Business Chief North America - October 2020

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OCTOBER 2020

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INNOVATION LABS

DEFINING THE CULTURE OF A TRULY DIGITAL BANK

Patrick Sells, CIO, on why innovation shouldn’t stop at technology and the importance of culture

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FOREWORD

W

elcome to the October edition of

differentiates us from our competitors

Business Chief North America.

and will help us grow over the next few

T:297 mm

This month’s cover features Patrick

years,” comments Liot.

Sells, CIO at Quontic Bank, on such

Elsewhere in the magazine, we look

topics as the importance of culture in

at the benefits and best practices for

modern finance. “Quontic Bank believes

strategy consultants detailed by leading

in empowering its customers to take

consultants McKinsey and TCS. Thomas

control of their finances, recognising

Dieringer, President of JAGGAER EMEA,

that no person’s circumstances are the

meanwhile details the benefits, best

same as others and proving that better

strategies and the impact of COVID-19

solutions are available to those who

for cloud computing technology.

seek out innovation.”

In addition, we share insights into how

Other leaders that feature in the

organisations can establish an effective

magazine include Arun Shenoy, SVP

talent strategy, and this month’s Top 10

Global Sales & Marketing at Serverfarm,

looks at 10 of the top innovation labs

who discusses the history of the

in North America.

company as well as the current trends

Do you have a story to share? If you

and evolution of the data centre sector.

Also featuring is Romain Liot, Chief Operating Officer at AdoreMe, discussing his firm’s digital transformation journey in the fashion industry. “We are quick and agile, and embrace technology that enables us to deploy projects at scale. I feel this

would like to be featured in an upcoming issue of Business Chief North America, please get in touch at georgia.wilson@bizclikmedia.com Enjoy the issue!

Georgia Wilson b u s i n e s s c h i e f. c o m

03

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PUBLISHED BY

PRODUCTION MANAGER

Owen Martin DIGITAL VIDEO PRODUCERS

EDITOR-IN-CHIEF

Georgia Wilson EDITORAL DIRECTOR

Scott Birch CREATIVE TEAM

Oscar Hathaway Erin Hancox Sophie-Ann Pinnell Hector Penrose Sophia Forte PRODUCTION DIRECTORS

Georgia Allen Daniela Kianickovรก

Kieran Waite Sam Kemp MARKETING DIRECTOR

Leigh Manning

Justin Brand Ryan Hall Ben Maltby Mike Sadr Kris Palmer James Berry Stuart Irving Craig Killingback Thomas Livermore

DIGITAL MARKETING MANAGER

Shirin Sadr

MEDIA SALES DIRECTOR

James White

DIGITAL MARKETING EXECUTIVE

Kayleigh Shooter

DIGITAL MEDIA DIRECTOR

Jason Westgate

MANAGING DIRECTOR

Lewis Vaughan PROJECT MANAGERS

Michael Banyard Jake Megeary

CHIEF OPERATIONS OFFICER

Stacy Norman PRESIDENT & CEO

Glen White

b u s i n e s s c h i e f. c o m

CONTENTS

CIG CAPITAL: MAKING INVESTMENT ABOUT MORE THAN JUST MONEY

10

24

36 ESTABLISHING AN EFFECTIVE TALENT STRATEGY

46

Capgemini Financial Services: RegTech

Jaggaer: Cloud Computing – The Benefits and Best Strategies

Developing an Effective Social Media Strategy

72 84

58

INNOVATION LABS

102

114

Rapid7

Quontic Bank

136 Bell Canada

156 176 Serverfarm

Adore Me

194 Visions Federal Credit Union

210 Kettering Health Network

240 DC Blox

226 254 Mental Health Center of Denver

Afore Banorte

10

OCTOBER 2020

CIG Capital: Making Investment About More Than Just Money WRITTEN BY

WILL GIRLING PRODUCED BY

JAMES WHITE

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11

CIG CAPITAL

Charles D. Carey, Managing Partner of CIG Capital, describes the company’s ‘100% funding’ approach and why investment needs to modernize

L

earning to move with the changes in the global market has always been a cornerstone of successful investor strategies.

However, few companies were prepared for the dynamic, highly-creative and innovative thinking that is now a necessity in the post-COVID-19 world. As the ‘tried and tested’ methods give way 12

to digitally-enhanced, flexible and data-driven operations, Charles D. Carey, Managing Partner of CIG Capital, is emblematic of the new guard that is seeking to overturn prior conceptions of best practice in investment. A serial entrepreneur since his early twenties, Carey has held a considerable number of executive positions at companies within the technology, finance and healthcare sectors, in addition to founding two of his own: Venture 101 (in 2010) and Carey Holdings (2011).

Founded in 2016, CIG Capital is a group that aims to deliver alternative project investment, lending opportunities and a broad range of expert advice, courtesy of its component partners. Reflecting on the genesis of the company’s conception, Carey says, “When it comes to helping businesses, I’ve

OCTOBER 2020

13

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CIG CAPITAL

“ When it comes to helping businesses, I’ve always started from the beginning and then gone on to see how we can scale businesses” — Charles D. Carey, Managing Partner, CIG Capital

always started from the beginning and then gone on to see how we can scale.

That’s how I got into the finance world; I focused on how to help businesses, not just on the funding side, but with support too.” Believing that leadership means more than simply ‘status’, Carey takes a proactive approach and an indiscriminate attitude when it comes to helping clients achieve their best, regardless of the project’s scale or subject. “That’s really what gives me an advantage: I believe in a set of

14

principles and I don’t change them, no matter what the product or sector is.” Treating everyone from renowned business leaders to up-and-coming startup CEOs with the same level of respect, CIG Capital strives to foster each project’s individual journey.

This aspect, which has been termed ‘100% funding’, is ultimately what helps differentiate CIG Capital from its competitors. Rather than simply fund one stage of a project’s development, the company opts to provide the capital stack with one loan capable of sufficiently covering any seed money, equity or short-term debt. This subsequently allows CIG Capital to OCTOBER 2020

How is CIG Unique?

CLICK TO WATCH

|

1:13

15 coherently understand any associated

It’s a strategy that appears to have

risks and implement mitigations from

paid dividends: as of August 2020, CIG

the onset of the funding cycle. “We

Capital currently has a portfolio valued

want to bring the whole capital stack

in excess of US$10bn and Carey

under one roof, but we also want to

himself was recently accepted into the

solve problems when it comes to the

exclusive Forbes Finance Council.

organization as a whole. Funding is

When he considers the economic

only one element,” Carey explains.

upheaval that the pandemic has

“CIG Capital also offers support ser-

brought about, Carey stresses the

vices for executive leadership, which

importance of establishing a vision for

can create new revenue streams, as

the modernization of investment. If the

well as business consulting, go-to-

sector is to thrive in this new paradigm,

market strategies, and more. We don’t

he argues, a technologically savvy

just make sure a project is successful,

approach enabled by a cultural read-

we also lower the risk to our money.”

justment to ‘big picture’ thinking will be busi ne ssc hi ef . com

CIG CAPITAL

16

DI D Y O U K N O W?

