ISSUE 15
|
MAGA ZINE
W W W. T H E I N T E R F A C E . N E T
TOG E T H ER. AS O N E H OW SA I N S BU RY’S FE D TH E N AT IO N
PLUS
How a modern commerce architecture can boost front-end developer job satisfaction
Five ways technology will aid economic recovery EXCLUSIVE INSIGHTS FROM
Digital Transformation: The Trilogy Paul J. Bailo reveals Part 2 of his digital masterclass
YOUR PARTNER FOR DIGITAL TRANSFORMATION
OVERCOMING THE CHALLENGES OF WEB SPEED AND SECURITY Discover Jamstack, a revolutionary new architecture, designed to make the web faster and more secure. Join our next free Jamstack webinar to learn more about the future of web development.
twim is a proud key strategic partner of UPC Switzerland.
WELCOME TO A VERY SPECIAL EDITION OF INTERFACE MAGAZINE! The United Kingdom went into full-scale lockdown on March 23, 2020. For many enterprises, the stresses of a locked-down Britain, battling the virus COVID-19, centred around keeping businesses alive amid dramatic shifts in working practices. For others, it was a very different challenge. For the big supermarkets, lockdown represented an enormous logistical spike in operations during a time of unprecedented uncertainty. Supermarkets were literally feeding the nation. “It’s unprecedented to run a business like ours, a complex business that requires so much day-to-day intense transaction,
EDITOR IN CHIEF Andrew Woods
all remotely,” Sainsbury’s Group CIO, Phil Jordan explains. “We
EDITOR
had to maintain normal working conditions to an extent for
Dale Benton
people who were in stores – the vast majority of the people who work for Sainsbury’s have been instore during the pandemic – with social distancing and various other things we had to do, to
SOCIAL MEDIA MANAGER Callum Rivett
keep colleagues and customers safe. And doing all that while
CONTRIBUTING EDITORS
everybody else who provides a support service to the stores
Nell Walker Kevin Davies
were not working in the same location. To be fair, we’ve done an incredible job, because we pivoted the whole company to work from home in a couple of weeks, and at no point did any of that ever cause any disruption to the stores.”
CREATIVE LEAD Mitchell Park
Executive Director of OTP Bank Romania, Sulaiman Abdulla,
VP GLOBAL FINTECH & INSURTECH
Manager of the Procurement and Contracts Section at UAE telco
Alex Page
We also have exclusive interviews with Constantin Mares,
regulator TRA and Patrick Kammermann, CIO at EF Education. Plus, we list 5 ways in which technology will aid the postCovid recovery and we feature another digital transformation
VP TECHNOLOGY Andy Lloyd Craig Daniels
masterclass with Paul J. Bailo.
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
3
CONTENTS
Sainsbury’s Tech
6 Education First
58
How a modern commerce architecture can boost front-end developer job satisfaction
48
OTP Bank
88 Digital strategist Dr. Paul J. Bailo returns for part two of his leadership series to discuss digital transformation planning
Britenet
110
80 Ortoo
120 Five ways technology will aid economic recovery
130
TRA
142
TOGETHER. AS ONE H OW SAINSBURY’S FED THE NATION Interface Magazine talks to Sainsbury’s Group CIO Phil Jordan who reveals how the grocery giant tackled COVID-19…
WRI T T EN BY PRODUCED BY
6
A n d r e w Wo o d s K ir o n C h a vd a
7
T
he United Kingdom went into
unified, multi-brand Technology, Digital &
full-scale lockdown on March
Data Division, Sainsbury’s Tech, already
23, 2020. For many enter-
had one eye trained on any potential
prises, the stresses of a locked-down
disruption caused by Britain’s exit from
Britain, battling the virus COVID-19, centred
the EU and so, the lockdown meant it
around keeping businesses alive amid
could adapt and accelerate some of
dramatic shifts in working practices. For
these plans. “When the word came that
others, it was a very different challenge.
we were going into lockdown, we’d been
For the big supermarkets, lockdown
anticipating it,” explains Phil Jordan, CIO
represented an enormous logistical spike
of Sainsbury’s. “We spent a lot of time
in operations during a time of unprece-
thinking about what policy-makers were
dented uncertainty. Supermarkets were
going to do and the impact that might
literally feeding the nation.
have for customers, colleagues and our
Sainsbury’s and its newly established 8
COVID-19 REPORT
complex supply chains across multiple
S A I N S B U RY ’ S T EC H - H O W W E F E D T H E N AT I O N
countries. We’d become attuned to that
putting brilliant technology into the hands
process as a result of planning for all the
of brilliant people”, Jordan said upon
various Brexit milestones of the last few
its launch. “Sainsbury’s Tech is all about
years.”
giving customers great experiences, leveraging data like a start-up, but at a scale
SAINSBURY’S TECH
they can’t offer while fostering a culture of
Sainsbury’s Tech was launched in the
experimental curiosity.”
autumn of 2019 and it is the customer
“It’s unprecedented to run a busi-
who lies at the heart of this new divi-
ness like ours, a complex business that
sion headed up by Jordan to provide
requires so much day-to-day intense
the multi-brand, multi-channel capability
transaction, all remotely,” Jordan
that powers the different brands: Argos,
explains. “We had to maintain normal
Nectar, Tu clothing, Sainsbury’s Bank,
working conditions to an extent for
Habitat and, of course, Sainsbury’s, “by
people who were in stores – the vast w w w.t h e i n t e r f a c e . n e t
9
majority of the people who work for Sainsbury’s have been instore during the pandemic – with social distancing and various other things we had to do, to keep colleagues and customers safe. And doing all that while everybody else who provides a support service to the stores were not working in the same location. To be fair, we’ve done an incredible job, because we pivoted the whole company to work from home in a couple of weeks, and at no point did any of that ever cause any disruption to the stores.” Innovation wasn’t limited to digital operations, either, as colleague and customer safety forced stores to adapt ways of working, including the checkout experience, and every aspect of where customers interact with colleagues, to try and make it as safe as possible. “We were doing that sometimes with very little information as to what was needed and what might happen,” Jordan explains. “By just being brave enough to do the right thing and iterate and innovate as we go, and make lots of small changes to make sure we’re reacting to customer needs across all of our estate, such as Argos flipping into being Prepay only, and then Pick-up In Store, for everything. And then scaling our Fast Track and our Delivery teams to try and reach all the customers. Seeing sales numbers much higher than expected without any stores being open is a great example of how we’ve innovated.” Mark Lowe is Senior Software Engineer, Retail & Labour Management. “COVID-19 represented a massive challenge in keeping the stores running for our customers, getting the stock out on the shelves, supporting
10
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
w w w.t h e i n t e r f a c e . n e t
11
Understanding customers better with Snowflake’s Cloud Data Platform
WHAT DOES THE FUTURE HOLD? Perceiving the need to rethink processes and end data silos, Sainsbury’s chose Snowflake, and initiated their cloud data migration with a clear goal in mind: to democratize all of the data across the business.
make use of before due to the data being siloed is now available to query and run analytics against. Empowering many divisions of analysts across the group to make more enriched data driven decisions.
“Snowflake is helping us conquer the hard yards of what it means to rebuild a data ecosystem in the cloud and that gets right at the heart of our business strategy of knowing our customers better than anyone else” Helen Hunter said, Group Chief Data Officer, Sainsbury’s.
The result: by consolidating multiple disparate and functional siloed data assets, the granularity of reporting and the accuracy of Sainsbury’s real time data has been unlocked across the group through Snowflake’s cloud data platform housing an ever increasing volume of valuable data. This is enabling quicker decision making and a continuous enrichment of data in a centralised pool to make use of. With Snowflake’s instant scaling flexibility, elasticity and per-second pricing, performance constraints are no longer an issue.
Snowflake’s cloud data platform is right in the core of the so-called ASPIRE solution. This is Sainsbury’s own platform for fast insight and reporting across its multiple brands within the organisation. It connects the huge volume of data sources and ingestion systems to the organisations data consumers and analytical dashboards throughout a multitude of data workloads.
“Snowflake is helping us conquer the hard yards of what it means to rebuild a data ecosystem in the cloud and that gets right at the heart of our business strategy of knowing our customers better than anyone else.” HELEN HUNTER Group Chief Data Officer, Sainsbury’s
When migrating, Sainsbury’s decided to go for a full cloud solution. The migration encompassed every aspect of the business from the data warehouse to the supply chain and loyalty programme analytics. They separated the project into phases and replaced incumbent technologies. Ingesting everything into Snowflake finally solved the data silos issue and democratised data analytics at Sainsbury’s.
During these difficult times, Sainsbury’s adapted rapidly and up-scaled their technology and business operations in a way that wouldn’t be possible without Snowflake. Sainsbury’s strives to know their customers better than anyone else so that they can provide great prices on products and services wherever and whenever their customers would like to shop online and in-store, with data being at the core of this and enabling them to continuously improve, optimise and automate. Snowflake could not be prouder to work closely with Sainsbury’s throughout this extremely critical and challenging time during the pandemic.
“We’ve been able to build new data products for the organization that users have never historically been able to access.” HELEN HUNTER Group Chief Data Officer, Sainsbury’s
Sainsbury’s now has all of its data within one single place, removing what was obsolete and cleaning up codes and inefficiencies. Data that previously was not available to
snowflake.com © 2020 Snowflake. All rights reserved.
our colleagues etc.,” he tells us. “And so, we looked at streamlining operations quickly wherever we could. We needed to create more shelf space for high volume lines and temporarily removed certain non-core lines, helping dress our stores for our customers to get what they wanted, quickly. We also had a massive shift in our store colleagues’ working patterns as well. As you’ll be aware, Argos and Habitat stores were closed and many of those colleagues were able to come and help out in Sainsbury’s stores as customers’ shopping patterns changed.” The fact that the entire store installa-
M A R K G A R S TA N G , S E N I O R E N G I N E E R I N G M A N A G E R – I N S TA L L AT I O N S E R V I C E S
tion team was homebased pretty much from the middle of March, meant working remotely with suppliers at the stag-
across the estate. During lockdown the
ing centre in Milton Keynes. The Store
team re-directed its efforts in support-
Installations team provides support for
ing the increasing demand for grocer-
store openings, closures, refits and
ies online, Click & Collect and devices
expansions and following the decision
for colleagues instore. “All the way
to lockdown had to instantly respond to
through this, we remained open and had
changes to store layout and the numbers
a small set of engineers out in the field
of checkouts etc., while at the same
reacting and responding to some of the
time respecting distancing measures
stuff we had to do just to help our store
in undertaking engineering work. Mark
colleagues,” Garstang explains. “We had
Garstang is Senior Engineering Manager,
to learn how to use Teams and technol-
Installation Services, which installs
ogy more to work remotely with suppli-
most of the technology to new stores
ers. We also had to learn how to work
14
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
under the new social distancing policies
about service availability at that point,”
and procedures coming into play to allow
Jordan explains. “We were just in a
us on site to undertake work. We became
period of rcrazy consumer panic. People
part of the critical force helping the store
buying more toilet rolls than they knew
teams pivot towards what was needed to
what to do with and various other things.
support our colleagues and our custom-
It’s like Christmas and Black Friday
ers in stores, such as improving our till
happening at the same time and out
capacity while the volume of our grocer-
of the blue. My fear is always that we
ies online went through the roof.”
must run the business at high intensity,
As the UK started to panic buy, Jordan
24/7 and we can’t afford to fail. And I’m
and his colleagues had to keep oper-
delighted to say we prevailed, and the
ations agile and scalable to unprece-
technology stood up amazingly well.”
dented demand. “My fear was always
Colin Smith, Head of Engineering for
w w w.t h e i n t e r f a c e . n e t
15
COLIN SMITH, HEAD OF ENGINEERING FOR LOGISTICS
This image is pre-covid-19 16
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN Logistics outlines those early days of lockdown. “It was a case of how quickly the business could respond to panic buying. We had an immediate demand placed upon us from our logistics operations team for more capacity. Bear in mind this happened pretty much in the space of a few days, where traditionally we prepare for Christmas 6-8 months in advance. And, to the credit of my team – ‘my family’ – we responded fantastically in an awesome way. We mobilised five additional facilities in the space of six days to deliver circa two million additional cases into the network to meet the demands placed upon the stores. Traditionally that would have taken one site, around three weeks, but we turned around five sites in the space of six days. Don’t get me wrong, it was incredibly hard, and the team worked really long hours, but it’s really shown in how we got behind Feeding the Nation, by supporting our store colleagues on the front line.” As digital operations spiked as a result of raging demand, it was essential to keep that digital infrastructure strong and safe. Simon Grant, Senior IS Manager, Product Assurance and Security Testing. “Our first priority was
w w w.t h e i n t e r f a c e . n e t
17
An adaptable, resilient and purpose-driven technology partnership is key to Sainsbury’s success TCS’s engagement with Sainsbury’s as a Strategic Technology Partner spans 13 years and we are now enabling their evolution into a Leading multi brand multi channel retailer of the future, by leveraging the power of TCS Business 4.0TM framework. In our experience, enterprises that have demonstrated Business 4.0™ behaviours - leveraging ecosystems, personalising at scale, embracing risk, and creating exponential value— have pivoted towards growth, transformation, and sustainability.
www.tcs.com
The COVID-19 pandemic has put enormous pressure on business communities everywhere. During such disruptive times, all businesses look to reliable partners to help them navigate the storm. TCS teams swiftly switched into to the new ways of working Leveraging TCS’ SBWS™ (Secure Borderless Workspaces) framework, and put in place robust control measures to ensure business as usual through a stable and secure estate to handle surged volumes and adapt quickly to changes. “During the pandemic, TCS has been working side by side with various teams from across Sainsbury’s to respond quickly to changing customer behaviour and helping in the mission to ‘Feed the Nation’. We are proud to partner in Sainsbury’s transformation to build a responsive and resilient supply chain thereby ensuring future-readiness,” said Shekar Krishnan, Head of Retail: UK, TCS TCS works closely with product families across Sainsbury’s to deliver a modern, efficient technology estate and we continue to deliver these outcomes using our Location Independent distributed Agile model. Sainsbury’s also benefits from our significant experience in technology and business transformation with global retailers. Sainsbury’s vision is to supply any product, from anywhere, to anywhere, wherever and whenever the customer wants, and TCS enables this using a solid foundation of
engineering and business expertise. A number of these initiatives have been active since late 2019, and the disruption caused by COVID19 did not impact TCS’ ability to deliver these outcomes ensuring that there was no impact on the ongoing program delivery. This allowed TCS to deliver a quick turnaround for critical business requirements borne out of the pandemic such as: • Technology changes that provided quick access to Sainsbury’s applications for elderly citizens, NHS staff and other vulnerable carers • Significant enhancements in the logistics and warehousing applications to support Sainsbury’s ongoing effort to “Feed the Nation”. • Quick turnaround in enabling regulatory and legally mandated changes to Sainsbury’s internal systems that allowed colleagues to work un-hindered during the crisis
colleague experience, reduction in dual systems for managers and improved data governance TCS has enabled a number of organisations to unlock value by leveraging the power of its strategic Algo Retail™framework, a playbook that integrates data and algorithms across the value chain. Sainsbury’s has demonstrated many of these traits in abundance. At TCS, we are convinced that Sainsbury’s appetite to take well-informed, measured risks and embrace a partner-oriented approach are strong indicators of its ability to deliver a customer-centric, datadriven transformation strategy. “Our longstanding partnership with Sainsbury’s has only deepened and thrived in this new, highly complex, volatile, and fast evolving marketplace. I believe it is a testament to the strong foundations we have built together to enable improved customer focus, extended market leadership, and accelerated business success,” Shekar concludes.
