Interface – Winter Edition 2019

T EC H | T E LC O | F I N T EC H | DIG I TA L ISAT IO N | A I | M AC H I N E L E A R NI N G

Issue 8 | The Winter edition 2019 | www.theinterface.net

Digital transformation through innovation, with John Vickery

Phil Clayson on navigating the complexities and shifting dynamics of transformation

Daimler Trucks North America: An intelligent company Lutz Beck, CIO of Daimler Trucks North America, reveals the company’s massive digital transformation into a totally connected company

EXECUTIVE INSIGHTS

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WELCOME TO THE WINTER EDITION OF INTERFACE MAGAZINE, OUR BIGGEST YET! Our cover story this month centres around Lutz Beck, CIO of Daimler Trucks North America, who reveals its massive digital transformation into a totally connected company…

Beck transformed Daimler Trucks Asia – with its brands Mitsubishi Fuso and BharatBenz – into a truly connected company, moving the IT function front and centre of its operations. This work paved the way for Beck’s move to head up transformational change in the US. “I was given an open field to do a lot of these innovations here within the Daimler Trucks North America Group because they had started certain elements but there were

EDITOR IN CHIEF Andrew Woods

EDITOR Dale Benton

SOCIAL MEDIA MANAGER Callum Rivett

still a few things lacking. That’s the reason why there is

CONTRIBUTING EDITOR

a clear task: to push innovation and transform IT into

Kevin Davies

a value-adding and future oriented organisation.”

CREATIVE LEAD

Elsewhere in the mag we also speak exclusively to c-level executives at BT, AXA Partners, SSE, ACC and KPN in a bumper issue of B2B insight! We also feature interviews with Lisa Moyle from VC Innovations and Digital Banking Report’s Jim Marous and Sonia Wedrychowitz. Plus, we list all the top events and conferences from around the globe.

Mitchell Park

GRAPHIC DESIGNER Rebecca Side

VP GLOBAL FINTECH & INSURTECH Alex Page

VP TECHNOLOGY Andy Lloyd

VP PROCUREMENT

Enjoy the issue!

Heykel Ouni Greg Churchill

PRESIDENT & CEO Kiron Chavda

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

PUBLISHED BY

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CONTENTS

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DAIMLER T R UC KS N OR T H AMER IC A

6

40

T HE DIGI TAL T R ANSF OR M AT ION OF FIN AN CI AL SERV ICE S W I T H JIM M AROU S AND S ONI A W EDRYC HOW IC Z

50 BT

w w w.the i nte r fa ce .n et

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CONTENTS

74

92

S SE

KPN

110A X A PAR T NER S

140 ACC

128 LISA MOYLE, VC INN OVAT IONS: EMBR ACE INN OVAT ION

168 K P MG

158

5 INDU S T R IE S DR I V IN G INN OVAT ION HUB S AROUND T HE WOR LD

188 E V EN T S

Daimler Trucks North America: An intelligent company WRITTEN BY

Andrew Woods PRODUCED BY Kiron Chavda VIDEO BY Tre t t F i l m s 8

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DAIMLER TRUCKS NORTH AMERICA

Interface Magazine talks to Lutz Beck, CIO of Daimler Trucks North America, regarding its massive digital transformation into a totally connected company…

D

ata is the beating heart of virtually every business across every sector right now.

The race is on to rebuild companies that can

successfully extricate themselves from traditional, siloed structures to become smart, or intelligent, operations that truly harness the insights data provides.

The transportation industry is no exception, as digital disruption and an increasing demand for sustainability and automation continues to send shockwaves through the sector. Now, at the forefront of massive, seismic change, truck manufacturers are seeing a dramatic acceleration of change with autonomous, smart ‘connected’ and sustainable vehicles leading the charge. In this pursuit, companies are having to reconfigure their operations to be able to fully develop, manufacture and support their products.

CIO at Daimler Trucks North America is Lutz Beck, a man who spearheaded massive transformational change for Daimler Trucks in Asia. Beck heads up IT and all the connectivity, autonomous, and electric-related IT w w w.the i nte r fa ce .n et

11

A future driven by data

Future Vehicle - A smart and autonomous economic Top Fontsasset to match branding Technologies like IoT and AI have disrupted and xxxxxxxxxxx transformed all businesses. We are witnessing the next stage of evolution of IoT. It is interesting to observe how “things” play a role in the digital economy by combining technology and business models. Let us imagine a scenario – two “things” agree on a deal, make a contract, and do a transaction that is checked and verified.

That advances IoT to EoT – Economy of Things. The entire sequence could be done without a central authority. Decentralization and governance of such systems are the essential capabilities to build an EoT system. Distributed Ledger Technology (DLT) makes it possible that no human or central agency is involved in the process.

Blockchain is a well-known example of this technology.

The automotive industry has already adopted IoT in the form of connected cars. AI is permeating every aspect of design, manufacturing, field operations, and customer engagement in the automotive industry. Blockchain will be the next wave that has the potential to disrupt the automotive

industry and in general, the world of mobility. The vehicle would become an economic asset in the ecosystem.

There are many proof of concept and pilot examples of such a decentralized network in the industry. Electric cars autonomously negotiate and pay electricity prices at charging stations, pay the toll, parking charges, etc. Digital supply chain backed by DLT has a complete record of all components leading to interesting use cases like ethically produced parts, preventing counterfeit components, to targetted recall.

The entire life history of a vehicle is stored in Blockchain, making odometer to service records transparent to the buyer. With the trend of ever-increasing data from a vehicle and need to upgrade software safely, there are several advanced applications to have secured data management solutions in a decentralized way.

In a machine-to-machine business ecosystem Blockchain will enable vehicles to enter into transactions with each other and city infrastructure to execute multi-party transactions with a fair distribution of incentives.

Bosch, being a major mobility industry player, is early to recognize the potential of the DLTand is evolving the picture of the future.

Bosch is partnering with industry players, pioneering and shaping the active use of DLT. The metamorphosis of a vehicle from a tool of transportation into a smart and autonomous economic asset will define the auto industry of tomorrow.

Author: Sri Krishnan, Senior Vice President and Head – Innovation and Incubation Robert Bosch Engineering and Business Solutions Pvt. Ltd. For further enquiries, contact : Vinay Shetty Vinay.Shetty@us.bosch.com +1 248 752 3946

aspects for Daimler Trucks North America.

Beck transformed Daimler Trucks

“I was years in consulting, and joined

Asia – with its brands Mitsubishi Fuso

Daimler early 2000,” says the Stuttgart

and BharatBenz – into a truly connected

native, speaking from Daimler Trucks

company, moving the IT function front

North America’s Portland Headquarters.

and center of its operations. This work

“I was there for about nine years working

paved the way for Beck’s move to head

in Germany in different roles at Daimler

up transformational change in the US.

IT. Then, in 2012, I became CIO at Daimler Trucks Asia, based in Japan.”

14

DAIMLER TRUCKS NORTH AMERICA

Daimler Trucks North America sees its main volume coming from heavy duty

“ …What is attracting people is the service around the device; the services you have on your phone. And this will be, in a certain way, the same for our trucks” — LUTZ BECK CIO, Daimler Trucks North America

trucks and has three times the headcount

and transform IT into a value-adding and

of Daimler Trucks Asia with a compar-

future oriented organisation.”

atively massive output. “I was given an

Beck is a devotee to the notion that

open field to do a lot of these innovations

IT is the driving force behind operational

here within the Daimler Trucks North

change. “Look, the IT role is significantly

America Group because they had started

changing due to technological disruption.

certain elements but there were still a

Everything we’re doing today is based on

few things lacking. That’s the reason why

technology, right? And, of course, this is

there is a clear task: to push innovation

our main field: technologies. So, from my w w w.the i nte r fa ce .n et

15

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“As the automotive industry is navigating its path to the future through disruptive changes like autonomous, electric vehicles and shared economy, the players need to reinvent their business models and digitally transform their business processes.

As a strategic partner in this journey, Infosys is helping automotive clients in every facet of this transformation ranging from helping a European car maker to launch car subscription model to helping a German premium luxury automaker digitally transforming organization’s procurement, finance and dealer services.

We look forward to a greater and continued association with this sector, and in key markets like Germany and the US.” Jasmeet Singh, Executive Vice President & Global Head – Manufacturing, Infosys

w w w.th e in te r fa ce . n e t

17

“ The IT role is significantly changing due to technological disruption. Everything we’re doing today is based on technology, right? And, of course, this is our main field: technologies.”

— LUTZ BECK CIO, Daimler Trucks North America

18

DAIMLER TRUCKS NORTH AMERICA

w w w.the i nte r fa ce .n et

19

point of view, the IT role in companies is changing significantly, and is more and more taking the lead in driving change.

In former times, IT was often seen as a supplier, whereas now it is key to developing new business models, processes and innovation. For me, IT is now as important as engineering. Look at some of the automotive companies, which don’t have the traditional or historical background we do, and you will see that a big portion of the people working for these companies are actually in IT. Because everything is driven more and more by technology, right? Now we need to use technology to disrupt and ensure success in the future. There are a lot of opportunities to develop new business models and revenue streams based on that. But you need to go outside of your comfort zone.

Companies that are positioning IT as their driver are having a lot more opportunities. Look at the traditional cost model of IT; seeing IT as costs will give you one on one, right? Means you save $1 in IT, it’s $1 for the company. But what we see is if you look at IT or technology-managed efficiency, you already have a factor of 10. And, if you look at technology-driven disruption, you have a factor of 100. The importance of IT is increasing and the companies that acknowledge that are 20

DAIMLER TRUCKS NORTH AMERICA

“ …digital transformation is actually a cultural shift and a mindset transformation.

This is the biggest challenge” — LUTZ BECK CIO, Daimler Trucks North America

w w w.the i nte r fa ce .n et

21

Digital transformation calls for bold moves.

Be bold.

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Atos Syntel is proud to support Daimler Trucks North America in their digital journey As one of their top strategic partners since 2004, Atos Syntel has consistently remained among DTNA’s highest-rated partners, delivered business value, innovative new solutions, and millions in savings.

We partner with leading manufacturers like DTNA, applying bold thinking to business problems in order to build intelligent enterprises that can adapt to changing consumer demand, design superior products, create smart factories and leverage disruptive technologies to meet the demands of the Digital Age. We have worked with some of the most forward-thinking global manufacturing companies, helping them deploy the latest technologies like AI, e-Commerce, blockchain, Industrial IoT (IIoT), and augmented reality to solve their most pressing business challenges.

Atos Syntel helped one leading automaker deploy

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We also helped modernize the engineering documentation system for a leading U.S. vehicle maker, re-engineering their processes to create a digital workplace and enhance the customer experience. By building intui-

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If you are ready to make a bold move and take the next step in your digital journey, you need to explore the value and innovation that Atos Syntel can deliver.

Learn more at:

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w w w.th e in te r fa ce . n e t

23

currently leading the way and using their savings in operations to reinvest into the strategic building blocks for the future.”

Daimler Trucks North America LLC is the leading heavy-duty truck manufacturer in the US and produces and markets commercial vehicles under the

YEAR FOUNDED

1942

REGION HQ

Portland, OR

Freightliner, Western Star and Thomas Built Buses nameplates. Daimler Trucks

point where, in the future, we will see the

North America is a Daimler company, the

truck as a device, which we basically sell

world’s leading commercial vehicle manu-

with surrounding services to our custom-

facturer and on the face of it, DTNA has

ers,” Beck explains. “And these surround-

a very traditional business model, which

ing services are all based on technol-

is essentially building and selling trucks.

ogy, and this is exactly where IT comes

However, Beck sees that notion changing.

in. We need to establish ourselves more

Even the perception of a truck is morphing

as a thought leader in innovations in the

as disruption, in the form of autonomous

company. We need to try certain things

driving and smart and electrical mobility,

to disrupt company processes, as well the

starts to hit home. “We have come to the

organization of the company itself.”

24

DAIMLER TRUCKS NORTH AMERICA

Beck is currently turning Daimler

exactly how to work with data. So, we

Trucks North America into what he

need to use this huge amount of data for

describes as an ‘intelligent company’.

business decisions, for driving efficien-

But what exactly is an intelligent

cies and creating new business models

company? “An intelligent company is, for

and revenue streams. There are a lot of

me, one which aims at utilizing data as

opportunities and the more data you gain

a key asset to facilitate data driven deci-

or bring into the company, the more you

sion making as well as drive business

can do. You are able to work faster, and

optimization and innovation through

you are more efficient. This will result in

data, in a way they are permanently

time needed to think about new disrup-

disrupting themselves.”

tion or business models based on tech-

Beck explains, “If you look at successful companies nowadays, they know

nology. An intelligent company is at the end a data-driven company.”

w w w.the i nte r fa ce .n et

25

The Intelligent Company strategy positions IT as the technological enabler for all digitalization efforts at DTNA and focuses on six strategic building blocks: – Connected and Electrified Vehicles: Driving the development towards trucks as smart and clean digital assets – Autonomous Vehicles: Developing the technological capabilities for autonomous trucks and associated new business models – Customer Experience: Elevating customer interaction into the digital and data-driven age – Smart Factories and Logistics: Developing smart factories to enable DTNA to build smart trucks – Data Driven: Using data in all decision-making processes throughout – DTNA Cyber Security: Safeguarding IoT and connectivity

26

DAIMLER TRUCKS NORTH AMERICA

“An intelligent company is, for me, one which works with its assets in a way that they are permanently disrupting themselves” — LUTZ BECK CIO, Daimler Trucks North America

w w w.the i nte r fa ce .n et

27

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DAIMLER TRUCKS NORTH AMERICA

This strategic focus positions DTNA to lead by proactively embracing technology opportunities not only in IT, but also in the overall business model. “We’re working on the autonomous piece, which is certainly a game changer in terms of mobility for the future. Then we’re also working on connected vehicles. We have 250,000 connected trucks on the road, and this is of course a brilliant service for our customers because we have real-time services based on that, which we can provide to our customers. Of course, there is electric; we have already handed over pilot electric trucks to customers. If you look at distributional logistics, this is a game changer and will certainly help the environment.”

As well as keeping one eye on cyber security with regards to connected vehicles, Beck and his team are also focusing on the actual manufacturing and how to develop what is commonly known as the ‘smart factory’. “I refer to factory automation here and learning with data. Then you’re not just looking internally into the company. You are also looking at your connected supply chain, especially if you have situations where you need to ramp up or down, at speed. We are making our plants more efficient and intelligent, based on the data we have, by looking at all the sensors we use on our robots. All technological changes are an investment, yes, but this is also a new business model. It’s easy to create a business case for that as well. Everything you do in terms of a smart factory, in terms of data-driven strategies or big data, is not difficult from an investment point of view. We have a lot of examples in the big data space where, with a very, very small investment, you can gain a lot of benefits.” w w w.the i nte r fa ce .n et

31

The transformational strategy at DTNA

and so we established this strategy of

is simple according to Beck. In short,

Building the Intelligent Company. We have

Beck wants to work on the company’s

one block working on the fundamentals

digital foundation by preparing DTNA’s

and modernizing our foundation, while

backend for the future. “You find a lot

we work on the strategic building blocks.

of complexity in your backend and so

I now have both topics running in parallel.

we’re trying to simplify it by taking the

In order to get a bit more hold on what is

complexity out. Just placing innovation on

happening, specifically on the more inno-

top of a very complex backend doesn’t

vative topics. We are also setting up a

work.” In preparing the digital founda-

Digital Transformation Office to steer the

tion, DTNA is focused on modernizing

direction we are heading in, while look-

IT legacy systems and infrastructures

ing at all the innovative topics, such as

as the underlying foundation, driving

blockchain, virtual reality, augmented

operational excellence and developing

reality and big data, because everybody

DTNA-wide comprehensive data stor-

wants to be part of these. We needed to

age, management and analysis capabilities. DTNA is also moving towards an open enterprise platform strategy with aligned technology roadmaps. “Because, there are topics which we cannot solve by ourselves,” Beck admits. “We need to have basically more partners, and authorities in there to help us solve our problems.”