•C harles D. Carey accepted into the Forbes Finance Council •A nnounced on 10 August 2020, Carey describes his admission to the invitation-only Forbes Finance Council executive community as “really exciting” and an honor.

• Scott Gerber, Founder of Forbes Councils, stated that the organization’s mission is “to bring together proven leaders from every industry, creating a curated, social

OCTOBER 2020

capital-driven network that helps every member grow professionally and make an even greater impact on the business world.”

• Selected and vetted by a review committee to ensure he met strict knowledge and expertise parameters in his field, Carey added, “I look forward to sharing my insights into the financial industry and how my team and I set out to change the financial lending industry.”

crucial. Automated data streams and

obtain a unique score which subse-

analytical capabilities are gaining trac-

quently informs the terms of each

tion in several data-rich industries, yet

individual venture. However, despite

the widespread application of these

this, Carey insists that half the battle

technologies remains diffuse. In this

to improve modern investment actually

aspect, he reasons, larger companies

lies in adopting new cultural frame-

should take note of fintechs in the

works. “In terms of modernization,

space, which generally have a more

investors need to change the way they

sophisticated understanding of mod-

address funding. I’m an entrepreneur:

ern tech, or else face technological

I love to teach and provide a message

irrelevancy. For its part, CIG Capital

that will solve problems. Finance is just

boasts one of the fastest underwriting

a tool, and although it’s an important

models in the modern industry, with

tool, you don’t need to be an expert.

seven project elements measured to

All you need to know is, ‘What’s the

E X E C U T I V E P R O FILE :

Charles D. Carey Title: Managing Partner

Industry: Financial Services

Location: Michigan, United States As the ‘tried and tested’ methods give way to digitally-enhanced, flexible and data-driven operations, Charles D. Carey, Managing Partner of CIG Capital, is emblematic of the new guard that is seeking to overturn prior conceptions of best-practice in investment. A serial entrepreneur since his early twenties, Carey has held a considerable number of executive positions at companies within the technology, finance and healthcare sectors, in addition to founding two of his own: Venture 101 (2010) and CIG Capital (2011). busi ne ssc hi ef . com

17

CIG CAPITAL

18

money going to do’ and ‘How’s it going

the company ensures that its high

to come back to us in a return’. That’s

standards, collaborative problem-

the most important part.” Therefore,

solving capabilities and focus are

CIG Capital’s approach emphasizes

maintained. According to Carey, the

finding the individual value in each

company’s unique culture also ena-

prospective venture and working tire-

bles it to fund demanding projects

lessly to develop it. For the company,

that generally could not be serviced

recouping invested funds occurs

by traditional lenders, such as banks.

simply as a natural consequence of

“CIG Capital can solve problems

this success.

creatively because we’re not in a

CIG Capital has codified this

restrictive ‘box’,” he states, in refer-

culture into three parts: hunger,

ence to the regulatory frameworks

humility and zeal. By adhering to

of other funding institutions. “We’re

these words as guiding principles,

not gambling with other people’s

OCTOBER 2020

“ That’s really what gives me an advantage: I believe in a set of principles and I don’t change them, no matter what the product or sector is” — Charles D. Carey, Managing Partner, CIG Capital

Stating that he doesn’t like to feel that he is “the smartest person in the room”, Carey emphasizes that having exceptional employees, colleagues

money; we’re providing 100% fund-

and partners is a strong component

ing, wherein the investee simply puts

of CIG Capital’s success, as well as

up collateral towards a project.” This

having the determination to find the

means that CIG Capital could, in

recipe for success in failure. “When

theory, fund a $5bn project by itself -

you work as a serial entrepreneur or a

a significant and rare advantage.

venture capitalist, you’re going to have

Workplace Culture CLICK TO WATCH

|

1:34

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19

CIG CAPITAL

CIG’s Vision for 2021 CLICK TO WATCH

20

OCTOBER 2020

|

2:16

“ Finance is just a tool [...] All you need to know is, ‘What’s the money going to do’ and ‘How’s it going to come back to us in a return” — Charles D. Carey, Managing Partner, CIG Capital

21

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CIG CAPITAL

a percentage of failure. However, I believe that achieving what we have today has been through those experiences,” he says. CIG Capital’s culture and pioneering approach are helping it establish a foothold in an industry beset by challenges, not least from more established competitors. However, when asked about the one near-universal challenge being experienced by the market (COVID19 disruption), Carey, on the contrary, states that the pandemic has actu22

ally brought several opportunities.

“Where others have shut their doors, we’ve actually opened ours because we look at the future, not just today.

CIG Capital is realistic and we know that business will make a comeback.”

“ The financial world needs to realize that investment is about more than money” — Charles D. Carey, Managing Partner, CIG Capital

In that spirit, Carey considers 2021 to be a year of opportunity, one which could lay the foundations for a larger and better economy. With plans to develop several projects in the US and grow its broker network into the thousands already underway, CIG Capital is launching itself wholeheartedly into finding new ways of putting ‘money to work’. “The financial world

OCTOBER 2020

23

needs to realize that investment is

and drive to forge a revolutionary,

about more than money,” Carey con-

new, culture-based approach to

cludes. “We all need to understand

investment will be crucial.

that money is a tool and how we use it for our clients and the projects that we’re investing in makes all the difference.” As CIG Capital continues to create the business opportunities of tomorrow in a rapidly shifting economic landscape, Carey’s leadership busi ne ssc hi ef . com

LEADERSHIP

24

McKinsey/TCS: Strategy Consultant Benefits & Best Practices WRITTEN BY

OCTOBER 2020

GEORGIA WILSON

25

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LEADERSHIP

Business Chief North America gains insight from McKinsey and TCS on strategic consulting best practices and benefits, as well as the impact of COVID-19

T

asked with partnering with organisations around the world to transform how they operate, integrate technology and build long

term capabilities, Kweilin Ellingrud, Senior Partner at McKinsey explains that “strategy consultants

26

help answer strategy questions such as: ‘What should our 3 to 5 year strategy be?’ or ‘How should we launch in this new market?’ The benefits of having a strategy consultant are that consultants can push your thinking, bring innovative ideas and a landscape survey of industries. Businesses typically use strategy consultants (or management consultants) when they are thinking about their long-term strategy, a new market entry, or when they are tackling a new area, such as how to use digital and analytics to grow their business.”

