CANADA EDITION JULY 20 19 canada.businesschief.com
Supporting Canada’s underbanked
Cutting-edge technology with client obsession Chief Information Security Officer Cory Gould outlines the bank’s recipe for success
City Focus
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FOREWORD
W
elcome to the July issue of Business Chief Canada!
This month we also spoke to Greg Onoprijenko of Ingram Micro. Director of Cloud Canada for the IT giant, he explained the ways in which cloud computing have facilitated digital transformation at the company. Meanwhile, Chief Operating Officer of Cashco Financial, Raymond Wilson, profiles the values that drive a technological approach to the client experience.
The Edmonton based Canadian Western Bank features in this month’s issue as we speak with Cory Gould, Chief Information Security Officer for the organisation. Touching on topics such as relationship building, user awareness and Cory Gould, cutting-edge Our City Focus this month CISO, Canadian Western Bank technology, Gould sees us explore the city of explains his company’s Halifax, Canada’s ‘Ocean City’, strategy in the realm to uncover the three industries in of cybersecurity and the which it excels. confidence it inspires in clients. Do you have a story to tell? If you would “We are obsessed with our clients’ like to be featured in an upcoming issue success and our proactive approach to of Business Chief Canada, get in touch supporting them, and we are obsessed at william.smith@bizclikmedia.com. with ensuring that the information they entrust us with remains confidential Enjoy the issue! and secured,” says Gould. William Smith
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03
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CONTENTS
12 Future proof digital transformation security for the enterprise
32 Using collaboration to unlock the power of the ecosystem
How is digital transformation revolutionising the supply chain sector?
44
56
ELEPHANT
The in the digital room: unplanned downtime
66
74 City Focus
HALIFAX
84 Social impact: balancing profit and purpose
TOP 10
Manufacturers in the US
CONTENTS
100 Cashco Financial
114 Ingram Micro
128 University of Toronto Mississauga
142 Town of Caledon
156 Service New Brunswick
170 ANDRITZ
188 Flexential
206 Bartell Drugs
226 Heath Consultants
12
Future proof digital transformation security for the enterprise WRITTEN BY
HARRY MENEAR PRODUCED BY
JAKE MEGEARY
J U LY 2 0 1 9
13
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CANADIAN WESTERN BANK
14
Cory Gould, the first CISO at Canadian Western Bank FInancial Group, discusses using cutting-edge technology, relationship building and user awareness to combat cyberthreats and help realize the company’s bold vision
T
he world is evolving. The proliferation of digital devices, mass migration to the cloud,
and a rising tide of data is changing the nature of the enterprise. In few verticals is this truer than the banking and finance sector. Bank vaults piled high with paper money are being replaced by digital vaults, in-person meetings at a local branch are giving way to 24/7 mobile banking solutions, and major banking houses are facing serious competition from a new generation
J U LY 2 0 1 9
15
of digital-only ‘challenger banks’. Digital
“We appreciate that this is the new
transformation means new opportuni-
world; things are changing and they’re
ties, greater efficiency and insight into
changing very, very quickly,” says
the business ecosystem, but every
Cory Gould, Chief Information Security
paradigm shift brings new challenges.
Officer (CISO) at Canadian Western
According to the Ninth Annual Cost
Bank (CWB) Financial Group. “20 years
of Cybercrime Study, released in
ago, we were concerned with things
March 2019 by Accenture, the methods,
like debit skimming - manual, tactical
targets and impact of cyber attacks
ways of committing fraud. Now, the
is evolving at an accelerated pace.
proliferation of digitization and the
In 2018, the report found, the average
sheer accessibility of financial services
cost of cybercrime to companies rose
remotely and somewhat anonymously
by 12% year on year to US$13mn.
is certainly driving the rise of cybercrime. c a na da .busi ne ssc h ief. com
CANADIAN WESTERN BANK
We’ve seen a significant rise in the
started at CWB Financial Group in 1997,
levels of organization, structure and
and became the first CISO in the
sophistication of these threats.”
bank’s history in December 2018.
One of the youngest banks in
“The financial industry has been fairly
Canada, CWB Financial Group is
static for a century. Over the last 15
headquartered in Edmonton, Alberta
years, however, we’ve seen a real shift
and positions itself as the top choice
in the demands of our clients. Traditional
for Canadian enterprises in search
banking isn’t fitting the bill anymore,”
of expert advice delivered through
he explains.” We sat down with him to
a relationship-based approach. “Our
explore the approach Gould is taking
size provides us with a level of agility
towards neutralizing cyber threats to
that is allowing us to respond to change
CWB Financial Group as it continues
in the industry,” says Gould, who
to grow at an industry-leading rate
16
J U LY 2 0 1 9
CLICK TO WATCH : ‘CWB – OBSESSED WITH YOUR SUCCESS’ 17 (recently surpassing the $30bn total asset milestone for the first time) alongside the global digital banking revolution. “We’re on the cusp of something really special,” enthuses Gould. “Increasingly, we’re being recognized for the value that we bring to our clients.” As the first CISO in CWB’s history, Gould is part of a bold and innovative shift in the bank’s own culture. A crucial success factor, he explains, is establishing an enterprise architecture in which security methodology is embedded at the initial stage.
“ We’ve seen a significant rise in the levels of organization, structure and sophistication of these threats” — Cory Gould, CISO, Canadian Western Bank
“It’s a really big win and, I think, critical c a na da .busi ne ssc h ief. com
CANADIAN WESTERN BANK
20 for an organization as they move forward,” says Gould, admitting that
proactive with respect to security.” This closer, more collaborative
CWB Financial Group had experienced
relationship with the enterprise and
challenges maintaining strong relation-
technology side of CWB Financial
ships between security and leadership
Group is also driving a shift in the
before, “because we didn’t have a senior
philosophy of the security side of
dedicated role for information security.
the business. The traditional role of
It’s 2019. Nobody is going to deny the
a security division as a deterrent,
need for security, but it’s very easy for
Gould explains, simply isn’t the best
security to take a backseat in the wake
way forward in the modern world.
of rapid change. Now, we have a senior
“Gone are the days when security just
security leader out in the organization,
pounds its fist on the desk and says
pounding the pavement and building
‘No! Come back later.’ That’s not
relationships with key decision makers,
practical in the digital world we live in.”
positioning us to be much more
The rapid advancement of technology
J U LY 2 0 1 9
is at the center of CWB’s progress, and Gould’s mantra of “enable not deter” reflects it. Technology, he contends, may be creating both business and cybercriminal opportunity, but it is also enabling and empowering security. Stronger relationships between the security and business elements of CWB Financial Group is at the core of this. “Our ability to sit at the table with the business, talk through their needs and challenges, and offer up technology solutions we know are inherently secure, brings to them functionality
E XE CU T I VE PRO FI LE
Cory Gould Chief Information Security Officer Cory Gould is the Chief Information Security Officer at CWB Financial Group, a diversified organization providing specialized business and retail financial services across Canada. Mr. Gould has over 20 years experience in Information Technology and Security primarily within the Financial industry and as the first CISO at CWB Financial Group, is working to mature the Information Security practice by embedding sound security awareness and behaviours within the culture of the organization.
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21
CANADIAN WESTERN BANK
22
“ Our size provides us with a level of agility that is allowing us to respond to change in the industry” — Cory Gould, CISO, Canadian Western Bank
J U LY 2 0 1 9
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25
and capability they’ve never had
machine learning. “One of the key
before,” Gould explains.
things to enable is machine learning.
Rapid and ongoing digital transfor-
We are absolutely neck deep in data
mation has become the day to day
and analytics like everyone else on
reality for any enterprise seeking to
the planet. The more dependent we,
stay abreast of the information
as an organization, become on our data
revolution. Gould recognizes the power
and knowledge, the more it becomes
of employing technology to automate
currency. So, we’re using it within our
day to day operations in an institution,
information security program to gain
as well as process data to generate the
intel and understanding,” Gould explains.
kind of insights that lead to high-level
In addition to boosting the detection
decisioning. The key to both applica-
and insight gathering capabilities of
tions is artificial intelligence (AI) and
CWB’s security department, AI and ML c a naa da nz .busi ne ssc h ief. com
CANADIAN WESTERN BANK
is set to play a key role in automation. “Like any other position in IT, there are the necessary evils of day-to-day operational activities,” Gould notes. “With those ongoing, almost mundane tasks that we have to perform, there is the risk of human error. Any time that you can remove that day-to-day work that just needs to be done from very capable resources and have them focus on the big picture, it’s valuable.” Striving for a near-perfect security architecture is no mean feat, and Gould recognizes that CWB Financial Group 26
cannot stand against the rising tide of cybercrime alone. “We rely on strong partners who have a genuine interest in our success; FireEye is one of those partners. FireEye sees the world of Cyber Security through the eyes of active threat actors. It is this relevant, real world experience that is assisting CWB Financial Group in meeting our Cyber Security objectives,” he explains. Every year, driven by experience, artificial intelligence and increasingly sophisticated software, cybersecurity solutions reach closer and closer to infallibility. “With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot J U LY 2 0 1 9
27
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CANADIAN WESTERN BANK
“ With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot that can be prevented” — Cory Gould, CISO, Canadian Western Bank
28
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that can be prevented.” However, as technology grows more sophisticated, the most common vulnerability for an organization grows more obvious: the human element. According to Accenture’s report, “Whether by accident or intent, many employees are often the root cause of successful cyberattacks.” While security systems and protocols can be updated and tweaked on a daily basis, Gould points out: “You can’t patch humans. Humans are vulnerable, passionate and intellectual; they don’t
think in terms of bits and bytes and
We spend a lot of time with the organi-
ones and zeros, so people make
zation educating, bringing about greater
mistakes and we recognize that.” In
awareness. We know that we will never
order to shore up this potential weak
be 100% in that area but will continue
point, Gould is turning to the flagship
working with the business and our
skill in his arsenal: relationship building
internal clients to keep security at the
and management. “It wasn’t until one of
forefront of the way CWB Financial
our more recent and most significant
Group operates.”
initiatives that we really recognized how
The threat of cybercrime is only
important change management is,” he
expected to rise, and the constant arms
recalls. “Now, one of the most critical
race of technology, training and
tools in our security toolkit is our User
relationship building shows no signs
Awareness Program.
of slowing down. Looking to the future, 29
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CANADIAN WESTERN BANK
30
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Gould has the responsibility of ensuring that CWB Financial Group remains agile and responsive, even as it continues to scale. With phishing and ransomware replacing cheque fraud and men with guns in balaclavas, Gould and his team are on the front line, protecting CWB Financial Group as it strives towards greatness. Reflecting on over 20 years at the bank, Gould looks ahead filled with confidence and optimism. “As an organization, we pride ourselves on listening intently and asking the right questions to provide our clients with the right financial solutions. We are obsessed with our clients’ success and our proactive approach to supporting them, and we are obsessed with ensuring that the information they entrust us with remains confidential and secured,” he says. “It’s a bold vision but I think it’s achievable. I’ve spent my career here and I can honestly say that when this group of great individuals puts its mind to something, there’s little that gets in the way.”
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31
LEADERSHIP
32
Using collaboration to unlock the power of the ecosystem Sean Thompson, SVP Business Network and Ecosystem at SAP Ariba and SAP Fieldglass, shares his insights into the power of collaboration and SAP Ariba’s new partnership with American Express WRITTEN BY
J U LY 2 0 1 9
HARRY MENEAR
33
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LEADERSHIP
P
rogress is a cyclical journey. Creation leads
to hype, which leads to a bubble, followed by a return to earth and, finally, true adoption and
advancement of the market. With the perspective of over 20 years in the business intelligence leadership space, Sean Thompson, Senior Vice
President of Business Network and Ecosystem at SAP Ariba and SAP Fieldglass, is familiar with the process. Having witnessed and been deeply involved in major technological cycles like natural language processing, ecommerce and now the Big Data boom, Thompson is well aware of the key strategies that help push the envelope and work 34
towards lasting growth. “As the gray haired guy in the room, looking around and having seen different cycles unfold, it’s an amazing time to be alive and in the software business,” he reflects. “My career has been a journey that has, in many ways, come full circle.” We sat down with Thompson to discuss a career spent at the forefront of business intelligence, and how SAP Ariba’s new partnership with American Express highlights one of his core teachings: embracing collaboration to unlock the power of the ecosystem. Thompson’s own entry into the software ecosystem began in the early 1990s at professional services giant Deloitte. “Back then, process re-engineering was all the rage,” he recalls. “We were consultants helping companies figure out their business processes and how to make them more J U LY 2 0 1 9
35
efficient.” Thompson took to this prototypical form of digital transformation with even greater enthusiasm in 1995, when he moved to Seattle and was assigned to the installation of a then lesser-known business intelligence (BI) platform at Microsoft. “My boss and I later laughed about the fact that we had no idea what SAP was,” recalls Thompson. He quickly recognized the power of SAP to build connections and facilitate an interconnected business. “It was a pleasure to help companies leverage c a na da .busi ne ssc h ief. com
LEADERSHIP
“ It was a pleasure to help companies leverage software and technology to change the way they did things, to drive true collaboration” — Sean Thompson, SVP, Business Network and Ecosystem SAP Ariba and SAP Fieldglass
software and technology to change the way they did things in order to drive true collaboration,” remembers Thompson, who wasted no time in telling his boss that he wanted to fully commit to working with SAP’s products, later going on to run Deloitte’s Northwest SAP practice. The years that followed saw Thompson work with multinational market leaders like Microsoft, as well as serving on the boards and executive teams of groundbreaking startup firms. Always passionate about the potential applications of new
36
technology, in 2012 he co-founded a natural user interface company called Nuiku with Barry Padgett, a longserving executive at Concur (bought by SAP in 2014 for $8.3bn). Thompson and Padgett quickly became friends and collaborated over the next few years on natural language interfaces for sales ERPs. “Think of it as Siri for Salesforce,” explains Thompson. The mass adoption of the smartphone and the introduction of automated natural language assistants into products like the iPhone signalled to Thompson a new cycle of technological adoption. “We started a company that was based J U LY 2 0 1 9
CLICK TO WATCH : ‘DELOITTE STREAMLINES ITS PROCUREMENT PROCESSES AS PART OF ITS DIGITAL TRANSFORMATION’ 37 on the concept of taking that paradigm
I got a call from my buddy Barry, who
to the enterprise. My experience
had just been appointed as president
installing SAP systems and being
of the SME business unit at SAP,”
at Microsoft was always that in the
recalls Thompson. “He said ‘there’s
enterprise, when we go to work,
nobody that I would want to go on this
the experience we have with the
adventure with more than you’.
applications we use at work is not
Thompson joined as CRO, and just over
nearly the delight that we have as
18 months later, the pair moved over to
a consumer,” he says. Padgett and
SAP Ariba. “That’s where the job came
Thompson built up Nuiku for five years
full circle. Procurement is near and
before selling the company, but their
dear to my heart, because it’s where
collaboration was fated to continue.