• Supported an accelerated rollout of collaboration and communication tools for all colleagues facing an entirely new day-today lived experience during lockdown • Automation initiatives in retail stores that helped reduce the time-to-market time by 60% and resulted in significant cost savings. • Integrated Sainsbury’s One Group-wide source of colleague and organisation data. Providing a consistent
Shekar Krishnan, Head of Retail: UK, TCS
FIN D O U T M O RE
S I M O N G R A N T, S E N I O R I S M A N A G E R , PRODUCT ASSURANCE AND SECURITY TESTING
the people and the team. Very quickly
ensure we could enable our colleagues
after going into lockdown, there was
to work effectively, whilst understand-
clearly a need to support the broader
ing what risks that might present, and
business. People had to adapt and
making sure we had the right controls
change their ways of working to perform
to keep Sainsbury’s and our custom-
their operations, which didn’t quite
ers, colleagues and data, safe. This was
work in a remote setting. Some exam-
particularly the case with our Contact
ples being systems you could only
Centres, moving these normally static
access by being connected directly to
teams to a remote working model was
the Sainsbury’s network and a require-
their biggest challenge as they had never
ment for a business to have connections
worked in this way before.”
from home. Clearly that can open more
Once the panic buying started to
risks, so our teams were really busy
subside, it was customer channel pref-
consulting on these immediate needs to
erence that started to shift, affecting scale while the operations teams were
20
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
working from home. “Given that none of
Relationship Manager at Sainsbury’s and
our teams are sitting together or with the
it was her job to keep relationships with
business stakeholder, how do we hear
tech suppliers open and delivering, as
and interpret and deliver on this real
they helped to support the growing digi-
adaptability and agility?” Jordan posits.
tal operation. “It was clear to us, before
“So, if the first wave of concern is can
lockdown started in March, that it was
we keep it running? The second wave
coming. So, we took an opportunity in
becomes ‘Are we agile enough? Are
the middle of February, whilst we were all
we adaptive enough, given that we’re
still together, to create a 90-day plan for
remote working, to meet the demand of
what we wanted to focus on, and deliver,
change?’ COVID-19 has seen endless
as a team, until the end of June.”
innovation in digital, as we scaled from 300,000 to 700,000 delivery slots a
CARING FOR THE COMMUNITY
week.”
One of the biggest concerns, nation-
Sarah Hirtenjohann is Senior Supplier
ally, was centred upon those members w w w.t h e i n t e r f a c e . n e t
21
OUTMANOEUVRING UNCERTAINTY, TOGETHER. As Accenture continues to be a key partner to Argos and Sainsbury’s, Doug Blyth, Managing Director at Accenture Technology, discusses how that relationship has gone from strength to strength in uncertain times. We talked last year about how
well as digital stores and
been doing to help make it
Accenture had helped Argos
collection points in Sainsbury’s
all happen.
on their successful Digital
locations.
Transformation and how you
These capabilities, coupled
Could you talk us through some
were about to help Sainsbury’s
with a shift to a more ‘product
of the ways Accenture teams
Tech transition to an agile
led’ agile delivery approach at
helped in this response?
delivery model. Has this been
Sainsbury’s Tech, have meant
In the first instance, our DevOps
tested during the COVID-19
that Argos has been able to
support team worked rapidly to
pandemic?
adapt fast. They’ve transitioned
help Argos adhere to the
What a rollercoaster year it has
rapidly to a ‘contactless’
government guidelines. At the
been. COVID really has turned
experience for customers,
same time, our Forecasting and
the retail industry upside down.
making it easier than ever to
Replenishment teams quickly
Despite this, Sainsbury’s and
shop online and ensuring
adjusted algorithms to account
Argos were well placed to
continued service to the British
for spiking demand and plan for
respond to the challenges.
public during these
both temporary store closures
The transformation journey we
unprecedented times.
and reopening. This enabled
discussed last year has been a
It’s meant that, despite the
Argos to open 100 more
big part of this success. For
disruption, Argos has seen a
collection points in Sainsbury’s
Argos in particular, it has given
10.7% increase in sales during
stores and reconfigure the supply
them class leading same day
the lockdown period. We are
chain to serve them. We also
omnichannel collection and
proud of the work our teams
helped scale up various services
home delivery propositions, as
within Sainsbury’s Tech have
to support increasing customer
Businesses needed to adapt quickly to the new pressures of COVID-19. Accenture’s Maddie Walker and Stéphane Crosnier share inspiring stories of how companies have re-invented their supply chains to meet changing demands and how this experience could help create more agile and resilient operations in the long-term.
demand for same day delivery.
How has the COVID-19
occasional shoppers turning
Elsewhere, we accelerated
pandemic forced Accenture
to digital channels. When
delivery on key programmes to
to evolve and change?
customers do venture out, there is
help meet new demands. One
All of these successes, and
currently a clear preference to
was an ongoing project to
more, were delivered with our
shop local. This change in
improve small item home
teams working from home in
channel mix coincides with
deliveries by shifting them from
the UK and India. This seamless
a change in mindset. Our
a single central delivery centre to
transition to home working
research shows consumers
regional fulfilment centres. We
was only possible because
are now minded to shop more
were entering the pilot
Accenture has already invested
healthily and with a greater
phase when lockdown started,
so heavily in enabling more
regard for sustainability.
presenting immediate
flexible working. It has been
For retailers like Sainsbury’s and
operational challenges. Some
really impressive to see how
Argos, the agility to respond
colleagues from the existing
this commitment has paid off
rapidly to these changing
delivery centre were required to
during the crisis.
dynamics – and outmanoeuvre
self-isolate while delivery centre
future uncertainty – will be key.
and home delivery volumes
What do you think the future
tripled. Despite this, the agile
of retail will look like?
To read more about how
model we have worked to
The world will clearly be different
COVID-19 has changed
establish with Sainsbury’s Tech
for Retailers post-COVID. We
consumer behaviour,
meant we could accelerate the
expect use of eCommerce to
take a look at Accenture’s
national rollout by 4 weeks.
rise by 160% thanks to new or
latest research.
M Y L E S N OTO N, S E N I O R E N G I N E E R I N G M A N AG E R
24
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
of the community who would find lockdown especially difficult and it was also a high priority for Sainsbury’s. Myles Noton, Senior Engineering Manager, Discover, Decide and Loyalty. “We reintroduced a feature called Recurring Slots, prioritising customers to book recurring slots every week. A lot of that work was borne out of seeing the numbers we saw during lockdown, and analysing what people were doing,” he says. “The biggest part of the work we were doing was aimed at the elderly, disabled and vulnerable customers; we wanted to prioritise those, in addition to allowing other people to book slots. Obviously, there were many teams around Sainsbury’s trying to work out how to get more Delivery and Click & Collect capacity. How do we make sure elderly, disabled and vulnerable customers customers are prioritised? How do we make sure everybody else can get a Click & Collect slot?” Jordan is particularly proud of how Sainsbury’s identified and responded to the most vulnerable members of the community. “We’ve taken a customer base and said: ‘Actually, we’re going to assess a vulnerability qualification for the data we know about you and come w w w.t h e i n t e r f a c e . n e t
25
back to you directly and say we think you
do that above all our competitors, and
deserve, and you need, this delivery slot’.
before the government had given us
That’s incredibly innovative. We were the
any data. We also knew that some of our
first to do that. So, in all aspects of our
competitors, some of whom are consid-
business model, we’ve had to be innova-
ered to be digital-first grocery online
tive because there’s been such a clear
providers, had a much harder time than
need to apply change to what is a pretty
we did in keeping systems running under
well-established business and to do it
a great strain.”
quickly and to take some risk in doing it
Data analytics were vital to bolstering
as well. I think it’s absolutely bred a huge
Sainsbury’s response to the new trad-
amount of innovation. And I’m delighted
ing conditions and were provided by
to say that we’ve done that in a very
the Applied Data & Analytics team. “As
Sainsbury’s way.”
part of the COVID19 response, we had
“We used our own data to establish
offered to help the business in perform-
and qualify who was elderly, disabled or
ing key pieces of analysis,” says Steven
vulnerable and offered delivery slots to
Henson-Tyers, Data Visualisation &
them as a priority. We were the first to
Automation Manager, Applied Data &
“ It’s unprecedented to run a business like ours, a complex business that requires so much day-to-day intense transaction, all remotely” — P H I L J O R DA N , G R O U P C I O
26
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN Analytics. “We addressed questions such as: ‘Should we shut our stores earlier in the day to enable restocking of shelves?’;
dashboards at speed as the situation
‘Are elderly, disabled and vulnerable
evolved. “We had to work with multiple
customers taking the opportunity to use
engineering teams to tactically deliver
the dedicated priority shopping hour in
data that had never been in Aspire (the
stores?’ We asked whether elderly, disa-
Group’s democratised data asset) before
bled and vulnerable were using prior-
and find new ways to merge the data
ity booking for online delivery slots, or
sets together and provide a clear and
whether we were losing sales by shutting
easy-to-use model to support the ques-
Argos stores or were customers moving
tions above. We then took the analysis
to different order fulfilment channels?”
and quickly turned around a brand new
Within the ‘viz team’, Henson-Tyers
MicroStrategy project within a week of
and his colleagues worked on a way
getting the data. We replaced the hand
to quickly and easily build the informa-
cranked models with fully automated
tion in a clear and consistent manner
dashboards that allowed further self-ser-
that allowed them to develop and alter
vice analysis. The output of our work
w w w.t h e i n t e r f a c e . n e t
27
Born from Retail Built for Retailers
Fi
nd
ou
tm
or
e
Sharing our experiences with retailers and partners for the most important customer journey – the one you lead.
Customer journeys are more
systems be modern, con-
same-day pickup. Retailers
than a marketing term. They
nected and built on an agile
must now proactively engage
are the constant, fluid moments
architecture supporting
at every step - before, during,
– before, during, and after
proactive engagement. When
and after purchase. However,
a purchase – upon which your
this happens over 70% of
88% of retailers don’t believe
customer relationships are
retailers report that the new
they personalize effectively,
built. With customers making
value gained through cloud
most forecasts have insufficient
an increasing number of
migration goes directly to
inputs, and most CXO’s don’t
choices before, during, and
innovation projects.
know where to begin in the
Retailers also collect data
store. They rate AI/ML their #1
rience must be earned for
from a multitude of systems
opportunity, but the complexity
retailers to keep their custom-
when engaging customers and
to build and deploy leaves it the
er’s journey progressing to
must quickly bring relevant
#8 spending priority.
them. This means every choice
data together to form a com-
must be guided, which is only
plete picture of their customer’s
ers need the right partner to
possible by moving from
journey. With that visibility,
empower them and offer the
reactive to proactive retailers.
informed decisions can be
kind of unique experience nec-
In other words, leading their
made and more advanced
essary to address not only the
customer’s journey.
solutions – relying on that
unprecedented challenges of
data for conversion – can be
today, but the new opportuni-
has traditionally focused on
deployed. However, even when
ties coming tomorrow.
connecting channels one
modernizing and existing
experience at a time, now
systems through reinvention
only cloud born from retail and
finds itself requiring the
improves the source of data,
built for retailers. We share
speed, scale, and performance
over half of retailers report
Amazon’s own tested, proven
to embrace this challenge.
that they still can’t share data
innovation to help retailers rein-
Years accumulating “best
between systems and 88% are
vent their legacy applications
of breed” solutions – solving
challenged in making actiona-
for new value, complete their
for individual channels with
ble decisions. Fragmentation
view of customers for relevant
disparate technology – have
and a lack of real-time insight –
insight, and transform their
left many retailers paralyzed
especially at the edge – are
engagement for increased
by the complexity and cost of
significant problems.
sales velocity. From recommen-
after the purchase, every expe-
However, an industry that
following customer migration
Finally, sales velocity is a top
All of this means that retail-
That’s why AWS offers the
dation engines, forecasting and
from store only, to online, to
metric for most retailers, but
contact centers, to advanced
connected experiences, and
journeys put conversion oppor-
computer vision and store trans-
now complete journeys. 72%
tunities and rates at higher risk,
formation, AWS offers retailers
of CxO’s report an inability to
as consumers expect relevant
the same expertise we use our-
migrate to new technologies.
personalization; right place/
selves – a head start 20 years in
Simply engaging in customer
right time inventory; and stores
the making for retailers to lead
journeys requires existing
offering both immersion and
their customer’s journey.
has also been the platform that enabled other areas such as Future Finance with their dashboard of group flash and has helped drive Aspire to deliver multibrand, multi-channel versions of Store, Product and Sales.” Mark Garstang is Senior Engineering Manager, Installation Services and it fell to his team to support the incredible demand placed upon the stores. “We were able to very quickly turn our teams into supporting and reacting to an ever-changing situation. We were able to open more Groceries Online operations quite quickly. We supported the increase in demand for Click & Collect. We moved some of the team’s capacity into staging more handsets to allow Click & Collect colleagues to support the customer. All Argos standalone stores were temporarily closed. The only Argos capability was online and so we needed to offer our customers the chance to pick up products from Argos stores in Sainsbury’s supermarkets. So, we opened just under 100 extra collection points. So, as customer habits changed, we diverted our capability as a team, and while some of the team were still doing the planning to get back to their normal day job, a lot of the team were actually supporting the change in customer habits. We were 30
COVID-19 REPORT
These images are pre-covid-19
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
having to do that under a remote way of working that completely changed how we interacted and operated together. And we want to make sure we never stop embracing the technology that helps us do our job. We really should take those learnings forward.” Sainsbury’s saw 100%, and in some cases 200%, growth, in online food, which has seen the grocer, more than ever before, put its mark on the online retail market. “The other thing I think’s been really clear is we’ve always been a big data company and a lot of the decision-making is driven by really great insight. We have a great data set. We’re talking about 27 million people shopping every week, with Nectar being the largest loyalty program. We launched Digital Nectar in October and it has more than five million active users of the app. So, when you add all that richness up, we really do have a great data set.” “As we move from responding to the crisis to the opportunities to rethink our business in light of the crisis, I am a believer that we can’t allow ourselves to go back to the way things were,” Jordan explains. “I think we’ve seen w w w.t h e i n t e r f a c e . n e t
31
From recovery to re-imagination In the last nine months, COVID-19 has forced many businesses to repivot their cloud strategy and become more agile and resilient. We have been supporting our retail customers understand new ways they can forecast drastic shifts in demand, manage mandated store closures, and continue to meet
evolving customer and business needs, or rapidly support millions of teams to connect remotely through use of our modern work solutions. We’ve worked alongside our customers, including Sainsbury’s to support their critical needs and keep their businesses moving forward.
We’ve helped them be able to continue serving our nation by rapidly scaling out remote working, keeping them connected, secure and informed, supporting both customers and colleagues. As we now start to recover and adapt to the ‘new normal’, our focus extends
We all need to take our part in supporting recovery from the socio-economic impact of COVID-19. I’d like to quickly touch on two key imperatives: How technology can support organisations and drive value, and how we can do this ethically and responsibly.
an accessible and inclusive way. Building on this we are also providing increased on-demand training and resources to aid re-skilling in digital skills, which is imperative given the increasingly key role technology will play in economic recovery.
In January 2020, Satya Nadella, our CEO, was invited to speak the keynote at the National Retail Federation conference in New York. He spoke of our ambition to help retailers create their own tech intensity and tech independence: “Retailers need to use digital to take what they’ve always done to the next level. Capability around tech intensity underlines all of this … you don’t want to fall behind, you don’t want to reinvent the wheel, taking pride in digital capability is key to success for the retail industry.”
It’s also a fantastic chance to address the sustainability of our and your offerings. We have achieved carbon neutral objectives for our datacentres in January and we made a further commitment, evolving our mission to be carbon negative by 2030.
None of us in January could have foreseen that we’d hit fast-forward on our tech intensity and workplace modernisation to the level we have in the last nine months. We’re committed to continue partnering with our customers to help them respond to the immediate impact to their organisations and recover with flexible business resiliency models.
to the future of work. It’s the perfect time to re-imagine how businesses will operate, and how we can innovate faster, using data and analytics to gain new insights and streamline operations, whilst also optimising secure remote collaboration and connected workforces.