Agreeing with Ellingrud, Dave Jordan, Global Head of Consulting and Services Integration at TCS, comments that “one of the major benefits of employing the services of a strategy consultant is their ability to remain objective and impartial

OCTOBER 2020

27

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in front of a business’s adversity and potentially difficult personnel decisions for the future. A strategy consultant is able to analyse the overall structure of the company and identify cost-saving areas and ways to make processes more efficient; whether that is through innovative technology or new procedures and ways of working.” For instance, Jordan highlights that organisations have known for many years that software development has been essential for businesses to deliver exceptional customer service.

“However, delivering an agile IT function alone is no longer enough. This is where the services of a strategy consultant

WHAT I S A ST R AT EGY CO N SU LTAN T ?

A strategy consultant is an independent expert whose role it is to advise, guide and support an organisation through a period of change. Due to their impartiality, a strategy consultant can see the bigger picture, advise on opportunities, potential roadblocks and changes in an objective manner and bring in best practice guidance from the wider industry.

Dave Jordan, Global Head, Consulting & Services Integration, TCS

“ One of the major benefits of employing the services of a strategy consultant is their ability to remain objective and impartial in front of a business’s adversity and potentially difficult personnel decisions for the future” — Dave Jordan, Global Head, Consulting and Services Integration, TCS

busi ne ssc hief. com

29

LEADERSHIP

30

are beneficial for a business, support-

DEVELOPING AN EFFECTIVE STRATEGY

ing them to implement agile principles

When it comes to developing a busi-

and approaches throughout the

ness strategy, Ellingrud explains

organisation. As with all transforma-

that “an effective business strategy

tions, this can be a tall order. It involves

needs to be grounded in the mission

altering the DNA of the organisation,

of the company and the organisa-

and how it senses and responds to the

tion’s objectives. The strategy needs

marketplace. Asking every function in

to take into account the strengths

a large organisation to adopt new prin-

of the company in order to decide

ciples all at once is a huge undertaking

where to play and how to achieve

likely to produce both false starts,

success. Importantly, the strategy

occasional resistance, and cynicism.

also needs to articulate what the

Having this third party consultant can

company will not do and not focus

reassure the senior management of

on. We see that more dynamic and

an organisation that this is the right

frequent resource allocation, both

course of action.”

in terms of talent and capital, can

“ An effective business strategy needs to be grounded in the mission of the company and the organisation’s objectives” — Kweilin Ellingrud, Senior Partner, McKinsey

OCTOBER 2020

Accelerating digital capabilities to recover from the COVID-19 crisis CLICK TO WATCH

|

31:51

31

strategy is set, truly investing in your

THE IMPACT OF COVID-19 FOR STRATEGIC CONSULTING

best talent and critical capital, ver-

With industries around the world fac-

sus taking a peanut-butter-spread

ing widespread disruption due to the

approach with scattered and broad

impact of COVID-19 both Ellingrud

investments, is key to success.” With

and Jordan agree that “the COVID-19

this in mind it is important to “balance

pandemic has affected every single

aspirational and meaningful goals.

one of us and in every walk of business.

For example a company looking to

Strategic consultants have had to be

double the number of customers it

agile in their responsiveness, identify-

serves, needs to be balanced with a

ing short term trends that can deliver

very practical and achievable imple-

immediate business continuity and aid

mentation plan, as well as objective

recovery, while retaining focus on the

milestones to measure success

long term horizon, where highly adap-

along the way.”

tive companies and individuals will be

lead to better results, so once the

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LEADERSHIP

the big winners in the race to become part of the new generation of essential businesses,” comments Jordan. While strategic consultants have faced the same level of disruption as all other industries, Ellingrud does highlight that “at the same time, it has been striking how well and how fast many businesses and individuals, including consultants, adapted to this significant and rapid shift.”

32

T OP T H R E E T R E N D S I N S TR AT E G I C C O N S U LT I N G • While clients are asking for help to create change and drive transformation, strategy consultancy requires deeper industry and functional expertise such as, deep experience in areas such as digital growth strategy in retail, or oil and gas marketing • Stronger integration with key capabilities like digital and analytics • A number of companies are pushing for much broader and bolder transformations Kweilin Ellingrud, Senior Partner at McKinsey OCTOBER 2020

33

“ The benefits of having a strategy consultant are that consultants can push your thinking, bring innovative ideas and a landscape survey of industries” — Kweilin Ellingrud, Senior Partner, McKinsey busi ne ssc hief. com

LEADERSHIP

34

“ It is clear that organisations and individuals need to gear up for a period of fluidity in the new normal” — Dave Jordan, Global Head, Consulting and Services Integration, TCS

In order to combat this disruption Jordan adds that “just like the banks revolutionised in the 1990s and 2000s, competitive success will demand more than simply picking the most obvious decision in the now. Speed is key to success, but only if the result is a strategically aligned and collaborative model, enabled by highly integrated, streamlined systems and infrastructure.” Since the outbreak consulting companies have helped articulate the potential recovery scenarios from COVID-19, the implications for each industry and

OCTOBER 2020

has the ability to look at the situation from a purely objective point of view and advise on the best next steps.”

Looking to the future, Jordan explains that “given the unpredictable nature of the virus, it is difficult to pronounce definite economic and industry outcomes. But directionally, it is clear that organisations and individuals need to gear up for a period of fluidity in the new normal. Although current, short term needs have shifted, organisations need to continue building upon their strong digital technology foundations to pursue certain economic behaviours. These include a focus on purpose-centricity explore what the ‘reimagine phase’

with near term adaptability and resilience

might look like for each industry, as well

delivered through a strong digital foun-

as what things may need to change

dation.” Building on Jordan’s beliefs for

in the future. “In just a few short months

the future Ellingrud details that “Virtual

COVID-19 has changed the world. The

meetings and client interactions are

pandemic has had a worldwide impact,

likely to continue in the future, with regu-

creating a “new normal” unlike anything

lar communication and brainstorming

most of us have experienced in our

via videoconference continuing to be

lifetimes. This new reality has presented

an important focus.” However, “more

organisations with endless challenges

broadly, there will be a lot of focus on

and causes for concern. However, there

accelerating recovery with a dual focus

are new opportunities emerging from

on health and economics – protecting

this pandemic, that a strategy consultant

both lives and livelihoods.”

is able to identify. A strategy consultant busi ne ssc hief. com

35

TA L E N T S T R AT E G I E S

36

ESTABLISHING AN EFFECTIVE TALENT STRATEGY WRITTEN BY

OCTOBER 2020

GEORGIA WILSON

37

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TA L E N T S T R AT E G I E S

Business Chief North America shares insights into how organisations can establish an effective talent strategy

A

ccording to the Chartered Institute of Personnel and Development (CIPD), creating an effective talent management

strategy begins with workforce planning. This process entails analysis of the organisation’s current workforce, to determine its capabilities and

its future needs. With this in mind CIPD highlights 38

that following this analysis there are typically two approaches that an organisation will take – exclusive and inclusive.