I originally fell in love, in terms of the
“In the spring of 2016 I, after the sale of Nuiku, I was thinking about what the next project was going to be when
concept of saving money to fund core systems implementation.” The move couldn’t have come at c a na da .busi ne ssc h ief. com
LEADERSHIP
a better time for Thompson, who sees SAP Ariba as at the forefront of two major trends in the business intelligence space: data and collaboration. “At Ariba, we think a lot about it. We have a treasure trove of data – $3trn in annual commerce that flows through us. The technology is available, the computing power is available, we have the data and now, all of a sudden, I think we are poised to provide businesses with insight into enterprise performance that is similar to the way Google provides insight into 38
search,” he enthuses. “It’s just a matter of good old-fashioned execution.” The power of the information revolution, Thompson believes, lies in its ability to further facilitate collaboration between enterprises and customers, enterprises and one another, buyers and suppliers – the entire ecosystem. “In the past, collaboration was point-to-point. Now, at Ariba, we’re approaching this as a network to achieve true business collaboration. We’re breaking down the silos and fostering more collaborative relationships, in terms of being able to have companies interact with each other, as if they were within J U LY 2 0 1 9
the same four walls – within the same firewall, if you will,” he explains. Thompson and Padgett have, over the past 18 months, changed the course of SAP Ariba, redirecting the business towards the promotion of the business ecosystem. “The Ariba you knew a year ago is very different to the Ariba of today,” he says. “We’ve changed our strategy and culture, helping everybody within the company understand that if we are open and embrace the third party ecosystem and the creative genius that can come from that, amazing things can happen.” One of the first steps that Ariba is pursuing in its campaign to unlock the power of the ecosystem is rebalancing the buyer-supplier relationship. “The buyer has become the hero, to a point where we’ve spent so much time building value for them that we’ve left the supplier on the side of the road with their suitcase wondering what their value is to the network,” admits Thompson. As such, improving value proposition for the supplier is a key element of Ariba’s strategy. Announced in April 2019, SAP Ariba’s new partnership with American Express will, among other things, work c a na da .busi ne ssc h ief. com
39
LEADERSHIP
to rebalance the buyer-supplier relationship throughout the procurement process. “In the corporate space, the single use account virtual card is a very compelling offering, which allows a buyer, through integration of Ariba and American Express’ systems to generate a single use account authentication or authorization key from the virtual card provider,” explains Thompson. “The buyer is able to leverage virtual card protection and efficiency. At the time of purchase order (PO), the buyer creates a PO, attaches 40
their virtual card, and the supplier pays using that.” Value is created for the supplier as they are paid at the time of order, rather than having to invoice
“ We’re breaking down the silos and fostering more collaborative relationships” — Sean Thompson, SVP, Business Network and Ecosystem SAP Ariba and SAP Fieldglass
the buyer, which saves time and reduces error. Thompson views the American Express partnership as a collaborative win that is enabled by, and will enable, further data based digital projects. “About half of our buyers are also American Express corporate card users,” he says. “On the supplier side, there’s also an opportunity for us to offer loans and financing to suppliers through our Amex partnership. The more we know
J U LY 2 0 1 9
C O M PA N Y B I O S
SAP Ariba is how companies connect to get business done. On the Ariba Network, buyers and suppliers from more than 3.8mn companies and 190 countries discover new opportunities.
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com
41
about suppliers, the more the financial
play a unique role, if you will, in that
institutions like American Express
open ecosystem. Ultimately, it’s about
knows, we will be working with them
choice. Buyers will be able to choose
to offer financing opportunities for
the financial institution that they want to
suppliers outside of the normal
work with and, if we do it right at Ariba,
payment process.”
we’ll be able to shape the ecosystem
Going forward, Thompson is
around us for years to come.”
confident that SAP Ariba’s early embrace of the open ecosystem will see it in good stead. “We will have an open approach and the different relationships that we have will each c a na da .busi ne ssc h ief. com
Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter
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TECHNOLOGY
44
HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR? Vivek Wikhe, Domain Expert of Retail and Supply Chain at LatentView Analytics, discusses the future of supply chain management and the impact of digital transformation WRITTEN BY
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VIVEK WIKHE
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TECHNOLOGY
A
ll over the world, supply chains are disrupted by the advance of technology and leaders must rethink their strategies.
Business Chief caught up with LatentView’s Vivek Wikhe to find out how organisations can make the most of digital disruption to best serve the end consumer. Why must companies rethink their supply chain strategies in the age of digital transformation? There are major cascading factors contributing to companies rethinking their supply chain strat46
egies in the age of digital transformation. First, the demand side has changed rapidly. Today, there are more channels and touchpoints than ever before, which all serve different needs along the customer journey. This has resulted in a migration away from the way that demand has traditionally been generated. Invariably, it is the ability to service and optimise these new channels that allows companies to differentiate and gain a competitive edge. Organisations are no longer sure of the costs and margins in each channel that touches consumers, and are still figuring out which channels they need to service and promote in the digital era. Ensuring profitable margins across channels requires a well thought out supply chain strategy according to a company’s customer base and an J U LY 2 0 1 9
“ Ultimately,all organisations across industries must rethink their supply chain strategies as the digital era continues moving towards the diversification of channels” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics
47
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TECHNOLOGY
48
optimised channel mix. Ultimately, all
a specific brand, which is easier to
organisations across industries must
predict based on demographics, (for
rethink their supply chain strategies as
example, purchasing Nike sneakers),
the digital era continues moving towards
they will typically begin their shopping
the diversification of channels.
journey by searching online for certain
 What are some immediate steps that need to be taken in order for
attributes and features that they want (“stylish white sneakers�). Organisations need to tune their
companies to maximise profitability
supply chains to reflect this shift. Instead
in their supply chains?
of serving a target market based on
Buying behavior is moving towards more
demographics, supply chains must take
nebulous attribute-based purchases.
into account a larger market brought
Instead of consumers focusing on
about by the digital era. Supply chains
J U LY 2 0 1 9
should evolve to fulfillment chains, which
supply and demand, supply chains need
can serve multiple channels profitably.
to get increasingly more agile and more
The first step to maximising profitability
in tune with short-term planning. Even
is to get a clear picture of order costs
traditional industries need to stay abreast
incurred in every channel. This is a com-
of quickly developing consumer trends
plex problem with multiple, co-depend-
and desires. For example, food and
ent factors. It gets complex because
groceries are a traditional and staple
the costs need to be predicted to ensure
category. However, today, there are
an enterprise has a profitable order
trends in food that pop up quickly, giving
fulfillment scenario. The analysis of the
traditional consumer buying behavior
cost structure and visibility to them is
a very short-term strength. Many cate-
the first step to maximise profitability
gories overall are moving towards the
for supply chains.
shorter-term life cycles, and enterprises need to move to reflect that as well,
What are the challenges that enterprises face as they move to digitise
and become leaner and more agile. Â
their supply chain, and what are
How does having better data strategy
a few best practices to overcome
create greater supply chain efficiency?
these challenges?
So much of demand is influenced by
The main challenge is that due to the
what consumers are seeing online - you
changing nature of modern consumer
essentially can predict what consumers
c a na da .busi ne ssc h ief. com
49
TECHNOLOGY
are going to buy by having strong insights into data on what influences customer behavior. For example, a few years back, Amazon became famous for predicting demand. In fact, they were so good at it, that they were shipping goods before the customer even purchased them. All companies need to have a view of the latest technology for predicting customers purchasing behavior. As buying cycles continue to grow shorter, there is no longer time to procure and supply a product without advance 50
preparation. Ultimately, in order to not miss out on profitable opportunities, and to have a more focused organisation of the supply chain, a modernised data strategy that involves predictive analytics for both the supply and demand sides is necessary. A ‘better’ data strategy is one where enterprises have a single view of all data points and these are integrated to respond in sync with unit changes. An integrated data strategy helps move the fulfillment chain in three phases - increasing visibility thereby reducing variability and finally increasing velocity. All these three phases require a different yet integrated data strategy. J U LY 2 0 1 9
As enterprises continue through their digital transformation journeys, how are innovations in AI and predictive technologies specifically playing a role? Most enterprises on digital transformation journeys go through several stages, as they learn to apply machine learning and artificial intelligence. These stages are: descriptive, prescriptive, and predictive. In the first, you can only see what the data does, and it can help inform decisionmaking processes. In the second stage, you can employ an AI technology to gain prescriptive intelligence to solve specific problems or gain insight into definitive opportunities - for example, AI can identify demand per channel, or identify which models are the most profitable. In the third and final stage, you reach an exalted state of sorts wherein the ability to predict trends in the data becomes so accurate that it’s possible to preempt action around the insights. This final stage will lead to a much more focused and streamlined supply chain, and allow for comprehensive preemptive planning for all relevant supply and demand factors. c a na da .busi ne ssc h ief. com
51
TECHNOLOGY
52
Are there any particular industries
What do you see as the biggest
which have the best opportunity to
trends going forward related to
gain a competitive advantage by
emerging technology in AI and the
adopting this technology before the
supply chain?
rest of their peers?
Going forward, I see a number of ways
I can’t think of any industry that should
that emerging technology will continue
not be investing in emerging technology
to influence the supply chain. The next
solutions. In fact, it is no longer really
step in using data in the supply chain
a question of competitive edge, but
will be merging all sources of customer
rather of survival. If you’re not investing
data, including social media data. Down
in emerging technology and at least
the line, we’ll be looking at more IoT
exploring opportunities with AI, you’re
data. In coming years, we expect to see
making yourself vulnerable to other
the rise of the intelligent home assis-
companies in the field that may have
tant as the first point of understanding
higher efficiency and greater analytical
consumers and the supply side. Informa-
abilities (and thus a greater competitive
tion on demand signals will no longer
advantage) in their supply chain.
be coming directly from consumer
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“ The main challenge is that due to the changing nature of modern consumer supply and demand,supply chains need to get increasingly more agile and more in tune with short-term planning” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics
53
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TECHNOLOGY
“ I can’t think of any industry that should not be investing in emerging technology solutions. In fact,it is no longer really a question of competitive edge, but rather of survival” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics 54
data, but rather personal assistants inside the home. On the logistical side, I expect we’ll also be seeing a greater ability to deal with smaller markets. Once analytics helps optimise supply chains to a greater degree, things such as home delivery models will become profitable, even for smaller markets and chains. The overwhelming trend will be intelligent assistants embedded in various enterprise chains interacting with each other to ensure regular chores are carried out without constant human intervention J U LY 2 0 1 9
Are there any recent projects LatentView Analytics has worked on related to supply chain analytics that you can discuss? Currently we’re working on several interesting projects. We’re helping some big name retailers understand how in an omni-channel environment they can understand their net cost for every consumer channel. There are certain aspects where it becomes not just a supply chain solution. Once you understand the optimal channel mix, you also have to take into account downstream promotion, and make the data actionable and profitable. We’re also doing some work in supply chain and predictive analytics. In the US market, over the past two years, there have been more occurrences of incorrect delivery windows, due to shortages of supply. This creates both a greater cost to the company, as well as operational inefficiency. We’re now looking at a predictive model that compiles and analyses data to help more accurately predict arrival times of packages for consumers.
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55
PEOPLE
n i T N A H P E L E e Th : m o o al r 56
t i g i d e th d e n n unpla e m i t n w do
Mark Homer, VP Global Customer Transformation, ServiceMax , discusses how businesses must improve asset management and servicing to reduce unplanned downtime pressure due to a growing reliance on automation and digital transformation
WRITTEN BY
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MARK HOMER
57
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PEOPLE
A
s industrial automation continues to digitize, one area in particular is becoming a critical area of concern–
unplanned downtime. The shift to outcomebased business models, equipment assets becoming more sophisticated and connected,
and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is now a strategic priority in the digital age. Take power as an example. In the US, generating units are unavailable on average for 15% of 58
the time due to outages and maintenance. In fact, 6% of the time they are unable to meet demand at all. And the Energy Information Administration highlights that a further 6% of electricity is lost in transmission and distribution due to both technical factors and outages. The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organization’s digital maturity, and a core part of their transformation journey. J U LY 2 0 1 9
“ The growing reliance on automation is already widening performance gaps” — Mark Homer, VP Global Customer Transformation, ServiceMax
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59
PEOPLE
According to a recent Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organizations anywhere from $50k-$150k per hour for say, a medical device company, and up to $2m for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses
60
to be $260,000 an hour). The research also revealed high levels of asset estate ignorance across organizations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement. In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as J U LY 2 0 1 9
CLICK TO WATCH : ‘SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEW’ 61 a possible impact of suffering a high-
industrial digital strategies. Key to this,
profile incident or disaster. Across all
is an understanding of and investment
sectors, around one in ten admitted
in field service management and asset
their company would never recover
performance management capabilities.
from such critical incidents and would
According to Vanson Bourne, eight
ultimately cease to exist. Nobody wants
in ten companies have already
to be blindsided with those sorts of
recognized this, at least that digital
numbers. But what are companies
tools can improve visibility of assets
doing about it?
and help eliminate unplanned down-
The research hints at a tipping point
time. Around 50% of companies
in recognition of the problem and
confirmed they plan to invest in field
planned investment to address it. Over
service and asset management
time, zero tolerance and zero unplanned
technologies in the next three years,
downtime will become the norm as
while 72% of firms claim that zero
companies develop and invest in their
unplanned downtime is now a number c a na da .busi ne ssc h ief. com
PEOPLE
one priority. So, the message is sinking in at least. The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predic62
tive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable
within the next two years and you have a recipe for transformation. We often hear the phrase, ‘you cannot
and digitally-empowered service tech-
account for human error’ but that seems
nicians to ensure the smooth running
illogical in today’s connected world. We
of assets will go a long way to making
have the technology to not just account
this happen. A digital twin of physical
for human error but to eradicate it. The
assets will help considerably here, and
internet of things with the proliferation
the research has revealed that around
of affordable and reliable sensors is
54% of companies are planning
changing the way in which we can view,
to invest in a digital twin by 2020.
manage, service and support technol-
Throw-in the fact that field service
ogy, processes and any physical object.
is expected to become a primary
By mirroring a process, product or
revenue driver for most businesses
service into a virtual world, we can
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“ Digital transformations do not automatically improve control and visibility” — Mark Homer, VP Global Customer Transformation, ServiceMax
63
create environments in which machines
turbines. Easy access to this combination
can automatically analyse performance,
of deep knowledge and intelligence
warn of impending issues, identify
about your assets paves the road to
existing or potential errors and even
wider optimization and business
suggest part upgrades or changes to
transformation.
procedures to make them more efficient.
Digital twin technology spans across
This is the digital twin idea. As a con-
all industries where the value is in assets
cept, it’s been around for a while (NASA
and more generally complex systems.
used it on early space missions) but the
Its ability to deliver early warnings,
emergence of IoT has made it a com-
predictions, and optimization is fairly
mercial reality. Digital twin eliminates
universal. In time, I think we’ll see the
guesswork from determining the best
concept of a digital twin to be applied
course of action to service critical
to human beings as well, playing a sign-
physical assets, from engines to power
ificant role in healthcare. c a na da .busi ne ssc h ief. com
PEOPLE
“ Digital twin technology spans across all industries where the value is in assets and more generally complex systems” — Mark Homer, VP Global Customer Transformation, ServiceMax
64
However, just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions. What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance. The digital twin can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be J U LY 2 0 1 9
achieving now and its likely end of life date, when it would be predicted to be less efficient. This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading. Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance. It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas. It’s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.