A big part in this capability is ensuring everyone is included in this recovery. We are committed to ensuring our products and services are designed for everyone, including over one billion people with disabilities. Our commitment allows us to ensure that you can deliver solutions that work for all your people, and allows you to interact with customers in
We are putting AI in the hands of those working to directly address sustainability challenges, investing $50 million in our AI for Earth initiative. With sustainability featuring as a leading priority for many of our customers, we are proud to be able to help them expedite their ambitions in this space through partnering with us. Finally, as we emerge from recovery, let’s work together to build a future with resilient and innovative customercentric services. This is a fantastic opportunity to reimagine your organisation and develop a technical intensity that allows you to recover faster, and emerge stronger, together. Jennifer Morrison Retail Industry Director Microsoft UK
Learn More >
an acceleration of consumer trends, a 10-year trend acceleration in three months, and I think we should avoid the rubber ball bouncing back to the past. But we’ve been listening, watching and talking to colleagues really carefully about the need to do something different in terms of working practices.” With the UK heading into Brexit territory very soon, Jordan is glad that the pandemic at least allowed Sainsbury’s to take a good look into its supply chains. “To some degree we can use this period as prep to really understand our supply chains and their vulnerabilities. We were also able to increase the capacity of some aspects of our supply chain really quickly. Again, something that would have taken us probably months to do. We were bold and brave in increasing our digital capacity and the capability of the logistics network, particularly in our supply chain. So, that’s been great.
“ COVID-19 represented a massive challenge in keeping the stores running for our customers, the stock out on the shelves, supporting our colleagues etc” — M A R K L O W E , S O F T WA R E E N G I N E E R , S A I N S B U R Y ’ S T E C H - R E TA I L & L A B O U R M A N A G E M E N T 34
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
w w w.t h e i n t e r f a c e . n e t
35
HOW SAINSBURY’S USED BUSINESS INTELLIGENCE TO SURVIVE COVID During lockdown, we decided that ‘Feeding the Nation’ had to be our priority. As our primary intelligence platform, we relied heavily on MicroStrategy to help us understand how to redirect our resources to achieve specific operational outcomes.” Helen Hunter, Chief Data Officer, Sainsbury’s
I
n an industry built on marginal
Helen Hunter, Sainsbury’s Chief Data
be overwhelmed by dashboards and
gains, the ability to make
Officer describes the company’s
analytics. Sainsbury’s understands
better decisions, faster, is
vision, “Even in the recent past,
the power of aggregation, helping
what separates leading retailers
access to data was tightly controlled
to simplify the metrics they watch.”
from the competition. So when
by people with ‘IT’ in their
Sainsbury’s recently re-structured
titles—it was guarded and only
its operations into a single multi-
released after forensic scrutiny.
brand, multi-channel business, data
MicroStrategy is helping liberate
was at the core of its strategy.
our data to better understand our
During this transformation,
customers and our business.”
This simplification relies upon re-usable data objects from one trusted source. Barth elaborates, “The data used by the head of in store bakery is the same data used by the CEO. Organisations typically find it impossible to achieve consistency across departments.
Sainsbury’s Tech accepted the challenge of creating a single data
Even in the recent past, access to data
MicroStrategy enables this ‘single
management platform to make
was tightly controlled by people with
version of the truth’ for Sainsbury’s.”
access to information from across all
‘IT’ in their titles—it was guarded and
Sainsbury’s brands as frictionless as
only released after forensic scrutiny.
flowing water. “Sainsbury’s has been
MicroStrategy is helping liberate
incredibly bold in redefining its data
our data to better understand our
management landscape,” explains
the remedy for shelves emptying was
customers and our business.”
not buying more product; it required
Helen Hunter,
that distribution be adapted to match
Gary Strickland-Clark, Account Manager, MicroStrategy. “Every data store is being consolidated
Chief Data Officer, Sainsbury’s
COVID-19 intensified the need for effective decision making. For example, Sainsbury’s was quick to identify that
how and where people were buying. Hunter explains, “During lockdown,
to create an extraordinary enterprise data asset. It’s simple
“Democratising data means
we decided that ‘Feeding the Nation’
in concept, but at this scale the
everybody gets access to the
had to be our priority. As our primary
change is very challenging. Most
information they need,” adds
intelligence platform, we relied heavily
organisations lack the vision or
Nick Barth, Senior Sales Engineer.
on MicroStrategy to help us understand
the stamina to see it through.”
“Sainsbury’s uses MicroStrategy
how to redirect our resources to
to manage and automate
achieve specific operational outcomes.”
Historically Sainsbury’s used numerous software tools for data analysis, visualisation, and reporting. The new solution, however, required consolidating tools into a unified platform. “MicroStrategy was just one of a
complex reporting so thousands of Sainsbury’s colleagues are
CLARITY OF VISION
seeing exactly the information
MicroStrategy views Sainsbury’s with a
that’s relevant to them, where,
single strategic objective. “Whenever
when, and how they need it.”
we reach a decision, the question we ask is ‘what will make Sainsbury’s
ACTIONABLE INSIGHTS TO ‘FEED
successful?’” says Strickland-
THE NATION’ DURING COVID
Clark. “We won’t compromise
“Sainsbury’s hadn’t appreciated
Sainsbury’s uses MicroStrategy
on trust; it’s too important.”
that MicroStrategy was designed to
to make informed decisions
be the single platform they were
about what customers want.
looking for, but with a new analytics
Barth explains, “Without a clear
team, they reviewed their options
intelligence strategy, it’s easy to
number of technologies being used,” explains Strickland-Clark,
and realised they could move MicroStrategy to the Cloud and do everything on the one platform.”
To learn more about how MicroStrategy can empower your business, visit microstrategy.com
w w w.th e in te r fa ce . n e t
37
It really helped us with the peak volume
They’re productive. They don’t have to
period, when we were trying to fill the
commute. It frees them up from a loca-
stores and people were buying things
tion perspective, and we work really well
faster than we could ship them.”
this way. So, I think there’s a real opportunity for us to capitalise and to galva-
LONG-LASTING CHANGE
nise this as a catalyst for a change in
Working from home, which has affected
working practices forever. Everybody
millions across the globe, could be here to
coming through the same communication
stay for Sainsbury’s Tech. Jordan acknowl-
medium has democratised the business,
edges that for some, working in an office
so a hierarchy becomes less important. I
is more suitable and office environments
think the fact that people are talking from
will need to be open. “However, for the
their own homes makes you, as a leader,
vast majority, 80-90%, I think we found
look and feel more accessible. And I
that people like this [working from home].
think the online meeting is a platform of
38
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
complex, big, multi-location environment, we’d end up with probably 30 cascade huddles, starting at the top, going into divisional directors, going into our senior management, going into certain teams. Since we started this, I run it on a Monday, and I talk to every one of the 1,700 people in Technology. We get a huge benefit of having one voice, one description of how the business is doing. So, I think that’s been transformational. It’s enabled by remote working. But I think when you work hard on engagement on top of remote working, it’s transformational and we collaborations where people feel more
won’t go back. It really cuts through
inclined to comment, to sit and talk, to ask
decision-making.”
questions.” Microsoft Teams provided a constant
Gillian Green, Colleague Experience Manager was charged with helping the
and reliable network through which
team adapt to remote working by provid-
every department within the organisa-
ing support to those who need it while
tion could communicate. Adoption of
onboarding new recruits. “My particu-
Teams within Sainsbury’s became 100%
lar focus is very much around diversity
across operations, as a virtual network
and inclusion and embedding that into
almost completely replaced face-to-face
our culture. So, before we launched
contact. “We would have been a busi-
Sainsbury Tech, a lot of work was done
ness that worked really hard to huddle
to create an employee value proposition
and cascade on a Monday to make sure
and my role is to continue the journey
people understood how we’re perform-
so the employee value proposition and
ing,” Jordan explains. “But because it’s a
the culture we’re talking about is really w w w.t h e i n t e r f a c e . n e t
39
embedded in the day-to-day experience for colleagues. I’ve been working to help drive inclusion within Sainsbury’s Tech through a lot of different initiatives to raise awareness and build empathy between colleagues through education.” “And then lockdown happened, and we wondered how we would get the value we’re looking for and still drive those connections and keep that passion alive.’ We had to rethink how we were going to create that in the virtual format without getting screen fatigue either because it’s a three-and-a-half-hour induction (for new starters). You obviously can’t do that for three-and-a-half hours straight. But I was delighted with the way we all came together and problem solved, looking at the different options and the ways we could break up the content. “We have a fantastic session at the beginning for the new starters where they have a completely open Q&A with STLT (Sainsbury’s Tech Leadership Team), which is Phil Jordan and his team. That’s a really valuable session for our new recruits who always come out of that buzzing and excited having listened to our leaders. We have really made Microsoft Teams and some interactive whiteboard facilities work for us in running introduction activities to start 40
COVID-19 REPORT
This image is pre-covid-19
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
GILLIAN GREEN – COLLEAGUE EXPERIENCE MANAGER
w w w.t h e i n t e r f a c e . n e t
41
The changing world of grocery fulfilment O2’s Rob Sandford talks insights, Retail Economics and fulfilment
In partnership with Retail Economics
Rob Sandford O2 Head of Business Sales
On 22 July, I was proud to present the findings from The Big Ask report, produced over the last year by O2 Business and Retail Economics. The aim of this report was two-fold: to take an honest look at how digitalisation is changing customer behaviours, and to provide insight on how retailers are using technology to attract, engage and sell to today’s more connected customer. You can read the complete report here.
The transformation of retail fulfilment One interesting finding was the overall preference (53%)* for physical fulfilment channels, like the high street (13.6%) and shopping centres (13%), over digital ones. This was underlined recently during lockdown. While demand for online delivery initially rocketed (Sainsbury’s nearly doubled their number of delivery slots, for example), there then followed a gradual increase in physical footfall, with each household averaging 14 trips to a retail store per month. O2 works with retailers across the UK to discover and analyse the way people move between physical locations. So, I’ve seen just how reductive ideas like the ‘death of the high street’ can be. In reality, people love the convenience of local shopping, and they still want to visit stores to experience products and connect with brands. It’s also clear that digital technology can still be a barrier to online shopping, even after widespread adoption and development of sophisticated logistics. All consumer groups said they’d shop online more if there were cheaper and faster delivery options, for example. One emerging answer to this lies in partnerships. A great example being how you can buy something on eBay, get it delivered to your local Argos, and then pick it up during your weekly shop. In addition to consumer convenience, this brings added security to online fulfilment as items are held in store for collection. I’m also excited about the new fulfilment options gathering momentum in retail, which could be the next step for grocers too. From robotic autonomous
deliveries to in-home delivery, these are opportunities for brands to provide exceptional consumer experiences through advanced connectivity and innovation.
More to uncover I’ve already been hearing from some of those who attended the event about what they found most interesting. But I’m curious to speak to more retailers and see whether there are any questions you’ve got about the findings, or how you can put them to practical use. I’d welcome any questions or comments you may have. You can reach me on LinkedIn or on robert.sandford@businesso2.co.uk. I look forward to hearing from you.
w w w.th e in te r fa ce . n e t * Source: www.connect.o2.co.uk/the-big-ask-download-report
43
44
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
“ I think we’ve seen an acceleration of consumer trends, a 10-year trend acceleration in three months, and I think we should avoid the rubber ball bouncing back to the past” — P H I L J O R DA N , G R O U P C I O
building those connections. “COVID-19 is very much on every business’s mind at the moment, and foremost in our minds is how we can support our colleagues from a flexible working perspective so that people can achieve a good work-life balance and really benefit from the ability to do a yoga session on a lunch break or go for a walking meeting and learn from the situation we’ve had this year. But honestly, I think we’ve been quite instrumental in keeping the communities together and keeping us focused and driving forward.” “There is such a collegiate feel to the organisation, the division, the team. It is absolutely fantastic,” enthuses Sarah Hirtenjohann, Senior Supplier Relationship Manager. “On a personal w w w.t h e i n t e r f a c e . n e t
45
This image is pre-covid-19 level, I could pick up the phone and
values-driven, to have a really clear
speak to any of the team if I felt I
emotive engagement vision like Feed
needed some support, and that is up,
the Nation,” says Jordan. “It’s been
across, or down, it does not matter. We
unbelievable for our business. We’ve
have a great team. We are very lucky.”
done things in days that would’ve
Jordan and his team clearly exude
taken months. We’ve expanded grocer-
a sense of pride in how their busi-
ies online. We temporarily closed and
ness was able to reach out to those
reopened stores. We changed the busi-
most in need during such dark times. “I
ness model of Argos, which operated
think there’s something really power-
as an online-only business for three
ful for our business, which is very
months. We spun the whole groceries
46
COVID-19 REPORT
S A I N S B U RY ’ S T EC H - H OTWH EW C E OV F EIDD-19 T H E RNEAT P OI O RTN
online business on its head by offer-
brand, the business has prospered and
ing it to certain customers and not
I think the business has really grown in
others, and then Recurring Slots. And
stature. Not financially, but prospered
not only did we help feed the nation,
as a brand and as a business in the
but we also helped the nation adapt
community. I think we’ll always remem-
to the pandemic. This has been a terri-
ber 2020, wherever any of us go in
ble time for many, many, many families
the future. If you’re a technologist, and
and we’ve lost colleagues and custom-
particularly a Sainsbury’s Tech technolo-
ers. So, against that awful backdrop,
gist, I think you should always be really
we must remember that our colleagues
proud of the role we played.”
have worked incredibly hard. But as a w w w.t h e i n t e r f a c e . n e t
47
> How a modern commerce architecture can boost front-end developer job satisfaction < WRI T T EN BY
Br ad S oo, Pr o d u c t M a n a g e r, c o m m e r c e t o o ls H OW CA N YO U M A K E S U R E YO U R TA L E N T E D F R O N T- E N D D E V E LO PE R S F E E L S U P P O RT E D, A N D H AV E T H E I R S PEC I A L I ST N E E D S M E T ?
48
49
W
ith front-end developer skills in high demand, rising to the challenge of retaining the
best talent may already be a difficult task for organisations. Yet these highly skilled professionals are often faced with software and platforms that add a layer of unnecessary complexity, making them less efficient at their work. Without the proper systems in place, brands may risk losing front-end developer talent to companies with better systems to support their specialist needs. The current technology landscape is drastically expanding the possibilities of online commerce beyond a 'web shop'. While the new variety of devices, from voice assistants to smart home appliances, adds more range to front-end developersâ&#x20AC;&#x2122; skill-sets, it should act as
Development at the front-end requires
a motivator for more rewarding work.
creativity alongside a variety of high-level
Instead, pressure to work faster as well
technical skills, including working knowl-
as continuing to complete mind-numb-
edge of HTML, CSS, plus JavaScript
ing, low-level tasks can be detrimental to
code libraries such as jQuery or React.
job satisfaction.
Developers are often tasked with making
Along with the changing commerce
changes to a front-end that's heavily tied
landscape, modern commerce architec-
to - and impossible to update without
tures, too, are emerging to meet market
also touching - the back-end, all while
needs and offer the potential to trans-
making sure the site doesn't go down
form the role of the front-end developer
during the process.
for the better. Eliminating time spent on tedious tasks 50
Spinning all these plates can be very challenging during the busy periods that
accompany trend-seizing promotions or
seasons in retail have been troublesome
seasonal sales. Not enough to sustain
for front-end developers previously, a
high traffic loads and not designed for
headless, API-based architecture will
scalability, these legacy platforms often
free up time for front-end developers to
have front-end developers scrambling
spend on more valuable tasks like re-im-
to fix bugs in the middle of the night just
agining the user experience, rather than
to maintain a functional interactive shop-
responding to code-breakages at all
ping experience.
hours of night and day.
With headless commerce, the backend is decoupled from the front. This
ACHIEVE FASTER TIME-TO-MARKET
means that even during periods of heavy
Running time-consuming end-to-end
website traffic at the front-end, the back-
testing has been a significant part of
end will not be affected. Where peak
the front-end developer job description w w w.t h e i n t e r f a c e . n e t
51
‘ M O D E R N C O M M E R C E W I L L H E L P F R O N T-E N D D E V E LO PE R S A N SW E R C U STO M E R D E M A N D FO R A S E A M L ES S A N D EXC I T I N G B U Y I N G EX PE R I E N C E ’
52
for years. Yet, performing extensive audits and bug fixes to align front-and back-ends can delay deployments significantly. When they are free to experiment easily and safely, front-end developers can see the fruits of their labour in much faster timescales. This is particularly important as new channels emerge and different ways to reach customers need to be addressed. Deploying creative new user interfaces to enhance the customer experience can be made much easier and become far less overwhelming a task using modern commerce infrastructure. Firstly, with a marketplace of third-party extensions and integrations which can be selected and simply plugged in. Secondly, with decoupled back-ends and frontends. As software developers carry out changes to the website, adding apps, store fronts, channels or even capabilities for voice assistants, virtual reality experiences or connected cars in the foreground, the background will remain blissfully unaffected. With no need to test for flaws created at the back-end, brands can efficiently launch new interfaces at speed to respond to emerging trends. Overall, armed with the ability to experiment, alterations require less negotiation from developers, allowing them to be brought online with relative speed and ease.