An exclusive approach segments talent to reflect an organisation’s needs, and is specific to key individuals. However, in recent years, the use of an inclusive approach has become more common. This approach focuses on the workforce as a whole, driving engagement and talent development. While some organisations use one or the other, often a combination of the two approaches is preferred.

“Regardless of which approach organisations adopt, fairness and consistency must be applied in all talent management processes, alongside diversity and inclusion considerations. Not ‘joining-up’

OCTOBER 2020

39

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41 approaches to talent management

In a recent study conducted by

programmes with diversity policies and

McKinsey, the company identified

activities, can mean an organisation

a significant relationship between

fails to reap the benefits of accessing

effective talent management and

and developing talent from the widest

organisational performance. Among

possible pool,� says CIPD.

those that had a very effective strategy,

It also notes: “As talent manage-

99% believed that they outperform

ment operations continue to face

their competitors, compared with 56%

challenges with the rise in skill gaps,

of others that did not have an effective

operating in tight labour markets,

strategy. In addition, companies that

and the rise of remote working due

had a very effective strategy were six

to COVID-19, the new talent reality

times more likely than those with an

means organisations must pay more

ineffective strategy to report a higher

attention to developing talent rather

total return to shareholders (TRS)

than buying it in.

than their competitors. busi ne ssc hief. com

TA L E N T S T R AT E G I E S

Talent Management | LinkedIn Learning - What is a talent management strategy?

CLICK TO WATCH

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3:53

42

OTHER KEY BENEFITS INCLUDE: • Meaningful work and growth opportunities • A high-performance workplace

down into six key elements: attracting, identifying, developing, engaging, retaining and deploying.

When it comes to attracting talent, it

• Driving a continuous learning culture

is important that organisations develop

• Adding further value to the employee

an attractive brand and employee value

value proposition

proposition, in order to gain the interest

• Driving diversity and inclusion

of potential applicants. How an organisa-

• Increased productivity

tion is viewed by the industry and the

• Access to human capital data to

public can dictate its ability to attract

drive better business decisions

talent. In order to identify the right talent, it is important for organisations to

In order to develop an effective strategy, CIPD breaks the strategy OCTOBER 2020

identify the business critical roles with succession plans, to ensure that a

TOP F O U R 2 0 2 0 T AL E N T T R E N D S

1. Employee experience 2. People analytics 3. Internal recruiting

While these first four elements help to get talent through the front door, to see continuous benefits it’s important to invest in development activities to retain talent and reduce employee turnover. Other

4. Multi-generational workforce

retention tools can include rewards

Source: LinkedIn

and recognition. CIPD explains that one of the most effective elements of a strategy is deploying talent.

critical role isn’t left unfilled for any length of time, leading to potential vulnerabilities. Organisation should

Gillian Campbell 43

then focus on talented individuals in the organisations to develop future potential and talent pools. To develop talent, CIPD identifies that talent development should be both formal and informal: “participants on talent management programmes tend to value coaching and mentoring, and networking particularly highly, especially the opportunity to meet and engage with senior people in the organisation,” notes CIPD. When it comes to driving productivity, organisations that engage with their employees, providing good quality jobs, experience and management, experience higher performance and motivation. busi ne ssc hief. com

TA L E N T S T R AT E G I E S

44

“Organisations must understand

RAPID ALLOCATION OF TALENT

where their skills gaps lie to plan the

In the study conducted by McKinsey,

training required and deploy identified

just 39% of respondents believed that

talent with job rotations, skill enhance-

their organisation was fast or very fast

ment opportunities, training, additional

at reallocating talent. Deployment

qualifications, leading on special

of talent is a key element of talent

projects, and secondments to aid pro-

strategy, and leads to a 1.4 times

gression and growth,” it concludes.

greater likelihood of outperformance.

Supporting CIPD’s strategy break-

McKinsey emphasises that the link

down, McKinsey’s report identifies

between rapid allocation and effec-

three parts of an effective talent man-

tive talent management is strong.

agement strategy: rapid allocation

“Nearly two thirds of the fast allocators

of talent, executive team involvement

say their talent management efforts

and strategic HR teams.

have improved overall performance,

OCTOBER 2020

45

compared with just 29% of their

allocation at least once per quarter,”

slower-moving peers.”

highlights McKinsey.

EXECUTIVE TEAM INVOLVEMENT

STRATEGIC HR TEAMS

Another key driver is the involvement

The third key driver identified by

of the executive team. Among the

McKinsey entails a strategic HR team

respondents, those that had involve-

that understands the organisation’s

ment from their leaders were 3.4 times

strategy and priorities. “When respond-

more likely to report that their organi-

ents say their organisations have a

sations are rapidly allocating talent.

strategy-minded HR team, they are 1.4

In addition to the number of leaders

times more likely to report outperform-

involved having an impact, “at organi-

ing competitors and 2.5 times more

sations that quickly reallocate talent,

likely to report the effective manage-

executive teams usually review talent

ment of talent,” concluded McKinsey. busi ne ssc hief. com

C O R P O R AT E F I N A N C E - R E G T E C H

46

OCTOBER 2020

Capgemini Financial Services: RegTech 47 WRITTEN BY

GEORGIA WILSON

busi ne ssc hief. com

C O R P O R AT E F I N A N C E - R E G T E C H

Business Chief speaks to Elias Ghanem, Head of Market Intelligence, Capgemini Financial Services, on the capabilities of RegTech and the impact of COVID-19 WHAT IS REGTECH? RegTech is defined as the management of regulatory processes in the finance industry with the use of technology. Its main functions include regulatory 48

monitoring, reporting, and compliance via the use of cloud computing technology and software-asa-service (SaaS) to help businesses comply with regulations. Other technologies used within the industry include: Big Data, real time analytics, artificial intelligence, automation and Blockchain.

Within the industry, Deloitte believes that “RegTech promises to disrupt the regulatory landscape by providing technologically advanced solutions to the ever increasing demands of compliance within the financial industry.”

“ RegTech promises to disrupt the regulatory landscape” — Deloitte

OCTOBER 2020

49

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With such promise emanating from the industry, the consultant company defines the five key focus areas: 1. Regulatory reporting: allowing the industry to automate data distribution and regulatory reporting process via big data analytics, real time reporting and cloud.

2. Risk management: provides the industry with the ability to detect

“ Between 2009 and 2012, 50,000 new financial sector regulations were implemented between this period, which doubled further by 2015� — Elias Ghanem, Head of Market Intelligence, Capgemini Financial Services

compliance and regulatory risks, assess risk exposure and antici51

pate future threats.

3. Identity management and control: to facilitate counterparty due diligence and know your customer (KYC) procedures. The capability also helps with anti money laundering (AML) and anti-fraud screening and detection.

4. Compliance: provides the capability to monitor and track the current state of compliance and upcoming regulations in real time.