Coming into an environment already steeped into a certain step of innovations while dealing with a very complex foundation throws up challenges, but Beck reiterates the importance of simplifying the back end. “It’s difficult, because all these strategic building blocks are running and everybody wants to jump on that, 32

DAIMLER TRUCKS NORTH AMERICA

bring some structure into place, because as much as we want to try everything, there is so much we need to learn.

Some of these things are not yet ready for us, or the technology is not yet at a point where we can really use it, or it just doesn’t make sense just for the industry at the moment. This process needs to be steered in a certain sense and that’s what we are doing with the digital transformation office, to get a full visibility about all the topics which are running in these areas. We might want to do a POC or an MVP, but let’s fail fast w w w.the i nte r fa ce .n et

33

in the approach. If we notice it doesn’t make sense, then let’s just stop it, right?

Because if it doesn’t bring business value to the company, then we shouldn’t do it.”

Undertaking a transformation of this magnitude nearly always disrupts the workplace and its incumbents, which can be the biggest challenge of all.

“Everybody thinks that digital transformation is a technology transformation,” says Beck. “But digital transformation is actually a cultural shift and a mindset transformation. This is the biggest challenge. Technology is just an enabler and will never be the limiting factor anymore.

Because if you look at the cycles of the development of technology, we will not be able to apply all these technologies as fast as things are evolving. We need to work on this cultural shift and the understanding of digital transformation. What is it about? It’s more about new ways of working, new business models, new revenue streams, new jobs for people. You can easily be blocked by resistance coming from the people, because they fear change.

So, we are doing a lot of communication to help people understand. We recently held a Digital Inspiration Day, just to bring our people up to speed with what we are doing. I brought in people who were running successful transformations from 34

DAIMLER TRUCKS NORTH AMERICA

w w w.the i nte r fa ce .n et

35

36

DAIMLER TRUCKS NORTH AMERICA

outside of our company to explain to my leadership team how things are going.

I’m trying also to bring top management into discussion with leaders from other companies, in order to understand how they deliver transformation.”

As DTNA develops as an innovative intelligent company, it is constantly working with young, fearless start-ups and leading innovators. A recent hackathon in Austin, Texas was conducted to find fresh new ways of problem solving.

Daimler [Trucks North America] is trying to think like a start-up by constantly engaging with new talent. “It is good for us to learn how start-ups are acting and it’s good for them to see what the industry doing,” Beck explains. “We have lots

Lutz Beck CIO Daimler Trucks North America

of discussions with start-ups to leverage different points of view. We need to be able to decide what can we give outside and what to keep inside. Because, that’s a potential new business model for us. If

Lutz Beck is Chief Information Officer for

you look at the truck, it’s a device, noth-

Daimler Trucks North America (DTNA).

ing else. Now, if you look at the phones,

In his role, Lutz is actively transforming the

there is not much difference anymore,

organization by implementing the new IT

nowadays. Yes, maybe one has a better

strategy, “Building the Intelligent Company”

camera or whatever. But at the end of

and by leading DTNA’s digital transforma-

the day, what is attracting people is the

tion efforts. He values disruption, innovation,

service around the device; the services

and changing the game.

you have on your phone. And this will be, in a certain way, the same for our trucks; w w w.the i nte r fa ce .n et

37

the services you build around them and how convenient it is for our dealers and customers to use them. And that’s exactly what we need to work towards.”

A majority stake in Torc Robotics was acquired recently, to help bolster Daimler’s work on the autonomous front. This September saw the start of testing of Daimler Trucks’ SAE Level 38

DAIMLER TRUCKS NORTH AMERICA

“As DTNA develops as an innovative intelligent company, it is constantly working with young, fearless start-ups and leading innovators” — LUTZ BECK CIO Daimler Trucks North America

4-intent heavy-duty trucks on Virginia

day. You need to create new things. You

highways; a major step in Daimler Trucks’

need to establish relationships and new

plan to release the trucks in 10 years’

organizational ways of working. Daimler

time. The next decade certainly repre-

Trucks North America has a very big

sents a revolution for companies like

history of building trucks, but it’s also

Daimler Trucks North America and Beck

our duty to do something different.”

is certainly comfortable to be at the forefront of such massive change. “You need to go out of your comfort zone every single w w w.the i nte r fa ce .n et

39

EXCLUSIVE: The digital transformati of financial services with Jim Marous an Sonia Wedrychowic WRITTEN BY D a l e B e n to n

Jim Marous, internationally recognised financial industry strategist, and the publisher of the Digital Banking Report and Sonia Wedrychowicz, an experienced technology transformation professional of over 25 years, discuss how digital transformation is more than merely technology while exploring the leadership and cultural issues surrounding digital transformation in banking 40

ion s nd cz LISTEN TO JIM AND SONIA’S PODCAST ON THE DIGITAL INSIGHT’S OUTPUT CHANNELS BELOW

41

SONIA WEDRYCHOWICZ Te c h n o l o g y t r a n s f o r m a t i o n professional

efforts focus on modernisation of the platforms on the technology side, and the digitisation of the customer experience on the business side, while the two functions, in my opin-

JIM MAROUS Financial industry strategist

ion, should work as one team with the common goal, driven by customer obsession.

Jim: Financial organisations do know what they need to do. They do understand

How do you feel the conversation

the technologies that have to be

around technology has changed? Are

embraced, but the challenge is they’re

businesses now driven more by tech-

not very far down the digital trans-

nology and IT than ever before?

formation process. This is a concern,

Sonia:

given that the industry is moving

First, we need to understand that,

so fast in the digital space. A lot of

in the last couple of years, the way

organisations have seen digital trans-

people consume, communicate and

formation as the purchase of technol-

commute has changed dramatically,

ogy and the implementation across

and is increasingly being delivered

different initiatives. This is opposed to

using digital channels. In today’s

an overarching perspective of digital

world, the vast majority of our daily

transformation that really starts from

lives are supported by technol-

the inside out, and looks at processes

ogy. So, by definition, all companies,

and programs, culture and leadership

including banks, are becoming tech-

and then builds technology against

nology companies. That realisation,

that. We’re seeing a big challenge with

however, is not universal yet, and in

regards to leadership and culture, and

many organisations, I can still see

without that, the implementation of

the business and technology running

technology will probably never see its

separately. The transformation

full optimal implementation.

42

T H E D I G I TA L T R A N S F O R M AT I O N O F F I N A N C I A L S E R V I C E S

How common is it that across different businesses in different industries, in different capacities, digital transformation means something different to each and every person and organisation? And how do you go about unifying it in a way that makes sense to everyone?

Jim: When you’re talking about digital transformation, and you’re combining that with the financial services industry, it’s

“ By definition, all companies, including banks, are becoming technology companies” — SONIA WEDRYCHOWICZ Te c h n o l o g y t r a n s f o r m a t i o n professional

more difficult. You look at organisations that are going to need to embrace change, take modified risks, and actually disrupt themselves, and that’s not in the

is basically more of the same, but more

comfort zone of financial institutions.

lean and efficient.

It’s the opposite of the legacy culture that’s been in play before.

A good example of this centres around the difference between the process of digitisation versus digitalisation

Sonia:

itself. Digitisation is all about making

There is a lot of misunderstanding

the current process, or product, digital

regarding the difference between digi-

without truly reimagining it. The same

tisation, digitalisation and transforma-

process can, however, be digitalised,

tion, and it comes to the old rule that

rather than digitised. The digital trans-

people have the tendency to always

formation is being trivialised by being

see these things as the same, although

understood as bringing new technolo-

they are actually different. There is a

gies into place without truly reimagining

very common misconception of digital

the customer journeys, the customer

transformation, which is disruptive, and

experience, and actually making it much

challenging the status quo, with change

simpler and more transparent for the

management, or restructuring, which

customers. w w w.the i nte r fa ce .n et

43

What are some of the biggest challenges and barriers to embracing digital transformation and embracing these new technologies?

Sonia: The emergence of efficient fintech companies offering different banking services, not only cheaper, but mostly through an amazing, simple and friendly customer experience. The existence of banks is under a serious threat.

Interestingly enough, the threat level varies in different parts of the world and so banks need to accelerate on the path of reimagining themselves, in order to keep pace with the emerging competitors who are, these days, coming from industries that were never associated with banking before.

Jim: I think the biggest challenge we’re going to see, and the reason why banks right

“ We’re seeing a big challenge with regards to leadership and culture, and without that, the implementation of technology will probably never see its full optimal implementation” — JIM MAROUS Financial industry strategist

now are starting to rethink their complacency, is not because of the revenue, but because of the threat, while we’ve been thinking about what’s going to happen in the future, and what’s going to happen in the fintech banks and the challenger banks. To the large tech companies that is the biggest challenge.

The threat is real. The consumer’s going 44

T H E D I G I TA L T R A N S F O R M AT I O N O F F I N A N C I A L S E R V I C E S

to start demanding more and more of their financial institutions. A consumer can now change a financial provider, invisibly. They don’t have to come into the branch anymore. They can do it with a click of a button on a phone and they can change their financial relationship. What we have to do is realise that there’s a major threat out there to financial institutions that sit back and hope that it’s going to be business as usual.

How important is it, during a trans-

Jim:

formation and during change, that

I think part of the difficulty with trans-

you are keeping the customer at the

formation is transparency. We get

very heart of everything you do?

updates on our mobile apps from

Sonia:

many organisations, updating you that

Never focus on your competition. Always

changes are being made. It doesn’t

focus on your customer. For years we’ve

happen that frequently in the financial

been completely ignoring the customers

services space because the communica-

and looking at what the competition was

tion isn’t there. There are a lot of organ-

doing in order to keep pace. By focusing

isations that believe: if you build it, they

on your competition, you’re always going

will come. The reality is, that’s not the

to be one step behind them. Technology-

case. We need to provide more informa-

enabled tools are allowing us to be much

tion upfront and do a lot more research

closer with the customers without seeing

to find out what the consumer wants.

them and even talking to them, but just

What they’re looking for is simplicity and

focusing on how they behave, what they

a lack of friction, and really what they’re

do, how they react to the different propo-

hoping for is that the financial institution

sitions we are giving to them, and whether

is going to know them, look out for them,

it results in increased business generation.

and reward them. w w w.the i nte r fa ce .n et

45

Jim, you mention that non-financial

Sonia:

institutions are now dominating the

When I look at the big fintech compa-

payment space, how is that impact-

nies and companies like Amazon, I think

ing the decision-making and the

they’re being watched closely by the

approach to technology?

banks for their customer obsession,

Jim:

delivered by technology. When it comes

Financial institutions are looking

to small fintech companies; it’s very

at the fintech companies because

interesting. They are providing solutions

those companies looked at the digi-

on untested but interesting technolo-

tal companies and asked, “How can we

gies like blockchain or AI. Once those

take customer insight, AI, and digital

technologies became more established,

technologies to make better experi-

expertise will rise. So, they are not using

ences?” In every case we’ve seen, what

the fintech start-up companies to inte-

the competitors and non-traditional

grate those solutions any more, but they

competitors have done is built solutions.

want to have this expertise in-house.

They take data, insight, and technology to

Talk to me about the importance of

provide a seamless experience built on a

bringing people along on these jour-

digital platform, and that’s a very impor-

neys, and in these transformations, and

tant component, because being built on

not necessarily equipping, re-equipping

a digital platform means that they’re not

them with these new skills and new

building on legacy infrastructure. The tech

capabilities in order to drive the busi-

companies have streamlined the applica-

ness forward.

tion process for loans or for a credit card because it builds on a tech platform.

The case studies that we see going

Jim: This is probably the biggest challenge

forward are coming from the fintechs,

that the banking industry is going to

and I think traditional financial insti-

face. We do not have a large knowledge

tutions are going to build more and

space of digital mind-sets in the market-

more partnerships, because bankers

place and that includes everything from

can’t get out of their own way, and

digital applications of AI, to just how the

they really can’t build something that

technology and coding works. There’s a

they’ve never done before.

major weakness. But just as big is how

46

T H E D I G I TA L T R A N S F O R M AT I O N O F F I N A N C I A L S E R V I C E S

do we reach for the people internally,

of the old conservative companies is

because when you talk about automa-

fading away in favour of the Apples and

tion, robotics and AI, there’s going to be,

Googles of this world. People are joining

if not an elimination of jobs, a transfor-

the new technology companies not for

mation of jobs into new sets. So, we’re

free food and gym on the premises, but

going to have to take it upon ourselves

for the ability to constantly learn new

as an industry to retrain people across

things. The financial institutions need to

the organisation, so they’re prepared for

develop the leaders of the future. They

the future. The challenge is, not many

need to reimagine, not only their equip-

organisations right now are doing it.

ment policies, but more importantly, change their hierarchical structures

Sonia:

within the organisation to ones that are

I also think that a big challenge of the

powered by people who are more will-

traditional organisations today is to

ing to listen, with employee empow-

attract young people. The attraction

erment that is bringing the customer

w w w.the i nte r fa ce .n et

47

“ Surround yourself with young people, as they will become your bridge between the past and the future” — SONIA WEDRYCHOWICZ Te c h n o l o g y t r a n s f o r m a t i o n professional

LISTEN TO JIM AND SONIA’S PODCAST ON THE DIGITAL INSIGHT’S OUTPUT CHANNELS BELOW

48

T H E D I G I TA L T R A N S F O R M AT I O N O F F I N A N C I A L S E R V I C E S

experiences of change much closer to where the customers are.

If you could give one piece of advice on how to be successful in these disruptive times as a professional in the financial space what would it be?

Sonia: Keep reinventing yourself and have the courage to unlearn what you learnt in the past. Constantly learn new things.

Brains change, so surround yourself with young people, as they will become your bridge between the past and the future.

Jim: We have an industry filled with legacy bankers that have been in this industry for a very long time and have done very well in most cases. What we need to do is to look and say, “How can we, as people in organisations, build a culture that will make it so that organisations can truly be part of the future?� The future will happen very quickly, as will the impact of not making changes. We have to do better.

w w w.the i nte r fa ce .n et

49

50

BT Enterprise: Beyond Limits WRITTEN BY

Andrew Woods PRODUCED BY Andy Lloyd PHOTOGRAPHY BY A n d y Ty l e r V I D E O B Y Tre t t F i l m s

51

We speak to John Vickery, BT’s Principal Technology Partner for Enterprise, who explains how the company is harnessing innovation in enabling digital transformation…

T

he rapid advance of technology has disrupted virtually every industry you can think of and yet the core aims of any

enterprise have remained the same. ‘How can we improve our bottom line, sell more product, receive better insights and make better strategic decisions? How can we improve productivity?’ These concerns are unchanging although the landscape is shifting dramatically.

BT’s Enterprise business offers real and tangible outcomes for its customers amid this turbulent digital disruption. Echoing the new company-wide strapline, John Vickery, BT’s Principal Technology Partner for Enterprise explains: “We’re going beyond limits to deliver digital transformation for our customers. AI, IoT, data, cloud, edge compute; we bring all of that together into a single ecosystem, through 5G, to deliver the technological capabilities that our customers need to achieve their outcomes.”

BT’s Enterprise unit is shifting its business from being seen as a provider of connectivity products such as broadband, ethernet and SIM cards – to a business that can really deliver and assure business outcomes at a time when many businesses don’t necessarily have the confidence to invest in new technology. “We bring the whole proposition to give them 52

BT

John Vickery, BT’s Principal Technology Partner for Enterprise

w w w.the i nte r fa ce .n et

53

T RANS FORM ING M OBILE N ETW ORK ECONOM ICS

WEB SCALE AGILITY COST EFFICIENCY

5G CORE

VIRTUALIZED RAN

vEPC

NEUTRAL HOST

E N T E R P R I S E LT E

NFV/SDN

mavenir.com

In the telecommunications industry,

What is required is a move to

ing on with Mavenir for Neutral Hosting solution.

virtualisation technology is a tre-

the next level of implementing

mendous disruptor. It is bringing a

true cloud-native applications

new way of doing business which up

which have the characteristics to

tive and virtualised radio and core

until now was defined by major web

be open and allow their life cycle

solution, BT is able to “slice� the

players such as Google and Amazon

to be automated as well as having

Mavenir solution and provide a

which had embraced virtualisation

the elasticity to perform scaling

single architecture and infrastruc-

much earlier.

for more dynamic cases.

ture, coverage and capabilities to

Mavenir lays its foundation on

There is a plethora of new

By utilising a proper cloud na-

multiple operators: each operator

Virtualisation and it is the indus-

software suppliers which bring

will have its own slice and will be

try’s only 100% software

innovation and new approach-

able to run its traffic without any

end- -to-end provider with its

es to CI/CD (Continuous Inte-

impact on one another.

cloud native approach.

gration and Continuous Devel-

The separation, made possible

opment) and with virtualisation,

by the virtualisation and network

about Virtual Machines or Con-

they are now a viable solution

slicing, is so effective that each

tainers, is bringing agility and web

for operators like BT.

operator can run different soft-

Virtualisation, whether we talk

scale by not only improving the

Mavenir is definitively among

ware and capabilities depending

way applications are deployed

those and have the unique char-

on their offering while being able

and automating procedures, but

acteristic of being end to end

to differentiate despite using a

also by impacting the economic

and compete with total solutions

common infrastructure.

model of telecommunications.

from core services to access.