SHAPING THE CUSTOMER SUCCESS Communications between marketing and sales has been a troublesome disconnect for many digital companies in the age of online commerce. As the arbitrator between the customer and the brand, website w w w.t h e i n t e r f a c e . n e t
53
interfaces must fulfil criteria to suit both of these departments and the front-end developer must work within the limits of the available technology. Legacy systems and 'commerce-ina-box' solutions have limited front-end developers to fewer options in the past. Whereas now, open APIs and headless commerce systems are available which can be plugged in to any front-end and cultivate greater creativity to make more possible. Front-end developers should be able to work closely with sales and marketing teams to ensure websites are delivering a seamless customer experience that is on-brand and using technology that allows them to achieve their intended outcomes. This is where modern commerce systems have responded. Improving response times considerably
GREATER EASE OF APPLICATION MAINTENANCE
between departments, modern commerce
Those brands that still rely on legacy
systems speed up deployments, tweaks
systems may struggle to capitalise on
and iterations between approvals. With
front-end developer skills and creativity.
faster turn-arounds and the ability to
Ultimately, a system that is less prone to
experiment without technical repercus-
bugs when making changes harnesses
sions, front-end developers can ensure
the power to transform the role of the
that their valuable skills are being used
front-end developer from a website
most effectively to shape the customer
code caretaker into the valuable, skilled
experience to precise requirements.
user-experience artisans they are trained to be. It is crucial that front-end developers
54
react quickly to market trends, using their
without worrying about maintaining basic
skills to connect customers with brands
functionality of the back-end.
in the most effective ways. While adapt-
Brands get the most out of front-
ing interfaces to deal with temporary
end developers who are able to build
events such as flash sales or promotions,
new prototypes and deliver innovation
front-end developers can deliver direct
through new features such as microser-
benefits to the way a website looks and
vices. With a modern headless architec-
feels to the consumer. Where previously,
ture changes are agile, scalable and fast
websites would have to be shut down
so front-end developers can get more
for whole days to accommodate altera-
rewarding work done.
tions, website developers can now focus
So, with modern commerce infra-
applying their expertise to usability at
structure, brands have a better abil-
the front-end to gain a competitive edge
ity to understand and therefore more w w w.t h e i n t e r f a c e . n e t
55
56
effectively utilise front-end developer time and skills. No longer required to spend long hours on low value tasks, front-end developers can use their time to create engaging experiences. Modern commerce will help front-end developers answer customer demand for a seamless and exciting buying experience, delivery of total convenience and new features users donâ&#x20AC;&#x2122;t yet know that they want. As front-end experience design becomes an art, rather than a technical challenge, front-end developers will be tasked with recruiting a new set of customers, gaining a new competitive advantage and engaging loyal fans everywhere. With the freedom and flexibility to work fluidly, front-end-developers achieve greater satisfaction from their work and create real value and agility for brands.
w w w.t h e i n t e r f a c e . n e t
57
STAYING SMALL WHILE GROWING BIG Patrick Kammermann, CIO at EF Education First, dives into the company's values and why they have driven every single decision in its digital journey towards ever greater personalisation for customers
WRI T T EN BY PRODUCED BY
58
N el l Wal ker Al ex P ag e
59
P
icture yourself traveling to a
First, a business which lives and breathes
beautiful place that youâ&#x20AC;&#x2122;ve
creating life-changing opportunities for its
always wanted to visit, prepar-
customers. EF is an organisation with its
ing to meet new people, make new
foundations in uniqueness and a desire
friends who are undertaking the same
to provide people, across the world, with
journey, and learn a language that will
the best possible learning opportunities
unlock whole new worlds for you. It
to broaden their horizons in immeasur-
sounds like a dream come true, yet so
able ways. Its business of international
many of us put all of these things off, no
language schools is one of its primary
matter how much we long to do them;
services, and what EF is commonly known
why? Because it sounds like too many
for; its mission is to â&#x20AC;&#x2DC;open the world
moving parts, too much to organise, too
through educationâ&#x20AC;&#x2122;, create a cultural expe-
difficult to plan out?
rience for customers and facilitate the
This is not the case with EF Education 60
E F E D U C AT I O N F I R S T
building of relationships in an increasingly
and all ages use EF’s services, from
connected world.
two-week courses to, potentially an entire
Through this, lives are changed. One
year. At the end of this time, they have
Spanish customer was a very nervous
earned new skills, new friendships, and
traveler, but described her experience
a far greater level of confidence in their
with EF in Rome as ‘unforgettable’, and
ability to travel to other countries and
that EF gave her ‘the opportunity to be
communicate with international peers.
happy’. Powerful words for a powerful
EF offers a comprehensive service for
service. EF’s international language school
anyone and everyone. It owns and oper-
business has language campuses in 54
ates all of its own schools, even offering
destinations across the world, covering 12
accommodation, and everything can be
languages, and over 150 study programs
personalised – all transport, the afore-
suited to any language proficiency level.
mentioned accommodation, and the
Students from over 100 nationalities
educational courses themselves. This is w w w.t h e i n t e r f a c e . n e t
61
Harnessing the power of cloud to accelerate digital transformation Our end-to-end services combine business and innovation strategy, experience design, technology consulting and best-in-class software engineering to deliver results on a global scale
WWW.EPAM.COM
EPAM, a leading global provider of digital platform engineering and software development services with 36,000+ employees in over 30 countries, is on a mission to engineer the future. With nearly 30 years of software engineering heritage supported by continually expanding strategic capabilities, the company converts breakthrough ideas into real outcomes for its global customers.
EPAM understands that technology alone
Attitudes towards changing an existing software
cannot enable a company to digitally transform, which is why they are committed to helping its
solution are shifting, as Pascal Roth, EPAM’s Director of Business Development, explains “Companies want
customers think holistically about people, processes,
to differentiate; core systems are not particularly
platforms and data – key components to successful transformation programs. With hundreds of Fortune
good at interacting with new ecosystems; and software engineering has matured, meaning you can deliver
Global 2000 customers and a team of practical
value at a much faster pace. As a technology-agnostic
visionaries with experience in human-centric design thinking, innovation strategy consulting,
partner with expert engineering, design and consulting skills, these three elements play to EPAM’s strengths.”
and education and learning platforms, EPAM’s end-to-end service offerings are ideal for businesses needing to evolve as adaptive, digital organizations
The passion with which EPAM tackles the challenges
to disrupt the market.
it faces is clear, and its relationship with EF is made even more unique by the fact that their work together coincided with a global pandemic. EPAM’s Remote by
It is this proven and varied wealth of experience that caught the eye of EF Education First, an organization in need of an experienced team to
Design ™ approach has enabled the project to quickly adapt to remote working models and continue seamlessly, strengthening its position as a
help shape its technology vision. “EF wanted an expert opinion; a fresh pair of eyes,” says Laszlo Szacsuri, Solution Architect at EPAM. “The company
networked, distributed organization that doesn’t stop for a customer in need.
was looking to harness the power of cloud to provide more flexibility, release more valuable features and reduce time to market. EF had already embarked on a three-year plan, which included moving the majority of their code to the cloud, but they had a complex tech stack with over 10 years of custom development. From the beginning, we realized this could be a really amazing partnership.”
“We’re deeply proud of our work with EF,” says Laszlo. “As markets try to figure out the new normal, we didn’t let the current environment stop us from effectively helping our client grow. EF trusted us to be there for them during this unprecedented time, which is really rewarding and key to establishing a successful partnership.”
Laszlo and his team performed an initial tech stack review, which resulted in a proposed target architecture to overcome the legacy technology challenges. The team implemented a technical plan and a set of MVP applications iteratively over the course of eight months, proving their trust and reliability along the way whilst helping EF raise their own engineering standards. The automation involved has unlocked time for the business to focus on value-adding activities, as well as reducing overall time to market for new features. “The work we’ve done together has cemented EPAM as a partner that goes beyond the normal vendor-customer relationship to add real value,” says Laszlo.
Want to talk to us about your business needs? Get in touch with us. We’d love to hear from you.
CLICK TO LEARN MORE
w w w.th e in te r fa ce . n e t
63
something which sets EF firmly apart from
with offices in 50 countries, but we’ve
its competitors.
broken it down into smaller units where
In fact, the customisation is such that
anybody can make a difference and be an
progress is guaranteed, thanks to EF
entrepreneur,” continues Kammermann.
having its own academic language learn-
“Each individual leaves footprints; every-
ing system which ensures an approach to
body makes a difference. It even says
teaching and development that’s suited
in our handbook, ‘we want to stay small
specifically to its students. Its core values
while growing big’.”
are centred around success – they are focused on passion, innovation, atten-
The technology story
tion-to-detail, an entrepreneurial spirit and
This focus on the importance of every
the view that nothing is impossible.
individual, of passion, of entrepreneur-
“Our values are incredibly important,”
ship, it bleeds from every pore of EF as
explains Patrick Kammermann, CIO at
an organisation and out to the customer.
EF. “When I joined EF in February 2019, I
Its recent drive towards improved tech-
was amazed at the way you could actu-
nology has been much based around
ally feel the values around you, just walking through the hallways. We recruit and manage according to our values; we go as far as saying, ‘okay, this is a real EF person’. This is our secret weapon, and why we’re the best organisation in our space. Technology is important, but the reason we’re successful is the strong culture of values.” It’s true that this outlook isn’t necessarily common for a business of EF’s size; it’s such a large organisation, but in terms of mindset and passion, it’s almost a collection of start-ups all working towards the same goal. “We are a global organisation
64
E F E D U C AT I O N F I R S T
Patrick Kammermann CIO at EF Education First Patrick Kammermann is CIO at EF Education First, the world’s largest privately-held international education company. His ambition is to make technology truly matter for EF’s business of international language schools, driving digital personalization along the value chain. He believes – as does EF’s founder Bertil Hult – that there are no problems that could not be solved with the right team. Prior to this role, Patrick built and led technology organizations of various sizes, mainly in the financial services industry. Patrick is passionate about anything digital and strongly believes in results through people.
increased personalisation and creating an ever-morebespoke service to our customers, while streamlining the back-office environment. From marketing, to sales, to creation of its academic courses and in-school activities, technology is always working away in the background. “We are not a technology company – we are a travel and education company,” Kammermann explains. “We don’t necessarily want to be absolutely leading edge in terms of technology for the sake of it, but we do have the ambition to lead the industry in terms of our digital offering. This is a continuous evolution for us, and technology plays an important role. A couple of years ago, there was a fear at EF that we might fall behind in technology use, which is when we increased our investments in building on that side of the business and bringing in additional partners who are experts in their area.” A major element of this shift has been building a global but cohesive technology team, with a three-year roadmap – one that aligns much more closely with the company’s core values than any previous technological ventures did. “Before Patrick Kammermann joined, EF was more
w w w.t h e i n t e r f a c e . n e t
65
66
E F E D U C AT I O N F I R S T
of a technical organisation,” explains
organisation, with agile processes. What
Livio Francescucci, Head of Engineering.
we look for in our tech team members
“There were lots of separate groups work-
is passion; of course, the technical skills
ing on separate projects, which mostly
need to be there, but passion is always
worked well, but it meant there was never
critical too, and integral to what we call
a sense of collaboration, of a common
‘the EF culture’.”
strategy. The company grew, and the
This team, focused on technology,
complexity of the system grew, and the
is only going to grow as EF’s needs
previous model started failing because
continue to evolve – especially since the
we needed interaction and integration
business has a pretty ambitious vision of
between systems.”
what it wants the customer experience to
Francescucci joined the company as
look like in future. “Eventually our custom-
a software architect, and saw fairly early
ers should be able to pick up their phone
on what needed to change. “We started
and start composing the trip of a lifetime,
streamlining our strategy and putting
and finalise it all with one tap of a button.
the right methodologies in place for
This requires a lot of additional tools to
those teams, creating a more organic
be built around the classic experience,
“We recruit and manage according to our values” Patrick Kammermann, CIO
w w w.t h e i n t e r f a c e . n e t
67
and this mission can be reinforced using technology.
A personalisation transformation While EF has undertaken a shift in the way it uses technology, they prefer to think of it as a personalisation transformation which is fueled and led by technology. Technology allows continued evolution of a service, and the organisation is always striving to improve the customer experience. Ultimately, EF’s latest IT venture is all for the purpose of improving everything about the service, from the very first customer touch point to the very last – and beyond. This required EF to be highly flexible – which, fortunately, is something ingrained in its culture; it has to be that way, because the needs of the users are ever-shifting, and the very nature of technology is chameleonic. Never before has that flexibility been challenged in such an extreme way as this year. With COVID-19 sweeping the globe and shutting down educational facilities as early as February, EF had to shift quickly. Fortunately, it’s always been a flexible business. “That’s one of our strengths,” says Kammermann. “When COVID hit us, we had to shut down face-to-face teaching and, literally over one weekend, we moved all our students online and created 68
E F E D U C AT I O N F I R S T
THE BUSINESS GOAL MARKETING Targeting potential customers on a highly individualized basis by working closely with Google and Facebook, amongst others. SALES Allowing customers to get in touch with EF through their channel of choice whenever and however they like, building an immersive experience SCHOOLS Students getting personalised adviceon what to focus on to maximise the learning experience. THE TECHNOLOGY GOAL Being cloud-exclusive, using standard platforms, i.e. software-as-a-service, and making integration the masterpiece. Working with carefully-selected expert partners. Building a superb team and highly skilled engineering organisation.
w w w.t h e i n t e r f a c e . n e t
69
70
E F E D U C AT I O N F I R S T
an online offering – called e-campuses –
to be the most important element of it, no
that very much mirrored the way we oper-
matter the journey, while what happens
ate in a physical setting. All schedules
behind-the-scenes needed to be much
were changed accordingly, the teachers
more streamlined; the heavy lifting would
worked remotely – the show must go on.”
be handed over to the cloud, mostly
Longer-term, COVID has meant that
Amazon Web Services, with no EF-owned
EF now has the basis of a strong model
infrastructure involved, and full connec-
in place for those who want to start their
tivity was needed to ensure staff and
studies online, creating even more flex-
customers could work from anywhere,
ibility for customers and catering to the
on any device, any time. EF calls this a
needs of each person as an individual
cloud-exclusive strategy.