5. Transaction monitoring: provides real time transaction monitoring and auditing solutions that leverage Blockchain and cryptocurrency technology. busi ne ssc hief. com

C O R P O R AT E F I N A N C E - R E G T E C H

TOP THREE TRENDS IN THE REGTECH INDUSTRY

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Investments to increase: During Q1-Q3 2019, RegTech reported 103% YoY growth. 2020 will most likely witness the same momentum as corporate data breaches, consumer privacy concerns, and a wave of new GDPR-like regulations will create demand for technology tools that help enterprises meet compliance challenges.

Scaleups to lead: 2020 is expected to witness the RegTech companies move out of the innovation phase and focus on industrialisation of concepts.

OCTOBER 2020

With banks struggling with lower profitability and high cost pressures, scaleups in the RegTech industry are expected to witness higher traction.

AI at the forefront: Use of specialised, emerging and advanced technologies, such as AI, robotics process automation, and data analytics is poised to gain more traction.

Elias Ghanem, Head of Market Intelligence, Capgemini Financial Services

When it comes to the best strategy

needs for the outcome, the adoption

for adopting these RegTech solu-

strategy will vary from bank to bank.

tions, Elias Ghanem, Head of Market

“In most cases it has to be a mix of the

Intelligence, Capgemini Financial

three methods.”

Services explains that “there is no

However, with the recent outbreak

one size fits all strategy for banks and

of COVID-19, Ghanem details that

other financial institutes to choose

“the tendency at corporate level dur-

the way to adopt RegTech. They have

ing uncertain scenarios is to reduce

three methods to choose from – Build

big ticket investments. Thus, financial

(internally in-house), Buy (acquire

service firms will be keen to collabo-

a RegTech firm), or Collaborate.”

rate rather than building solutions

Depending on their internal capabil-

themselves, in order to speed up the

ity, time and resource availability, and

process and cut losses emerging out

the autonomy and differentiation

of managing risk and compliance.”

Explore the frontiers of the RegTech Universe CLICK TO WATCH

|

2:29

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C O R P O R AT E F I N A N C E - R E G T E C H

WHAT ARE THE BENEFITS OF REGTECH? When it comes to the benefits of RegTech, Ghanem details that, “banks are struggling to keep up. Between 2009 and 2012, 50,000 new financial sector regulations were implemented between this period, which doubled further by 2015. In such a scenario, RegTechs offer multiple benefits.”

Such benefits include process improvements, “RegTechs standardise and automate processes, making them clearer and better defined. As a 54

result they reduce internal operational risks by minimising the possibility of incurring violations related to human error,” notes Ghanem. Other benefits include cost synergies. With one third of banks looking to expand their compliance teams and two thirds looking to increase their budget, Ghanem highlights the expectation that “RegTechs will help banks to drive cost optimisation. For instance, utilising RegTech to automate KYC checks could result in US$1bn cost savings for banks by 2024.” In addition to process improvements and cost synergies, “RegTech solutions can also decrease the processing time, thus helping the banks to OCTOBER 2020

“ RegTechs standardise and automate processes, making them clearer and better defined” — Elias Ghanem, Head of Market Intelligence, Capgemini Financial Services

T O P 1 5 R E G T E C H C O M PA N I E S

Regulatory reporting Alessa April Software AQMetrics Risk management 360factors Albany Group AlgoDynamix Identity management and control Accuity Actimize Agreement Express Compliance 6clicks 8of9 Abside RegTech Transaction monitoring Analyze N Control Allagma Technologies Alto Source: Deloitte

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55

C O R P O R AT E F I N A N C E - R E G T E C H

offer seamless and improved experiences to their customers,” he explains.

However, Ghanem details that while there are many benefits, RegTechs do come with their own set of challenges which shouldn’t be overlooked. “A key challenge in adopting RegTech is data security, followed by integration issues.” According to Capgemini’s World Retail Banking Report 2020, over 70% of banking executives highlighted data-related security concerns as a challenge to collaboration.

56

“ Due to the pandemic, there has been an uptick in financial fraud and call spoofing.

In the United States alone, high-risk calls were up by 30% after three weeks starting March 16” — Elias Ghanem, Head of Market Intelligence, Capgemini Financial Services

THE IMPACT OF COVID-19 ON THE FINANCIAL AND REGTECH INDUSTRY “While COVID-19 has brought about uncertainty in all businesses,” and has certainly “impacted the funding of startups in different sectors including RegTech firms.” Ghanem believes that overall, “RegTechs seem poised to gain from this disruption. Due to the pandemic, there has been an uptick in financial fraud and call spoofing.

In the United States alone, high-risk

OCTOBER 2020

57

calls were up by 30% after three

led to a proliferation of RegTechs and

weeks starting March 16. Thus, banks

the increasing interest in firms spe-

and other financial service institutions

cialising in regulatory and compliance

will be keen to rely on RegTech for

solutions. This trend is now acceler-

robust regulatory systems to monitor

ated due to COVID-19, with executives

market activity and swiftly act on non-

of financial service firms feeling that

compliant or fraudulent transactions.�

risk and compliance are the most

In addition “with changing regulatory

important focus areas post COVID-19

scenarios such as the GDPR and

for sustainable business growth (67%),

evolving compliance requirements,

indicating the importance of identify-

incumbents have been exploring

ing threats and being prepared to

ways to adapt in real time. This has

ensure business continuity.� busi ne ssc hief. com

S O C I A L M E D I A S T R AT E G Y

Developing an Effective Social Media Strategy WRITTEN BY

58

OCTOBER 2020

GEORGIA WILSON

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S O C I A L M E D I A S T R AT E G Y

Business Chief takes a look at how organisations can develop an effective social media strategy, and the benefits of having one

A

ccording to Deloitte, every minute over

4mn people in the world ‘like’ a post on Facebook, more than 1.5mn on Instagram

and 350,000 on Twitter. Combine these figures

60

with the continuously advancing capabilities of smart technology and connectivity, along with the development of 5G, social media channels are increasingly becoming a point of contact for customers and brands. “To meet these expectations, companies must adapt to the requirements of clients and adjust their social communication to current trends. If they fail to do so, consumers will simply enter into a dialogue with another brand,” says Deloitte.

WHY DEVELOP A SOCIAL MEDIA STRATEGY? There are many reasons why organisations should develop a social media strategy. The channels are not just for posting; they are also a useful platform to drive advertising, marketing, communication and sales.

OCTOBER 2020

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“ Companies must adapt to the requirements of clients and adjust their social communication to current trends, if they fail to do so, consumers will simply enter into a dialogue with another brand” — Deloitte

In its report, Deloitte details that a dedicated social strategy will allow organisations to: • Plan content • Develop and maintain a brand identity, as well as distinguish that identity from potential competitors • React to potential crises • Increase competitor visibility • Build customer loyalty

HOW TO BUILD A SOCIAL MEDIA STRATEGY When it comes to building an effective social media strategy, Deloitte and Hootsuite highlight four key elements for building a social media strategy.