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S U S TA I N A B I L I T Y
66
Social impact: balancing profit and purpose Natasha Mudhar, Global CEO of Sterling Group and The World We Want, discusses why CSR should be a company-wide initiative rather than just ticking a box WRITTEN BY
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NATASHA MUDHAR
67
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S U S TA I N A B I L I T Y
68
W
hile most corporates and
CSR is a means for companies to
businesses have imple-
bring benefit to themselves and employ-
mented a social impact
ees whilst also benefiting society. While
strategy, many are typically incongru-
businesses are becoming increasingly
ent with the company’s profitability
aware of the benefits of having such
and growth objectives, and are often
a strategy, they are still lacking in aware-
rendered obsolete. Effective social
ness as to how deep a social impact
impact strategies need to be ingrained
strategy needs to be embedded in
in the very fabric of a company’s
a company and why it needs to be
corporate DNA, and not just a tick in
embraced in this way.
the box. Companies are still failing to
A global study by the SEFORIS project
grasp how having an effective social
(the world’s largest study of social
impact strategy is key to long term
enterprises to date) has revealed how
growth and viability.
companies delivering inclusive growth
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69
by implementing a social impact strategy
purpose alongside each other. In order
are also seeing rapid growth in revenue.
for a company to truly thrive, it needs to
Effective social impact strategies are
be both profitable and purposeful
designed to improve a company’s overall
simultaneously. An organization that is
mission, not just its brand identity. Not
both profit and purpose driven provides
to be confused with marketing or
mobility to its employees and resourc-
corporate philanthropy, social impact
es in a way that is incomparable. For
strategies provide a concrete plan that
a business to grow, purpose needs to
has quantifiable business outcomes
be embedded in its core. Companies
combined with a measurable and defin-
need to do well by doing good.
itive societal impact. It is no longer enough to be just profit
In order to address this, companies must fully understand how their employ-
driven. What makes companies stand
ees can be one of their biggest assets
out is their ability to place profit and
to expand their social impact footprint. c a na da .busi ne ssc h ief. com
S U S TA I N A B I L I T Y
70
“ CSR is a means for companies to bring benefit to themselves and employees whilst also benefiting society” — Natasha Mudhar, CEO, Stirling Group and The World We Want
Exhibiting a strong social impact strategy not only enhances trust among the public and makes the company attractive to prospective employees but also results in a more engaged workforce, geared to generate not only revenue, but valuable channels for marketing and public relationships. The people of a business provide the most genuine representation of a company’s brand and value, organizations need to remember this when considering social impact.
J U LY 2 0 1 9
Employees are much more engaged
and are not measurable against an
and satisfied when given the opportu-
embedded, well-implemented social
nity to perform impactful work. This will
impact strategy, focusing on the day-
result in a stronger feeling of fulfilment
to-day contributions towards community
and purpose amongst employees and
engagement as opposed to the occa-
essentially enhance a positive impact
sional donation or charitable event.
in the workplace. Studies have shown
Scaling up social impact needs to be
how corporate social responsibility has
a multi-sector process. Effective cross-
been highlighted as one of the key most
sector collaboration will enable new
important drivers of employee engage-
techniques and approaches to be
ment, and engaged employees are
deployed to achieve better social
effective workers and drive results.
outcomes. The combination of public,
Weak outreach efforts to the community should no longer be acceptable
private and social sector collaboration can address complex social challenges
E XE CU T I VE PRO FI LE
Natasha Mudhar Natasha Mudhar is an international communicator and director working on some of the most socially relevant global campaigns. She is also Global CEO of Sterling Media, the multi-disciplinary, international business consultancy with a robust communications backbone, established in 1995. Representing SMEs, FTSE 100 companies including billion-dollar hedge funds, as well as disruptors, innovators and high-profile celebrities, Mudhar’s insight and global understanding in the realm of business, brand development, market growth and entry strategies has assisted major players in aligning their vision with their business strategies.
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S U S TA I N A B I L I T Y
“ Weak outreach efforts to the community should no longer be acceptable” — Natasha Mudhar, CEO, Stirling Group and The World We Want
72
by pulling resources from various players to ensure the improvement of effectiveness and efficiency of the services companies can offer to the public through joint efforts. Too often public, private and social sectors are segregated and siloed, with their resources fragmented, they need to work together towards common goals and enable mutually desired social outcomes. Who does the responsibility lie with? It is up to the company’s leadership to ensure that social impact is at the top J U LY 2 0 1 9
of the business agenda. They must ensure that an effective strategy is embedded into the company’s day-today workings, prioritizing long-term value in a way that mutually benefits both employees and society at large. CEOs must outline clear objectives and purpose of the company beyond financial touchpoints, defining their values. It is important that these guiding values permeate every decision-making process, from environmental footprint to social impact to investment decisions. Businesses must consider social impact as a company wide initiative and not just a tick in the box. Otherwise, they risk losing the trust of the public which can be extremely damaging in the long term. In this age of heightened transparency and increased accountability, companies cannot afford to leave this issue unaddressed. The consequences in doing so can be profound.
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73
CITY FOCUS
HALI
City Focus 74
Business Chief takes a deeper look at Canada’s Ocean City, and examines three industries where the Nova Scotian capital is making its mark WRITTEN BY
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LAURA MULLAN
IFAX c a na da .busi ne ssc h ief. com
75
C I T Y F O C U S | H A L I FA X
H
ome to a bustling waterfront and historic heritage buildings, as well as a thriving arts, cultural and culinary scene,
Halifax is by all means a capital on the rise.
In its early days, the maritime city made its mark on the world as an Atlantic trading hub it has delighted visitors with its unique charm ever since. American travel website TripAdvisor seems to agree; in its 2018 Travelers’ Choice Awards, Halifax was 76
named as one of the Top 10 global destinations on the rise. Yet, whilst the Nova Scotian capital is set to become a promising travel destination, that’s not all it has to offer. With local businesses leading the way in areas such as marine defence, fisheries and data analytics, Halifax has also proved to be a burgeoning business hub. Halifax has plenty to offer businesses looking to get a foothold in the Canadian market, with its strategic geographic location meaning the city is near both the European and US markets; it boasts a highly skilled and educated workforce; and on top of this, businesses can be sure of competitive business costs and generous R&D tax incentives. To find out more, Business Chief examines three of the J U LY 2 0 1 9
77
‘ Not only has Nova Scotia’s coastline has been shaped by the ocean, its people and businesses have too’ c a na da .busi ne ssc h ief. com
C I T Y F O C U S | H A L I FA X
78
“ Halifax is simply a great place to establish a business. Building a business here makes sense” — Cal Gosse, Senior Location Executive, IBM Canada
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CLICK TO WATCH : ‘TOP 10 REASONS TO VISIT HALIFAX IN 2019’ 79
city’s most prosperous industries to
tions of ocean-related PhDs in the
dig deeper into Canada’s so-called
world. The ocean economy is a vital
‘Ocean City’.
one for the region: it provides a key source of food, energy, minerals,
MASTERING THE OCEANS
health, leisure and transport which
Not only has Nova Scotia’s coastline
hundreds of millions of people
been shaped by the ocean, its people
depend upon. It also carries financial
and businesses have too. Nova Scotia
heft too: including spin-offs, ocean-
Business Inc. says that an impressive
related industries generate
one-in-five jobs in the province are
approximately $4.5bn, , accounting for
connected to the ocean, with the
12.2% of Nova Scotia’s GDP. It’s no
maritime industry employing almost
wonder that Nova Scotia and Atlantic
35,000 local people. Nova Scotia also
Canada were chosen as the epicenter
boasts one of the highest concentra-
of Canada’s Ocean Supercluster – c a na da .busi ne ssc h ief. com
C I T Y F O C U S | H A L I FA X
a federally supported initiative that
Chris Lowe Planning and Manage-
aims to nurture ocean start-ups. Lots
ment Group, found that the Port of
of notable maritime companies call
Halifax’s operations provides almost
Halifax home but the city’s aptitude
$2bn in economic output every year.
is perhaps best encapsulated by the
Speaking to the American Journal of
Port of Halifax, a major economic
nsportation (AJOT), Karen Oldfield,
driver for both the city and the
President and CEO of the Halifax
province. Indeed, the latest eco-
Port Authority, said that this “reflects
nomic impact report produced by
the incredible hard work and
80
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dedication of the many organizations
tuna, the region is home to 178
that make up the Port of Halifax.”
processing companies that offer access to more than 50 species
A MECCA FOR SEAFOOD LOVERS
of high-quality fish and seafood.
Nova Scotia is often touted as Cana-
Leading seafood exporters in Halifax
da’s top seafood exporter. In 2018,
include Biscay Seafoods Canada,
the region recorded more than $2bn
Breakers Fish Co., Fisherman’s
in exports to over 75 countries.
Market International Incorporated
From Atlantic halibut to herring or
and Merex Incorporated.
81
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C I T Y F O C U S | H A L I FA X
A DIGITALLY-SAVVY CAPITAL Like many cities across the globe, Halifax has worked hard to keep up
1 in 5 jobs in Nova Scotia are connected to the ocean
with the blistering pace of innovation and is now reaping the benefits. Indeed, some of the biggest titans in the technology space are based in Halifax, including IBM, Capgemini, CGI, Citco and DHX Media. “Halifax is simply a great place to establish a
22%
students enroll in ICT related fields at Nova Scotia Universities
business. Building a business here makes sense,” Cal Gosse, Senior Location Executive of IBM Canada 82
told Halifax Partnership. Jay MacIsaac, Senior VP, Atlantic Canada for CGI, also attested to the region’s IT prowess. Speaking to Halifax Partnership he said: “For CGI, Nova Scotia has proven to be a very sound decision regarding the location of our Atlantic Global Delivery Centre, serving the business needs of our clients from around the world.” But why have these technology powerhouses found Halifax to be such an inviting location? It may be partially due to the regions highly educated workforce: Nova Scotia’s universities have 22% more students enrolled, per capita, in ICT related field than the Canadian averJ U LY 2 0 1 9
Port of Halifax provides
$2bn
economic output every year
“ For CGI, Nova Scotia has proven to be a very sound decision regarding the location of our Atlantic Global Delivery Centre, serving the business needs of our clients from around the world” — Jay Maclsaac, Senior VP, Atlantic Canada for CGI
age and more than two-thirds of Halifax’s working age population has a trade, college, or university designation. On the other hand, it may also be due to the city’s competitive costs: Halifax has the 6th lowest operating cost for digital industries among competing jurisdictions. Elsewhere, businesses may be wooed by Canada’s compatible data laws: the country’s data privacy laws are compliant with Europe’s meaning international companies can easily store data securely in North America. With all this in mind, Halifax is quickly proving to be the perfect location for any global technology operation. c a na da .busi ne ssc h ief. com
83
T O P 10
84
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TOP 10
Manufacturers in the US Business Chief counts down the top 10 manufacturers in the US, according to Forbes’ Global 2000 ranking of the world’s largest public companies WRITTEN BY
WILLIAM SMITH
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85
T O P 10
86
10
PepsiCo
Forbes list 86
PepsiCo traces its history back to 1898, when Caleb Bradham first formulated Pepsi-Cola for sale in his North Carolina pharmacy. Today, the company is responsible for the production of its eponymous cola as well as beverage brands such as Mountain Dew and Gatorade, and food brands like Lay’s and Doritos. 86th on Forbes’ list, the company’s revenue reached $65bn, with profits totalling some $12.6bn in 2018.
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87
09
DowDuPont Forbes list 81
Formed from the 2017 merger of American stalwart chemical companies Dow Chemical and DuPont, DowDuPont is the world’s largest manufacturer of chemicals. Historically, the two companies have pioneered innovative materials such as nylon, in DuPont’s case, and styrofoam in Dow Chemical’s. With its 2018 revenue at $86bn and profits of $3.8bn, it came 81st on Forbes’ list.
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T O P 10
88
08
United Technologies Forbes list 78
Multinational conglomerate United Technologies is active across a range of manufacturing areas, from aircraft engines to air conditioners. Originally a pure aircraft manufacturer, its diversification was reflected in its 1974 name change away from United Aircraft. They placed 78th, with revenue totalling $66.5bn and profits reaching $5.3bn. Subsidiaries include the Otis Elevator Company, HVAC specialist Carrier and Collins Aerospace.
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Reimagine the impossible
Bring together people, data, and processes to transform your organization. With the latest in AI technologies, you can engage your customers in new ways, empower your employees more than ever before, and optimize operations to become an industry leader. Start your digital transformation today.
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07
Cisco Systems Forbes list 74
A manufacturer of networking and telecommunications hardware, Cisco is the youngest company on this list, having been founded in 1984. It counts among its clients service providers, small to medium businesses, and enterprise customers such as corporations, government agencies, utilities and educational institutions. A pioneer of networking technology, the company states that 85% of Internet traffic travel across its systems. It was 74th on Forbes’ list, with revenue of $50.8bn and profits totalling $12.9bn.
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91
06
General Motors Forbes list 56
The largest American automotive manufacturer, General Motors came in at 56th on Forbes’ list. Responsible for iconic US brands such as Buick, Chevrolet and Cadillac, the company is headquartered in America’s Motor City, Detroit, along with its rivals Ford and Chrysler. Possessing by far the largest revenue of companies on this list at $147bn, they made profits of $8.1bn in 2018. The company has achieved something of a rebirth under the leadership of CEO Mary Barra, after its bankruptcy in 2009.
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05
Pfizer
Forbes list 54
Pharmaceuticals giant Pfizer is based in New York City, and oversees the development and production of medicines and vaccines. Some of their better known drugs include Atorvastatin and Viagra. With a revenue of $53.6bn and profits of $11.2bn, the company ranked 54th worldwide. Founded in 1849, in late 2018 the company announced it was merging its consumer healthcare division with that of British pharmaceuticals company GlaxoSmithKline.
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SAP runs its SAP HANA® platform on Lenovo. Let Lenovo run yours, too.
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Different is bet
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04
Procter & Gamble Forbes list 53
Consumer goods manufacturer Procter & Gamble specializes in a broad range of products for the home. From personal care to cleaning products, its brands include detergents like Tide and Odor eliminators like Febreze. The company was founded back in 1837 in Cincinnati, where it is still headquartered. It made it to 53rd on Forbes’ list. In 2018, their revenue and profits reached $66.9bn.
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95
03
Boeing
Forbes list 49
The Boeing Company is the United States’ largest player in the aerospace industry. A defense contractor as well as a civilian manufacturer, the company’s designs range from aircraft to satellites. Founded in Seattle in 1916 and named after its founder, William Boeing, the company is now based in Chicago, Illinois. According to their figures, they employ more than 153,000 people across 65 countries. They placed in 49th position, with profits of $10.5bn from a revenue of $101.1bn.