Mavenir aims to transform the

The cloud native approach

The solution has proved to be extremely interesting and much

network economic model for Mo-

provides new architectural

more effective than some of the

bile Operators, by utilising virtu-

solutions where processing can

traditional solutions which have

alisation, which means providing

be deployed much closer to the

been adopted in mobile Network

software for standard Commer-

access and open up new use

Sharing scenarios worldwide and

cial Off the Shelves hardware and

cases, especially for enterprises

across the UK.

based on Open Interfaces like in

in which 5G is richer and opens

the case of OpenRAN.

up more opportunities.

Until now, operators have begun to embrace the early stages of virtualisation, but in most cases

There is no 5G without virtualisation and this is a fact.

In order to provide flexible and

A new era has arrived and finally telco operators will be able to benefit from the web scale agility of the aforementioned major web players. Virtualisation is here to

they stopped their path by only

agile solutions, we need to be

stay and is profoundly changing

migrating software onto servers

able to scale and throw out the

our industry: Mavenir is leading

in Data Centres. This is mainly

old legacy which is slowing the

in cloud native solutions and is

due to a reliance on traditional

transformation. A very interesting

here to impact and transform the

Network Equipment Vendors.

case is the one that BT is work-

mobile networks.

w w w.th e in te r fa ce . n e t

55

that confidence,” Vickery explains, the week following BT’s massive ‘Beyond Limits’ rebrand. “And if we need to, we’d love to develop a proposition where we can actually commit and assure those outcomes on an SLA (service level agreement) basis.”

Vickery is the Principal Technology Partner for 5G, edge compute, private networks, and all the new innovative, disruptive technologies helping BT’s Enterprise business deliver new outcomes for its customers. Vickery looks after this portfolio of innovation, which 5G brings together into a single ecosystem to deliver the technology capabilities that its customers demand; and there are plenty of them. BT’s enterprise clients range from massive corporates all the way through to SMEs, microbusinesses and sole traders.

“We’ve got 1.2 million business custom-

“We’re a team of experts and consult-

ers to speak to, something like 700,000

ants who go out and work with custom-

SMEs, corporates, major corporates,

ers to get a deep understanding of their

public sector, defence, Scottish salmon

requirements,” says Vickery. “We’ve got

farms, you name it. There is a huge range

a specialist who looks at utilities, and

of businesses.”

someone who looks at manufacturing

The CTIO (chief technology and

and production. It gives us a meaning-

information office) holds a unique

ful insight into where they’re looking

place within BT, with one in each line

to technology to deliver their business

of its business; Global, Consumer and

objectives such as improving productiv-

Enterprise.

ity, introducing automation and cutting

56

BT

with technology. “At the moment, a lot of people talk about 5G campus networks and how to build out in places like airports and ports. We’ve worked on some really innovative projects with costs. They’re looking to partners to

them (Belfast Harbour),” says Vickery.

give them the answers because they’re

“We delivered the fastest 5G network

wondering how to pick the right tech-

into the harbour that we’ve deployed to

nology. We’re the kind of technology

date. Within six weeks we had five carri-

business that gives them the answers,

ers of 4G and 5G over the top. We’re

as well as the confidence, to invest in the

delivering ultrafast speeds of 700 800

right areas.”

megabits per second to enable their

Belfast Harbour is a 2,000-acre port

engineers to do crane maintenance

that also houses university campuses,

routines through augmented reality

museums and filming locations, with

headsets. Now, all of their workflows

a real ambition to drive and innovate

are loaded on software working with our w w w.the i nte r fa ce .n et

57

The edge is here.

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At MobiledgeX we work with the world’s leading telecom operators to make their capabilities and infrastructure available to secure your success.

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Learn more at MobiledgeX.com/early-access

partner Ubimax. If they come across a

cloud help you? And what we’re trying

problem or there’s a fault, they can use

to do is build a proposition for those

voice commands to get immediately

customers so they can pick from a

connected to a remote expert. It helps to

modular set of capabilities that we

set themselves up for the future so they

can then package up into a solution.

can increase their productivity for these

Security, data sovereignty through

kinds of engineering tasks.”

to reductions in backhaul costs and

BT was the first company to launch

lowering latency - every customer

5G services in the UK in May this year.

needs something different. We work

“Many customers want to find out how

with each customer to understand

they can leverage 5G,” says Vickery.

their specific needs and make sure

“It’s about that dialogue. What do you

we’ve got our proposition, and the hori-

need? How can edge compute help

zontal capabilities, to support them.”

you? How can AI help you? How can

Healthcare is a big focus area for BT’s

w w w.th e in te r fa ce . n e t

59

“ We’ve got 1.2 million business customers to speak to, something like 700,000 SMEs, corporates, major corporates, public sector, defence, Scottish salmon farms, you name it” — J O H N V I C K E R Y, B T ’ S P R I N C I PA L T E C H N O L O G Y PA R T N E R F O R E N T E R P R I S E

Enterprise business which is currently

diagnostics and clinical care to patients

acting as a service integrator to one of

remotely over 5G, without the need for

its NHS customers. “One of the things

hospital conveyances, then not only do

we’ve been looking at in Birmingham

you improve patient care, productiv-

is a connected ambulance. We were

ity and reduce waiting times but you

the first in the UK to deliver a 5G use

also remove the traffic on the roads and

case for ambulances where you have

improve the environment.”

a trained sonographer in the hospital

Vickery is very passionate when it

guiding a paramedic who isn’t trained

comes to 5G. “5G is actually going to

in sonography. Through the use of a

help people save lives,” he says. “We put

haptic glove, the sonographer within

a 360-degree video inside an ambu-

the hospital can control a joystick and

lance so the diagnosticians and the

that gives the paramedic signals in the

clinicians in the hospital are able to

hand so they know where to move the

feel like they’re in the ambulance and

scanner. If you can start bringing the

can see everything around them. Now,

60

BT

doing that with 360-degree video and

imagery and a close-up camera all

transmitting all that data in real time is

embedded and accessible from within

quite complex. So, we’re working with

the immersive reality in real time. It

a partner called Voysys who ensure the

really is a fantastic demonstration of

immersive experience for the remote

what 5G can do for healthcare. We’ve

diagnostician is as accurate as it can be.

also been working with Ericsson and

When you are interacting with paramed-

Kings College London in that trial, and

ics in an ambulance and guiding their

Ericsson played a big role on the devel-

actions, network latency needs to be

opment side particularly around the

consistently low which is why 5G is so

platform that underpins the technology.

important for this type of use case, as it

We also had fantastic support from our

enhances the interactive experience and

Applied Research team at BT’s labs in

ensures content delivery in real time.

Adastral Park (Suffolk).”

The remote clinician also has access to patient records, vital signs, ultrasound

“The research team are real asset for us and the innovation and investment w w w.the i nte r fa ce .n et

61

62

CONTENTS

in R&D from this team is just stagger-

a control room,” he explains. “These

ing. We are the 3rd largest tech inves-

cameras combined will need one giga-

tor in research and development in the

bit per second on the uplink, which is

UK spending £2.5 billion over the past

massive. Only 5G can provide that. This

5 years. We have over 5,000 patents

isn’t a kind of use case where, if you had

in our portfolio and last year alone we

a really good 4G signal, it would work.

filed 103 new inventions. I love sharing

This is a disruptive use case, which

this message with our customers as it

needs pure 5G to make it work. So, you

really demonstrates our commitment

need a consistent latency of 18 milli-

to innovation and positions BT as a real

seconds. You’re actually taking people

forward thinking and innovative tech-

out of a dangerous situation; by climb-

nology partner.”

ing up to the crane every morning.

Vickery was in Zurich recently, speak-

You’re pulling people out of the process

ing to a company called ZPMC, who are

and centralising your operations while

undertaking remote crane operations.

increasing your productivity. You could

“You need 18 high definition cameras to

have a crane operator who can be work-

be able to operate a crane remotely from

ing two or three cranes from a control w w w.th e in te r fa ce . n e t

63

YEAR FOUNDED

1969

REGION HQ

London, UK

w w w.th e in te r fa ce . n e t

65

room and that increases productivity and the bottom line. We’re looking at the horizontal capabilities that have applications across multiple verticals so we can make it bespoke and collaborate with our customers to make it work for them. But the capabilities we invest in and develop and build, we can use over a whole range of sectors. That’s really where the strength lies, in the scale of BT.” Partnerships are hugely important to BT and Vickery acknowledges that it can’t deliver every outcome itself.

“We’re very strong in connectivity.

Everybody can appreciate that. We’ve got great managed service capability. We can do the whole end-toend orchestration piece. Where we’re moving into is around the compute, the cloud and the edge. And so, we want great application developers and device partners to be able to plug into that ecosystem. We want to create an edge ecosystem where application partners can very easily distribute their software to our customers. We’re really keen to work with partners in that space.”

One of the companies BT is working with, from a research perspective, is MobiledgeX. “They have got the ability to deliver globally orchestrated edge cloud, so it makes it very easy for 66

BT

“ We’re looking at the horizontal capabilities that have applications across multiple verticals so we can make it bespoke and collaborate with our customers to make it work for them” — J O H N V I C K E R Y, B T ’ S P R I N C I PA L T E C H N O L O G Y PA R T N E R F O R E N T E R P R I S E

w w w.the i nte r fa ce .n et

67

application developers to distribute their

leading 5G network operator, with 5G

software at a global level, working with

in more places than any other provider.

partners like BT to provide all the under-

When our customers ask us, ‘Do I need

lying connectivity and service integra-

5G in my building? Do I need Wi-Fi 6?’,

tion. And that’s a really interesting prop-

we just talk about what the differences

osition. Some of the other things we’re

and benefits are. Where convergence

looking at are around convergence. We

takes us is in using both. You can use

always get asked this question: ‘Do I

Wi-Fi and 5G, to get the best experi-

need 5G in-building? Do I need Wi-Fi 6?’

ence possible on that device through

Obviously, we’re a huge Wi-Fi business,

fixed wireless convergence. The innova-

huge Wi-Fi provider. We’re also the UK’s

tion we’re doing with organisations like

68

BT

“We’re going beyond connectivity.

We’re helping give our customers confidence around trust, identity and security; ultimately protecting the UK and the citizens of the UK” — J O H N V I C K E R Y, B T ’ S P R I N C I PA L T E C H N O L O G Y PA R T N E R F O R E N T E R P R I S E

Casa Systems in our core network, will

called neutral host. “There is a model for

provide a much better experience. Your

in-building connectivity which is expe-

phone will be able to switch seamlessly

riencing exponential growth and it’s

between Wi-Fi and 5G without you

called neutral host,” Vickery explains.

having to do anything. It’s all about the

“Let’s say that Lesley owns a corner

user experience. We just want to give

street café with no mobile signal at

our customers a solution that works

all, and all her customers start going

out the box, to deliver the best possible

to Jean’s café down the road who has

experience wherever they are.”

perfect 4G on every network. Now,

A really interesting area for Enterprise is linked to its Wholesale business. It’s

Lesley wants 4G because it impacts her bottom line, but she can’t discriminate w w w.the i nte r fa ce .n et

69

which network her customers are on;

her broadband to give the people in her

some of them will be on EE, some of

cafe 4G or 5G connectivity whatever

them will be on Vodafone, O2, or Three.

network they’re on. Now that is not an

Well BT Wholesale, which is part of

easy thing to do, but there is a group

Enterprise has a great track record of

called JOTS, which is the Joint Operator

providing backhaul connectivity for

Technical Specifications forum and

the UK mobile operators on a whole-

they write the shared specifications for

sale basis, and obviously that capabil-

multi operator systems in the UK, and

ity lends itself very well to this concept

we’re working very closely with them

of neutral host. Ultimately, what we

to innovate on new disruptive ways of

want to deliver is a radio for Lesley’s

achieving that goal. One of the part-

corner cafe that she can just plug into

ners we’re working with is Mavenir and

70

BT

they’re really pioneering the neutral

network end-to-end, but they can

host model for virtualised RAN; part of

deliver that network over common

the open RAN standards.”

infrastructure, thus enabling them

BT recently joined ORAN Alliance,

to get into locations which would

which supports the move towards

have previously been outside of their

open interfaces for mobile and neutral

budget. And even better, it enables

host; probably the first and the most

these business customers, where

compelling use case for virtualised

they’ve got the public coming in and out

RAN. “It means that operators don’t

freely, to deliver in-building connectiv-

need to work together on shared

ity at an affordable price.”

systems. With virtualised RAN, each operator can have a logically separated

Security and trust form a significant component of BT’s portfolio and they w w w.the i nte r fa ce .n et

71

The Enterprise Chief Technology and Information Officer is Fotis Karonis who is also a Managing Director and 5G Executive Advisor. “We are absolutely delivering in our vision to take our business customers beyond limits with us,” Karonis explains. “This means working with fantastic partners to drive real business outcomes that not only benefit our customers but the UK as whole. In May this year, we were first to launch 5G in the UK, with 5G in more places across the region than any other operator, and we’re continuing to invest in providing our customers the best network across the UK. It is our continued leadership in reliable mobile and fixed networks, combined with our team of experts, that positions us with a unique ability to deliver the most innovative technology and unparalleled user experiences as we move towards a digital future.”

72

BT

are proud to be market leaders in cybersecurity. “We are a really trusted brand and I think that’s important for our customers, especially when they’ve got critical data they need to move around.”

Vickery is certainly passionate about the innovation BT can produce for its clients. “CTIO is one of the most agile teams in the business. We’re a small team, more like a start-up and people love coming to work and thinking, ‘Actually, I’m doing something no one’s ever done before.’ We’re delivering world firsts.

We’re co-creating, getting deeper relationships with our customers while delivering better experiences for our colleagues. We’re really engaged and motivated to come to work. But ultimately, it’s about what we deliver to the UK as a whole. We’re going beyond connectivity. We’re helping give our customers confidence around trust, identity and security; ultimately protecting the UK and the citizens of the UK. I think that’s what going ‘Beyond Limits’ is all about.”

w w w.the i nte r fa ce .n et

73

Talking transformation with Phil Clayson, CIO, SSE Energy Services WRITTEN BY

D al e B en to n PRODUCED BY K i ro n C h avd a

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75

Phil Clayson, CIO of SSE Energy Services, discusses how CIOs and organisations worldwide can successfully navigate the complexities and shifting dynamics of transformation

T

ransformation, for any company of any size, is no small feat. The transfor-

mation conversation, understandably, often focuses on the positives and the outcomes but it is important to recognise the challenges; the work and the drive required to achieve those outcomes. One of the key challenges, often cited as the most significant

how complex the journey ahead really is.

Phil Clayson, an experienced CIO, has

challenge in any transformation, is one

overseen a recent transformation of

of culture. A transformation asks an

TalkTalk software and data estate and

organisation to redefine how it oper-

crowned Transformation Leader of the

ates and of course asks its stakehold-

Year 2019 for his efforts, has transforma-

ers, from the top down, to rethink the

tion in his blood. Now CIO of SSE Energy

way they work. Add to that the pres-

Services, Clayson finds himself amidst

sure to transform in the ‘right’ way and

transformation once again, with the

the determination to establish what the

company currently undergoing a publicly

‘right’ way is and it becomes clear just

announced trading separation from

76

SSE

SSE Group, as it enters a new phase in a

successfully navigate the complexities

rapidly changing energy industry.

and shifting dynamics of transformation.