– as per EF’s ultimate goal. EF’s technology journey reflects this desire to be as
Putting it into practice
quick-to-react and bespoke as possible,
EF knew what it wanted – the next step
and its vision from the very start had to be
was to get its ducks in a row. Its approach
not process-orientated, but impact-orien-
is to buy standard solutions and custom-
tated. This means that the outcome had
ise them as required, while developing
w w w.t h e i n t e r f a c e . n e t
71
72
E F E D U C AT I O N F I R S T
its own software as little as possible. Fortunately, the software market is full of state-of-the-art tools, which for example allowed EF to replace its core sales system with an exciting new CRM solution, which was developed quickly and rolled out across the world in 2019. “We had our own home-grown system which was built in-house and had been used for over 10 years,” explains Anuj Kapoor, Senior Project Director. “We had a complete team sitting in Bangalore, with some of them in Zurich, and we did everything on our own. The problem came when we felt our technology was becoming stagnant, and we realised what we had couldn’t be sustained for another 10 years. So, we did a lot of research and decided a standard CRM solution would be the best fit for us; we chose one of the bigger players in this space, and there are so many different partners which work alongside them, making it super easy for us to buy whatever add-on apps suit us in a plugand-play way. Everyone really embraced it, and it became particularly useful once COVID-19 hit and we had to find new ways to connect with the customer.” One add-on app EF implemented was created by Ortoo, and it was a great example of finding the right solution on w w w.t h e i n t e r f a c e . n e t
73
It always seems impossible until it’s done. — Nelson Mandela
ACHIEVE MORE WITH SALESFORCE ASSIGNMENT SOLUTIONS Our workforce automation apps are 100% native to Salesforce, enabling Sales and Service teams to achieve more – with better results. Our flagship app, Q-assign, is a dynamic assignment engine which assigns leads, cases, tickets or other assignments to the best qualified Salesforce agent at that moment. It can match on skills, experience, location, timezone, language and other configurable attributes, ensuring fair distribution, maximum throughput and optimized productivity and performance.
www.ortooapps.com
LEARN MORE
“ Our relationship with Ortoo refines the speed of what we do. The best thing about Ortoo is that the app is multidimensional – you can always add more complexity when you need to.” — Anuj Kapoor, Senior Project Director, Education First
the marketplace and getting it custom-
of distributing equal types of customers
ised to its own needs. The Q-assign app
amongst the team. Ortoo’s system is very
was implemented to fairly distribute leads
fair, making sure everyone gets equal
among salespeople, which was previously
opportunities, and that every customer
challenging thanks to EF operating in 50
gets equal attention as quickly as possi-
countries.
ble. Our relationship with Ortoo refines
“Each country can have multiple sales
the speed of what we do, and since we
offices,” Kapoor explains, “and every sales
implemented Q-assign, we’ve had no
office sells multiple products. Plus, every
complaints from salespeople; before, they
product has its own team, so there’s a
would complain about the lack of equality.
lot of complexity in identifying, based
The best thing about Ortoo is that the app
on where the customer is coming from,
is multidimensional – you can always add
who should be the person to take the
more complexity when you need to.”
call. Then, there’s the issue of not every customer being of the same quality as
Partnerships
the one before it, so we had to find a way
The world is shifting, and having all of w w w.t h e i n t e r f a c e . n e t
75
your expertise in-house is no longer an indicator of that expertise. Now, it’s
and passion for ‘their’ system. With EPAM, the tasks varied, support-
normal – and expected – for organi-
ing existing systems and building new
sations to partner up with technology
components, such as a functionality allow-
vendors to bring skills and wisdom to
ing automatic scheduling of students into
other businesses, and this became the
classes in a very sophisticated way based
sensible choice for EF after years of
on a genetic algorithm. The company
having all of its engineers in-house to
has proven extremely reliable, efficient,
maintain strong internal domain knowl-
and experienced in dealing with complex
edge and ensure everything was aligned
problems. “EPAM has a very broad set of
with the company’s cultural values.
skills and were able to provide an expert
EF had to look for partners that would
or a resource for every problem, and they
mesh with their own teams, understand
easily became part of the EF ecosystem,”
their needs and offer services which would integrate well with the infrastructure and processes EF already had. This led to the start of two new key relationships, with Britenet and EPAM. Britenet was instrumental in building and customising EF’s new CRM-based sales solution, with a collaborative spirit and high levels of expertise to support it. “They are a fantastic partner,” Kammermann explains. “They provide us the experts to customise and implement the CRM platform, where we struggled, internally, to have the right skills and capabilities. They provided us with a small, but qualified, team that was extremely dedicated – and still is.” More importantly, the business fits in with and supports EF’s core values, and it shows commitment 76
E F E D U C AT I O N F I R S T
Kammermann continues. “They took over
technology partners have proven vital to
responsibility from us in a very structured
EF’s journey, its true success starts from
and quite sophisticated way, helping and
within. The in-house team is its greatest
pushing us where we had weaknesses.
asset, and its engineering background
EPAM was instrumental in bringing in
ensures that the organisation leads its
structures and understanding our issues.”
market in terms of both building and employing the correct technology solu-
The team ”I have almost never seen a problem
tions. The relationships with partners are very much based in EF already having a
that couldn’t be solved with the right
deep knowledge of what it has and what
person” - these are the words of EF’s
it wants, meaning it maintains self-reliance
founder, Bertil Hult, and they continue to
no matter what.
resonate throughout the business. While
As previously mentioned, a major
w w w.t h e i n t e r f a c e . n e t
77
element of this is choosing the right
the tech space, making mistakes is okay.
people for the team, with the ‘EF atti-
It’s part of an entrepreneurial culture.
tude’ – namely, passion and a sense of
“Ultimately, we want to foster a fun
professional autonomy and responsi-
environment for our team. Connect with
bility. “There’s no such thing as ‘it’s not
peers and customers, have music going
my job’, here,” says Kammermann. “I feel
in the tech office, eat chocolate with your
quite strongly about this; we all have our
colleagues – we need to find a bit of
primary responsibilities, of course, but if
balance. Fun is an important component.”
there’s something that needs to be done, I don’t want to hear the excuse of ‘it’s not
What’s next?
my job’. We all do what needs to be done,
In spite of all the challenges 2020 has
and that lies in our mindset. We expect
brought, EF has no plans to slow down –
people to take responsibility for what
in fact, it has some very ambitious plans
they do, and in return, we make sure they
in place. As Kammermann says, nothing is
know that it’s okay to make mistakes. I
impossible, and the way EF has success-
can’t repeat that often enough – even in
fully dealt with the current pandemic is
78
E F E D U C AT I O N F I R S T
“Each individual leaves footprints; everybody makes a difference” Patrick Kammermann, CIO
proof of that. “The personalisation continues, and we will be strengthening the team and our partnerships to make sure that happens,” he explains. “We’ll continue to invest very much in digital marketing and digital advertising platforms, both SEO and PPC, in our analytics platforms, and building out our virtual sales offices, making sure customers can interact with us through any channel at their convenience. We want to be there for our customers no matter what; if you want to use your phone, you can do that; if you want a video conversation, that’s fine too; you can use WhatsApp, or WeChat, or talk to our chatbot – building those channels is an important element of what we have planned. “Plus, from the academic perspective, we will be investing heavily in offering the best possible learning experience in our schools – both physical and online classes – and we’re working on an app that provides students with highly personalised advice, based on their progress and past behaviours. Perfecting personalisation is our ultimate goal from marketing to sales, through to every element of our customers’ education journeys.”
w w w.t h e i n t e r f a c e . n e t
79
The execution is the planning WRI T T EN BY
N el l Wal ker
Digital strategist Dr. Paul J. Bailo, returns for part two of his leadership series to discuss digital transformation planning
80
easy g is hard
81
WHERE DO YOU START WHEN IT COMES TO KICKING OFF A SUCCESSFUL DIGITAL TRANSFORMATION? The critical piece to any digital transformation is the planning phase, and it is truly the hardest. I think the execution is easy – the planning is harder. The first thing organisations need to do is perform an evaluation and diagnose really what change is needed, because when we start talking about digital transformation, we’re talking about the core reason an organisation exists and how it functions. So we start thinking about transformation and digital: it’s the data, it’s the model, it’s the rethinking of how we get from point A to point B in the fastest, most efficient way. But we have to understand why this change is necessary; what is the goal here? What’s driving this? What’s that performance gap and what’s that opportunity gap? Then, in terms of the design, is it coming from the top-down or the bottom-up? Both work very well. Sometimes, in my experience, I’ve seen bottom-up actually stand the test of time, because if you start this digital transformation from the top down, it’s almost forced onto people. The third piece of this puzzle is delivery; how are we 82
THE EXECUTION IS EASY – THE PLANNING IS HARD
w w w.t h e i n t e r f a c e . n e t
83
going to make this change? What are the
the right people developing the vision
actions that need to be taken? What skills
and strategy for change because they
will I need? And will this be effective?
may have been in that organisation way
The delivery is the easy part.
too long. In my personal experience, people who’ve been in an organisation
WITH REGARDS TO PLANNING, BEING ABLE TO PUT PEOPLE IN THE RIGHT POSITIONS AND SEE THEIR QUALITIES AND STRENGTHS MUST BE A VITAL PART OF IT.
a very long time, their minds have been wired a certain way. For a digital leader, trying to plan this out, you can’t have that legacy thinking; the thinking has to be transformative.
Absolutely, and part of the initial evaluation is, do you have the right people? Someone could be really successful, historically, in an organisation, but in my own personal executive experience, it’s really hard to get the right people who have the digital mindset who’ve led these initiatives on an enterprise level, and who’ve been able to be successful in transforming large institutions into a living, breathing digital organism. And, on the topic of people, do they have the right skills? Do they have the right behaviour? Do we, as a team, have the right thinking? Do you have the right leadership in order to pull this forward? A lot of the time, the people that you may have in an organisation as a leader aren’t necessarily the right players; these are not the right people to get you to where you need to be. They may not be 84
THE EXECUTION IS EASY – THE PLANNING IS HARD
TRANSFORMATIVE THINKERS ARE ALSO VITAL TO CREATING A CLIMATE OF CHANGE.
it also helps in order to communicate the change vision and get people comfortable and happy with that.
Exactly – everything’s-people based. Digital transformation is all about the urgency, helping drive the fact that this
IN TERMS OF PLANNING, IS IT POSSIBLE TO OVER-PLAN A TRANSFORMATION?
is comfortable and that we can make
Yes. You have to figure out the appe-
this happen. It helps to get the right
tite of the people in the organisation, of
people to reinforce the right vision, but
how much information you want to give
right people, helping get that sense of
them and how much information they can D I G I TA L S T R AT E G I S T, PA U L J . B A I L O
digest. You have to regulate it and you have to have really have high level of emotional intelligence, as well as a high level of street sense, and to quickly be able to assess the organisation and the people around you. How much can they actually take without breaking them? And how much do you need to give them so that you can move the needle forward? This takes a lot of executive level leadership and energy. You should be the prophet of moving these organisations forward. You also have to be able to say, “We don’t have the plan; we need to go back and adjust it”. You will make a mistake and you just have to own up to it and keep moving forward, to push you to the
CLICK HERE TO LISTEN TO THIS PODCAST
implementation phase. When you get things right, the critical thing is to sustain it. Once again, it’s about the people, w w w.t h e i n t e r f a c e . n e t
85
86
THE EXECUTION IS EASY â&#x20AC;&#x201C; THE PLANNING IS HARD
“ You can’t have legacy thinking; the thinking has to be transformative” — D I G I TA L S T R AT E G I S T, PA U L J . B A I L O
the process and the technology, all weaved into one into this digital transformation initiative on an enterprise wide level. It is not easy in the planning phase, it is not easy to get the vision, and it is not easy to get people to see the urgency about this. It’s about never giving up and making it stick, because if you cannot implement and sustain the change, you waste a lot of people’s time, money and energy. A lot of the failures that I’ve seen in digital transformation have to do more with the culture, and not assessing the culture correctly and the behaviours and values that don’t align with digital planning and digital transformation. You have to be aware what that culture is in that organisation, and put a lot of energy and thinking around that and build a plan of how you’re going to insert this idea of digital transformation in that culture. Then, the organisation gets this idea of the urgency of change. Digital transformation will find its natural path, and there shouldn’t be any policing in whatever you do in terms of your digital transformation processes and any service or products that you build. It should be natural, like breathing air. There are only two constants in the world – seeking of eternal love, and change – so all we’re doing is what’s natural to us at the right speed, with the right impact, and the right feasibility, to get ahead.
w w w.t h e i n t e r f a c e . n e t
87
OTP Bank Romaniaâ&#x20AC;&#x2122;s digital transformation & a culture of trust Interface magazine speaks to Constantin Mares, Executive Director of OTP Bank Romania, regarding the bankâ&#x20AC;&#x2122;s massive digital transformation
WRI T T EN BY PRODUCED BY
88
Andr ew Woods Al ex P ag e
89
A
A digital transformation
company to become truly free, flexible
is as much about altering
and agile in its operations, there needs
the mindset and actions of
to be a culture of trust at every level of
humans as it is the implementation of new digital infrastructure, software and
the organisation. Constantin Mares is Executive Director
operations. A workforce, and a work-
of OTP Bank Romania, responsible
ing culture, that embraces change and
for the IT, PMO and Transformation
harnesses its potential, is integral to any
Offices. Constantin is an experienced
digital transformation. To create a fertile
technology leader within the banking
environment in which to grow a busi-
sector, having worked with ING among
ness and its digital operations requires
others. He is a firm believer that an
a bold and creative approach. For a
engaged and motivated workforce,
90
OTP
one that is aligned, and committed
especially big projects constantly
to a digitally-lead working strategy, is
delayed, and over budget,” he explains
key to unlocking the potential of any
from his Bucharest office. “We soon real-
forward-thinking enterprise.
ised that if we wanted to be success-
When Constantin took on his current
ful – and we desperately want to be
position at OTP, his first assignment
successful – we had to break the silos
was to strengthen the IT function ahead
and have a better collaboration between
of a major transformation programme.
the business and the support units at
Increasingly, OTP was finding that the
the back. We had to bring faster new
standard waterfall methodology was
features and products for our clients, to
holding the bank back from realis-
be closer to their needs so our projects
ing its full potential. “We were having
would create value for them faster.” w w w.t h e i n t e r f a c e . n e t
91
One of the first major challenges facing Constantin was the establishment of a team that could help deliver the transformation. At that moment, the whole IT department consisted of around 30 people. But the need for change was there because of changes in the market, changes in the banking regulations as well as the demands of the IT department. The colleagues from the team were high-calibre professionals, highly skilled and experienced, but they were overwhelmed by the numerous projects and activities. They needed to receive help at similar level of expertise.” Constantin went to work establishing a management team of 11 to cover all units consisting of business & process analysts, programmers & workflow developers, data analysts, project managers, process analysts, DBAs,
notoriously difficult. “To hire very skilled
network and infrastructure special-
people was seen by the CEO as mission
ists. “United as a management team
impossible,” Constantin explains.
we were able to overcome the inher-
“However, we enjoyed very good
ent difficulties of any transformations or
cooperation with our HR partners who
turn-arounds. Moreover, we were crazy
went to work on the job descriptions
enough to still enjoy our roller-coaster
and our advertising campaigns, which
adventure.” OTP then started to recruit
were very simple and straightforward,
for new people able to deliver change
making it very clear what we needed.
to a high level of expectation.
We highlighted the challenge and the
IT recruitment in Romania is
ambitions we had ahead of us as well
92
OTP
as the exciting projects.” Within a year,
arrivals understand the complex new
Constantin already doubled the team
environment around us. And of course,
and now, nearly two years on, the team
the new people were avid to learn and
has tripled in size.
very eager to contribute to the new
Recruitment is hard enough, but often
environment.”
the biggest challenge is the onboarding and integration of these new people
A culture of trust
into a rapidly changing workplace. “The
The working culture at OTP initiated a
core of the team was a minority all of
vibe of collaboration, fostering a fail-
the sudden,” he says. “But our managers
fast-to-succeed strategy. “We wanted to
and senior colleagues helped the new
be open, to ask for feedback, to allow w w w.t h e i n t e r f a c e . n e t
93
We deliver solutions that work
“With the help of SMP Solutions we were able to deliver the possibility of using mobile token application and create higher customer satisfaction.” – Constantin Mares, OTP Bank
At SMP Solutions, we have been committed to providing high-quality and efficient solutions for challenges in IT, banking and security technology for over 30 years. Our cooperation with OTP Bank Romania is a great example of helping our customers along their digital journey by providing them innovative solutions. We are proud that we could take part in enabling the Bank to meet their PSD2 SCA requirements by introducing a mobile token application for their customers. We are looking forward to helping our key client make their customer service more efficient by providing a digital queueing system and CRM solution for their branch network.
LEARN MORE
Accelerate Digital Transformation with Ingram Micro and Dell Technologies! IT has moved from back office functionality to executive strategy. Businesses need to move at the speed of technology. They need to develop and rapidly deploy new applications, optimize IT resources, control costs, and deliver the best possible customer experiences. Organizations need to transform and optimize IT by modernizing infrastructure, automating delivery and consumption of IT services and transforming the people and processes they have in place today. Our experience with thousands of IT transformations—including engagements with Fortune 500 companies and with our own corporate IT organization—makes one thing clear: No two IT transformations are alike.