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T O P 10
02
Intel
Forbes list 44
Silicon Valley’s Intel is well known for its manufacture of semiconductors, and the company’s processors can be found in most personal computers, alongside those
96
of their rival AMD. Unlike AMD, the company fabricates its own designs rather than outsourcing to semiconductor foundries, and also fabricates designs for others. Founded in 1968, the company’s co-founder Gordon Moore is well known as the author of Moore’s law regarding the doubling of transistors on a microchip every two years. It was ranked in 44th place, with revenue of $70.8bn and profits of $21.1bn.
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T O P 10
01
Johnson & Johnson Forbes list 37
Founded in 1886 in New Brunswick, New Jersey, Johnson & Johnson is a multinational pharmaceuticals and medical devices producer. They are also known for
98
their consumer products such as Neutrogena and the Johnson’s baby brand. 37th on Forbes’ global list, their revenue reached $81.6bn in 2018, with profits totalling $14.7bn. The company remains headquartered in the city of its founding, and describes itself as employing more than 130,000 people across the globe.
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VALUES DRIVING CASHCO FINANCIAL’S DIGITAL TRANSFORMATION
100
WRITTEN BY
HARRY MENEAR PRODUCED BY
JAKE MEGEARY
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CASHCO FINANCIAL
Raymond Wilson, COO of Cashco Financial, discusses the company’s five core values and how they are driving the digital transformation of its customer journey
T
oday, more than 30% of Canadians are living from paycheque to paycheque. The number of people in debt is rising too,
with the Bank of Canada reporting in May 2018 that the average Canadian typically owes around 102
CA$1.70 for every dollar they own. Canadians are not just struggling financially: according to a report by NBC, financial pressure and consequential stress can both directly and indirectly affect mental and physical health. Millions of underbanked Canadians are in need of banking and money management services, of short-term loans to make it to the next paycheque, and of long-term services to nurture and support their aspirations. The idea of Cashco has been rooted in a number of businesses founded by the company’s CEO, Tim Latimer. Cashco Financial as it exists today has been around for a decade delivering alternative financial services to the citizens of British Columbia, Alberta, Saskatchewan and Ontario, both through brick and mortar and online – providing over 140,000 clients with long and short-term personal J U LY 2 0 1 9
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CASHCO FINANCIAL
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“ We work hard to make sure these are living, breathing values embodied throughout the organization” — Raymond Wilson, COO, Cashco Financial J U LY 2 0 1 9
loans, cheque cashing and, as of 2017 in Alberta, banking services. “Over the course of our history our business model has continued to evolve, at a time we were focused solely on providing access to payday loans, then added and evolved to installment products, and now we’re focused on bringing banking services to our clients. There isn’t a one size fits all solution to our clients banking needs so we work to offer banking-like products that can offer support to
CLICK TO WATCH : ‘CASHCO MOM’S REALITY’ 105
people that can’t get help anywhere
clothe the both of us,” he recalls.
else,” says Raymond Wilson, Chief
“I really feel passionate about the
Operating Officer (COO) at Cashco.
subprime loans market because I can
Wilson, who has served in his current
connect with the customers. There
role for three years, is able to bring
were plenty of days growing up when
a powerful sense of empathy to the
there was nothing in the fridge. I know
company’s relationship with the numer-
where they’re coming from.”
ous underserved families and individu-
Cashco serves its clients by working
als across the country. “I grew up in a
tirelessly to embody its five core
single parent home; my mother raised
values: Respect the vision, Embrace
myself and my brother, and there were
Can I, Live the Golden Rule, Own the
many times I could see the stress on
Results and Communicate Honestly.
her face as she was trying to feed and
The core values set the expectations c a na da .busi ne ssc h ief. com
CASHCO FINANCIAL
106 for staff on how Cashco employees
commitment to them. “At the time, it was
behave and treat each other. “We work
transformational for our business, today
hard to make sure these are living,
it means we can make better decisions
breathing values embodied throughout
on affordability and support our clients
the organization,” says Wilson. “The
need in order to help them maintain a
organization moves quickly, and we
positive relationship with their money.”
have a big job to do. If we don’t have
That technology now needs to be
clear expectations of ourselves and
monitored and adjusted continuously
the people around us, it’s very hard
to ensure that, first, clients keep moving
to do what we do every day.”
along their credit journey, and second,
Over the last 5 years Cashco
that Cashco builds a sustainable
introduced a decision engine that takes
business that can be around for many
all the data feed into it and works to
years serving the underserved and
make better predictions on client’s
underbanked. This technology is heavily
likelihood of honoring their financial
based on artificial intelligence/machine
J U LY 2 0 1 9
learning that speeds up the delivery
he says. The company’s efforts range
and removes friction from the client’s
from simple steps, like attaching an
journey with Cashco.
employee’s picture to an email to
One of the largest challenges that
humanize the interaction for the client,
Wilson recognizes is the preservation
to the construction of an entirely new
of the empathetic, personal experience
portal to allow for easy access to
as Cashco increases its digital offerings.
account information and Cashco’s new
“We know we can be successful when
banking services. Rather than cold
the client sits down at the desk and we
functionality that widens the distance
have a conversation. But, as we move
between Cashco and its customers,
into a more digital age, we need to start
Wilson sees the “exponential growth
looking at other ways to create those
of technological applications” as an
touchpoints and still maintain that
enabler for increasingly personalised
relationship while the client benefits
and empathetic services. “We’re
from the accessibility of digital products,”
utilizing technology to make our
E XE CU T I VE PRO FI LE
Raymond Wilson Raymond Wilson has been with Cashco Financial for 10 years where he started as a VP managing the branch network. In 2016 he was promoted to Chief Operating Officer and now oversees all operations. He has worked in this market for almost thirty years and is very passionate about what Cashco stands for and the people they serve. Wilson has four beautiful children and has been married to his wife Leslie for 13 years. He is also an avid golfer and enjoys the outdoors with his family.
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CASHCO FINANCIAL
108
140,000 Clients served
2009
Year founded
HQ
Edmonton, Alberta Canada
J U LY 2 0 1 9
customer journey as painless as possible,” he explains. In particular, Cashco is employing analytics and artificial intelligence (AI) to both empower the front end of its business and augment its back-end decision making. “We use AI for our loan decisioning, which we’re constantly tuning to make more efficient, and twinning with our analytics to create a higher loan completion and closing rate,” says Wilson. Cashco has also made the decision to build its AI in-house. “Our CEO has the entrepreneurial spirit,” Wilson explains. “With that comes quick change; this way we don’t have to wait to make alterations the way we would if you bought something off the shelf. We acknowledge that there’s a cost to doing things in-house, but it allows us to be much more agile.” AI also plays a critical role in Cashco’s latest project: applying decision making to the loan recovery process. “We’re working with another company to bring AI into our recovery and collections department,” says Wilson. “If clients are unable to make a payment, there’s a reason for that. AI can help us understand not only how to best communicate with people, but how c a na da .busi ne ssc h ief. com
109
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CLICK TO WATCH : ‘CHRISTINA’S REAL WORLD STORY’ 111
to help them ensure they can complete their loans with us.” To maintain relevancy Cashco has recently mapped out the strategic direction for the next three years, identifying the necessary business decisions in order to compete in their space – knowing the space continues to grow and demand is increasing. “A digital Cashco is imperative, and we have it centered around the idea of digital client-care services,” says Wilson. “Overall, our digital ecosystem
“ Respect the Vision, Embrace Change, Live the Golden Rule, Own the Results and Communicate Honestly” — Raymond Wilson, COO, Cashco Financial
is focused on leveraging our data, and c a naa da nz .busi ne ssc h ief. com
CASHCO FINANCIAL
CLICK TO WATCH : ‘ELISIA’S REAL WORLD STORY’ 112
advanced analytics platforms are built together so decision making is driven by the business, and AI/machine learning will be the driving factor is producing sound recommendations to guide the process.” The entire enterprise is designed to accommodate and exceed the needs and expectations of the underserved. Cashco provides relief today by making it easy to get an immediate loan regardless of current or past credit history. The company accepts its J U LY 2 0 1 9
“ We’re utilizing technology to make our customers’ journey as painless as possible” — Raymond Wilson, COO, Cashco Financial
113
clients, wherever they are on their
resilient business with a loan book of
journey. Due to the multiple solutions it
$250mn by 2021, serving underbanked
offers, Cashco is the only finance
Canadians with subprime loans, and
company that can help move clients
continue to offer meaningful banking
through the entire credit continuum to
delivered through advice-based,
achieve a better credit rating and
intimate, one-to-one relationships.”
create hope for tomorrow. Looking to the future, Cashco Financial has bold ambitions. “Our big, hairy, audacious goal is to be recognized as a new, different kind of bank by 2025,” Wilson concludes. “We’re going to build a forward-looking c a na da .busi ne ssc h ief. com
114
Enabling technology transformation to the J U LY 2 0 1 9
cloud
115
WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
JAKE MEGEARY
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INGRAM MICRO
As the technology industry evolves, Ingram Micro continues to enable digital transformation with the cloud
I
ngram Micro is an emergent leader in the global technology sector; dedicated to enabling its customers and its entire
organization to achieve technological transformation. “Technology underpins our organization and the pressure is on to get it right. To achieve a 116
competitive advantage, companies must align with the evolving landscape. Ingram Micro is well poised to meet the demands of this evolution,” says Greg Onoprijenko, Director of Cloud for the company’s Canada operations. “We’re continuously innovating to maintain relevancy for our customers and our entire organization.” As the world’s largest technology distributor, the company provides a wide array of products to its customers including laptops, smartphones, printers and IT infrastructure and services to its wide variety of customers, reaching from retail to telecommunications to value-added resellers (VARs). In Canada, Onoprijenko heads the company’s fastest-growing division: Cloud. “As customers transform their businesses and start to adopt more cloud services, their dependence on the IT channel for guidance J U LY 2 0 1 9
117
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INGRAM MICRO
118
“ Technology is extremely important to us, and there’s a lot of pressure to get it right” — Greg Onoprijenko, Director of Cloud Canada Ingram Micro
J U LY 2 0 1 9
CLICK TO WATCH : ‘INGRAM MICRO CLOUD OVERVIEW’ 119 has become increasingly critical to
backup and recovery, and communica-
their success,” he says. “This increase
tions and collaboration services.
in demand has resulted in revenue
The third unit is the Infrastructure-as-a-
growth as we develop more solutions
Service (IaaS) team. “The IaaS team is
in the portfolio and add a larger staff to
completely focused on data centre
support the demand. We’re fortunate
transformation and public cloud
to be leading an extremely profitable
infrastructure. The solutions we sell
and fast-growing business.”
within that portfolio include Microsoft
The company’s Cloud operations
Azure, Amazon Web Services, and
are divided into three business units.
IBM Cloud,” explains Onoprijenko.
The first is the Microsoft team, which
“One of the competitive advantages
primarily focuses on Office 365 and
we have in the Cloud division is just the
the associated licensing models. The
sheer breadth and depth of the team.
second unit addresses Software-as-a-
We have over 1,500 dedicated cloud
Service (SaaS), such as cloud security,
employees globally, with extensive c a na da .busi ne ssc h ief. com
INGRAM MICRO
120
industry experience. For our custom-
another clear differentiator that
ers and channel partners who need
separates it from its competitors.
guidance and advice, we have the
Ingram Micro offers a fully automated
industry’s best team to lean on,”
platform that enables cloud services
comments Onoprijenko. As Ingram
transactions with centralized dash-
Micro transforms its business model,
boards, reporting and support.
change management across the
“The platform covers any need that
company has its challenges. To
a partner may have when delivering
effectively combat these challenges,
cloud services,” he continues.
Ingram Micro’s Cloud team is continu-
“As channel partners become mature
ously providing education to ensure
and more successful in the cloud, they
that “the entire company is aligned
recognize that automation is critical to
with the cloud strategy.”
scale their businesses and that they
The company’s platform strategy is J U LY 2 0 1 9
need to have their eCommerce platform
to transact cloud services. Our global cloud service offerings make us a logical option for these companies.� As customers within the technology sector shift towards an as-a-service model, Ingram Micro is adapting its strategy. “Instead of customers buying and owning IT products, the evolution is towards everything-as-a-monthlyfee. That puts pressure on the IT channel partners to evolve and change to meet customer demands. It also puts pressure on IT distributors to change how they deliver solutions to the market. Finally, the onus is on the
E XE CU T I VE PRO FI LE
Greg Onoprijenko, Director, Cloud Canada Greg Onoprijenko is Director of Cloud for Ingram Micro Canada. He provides overall strategy, guidance and leadership for Ingram Micro’s cloud services business unit. He assumes all responsibilities of the cloud business in the Canadian market which includes sales, marketing, vendor management, and new strategic alliances.
c a na da .busi ne ssc h ief. com
121
Choose growth. Employee expectations are rising.
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vendors, who are ultimately creating these products and services to evolve,� reveals Onoprijenko. To embrace the change in demand for both hardware and software products, Ingram Micro is increasingly introducing new service options, with Onoprijenko claiming they are leading the industry. Onoprijenko cites traditional software licensing as an example, with customers purchasing the licenses and associated maintenance to own and manage. With the current evolution underway, firms are moving away from owning these licenses, instead opting J U LY 2 0 1 9
for a pay-as-you-go alternative to access the software, which typically resides in the cloud. “It’s an evolution. A lot of the channel partners recognize this and are proactively transforming their companies. While some companies recognize the need to change, and that they need help with it, others are unresponsive to change and risk getting left behind.” With the experience of the Cloud team, Ingram Micro can offer its partners guidance and knowledge through seminars, educational opportunities and one-on-one
“ We recently moved the entire company to Microsoft Office 365 instead of hosting the solution ourselves” — Greg Onoprijenko, Director of Cloud Canada Ingram Micro 123
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INGRAM MICRO
coaching, differentiating the firm from its competitors. “We can surround our clients with resources which can guide them along and motivate them to change proactively,” he adds. As well as enabling its customers to advance their operations, Ingram Micro is working towards the same goal of innovating its functions internally. “We’re changing our business model and evolving to the cloud. We previously had large data centres with IT infrastructure that serviced the 124
entire company. As an example, we recently moved the entire company to Microsoft Office 365 instead of hosting the solutions ourselves. We also standardized the entire company on Microsoft Dynamics CRM, versus hosting our own.” With cloud adoption increasing at such a rapid rate, one of the company’s biggest challenges is to compete with other businesses taking advantage of the advancement. “Everybody understands the opportunity and is pursuing it. Ingram Micro envisioned this opportunity before our competitors and started delivering cloud services about 12 years ago. We certainly J U LY 2 0 1 9
$50bn Approximate revenue
1979
Year founded
33,000
Approximate number of employees
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125
INGRAM MICRO
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CLICK TO WATCH : ‘RENEE BERGERON, INGRAM MICRO CLOUD, CLOUD SUMMIT X KEYNOTE’ 127
“ Everybody understands the opportunity and is pursuing it. Ingram Micro saw this opportunity before our competitors”
invested early,” Onoprijenko says. Within such a competitive industry, the company has the advantage of its hardworking team with its breadth of knowledge, as well as its years of experience in the sector. As the firm continues to grow, the cloud will be a foundational part of its strategy.