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S O C I A L M E D I A S T R AT E G Y

64

Aligning the strategy with the overall business goal

Understanding the audience and the competition

Whether an organisation’s goal

When implementing a social media

is to improve customer support,

strategy it is important to use the

or drive sales via marketing,

data available, as “knowing who your

Hootsuite explains that “the first

audience is and what they want to

step to creating a winning strategy

see on social media is key,” notes

is to establish your objectives and

Hootsuite. While many would believe

goals. Without goals, you have no

Facebook is ideal for reaching Baby

way to measure success and return

Boomers, Hootsuite reports that

on investment (ROI).”

there are more millennials than Baby

The best way to achieve this is by

Boomers on the platform. Therefore,

establishing S.M.A.R.T goals that are

understanding who is using what plat-

Specific, Measurable, Attainable,

form and what they want to see is vital

Relevant and Time sensitive.

for an effective strategy.

How to Create a Successful Social Media Strategy CLICK TO WATCH

OCTOBER 2020

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2:02

V I S A’ S T O P 6 G U I D E L I N E S F O R D E V E L O P I N G O R I M P R O V I N G A S O C I A L M E D I A S T R AT E G Y I N F I N A N C E

1. Create content that describes account services such as account security, financial planning and changes to existing products 2. Partner with bloggers, journalists or influencers to promote your brand 3. Develop and promote materials that educate consumers on initiatives, thought leadership and educational resources

4. Ensure your content is optimised for each channel 5. Use consistent voice, tone and messaging across all communications and marketing 6. Drive positive conversations about your financial institution through proactive consumer outreach 65

“ The first step to creating a winning strategy is to establish your objectives and goals” — Hootsuite

Part of developing a social media strategy should also involve competitor analysis. Hootsuite explains that

While each platform has its own

this is an easy way to identify what

rules, Deloitte highlights that it is also

works and what doesn’t on social

important to have coherence on every

media for a given sector.

platform, avoiding discrepancies. calling the hotline, contacting via the

Maintaining regular communication for each platform

form on the website, writing a letter

Having a social media presence brings

or making a phone call to Messenger,

a certain level of responsibility as an

the message must be coherent.”

organisation. In Deloitte’s report, the

“Regardless of whether the client is

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S O C I A L M E D I A S T R AT E G Y

66

company stresses the importance of

Evaluating and adjusting the strategy

not neglecting an account. “Lack of

Once a strategy is developed and

regularity will give the impression

implementation begins, it is vital that

of a lack of professionalism and can

organisations track and analyse the

be taken as a disregard for its own

results of the strategy. Hootsuite

clients.” Both Deloitte and Hootsuite

highlights that “you can’t assume

explain that a content calendar can

you’ll get it exactly right on the first

help maintain regular publishing.

try. As you start to implement your

OCTOBER 2020

67

plan and track your results, you may find that some strategies don’t

THE TOP BENEFITS OF DEVELOPING AN EFFECTIVE SOCIAL MEDIA STRATEGY

work as well as you’d anticipated, ter than expected.” As a result it is

Brand awareness, brand loyalty and brand authority

important to analyse, re-evaluate,

Blue Fountain Media, a digital mar-

test and refine the strategy based

keting agency in New York, explains

on the outcome.

that social media is one of the most

while others are working even bet-

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S O C I A L M E D I A S T R AT E G Y

“ Lack of regularity will give the impression of a lack of professionalism and can be taken as a disregard for its own clients” — Deloitte cost-efficient digital marketing methods to increase a brand’s visibility.

“Implementing a social media strategy will greatly increase your brand recog68

nition since you will be engaging with a broad audience of consumers.”

The agency reports that by investing only a few hours per week, 91% of marketers said that their social marketing efforts significantly increased their exposure.

Brand loyalty, brand authority and

communicate directly with the business”, says Blue Fountain Media. The

customer satisfaction are typically

company also adds that “regularly

intertwined. As such, the importance

interacting with customers demon-

of regular engagement with custom-

strates that your business cares about

ers and developing a bond is crucial.

customer satisfaction, and is available

“Social media is not just limited to

to answer any questions that they might

introducing your brand’s products

have. Satisfied customers are eager to

and promotional campaigns.

spread the word about a great product

Customers see these platforms as

or service and they usually turn to

a service channel where they can

social media to express their opinion.”

OCTOBER 2020

your marketing mix is a gateway to your website, and every piece of content you post is another opportunity to acquire a new customer,” says Blue Fountain Media.

While social media doesn’t directly improve SEO ranking, Social Media Examiner reports that more than 58% of marketers using social media for one or more years see improved search engine rankings. “Being able to rank in the top positions for your keywords will revolutionise your traffic and continue to generate positive results for your business,” adds Blue Fountain Media.

Higher conversion rates and better customer satisfaction Increased traffic and improved SEO ranking

With the increased visibility gained

By harnessing social media platforms,

ence, every blog post, image, video, or

organisations can expand their reach,

comment could lead to a view on an

instead of limiting their inbound traf-

organisation’s website and increase

fic to direct or search engine traffic.

the traffic. “Over 51% of marketers

“Without utilising social media as part

claimed that taking the time to develop

of your marketing strategy, you’ll have

relationships with consumers showed

much more difficulty reaching anyone

positive results in sales. The better

outside of your loyal customer circle.

impression you make on a visitor, the

Every social media profile you add to

more likely they are to think of your

from creating a social media pres-

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69

S O C I A L M E D I A S T R AT E G Y

“ Regularly interacting with customers demonstrates that your business cares about customer satisfaction” — Blue Fountain Media

70

OCTOBER 2020

business when the need for your

Finally, establishing a social media

product or services arises. Studies

presence creates a voice for organi-

have also shown that social media

sations and humanises the brand.

has a 100% higher lead-to-close rate

“Customers appreciate knowing that

than outbound marketing,” notes Blue

when they post comments on your

Fountain Media.

pages, they will receive a personalised response rather than an automated message. Being able to acknowledge each comment shows that you are attentive of your visitors’ needs and aim to provide the best experience.”

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CLOUD COMPUTING

72

Jaggaer: Cloud Computing – The Benefits and Best Strategies WRITTEN BY

OCTOBER 2020

GEORGIA WILSON

73

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CLOUD COMPUTING

Business Chief speaks to Thomas Dieringer, President of JAGGAER EMEA on the benefits, best strategies and the impact of COVID-19 for cloud computing

W

hen cloud computing first entered the mainstream in the late 90s, Thomas Dieringer, President of JAGGAER

EMEA saw several definitiations for the technology and its application. “Oxford Dictionaries defines cloud computing as using a network of remote servers hosted on the Internet to store,

74

manage, and process data, rather than a local server or a personal computer,� he states.