DELL TECHNOLOGIES INFRASTRUCTURE SOLUTIONS DESIGNED FOR YOUR DIGITAL TRANSFORMATION - AVAILABLE IN INGRAM MICRO’S PORTFOLIO!
Hyperconverged Infrastructure
Storage
START YOUR IT DIGITAL TRANSFORMATION!
Networking
Data Protection
94 D Etransformation R S T A N DisI signifcant, NG EQ A Nshouldn’t D H I stop R I Nyou Gin Fyour O tracks. R IT "The challenge ofUITN digital but that The best way to gain momentum is to start moving now."
Servers
Converged Infrastructure
I N A P O S T - P ACONTACT N D E M I C US WORLD
people to make mistakes and try new
engaged and involved. We can now
things,” Constantin explains. “We were
achieve results faster and it’s more fun
able to instil this trust in our people. We
and fulfilling for us.”
become a place where people can transparently discuss with their managers
The launch of Apollo
about issues or barriers preventing them
“Apollo program was two-fold,” Constantin
to achieve our objectives. I think this was
explains. “First, we wanted to double our
one of the key success factors in achiev-
market share and grow significantly in
ing this transformation.”
our business segments. The other side
A new 360-degree feedback system
was a transformational view of the way
was introduced with staff being asked
it was working and adopting practices
to address what they should start doing,
from Agile methodologies. That’s why
what they should stop doing, and what
we formed Apollo, where we addressed
they should continue doing. According
the business efficiency and the sales
to Constantin, this method of giving and
processes while initiating the visualis-
receiving feedback was instrumental
ation aspect of the bank. We wanted
in creating and strengthening that trust
to be more present and closer to our
base, essential in any successful organ-
online clients to create a better customer
isation. “When you have this kind of
experience.”
trust, people are more comfortable to try
Apollo saw OTP moving into a unified
things, to make decisions, to be great,”
digital strategy, freeing the company
he enthuses. “Because people like to be
up from traditional silos and outmoded
great. People like to be successful and
ways of thinking and working. A new
to achieve. So, we started to empower
spirit of collaboration linked the differ-
the team more. Instead of managers
ent departments as more and more
telling them what to do they would now
people bought into the new joined-up
tell us what to do. We would no longer
approach. Constantin and his team
impose from above regarding the best
could then look into procuring the tools
way for them to go about things. This
and software needed to realise their
completely changed our priorities and
new ambitions. “First of all, we looked at
people are now much more enthusi-
the tools we needed in IT to be able to
astic because they feel appreciated,
secure this growth. We invested heavily w w w.t h e i n t e r f a c e . n e t
95
in infrastructure and upgraded our core banking system, and changed the set-up, the operating system and database system (end-of-day and end-ofmonth processes run now 6 times faster than before). We replaced more than 1,400 user workstations. We migrated our data center into a tier 4 professional data center with redundant and dual-powered instances of servers, storage, network links and power cooling equipment. Then we upgraded the communication infrastructure (including the remote access capabilities) and security infrastructure. We started with our own processes such as the Demand Management Process and made the decision to adopt JIRA. Many local branches received technological refits, bringing them up to date with modern banking. The organization was enhanced created new functions for test management, IT relationship management, IT asset and contract management, RPA developers or BPM developers. To make sure this rapid growth is sustainable on long run, we created an elite squad of IT architects. We also created a Transformation Office staffed with Scrum masters, Lean 6 Sigma Black Belts and Agile coaches.â&#x20AC;? 96
OTP
w w w.t h e i n t e r f a c e . n e t
97
These organizational and techno-
The goal of the transformation was
logical advancements were quickly
to significantly improve productivity
embraced and highly appreciated by
and efficiency of the customer-facing
business departments. They facilitated
employees by consolidating applica-
for much better understanding between
tions, automating processes and visual-
departments with greater transparency
ising customer data and insight. This
when it came to requests for invest-
became our second transformation
ment. “They (business groups) stopped
pillar, after strengthening the IT infra-
challenging every proposal or solution
structure. We had a wide range of busi-
they received from IT,” says Constantin.
ness needs that it wanted to meet with
“We went from business having to ask
a help of a next-generation technology.
for an application, to an understanding
We evaluated numerous software solu-
of the business need and the solution
tions available on the market and opted
proposed. They started to trust us to
for Creatio as the best fit for their busi-
provide them with the solution. We went
ness. The combination of the system’s
from the status of service provider to
low code, process automation, and CRM
status of trusted business partner.” Historically, sales and front office staff faced a myriad of applications that they had to know and understand just to engage with the customer and so this was duly shelved in favour of a more linear approach to reduce the time spent in back-office activities, when they could be more customer facing. “This was because our front offices were engaged in redundant activities, or non-value-added activities,” Constantin explains. “Our growth strategy required a new set of tools and a different approach.
98
OTP
“Our managers and senior colleagues did a great job in on boarding the new colleagues, helping them understand the complex new environment around us. And of course, the new people were avid to learn and very eager to contribute to the new environment” — C O N S TA N T I N M A R E S , EXECUTIVE DIRECTOR, OTP BANK ROMANIA
technology ticked all boxes for us. The core project task was focused on streamlining a wide range of front-office and middle-offices processes. Since the scope was extensive, the delivery was divided into several stages. The first delivery stage covered some of the key business needs such as creating a 360-degree customer profile, setting up product catalogue, optimising opportunity management processes, and automating consultation processes. Delivery 2 was dedicated to automating the processes related to current account opening for individuals. Upon delivery 3 phase, the system was integrated with Enterprise Content Management software, which allowed for unified document management. Creatio solutions helped us deliver the large-scale digital transformation project effectively. The new approach allowed the project implementation team to test new functionality, gather valuable feedback,
w w w.t h e i n t e r f a c e . n e t
99
We drive the digital revolution in wealth management with cutting-edge investment software & solutions for advisors and end-user clients. Take the lead in the digital evolution of your investment advisory services. Run a prosperous wealth management business with a fully featured 360-degree advisory platform and provide your clients with a new generation mobile solution to help them easily monitor their investments, initiate transactions and communicate with their advisors seamlessly through secure channels.
CLICK TO LEARN MORE
100
U N D E R S TA N D I N G E Q A N D H I R I N G F O R I T I N A P O S T- PA N D E M I C W O R L D
and make needed changes at any
manages the entire customer facing and
stage. Thanks to the intuitiveness of the
back office workflows that we need for
user interface and the ease-of-use of
a smooth onboarding experience. And
Creatio’s solutions, the bank was able to
we are planning to implement new digi-
achieve a high level of user adoption at
tal customer journeys using FintechOS
an accelerated pace. In addition to that,
technology in the next months and years
the bank has embraced low-code devel-
to accelerate digital transformation
opment approach. Low-code technol-
success.
ogy allows for modifying the processes
“For our customers, first impressions
quickly and adjusting them to the
count, so we were very excited to roll
ever-changing business needs without
out FintechOS’s onboarding solution.
heavy reliance on deep technical skills.
And, hitting the market in such a short
The third transformation pillar was, according to Constantin, the most
time is a great achievement. It also helped implement an enterprise
important. The move from traditional
service bus (ESB), which in terms of IT
bricks and mortar banking to a more
architecture, is a major achievement,”
digitalized customer journey was now
says Constantin. The ESB has given
seen as a standard requirement for OTP
OTP much more agility and flexibility
and the team started to think about how
with regards to communication between
they could enhance each layer of OTP
applications and departments.
for its customers. “Having a solid base
Another example is the enhance-
for growth and having internal ineffi-
ment of securities investment services
ciencies sorted out, it was time to take
for private banking and affluent bank-
care about our customers and improve
ing customers. We moved ahead and
their experience starting with their
selected Dorsum, Hungarian solution
very first step: onboarding into OTP.
provider and implemented its advisory
FintechOS’ capabilities turned out to
facing solution, the Wealth Management
be well-suited for our business needs,
Platform. Dorsum designed the func-
supporting the deployment of an auto-
tional scope of the platform together
mated, end-to-end digital onboarding
with the private and affluent business
customer journey very fast. The new
areas. In line with business and oper-
solution delivers and automatically
ational goals of the Bank, functional w w w.t h e i n t e r f a c e . n e t
101
capabilities of the new digital solution
measurable.
help the advisors to have a real-time
We continuously simplified our star
360 degrees view of the client port-
products and we were among the first
folios, detailed overview of transac-
banks in Romania to introduce new
tion history, portfolio performance and
payment methods: ApplePay and OTPay
investment costs (fees paid), to seam-
for Android platform. We also launched
lessly communicate with the clients, to
new simplified versions of Internet and
build tailor-made advisory and client
mobile banking to allow our customers a
meeting workflow. Of course, all of
smoother interaction with OTP.
these fully in line with the regulatory requirements, such as eg. MiFID2.
The data warehouse
The new digital solution is able to
The fourth pillar of transformation saw
improve the quality and accuracy of
the installation of a new data-driven
the advice, make the advisory and
‘backbone’. OTP invested in a data ware-
client meeting workflow faster and the
house system and started to implement
KPIs and effectiveness of the advisors
its visualisation by using data in making
WELCOME TO THE WORLD WHERE EVERYONE CAN AUTOMATE BUSINESS IDEAS IN MINUTES! Transform your organization with Creatio, the #1 low-code platform for front-office and operational processes, and stay competitive in the time of change.
Try it free
www.creatio.com
102
OTP
info@creatio.com
UK: +44 20 3384 0040
decisions. “. We believe and I believe that
deliver in time new hardware tokens to
in this century, using data is key. We need
our customers and we have created the
to make fast and informed decisions.
possibility of using mobile token appli-
We created a single version of truth,
cation in order to move towards to digi-
augmenting all the data from all different
tal transformation and create higher
systems into one warehouse. We also
customer satisfaction.” “As SMP Solutions is committed in digi-
invested in a visualization layer. We now use Tableau when presenting the data to
tal solutions, we will ensure together an
the organisation.”
intelligent branch queueing and ticketing system in order to optimise the wait-
Success through partnerships
ing time and the personal interactions
With a project of this magnitude and
at the branches,” Constantin enthuses.
complexity, partners are essential to
“The new solution will assist our custom-
OTP’s success, something Constantin is
ers to reserve timeslots remotely for
keen to stress. OTP decided to rely on
personal appointments, while serving
core strengths of such partners imple-
their convenience we will be able to
menting new EU directives of PDS2 SCA
ensure their safety more effectively
in 2019. We created a strong coopera-
during the period of COVID-19.”
tion between OTP and SMP Solutions
The value of a great partnership
that resulted in an adequate solution
really hit home earlier this year when
of providing two-factor authentication
lockdown struck in Romania. OTP’s
method for our customers. With the
work with Dell Technologies and SMP
help of SMP Solutions we were able to
Solutions over the previous two years
“We were able to instil this trust in our people. I think this was one of the key success factors in achieving this transformation” — C O N S TA N T I N M A R E S , EXECUTIVE DIRECTOR, OTP BANK ROMANIA
w w w.t h e i n t e r f a c e . n e t
103
In this picture, from left to right: Nicolae Doca, Daniel Lazar, Isabela Ibraim, Liviu Dragomir, Constantin Mares, Adrian Circel, Alina Donciu, Cristian Marcu, Ciprian Zane Missing from picture: Dragos Serban, Catalin Ileana, Adam Salomon, Florin Gologan, Camelia Drenscu, Bogdan Firican, Ioana Nedelcu, Irina Popovici, Andreea Plesa, Miruna Dinu
had placed the bank in a compara-
Constantin explains. “The fact that we
tively comfortable position when the
achieved this in a very short time frame
pandemic struck with the digital back-
– in two weeks we had 97% of the
bone of the bank continuing to oper-
people from headquarters working from
ate as if they were back in the office.
home – is also attributable to our part-
“On the infrastructure side we like SMP
ners from Dell Technologies and SMP
Solutions, which is a partner of Dell
Solutions. They immediately understood
Technologies in this infrastructure area,”
what was going on. They were standing
104
OTP
next to us and helped us in these crazy
how the mindset and people’s behav-
times.”
iour adapted so quickly when we went
In terms of how OTP addressed or
through a crisis period.” It was felt by
reacted to the pandemic, are there any
some at OTP that working from home, in
learnings that have happened during
a paperless environment just wouldn’t
this time that Constantin might take
work. “However, in a matter of weeks,
forward with him, post COVID? “Yeah, I
guess what? Business functions were
would say it was very interesting to see
increasing following a decrease in w w w.t h e i n t e r f a c e . n e t
105
month three. By July, we were back on track and even above the levels before the pandemic. We are still working with no paper, and we are still working from home and I would say this is an important take away. I mean every crisis has opportunities and I think this was the opportunity resulting from this particular crisis.” Another key takeaway of this period for Constantin is the new level of understanding between managers and their teams. Again, it goes back to this culture of trust. “I think it’s very important that the management comes to the people, understands their problems and takes decisions to support the teams,” says Constantin. “The management team cares about the health and the wellbeing of the people and so provided some specialised client psychologists for our people should they need to call such a person.” Bolstered by a new digital backbone and organisational structure OTP is now able to research and develop new products at speed, including the recent chatbot. “In three weeks, we launched this chatbot with end-to-end integrations from the website, in which the customer could go through the process
106
OTP
w w w.t h e i n t e r f a c e . n e t
107
in a completely automated way, rather
mindset shift also applied to our busi-
than interacting with a call centre oper-
ness colleagues would not even dare to
ator. This channel was used by 55% of
believe that the implementation could
the clients asking for a debt release, a
be done in such a short time frame nor
significant number. We were not esti-
that such an implementation would have
mating such a big success or such a
such a big success for the client.â&#x20AC;?
big impact for a newly launched chan-
OTP is now a much more agile and
nel, but it was very easily embraced by
flexible enterprise, fuelled by an intox-
the customer (having more than 60,000
icating spirit of collaboration, creating
interactions in less 3 months). This
new products at speed and seamlessly
108
OTP
attracting and onboarding new clients
once. We have so many things to do that
through its state-of-the-art customer
it is very fulfilling for me and something
journey. It’s clearly an environment that
I’m enjoying a lot. To see this change in
has engaged Constantin. “To work in
the culture of the organisation, to see
such a rapidly growing environment and
people more open, more vibrant and
to be able to implement transforma-
happier at work is a good accomplish-
tions on so many levels is very fulfilling
ment and a great motivation for me and
for me, because I get to apply all my
my work at OTP.”
management experience, all my banking experience, and people skills all at
w w w.t h e i n t e r f a c e . n e t
109
Skilful suppor t Tomasz Dziki, VP of Britenet, explains what it – as an IT expert – offers, and why EF Education First chose Britenet as a trusted partner
WRI T T EN BY
110
N el l Wal ke r
111
B
ased in Poland, Britenet is
it. We’re not from management school
a software development
– we’re from technical school – but the
outsourcing business with
company is quite big now and we’re
an impressive track record for expertise and success. Tomasz Dziki, the
building it up year-by-year.” The impressive level of growth Britenet
Vice President of the business, was one
has experienced allowed it, in 2017, to
of its founders back in 2006; 14 years
capture the attention of EF Education
ago, three university friends – all Java
First. EF had hired a Salesforce architect
programmers – decided to take on the
who worked with Britenet in a previous
challenge of launching a business. Fast
company, and had a very positive expe-
forward to now, Britenet has grown
rience with the business, so they recom-
between 25 and 30% every year and
mended it to the CIO. That was the nudge
has over 700 employees. “But we are
EF needed to approach Britenet, and its
still three programmers!” Dziki says. “So,
team of around 60 Salesforce developers
for us, the big challenge is how to run
at this time, to help it achieve its goals.
the company and continue improving
112
BRITENET
The journey with EF
to understand what the requirements of
The initial challenge in kicking off this
the customer were. It also helped ensure
new professional relationship was the
the experience was a positive one.”
speed at which EF wanted to get its
Plus, it helped create the speed EF
project rolling – something Britenet was
required. Britenet is a company which,
entirely equipped to deal with. “They had
especially from a Salesforce perspective,
architects, but they also needed some
tries to build its own competencies by
developers, and they decided that they
itself by hiring university graduates and
needed someone to help them,” Dziki
teaching them vital skills. All of its people
explains. “They had their own team in
– including almost 100 Salesforce devel-
Bangalore, of five developers, but they
opers – are trained in-house; “It’s the best
were juniors, and they needed people
way to get skilled people.” says Dziki.