— Greg Onoprijenko, Director of Cloud Canada Ingram Micro c a na da .busi ne ssc h ief. com
LOGO HERE
128
WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CRAIG KILLINGBACK
J U LY 2 0 1 9
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UNIVERSITY OF TORONTO MISSISSAUGA
AHMED AZHARI, DIRECTOR OF UTILITIES, SUSTAINABILITY & GROUNDS AT UNIVERSITY OF TORONTO MISSISSAUGA, DISCUSSES HOW HIS ORGANIZATION IS DEVELOPING TOWARD A MORE SUSTAINABLE FUTURE
P
roviding one of the largest further education facilities in Canada, the University of Toronto Mississauga (UTM) holds the
reputation of a leading organization in the country. The university is accelerating its prestige with significant growth over the past few years through 130
the development of new facilities, and is home to over 25 buildings with more on the horizon. With sustainability recognized as a top priority at UTM, from both an environmental perspective and as a boost to its reputation as a sustainable organization, the university has formed key plans to meet the challenge head-on. Tasked with enabling the university to achieve a more sustainable future, Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM, believes student engagement is key to realizing this important ambition. “Staff and student engagement is incredibly important because sustainability isn’t just one person’s job,” he affirms. “It’s our job collectively as the UTM community to ensure everything we do reduces the impact on the environment and help mitigate climate change. J U LY 2 0 1 9
131
Š Jiaying Song c a na da .busi ne ssc h ief. com
UNIVERSITY OF TORONTO MISSISSAUGA
“ STAFF AND STUDENT ENGAGEMENT IS INCREDIBLY IMPORTANT BECAUSE SUSTAINABILITY ISN’T JUST ONE PERSON’S JOB” 132
— Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM
J U LY 2 0 1 9
We’ve conducted lots of student engagement activities to educate both students and faculty members, ensuring they are aware as to how they can use the buildings in a more efficient manner.” The university has installed energy dashboards into a number of the key buildings on campus to equip students and staff members with the knowledge to understand how much energy the building is using on a real-time basis. To accelerate this project, the university has established a ‘Grow Smart, Grow Green’ strategy which focuses on key topic areas such as green
buildings, natural areas, transportation,
“We’re trying to create an educational
water management, energy manage-
campaign in the community to
ment, waste and recycling. “As part
encourage our students and staff
of this scheme, we’ve introduced a ban
to recycle things properly,” remarks
on bottled water,” explains Azhari.
Azhari. “It’s a big engagement project
“Bottled water isn’t available to buy
that will help standardize all the waste
anywhere on campus and we’ve
bins we have on campus, as well as
replaced the single-use plastic with
producing new recycling schemes and
water fountains that allow those on
educating the faculty and community
campus to refill their bottles instead of
on how to dispose of waste properly.”
purchasing new ones. This is key to our sustainability strategy moving forward.” Operating with a clear goal in mind,
With many buildings across campus recognized with a silver standard minimum in Leadership in Energy and
the university is engaging with students
Environmental Design (LEED), the
to develop waste and recycling plans.
university’s buildings – which are made
CLICK TO WATCH : ‘SUSTAINABLEUOFT’
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133
UNIVERSITY OF TORONTO MISSISSAUGA
134 from recycled and regional materials – include features such as green cleaning programs, low-flow fixtures, energy efficient mechanical and electrical systems, low-emitting materials and green roofs. “The construction policy that we have in place is that any new buildings must meet our requirements of being a minimum of LEED silver,” says Azhari. “However, we can’t stop there; we’re always looking to achieve more.” UTM’s HMALC (Hazel McCallion Academic Learning Centre), instructional building, Deerfield Hall and innovation complex all meet this requirement, as well as the J U LY 2 0 1 9
“ IT’S OUR JOB COLLECTIVELY AS THE UTM COMMUNITY TO ENSURE EVERYTHING WE DO REDUCES THE IMPACT ON THE ENVIRONMENT AND HELP MITIGATE CLIMATE CHANGE” — Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM
minimum target of the upcoming
campus,” notes Azhari. “It’s targeted
North Building. In addition, the Health
to be a minimum LEED silver that will
Sciences Complex and David building
incorporate two major renewable
third floor renovation have both
energy systems; geothermal system
achieved LEED gold status, while the
for building heating and cooling as well
new science building is also anticipat-
as a solar photovoltaic system to offset
ed to achieve this goal. “I have heavily
some of the building electrical require-
participated in the design of the New
ments. We will ensure that it utilizes other
Science building at UTM, which is set
sustainability measures that qualify it to
to house of the majority of the wet and
be certified above the minimum target
dry lab research that takes place on
under the LEED program.”
E XE CU T I VE PRO FI LE
Ahmed Azhari Ahmed Azhari has a diverse range of primary skills such as Sustainable Design, Facilities Management and Energy Management. Professionally, Ahmed manages the design of progressive disciplinary building systems; oversees the installation, operation and monitoring for the safe, comfortable, and environmentally friendly operations of modern buildings. He has delivered designs that play a significant role on the sustainability and energy demand of buildings while utilizing renewable energy, sustainability, low carbon technologies, LEED strategies, and energy management techniques. Ahmed is currently registered with Professional Engineers Ontario as a Professional Engineer (P.Eng.), with Canada Green Building Council as a Leadership in Energy and Environmental Design Accredited Professional (LEED AP), and with Association of Energy Engineers as Certified Energy Manager (CEM).
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UNIVERSITY OF TORONTO MISSISSAUGA
136
J U LY 2 0 1 9
137
— Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM c a na da .busi ne ssc h ief. com
collaborative partner for a sustainable future. EXP has the right blend of expertise and experience to understand, innovate, partner, and deliver.
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139 The university formed a key partnership with EXP, through a competitive public procurement process, to help with the design retrofit for two projects on campus; the Recreational Athletics and Wellness Centre (RAWC) and the Kaneff Centre. “EXP designed the system and helped us put the tender out for public pricing. They currently help us on the construction administration and the project management to help successfully deliver,” he says. “The RAWC is an athletics building, it has a swimming pool and a sauna, with significant heating demand
“ MY VISION FROM A SUSTAINABILITY PERSPECTIVE IS TO DESIGN AND ENABLE ALL FUTURE BUILDINGS TO BECOME CARBON NEUTRAL” — Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM c a naa da nz .busi ne ssc h ief. com
UNIVERSITY OF TORONTO MISSISSAUGA
140
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requirements. We realized a solar hot water system would be an ideal installation in a building like this to help offset some of the building heating demand and fulfil our commitments to utilizing renewable energy sources in efforts to reduce greenhouse gas emissions.” Looking to the future, Azhari has a clear vision of how UTM can continue the promising start it has made. “We haven’t finished – we’re always looking to grow. We’ve signed up for the University Climate Change Coalition Challenge (UC3 Challenge), which aims to reduce our greenhouse gas emissions by 37% by 2030, against a 1990 baseline. My vision from a sustainability perspective is to design and enable all future buildings to become Carbon Neutral in order to help remediate our environmental impact and help mitigate climate change.”
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How technology and people have inspired sustainability and climate action in Ontario WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
CRAIG KILLINGBACK
c a na da .busi ne ssc h ief. com
143
TOWN OF CALEDON
Katelyn McFadyen, Manager of Energy and Environment for the Town of Caledon, discusses the push for sustainability through the use of technology and empowering the people behind climate action
C
aledon, located in southern Ontario and an hour’s drive from Toronto, is a shining example of the positive impact that can
be generated through sustainability initiatives at 144
the municipal level. Katelyn McFadyen, Manager of Energy and Environment at the Town of Caledon, and Cristina Guido, the Energy and Environment Specialist in McFadyen’s team, are enthusiastic and passionate about the impactful initiatives being enacted across the municipality. “I think it’s safe to say that, no matter the size of the municipality, you’re still able to be creative when addressing climate change,” says McFadyen. “The Energy and Environment division is responsible for providing corporate and community stakeholders with guidance and tools for addressing climate change, energy management and sustainable operations practices,” says McFadyen. “We do a lot of research and facilitation to build corporate and community capacity, so that projects that address climate change can be implemented collaboratively and effectively.” J U LY 2 0 1 9
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“ Energy consumption in buildings is our number one contributor to corporate GHG emissions” — Katelyn McFadyen, Manager of Energy and Environment c a na da .busi ne ssc h ief. com
TOWN OF CALEDON
146
“ We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall” — Cristina Guido, Energy and Environment Specialist
The overarching aims of the Town’s corporate environmental initiatives can be boiled down to reducing greenhouse gas (GHG) emissions and maximizing the efficiency of buildings and transport networks. “Energy consumption in buildings is our number one contributor to corporate GHG emissions,” says McFadyen. Guido is currently working on updating the Town’s corporate five-year energy management plan, which is set to be released in 2019. “It’s a requirement of the provincial government, but we took this as an opportunity to go beyond provincial regulations and expand this to broader corporate GHG emissions,” says Guido. “We’re assessing strategies to enhance operations and maintenance, and get our buildings to be as efficient as possible.” Through a collaborative partnership with the Town’s Corporate Energy Team, a group made up of the Town’s building operations specialists, Caledon is working to minimize emissions stemming from its buildings. This is being done through enhanced operational efficiency and conservation-focused retrofits. “We’re very
Recieving the award from Mayor Allan Thompson J U LY 2 0 1 9
fortunate to have the level of engage-
CLICK TO WATCH : ‘CAPTURE CALEDON’ 147 ment from our Building Operations
a software developed by Natural
Team that we do,” says McFadyen.
Resources Canada, a department of
“They’re an incredible group of people
the Canadian Government. It stream-
who’ve totally embraced our corporate
lines the Town’s building benchmarking
strategy and are actively engaged in
initiative as well as visualizing progress
– and excited about – efforts to
on Caledon’s goals. “RETScreen
leverage opportunities and retrofits to
allows us to normalize for variables that
reduce energy consumption.”
drive energy consumption which staff
At the outset of her time with the
cannot control, such as weather. This
Town of Caledon, Guido was pivotal in
allows us to isolate factors such as
the development of the Town’s building
heating degree days, cooling degree
benchmarking initiative that McFady-
days, and the number of days arena ice
en’s team has since used as a powerful
is operational in facilities. For some
indicator of building efficiency. The
facilities, we also look at recreation
project is driven by RETScreen Expert,
building booking hours and how this c a na da .busi ne ssc h ief. com
TOWN OF CALEDON
148
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influences their energy performance,”
Another major area of focus is
says Guido. “We also use RETScreen
transport, with McFadyen’s team
to monitor progress towards our
working not only to reduce the GHG
reduction targets. For example, our
impact of Caledon’s fleet but also to lay
current corporate energy management
the groundwork for future vehicular
plan has a target of a 9% reduction in
solutions. “One of our main focuses
building energy consumption, and we
with Town-owned vehicles will be
use the software to monitor how close
developing a corporate green fleet
we are to reaching that target,”
strategy and doing some modelling to
explains Guido. Caledon is well on its
see what types of lower-emission fuels
way to meeting its current goals, and
are less harmful to the environment,”
McFadyen enthuses that doing so is
says Guido. Progress has already been
just the beginning.
made in this area, with McFadyen 149
E XE CU T I VE PRO FI LE
Katelyn McFadyen Katelyn McFadyen is Manager of the Energy and Environment Division at the Town of Caledon. Having completed her Master’s degree in Environmental Sustainability at the University of Edinburgh, McFadyen has worked at the Town for almost six years as a key driver of the Town’s environmental portfolio successes. In her previous role as Energy and Environment Officer, McFadyen launched the Corporate Energy Team and established the Town’s Corporate Energy Revolving Fund, a self-sustaining fund that financially enables energy retrofits in Town facilities. McFadyen is currently updating the Town’s community climate change mitigation and adaptation action plan, driving the implementation of the Peel Climate Change Strategy, and leading the Energy and Environment Division.
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TOWN OF CALEDON
$100mn+ 1974 Annual budget for 2019
150
J U LY 2 0 1 9
Year founded
350+
Approximate number of employees
151
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The Savings by Design program helps builders improve energy and environmental performance in new construction projects. When a building model exceeds the Ontario Building Code’s energy performance requirements by 15% (combined gas and electrical savings), it becomes eligible for incentive funding.
Savings by Design Program
The Town of Caledon Southfields Community Centre Conceptual Rendering
TOWN FACILITY ADOPTS ENERGY EFFICIENT TECHNOLOGIES EXPLORING ALTERNATIVE OPPORTUNITIES TO SAVE ENERGY The Savings by Design program offers many options to help customers build resiliency into their projects, lowering long-term operational and ongoing energy costs. A Visioning Session helps define project requirements and sustainability priorities by exploring site, regulatory, and market conditions. Issues are then identified and prioritized in the Integrated Design Process Session (IDP). At the full-day IDP workshop, a team of design experts in sustainable building, lighting, HVAC, storm water management, and planning explore possible design improvements to the building. The team works with the SBD experts to explore alternative opportunities to save energy and meet the goals of the program. Real-time modelling allows the team to explore energy savings measures with immediate feedback on the energy impacts. After the workshop, SBC delivers a final energy model based on the ECMs selected as well as a report summarizing the discussions of the day.
The Town of Caledon has a Corporate Green Building Standard that requires LEED Silver certification for all new facilities over 10,000 square feet. When planning its new recreation facility at Kennedy Road and Dougall Avenue, the Town of Caledon turned to Enbridge Gas and Savings by Design. “The Savings by Design program presented a strong alignment with our Council-approved building standard,” says Katelyn McFadyen, Manager, Energy and Environment, Finance and Infrastructure Services. “It provided an integrated learning opportunity between Town staff and the project consulting team. All the parties came together to share information about facility construction best practices and energy efficient technologies.” The 65,000 square foot Southfields Community Centre contains a pool, fitness area, library, OPP station, youth and seniors space, and a community hub containing a Montessori School, Parent Child Centre and other community partners. A groundbreaking ceremony took place in the fall of 2017. A significant outcome of the Savings by Design program, according to the Town of Caledon, was the integrated learning opportunity about construction best practices, technologies and approaches available to reduce energy consumption, plus methods to improve the management of stormwater. The SBD program also had a direct impact on projects beyond Southfields Community Centre. “We invited staff outside of the project to expand their knowledge capacity and understand the justification for the construction of high performing facilities.”
INTEGRATED DESIGN WORKSHOP Sponsored by Enbridge and facilitated by Sustainable Buildings Canada (SBC), Savings by Design provides incentive funding for projects to engage in an integrated design workshop process with real-time energy modelling. Enbridge offered the Town of Caledon free access to a team of multidisciplinary experts to explore high performance building energy targets as well as other environmental objectives including wellness, low impact design, water management, and more. “Although some of the stormwater management technologies and approaches presented during the SBD workshop were not integrated into the Southfields Community Centre, these practices were integrated into other facility construction projects in Caledon,” adds McFadyen.