One of the significant benefits of cloud computing detailed by Dieringer is the capacity for individuals to log on to a system any place in the world and work on documents, pitches, business opportunities or approve multi-million-dollar contracts.

Other key benefits of the technology are centered around cost, performance, security, speed, productivity, and reliability. “From a cost perspective, the initial expense of setting up hardware and software can be eliminated, as can the need for large onsite data centres. The cost associated with running these can be pervasive when you consider 24-hour electricity and cooling, a team of experts, and the

OCTOBER 2020

75

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“ Companies that invest in big data, cloud, mobility, and security enjoy up to 53% faster revenue growth than their competitors” — Thomas Dieringer, President, JAGGAER EMEA

areas should be considered for successful implementation and usage.

Some considerations include expertise and compliance - which have grown in prominence in recent years - governance, and migration.”

With “companies that invest in big data, cloud, mobility, and security enjoy up to 53% faster revenue growth than their competitors,” a large number of companies are investing and implementing the technology within

various servers. Performance-wise,

their operations benefiting from cost

cloud computing runs on a network

savings, increased collaboration, quality

of secure data centres, using the lat-

control, and loss prevention, Dieringer

est, and fastest, computing hardware.

also notes that, “during COVID-19 it

This also promotes higher speed,

has also proved imperative from a dis-

with companies able to access vast

aster recovery perspective, ensured

amounts of resources. At the same

automatic software updates, and

time, from a productivity perspective,

perhaps most importantly, created

IT teams are less restricted due to not

a competitive edge.”

having to deal with large amounts of

for greater continuity and can also

THE BEST STRATEGY FOR ADOPTING CLOUD COMPUTING TECHNOLOGY AND THE IMPORTANCE OF THE RIGHT WORKPLACE CULTURE AND MINDSET

help reduce costs.” However, with

When it comes to adopting cloud com-

these benefits Dieringer notes that

puting technology, Dieringer explains

while “the benefits of cloud computing

– using procurement as an example

far outweigh the challenges, certain

– that first and foremost “instead of

hardware,” comments Dieringer, adding that, “using the cloud is also more reliable. Backup and recovery allows

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77

CLOUD COMPUTING

“ The very essence of cloud computing is the ability to adapt to current market conditions by being agile and have the ability to up or downscale as the business requires” — Thomas Dieringer, President, JAGGAER EMEA

sinking time, money and resources

into developing a solution to cover all existing processes, procurement can get more out of new software solutions by first delivering a Minimum Viable Product (MVP) that covers

78

TOP FI V E C LOUD COM PU T I N G T R EN D S IN 2020

1. Multi and hybrid cloud environments will continue to grow 2. Retaining compliance in an increasingly complex environment 3. Organisations will make it a priority to control cloud costs 4. Solution-focused partners

roughly 70% of the essential business requirements and processes first.

Once the team has started working with the new SaaS solution, you can strategically evaluate which of the remaining 30% of your processes you would like to cover.”

The next key aspect that Dieringer believes is worth remembering is that “implementation projects may take several months to complete. By focusing on achieving quick wins first, you and your team will be able to see the cost savings, a return on your investment, sooner.” In addition, in order

5. A Continued shift to tech on demand

“to avoid a low user acceptance rate

Source: VNT

project managers need to manage employee expectations with internal project marketing. Deliver an MVP and

OCTOBER 2020

The JAGGAER ONE Platform CLICK TO WATCH

|

2:21

79 make it clear that this is not the final

method that can help contain costs

product; elicit input from stakeholders

and reduce risks based on the ‘win

and users and build their suggestions

fast or fail fast’ principle.”

into the next iteration of the project.”

Ultimately Dieringer highlights

Circling back to an early part in Dieringer’s best strategy for cloud

that “digital transformation is about

computing adoption, he further

more than digitising existing manual

reiterates the importance of hav-

processes. Every function and depart-

ing the right mindset and culture.

ment that will be working with the final

“Approaching a large IT implemen-

solution should be included in both the

tation project can be a daunting

initial discussion and the subsequent

prospect. In addition to managing

sprint reviews. Finally to ensure that

the expenses, timelines, logistics

implementation projects stay on time

and vendors, you have to consider

and within budget, it is important

change management and user

to choose the right implementation

expectations. To overcome many of busi ne ssc hief. com

CLOUD COMPUTING

the issues, first look to gain valuable input from actual end users during the design phase of a new IT project.

By getting a more accurate understanding of what end users need from a solution not only can you set expectations accordingly, you can also reach all of your goals more quickly.”

Dieringer goes on to explain that while “making sure you have the right team available to handle a project might seem like an obvious requirement, it can often go overlooked. Having the 80

right size team is only half the battle. The second step is ensuring that you have the right people filling those seats. Keeping the team small and powerful can keep projects moving quickly without overworking individuals or overcomplicating staff meetings.

Finally, focus on the outcomes, not internal history, politics, or processes to ensure successful implementation.

Use best practice examples, advice from experts, and partners with experience within the industry to support your implementations. To avoid restricting the development and the financial investment associated with it, refrain from looking inward to the organisation.”

OCTOBER 2020

81

“ To avoid a low user acceptance rate project managers need to manage employee expectations with internal project marketing” — Thomas Dieringer, President, JAGGAER EMEA busi ne ssc hief. com

CLOUD COMPUTING

TO P F OUR GA RT N ER TREN D S I M PACT I N G THE AD OP T I ON C LOUD C OM P UT I N G

1. Cost optimisation will drive cloud adoption 2. Multicloud will reduce vendor lock-in 3. Insufficient cloud IaaS skills will delay migrations 4. Distributed cloud will support expanded service availability 82

Source: Gartner

THE IMPACT OF COVID-19 FOR THE CLOUD COMPUTING INDUSTRY

infrastructure. Throughout the world,

When it comes to the impact of

result of COVID-19, regardless of the

COVID-19 for the cloud computing

industry, was the supply chain. Those

industry, Dieringer highlights that “there

directly responsible for the supply

has undoubtedly been an enormous

chain are those within the procure-

spike in the use of cloud computing as

ment and supply chain department.

a result of COVID-19. You only have

An extra barrier for those organisa-

to look at the uptick in the number

tions operating on-premise ERP, was

of people and companies using tools

the implementation of remote working

such as Microsoft Teams or Zoom,

conditions, resulting in many people

to appreciate just how much of an

unable to access their organisation’s

impact this will have had on cloud

network. The very essence of cloud

OCTOBER 2020

one of the largest areas impacted as a

computing is the ability to adapt to current market conditions by being agile and have the ability to up or downscale as the business requires.

Organisations considering implementing a cloud-based system or upgrading will almost certainly be looking to do this as a priority now.”

As with any major disaster, Dieringer details that while short term digital strategies and transformation projects may be put on hold in order to focus on the prevention of COVID-19, looking to the future Dieringer believes that “companies will take time to take stock and develop new plans and strategies to begin the first tentative steps to recovery,” and “cloud computing will

“ There has undoubtedly been an enormous spike in the use of cloud computing as a result of COVID-19”

play an essential role in that recovery.