This multi-million-pound migration

A technologist at heart, Clayson’s

journey will require pace and tenacity and

career has been defined by technology

is cultural on many levels, representing

and transformation. Through his roles

a massive opportunity for technologi-

with NewsCorp, Oracle, BT and more

cal debt removal, and a chance to move

recently TalkTalk, Clayson has played a

SSE Energy Services closer to a digi-

key part in a number of significant trans-

tal enabled and data driven world. We

formations and mergers and acquisi-

sit down with Clayson to discuss how

tions and has a broad understanding as to

CIOs and organisations worldwide can

the true impact of digital disruption and w w w.the i nte r fa ce .n et

77

“ If they had been more aware of the customer and in tune as to what they needed, those new entrants would never have got a foothold in the industry” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

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SSE

what that means for the business from both an internal and external perspective. “When I first started in the world of transformation and delivery, the largest part of £bn+ M&A deals was all very much about the technology or the structure of the company,” explains Clayson.

“These journeys were all about buying technology or an asset and then integrating that. The culture was to some degree a secondary consideration in terms of acting out the integration of the deal.”

Today, the transformation conversation is very much alive across a number of industries, with an increasing number of businesses navigating their own journeys to redefine their operations and achieve their goals but as Clayson highlights, the complexities and nuances within those transformation journeys tell a very different story to his earlier days. “The complexity in the market, be it energy, telecommunications or banking, is so much deeper than it was over 20 years ago,” he says.

“It’s now culture led. I’d say that my biggest driver right now in transformation is the people. We’re looking at their emotional curve, where they are along the journey and who is on the metaphorical ‘bus’. People have been conditioned by their companies to operate in a specific way and are quite happy in doing that, but they are now heading into a new world, one that is almost the polar opposite. Getting the people and cultural agenda right in any transformation or acquisition journey or even an unexpected external event such as a cyber attack, that to me is the biggest part of transformation.”

A core challenge at the heart of any transformational journey is understanding and defining exactly what transformation means to a business. Clayson admits w w w.the i nte r fa ce .n et

79

A MOVEMENT. Of the top 5% experts brought together to solve the world’s most complex business problems, delivering value every 90 days.

BUSINESS TRANSFORMATION, TRANSFORMED THE BEST MINDS BROUGHT TOGETHER TO SOLVE THE WORLD’S MOST COMPLEX BUSINESS PROBLEMS.

Sullivan & Stanley (S&S) is a business

no longer working. “You just need to

velocity in the fast-paced consumer-fo-

transformation consultancy that brings

look in the papers to see yet another

cussed world that we work in, I needed

together the best minds, to solve the

company collapse. Businesses today

a model that could flex as we did. S&S’

world’s most complex business prob-

need to change now, not a few years

model has enabled me to deliver the

lems. Through understanding the prob-

down the line” says Lynes. “What sets

same value in their 15-30 day sprints

lems that outdated routes to capability,

us apart at S&S is our ability to quickly

that a traditional model would do in 3

such as recruitment and traditional

get to the root of our client’s problems,

months. By selecting the best of what

management consultancies bring in

then break it down into manageable

S&S can expose in cross-sector knowl-

hindering transformation, S&S has cre-

chunks to deliver value in 15 to 30-day

edge, the top 5% expertise has put us

ated a new full-service model, which fits

sprints, which are part of our 90-day

in a good position for

perfectly in the middle.

cycles. I haven’t seen anyone else in the

future challenges”.

By building small teams from an elite

Another key factor that S&S believes

market promising this” Lynes added.

plays a critical role in the success or

network of experts, known as The

Working closely with SSE through

Change Society, S&S delivers sus-

its own transformational journey, S&S

failure of a change initiative, is how

tainable change for businesses. “Our

operates in a way that goes above and

engaged employees are. “At SSE, we

associates are vetted as the top 5%

beyond the traditional service partner

act as an extension of their team. This

experts in their field, and they have vast

model to truly add value to the jour-

means we engage with everyone we

experience of being on the frontline of

ney. “Phil is a modern-thinking CIO. He

work with, helping them to understand

transformation, with the battle scars

appreciates the operating models, and

the change journey and the part they

to prove it,” says Pat Lynes, founder

the senior leadership down-approach

plan in delivering it. I think this mantra of

and CEO of Sullivan & Stanley (S&S),

changes, which need to happen to

coming in and working collaboratively

award-winning business leader and

make transformation successful across

with a team, allows us to be a proper

author of The Interim Revolution.

any topic. Digital, data, cyber, agile,

transformation partner - someone who

As expert change agents, S&S has

whichever transformation you’re going

trains up existing capability, to leave

found that one of the biggest challeng-

through. That’s the biggest task, getting

an organisation ready for the future of

es businesses face when undertaking

execs bought into the idea.”

business. This has really resonated with

significant transformation is defining

SSE,” says Lynes.

“Phil’s been great at understanding

Founded in 2016 “S&S was created

the journey itself. What does it mean for

the key challenges, then trusting us

a business to transform? Lynes reveals

to engage in the way that we believe

to deliver a new outcome: the fu-

that “transformation is a cycle that all

works best - crowdsource around a

ture-proofing companies need, and the

organisations go through. By the time

problem, engage the best experts, up-

opportunity for experts to embrace the

a transformation ends, you’re already

skill existing capability, then leave when

gig economy,” revealed Lynes. He also

starting another one.”

the job is done. I think that’s a message

added that it is S&S’s “genuine passion

that should be across the market. Find

in helping traditional organisations, such

cept of transformation by collaborative-

a partner that can work with you,”

as SSE, transform into the new world,

ly working with businesses to help them

Lynes claims.

and our community first, commerce

S&S looks to eventually end the con-

Phil Clayson, CIO of SSE Energy Ser-

second mindset, which has really struck

no more long-term and large-scale

vices reinforced this by saying, “Pace is

a chord in the market”, and in response,

transformation plans, which are clearly

critical. For me to deliver the necessary

S&S has seen explosive growth.

embrace constant change. This means

FIND OUT MORE 81

w w w.th e in te r fa ce . n e t

that it’s a word used so much that it

one would be forgiven for thinking that

has become somewhat ubiquitous, and

it was referring to a situation where a

perhaps been downgraded; so many

company is completing re-inventing

businesses and people will use ‘trans-

itself, when many are simply using the

formation’ for varying reasons that it in

word transformation to represent small

fact it loses any true meaning. He points

adjustments in normal day to day busi-

to the fact that, in his experience, when-

ness trading; Transformation is also used

ever someone speaks of a transforma-

to facilitate the need to become better at

tion or a transformational programme,

digital, or use data more effectively, none

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SSE

of which are really transformational on

transformational. Transition is often a

their own any more. “Transformation as a

better word; it implies a more definitive

word almost becomes synonymous with

one way movement to a new state. But,

attempts to get things approved inter-

before you can judge if an organisation

nally or accelerate an initiative,” he says.

has an inherent transition or transforma-

“But it’s often misleading, because every

tion capability in its blood, you need to

industry is delivering massive opera-

review the people and culture within an

tional changes, and not all of these have

organisation; do people see transition (or

enough dramatic effect to be labelled

transformation) as a one-time thing or an

w w w.the i nte r fa ce .n et

83

ongoing operational mode” “There are some people that do see

certainly the culture and the DNA of the business that needs the most energy

it as a one-off and that eventually, the

and commitment to achieve success. In

‘transformation’ elastic stops stretch-

order to define what the end-state tran-

ing and you can often return to the same

sition will be for a business, it is neces-

cultural state you were in prior to this

sary to understand an organisation’s

journey.”

own propensity to be able to continu-

Despite being a technologist by trade,

ously change and define the initial end

Clayson is the first to admit that in actual

state strategically, and then question how

fact the technology is often not the hard-

people and culture can be positioned so

est part of a transformation – it is most

transition becomes iterative.

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SSE

by multinational telecoms companies. A similar shift has happened in the banking and financial sector, with smaller start-up banking companies offering new and exciting services and solutions, and then slowing down as they scale with some being ‘caught’ or acquired by the larger incumbents. But what of the energy sector?

“Energy has been somewhat behind the curve on this journey,” says Clayson.

“Around 2009, long after telecoms had mainly consolidated we saw the early entrant energy providers beginning to take some market share but in recent years, while some have really thrived, many have found themselves struggling to survive. Larger energy companies (and some of the thriving start-ups) are now acquiring these smaller brands and taking on their customers. It’s a cycle we’ve With SSE’s migration journey, Clayson finds himself navigating the complex

seen across all industries.”

What is interesting about this inevita-

nature of change and calling back on his

ble cycle is the bigger picture it reveals.

experience across multiple sectors to

Despite the start-ups and new entrants

be able to do so effectively. During his

disrupting the market, consolidations and

early days within the telecommunica-

the huge changes that have been made

tions industry, the UK had introduced

within the existing incumbents, Clayson

further deregulation which saw an explo-

believes that things could have been

sion of new entrants in the market. Fast

different if only the incumbents had spent

forward to recent years, and most, if not

more time understanding the customer.

all, of these entrants have been acquired

“If they had been more attuned to w w w.the i nte r fa ce .n et

85

what the customer needed, those new entrants would have struggled to get a foothold in the industry,” he says. “The transformation (transition) and change that we are seeing in the industry today would have happened earlier and benefitted the customer.”

With constantly evolving marketplaces, thanks to new entrants and the developments of the incumbents, the modern customer has more choice than ever before. They are informed and do not necessarily have to move to a new bank, energy provider, or telco for a new offering. A customer’s existing suppliers are now more likely to offer what they need.

The telecommunications and banking sectors have what Clayson describes as

then it simply cannot just switch off what

an ‘inertia’; customers who rarely move,

worked before and pave the way for a

they’re seen as very brand loyal.

new way of working in the hope of enter-

Clayson also feels many transforma-

ing a new world. Clayson himself admits

tions fall into the trap of thinking about

that keeping a loyal and long-serving

the process as a set of figures laid out on

team engaged whilst also convincing

a spreadsheet, wherein the transforma-

people that what they’ve spent their

tion will take a company from A to B and

careers doing - while valuable in that

achieve certain measurable outcomes

moment in time may no longer be as sali-

along the way. But as Clayson has noted,

ent in the future - is difficult, functionally

it’s not that simple and it’s hugely impor-

and emotionally. The new product or plat-

tant to consider the cultural changes and

form that we now need people to work

the people involved in transformation. If

with will change their personal values.

a business does have large scale histori-

Taking these diverse groups of people on

cal legacy, be it technology or experience,

that emotional and functional journey is a

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SSE

demanding and delicate challenge.

“Beyond the personal concerns of each person, you also have to look hard at and merge together what the board is also trying to achieve. It’s easy for a board to say they want to change but they need to be inspired and realistic in defining how an organisation will get to where it wants to be in this new world with a level of clarity and direction that will keep those loyal and long-serving people informed and aware of their roles, as much as continuing to keep engaged those already motivated and working on new technology in a modern way,” he says. “If that foresight and strategy is well articulated, and consistently used, then everyone can

“ Getting the people and culture agenda right in any transformation or acquisition journey or even a material external event such as a cyber attack, that to me is the biggest part of transformation” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

engage and achieve their own outcome, while also achieving the board’s aim. Not all companies are as good at this as they should be, and teams and people get confused and lose focus.”

A strategy and a clear vision as to what an organisation is looking to achieve is key. The path is never a straight line and there will inevitably be external factors and shifting dynamics that will take an organisation into directions it may not have set out to take. The key here is in understanding the value that these shifts in course can bring to the overall journey.

Clayson, throughout his career, has seen w w w.the i nte r fa ce .n et

87

this happen first-hand and it’s a key part of his role as a CIO. “You can’t always sail in a straight line. It doesn’t always work. Much of the time you have to take a longer route to your destination,” he says. “My role is often about unblocking obstacles impacting effective forward direction for the team around me. Accepting that moving left or right to get to your destination actually has great value in it. “ Clayson reiterated that an organisation must first be able to communicate a clear message that everyone can aspire, and bring something to. He himself believes that as a leadership team and a board, having this clarity means you’re more than 90% of the way there. “If you can’t do it in an elevator pitch, then something isn’t quite right,” he says.

With a transition of any size and at any scale, there is never a single way of delivering it. There is no one-sizefits-all approach that any company in any industry can follow in order to successfully deliver on their vision. For Clayson, who as we know has been there and done it a number of times now, this is still true but he has one key piece of advice that he will always look to follow. “Take all the people with you that you can. It seems obvious but you need a team who are invested and ready for change,” he says. “If they aren’t and you have to hire, then look for great behaviours and attitude in your new hires; hire people ready for growth and change, and then look at their functional skill set. Sometimes you need some seed-help, short term burst of energy and expertise to help people see and feel what good looks like. You can train skills but you can’t change someone’s core attitude and receptiveness to change as quickly, 88

SSE

w w w.the i nte r fa ce .n et

89

“ Create the vision and stay pointed to it; you will of course move in different directions as you move towards it, but understand that moving left or right as you progress towards your vision actually has great value in it” — P H I L C L AY S O N , C I O , S S E E N E R G Y S E R V I C E S

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SSE

so sometimes having short periods of external advisory support can leap-frog progress. In my current role I have used boutique firms to help accelerate some digital and modern architecture thinking, as well as strategic procurement and strategy. The key modern skills I need quickly are often more available from these types of boutiques than bigger providers, and they serve as a bridge while I then develop and re-skill my internal teams. These boutiques have to be good to survive against the bigger players, they need to mobilise faster, deliver quicker, and have a greater impact. I also have to look at myself occasionally, and test my behaviours and approach, ensuring they’re aligned with the needs of my teams of people, the current and future required culture and the board’s aspirations. I’m an engineer by trade, which gives me an advantage in the technology transformative leadership roles I take, but it’s not all about being a tech person. I need to lead and manage large teams of people to be open to change so that my team, as a whole can be effective. It’s about energising and engaging great people, and taking on their personal journeys, to the transitioned new future world.”

w w w.the i nte r fa ce .n et

91

The digital transformation of customer service WRITTEN BY D a l e B e n to n PRODUCED BY A n d y L l oyd

92

93

Martijn Franssen, Director of Digital Transformation, discusses how KPN’s digital transformation looks to deliver the best omnichannel experience to customers

A

s the largest telecommunications provider in the country, KPN is well and truly the network of the Netherlands. For more than

135 years, KPN has set out to provide secure, reliable and future-proof networks and services to ensure that everyone is connected anytime and anywhere.

As with any technology company, the key to remaining successful has been one of evolution. Over the years, KPN has continuously evolved as a company, in order to continue to provide the services that its customers demand and the network that the Netherlands needs. Though the digital transformation is nothing new, it undeniably defines the conversation for many industries and definitely increases the pressure within KPN to continue - and even more to speed up - the adaptation process. “In order to fuel the transformation journey of KPN, we have to listen more carefully to what’s going on in the market.

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KPN

Martijn Franssen, Director of Digital Transformation

w w w.the i nte r fa ce .n et

95

KPN and Telecats win Customer First Partnership Award For over 10 years KPN and Telecats have been working together to continuously innovate and improve customer service for joint customers and KPN Customer Service itself. Since last year we have changed the way we work together: from a customer-supplier relationship to a partner model in which time-to-market and innovation are paramount. We work together in one scrum team, working in sprints on innovation, development and improvement.