For more information, visit savingsbydesign.ca
“ We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall” — Cristina Guido, Energy and Environment Specialist
noting that the Town has developed a strong foundation for future electric vehicle (EV) infrastructure. “For a municipality of 70,000, we’re really proud that we have 13 publicly available EV charging stations, and six plug-in hybrid vehicles in our fleet,” she adds, noting that these successes are of particular importance to Caledon with its geographically large landscape. Through the Peel Climate Change Partnership, which involves the municipal governments of the Region of Peel, Town of Caledon, Cities of Mississauga and Brampton, Credit
E XE CU T I VE PRO FI LE
Cristina Guido Cristina Guido is the Energy and Environment Specialist with the Town of Caledon. Guido has her Bachelor’s degree in Environmental Studies and Master’s degree in Environmental Studies from York University in Toronto, and has recently received the Business Energy Professional certification from the Association of Energy Engineers. Guido has been with the Town since 2015, beginning in the role of a student and progressing to her current full-time role. She is driven by her passion for climate change mitigation and is inspired to make a change in the community that she grew up in. Guido continues to lead the Town’s corporate energy and environmental initiatives.
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TOWN OF CALEDON
Valley Conservation Authority, and the Toronto and Region Conservation Authority, Caledon is helping to develop a new regional strategy to accelerate the adoption of low-emission and zero-emission vehicles by residents and businesses in Peel Region. Further actions earmarked for improvement in this area include a ramp-up of vehicle maintenance to maximize efficiency, as well as optimizing fleet route selection. “We’ve installed a GPS-based system into every vehicle in our fleet which could, for example, optimize 154
routes for snow removal in the winter,” says McFadyen. Automation-based technologies are also playing a part in the Town’s sustainability drive, such as the deployment of smart thermostats through many of its buildings and an algorithmic tool that collates utility bill data in the back end of Caledon’s energy management software. The benefits of such upgrades are far reaching: by being able to remotely control a building’s internal climate, McFadyen notes that operations teams no longer have to travel between locations to make adjustments, thereby reducing transport-based emissions. The algorithmic solution J U LY 2 0 1 9
mitigates the risk of additional costs or disruptions accruing through mishandled or misinterpreted data, provides alert reports with consumption anomalies and enhances administrative elements of processing utility bills. The efficacy of these endeavors has been reflected in the awards that McFadyen’s team has received. “We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall, and received similar recognitions for two of our recreation complexes,” says Guido, highlighting a handful of the many awards received from local associations and climate action drivers – but for the team, the satisfaction lies in the results themselves. “Something we really value is that once you implement a project you can see its results,” says Guido. “We can see these retrofits and then, on the data side, we can measure and see that they are saving energy and reducing emissions. It’s amazing to see the impact of our work and to know that we are making a difference.”
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Service New Brunswick: procurement as a business enabler WRITTEN BY
LAURA MULLAN PRODUCED BY
ARRON RAMPLING
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SERVICE NEW BRUNSWICK
With a winning procurement strategy underway, Renée Laforest, Vice President of the Finance and Strategic Procurement Division at SNB, highlights how the crown corporation is having a lasting impact on New Brunswick
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W
hether registering land and property or receiving healthcare, the citizens of New Brunswick have definitely crossed
paths with Service New Brunswick (SNB), a crown corporation that provides almost all direct public services on behalf of the government. SNB’s regular clientele includes provincial and federal government agencies, municipalities, lawyers, surveyors, appraisers, realtors, financial institutions, utilities, engineers, consultants and more – this means the organization’s procurement team have a massive, yet vital, task on their hands. Renée Laforest, Vice President of the Finance and Strategic Procurement division, highlights how SNB’s procurement function isn’t just about improving cost efficiency: it’s also about making meaningful change. “Service New Brunswick does strategic procurement for most of the government entities in the entire province including the health J U LY 2 0 1 9
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SERVICE NEW BRUNSWICK
“ We’re starting to have more conversations about value-based procurement, whereby the results are based on outcomes” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick
sector,” she explains. “Five or six years ago there was an emphasis on cost, and the strategic procurement division was asked to find substantial savings for the government. Therefore, not unlike a lot of procurement teams, we shifted towards a category management strategy.” In essence, this involves clustering similar items that the company wants to buy under a single cost-effective deal. “We have achieved a significant amount of savings through this new strategy,” Laforest enthuses.
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CLICK TO WATCH : ‘RECENT ECONOMIC SUCCESSES’ 161 However, in the most recent chap-
has implemented a range of innovative
ters of the firm’s procurement journey,
procurement strategies but it seems,
it has shifted towards value-based
in a lot of cases, you can’t underesti-
procurement. This can perhaps be
mate the power of conversation and
best seen within the healthcare
understanding the product or service.
division, notes Laforest: “We’re starting
“We really consider our clients’ needs
to have more conversations about
and requirements when procuring
value-based procurement, whereby
goods and services for them,” Laforest
the results are based on outcomes.
notes. “It’s important that we have these
For example, when we purchase
in-depth conversations, particularly
insulin pumps for diabetes clients,
when it comes to services. If you’re
we’ll carefully look at the needs of
buying a service you may have more
our clients and ensure we meet their
complex needs and requirements,
demands rather than automatically
so this dialogue is critical.”
opting for the cheapest pump.” SNB
Procurement has proven to be at the c a na da .busi ne ssc h ief. com
SERVICE NEW BRUNSWICK
162 bedrock of SNB’s operations, ensuring that the organization can deliver the vital government services needed to keep the region ticking along. The function has a lasting impact on the people who provide government services, as well as an indirect impact on those who receive them. Yet, notably, the reverberations of SNB’s innovative procurement strategy can be felt by New Brunswick suppliers too. “We’re trying to support New Brunswick suppliers to become prosperous so they can successfully bid to the government,” Laforest explains. “We’re J U LY 2 0 1 9
“ We are trying to support New Brunswick suppliers to become successful so that they can successfully bid to the government” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick
trying to explain to them when we can
of technology supply contracts with
give preference to a local supplier
the Government of New Brunswick.
versus having an open tender, and why
“Currently, they hold four separate
we need to do that to support our New
multi-year contracts of supply for
Brunswick companies.” On top of this,
technology goods, including data centre
SNB has shown a flair for supplier
infrastructure and client computing
relationship management (SRM)
equipment,” explains Laforest. “All of
through in-depth conversations,
these contracts were awarded through
outreach programs and more. One
competitive open tenders and support
such company that has worked closely
SNB service delivery to three main parts
with SNB is IMP Solutions, who were
of government: core government
successful in winning a number
departments, education, healthcare.” 163
E XE CU T I VE PRO FI LE
Renée Laforest Laforest obtained her Bachelor of Business Administration from the Université de Moncton and is a CPA CGA with 29 years of experience in the civil service. She began her career as an internal auditor at the Office of the Comptroller, then as a treasury officer in accounting services. She then moved to the Department of Health and held various roles in financial services, including the Executive Director role, and also the Assistant Deputy Minister of Health Corporate Services where she was responsible for financial services, construction services, health analytics, procurement, emergency preparedness and business technology. Laforest joined Service New Brunswick in June 2017 as Vice President of Strategic rocurement, and become responsible for Financial Services in the Fall 2018.
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SERVICE NEW BRUNSWICK
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$266mn Approximate revenue
1990
Year founded
2,400
Approximate number of employees
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SERVICE NEW BRUNSWICK
Pulling back the curtain of complexity IMP Solutions is a leading “end to end” IT solutions company serving all of Atlantic Canada. As such, we work with a broad range of both public and private sector clients to provision, design, develop, implement, service and support IT solutions. This is accomplished through our various lines of business which include: Hardware/Software Fulfillment Professional Services Advanced Solutions (Networking and Cloud) Technical Services Managed Services
IMP Solutions is proud to be a strategic procurement partner for the Province of New Brunswick. Through competitively secured supply arrangements, IMP Solutions provides both data center (storage and server) and endpoint device (desktop, laptop and accessories) technology to meet the Province’s business needs.
Learn More +
“ I want to really add value for our clients so that they don’t see procurement as a roadblock but rather see it as a valueadding function” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick 167 Any business leader will tell you
it to submit their proposals and we
that the procurement sector has been
do all our evaluations within the tool.
a stomping ground for innovation lately
It’s all automated and all our stakeholders
and this hasn’t gone amiss at SNB.
have found it beneficial.”
Laforest describes how the organiza-
Looking at the wider procurement
tion is in the midst of implementing
landscape, Laforest has seen an uptake
a new enterprise resource planning
in innovative procurement practices.
(ERP) system. “We are investing in a
This helps to encourage greater collabo-
new eERP solution for all of govern-
ration with vendors and promotes new
ment, so we need to replace the HR
ways of doing things. “I think the days of
management, financial, and procure-
listing endless requirements for procure-
ment and supply chain systems,” she
ment processes are in the past,” she
explains. This is further compounded
proposes. “In some instances, you may
by the group’s strategic sourcing
know that the business needs to buy
platform used for health sector
a blue chair that’s a particular height,
procurements, Bonfire. “Vendors use
for example, and that’s easy to do. c a na da .busi ne ssc h ief. com
SERVICE NEW BRUNSWICK
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But when you’re not quite certain what the market has to offer then it’s important to have a process where procurement can be more open. For instance, you may say ‘I need a system to help me track health inspections’ and outline your requirements so vendors could bring forward unique suggestions. It’s fair and transparent and I think it brings about more successful outcomes.” SNB’s procurement success is far from coincidental. The crown corporation has put its weight behind a multi-year procurement integration and it is already reaping the benefits for both the government and its citizens. In the upcoming years, Laforest asserts that SNB will continue to spearhead leading procurement practices so that stakeholders can see the function is not a hindrance but rather, an enabler. “I want to really add value for our clients so that they don’t see procurement as a roadblock but rather see it as a value-adding function,” she affirms.
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LEVERAGING DIGITAL TRANSFORMATION IN THE EVOLVING MINING SECTOR WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
RICHARD DEANE
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ANDRITZ
Arthur Gooch, Director of Innovation, and Sohail Nazari, Business Development Manager of ANDRITZ, discuss the importance of innovation amidst a digital transformation in the mining industry
W
ith a desire to establish a lead in the mining sector through innovation amidst a worldwide digital transformation,
ANDRITZ, which provides industry-specific 172
products and solutions for sectors including mining, has a history of setting the bar high. With the task of embracing the right technology to drive operations forward vital to growth in all fields, the mining sector is often considered slower to adopt new software. However, ANDRITZ remains determined to enable mining operations all over the world to bridge the gap between concept and production, facilitate operational readiness and stay ahead of the curve. The firm has made a significant impact in the mining space in recent years, winning the prestigious #DisruptMining 2019 innovation competition through its disruptive Digital Twin technology capable of training artificial intelligence (AI). “It was a very exciting experience and a little bit surreal to win the competition.
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173
1852
Year founded
10,000+
Approximate number of employees
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ANDRITZ
“ONCE WE BECAME A FINALIST, IT’S A SHARK TANK STYLE COMPETITION AND THE FINAL THREE GO ON STAGE” — Sohail Nazari, Business Development Manager, ANDRITZ
174 We couldn’t quite believe it,” says Arthur Gooch, Director of Innovation at ANDRITZ. “There’s a fair amount of pressure associated with the event so it all happened in a bit of a blur.” The competition, hosted by gold mining giants Goldcorp and now in its third year, had approximately 90 submissions from mining firms to showcase the technologies they have implemented to drive innovation in the sector. “It was amazing when we were on the stage,” adds Sohail Nazari, Business Development Manager of ANDRITZ. “It’s vital that you spend a lot of time J U LY 2 0 1 9
CLICK TO WATCH : ‘ANDRITZ CORPORATE VIDEO’ 175 ensuring that everything on your
dynamic simulator, IDEAS, the tool is
application is correct.”
now enabling operations across the
The competition is whittled down
sector to reduce risk and experience
until three finalists remain. “Once we
considerable cost savings. The
became a finalist, it’s a Shark Tank
software is considered the leading
style competition and the final three go
dynamic simulator for oil sands
on stage,” explains Nazari. “They pitch
operations in the north of Canada
their ideas to the judges with 500
and for hard rock mining operations
people watching in the audience. It’s
worldwide. Gooch explains how
fair to say it’s a high-pressured event,
his company is utilising Digital Twin
and the stakes were really high, but
software. “The first physical model is
after we were announced as the
like a software wrapper for all of the
winner, we all felt a massive relief and
engineering equations that we know
were incredibly satisfied.”
define each piece of equipment,” he
Having impressed the judges with its
says. “For example, if we have a pipe, c a na da .busi ne ssc h ief. com
ANDRITZ
176
J U LY 2 0 1 9
we know that there are correlations
matter of solving a number of equa-
between pipe geometry, surface
tions. Instead, it’s setting the conditions
roughness, the pressure across the
and the operating points – like the
pipe as well as the pipe’s flow rate.
positions of valves and the set points
Those equations, alongside those for
of controllers – enables the simulation
every other piece of equipment, get
to replicate the behavior of real
embedded into objects in the model in
running equipment.”
a graphical format. This allow us to
“Engineers make mistakes like
connect them together, and it means
everyone else in life. However, when
that when someone wants to figure out
you build the simulation model, you
what is going on in the plant, it’s not a
actually go through all these designs
E XE CU T I VE PRO FI LE
Dr. Sohail Nazari, BDM
177
Dr. Sohail Nazari has worked in various industries including automotive and oil and gas. His current focus in ANDRITZ is to develop the business of applying advanced automation technologies in mining and mineral processing. He was one of the instrumental contributors to the ANDRITZ team that just won first prize in the Goldcorp/Newmont Disrupt Mining competition with IDEAS Reinforcement Learning Artificial Intelligence. His areas of expertise include design and implementation of advanced process control, intelligent condition monitoring, Digital Twin and machine learning algorithms. Dr. Nazari holds a patent on developing a model predictive control algorithm for power optimization in data centers. He received his PhD from University of Alberta, Canada, Department of Electrical and Computer engineering in 2013. c a na da .busi ne ssc h ief. com
ANDRITZ
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“THE FIRST PHYSICAL MODEL IS LIKE A SOFTWARE WRAPPER FOR ALL OF THE ENGINEERING EQUATIONS THAT WE KNOW DEFINE EACH PIECE OF EQUIPMENT” — Arthur Gooch, Director of Innovation, ANDRITZ 179
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ANDRITZ
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181
E XE CU T I VE PRO FI LE
Arthur Gooch, Director of Innovation Arthur is responsible for product development at ANDRITZ. A mechanical engineer by training, most of his career has focused on process automation projects for the mining and pulp and paper industries. From his background in control system configuration and commissioning, he now directs the creation of artificial intelligence and simulation technologies for industrial control.
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ANDRITZ
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and it allows you to ensure the design is going to work. It highlights any mistakes that are made,” adds Nazari. “We build the model, validate the design and ensure that it includes all the concepts on physics, chemistry, control systems, metallurgy, or whatever the plant is for. It’s all there. Then, we make sure that the design will work under different scenarios before we connect the model into the control system, even before the plant is built.” Following its success, Gooch affirms that ANDRITZ continues to take innovation seriously to avoid complacency and ensure it differentiates itself from rivals. “It’s a constant process of trying to review the technology we have and look at how we can take new strides with the things we couldn’t do yesterday.” Reflecting on his company’s achievements, Nazari affirms how teamwork has been key to ANDRITZ’ endeavors. “This success definitely comes down to teamwork,” says Nazari. “The things that we are accomplishing in our division, with regards to AI at ANDRITZ, are made possible by the leadership culture in place to support this and help push for innovation. We are passionate and we c a na da .busi ne ssc h ief. com
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ANDRITZ
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“I BELIEVE MANAGERIAL PRUDENCE AND CAUTION ARE CERTAINLY KEY TO ENSURING SUSTAINABILITY” — Sohail Nazari, Business Development Manager, ANDRITZ
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185
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ANDRITZ
are one team working together to
be quite deliberate and restrained
innovate – it is so important.”
regarding how many people we
With sustainability considered a key
approach. At some point, we could
pillar at ANDRITZ, Gooch points out
potentially run the risk of making
how crucial it is that, despite success,
promises that we simply wouldn’t
the company doesn’t take on more
have the resources to execute in
projects than it’s capable of delivering.
the agreed timescale.”