with knowledge and good skills. We sent
After starting with that one skilled
EF the same guys who had worked with
Britenet employee, the Salesforce team
the architect who recommended us in his
for EF became five people, plus an ETL
previous company, which made it easier
developer for integration sites and, more
w w w.t h e i n t e r f a c e . n e t
113
recently, a .NET technology expert, to work with the customers. This meant that EF would have the breadth of service it needed. “It’s important, for a company with a wide range of technologies, to not have to find different companies to suit different systems,” Dziki explains. “For example, if they have Java, that’s no problem for us. If they have SAP, we can help. It’s part of our business strategy to ensure our customers don’t have to find other companies; no matter their needs in software development, we can support them.” Three years on, this relationship has matured into a vital support system for EF. The organisation had a lot of software, with a CRM supporting thousands of customers with thousands of records. There was a huge amount of data, and the system kept growing bigger, so the challenge lay in how to maintain a consistent level of quality and functionality. “When you start a project, at the beginning, it’s simple, because you’ve created the project and have all the working parts where you want them,” says Dziki. “But as soon as you add new functionality, that changes. So the biggest challenge for us was adding new functionality without affecting quality, for the sake of the customers.” 114
BRITENET
w w w.t h e i n t e r f a c e . n e t
115
Continual quality
Europe is fortunate to house a lot of tech-
This focus on quality maintenance has
nical universities, and this is a particular
ensured that Britenet avoids many prob-
boon in Poland, where nearly everybody
lems in future; its strategy is firmly long-
speaks English, limiting language barriers.
term. “A few years into this, we’re in a
Additionally, there’s the simple fact that
good position,” Dziki says. “There’s a
the company’s rates are very competitive.
good balance with the new functionali-
“But it’s not just about rates – it’s about
ties, and the system is in great condition.
making sure our customers trust that we
The challenge, as I mentioned, is main-
provide good skills and, overall, they
taining quality as this project continues
have a good system with no problems,”
to get bigger. There’s a temptation to not
says Dziki. “This is the most important
worry about that as long as we provide
factor. We are very good to partner with.”
the functionalities in the cheapest way,
So what should customers be taking into
but looking at the system from a busi-
consideration when choosing a techno-
ness perspective, you just need to have
logical expert, like Britenet, as a partner?
good quality at a good price. EF under-
“First of all, it’s strategy. In the case of
stands this balance because they have a big system. Plus, from their point of view, we’re responsible for the whole project, and they trust us with that. There will be opportunities in the future to make the system smarter and make the process more remote, especially thanks to COVID-19 pushing remote working.” The unquestioning trust EF has had in Britenet, right from the start, is a major element of what made this project so successful – that, and the technological competency which puts Britenet at the top of its game and warranted the initial glowing recommendation. Eastern
116
BRITENET
“Our people are very experienced with good skills, and our cooperation with EF proves that” — TOMASZ DZIKI VP OF BRITENET
EF, it was a good option for them to choose a company with a wide range of technologies; some might suit having a partner for each system, but it’s much harder to manage them, that way. It also means that, when there’s a problem, it’s harder to work out who’s responsible for solving it. So finding a company which can take care of everything is step one. “The next step would be finding an international company that can provide the support for it, although it would be interesting to find the sub-contractors of these companies because they’re the people who really fight on the market and have to be good quality. Lastly, try to find a company that matches your own values, that you get along with. For Britenet, EF is a very important customer, and they like to meet, so we take a plane to go and spent time with them. Bigger, international companies don’t have the time to do that – you’re not as important to them. We will do this for our customers; we’re a good company, we’re competitive on the market and we have the technical specialists to solve any problem. Our people are very experienced with good skills, and our cooperation with EF proves that.”
w w w.t h e i n t e r f a c e . n e t
117
118
BRITENET
The impact on EF “Britenet has been a fantastic partner,” says Patrick Kammermann, CIO of EF. “They helped us develop the CRM platform and provided experts to customise and implement it, where we struggled, internally, to have the right skills and capabilities. The small but highly-skilled team they provided was extremely dedicated – and still is. They also fit extremely well with our core values, in terms of getting things done, being entrepreneurial and building the platform. They showed a lot of passion, and whenever we need them, they drop everything and help us out as if they were part of our organisation. I’m very impressed by them – they do care about us and want us to be successful, and are an excellent fit with what we do. They have become a trusted partner.”
w w w.t h e i n t e r f a c e . n e t
119
Ortoo & EF Education First: Building a High Performance Sales Team on Salesforce Ortooâ&#x20AC;&#x2122;s Darren Carpenter and Aaron Poulton discuss how the business worked handin-hand with EF Education First to create a state-of-the-art assignment system
WRI T T EN BY N ell Wa lke r
120
121
A
prime fighter in the corner of any business which needs its support, Ortoo devel-
ops workforce productivity apps for Salesforce, allowing growing organisations which use the Salesforce platform to build high-performance sales and service teams. The business was launched in 2010 by Leon Crisp, who originally created two apps dedicated to the Salesforce CRM platform: one named Email-to-anything, and one called Q-assign. The aim was – and is – to solve business challenges that Salesforce itself doesn't or isn't able to address directly. Q-assign, specifically, helps teams within companies organise themselves properly, and to create and distribute tasks to the right people at the right time. “The real focus is productivity,” says Darren Carpenter, Technical Customer
providing strategic help and guidance as
Services at Ortoo. “We're really inter-
well, which is key.” It's no surprise, then,
ested in creating improvements there.
that EF chose Ortoo as a partner. EF
We work with customers to build the right
wanted to make sure opportunities were
solution for them, and those customers
distributed fairly – fairness being a core
typically stay with us for a long time.”
part of its company DNA – and that made
“The support we offer is a big differentiator between us and some other inde-
this partnership a valuable one. “This keeps harmony in sales teams,
pendent software vendors,” adds Aaron
where there can otherwise be a lot of
Poulton, Head of Business Development.
internal politics and people kicking up a
“We act as a partner; we're not just
fuss because somebody has had more
providing technology or an app – we're
opportunities and leads than them,”
122
ORTOO APPS
Poulton explains. “A lot of big compa-
and we're flexible. A business might
nies don't have a systematic method for
think their requirements are very unusual
distributing leads, and senior staff get to
or difficult to achieve, but we talk them
cherry-pick the best ones. Without that
through a solution and prove that we're
process, things can quickly get out of
the ideal people to work with. Simplifying
control.”
complexity is what we do.”
What EF really required was a service
The inherent flexibility of Ortoo is
that could be delivered swiftly. “Speed
something that inevitably gets passed
was a big issue for them,” says Carpenter,
onto the customer; EF has a very fluid
“and every customer is unique. We come
model of working, and Ortoo is able
in and we understand that uniqueness;
to match that way of working. “Before
we don't have a cookie cutter approach,
COVID-19, they used to set up markets w w w.t h e i n t e r f a c e . n e t
123
and pop-up stalls very quickly, selling education services,â&#x20AC;? Carpenter explains. â&#x20AC;&#x153;The fact that we could then create a solution around that particular pop-up store, which might just be on a street corner in Paris, proved very effective for them. They wanted to make sure that no matter when an opportunity came in, or where from, it would be dealt with in 15 minutes.â&#x20AC;?
The challenge Of course, before the partnership could really become cemented, Ortoo and EF had to address the specific challenges that needed to be tackled. EF's previous lead assignment system was an unscalable one, difficult to manage and causing issues between salespeople, some of whom felt the leads weren't being assigned fairly. The new system had to get the lead to the right rep at the right time, balance workloads across the whole team, and it had to be simple-to-use for local managers to take the burden off the IT team. Firstly, for the organisation's larger offices, sales leads were being routed to salespeople based on territory, meaning some reps were completely overloaded while others were left waiting. Aside from location, the other factor to determine where opportunities were diverted was the program; the amount of work any specific rep had on didn't come into the equation, creating an unequal workplace. Additionally, when it came to things like absences or holidays, leads had to be re-assigned manually to the reps who didn't have as much work on; EF wanted to automate this and create a much fairer system, ensuring all reps received an even number of high-quality 124
ORTOO APPS
â&#x20AC;&#x153; We absolutely work with our customers and prospects to configure the product to their specific use, case-by-case, from day oneâ&#x20AC;? Aaron Poulton, Ortoo
w w w.t h e i n t e r f a c e . n e t
125
opportunities. With over 4,000 assign-
prospects to configure the product to
ment rules to manage, and 50+ requests,
their specific use case, case-by-case,
every month, for workload changes, the
from day one,” says Poulton. “The idea
business needed help. It was dealing
is to get it absolutely optimised to what
with millions of opportunities, as a global
they want before any money changes
organisation, meaning a truly scalable
hands. Then it becomes a 'puppy dog
solution was required.
sale' – you've got this lovely little puppy,
Q-assign was perfect for the job at
it's just perfect, so of course you're going
hand, but the schedule was tight. Ortoo
to sign the contract and be incredibly
worked quickly with EF to design the
happy about it. That's the way we work.”
solution, the configuration and the imple-
The ease of working with EF was
mentation; just three months after the
bolstered by the fact that this is an organ-
initial demo, the solution went live. “We
isation which understands technology,
absolutely work with our customers and
and was keen to create real change with
126
ORTOO APPS
an expert. “A good partnership depends
system – prior to Ortoo – generated a
on the scale and the willingness of the
certain degree of negative feedback
customer to learn,” Carpenter explains,
from salespeople feeling hard done
“and EF definitely was very technical.
by, the fact that there have been no
They know Salesforce well, and they
complaints since Q-assign's implemen-
absolutely push the product, in terms of
tation is a major win for Anuj Kapoor,
capability and function. They absolutely get it – they get the
THE SOLUTION
value of us and of our product.”
A system which examined the quality of the opportunity before deciding who to assign it to
The impact Where EF's previous
A pilot was launched in France, where there are 11 offices with five different teams in each A Round Robin system combined with quotas, with leads distributed fairly New system takes into account program, Sales Office, post code, language, and SCT call type Each region has full control over assignments The system has now been rolled out to other countries after a successful trial The changes were implemented without the need for Salesforce IT admin, meaning a rapid approval process.
w w w.t h e i n t e r f a c e . n e t
127
128
ORTOO APPS
Senior Project Director at EF. “With thousands of new customers getting in touch, all the time, and the inherent complexity of working across 50 countries, we needed a much better system for figuring out who should be talking to which customers, and when,” he explains. “Now, everybody gets equal opportunities, and the system is personalised, allowing customers to get in touch in the way that suits them. Ortoo has allowed us to refine the speed of that, and what I personally really like about it is it's multi-dimensional – you can always add more.” Most importantly, the days of salespeople feeling like they're missing opportunities is over, and customers are getting their undivided attention in a way that works for everybody. For both EF and Ortoo, this was a hugely satisfying project. “What impressed me was the speed of roll-out,” says Carpenter. “In terms of licenses, they are one of our biggest customers, and the speed with which they launched it was impressive.” “It's also driving our product, Q-assign, into new areas as well,” Poulton adds. “That's helped develop the product itself. EF has had a big impact in the direction of the product, and a major influence in terms of the product itself. This has been a very beneficial partnership to us.” “EF has absolutely been a part of development and will be going forward,” says Carpenter. “We absolutely appreciate their input.”
w w w.t h e i n t e r f a c e . n e t
129
Five ways technology will aid economic recovery 130
WRI T T EN BY
N ell wa lke r
As the world slowly establishes a new normal, we reflect on some of the technologies which will contribute to a successful economic recovery
131
Technology thrives during times of need Necessity is, indeed, the mother of invention. According to Digital Information World, solutions created during desperate times endure, and drive economic growth long into the future. For example, The Great Depression birthed the electric razor and car radios, among other technological advances, while Microsoft and Apple got their start during the oil crisis recession in the 1970s. The current pandemic has presented us with the opportunity to change the way we live and operate, exposing weaknesses in systems we previously relied on and allowing us to make them better. People are searching for ways to adapt, and technology will always lead this march.
132
F I V E WAY S T E C H N O LO G Y W I L L A I D E C O N O M I C R E C O V E R Y
w w w.t h e i n t e r f a c e . n e t
133
134
F I V E WAY S T E C H N O LO G Y W I L L A I D E C O N O M I C R E C O V E R Y
Increased investment in cyber security According to the 2nd Global Business Barometer, teleconferencing platforms have, arguably, received the most attention as a tool for business to adapt to the changes brought on by COVID-19; however, for many businesses, the current focus is on security and risk. Forty-four per cent of respondents said cyber security would become â&#x20AC;&#x2DC;much more importantâ&#x20AC;&#x2122;, followed by the related areas of data privacy at 42.5%, and risk management and cloud computing at 39.9% each.
w w w.t h e i n t e r f a c e . n e t
135
Remote working Businesses forced to either shut down or send their staff home to work during lockdown have been able to enjoy the silver lining of decreased costs of running their workplaces, giving them a little grace to ensure they survive and, hopefully, thrive as the economy reboots. Technologies such as video conferencing and project management software have meant that a lot of companies working from home have still managed to make a success of this time, and itâ&#x20AC;&#x2122;s highly unlikely that they wonâ&#x20AC;&#x2122;t emerge from this with revised remote working policies in place. A Nowsourcing infographic states that as remote work, technology, and internet access continue to develop, workers will have the option to leave big cities, escaping the high cost of living and bolstering small town economies in the process.
136
F I V E WAY S T E C H N O LO G Y W I L L A I D E C O N O M I C R E C O V E R Y
w w w.t h e i n t e r f a c e . n e t
137
138
F I V E WAY S T E C H N O LO G Y W I L L A I D E C O N O M I C R E C O V E R Y
Adoption of home technology Whether itâ&#x20AC;&#x2122;s due to working from home, home schooling, a need to create alternative revenue streams or simply for the sake of socialising with friends and family, there has been a massive uptake in home technology â&#x20AC;&#x201C; both hardware and software. The aforementioned infographic shows that sales and use of these technologies keeps growing: sales of Chromebooks have risen by 400%, webcams 179%, monitors 138%, headsets 134%, and keyboards 64%. Additionally, Zoom gained an extra 190 million new users in three months, and G Suite gained a million new paying businesses in February alone.
w w w.t h e i n t e r f a c e . n e t
139
5G infrastructure Despite bizarre conspiracy theories linking 5G to COVID-19, it is still fully expected by experts to help boost post-pandemic recovery by introducing new possibilities for tech products. 5G isnâ&#x20AC;&#x2122;t an upgrade of 4G, as many people believe, but a brand new mobile system. For businesses, it will create increased speed and bandwidth, improved battery life for remote IoT devices, enhanced security, better WAN connections, 100 times the traffic capacity, and 100 times the network efficiency â&#x20AC;&#x201C; among many, many other advantages. Rolling out across 2020 and 2021, 5G will be a huge boon in our post-COVID recovery.