30 seconds AHT per call;

KPN’S CUSTOMER SERVICE de-

correctly using speech recogni-

partment is the point of contact

tion, resulting in far fewer calls

for both private and business

being transferred. This has a

customers. Millions of KPN’s

positive effect on both customer

customer contacts take place

and employee satisfaction. With

Voice Response System (VRS)

by phone and increasingly via

the help of speech routing, we

has increased to 15%;

digital channels such as live chat

have set in motion a movement

and social media. This makes

within KPN Customer Service

in significant savings over the

customer service an important

where we no longer route a

past year; and

source for KPN when it comes

customer contact directly to

to improving service.

an available customer expert

the NPS was also met, increas-

only, but directly direct it to

ing by 17 points over the same

improve KPN’s service to the

the best solution. This can be

period.

customer, we are constantly

a customer expert, but also a

looking for smart ways to sur-

voice driven self-service tool,

Martijn Franssen (KPN)

prise the customer. KPN has a

a reference to a specific online

“Telecats’s innovative solutions

clear technological vision. KPN

page, or a live chat if the call

are technically in line with the

is on its way to ‘conversational

center is busy.

future architecture needed to

In order to continuously

service’ in which, in addition to

By routing calls using speech

• The number of redirected calls has been reduced by 20%; • Self-service capacity in the

• The new collaboration resulted

• The objective of not affecting

implement KPN’s digital strat-

automating the dialogue, it also

recognition, real-time informa-

egy. There is a real “cultural

aims to apply as much intelli-

tion is also available on possible

fit”. Telecats radiates a flexible,

gence and resolving power as

trends and the most frequently

modern approach in everything.

possible. An important step was

asked questions. In addition to

The obtained results are proof

the very successful implemen-

the standard daily, weekly and

of this unique collaboration.

tation of speech routing with

monthly reports, voice recogni-

With a clear voice for Customer

partner Telecats.

tion provides insight into cus-

Service in this collaboration, the

tomer service per subject. This

customer has become the basis

tomers to state a question in

collaboration in the past year

of innovation in the field of cus-

their own words. 90% of all

has proved to be successful because:

tomer contact. KPN and Tele-

questions can be classified

• Speech routing with CTI saves

cats place the Customer First!”

Speech routing allows cus-

www.telecats.com

We live in the information age. Our customers have become streetwise; they

of customer service.

“Having worked with KPN previously,

possess more knowledge around a busi-

so much had changed in the company

ness than ever before, and, more impor-

by the time I returned, particularly when

tantly, they are more demanding as they

it came to internal culture,” explains

can move to competitors at the click of a

Franssen. “The company has become

button. As such, we have to think about

smaller, more lean and mean. Working

how we can retain them. This places

in silos is history, it has become much

greater emphasis and responsibility on

more open and collaborative. But also, the

customer service. Because who else

years in between have helped me find my

than its care representatives can truly

own energy which appears to come from

represent the voice of the customer?”

putting down a vision and start changing

says Martijn Franssen, who is leading

an organisation in order to realise it.”

the change within Customer Service as Director of Digital Transformation.

With almost 20 years’ experience

So the time was right to return to this great company, which is undergoing a significant change once again as it looks

working with KPN initially as a business

to create a seamless experience for its

controller and then cutting his teeth in

customers. Franssen recognised this

a number of international roles within

need and when he was brought in to lead

the media and the insurance industry,

this transformation, the end goal was

Franssen was given the opportunity by

clear. “The overall goal is to be where our

KPN to deliver the digital transformation

customers are in such a way that they will

“In order to fuel the transformation journey of KPN, we have to listen more carefully to what’s going on in the market” — MARTIJN FRANSSEN Director of Digital Transformation

w w w.th e in te r fa ce . n e t

97

have easy, seamless journeys across

serious investments were required

all our channels driven by a digitalisa-

whilst not everyone was convinced that

tion of our way of working,” he says.

live chat was the way to go. There is

“Make life easier and more personalised

always the fear that opening an extra

for the customer by becoming the best

channel will result in additional traffic.

service provider in the Netherlands. This

“However, I don’t believe a customer

helps retain your customers and drives

will contact KPN via any channel just for

your company value.” How he looked to

chitchat,” he says.

achieve this was by a digital transformation of Customer Service, which was to take place in three phases.

The first phase was focused on boosting live chat. As KPN encouraged customers to start their journeys on the website, it was also about acknowledging the fact that not all visitors could easily navigate it and simply needed support in order to prevent them from losing trust and from picking up their phone in case of a next issue.

“Our belief was that we would serve the people starting their journey online, but we could also provide immediate answers to customers that needed us throughout their journeys. This then would also allow us to improve the quality of the online journey, because we could ask the customer immediately why they needed our help and what was missing on the website.”

In order to establish a substantial population of live chat engagements, 98

KPN

“What I became aware of during the

last few years is that the transforma-

seen as ‘unfriendly’ customer service

tion speed has a lot to do with being

but there was method in it. “We noticed

creative. It is about identifying oppor-

that there were a lot of high costs

tunities and convincing stakeholders

attached to this asynchronous channel,”

on the basis of little bits of evidence in

he says. “More importantly, customer

order to continue.”

satisfaction was quite low. So, there was

In order to increase live chat volumes,

a clear incentive to close that channel

KPN shut down its email channel.

and reinvest the resources into the live

Franssen admits this could arguably be

chat population.”

Conversational experts Customer Service, Wieger den Boer and Aviva Dassen

w w w.the i nte r fa ce .n et

99

Conversational development team Technium

100

KPN

With steadily growing live chat volumes, KPN immediately began to see major improvements in its Net Promoter Score (NPS) as detractors were exchanged for promoters. This was even more the case once customers were proactively offered a live chat.

To further grow its live chat population, attention turned to its web care team. Taking a similar approach, KPN looked at introducing live functionality and introduced social chat, which acted as a bridge from the social media channels to the live chat. “Once the customer had a transactional question, such as receive a copy of their invoice, we would offer them a link to live chat and start changing the channel,” says Franssen. “Once we did that, again we started to see the NPS improve and the costs go down.”

Live chat reached its peak of around 30.000 engagements a week once voice-to-chat was introduced within the Voice Response System (VRS) in case waiting time became too high. In hindsight, it became the trigger to start blending voice and non-voice skills to optimise variety for and productivity of our agents.

Franssen is also keen to highlight that it has never been about realising a certain volume of live chats, the goal was to make sure KPN’s customers could rely on the company and could be on channels which they are used to. “In the meantime, the volume has reduced in cases where voice turned out to be more effective within a specific customer journey and vice versa,” explains Franssen. “On top of that I expect that live chat will soon be cannibalised by messaging.

It will be either self service, voice or messaging.” w w w.the i nte r fa ce .n et

101

Walk-In Customer Service, S amuel van Gelder and Iris Kuit

A transformation of this scale asks

evidence you start fuelling the belief

a lot of the existing workforce to rethink

that something’s happening and they

the way they work and take on new

can contribute,” he says.

responsibilities. Some, naturally, may be

“We are doing this with our own people,

fearful or express hesitance in adopting

but also with our external partners such

this new way of working. This is where

as Continuum and Webhelp. So, we visit

a strong sense of change management

the call centres at different locations and

and support is key. Franssen points to

look at what we are doing and where,

a number of ways in which he and his

as customer service, we are heading.

team communicate the value of the

It’s also an opportunity to show why we

transformation to the individual, as well

need them because if we really believe

as the organisation, as a means of fuel-

that that voice of the customer should

ling a belief in the journey. “It’s about

drive our change, then our people are the

showing them the use cases and show-

key representatives in engaging with the

ing them what we are going through

customer and providing us with the right

with this transformation. By showing

signals for change.” w w w.th e in te r fa ce . n e t

103

Phase two of the digital transformation saw Franssen focus more on the digitalisation of other customer touchpoints

company could increase the velocity in how they developed the speech domain.

“They supported us in optimising the

starting with voice, the biggest offline

way we are routing our calls. By look-

volume. KPN implemented speech recog-

ing at the data and monitoring essen-

nition technology to track down the intent

tial KPIs (like repeat callers, handling

of the customer and to remove voice

time, transfer rates, sales conversion),

response system menus. “The problem

we try to improve our performance on

was that too many people were involved

a daily basis.” This approach, Franssen

and that it was only about routing to an

feels, has been incredibly successful, as

available agent,” says Franssen. “At my

it reflects the importance of partners

request, we minimised the number of

acting as real partners and not simply

stakeholders and organised a small agile

as service delivery.

organisation made up of internal staff and our supplier Telecats to ensure that the 104

KPN

The smaller and dedicated team made it easier to have fruitful discussions

“What I became aware of during the last few years is that the transformation speed has a lot to do with being creative. It is about identifying opportunities and convincing stakeholders on the basis of little proof points in order to continue” — MARTIJN FRANSSEN Director of Digital Transformation

about the direction KPN was heading

customers to accept an sms including

in. Not only to ensure that routing qual-

a short URL to provide them with our

ity would be higher but also to digitalise

online self care functionalities.”

the voice response system. The motto

Not only has the deflection rate

was changed from routing to an availa-

increased, it has also increased visibil-

ble agent into getting the best (digital)

ity on its customers due to boosting

solution. In many cases this would still

customer recognition. This has enabled

be one of KPN’s agents, but increas-

data driven routing decisions to ensure

ingly it’s becoming directed to self care

that KPN will reduce customer effort

tooling as well. “This has taken a flight

while also optimising KPN’s results. “For

by introducing our visual IVR (interac-

example, if a customer calls us and we

tive voice response) which turned call-

do see that he or she is suffering from

ers into website visitors,” says Franssen.

an outage, we will proactively inform the

“If a question concerns a topic which is

customer and offer the opportunity to

related to a self care solution, we offer our

keep the customer informed,” he says. w w w.the i nte r fa ce .n et

105

“Same applies for customers with billing issues who need extra support to solve their difficulties; data tells us to transfer them to a desk where we have more time to give the right support.”

Customer data will soon become the main driver for business decisions; the actual question of the customer will still be considered as crucial input, but will be part of broader consideration. Franssen believes this will be a tough balancing act, but a balancing act all the same.

“KPN offers everyone the highest standards possible, but at the same time the market is changing and has changed radically,” he says. “There’s constant pressure on margins and on costs, so we have to become more intelligent. We have to become hyper personalised using real-time data insights in order to reduce customer effort on the one hand, but also to spend our money wisely so we can continue to offer premium services. In order to realise this, we need to enrich our customer data and increase our focus on the usage of machine learning to help us identify what is good for which customer on a specific moment.”

As for data, there is an important role for customer service as well. “We use our customer engagement to understand who the customer is and what they really need through which we can confirm - or not - whether provided next best actions are sufficiently accurate. This is supervised learning with the help of our customer agents. The effect is that customer service, perhaps more than ever before, is quickly moving the heart of the organisation.”

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107

“ The effect is that customer service, perhaps more than ever before, is fast moving towards the heart of the organisation” — MARTIJN FRANSSEN Director of Digital Transformation

it became time to move on to the third

over the last decades. Not only on

phase, which is about the shift towards

the basis of a dialogue, but more and

automating the conversation with the

more by using customer journey data,”

customer. A shift driven by the rise of

explains Franssen.

natural language processing. machine

“In order to speed things up we again

learning and the increasingly availability

started in our own domain within the live

of real-time contextual data. Though it

chat channel. It made sense because, in

is still about recognising the customer

customer service, we feel the pressure to

and their intent, it will be more interac-

make sure we are effective and efficient.

tive than ever before. “We are creating

By introducing a chatbot and automating

the ability to track down the ques-

conversations, we are showing a good

tion behind the question just like we

business case for why we are doing it.” In

have done within Customer Service

less than a year and a half, almost all chat

108

KPN

order to minimise customer frustration as we acknowledge that our customer also needs to get used to a chatbot,” explains Franssen.

The collaboration with Nuance is based on a true partnership as well, where both parties closely work together to increase the maturity of the chatbot. “Over the coming months, this journey will evolve further, our chatbot will become a digital assistant becoming the impersonation of this conversational phase. An assistant which will be equipped with the same tools and insights as our customer representatives, and which will be connected to a Myron Laagland, Product Owner Conversational Customer Service

number of touchpoints across KPN like our messaging channels, TV and voice,” “If we manage to create the basis for a

sessions start in the bot. This already

true digital assistant having its presence

already accomplishes a double-digit

across all the touchpoints, I am confi-

deflection by offering self care, whilst

dent we can truly improve our customer

customer satisfaction remains high.

service as we can offer an unambiguous

One of the reasons that this approach

though personalised customer journey

has been successful is a result of KPN’s

optimising the deployment of self-care

partnership with Nuance. Nuance’s plat-

tooling in combination with our ever-

form Nina made it possible to quickly put

needed and appreciated emphatic and

KPN’s customer service representatives

intelligent customer service experts.”

in position so they could start building dialogues. “At the same time, the platform features helps our conversation specialist to optimise the conversation in w w w.the i nte r fa ce .n et

109

AXA Partners: Digital transformation by the business, for the business WRITTEN BY A n d rew Wo o d s PRODUCED BY A l ex P a g e

110

Emmanuel Touzeau - Chief HR and Communications Officer Copyright: AXA 2019 111

We speak to Romain de Maud’huy Chief Transformation Officer for Travel at AXA Partners, to see how the global insurer is harnessing the latest technology to reconfigure its offerings‌

T

echnology is reshaping the world on both macro and microscopic levels. Industries,

enterprises, processes and products are being constantly reconfigured by the sheer disruptive speed and scale of technological change. The customer and his or her expectations are at the heart of any commercial shift, and the reaction to this on behalf of business is crucially people-led also, no matter how sophisticated the changes.

In no market is the customer more focused upon than insurance. When a client needs coverage or help, insurers need to be swift and smart in all their internal and external operations in a market experiencing massive change and numerous challenges from customers and competitors. Insurers need to 112

AXA PARTNERS

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113

YOUR DIGITAL TRANSFORMATION PARTNER Your Pass delivers a dynamic digital card that sits in the wallet and enables a real-time gateway to provide customers up-to-date information and one-button access to digital support. This is an ideal solution to "up-sell" and "cross-promote" products and services ie Medical Help, Concierge service while saving money versus other communication channels. Engaging with customers via their mobile wallet increases engagement and satisfaction.

FIND OUT MORE

www.yourpass.eu info@yourpass.eu

“A good example of what we do is called corporate mobility; basically, business travel. We’re here to help businesses protect their employees when they’re abroad” — R O M A I N D E M AU D ’ H U Y C H I E F T RA N S FO R M AT I O N O F F I C E R , T R AV E L A X A PA R T N E R S

be both global in reach, coverage and

role, thus ensuring that the subsequent

culture and yet local and empathetic in

work would be ‘by the business, for the

exactly the same regard.

business’.

As one of the largest global insurers,

AXA Partners operates worldwide

AXA’s purpose is to empower people to

on Travel with a physical presence in

live a better life. AXA Partners – an AXA

more than 25 countries and therefore,

transversal business unit - designs,

one of the insurance offerings that

implements and manages projects with

is truly global. “Our distributors are

selected global partners and supports

global,” says de Maud’huy, “and when

AXA entities to develop successful

you distribute to an online travel agent,

local partnerships covering automotive,

they want the same kind of experience

banks and credit cards, retailers, utili-

wherever they sell the product. When

ties and telecoms, digital players, public

you sell through an airline, the clients

sector and non-government organisa-

want the same customer journey and

tions. In 2018, AXA Partners’ revenues

experience. So, it’s global in the sense

reached €3.03 billion.

that it’s a global 24/7 operation serv-

Romain de Maud’huy drives digital transformation of Travel at AXA Partners having joined the company

ing global partners which customers travel globally…”

Digital transformation allows enter-

in 2017. The CEO at the time wanted

prises such as AXA Partners to build

someone from the business to take the

truly global target operating models for w w w.th e in te r fa ce . n e t

115

global footprints that can then administrate across the planet. “We’re mostly in B2B2C and so technology allows us to build only one set of products but with a different customer journey, according to the distributor,” he explains. “We can build a customer journey within the customer journey of our distributor, which all have their own personalities.

I’m not just talking about connectivity through API, it’s really the different tools and the flexibility that allows you to build one set of products – so it’s really industrialised – while enhancing your distributor’s customer journey.”

De Maud’huy built a very tiny transformation team within the different models they could have adopted. “We could have decided to do what most people do, which is to build an independent transformation team which goes full speed and is very efficient with everybody focusing only on that, but then the risk in that is that at the end of the year, you have built something which is not indicative of what the business truly needs. We decided to have a truly tiny transformation team to have a transformation ‘by the business, for the business’.”