“I believe managerial prudence and
Looking to the future, Nazari aspires
caution are certainly key to ensuring
for ANDRITZ to become the default
sustainability,” he says. “We’ve
provider of Digital Twin technology in
experienced a tremendous flurry
mineral processing and pulp and paper.
of activity; however, we have had to
“With our well established process
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simulation technology, ANDRITZ is
paper is going to work. We’re going
becoming a natural frontrunner of this
to automate and then optimize as
innovation and is being considered as
much as possible. This is what we
a pioneer in the use of real time Digital
at ANDRITZ have at the forefront of
Twins for optimizing the process and to
our thoughts.”
better monitor the conditions from the process point of view,” explains Nazari. “The plan for the next few years is to continue to push innovation through more showcases, and we’re going to undergo a large evolution of how the mineral processing and pulp and
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Flexential: Customer-centric investment in data center infrastructure WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
TOM VENTURO
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FLEXENTIAL
CEO Chris Downie discusses the key differentiators putting Flexential ahead of the competition as a flexible and essential data center partner with a company-wide focus on customer success.
H
aving combined in August 2017, Peak10 and ViaWest rebranded as Flexential in January 2018 to highlight the organization’s
commitment to being both flexible and essential 190
to its IT customers. Since then, the data center and hybrid IT operator has continued its forbears’ strong expansion methodology and commitment to the customer experience. “We spend a ton of time making sure that we’ve got a customer success culture – an organization-wide strategy that puts customers at the top,” says CEO Chris Downie. A seasoned data center industry veteran, Downie is also a passionate rugby fan with both college and postgraduate playing experience. He carries the cooperative, strategic and spiritual ethos of the sport through his role as chief executive – with great success thus far. “Rugby is a sport where strategy and teamwork are key to how you execute plays – you have to pass backwards to advance your team and there are no breaks between plays. At Flexential we also focus on strategy and teamwork. J U LY 2 0 1 9
Flexential expanded its data center to 142,000 sq. ft. in Atlanta’s technology corridor
191
40
Data centers
1,000
Approximate number of employees
21
Domestic and international markets c a na da .busi ne ssc h ief. com
FLEXENTIAL
“ We spend a ton of time making sure that we’ve got a customer success culture – an organizationwide strategy that puts customers at the top.” 192
— Chris Downie, CEO, Flexential
Our brand is anchored in the concept, ‘The Power of People in a Technical World®, which for us is all about making our customers successful. Their success is infused in everything we do.” Having been at the heart of the data center industry for more than ten years, Downie has seen firsthand how it has become a vital component of modern business. In light of today’s demands for capacity, security, redundancy, reliability and recovery, flexibility and network expansiveness, Flexential has invested heavily in establishing itself as the best option for companies undergoing digital transformation and expansion across the US. The sheer volume of data being created and being digitized is set to necessitate continuous upgrades to capacity as more data-heavy technologies take root. “There are massive amounts of data being generated for technology, such as artificial intelligence (AI) and a whole host of other applications requiring a data center to function effectively,” says Downie. “Having the capacity for this accelerating growth, and the exponential amount of information that needs to be stored, contained and kept safe for the rest of time, is massive for our
J U LY 2 0 1 9
CLICK TO WATCH : ‘FLEXENTIAL FLEXANYWHERE TM SOFTWARE-DEFINED NETWORK’ 193 strategy going forward.” With 40 data
Flexential’s ability to go beyond the
centers across 21 US markets, Flexential
traditional expectations of a data
has not only the capacity but also the
center operator. Enterprises increasingly
geographical reach to set it apart from
operate in a hybrid world where their
a significant chunk of the competition.
infrastructure is located in many
“Having the ability to offer our products
physical locations and in a variety
across a broad geographical reach
of forms, making Flexential an ideal
allows us to get in front of demand
choice as the home base for a customer’s
across the country,” adds Downie.
hybrid IT operations. “We can provide
The company recently announced
our customers a variety of colocation
expansions to its facilities in Portland,
and cloud infrastructure choices,
Nashville, Charlotte and Atlanta.
helping them manage and protect the
Highlighting customer demand for
data that fuels their business, and most
solution providers with broad capabili-
importantly interconnect that infra-
ties, Downie is enthusiastic about
structure in a highly scalable, secure, c a na da .busi ne ssc h ief. com
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FLEXENTIAL
196
and reliable fashion,” he says. “Our ability
being consumed and where, Flexential
to also offer professional services that can
is working to help them “future proof”
solve the challenges that our customers
their infrastructures. “One of our critical
face serves to make their engagement
differentiators is the network; the
with Flexential even more meaningful.”
investments we’ve made in resources
Flexential’s broad utility set is further
across our portfolio enables our
enhanced by its stellar network
customers to federate their data and
capabilities, and its aggressive invest-
resources anywhere and everywhere
ment strategy in this area is reaping
they need to.”
dividends. As more and more enterprises
A significant facet of Flexential’s
are considering architecture for edge
network platform is its access to the
and distributed computing, as well as
Asia Pacific market via subsea cables.
machine learning and artificial intelli-
Hosting direct access to three
gence toolkits to analyze how data is
trans-Pacific subsea cables, supplying
J U LY 2 0 1 9
connectivity between Asia and the
those cables we have an entry point
West coast of the US offers a huge
to massive data sets, and this puts us
opportunity to Flexential’s customers
in a position to assist consortium
and makes Flexential more competi-
members, and other customers that
tive abroad. “The New Cross Pacific
want to be near those cables, to
(NCP) cable has some of the largest
complete the solutions they’re looking
cloud and communications providers
to build in the US.”
in Asia as consortium members, and it
Flexential has also been actively
extends to China, Taiwan, Korea and
investing in capitalizing on the
a whole host of other countries,” says
opportunities afforded by its size and
Downie. “We also host the Hawaiki
geographic reach, namely the ability
subsea cable which extends to
to communicate with larger customers
Australia and New Zealand. In hosting
that make decisions across multiple 197
E XE CU T I VE PRO FI LE
Chris Downie, CEO Chris leads Flexential as a proven Chief Executive Officer with deep expertise in the economics, delivery and operations of the data center and hybrid cloud businesses. He is responsible for setting and managing the strategic priorities that drive profitable growth. Chris joined the company in 2016. Prior to Flexential, Chris was the Chief Executive Officer of Telx Holdings, a leading interconnection and data center solutions provider based in New York City, New York. He has more than 25 years of combined executive leadership experience in finance and operations, working for Daniels & Associates, BroadStreet Communications and Motient Corporation. Chris holds a B.A. degree in History from Dartmouth College as well as a M.B.A. degree in International Business from New York University.
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CLICK TO WATCH : ‘THE NEXT BIG THING IS HERE: ATLANTA – ALPHARETTA EXPANSION’ 199 geographies and themselves have
financial institution at one of our
demanding requirements. “You can call
southeastern facilities, and that’s
it wholesale, you can call it multi-mega-
going to become one of the largest
watt transactions, but it’s really serving
processing centers for financial
large enterprises and large technology
trading transactions in the world.”
companies with greater deployments
The attractiveness of Flexential’s
than your average company.” Flexential
offering is further compounded by its
has been investing in its internal capabili-
leading security and recovery capabili-
ties to facilitate such deals with growing
ties, aiming to maximize peace of mind
success. “We recently completed a
for customers. “Security starts with
3MW deal in one of our western markets,
the physical security of the data center
with a large SaaS provider that’s
itself,” says Downie. “We’ve been very
focused on data storage; a hyper-scaler
focused on meeting and maintaining
in terms of their global growth. We have
compliance standards across a
also secured a 1.5MW contract with a
number of verticals in our domain. c a na da .busi ne ssc h ief. com
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111,000+ square-foot data center with unprecedented PUE of 1.3 at full capacity
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“ Our ability to offer Professional Services that can solve the challenges our customers face, serves to make their engagement with Flexential even more meaningful.” — Chris Downie, CEO, Flexential
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We also have a host of security functions
DRaaS. At the time of writing, seven of
built into our network to ensure data
Flexential’s facilities are equipped with
running through it is safeguarded,
its disaster recovery capabilities, with
encrypted and so forth. The network
more on the horizon.
is also a foundational element of our
Looking forward, Flexential continues
Disaster Recovery as a Service
to seek innovation and opportunities
(DRaaS) and recovery cloud functions.”
to enhance its customer offering.
In April 2019, Flexential was recog-
Downie offers Edge computing as
nized by Forrester Research as one of
an example of a customer trend that
eight leading contenders in the DRaaS
Flexential is keen to accommodate.
space, receiving the highest possible
“Data is being generated everywhere,”
rating for Forrester’s core DRaaS
he says, citing autonomous vehicles
offerings criteria. In June, Flexential
and connected vending machines as
was honored by Gartner and included
examples of data generators at the
in the 2019 Gartner Magic Quadrant for
edge of the network. “Those data sets
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FLEXENTIAL
YOUR BEST ELECTRICAL CONNECTION SINCE 1912. Sturgeon Electric’s commercial and industrial electrical construction division specializes in large-scale commercial electrical projects, telecommunications, high voltage distribution service, and maintenance to clients. When it comes to data centers, Sturgeon Electric is the premier contractor of choice. We have provided solutions for mission-critical facilities since the dawn of the digital age. Over the years, we have attained an unparalleled level of knowledge, skills, and experience. More importantly, we’ve gained the trust of our clients in some of the world’s most sensitive data environments.
our customers are consuming power, the scale at which they’re consuming network resources, and whether there is customer interest in different network technologies.” Downie adds that Flexential is equipped with the expertise to make the right call when it comes to such investments and in the personalization of its service offering. “We’re firm believers that the cloud is not the right home for all workloads, and helping our customers appreciate where workloads should reside is really important. As IT environments become more complex, our customers need help making the are coming from very far afield, so
right choices. The challenge for
having the ability to capture, process
operators is being prepared to have
and store them close to the given use
that conversation with customers.”
case is becoming increasingly impor-
Flexential is certainly prepared,
tant. When it comes to the information
empowered by Downie’s team-oriented
generated by a self-driving car, the data
and strategic leadership, and it is clear
needs to be processed by the car itself
that such preparation in each facet of
but it’s also sending huge amounts to
its operations will continue to grow.
local processing centers that need to be proximate to wherever the car is.” Flexential consistently evaluates areas for improvement in its environments, particularly as the needs and expectations of the customer continuously evolve. “We actively monitor how c a na da .busi ne ssc h ief. com
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LOGO HERE
206
Inside the digital transformation of America’s oldest family-owned drug store brand WRITTEN BY
HARRY MENEAR PRODUCED BY
CRAIG DANIELS
J U LY 2 0 1 9
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BARTELL DRUGS
Kari Escobedo, SVP, IT at Bartell Drugs, shares her business insights and plans for the digital transformation of America’s oldest familyowned pharmacy brand
D
igital transformation is change, and in the world of the enterprise, change is unrelenting. From a single location
purchased by 21-year-old pharmacist George H Bartell Sr in 1890, Bartell Drugs has become the 208
United States’ oldest family-owned drugstore chain – an iconic brand in the Pacific Northwest. Achieving constancy and longevity through a great depression, a great recession, two world wars and myriad upheavals that mark almost 130 years of history, the brand is an American success story. Walking the line between the traditional and the futuristic, while always delivering the highest quality of service to its customers, Bartell’s is making strides towards a bold digital future. “We want to bring Bartell’s into the modern digital world and ensure that its brand and products will still be here serving our communities a hundred years from now,” says Kari Escobedo, Senior Vice President (SVP) of IT at Bartell’s. Escobedo, along with new CEO Kathi Lentzsch and other Sr Executives are J U LY 2 0 1 9
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BARTELL DRUGS
working to build teams to shape Bartell’s digital transformation strategy. This approach will carry the company into the fourth industrial revolution and, hopefully, into the 22nd century. Prior to joining the company in July 2018, Escobedo spent over a decade working for some of the Pacific Northwest’s largest, most game-changing companies. From years of growing up in a military household to experiences at Starbucks, Microsoft, T-Mobile, and Kaiser Permanente of WA, she shares how the transformation values of continually driving innovation,
210
promoting community and diversity, and
“ We want to bring Bartell’s into the modern world and ensure that its brand and products will still be here in another hundred years” — Kari Escobedo, IT, Bartell Drugs
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championing adaptability are informing Bartell’s digital transformation. “I grew up in the Marine Corps, moving around every couple of years. I’ve lived all over the country and parts of the world – that’s what you do as a military child,” recalls Escobedo. “Every two to three years, we would pick up and move to another state. My siblings and I got dropped into a whole new school on a regular basis.” Escobedo credits her frequent relocations into new cities, cultures and social dynamics at an early age for a trait she has found invaluable
CLICK TO WATCH : ‘#BETTERWITHBARTELLS: DID YOU KNOW?’ 211 throughout her career: adaptability.
into its business model for a long time;
“I got very good at finding my way
each of the brand’s 68 locations is
and finding things about myself that
uniquely tailored to its neighborhood
integrate well into new situations,”
and customer base. “Our stores fit into
she explains. In her career, she quickly
their neighborhoods architecturally,
found: “You get really good at reading
but also about 30% of the products we
the organization, the culture, seeing
stock are local to the Pacific Northwest,”
opportunities and being able to stand
Escobedo explains. “There are some
back and say: ‘Where do I fit in this
stores that are partnered with the Post
picture? Where I can use what I do best
Office, because that’s something their
to help the company?’ One thing that
neighborhoods were lacking when they
I lean on a lot is my adaptability coming
opened.” Other stores have everything
into new organizations.”
from growler stations and espresso
Adapting to different environments is a skill that Bartell’s has integrated
bars to hand-dipped ice cream stands and product assortments for office c a na da .busi ne ssc h ief. com
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rs e t r po ugs p Su ll Dr d u rte o r P Ba of
workers on lunch breaks. “The makeup of the product selection is focused on what customers need versus only what we want to sell them,” she says. “It differentiates us from some of our big box competitors.” Bartell’s also adapts its instore experience so all feel welcome. “There was a conscious decision made to have shorter fixtures in all stores. With a lower profile, our stores feel
“ I got very good at finding my way, and finding things about myself that integrate well into new situations” — Kari Escobedo, IT, Bartell Drugs
E XE CU T I VE PRO FI LE
Kari Escobedo, SVP, IT Kari Escobedo is a business executive with 20+ years of leadership experience serving global F500 companies in technology, healthcare, telecoms, and retail. She is a change leader specializing in company technology transformations, including digital experience, product dev, and M&A. Kari joined Bartell Drugs in mid-2018 to help positively impact the company thru technology. Prior to Bartell Drugs, Kari joined Kaiser Permanente 2015 leading the Ent & Digital Services areas that include UX/CX, Digital & Mobile for KPWA. Formerly VP, Ent Sys Dev for T-Mobile, Kari led the technology team responsible for the development and delivery of solutions for the Customer Retail & Enterprise Systems that supported the T-Mobile business transformation. Before joining T-Mobile, Kari was the Director of Information Management and CISO for Starbucks as well as teams that supported ERP, Employee Portal systems. Before Starbucks, Kari held leadership positions at Microsoft, running it’s Enterprise Systems teams.