140
F I V E WAY S T E C H N O LO G Y W I L L A I D E C O N O M I C R E C O V E R Y
w w w.t h e i n t e r f a c e . n e t
141
The importance of supplier engagement We spoke to Sulaiman Abdulla, Manager of the Procurement and Contracts Section at the UAE’s TRA, to monitor the company’s procurement transformation WRI T T EN BY
Andr ew Woods
PRODUCED BY
Hey kel Ouni
142
143
A
ided by new technology,
occurring thanks in part to the work of
and supported at boardroom
bodies such as CIPS (Chartered Institute
level for its deep insights into
of Purchasing and Supply), which has
every strata of a companyâ&#x20AC;&#x2122;s operations,
spent ten years highlighting the strategic
procurement is now seen as a vital stra-
value of procurement in the region. Now,
tegic aid. Across the globe, traversing
certain companies and CPOs are leading
every industry, the CPO is fast becoming
the way in bringing procurement into a
a visionary with a 360-degree holistic
new dawn.
insight that can truly help businesses to strategize and accelerate growth. Traditionally, the Middle East has taken
Technology has increasingly become a major focus for the Middle East, with many nations vying to make the area
a little longer than most to adapt to the
a global center of technological excel-
evolution of procurement, but change is
lence and digital transformation as seen
144
TRA
in the sector and reflecting the level of development of ICT in the UAE. The UAE has also remained first, globally, in the mobile broadband subscriptions index and advanced from second to first, globally, in the Mobile Broadband Internet Subscription Index. In terms of Internet users, the UAE moved up to 5th from 13th globally, while rising to 29th from 68th in the world, in the Fixed Broadband Subscription Index. TRA is working hard to achieve a number one ranking in this index in order to achieve the goals of the National Agenda: to be the first in the world in TII by 2021. In short, the role of TRA is to “encourage, promote and develop the ICT industry in the UAE”. And to facilitate an endeavor of this scale, you need a smart and agile in projects such as the upcoming Expo 2021, Dubai. The Telecommunications
procurement function. The procurement function at TRA
Regulatory Authority (TRA) of the United
is headed up by Sulaiman Abdulla,
Arab Emirates (UAE) was established in
Manager Procurement & Contracts, who
2003 to regulate the burgeoning tele-
joined in 2016 with a wealth of experi-
communications sector in the UAE and
ence having worked for different govern-
enable government entities in the field of
ment and private sectors. TRA is dedi-
smart transformation. The UAE is ranked
cated to developing and modernizing the
first in the Arab region and seventh
telecommunications system in the UAE
globally in the Telecommunication
through training, enabling and establish-
Infrastructure Index (TII), according to
ing related educational institutions, and
the UN E-Government Survey 2020 –
obtaining the latest ICT devices, equip-
surpassing many developed countries
ment, and facilities. w w w.t h e i n t e r f a c e . n e t
145
UAE EMBARKS ON A DIGITAL JOURNEY
Infosys has been working closely with UAEâ&#x20AC;&#x2122;s public sector, which has reposed trust in us to implement missioncritical projects. Infosys partnership has gone from strength to strength, and we have rolled out several countrywide e-governance initiatives
www.infosys.com
INFOSYS TO DRIVE E-GOVERNANCE How does a government save 45,600 working hours, 10 million person hours of waiting time, and 1,011 tons of carbon? The answer lies in Smart Governance. UAE Smart Government has been focusing on smart governance since 2015 to increase the efficiency of the government services by eliminating the physical visits for the citizens and residents. Infosys, a global IT consulting company, has been a key partner for National Plan initiatives launched by the Key Public Organizations Government Service Bus (GSB) Infosys has implemented several smart initiatives starting with Government Service Bus (GSB) backbone built in 2015. GSB delivers more than 200 services across 60 government entities, providing direct access to UAE residents.
New Baby Born Registration This initiative simplifies the process of registering newborns. a process that took six to eight weeks. parents can apply for the service once, and access several services in two weeks: • Issuance of birth certificate • Adding the baby in the family book • Registration of baby in the population register • Issuance of passport • Issuance of Emirates Identity Card
Ease of Doing Business digitize government services related to registering a business in the UAE. It is an integrated e-service that enables an investor to access several services within 15 minutes, including: • a trade license • a membership number in the Chamber of Commerce • a quota for three work permits • Establishment Numbers The initiatives reduced the number of visits by investors to government entities from 10 to 0 and reduced processing time from 2-3 weeks to 15 minutes. Also, the number of duplicate documents required by Government entities was reduced from 30 to 0.
UAE PASS National Identity Solution The UAE Pass, a national digital identity and signature solution, enables users to identify themselves to government service providers via smartphone-based authentication. It allows users to sign documents digitally. Find out more about how Infosys have been helping clients in transformation journeys. Reach out to us at askus@infosys.com
w w w.th e in te r fa ce . n e t
147
“ Sometimes, people don’t really understand the CPO, procurement and negotiation. It’s not a transactional role anymore. It’s more about quality, new ideas and flexibility” —
S U L A I M A N A B D U L L A , M AN AGER, P ROCUR EM EN T & C O N T R AC T S , T R A
Upon his appointment, Abdulla initiated a massive procurement transformation at TRA by establishing a roadmap that would see procurement becoming much more than a merely transactional aid at the regulatory authority. “I wanted us to start developing people, governance and partnerships,” he explains. Abdulla initiated an extensive round of market research to gain feedback and insights from TRA’s internal and external stakeholders. “I really wanted to understand their requirements with an
148
TRA
increased focus on supplier engage-
perspective of operations outside the
ment,” he says, adding, “After all, they
standard quarterly timeframes that many
understand the market better than
departments adhere to. “I am interested
anyone else.” There has been a real shift
in looking at partnerships over 20, 30,
in the sharing of information and insights
40 years,” he explains. “Sometimes,
within the regulator, and externally
people don’t really understand the CPO,
with partners, since Abdulla took over.
procurement and negotiation. It’s not
Focused on collaboration with bodies
a transactional role anymore. It’s more
such as CIPS, TRA wants to increase
about quality, new ideas and flexibility.”
awareness and knowledge of the strate-
Transformation of procurement func-
gic value of procurement and now places
tion is a process, not merely a project
a massive value on supplier engagement
you start and finish. “We started this
and collaboration to create a longer-term
journey four years back by focusing on w w w.t h e i n t e r f a c e . n e t
149
LEADING GLOBAL EXCELLENCE IN PROCUREMENT AND SUPPLY CIPS, THE CHARTERED INSTITUTE OF PROCUREMENT & SUPPLY, ISâ&#x20AC;¦
CIPS CLIENTS IN MENA INCLUDE:
THE PROFESSIONAL BODY A not-for-profit organisation that exists for the public good, promoting and developing high standards of skill, ability and integrity among procurement and supply chain professionals.
QUALITY GUARANTEED CIPS qualifications are recognised by regulators across the world, including the Knowledge and Human Development Authority (KHDA) in Dubai, demonstrating that they meet specific quality standards.
THE GLOBAL STANDARD CIPS Global Standard in Procurement and Supply sets the benchmark for what good looks like in the profession.
A COMMERCIAL ORGANISATION CIPS helps businesses and governments around the world to excel in procurement and supply, supporting them to improve and deliver results and raise standards.
A GLOBAL COMMUNITY We are the world’s largest professional body dedicated to procurement and supply with a community of over 200,000 professionals in over 150 countries, and offices in Africa, Asia, Australia, the Middle East, Europe and the USA.
WWW.CIPS.ORG | MENA.ENQUIRIES@CIPS.ORG w w w.th e in te r fa ce . n e t 151
technology enhancement, process re-en-
(internal and external) and includes a
gineering and people development in
commitment to add value to supply
skill set capabilities. You always start
chain management. “Most procurement
small till you reach big. Procurement
professionals are focusing more on
professionals and leaders have to under-
the internal stakeholders by having an
stand that success is a journey. You can’t
internal engagement plan with stake-
simply just jump from a manual work-
holders and an effective communica-
ing environment to artificial intelligence.
tion plan to understand their needs and
Transformation starts with automating
requirements. On the other hand, we
your manual processes, then shifting to
often see that the level of collaboration
digitalization and the analysis of the infor-
and engagement with the suppliers is
mation and data to reach to AI.”
low. Chief procurement Officers need to
The mindset of CPO, according to Abdula, should change from “competition to completion” in order to achieve greater value and sustain the growth of the organization. “This means, we as procurement professionals, should work more collaboratively with our internal stakeholders and suppliers,” he explains. “We complete each other in the process of supply chain in order to achieve a win-win strategy.” Abdulla has placed an increased importance on supplier engagement and collaboration at TRA, but why is supplier collaboration so important to TRA’s activities with regards to strategic procurement? According to Abdulla, it has become essential for companies to extract the best possible performance of the supply chain involving all parties 152
TRA
realize the value and the importance of supplier collaboration.” Abdulla details a number of benefits from this form of engagement. Project
“We have started engaging our strategic partners to develop the staff by closing the skills gap and providing a self-learning environment” —
S U L A I M A N A B D U L L A , M A N AG E R , P RO C UR E M E N T & C O N T R AC T S , T R A
timelines can be accelerated and project outcomes improved; for example, boosting business expectation and requirements while minimizing risk. There can be a massive development of staff by closing existing skill gaps which also boosts operations with regards to staff retention which, according to Abdulla, will relieve dependency on contractors and suppliers. Plus, value addition and cost optimization by reducing inventory levels will significantly improve the customer journey, allowing better visibility into customer demand, supplier performance and faster decision-making. “Effective collaboration with partners is all about sharing valuable information and transparency to achieve a common goal or target,” he says. “It also means that both parties are extending their efforts to achieve the value that both parties wish to reach. A ‘win to win’ strategy.” Recent studies highlight that organizations engaged with suppliers are 38% more likely to achieve their expectations and goals towards cost optimization and value driven procurement. According to Abdulla, levels of engagement or collaboration can often start w w w.t h e i n t e r f a c e . n e t
153
with the transactional level where both
is power,” Abdulla explains. “And it is very
parties share transactional data includ-
important for the organization to map its
ing purchase orders, invoices payments,
strategic planning towards a strategic
work orders, sales orders, inventory
level of engagement and collaboration
and contract terms to help the partners
with suppliers to achieve greater value
automate business processes and trans-
and outcome from the supply chain.”
actions and help in making best decisions. The level of engagement can also increase to a ‘strategic level’ where both parties are taking part in joint planning, redesigning of business and products by sharing high levels of value information. In this level, both parties share levels of risks and reward that can lead to better forecasting and planning that can reduce risk and enhance quality and better pricing plans, while boosting sales and operational planning and resolving critical issues and events. Collaboration is dominating many conversations in every conceivable industry and procurement is starting to truly benefit from the sharing of information. Abdulla is a true devotee to the collaborative way of working and believes that a network of shared information can unlock true potential from procurement and the supply chain while driving innovation through the discussion of ideas and suggestions. Staff capabilities can also be improved greatly through sharing thoughts and ideas. “Knowledge 154
TRA
Supplier relationship management or as Abdulla terms it, supplier value
Sulaiman Abdulla Manager, Procurement & Contracts, TRA A strong believer in Completion rather than Competition Methodology, Sulaiman has led different teams with different initiatives in value adding to organizations in the field of Cost Optimization and Supplier Management Particularly. Procurement is not Purchasing. Procurement is the main function (asset) for any organization to drive cost optimization and innovation by adopting best practices such as â&#x20AC;&#x2DC;Supplier Collaboration and Early Engagementâ&#x20AC;&#x2122;. Change is the only constant in any organization to sustain so it is very important for procurement professions to adopt best practices in all industries from technology, to people, to processes. Sulaiman and his team have worked accurately towards predicting business demand to anticipate the market changes and develop the right approach to source products and services in a competitive way. They have achieved excellence in this domain through encouraging the use of practices and behaviors that enhance trust with partners and championing suppliersâ&#x20AC;&#x2122; innovation capabilities and getting them involved early and actively.
155
management, requires an organization to shift from the traditional method of cost saving and negotiation to focus more on a ‘win–win’ approach which will empower the procurement team to be a business partner rather than a mere facilitator. In order to increase the collaboration level, organizations are required to get a holistic view across all suppliers before segmenting them in different approaches to identify the key suppliers who are adding value to the supply chain. “Segmentation of suppliers should not be focused on spend only,” he states “If you are going to increase the level of engagement and collaboration, then you need to consider different aspects while segmenting your suppliers. Some examples to consider are nature of projects, industry, spend, risk, innovation, performance and value. You also need to identify the supplier touch points in the supply chain processes. There are different areas where you can expand the supplier collaboration and engagement efforts to drive continuous improvement to the process. Apply an 80/20 methodology; focus on the 20% of your suppliers who generate 80% value to the organization.” Supply chain or procurement processes are always centered around long-term business, and not short-term relationships, according to Abdulla. “This how the CPO differs from the CFO. There are always challenges faced in any collaboration, especially for procurement professionals who are responsible for managing internal stakeholder, and supplier, collaboration while maintaining the different mindset of spending and saving the budget. As a public organization, I believe there are great stories of success we have achieved through early engagement 156
TRA
of our strategic suppliers on a national
just one supplier, but many suppliers or
level.â&#x20AC;?
consultants.â&#x20AC;?
TRA practices different types of early
Early engagement with suppliers offers
engagement, based on the way it cate-
benefits to both TRA and its suppliers
gorizes and segments its vendors. â&#x20AC;&#x153;Early
and enables the government to better
engagement with vendors for new tech-
plan for, and mitigate, risk. Complex,
nologies, allows them to communicate
innovative or high-risk programs can
the desired responses and narrow down
be adapted to better utilize ICT indus-
on a specification to advise us as to
try capacities, providing government the
the nature of the subsequent procure-
opportunity to realistically measure and
ment. Another type of early engage-
analyze the capacity of the ICT indus-
ment is when we need advice on a new
try to contribute to strategic programs
market, product, or service from not
and engage early problem recognition. w w w.t h e i n t e r f a c e . n e t
157
158
TRA
Suppliers might also know more about what is possible or not when facing technological uncertainty. Early involvement provides maximum opportunity for enhanced outcomes in terms of cost, quality, delivery and design. Early engagement with suppliers also allows the procurement team to leverage on supplier capabilities and achieve advantageous positions in the innovation and development processes. “Early supplier involvement not only enhances outcomes, but also enables suppliers to bring new innovations to the table. If technology is complex, we bring suppliers in and discuss design ideas issues and challenges. Early supplier involvement assists in both the quality and cost of the initial finished good, but also in the ability to keep the product in service after the sale,” he says. According to Abdulla, it is important to engage early and widely with the supply side, to give a supplier an opportunity to shape the requirement. Suppliers who are involved earlier can have a better understanding of the requirement, reduce time to market, create better business forecasting and better resources planning that can lead to a long-term business relationship.” Operating under TRA’s ‘newborn’ w w w.t h e i n t e r f a c e . n e t
159
strategy, one of TRA’s strategic level
in the workplace culture is seen by many
projects was achieved within 100 days by
as disruptive, but necessary. Among the
getting the strategic suppliers engaged
challenges Abdulla has faced, he cites a
earlier in the prototype phases. “There
lack of vendor’s cooperation, intellectual
was a daily collaboration with the differ-
property conflicts with vendors and the
ent strategic suppliers who were on our
overestimation of the development skills
premises to achieve the target,” Abdulla
of the supplier. Political issues arise too,
explains. “Clarity is very important while
such as, the reward structure for suppli-
engaging the supplier. In this project,
ers and a degree of fairness to those
the goal was clearly transferred to all
not involved as early as other vendors.
suppliers and changing the deadline was
“Understanding is so important,” he says.
non-negotiable.”
“There needs to be understanding on all
Abdulla believes that developing internal capabilities is a key factor to success.
sides.” With a procurement transformation
“We have started engaging our stra-
fully under way at TRA, Abdulla and his
tegic partners to develop the staff by
team have 36 KPIs to monitor its success.
closing the skills gap and providing a self-learning environment that leads to bringing different values to the organization; from knowledge adoption to applying best practices and utilizing the tools and toolkits. Regarding new tools and techniques, Abdulla can see a time in the not-too-distant future when artificial ‘emotional’ intelligence could be fully harnessed by the procurement function. As with any new business practices, there will be challenges during implementation. Change management is often number one in the most common challenges facing new processes and operations. A new way of working and a shift 160
TRA
“Early supplier involvement not only enhances outcomes, but also enables suppliers to bring new innovations to the table” —
S U L A I M A N A B D U L L A , M A N AG E R , P RO C UR E M E N T & C O N T R AC T S , T R A
However, how does Abdulla encapsulate procurement excellence? “Data is important. After all, without data you can’t improve anything. I place a high value on people, too. After all, you can have the best technology in the world, but if you don’t have the people and the brains, it’s useless. Procurement excellence is a continuous evolution and it’s all about driving value to the organization,” Abdulla explains. “Right now, people need to truly understand the procurement process to allow it to work at its full potential.”
w w w.t h e i n t e r f a c e . n e t
161
BE LIKE SAM
Are you leading a Procurement or Technology transformation? CPOstrategy & Interface Magazine offer a unique opportunity to showcase your story and give a voice to that journey Get in touch. Be like Sam and share your story!
FIND OUT MORE