For de Maud’huy, speed is essential to a successful digital transformation 116

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w w w.the i nte r fa ce .n et

117

as disruption in the market can happen very quickly. Speed is a key element, he says, because you don’t want to asphyxiate your business with a never-ending transformation. “You want to work fast, because you want nice success stories to come quickly and regularly, to keep the funding across the project, but also to keep people engaged; to keep the energy, to keep the momentum,” he explains. “The first rationale behind the digital transformation at AXA Partners was to put back the customer at the center of everything. It was also about efficiency and not being disrupted down the road,” de Maud’huy explains.

The work at AXA Partners is motivated by ‘simplify, simplify, simplify’.

AXA Partners had a claims system with 12,000 contract templates in it. “We

fundamental, game-changer tools or

changed up and leveraged the AXA

processes, which are pretty heavy to

Group center of expertise’s contract

change, and little quick wins, because

building tools,” de Maud’huy explains,

if you do only the former, people get

“we went from 12,000 templates to just

bored and the energy disappears.

under 50. Simplify, simplify, simplify!”

Another killer is the mix between what

The idea behind the digital transfor-

you invest in the transformation and

mation at AXA Partners was a funda-

what you invest in your BAU to main-

mental revamp, while making sure that

tain your legacy tools a few years more.

in 3-4 years’ time, all the moving parts

You have tools already working, they’re

continue to move together and make

not state-of-the-art digital, but they

sense. “What is essential is the mix

are working. However, if you invest

between what I would call essential,

everything in your transformation, you

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“ Start your digital transformation with the basics, de Maud’huy suggests. “It’s building or confirming your vision; basically identifying your key differentiators” — R O M A I N D E M AU D ’ H U Y C H I E F T RA N S FO R M AT I O N O F F I C E R , T R AV E L A X A PA R T N E R S

asphyxiate your business for 3-4 years

customer journey that you imagine for

and if you don’t invest enough in your

your client, so it’s putting the customer

transformation, because it’s costly, then

back in the middle. The customer

it takes too long.”

experience is at the centre of it and in

Start your digital transformation with

the travel business our vision at AXA

the basics, de Maud’huy suggests. “It’s

Partners is to always have the backs of

building or confirming your vision; basi-

our clients, in whatever they do, wher-

cally identifying your key differentiators.

ever they are. The key differentiator we

I think too many people start trans-

identified in Travel in AXA Partners, is

formation thinking about tools; but it’s

that we believe that we have an edge

really about your vision of your business

in the medical assistance we offer; it’s

and your key differentiators. You build

a real differentiator for us, because it’s

your target operating model around the

actually a life changer. It’s important for w w w.the i nte r fa ce .n et

119

you to be reimbursed if your suitcase is damaged, but it’s far more important that we care of your kids or repatriate your partner if you’re traveling abroad.

So, it’s really about your vision first, then identifying your key differentiators, and building your target operating model around your customer journeys.”

Digital transformations affect people just as much as processes and tools.

Change management can be a real challenge when implementing new operating models and systems and is often not anticipated enough. De Maud’huy likes to tackle that particular obstacle right from the start. “Technical, digital people, business people, tend to forget that change management is essential,” he says. “IT teams tend to focus on delivering their projects and the milestones of those projects, whereas the only thing we should worry about is the impact the project will have after it’s delivered, and the team has been dismantled. Change management is an absolutely key component. You have to work on it at the beginning of your project, because you need to do the change assessments, and train your sponsors. It’s not natural to be a sponsor, especially when you’re using different programmes or project techniques. Whatever you 120

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Copyright: AXA 2019

estimate you need to invest in change management, the truth is that you probably need to double it. One often undermines that component, sadly.”

Another problem with large organisations is how to integrate new and Agile modes of work within big corporations operating with a strict and strong governance. “Agile gives great flexibility, great speed, so that’s great, but the difficulty is most of the big corporations are ‘waterfall’ type of organisations. When you’re actually running Agile projects, you want people to think in Agile, to have daily meetings and to empower the team on their decisions.

But many companies operate in financial quarters and have monthly meetings, yearly budgets and roadmaps.”

De Maud’huy also cites issues surrounding the retaining of the right talent and creating alignment between business teams, IT teams and providers’ teams. “Your business people know the business, and what’s needed and will be able to imagine the business differently.

If you take only people from outside the business, they might have loads of ideas, but they might completely miss the complexity and diversity of the business. However, if you take only people who have been doing the same w w w.the i nte r fa ce .n et

121

“The PLEEZ app offers multiple services through simple voice command or chat access.

With this innovation, ‘AXA Partners sets out to enrich its partners’ customer experience” — R O M A I N D E M AU D ’ H U Y C H I E F T RA N S FO R M AT I O N O F F I C E R , T R AV E L A X A PA R T N E R S

122

AXA PARTNERS

process for years and years, it’s very difficult for them to imagine something radically different. That’s where diversity helps. It’s about managing that balance.”

De Maud’huy realised early on that AXA Partners could not do everything by itself. A helping hand in locating and utilising technological talent, the world over, comes in the form of AXA Next; an entity in charge of innovation at AXA Group level. “It’s in charge of monitoring what’s happening in the tech world and so we have labs in several parts of the world. This division is also in charge of investing in start-ups through funds with AXA Venture Partners. It’s also in charge of identifying interesting business models, looking for entrepreneurs and incubating those business models with Kamet.”

“We’re using one of the Big Five as an integrator on one of our main projects and it’s working very well,” he says. “The Group used them in Asia on a similar project, so the ramp-up was much faster as they knew how to work with us. There are so many things it will be difficult for us to be experts of all, and if you have a start-up which raises 20 million to work on AI, and it is focusing only on that, they will most certainly have an edge.

Having your internal IT experts working with them on a mixed solution is probably to best way forward.”

De Maud’huy believes the soul of AXA Partners’ digital transformation is in putting the customer at the center of the process. “At AXA, we are making the change from being a “payer” to being a “partner” to our customers. In traditional insurance, you only have contacts with your insurer when you pay or when you have a claim, and when that happens the w w w.the i nte r fa ce .n et

123

customer might even feel like he or she

what’s happening in the areas where

is being treated like a potential fraud-

their employees are.”

ster. Basically, at AXA we are moving

“Teleconsultation and parametric

to another paradigm where we are the

insurance are also very interesting,” de

partner of our customer. A good exam-

Maud’huy explains. “In parametric insur-

ple of what we do is in the corporate

ance there is an external provider of

mobility world; basically, business travel.

that data which automatically triggers

We’re here to help businesses protect

reimbursement (through pre-defined

their employees when they’re abroad.

parameters). Reimbursement features

AXA Partners and its clients are bene-

no human decision or discussion and it’s

fitting from Travel Eye which harnesses

completely automatic. The advances

innovations such as feeding the plat-

at AXA Partners are truly enhancing all

form with live geopolitical or natu-

of the emerging technologies through

ral catastrophe events, so they know

the arms of the AXA Group’s Kamet

Copyright: AXA 2019

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AXA PARTNERS

division, which incubates technologies.

experience’. PLEEZ helps make users’

“Kamet has incubated the teleconsulta-

daily lives easier by providing them

tion technology, parametric technology,

with everything from recommenda-

medical platforms we have in use and so

tions to reservations when it comes to

through that incubator, we can actually

restaurant, transportation, hospitality

have access to these technologies.”

and culture and leisure services. The

AXA Partners also offers a completely

app’s AI learns about the preferences

digital concierge based on AI produced

and tastes of the user on a continuous

with a French company based in

basis to improve the services it offers.

Bordeaux. The PLEEZ app offers

Dedicated experts take over to answer

multiple services through simple

questions when required, without

voice command or chat access. With

impacting response time. PLEEZ’s many

this innovation, ‘AXA Partners sets

services are based on AXA’s interna-

out to enrich its partners’ customer

tional network of concierge service

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125

providers, which has evolved over more than 20 years.

“YourPass is a central Europe e-wallet producer we work with in Czech Republic. It’s very energetic, focused and innovative and we hope to be rolling out this solution in other regions soon.

When you buy insurance, we would send you an e-card with a link to the terms and conditions of your contract. When you are travelling, you have your boarding card so receiving your insurance details on an e-wallet is natural. It is also very useful to interact positively with the customer providing him or her with additional services such as PLEEZ or information on the destination. And the customer through the e-card can easily contact us would he or she needs us without having to look for our number or webpage or to travel with the PDF with the insurance contract details.”

The digital technology we approve and provide will transform the way people are working,” says De Maud’huy and will be focusing less on process and even more on the customer. Ironically the technology allows us focus more on empathy and listening.”

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Copyright: AXA 2019

Romain De Maud’huy Head of Travel Transformation at AXA Partners Romain de Maud’huy is the head of the Travel business line Transformation at AXA Partners.

He leads this digital and human multi-dimensional transformation over 20 countries dedicated at improving processes and capabilities. To shape an efficient and customer friendly Travel insurance business he leverages internal and external technologies and numerous change management initiatives focusing on innovation and customer centricity.

Prior to that Romain was responsible of distribution through Partnerships at AXA Mexico. Within this role he oversaw the development of new and existing partnerships including the offer, the sales activation and the quality of service. He also spent 2 years as Head of Strategy and Corporate Finance at AXA Mexico.

During the 2008 financial crisis Romain was heading the Investment Solutions department at AXA Investment Managers in London, after overseeing the AXA France account in Paris for 2 years.

Romain initially joined the AXA Group Head Office in Paris in Finance and Strategy roles. He graduated from a French business school and holds a degree of proficiency in Mandarin from Beijing Language and Culture University and from Fudan University in Shanghai.

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Lisa Moyle, VC Innovations:

EMBRACE INNOVATION

LISA MOYLE, DIRECTOR OF STRATEGY AT VC INNOVATIONS, DISCUSSES THE DISRUPTIVE MARKET OF FINANCIAL SERVICES, AND EXPLORES WHAT IT MEANS TO SEEK OUT AND EMBRACE INNOVATION, WHETHER YOU'RE AN INCUMBENT OR A START-UP WRITTEN BY D a l e B e n to n

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LISTEN TO LISA MOYLE’S PODCAST ON THE DIGITAL INSIGHT’S OUTPUT CHANNELS BELOW

129

TELL US ABOUT YOUR ROLE WITH VC INNOVATIONS I'm Director of Strategy, and co-founder, for a start-up in the media space called VC Innovations. What we do at VC Innovations is take the model that's out there and supporting collaboration and partnerships and the incorporation of new technologies across the sector from start-up to large tech providers to incumbent financial institutions. Our philosophy is that there's a much better way of creating positive results and that's the role that we see ourselves playing in the sector.

HOW HAS THE FINANCIAL SPACE

to leverage that technology and create

CHANGED IN THE PAST 10 YEARS

new businesses and so on. The cost of

SURROUNDING TECHNOLOGY?

that has come down dramatically.

The pace of change has increased

In the UK, in particular, I would say

dramatically. In terms of what I think

that there has been a concerted policy

some of the most significant changes

effort, which is being mirrored and

are, I think it's the extent to which

replicated in many places around the

the barriers to entry into the finan-

world to create more opportunities to

cial services sector have come down

enter the sector and ease that jour-

dramatically. Now there's a combination

ney of innovators into what has been

of factors involved there, one of which is

a largely closed sector dominated by a

access to technology that enables you

few large players.

130

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HOW DO YOU DEFINE WHAT DIGI-

incumbent players behind because they

TAL INNOVATION MEANS? SURELY

are unable to adapt to that speed of

IT MEANS SOMETHING DIFFERENT

change as rapidly as the small, nimble

FOR EVERY BUSINESS?

start-up.

Technology has always been a key driver

I don't think innovation is just about

in the financial services sector if you

technology. Technology is an enabler,

think about things like algorithmic trad-

but it's what you do with it. So, if you're

ing and certain levels of automation

just going to do the same thing in the

within the industry, it has been happen-

same way, but maybe use some new

ing for a very long time. I think the speed

technologies, that's not real innova-

of adoption of technology has changed

tion. When you're offering consumers

so rapidly, and it has left some of the

and businesses new products that are w w w.the i nte r fa ce .n et

131

enabled by technology that didn't exist

lots of examples throughout history of

previously, to me that's real innovation

companies that, even if they've seen

and then delivering it in a different way.

what's coming down the line, haven't

It's really about the impact rather than

been able to adapt or refocus their

how you do it.

industry in a way that allows them to continue and succeed.

HOW CAN YOU STAY AHEAD OF THIS

Technology is part of that, but it can

CHANGING LANDSCAPE?

be driven by so many macro factors,

It's crucial. You can see in industries

whether it's demographic shifts, prefer-

where incumbent players, whether it's

ence, the ways in which people organ-

in financial services or other industries,

ise themselves and go about their daily

haven't adapted and they find them-

lives, the way they work, how they live.

selves out of business. I think there are

These are the kind of things that you're

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tracking all the time and technology is

on and we think about their role in the

an important driver. So you have to look

ecosystem, how that's evolving, what

at how you do that and this is where VC

their own strategy is. There isn't one

Innovations plays a role.

strategy that applies to everyone. Each entity is charged with and responsible

WHAT ROLE WILL VC INNOVATIONS

for thinking about what their strategy

LOOK TO CONTINUE TO PLAY IN

and their place in the ecosystem will be

THIS SORT OF DISRUPTIVE AND

and we work with them to support them

TRANSFORMATIVE TIME?

in achieving their goals.

We work with key stakeholders from

Obviously, nobody knows their busi-

across the industry, whether they're

ness better than the people who are

start-ups, large technology providers,

running it. But when you're a part of

incumbent financial institutions and so

a larger community and ecosystem,

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133

there’s a lot of important learning that

that you've seen over the past five

goes on. So, what does that mean in

plus years where the conversation has

practical terms? If I'm a start-up, for

slightly shifted to ‘I'm going to take you

example, I may start out my journey by

on’, to ‘I'm going to work with you’. That

thinking I'm going to change the world.

partnership and collaboration piece is

I'm going to just intermediate what a

really important.

large financial institution does and so on.

It's not something for many incum-

I may quickly realise that that's a very

bents that comes naturally. It's not the

difficult journey for a start-up to go

way that they're used to working and it's

on, particularly in the financial services

not the way that their institutions are

space where regulation and compliance

organised. So, there are some real chal-

play such an important role, and that my

lenges in there that need to be overcome,

better route to market and to scale is

but it's certainly become a key driver of

to partner with an incumbent financial

change across the industry. I think that

institution. That's certainly something

shift has been really important.

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WHAT ABOUT A CULTURAL SHIFT AMONGST THE PEOPLE WITHIN

adopting new technologies.

These are smart people we are talk-

THESE ORGANISATIONS?

ing about. They're not dumb. They

Technology only gets you so far.

understand the workings of a compli-

Understanding what is a very compli-

cated industry. Often, they under-

cated and complex industry, in

stand what technology means. But

many ways, serving a wide variety

actually putting that into practice

of complicated needs for consum-

when your institution is devised in

ers and businesses takes years of

a particular way that your employ-

experience and understanding. So,

ees are rewarded or commended for

it's not just a case that technol-

performing in a different way within

ogy washes away all the need for

that institution requires a real shift.

that understanding. People are very

You have to enable people to work in a

much enmeshed in their institutions

different way, which means they need

and the way in which they work and

support right from the top. w w w.the i nte r fa ce .n et

135

IS IT COMMON TO SEE BUSINESS FOLLOWING INDUSTRY TRENDS RATHER THAN THEIR BUSINESS NEEDS? That kind of change is always risky, but not changing is riskier. I mean ultimately, what we're talking about here is the ability to deliver better products and services at a lower cost. So incumbent financial institutions come with a history of data and understanding their customers and being enmeshed in particular communities. They don't always use that knowledge to best effect, but not moving is not an option.

Standing still really in this type of tech driven world it's really not an option. In addition, the world is always changing.

As I said earlier, the way people work, the way they organise themselves, the way they live, there are always these overarching trends that any business has to stay aware of, stay on top of, because inertia never really works out well.

