail. If you have a newborn baby, as it develops, it starts to crawl. And then, eventually, it tries to stand up and immediately falls down. Then it says, wow, okay, I learned something: let me try this again. They keep trying. This is who we are as humans. Failure is just part of how we learn; we’ve put a societal black cloud over it, but it’s how we were made. You don’t learn as much in your successes as your failures. So, in looking for a great digital leader, you want to make sure this person’s failed a lot and has been through everything, because that’s the person who see around the corners.

B E H U M A N , H AV E V I S I O N , S TAY C U R I O U S

“ I don't see how any organisation in this current world could survive without a true digital leadership model” — D R . PA U L J . B A I L O G L O B A L H E A D O F S T R AT E G Y A N D I N N O VAT I O N AT I N F O S Y S D I G I TA L

WHAT ARE THE THREE MOST IMPORTANT ATTRIBUTES OF A DIGITAL LEADER? Number one, be human. Number two, have a vision that people can understand and believe in. Number three, be curious about data, technology, the world – be curious about many different things. It could shape your thinking in formulating the best digital transformation solution around. This isn’t something you become overnight – for the best digital leaders, it’s who they are. They’re naturally curious, they already have vision, they gravitate towards technology and they love people. People have to really want to work with you, believe in you, trust you, and love you to do really great things.

w w w.t h e i n t e r f a c e . n e t

Five opportunities that COVID-19 has created for the digital banking sector WRI T T EN BY

N el l Wal ker

While the virus has presented many challenges, it has also opened up opportunities for increased industry security and customer relationships. AgnÄ&#x2014; SelemonaitÄ&#x2014;, Deputy CEO at ConnectPay, explains.

Increased industry security Banks and other financial institutions have been a major target for scammers since the beginning of the pandemic; in fact, cyberattacks between February and April alone spiked an astonishing 238%. The increased volume of threats has encouraged companies to face the situation head-on and implement new safeguards. "Putting more safeguards in place will benefit market players long after the crisis has blown over, as market players will be better equipped to deal with the constantly evolving digital threats," says SelemonaitÄ&#x2014;.

FIVE OPPORTUNITIES THAT COVID-19 HAS CREATED FOR THE DIGITAL BANKING SECTOR

w w w.t h e i n t e r f a c e . n e t

FIVE OPPORTUNITIES THAT COVID-19 HAS CREATED FOR THE DIGITAL BANKING SECTOR

Growth of digital payments market Alongside the World Health Organization encouraging us to go cashless, the crisis has stimulated the growing amount of e-payments. Selemonaitė notes Sweden’s example: amidst the uncertainty, Sweden’s central bank signed an agreement to gain access to EU TIPS platform, which will act as the basis for the country’s own platform for instant payments. “Sweden’s approach shows that in order to be in a better spot to satisfy increasing demand for faster, more convenient services - you need to be proactive,” Selemonaitė explains. “We follow this approach too; having realised our clients’ needs for greater options amidst quarantine, we integrated more payment methods into our Merchant API.”

w w w.t h e i n t e r f a c e . n e t

Accelerating digital banking development As banks had to severely limit their working hours during the lockdown, digital banking picked up the slack to accommodate the financial needs of people working from home. “As the new wave of customers sieged the system, faster development of banking services took precedence,” says Selemonaitė. In the US alone, over 45% of people have changed the way they bank amidst the crisis, and according to a European customer survey by McKinsey, there has been a 20% increase in digital engagement.

FIVE OPPORTUNITIES THAT COVID-19 HAS CREATED FOR THE DIGITAL BANKING SECTOR

w w w.t h e i n t e r f a c e . n e t

FIVE OPPORTUNITIES THAT COVID-19 HAS CREATED FOR THE DIGITAL BANKING SECTOR

Enhanced customer experience The aforementioned McKinsey survey showed that people who are highly satisfied with their digital banking experience are two-and-a-half times more likely to open new accounts with their existing bank than those who are just just satisfied. The aftermath of COVID-19 is expected to continue down the path of developing simplified UX to attract and retain clientele. “Although requiring meticulous work, constant UX evaluation can greatly benefit product credibility and client retention, for instance, our first UX update led to doubling our monthly conversions,” says Selemonaitė. “It is likely that we will see a more customer-focused approach in the post-crisis industry too.”

w w w.t h e i n t e r f a c e . n e t

A catalyst for fintech companies The ’08 financial crisis gave a boost for the fintech industry, as, at the time, people were losing trust in the system, and in legacy financial institutions. In the aftermath, some entrepreneurs parted ways with the concept of traditional banking, aiming to present the market with a more technologically sophisticated solution. “This time, the crisis could have an even greater impact for fintechs, as well as regtechs, as they rely on solutions fintechs can develop,” adds Selemonaitė. “Unfavourable circumstances drive the need to innovate across interconnected sectors.”

FIVE OPPORTUNITIES THAT COVID-19 HAS CREATED FOR THE DIGITAL BANKING SECTOR

w w w.t h e i n t e r f a c e . n e t

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