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BARTELL DRUGS
1890
214
Year founded
1,700
Approximate number of employees
HQ
Seattle, Washington
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BARTELL DRUGS
more open. You can see across the store and find people; it’s more inviting.” A feeling of welcome and personalized experience is key to the way Bartell’s does business. Escobedo’s priority is to harness the power of digital transformation to provide the company with more ways to reach its customers, while honoring the traditional heritage established by the Bartell family. “In Seattle, we have a pretty tech-savvy customer base, but we also have a customer base that really appreciates and demands personalization,” she 216
explains. “They need to know you and you need to know them as a customer. That’s just part of the relationship-driven environment that we have in the Northwest. It’s what Bartell’s is known for.” Escobedo’s leadership style is uniquely suited for Bartell’s transformation. “I love to come in and build sustainable change,” she enthuses, recalling her time at telecom giant T-Mobile and Starbucks. Escobedo constantly asks herself: “How do we keep driving innovation? You can find possibilities everywhere. You don’t have to be introducing new products that nobody’s seen before, but you need to be innovating for your customers.” J U LY 2 0 1 9
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CLICK TO WATCH : ‘#LOVINGLOCAL: JOE CHOCOLATES’ 219 In terms of e-commerce, Bartell’s has
On the pharmacy side, Escobedo and
taken a very customer centric ap-
Bartell’s are working in conjunction
proach, working in conjunction with
with Californian start-up, NimbleRx,
Amazon Prime Now and several other
to provide delivery services for pre-
well-known last-mile shopping delivery
scriptions and commonly purchased
services on same day delivery of
OTC products. “It allows us to really
non-pharmacy items. “We’re channel
fulfil a strategy built around making it
agnostic right now,” she explains.
super easy for customers to buy things
“Whichever company you buy our
from Bartell’s when and where they
products through, the strategy we’ve
want them,” she explains.
put together is focused on giving our
While many things are changing
customer’s choice and the opportunity
around them, Escobedo’s team relies
to get our products in the easiest way
on her ability to build excitement and to
for them – we want to be where they
lead by example. “My job is to help my
shop versus making them come to us.”
teams and business partners succeed c a na da .busi ne ssc h ief. com
Clever Minds. Cloud Design. Always On. As a managed services provider, we are uniquely positioned to enable our enterprise customers like Bartell Drugs, to focus on what matters most: their core business. Our journey with Bartell began with their Dynamics AX2012 deployment and continues with OďŹƒce 365 management, Azure services and the modernization of their technology infrastructure. Contact us today to learn how, together, we can create your ideal cloud environment. watserv.com | info@watserv.com | 1.866.532.2596
J U LY 2 0 1 9
– because if they are successful, then
and vendors that will champion for
we all win,” she says. “It is critical to be
Bartell’s and their goals.
transparent and to clearly define
Escobedo is embracing technologi-
expectations for myself and my teams.
cal wins of every size. She uses small
I hold them accountable and they hold
changes like augmenting legacy
me accountable. With that comes
point-of-sale systems with user-friend-
mutual trust and a comfortability that
ly mobile-driven solutions to promote a
fits well in our organization,” said
culture that is accepting of and
Escobedo. This isn’t limited to the
enthusiastic about more radical
teams she leads. With vast knowledge
transformations. “Many of our employ-
and relationships in the technology
ees have been at Bartell’s for a long
world, and the experts in that space,
time and they love this company. That
Escobedo chooses the right partners
means, as we move to adopt and leverage some of these technologies,
“ Customers need to know you and you need to know them. That’s just part of the relationship-driven environment that we have in the Northwest, and it’s what Bartell’s is known for” — Kari Escobedo, IT, Bartell Drugs c a na da .busi ne ssc h ief. com
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BARTELL DRUGS
Bartell – Supporting local brands
Joe Chocolate Co. specializes in crafting delicious, handmade chocolate, infused with locallyroasted coffee from Lighthouse Roasters. Our functional chocolate gives you the energy you need from ingredients you love. 222
Nuun Hydration was founded in 2004 by cyclists and triathletes, who decided to trade in sugary sports drinks and powders and create a light, refreshing, portable hydration solution. Nuun has a variety of hydration products to fit every hydration need, whether you’re running a marathon or a marathon of errands!
Pacifica Beauty: Pacifica’s products are vegan and
J U LY 2 0 1 9
cruelty-free with an everpresent mindset to reduce its impact on the environment.
Liberty Orchards: Aplets & Cotlets. The blossom-fresh f lavor of crisp Washington apples, the tangy goodness of ripe apricots, and the nutty richness of crunchy English walnuts have made Aplets and Cotlets the Pacific Northwest’s most-beloved candy since 1920!
An iconic brand in the Seattlearea for more than 30 years, Talking Rain is a Washingtonbased beverage company situated in the foothills of the Cascade Mountains. Talking Rain’s sustainable growth is attributed to the company’s ability to stay true to their
vision and heritage, while continually improving and innovating their products.
Wet Noses Dog Treats provide truly natural dog treats and food without a negative impact on the environment. They offer choices to pet parents that they can feel good about through our conscientious and food safety forward formulation, sourcing and production processes. They serve all their customers by exceeding their expectations by always putting them first.
The history of MarketSpice can be traced back to a small tea and spice shop established in Seattle’s historic Pike Place Market in 1911. Over the years, we have offered our customers
a large assortment of bulk teas and spices. MarketSpice is proud of its 100 f lavorful years of history and continues to share the belief that “spice is the variety of life”.
Stickers Northwest: Premium quality PNW related stickers, shirts and magnets for you to show off your love for the Northwest.
Strideline Socks. The most comfortable sock on earth. Strideline’s mission is to provide athletes and polished individuals with distinctly colored, performance oriented crew socks that inspire a feeling of confidence and swagger unparalleled by any other sock company in the world.
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BARTELL DRUGS
224
“ It’s interesting to be able to really change and move where our customers expect us to be, but then still embrace and celebrate the long history and deep roots of Bartell’s” — Kari Escobedo, IT, Bartell Drugs
J U LY 2 0 1 9
there’s a significant change management component we have to take into consideration,” Escobedo explains. “AI and machine learning. Those are big, scary words for many traditional retailers.” Currently, she is pursuing several proof-of-concept tests of predictive analytics and automation, which she hopes will help to demystify the functionality and experience of incorporating leading-edge technology for Bartell’s team. Looking forward, Escobedo relishes the chance to continue balancing
225
transformation and tradition. “It’s
customers.” For the first 129 years
interesting to be able to really change
of its existence, Bartell Drugs was
and move where our customers expect
shaped by a world that went from
us to be, but still embrace and celebrate
steam to the moon to the internet.
the long history and deep roots of
The next 129 years of Bartell Drugs’
Bartell’s,” she says. “We’ve had some
history will be shaped by the initiatives
great accomplishments over the last
that Escobedo and her team pursue
six months. I’m super excited about the
over the next few years.
shift in thinking and the ideas that are coming from my technology team. Through the rest of this year, we are building a great foundation to continue to launch a more enhanced and personalized digital experience for our c a na da .busi ne ssc h ief. com
Your Safety...Our Commitment
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WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
ANDY TURNER
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H E AT H C O N S U LTA N T S
As the company focuses on digitally transforming its operations,Heath Consultants prioritizes sustainability across its functions
E
stablished 86 years ago, Heath Consultants is now run by the third generation of the Heath family. The business is the premier
leader in the natural gas leak detection industry, servicing utility companies “all the way from the 228
well head to the burner tip”, explains Paul Wehnert, Senior Vice President of the Sales and Marketing unit. “Primarily, we’re a leak detection, underground utility locating service, and products manufacturing firm,” adds Wehnert. The company employs around 1,500 people across 44 states in the US, but has earned an international presence through the distribution of its products. A main aspect of the company’s operations is conducting leak surveys. “A leak survey primarily consists of a person walking around documenting on paper where they went and what they found. However, the industry is currently going through a transition from paper documentation to digital documentation,” remarks Jeff Tuttle, CEO of Heath Consultants. “The way in which we conduct these surveys is now all in J U LY 2 0 1 9
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H E AT H C O N S U LTA N T S
“ The industry is currently going through a transition from paper documentation to digital documentation” — Jeff Tuttle, CEO, Heath Consultants
transition – whether the person is walking or driving by vehicle, the instrument readings, position of the person and detections are all recorded.” Heath is also expanding its technological footprint with the launch of its DP-IR Trainer, software that uses augmented reality to train workers how to conduct leak surveys. Beyond how the information is acquired and stored, the company is also expanding its analytics capabilities through a partnership with software development company Silicus. Heath is now able to evaluate
230
J U LY 2 0 1 9
CLICK TO WATCH : ‘HEATH 2018 WORLD GAS CONFERENCE PRODUCT SHOWCASE’ 231 the leak information, such as methane
technology that is connected to the
readings and pipe quality. “We can ask:
internet, such as data logging, GPS
‘Where are the risky sections of pipe?
and the cloud. “We still have portable
Where are they located?’ We can then
platforms, but connected portable
provide a thesis or data source to that,”
platforms. We have mobile platforms
continues Tuttle.
where we have vehicles that drive
The company has leveraged its core
around a city network, and we have
gas detection technology and con-
aerial platforms like drones and UAVs,”
nected it with a cloud analytics
says Tuttle. The CEO highlights the
package. This enables oil producers to
introduction of connected methane
then conduct Leak Detection and
sensors placed amongst city grids,
Repair (LDAR) work, which often takes
available on a 24/7 basis.
places in remote areas. The industry is
However, the role of analytics has
shifting from using portable technolo-
a much greater presence in the
gies that an individual would carry to
company’s overall business strategy. c a na da .busi ne ssc h ief. com
Enabling Enterprises in the Cloud Silicus is a cloud transformation services company, focused on helping enterprises deploy sustainable cloud technologies- to support business innovation, enable technology modernization, scale technology-driven differentiation, and manage technology investments through their lifecycle.
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CONTACT US
“ It’s also important from a digital transformation perspective to collect data on the performance of our technicians” — Ken Cowher, Vice President of Operations for the Service unit, Heath Consultants
“For us on the operations side, it’s also important from a digital transformation perspective to collect data on the performance of our technicians,” notes Ken Cowher, Vice President of Operations for Heath’s Service unit. “It is important we have a standardized and automated way of doing that to ensure we get good quality data we can run predictive analytics on. This allows us to proactively manage our crews and make them as efficient as possible.” Cowher explains that all service operations lie within a competitive bid industry, which in turn means that efficiency is key.
E XE CU T I VE PRO FI LE
Jeffrey Tuttle, CEO Jeffrey Tuttle has worked in various capacities within the utilities sector for over 30 years. Prior to joining Heath he served as General Manager for Greer Commission of Public Works where he directed the company’s day-to-day operations and long-term direction of all utility operations.
He has served on various association’s Board of Directors including Piedmont Municipal Power Agency (PMPA), American Public Gas Association (APGA), Blue Ridge Scouting Council, and Greer Relief. From 2011 to 2012, he served as the Chairman of American Public Gas Association (APGA) and Texas Gas Association.
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H E AT H C O N S U LTA N T S
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J U LY 2 0 1 9
The company uses Microsoft’s Azure cloud to host many of its systems, including RMLD-Remote Emissions Monitoring. Heath is piloting the sensor-based technology that enables it to monitor for leaks 24/7. The firm is almost ready to introduce its Leak Survey Analytic, also based in Azure, which harbors the data from thousands of surveys. “Every detail over time is captured and made available at a click so we can analyze the quality of the survey, the completeness of the survey and provide some of the risk factors that feed into some of these pipeline risk models,” Tuttle comments. Heath has also partnered with Novara Geosolutions, the asset management products and services company. “We’re working with them to develop a field application for our leak survey technicians to use. It will integrate with customer facility mapping and track breadcrumb indications of the leak surveyor and the path that they take over the pipeline. It will include indications that we find, abnormal operating conditions – anything that would be a reportable situation from the survey – and feed that information back to the customer whilst connecting with our c a na da .busi ne ssc h ief. com
235
Insgroup is one of the nation’s leading independent strategic risk and insurance advisory firms. Over 40 years we’ve established a reputation for relentless client advocacy, integrity and exeptional exceptional service.
Commercial Insurance
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billing system,” explains Tuttle.
1933
As well as addressing technology transformation within its operations,
Year founded
Heath Consultants is also becoming very aware of sustainability issues in its industry. “The industry is really going through a major transition with emission reduction – it grew up doing the surveys from a safety standpoint, assessing the potential hazards of gas
1,500
Approximate number of employees
leaks in homes and buildings. Heath grew up with the paramount mission to find the dangerous leaks, help utilities and mitigate them by repairing the pipe.
HQ
Houston, Texas
Now with the concerns over climate
237
E XE CU T I VE PRO FI LE
Ken Cowher, Vice President, Operations Ken Cowher joined Heath in 1992 as a Field Technician with a degree in Earth Sciences from Clarion University of Pennsylvania. Ken managed the Northeast Division for Heath for nearly twenty years and created a successful corporate culture that other regions in the company strive to imitate. After promotion in 2017 to Vice President of Process Improvement and Service Business Unit Support, Ken’s clear understanding of Heath’s values, corporate mission and excellent leadership skills made him the clear choice for another promotion to his current position. Ken is responsible for all aspects of our field service division including safety, training & development,
quality assurance and field operations.
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H E AT H C O N S U LTA N T S
238
“ The industry is really going through a major transition with emission reduction” — Jeff Tuttle, CEO, Heath Consultants J U LY 2 0 1 9
change, methane is one of the gasses that is of most concern – this gas can leak from any point along the chain. We’re trying to reduce that,” says Tuttle. Working from the well pad up, the company goes through various processes in moving and producing the gas which emits the most greenhouse gases. “The well head, the well and the tank battery which the oil is stored in are all prone to emitting the
239
gasses that come along with the oil.
exploring a lot of that with vehicles and
There’s quite a bit of focus, activity and
UAVs, with autonomy providing safety
research on gas detection and we are
inspections of these safety grids within
participating in that emerging technol-
these smart cities,” says Paul.
ogy,” Tuttle says. With Heath focusing on its digital transformation journey, the firm sees itself at the centre of a digital future. “Our company’s operations will us more
Your Safety...Our Commitment
fix sensor technologies and more autonomous type activities. We’ll be c a na da .busi ne ssc h ief. com
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