HOW DOES VC INNOVATIONS WORK WITH THESE ECOSYSTEMS OF ORGANISATIONS? We tend to frame what we do around kind of three key levers. So, one is around content. We feel that the message of what you do as a business 136

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and what you're trying to achieve in this kind of online digital world is driven by content, right? Not just being hit with sales messages or billboards. That's still part of everyone's strategy. But that kind of informed thought leadership that's underpinned by content.

We work with our partners first and foremost on a content strategy whether that involves thought leadership pieces, reports, and support them in reaching that group of people that they want to receive that message, right? Not just throwing it out there into the ether.

Everything we do is underpinned by content. Content is what helps drive the creation of communities. We would use content working with a variety of stakeholders and clients to drive interest and ignite the imagination of would-be innovators and people who are already in that space to think about this target market of the over 55 who are often kind of overlooked by innovators. And then we, with the kind of creation of those communities and they could be start-ups, regulators, what have you, policy, policy makers, financial institutions. Once you have this interest in community that could be brought together through various forms of content, we then look to create w w w.the i nte r fa ce .n et

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experiences for our clients. By experiences we mean an industry level event or a small breakfast briefing, bringing people together over the journey from content creation of community to the experience allows each stakeholder to understand what the other key drivers are. That understanding is really what forms the base of being able to work together or successfully reach your end buyers. That's really important in driving the ecosystem closer together.

TALK TO ME ABOUT THE IMPORTANCE OF KNOWLEDGE SHARING It won't surprise you to find out that I think it's crucial.

There is no single path to success. Understanding your industry is a constant and never-ending project.

These industry events , the content and all the other stuff is a really important way of doing that.

Information, understanding, all of that is driven by human interactions and seeing what else is out there.

WHAT ADVICE WOULD YOU GIVE TO A FINTECH, A START-UP OR AN INCUMBENT, WITH REGARDS TO EMBARKING ON A JOURNEY OF TRANSFORMATION? Take a good hard look at who's been successful, but probably even more importantly who hasn't, and understand where it fell over for them. I think the stories of failure are in many ways so much more educational than the stories of success and always, always, always have your end customer’s needs at heart.

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We think like a start-up WRITTEN BY A n d rew Wo o d s PRODUCED BY K i ro n C h avd a

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W E S P O K E TO ACC ’ S I T D I V I S I O N H E A D , DA N I E L G U N AWA N S O E S I LO, TO D I S C U S S T H E CO M PA N Y ’ S J O U R N E Y TO D I G I TA L T R A N S F O R M AT I O N

A

stra Credit Companies (ACC) is one of Indonesia’s largest car and heavy equipment

financing companies with a growing reputation for using digital innovation as a business enabler in a location with a reputation for being somewhat cautious with regards to technological adoption both at business and customer levels.

However, this rather traditional landscape will not last forever, and ACC has bold ambitions to transform its business through technology. Indeed, ACC is now two years into a massive digital transformation of both its internal and customer-facing operations, as it strives to better its current standing as Indonesia’s second biggest financier.

ACC has made great strides in focusing on innovation in order to scale up and survive in the largest and fastest-growing country in Southeast Asia, which also boasts the largest internet 142

ACC

user database. ACC’s quest to become the market leader prompted a massive decision in 2017, when, after an initial round of consultancy with Gartner, ACC decided to partner with OutSystems in the digitisation of its operations. We caught up with ACC’s IT Division Head, Daniel Gunawan Soesilo, to discuss the company’s journey through digital transformation.

Based in ACC’s headquarters in Jakarta, Daniel is keen not to take all the credit for the incredible changes afoot at the financiers. “This work is being carried out by the whole team, not just me,” he says.

“I cannot stress that enough. It is a team effort.

Everybody plays their part.” w w w.the i nte r fa ce .n et

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Restaurant

Restaurant

Ranked as one of the world’s lead-

development, in particular, drew

so the business can grow and

ing cloud employers and trusted

the attention of Astra Credit Co.

flourish further, all while shorten-

by thousands of customers world-

(ACC). “ACC is trying to build an

ing cycles for the ACC sales team.”

wide, OutSystems is a software

entire ecosystem to support its

company that provides a low-code

customer and partner networks,”

Enabling this business growth can

platform for rapid application de-

says Mark. “ACC has a distinct dig-

only truly be achieved through true

velopment,

companies

ital transformation roadmap that

collaboration. ACC and OutSystems

to embark on a digital transforma-

in order to have that full ecosys-

regularly touch base to ensure

tion journey. “With our platform,

tem, it has multiple delivery teams

that the road ahead remains col-

our customers are able to embark

trying to deliver on OutSystems.”

laborative at every turn. “We use

on

their

enabling

digital

iterative discussion. They share

transformation

journey in a much shorter time,”

OutSystems also provides rel-

their challenges, their business

explains Mark Weaser, Vice Pres-

evance to the market through

needs, and sometimes they even

ident, Asia Pacific, OutSystems.

analytic features involved in a

share senior-level expectations,”

“We offer a very flexible platform

lot of research and the compa-

explains Mark. “And we will always

that allows customers to build ap-

ny also encompasses a number

advise them of what is available

plications for web, mobile, or both,

of AI components as well. This

in the market or what we see as

quickly and easily. There’s a lot of

made the partnership between

possible. We guide them along the

built-in and off the shelf features

OutSystems and ACC something

way to try to achieve their goals.”

that can help our customers quick-

of a no brainer, as ACC is very

ly integrate with applications and

interested and early adopters

ACC recently launched the first-ev-

core business systems as well.”

of

er digital signature recognized by

advanced

technology.

the Indonesia central bank, in one What brings customers to OutSys-

ACC is currently undertaking a

of the applications that integrates

tems is the speed of delivery.

major digital transformation of its

with external education, internet

“The OutSystems platform has

internal and customer-facing op-

education, and internal education

a

environ-

erations, as it strives to improve its

for an end to end customer expe-

ment for dragging and dropping

current standing as one of Indone-

rience. “This is a very significant

application

logic

sia’s biggest financier. The objec-

milestone for ACC, because we

components. Because there’s no

tive is to use digital experiences

helped them with the technology

hand-coding, it’s much quicker

and applications to improve cus-

part,” explains Mark. But we also

than traditional application devel-

tomer relationships and after-sales

worked closely with them to get

opment,” explains Mark. “The re-

services through, while also gener-

the approval from the central bank

lease cycle becomes shorter and

ating new business opportunities.

to launch that particular feature.”

with one-click deployment,

and

This is where OutSystems came

changing the apps is just as fast.”

into the equation. “Quite simply,

As with any digital transformation,

they want to simplify their end-to-

it is a journey of evolution. Mark

Naturally, application development

end business processes, ” explains

recognises this. “We are looking

speed is a very important factor for

Mark. “The idea they have in mind

forward to creating more suc-

OutSystems customers. Speed of

is to integrate independent sytems

cess stories with them,” he says.

visual

development and

business

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According to Daniel, the aims of the digital transformation were to help the company become more agile in its operations. Some of the top line aims handed to OutSystems included increased processing of loan applications, reconfiguration of price awards to achieve the best possible price and increased capacity for offline new and used car selling. ACC also wanted to improve customer relationships and after-sales services through digitisation while also opening up new business opportunities. However, improving the agility of the systems and operations is not an easy task, and so how does one home in on the right solutions? “We wanted to get a fast and comprehensive partner with the tools that can help us,” Daniel explains. “That’s why we chose a partner. And that’s why we chose OutSystems, and Gartner, one of our consultants.”

ACC kickstarted the process with its partners by mapping various pain points within its business, and the wider landscape of the market and its competitors, locating processes in need of improvement to arrive at a blueprint plan. “After that we needed a roadmap to address our priorities,” Daniel explains. ACC’s motto is: “Think 146

ACC

“ A CC ’ S M OT TO I S : ‘ T H I N K B I G, S TA R T S M A L L A N D S C A L E FA S T ’. I T ’ S A M A N T R A T H AT ACC A D H E R E D S T R I C T LY TO D U R I N G I T S D I G I TA L JOURNEY” — DA N I E L G U N AWA N SO E S I LO IT DIVISION HEAD, ACC

big, start small and scale fast” and it’s a mantra ACC adhered strictly to during its digital journey. “We deliver piece by piece and bit by bit,” he says.

OutSystems was determined to help ACC stand out through diversification of products and services through its digital transformation as it aimed to keep one step ahead of its competition in an ever-evolving technological landscape.

The first step in establishing a strategic framework for this transformation involved the creation of a digital ecosystem to enable digital business optimisation and digital business transformation. w w w.the i nte r fa ce .n et

147

This aimed to increase internal efficiency in daily operational processes while providing customers with a seamless and personalised experience in financing products and services. ACC also wanted to retain existing customers with improved after-sales services and recycled loans to new products and services while increasing internal employee and customer satisfaction. The transformation also aimed at expanding and unlocking new customer segments and boosting product life cycle increments. Of course, the bottom line to all this change was to increase the overall profitability of the company. To this end, Daniel insisted that his team, and the business in general, started to think and behave like a start-up: to be agile.

ACC not only wanted to transform the product itself, but the process too.

“So, point one is the product, end-toend, that’s the customer’s need. And because we know the first component is the customer, it follows that B2C without the B2E component would be messy inside,” says Daniel, “So, we initially focused on the B2C and the internal process. And so, the second phase was the process end-to-end, that the customer also needs.” The 148

ACC

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ACC

third segment of the plan addressed the end-to-end process for employees or the ‘ecosystem’. “We moved onto B2B because we have many partners in the business that we must help in order to transform the process and the partners in resetting the B2C, B2E and B2B; our ecosystem. Gartner helped to gain a good digital transformation perspective on that. The fourth wave of change focused on the process end-to-end that our B2B also needs: the tech-office engine. So, we divided the landscape and initiative into four parts to deliver that piece by piece. These were the four items we wanted to transform, protect and process.”

ACC established two main business strategies. To realise the Digital Business Optimisation, ACC built ACCME (Mobile Enterprise) as an internal process enabler. “It helped us to transform our process end-to-end from the

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acquisition, credit scoring and contract signing. We are the first mover to implement the e-signature capability in the multi-finance industry.” That’s also one of the products embedded into ACC. ONE; part of the second business strategy: Digital Business Transformation.

ACC.ONE is an integrator for all ACC business capabilities and ACC digital initiatives that provides convenience for customers, existing and new, in obtaining financial services. ACC also built exclusive apps to facilitate specific needs such as ACC.BID (online auction marketplace) and ACC.MART (online car marketplace), built to accelerate the sales of ACC inventory as well as ACCTRADE (used car trade and credit purchases) and ACCRENT (operating leases). Soon ACC.ONE will be enriched with cross-selling products and credit funding for priority customers.

The biggest challenge facing ACC was time, which is why it needed to be agile on the approach. “The process had to be agile,” Daniel explains. “The methodology must be small like a start-up.

We just followed the start-up way to deliver the different methods. We wanted to test our process, our thinking, and our people to embrace the start-up way. That’s the culture that 152

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“ T H E P R O C E S S H A D TO B E AG I L E , ” DA N I E L EXPLAINS. “THE METHOD O LO GY M U S T B E S M A L L L I K E A S TA R T - U P. W E J U S T F O L LO W E D T H E S TA R T - U P WAY TO D E L I V E R T H E DIFFERENT METHODS” — DA N I E L G U N AWA N SO E S I LO IT DIVISION HEAD, ACC

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153

aided our transformation. After all, we

The success of the ongoing digi-

were the first company in Indonesia

tal transformation at ACC is visible for

to have an end-to-end solution.” ACC

all to see. The delivery time for ACC.

also needed the right people involved

ONE was an incredible two weeks and

at a time when a global tech skills gap

in early 2019, it became the #1 trending

was proving to be a problem for many

app in Google Play Store, downloaded by

enterprises. “Talent is quite difficult

more than 5,000 users and rated 4.98

because everybody is searching for

stars. “That’s why we are very, very

talent right now. Every start-up, every

happy with our situation, our progress,

big company, has the same objective –

our condition, our achievements,”

digital transformation – and that’s why

Daniel enthuses. One of ACC’s recent

talent is so difficult to find.”

successes was to receive the Mobile

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ACC

YEAR FOUNDED

1982

REGION HQ

Jakarta, IN Excellence Award from OutSystems.

However, Daniel refuses to get carried

“The OutSystems Innovation Awards

away with ACC’s digital progression.

recognise, honour, and celebrate the

“The digital transformation is a journey.

organisations and people that are using

We must follow it continuously because

OutSystems to make IT dramatically

the customer changes, the market

more proactive, productive, and essen-

changes, the partner changes and the

tial to creating business value and driv-

internal process also changes. So that’s

ing innovation,” says OutSystems. “This

why we deliver piece by piece. Every day

year’s winners distinguished themselves

we can improve something.”

in their respective categories, displaying unmatched innovation using the OutSystems platform.” w w w.the i nte r fa ce .n et

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5 INDUSTRIES DRIVING INNOVATION HUBS AROUND THE WORLD WRITTEN BY D a l e B e n to n

I N A 2 0 1 8 R E P O R T, F O R B E S I D E N T I F I E D A T R E N D T H AT WA S S W E E P I N G T H E W O R L D . T H I S T R E N D I S T H E R I S E O F T H E M U LT I - S E C T O R I N N O VAT I O N HUB.

A L L OV E R T H E WO R L D T H E S E H U B S B R I N G

TOGETHER BUSINESS SECTORS AND MODELS, INFRASTRUCTURES AND PHYSICAL RESOURCES T O E N A B L E A N D D R I V E T R U E I N N O VAT I O N . H E R E , W E LO O K AT 5 L E A D I N G I N D U S T R I E S D R I V I N G T H E I N N O VAT I O N H U B C O N V E R S AT I O N

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1

BIOTECHNOLOGY

158

The biotechnology space is

Diego and Copenhagen

unique in that it is a tech-

house just three of the

nology designed for the

leading biotech innovation

betterment of human life

hubs in the world. In a 2018

through DNA. As technol-

report, biotechnology jobs

ogy has advanced dramat-

have grown 28% over the

ically over the last three

last decade, and Boston

decades, the biotechnol-

alone has seen more

ogy space is one that has

BioPharma industry jobs

grown exponentially as a

become available over the

result of it. Naturally, cities

same time period. Known

looking to create innova-

as the Cambridge-Boston.

tion hubs have identified

USA biotech cluster, the

biotechnology as a corner-

hub is home to firms that

stone of the future of inno-

have attracted more than

vation and the betterment

$14bn in investments from

of human life. Boston, San

venture capitalists.

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5 I N D U S T R I E S D R I V I N G I N N OVAT I O N H U B S A R O U N D T H E W O R L D

2 ICT

The Information Communi-

capital funding since 2015

cation Technologies (ICT)

alone. At the heart of Beijing

industry seems almost like

is the Zhongguancun

a cheat, for it is the very

Science Park, China’s

backbone of modern tech-

very own Silicon Valley.

nology today. Innovation

Zhongguancun was founded

in ICT defines our very

nearly 30 years ago and

existence, with tablets,

has since become the key

television, smartphones

driver in turning China into

and even the internet. As

a technological powerhouse.

far as innovation hubs go,

It houses around 9,000

San Francisco, Tokyo and

technology companies from

Beijing are recognised as

all over the world, including

true world leaders. Beijing

Google, Intel, Oracle and IBM

in particular, has seen more

to name a few.

than $70bn in venture

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3

MEDICAL SCIENCE

162

Not too dissimilar to

science. Tel Aviv in particu-

Biotechnology, the Medical

lar, is home to a burgeoning

Science industry is one

digital health sector. At its

that seeks to improve

internationally recognised

the prevention and treat-

Tel Aviv University (TAU)

ment of disease and health

sits the BioMed @TAU. This

issues. Walking hand in

collective of biomedical

hand with technology and

Research Hubs at Tel Aviv

innovation, it is an industry

University performs a vast

that an increasing number

array of research, encom-

of cities around the world

passing basic to trans-

are focusing their efforts

lational research spread

as they look to build their

across several faculties

innovation hubs. Tel Aviv,

and hospitals. The Hubs

Eindhoven and Los Angeles

gather together scientists

are three of the major

from across the univer-

innovation hubs for medical

sity and TAU-affiliated

5 I N D U S T R I E S D R I V I N G I N N OVAT I O N H U B S A R O U N D T H E W O R L D

hospitals that share overlapping research interests. These collaborative groups host conferences and events related to their subject area in order to highlight advances in the field as well as in their own research. The Hubs also provide the opportunity to strengthen collaborative research between scientists at TAU and leverage opportunities for collaborative research, joint grant applications and external funding.

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4 NANOTECH

Once upon a time, nanotech was

Lyon (INL) is a joint research unit

known more for science fiction

designed to develop multidisci-

than reality but over the course

plinary technological research in

of recent history, nanotech has

the field of micro and nanotech-

entered the innovation conver-

nologies and their applications.

sation and transforming the way

Founded in 2006, INL sits on the

we use technology. Singapore,

campus of Ecole Centrale Lyon

Daejeon and Lyon are but three

and supports the overall mission

key cities in which research into

statement of ensuring that the

nanotechnology has established

education its students receive

them as key innovation hubs.

aligns with the needs of indus-

Lyon, once dubbed the “Land

trial enterprises, so that the

of Innovation� has been ranked

engineering students of today

as 8th in the world for nano-

can best respond to the scien-

tech developments. Home to the

tific and societal challenges

Institute of Nanotechnology of

of tomorrow.

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5 PHARMA

166

Frankfurt is a city that

networks, having entered

lives and breathes phar-

into a partnership with

maceutical innovation. It is

CEDEM AG Germany, a

home to the FiZ Frankfurt

pioneering company in

Biotechnology Innovation

the healthcare sector, as

Centre, a market-ori-

it expanded its reach into

ented technology centre

the MENA region. FIZ is

offering small and medi-

working to achieve a data-

um-sized businesses in

based optimization of

the life sciences field a

cancer therapies through

unique basis for innova-

genetic profiling as it looks

tion and growth. In recent

to adopt this innovative

years, FIZ has enhanced

approach to more than

its reputation as a true

365.000 expected cancer

platform for innovation

cases in 2020.

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Value in procurement transformation WRITTEN BY D a l e B e n to n PRODUCED BY H ey ke l O u n i VIDEO BY

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Tre t t F i l m s

LISTEN TO MARTIN LEE’S PODCAST ON THE DIGITAL INSIGHT’S OUTPUT CHANNELS BELOW

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Martin Lee, CPO of KPMG, explores how a procurement transformation, centred around spend control, brings greater value

H

istorically speaking, procure-

of procurement and invested heavily

ment has often been seen as

into transforming it. Procurement can

a mere cost centre and the

truly bring great value to an organisa-

part of the business where buying was

tion, if the organisation recognises that

done. In recent years however, procure-

procurement can be a trusted partner

ment has taken a dramatic shift as

to the business. This certainly forms

more and more businesses around the

the foundation procurement transfor-

world, from large scale global organi-

mation... in which one of the UK’s lead-

sations to smaller and younger compa-

ing providers of professional services,

nies, have redefined their understanding

including audit, tax and advisory

170

KPMG

specialisms - delivering integrated solu-

purchasing space and a key focus on

tions to its clients’ issues – is trans-

procure to pay (P2P) implementation,

forming its procurement processes in

Martin feels his experience and passion

order to bring visibility, control and influ-

for procurement has prepared him well

ence across an increasing proportion of

for this next evolution of procurement

spend to drive informed decision-mak-

at KPMG. “I definitely think it’s one of

ing for the business. Spearheading

the best jobs going, with an unparal-

this transformation journey is Chief

leled involvement in helping an organi-

Procurement Officer, Martin Lee.

sation to ensure trust and deliver value

With over 20 years in the sourcing and

and growth,” he explains. “You touch w w w.the i nte r fa ce .n et

171

Throughout history, there have always been problems.

No one likes them.

But problems inspire us to make things better.

Smart loves problems.

From skills gaps to blackouts, city traffic to ocean plastic.

They even took us to the moon and back on a single tank of gas.

Problems actually move the world forward.

And the people who dare to take them on work with us every step of the way. ibm.com/smart

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See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ŠInternational Business Machines Corp. 2019. B33581

everything from marketing, to the

transformation strategy and so the

running of our buildings, through to the

CPO now has to communicate to each

services we deliver to our clients. It’s

and every part of the business a little

such an impactful role. Gone are the

differently than it did in the past. More

days of buying; it’s about how you work

so, the demands, expectations and skill

with the business to impact how they

sets – and ultimately the very role of

invest and leverage themselves in the

the CPO – has changed too and this is

marketplace to get the right solution, at

something that feeds into this transfor-

the right value and risk profile. With the

mation. “Historically, buying was quite

executive sponsorship and appetite,

simple. Now you’re trying to work people

the platform for procurement is set, like

around, ‘what’s their business case?’

never before, to be value creators.”

What are their change drivers?” he

The broader evolution of procurement has certainly played its part in KPMG’s

says. “It’s less about being a reactive service, but more proactive, working

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173

to understand what they’re actually trying to achieve and how you might bring the supply base and commercial models to that.”

As CPO, Martin is tasked with looking at how procurement, as a trusted partner, can bring information to the table, to help people understand the art of the possible from the marketplace. This, he feels, is something that has developed increasingly in recent years. “Data is key to everything now and you need to be able to provide that data in a way that people can use and understand,” he says. “There is now an expectation of the ease of use as a business, all the way through from the people on the ground delivering services through to the executive board who want to know how they can consume data in a way that gives them an actual insight.”

In early 2019, KPMG set out a procurement strategy, one that would ultimately see procurement play a key role in seeing the company increase its UK business to £3bn by 2022. A key enabler of achieving this is through greater spend control, changing how KPMG buys goods and services across KPMG UK, and through a new procurement organisation and operating model, including the implementation of a new P2P tool. “As an 174

KPMG

“ Historically, buying was quite simple. Now you’re trying to work people around, ‘what’s their business case?’ What are their change drivers?”

— MARTIN LEE CPO, K P M G

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organisation we really wanted to build upon an already successful strategic sourcing team,” explains Martin. “Over time we built a program to implement procurement technology, the opportunity to control, visibility and influence our spend across our supply chain. Technology is at the heart of the change. It’s about creating efficiencies for how we transact, creating the visibility of our spend and our third-party engagement, allowing strategic sourcing decisions with our business stakeholders to be more innovative while delivering greater value, at the same time enhancing the ownership of the solution through an effective controlled purchasing environment.“ A key part of the transformation saw KPMG work closely with IBM to extend its sourcing capabilities. This has seen the building of a hybrid across multiple locations, delivering strategic, tactical

did not have at that stage,” says Martin.

and a procurement operations model to

“And so, it has allowed us to grow our

enable KPMG to influence spend across

strategic sourcing together with their

the entire firm. “The relationship with

breadth and depth of market knowledge

IBM has allowed us to deliver a lever-

and commercial impact. That was a very

aged procurement model across multi-

positive thing from a strategic sourcing

ple locations of onshore, near shore and

point of view.”

offshore from an efficient cost model

The challenge then for KPMG and

and from a skill sets and capability

IBM became one of identifying a way of

perspective that procurement in KPMG

moving towards a more transactional

176

KPMG

way of operating, particularly when it came to deploying procurement feeds from 15,000 users across the business which in turn expanded procurement’s interaction with the business significantly. For Martin, IBM was integral in this regard and a reflection of how the

YEAR FOUNDED

1987

REGION HQ

London, UK

relationship between the two companies far exceeds a simple project delivery relationship. “The relationship is an w w w.the i nte r fa ce .n et

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“ The relationship is an opportunity to provide an agile operating model that we can adjust to how our business evolves” — MARTIN LEE CPO, K P M G

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opportunity to provide an agile operating model that we can adjust to how our business evolves. It gives us a way of getting to skill sets that we didn’t have and thanks to the many clients that they work with in a similar capacity. It creates a useful network,” says Martin. “I can tap into the knowledge and insights from this network and their own procurement capabilities to know whether it validates what we are doing, or to help stretch and challenge my team through insights that create the credibility to be able to help my business.”

The very idea of change, particularly in an organisation the size of KPMG, can understandably be very fearful in many respects and so it’s important that the drivers (in this case the procurement team) work to help the business understand what that change means.

Martin stresses that one of the biggest early learnings and advantages for his team was utilising the capabilities that existed across KPMG, encompassing Change, Communications, Programme Management and Systems Implementation. The team built out a change journey, engaging with business stakeholders to determine their P2P understanding and readiness. Early understanding of P2P was relatively immature and the team had to help them understand the impact, and the opportunity it provided. “I think we’ve realised that throughout that period, we’ve had to put more direct effort into certain groups to help them understand what the opportunity is and understand how they can adapt to that change,” he says. “Our role as leaders is to help support people, understand and appreciate what the opportunity for them is and where they can learn new skills or adapt to roles, or in fact take on 180

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Martin Lee CPO, KPMG As CPO of KPMG’s UK Member firm, Martin leads a team responsible for over £1/2bn of indirect spend. He has a passion for Procurement and transformation, having been in the industry over 20 years, with significant leadership, sourcing and P2P experience.

Over the past year, Martin has led the Procurement transformation at KPMG, creating a new Procurement operating model, expanding the scope and influence of the team, and implementing the Coupa platform to over 15k users, helping to realise enhanced spend control and a step change in value delivery for the firm. w w w.the i nte r fa ce .n et

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“ It’s about making sure that people understand what we are trying to achieve and communicate the vision, so they could understand, appreciate and get excited about that” — MARTIN LEE CPO, K P M G

new accountabilities in that process. It’s

The main procurement transformation

about making sure that people under-

began in early 2019 and so, as Martin

stand what we are trying to achieve and

admits, KPMG is still at the very begin-

communicate the vision, so they could

ning of this journey. The first 12 months

then understand, appreciate and get

will be seen as laying down the founda-

excited about it. Of course, through-

tions for future growth, with the imple-

out that process, you will find people

menting of the technology, and the new

that have to take time to learn about

operating model focused around creat-

what that change means for them and

ing a platform and new ways of work-

their function.”

ing. 2020, as Martin describes, is about

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heavily influence a transformation. The trick for an organisation is to be flexible and proactive enough to be able to evolve with the shifting landscapes, whatever they may be. “Throughout the journey we’ve had to make a few adjustments. Whether they were parts of our business that had changed how they operate, or in effect the relationships that we brought in, it was about learning what they were going to do differently to perhaps what we first thought,” says Martin. “One of the things you have to do is be very clear about what you’re trying to achieve. We had a governance model so that we could operate it with consistency with decisions and make sure that each of those changes was something that considered and made a formal decision against, rather than just meandering through a journey.”

Ultimately, the key to successfully “leveraging that platform to grow our

navigating a journey is understanding

visibility over the supply base, under-

that changes will happen, whether they

standing how our business is going to

are foreseen or not. More important, is

work with us through those systems,

taking key learnings from these changes

and helping us unlock the opportunities

and using the knowledge or the data

the visibility creates”.

and insight and turning that into smarter

The challenge for any transforma-

and more informed decisions moving

tional journey revolves around external

forward. This is something that Martin,

factors. Business needs and demands,

despite being at the very start of this

as well as market dynamics, will all

journey, has already begun to do. “We’ve w w w.the i nte r fa ce .n et

183

built a team around us that are now owning our technology, our processes and our operations. It works on an agile basis, so that if we learn that our approvals aren’t quite right, or we learn that our data isn’t in exactly the right place, we can make quick and easy changes to it,” he says. “Working across our business, we’ve also put in place change agents that enable us to work with key individuals across the business on a more regular ongoing basis to talk about feedback, to talk about new ideas, to talk about change that we’re bringing through and get them to communicate to us about how we can improve and change things.”

Looking at the first 12 months of this journey, Martin can already begin to look at key successes that have been achieved and start to plan out how to build on those for the coming years.

KPMG has successfully rolled out the initial stage of the transformation on time and on budget. Both the hyper care team and the project team that worked with Martin throughout the journey have now completed their activities and moved on to their next project, leaving Martin in the wonderful position of knowing that his team has delivered the solutions and the operating model in place. “We’re now into the position 184

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David Braid, Procurement CoE Lead - SRM, Sustainable Procurement and Supply Chain Risk: What were the challenges you faced during the transformation?

It often felt like a procurement-only programme, but actually, it was a business-wide programme. It was key to ensure that everybody within the business, came into support and sponsorship of that program and worked together. For many business functions the new technology will become their shop window of products and services to the internal business functions.

The transformation teams were able to take away a lot of the pain from us as a procurement team, ensuring that the best practice communications and training was built and delivered. Quite simply, investment in skillful change management pays great dividends.

What will continue to be the key challenges?

As you would expect, delivering to business expectations will continue to be our challenge. Perception of the solution delivered in August could inevitably be misconstrued as, ‘Well it’s done now, isn’t it? It’s fixed.’ Actually it’s not, we’ve just started this journey, we learn every day and the work that has to be done now is about ensuring we’re able to continue providing, and improving the service, through measuring the performance and taking action where required.

There will be wobbles. The journey so far has been a bit like riding your bike with stabilisers. Now hypercare is finished we’ve taken the stabilisers off and all of a sudden

we’re on our own now. Through being on your own, you build that confidence up and in six months’ time we’ll for sure have forgotten that we even had the stabilisers on at all.

How has the transformation been received on a business level?

People know what the big picture is, they know it’s about getting the costs under control, it’s about being able to get the transparency on a supply basis, about being able to take that information and gain increased value. If you’ve got transparency on data, all of a sudden you are a much better partner to the business. Doing the simple stuff really well drives credibility through our business and demonstrating this will deliver on the investments and create greater value going forward.

The successful transition has created energy and engagement, so we take that momentum we now have across the business and focus on delivering our own procurement 2020 strategy and goals across five activity pillars of Spend Control, Customer Experience, Value Creation, Delivery Excellence – all underpinned by Enhanced Capabilities and Behaviours.

How will it impact KPMG from an external perspective?

It allows us to demonstrate that we are operating a trusted and value generating function, raising the profile of KPMG as a forward-looking procurement activity, whilst also providing our business the trusted licence to operate in our client marketplace.

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where we’re thinking proactively rather than reactively,” he says. “Examples where we’ve been able to take business cases to our board to shift policy. That’s been a real game changer for us, and it’s been positively received by them.”

Over the course of the next year, KPMG will look to focus on its pipeline of procurement engagement and projects that will drive the business forward. KPMG will continue to make sure it has the right teams, with the right skill sets and experience in place to succeed.

For Martin, this is ultimately the one true key to success both today, and in the future. “Program would have achieved nothing without putting people in who are committed and who understand and are excited about it,” he says. “Without that, we would never have gotten to where we are. In reality, we’re now shifting up a gear and those people are evolving, alongside us, providing new people to further expand our capability to get to where we want to go.”

LISTEN TO MARTIN LEE’S PODCAST ON THE DIGITAL INSIGHT’S OUTPUT CHANNELS BELOW

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EVENTS OF 2020 W R I T T E N BY Kev i n D av i e s

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THE TECHNOLOGY INDUSTRY CAN EASILY BE DESCRIBED AS THE MOST MERCURIAL AND TRANSFORMATIVE. NEW IDEAS AND INNOVATIONS ARE FUNDAMENTALLY SHIFTING THE BENCHMARKS OF BUSINESS PERFORMANCE, SKILLS DEVELOPMENT AND EMPLOYMENT. THESE TECHNOLOGY CONFERENCES PROVIDE E XPERTS AND INDUSTRY PROFESSIONALS WITH A MUCHNEEDED BIRD’S E YE VIE W OF WHAT ’S HAPPENING NOW AND WHAT THEY CAN EXPECT TOMORROW…

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EVENTS

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24.02.20 MWC The largest mobile event in the world, bringing together the latest innovations and leading-edge technology alongside today’s most influential visionaries. The GSMA MWC series (formally known as Mobile World Congress) is the world’s largest exhibition for the mobile industry and incorporates a thought-leadership conference featuring prominent executives representing global mobile operators, device manufacturers, technology providers, vendors, and content owners.

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