For companies already adept at using cloud, they will look at additional ways of utilising it further. Those yet to embrace will undoubtedly implement the many cost savings, and ease of working it affords.”

— Thomas Dieringer, President, JAGGAER EMEA

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T O P 10

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OCTOBER 2020

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Innovation Labs in North America Business Chief North America takes a look at 10 of the top innovation labs in North America

WRITTEN BY

GEORGIA WILSON

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T O P 10

86

10

Walmart Labs

Established by Walmart in 2005, Walmart Labs strives to help organisations grow ideas from the incubation stage through to international scale. Walmart labs strives to develop industry-changing innovations that make in-store and online shopping a more seamless experience.

Walmart labs provides an open-source approach that offers flexibility and freedom to its users to own their own code, as well as the ability to move quickly towards cost-saving solutions.

OCTOBER 2020

09

Coca Cola – KOlab

Coca Cola’s KOlab is a high-tech facility for the development of collaborative business plans and innovation for retail and restaurant customers.

The innovation lab is designed to help Coca Cola’s customers navigate the shopping and dining landscape. In the space, teams can explore trends, insights and opportunities via its virtual reality (VR) digital immersion room. “KOlab helps us build relationships with our valued customers and work with them to uncover ideas that will grow both their business and ours,” commented Robin Perry, general manager of KOlab.

87

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89

08

Volkswagen Automotive Innovation Labs

Volkswagen Automotive Innovation Labs provide state-of-the-art vehicle research facilities and community space to advance vehicle technology, with a focus on mobility solutions. In the building, the company conducts high-profile Stanford projects that focus on drive by wire and driver assistance systems, as well as research vehicles that use deep learning and computer vision to automate the driving process. The lab also conduct research into how drivers interact with vehicles, and into the design, building and racing of the latest competition vehicles.

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T O P 10

07

Verizon 5G Labs

Established by telecommunications company Verizon, the Verizon 5G labs work with startups, education centres and enterprises to drive a 5G-powered world. “We work on 5G trials, hackathons, industry partnerships, prototyping challenges and more,� says Verizon.

Verizon 5G labs form unique partnerships on different levels, bring together existing technology and new solutions. In total, Verizon has 5G labs in six key innovation hubs in the United States and Europe.

90

OCTOBER 2020

06

91

Amazon Lab126

Established in 2004, Amazon aspired to innovate the physical book, making it easier than ever for customers to discover and enjoy books.

With this in mind, Gregg Zehr, then the vice-president of hardware engineering at Palm Computing, formed a small team which became Amazon Lab126. The origin of the name Lab126 comes from the arrow in the Amazon logo, which draws a line from A to Z. In Lab126, the 1 stands for A and the 26 stands for Z. This subsidiary of Amazon is an innovative lab for research and development. In 2007 Amazon Lab126 launched the first Kindle. Since then the team has expanded rapidly, developing a wide variety of new and innovative products.

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To learn more about the American Express Corporate Program, visit www.americanexpress.com.

T O P 10

05

Google X

Established by Google, Google X is an innovation lab that strives to create radical technologies to solve some of the hardest problems in the world. Google X ‘s diverse group of investors and entrepreneurs strive to not only make a 10% improvement; the innovation lab aspires to have a 10-times impact on world problems. “We approach projects that have the aspiration and riskiness of research with the speed and ambition of a startup,” says Google X.

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T O P 10

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04

IBM Garage

Defined by IBM in two words, IBM Garage is a transformation accelerator. IBM Garage helps enterprises to accelerate and work more like startups. “The IBM Garage experience seamlessly blends business strategy, design and technology into a single end-to-end journey,� says IBM Garage. IBM Garage strives to help other organisations realise measurable business value through innovation projects, cultural changes, co-creation and the momentum of innovation to drive digital transformation. IBM provides expertise in design, architecture, agile development, data science, AI technologies, automation, blockchain, security and hybrid cloud.

OCTOBER 2020

03

Capital One Labs

Founded in 2012, Capital One Labs explores “the intersection of emerging technology and finance.” Its labs build innovative products, consumer experiences and engineering solutions to drive Capital One as a leader within the industry, and to improve the lives of its customers. Capital One Labs was designed to allow for prototype making and design thinking.

Capital One Labs has offices in Washington D.C. and New York City. “We bring together diverse perspectives to solve big problems. We elevate each other, stand for each other’s success, and build a culture of trust and mutual respect.”

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6 Ways to Reduce Complexity and Unleash Speed

Combining on-premises IT resources with cloud brings unparallelled flexibility and scalablity to your business – but the resulting hybrid IT environment introduces complexity and obstacles that can create operational friction and slow you down

Bring speed and agility to your business: Here are 6 ways HPE software-defined and hybrid cloud solutions remove IT friction across your hybrid environment so you can streamline operations and accellerate business innovation.

Software-defined intelligence

Composable infrastructure

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Flexible, pay-per-use options give you a clear picture of usage and how it’s being consumed.

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T O P 10

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02

Mastercard Innovation Lab Inspired by its vision to develop a world without cash, Mastercard Innovation Lab harnesses its technology and expertise to make payments safe, simple and smart. By operating one of the world’s fastest payment processing networks, Mastercard’s Innovation Lab connects consumers, financial institutions, retailers, governments and businesses and is built on four values: Trust: acting with integrity, respect and openness Partnership: working as one team Agility: delivering value via rapid innovation and execution Initiative: taking bold and thoughtful action to deliver results

OCTOBER 2020

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Mastercard Labs for Financial Inclusion CLICK TO WATCH

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3:50

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T O P 10

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Citi: Meet Some of the Team from Citi’s Innovation Labs CLICK TO WATCH

OCTOBER 2020

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5:45

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CitiGroup – Global Innovation Lab Established by CitiGroup, Global Innovation Lab drives organic innovation in the financial and investment sector.

CitiGroup’s Global Innovation Lab strives to establish a digital future by building on its strong legacy of innovation and a unique global network.

As part of its effort to drive innovation, CitiGroup’s Global Innovation Lab partners with strategic fintechs to cocreate and provide its clients with the best solutions, by combining new and emerging skills with its banking expertise.

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OCTOBER 2020

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Rapid7 NICER – starting a conversation on internet security WRITTEN BY

WILL GIRLING PRODUCED BY

GLEN WHITE

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RAPID7 – NICER

Tod Beardsley, Director of Research at Rapid7, outlines the company’s recently released NICER report and why everyone can do better on online security

T

here has never been a more opportune moment than now to discuss internet security: the COVID-19 pandemic has

forced many companies and individuals to reconsider their basic operations, reimagine manual processes and also vindicated the effectiveness 104

of remote working. A consequence of the modern world’s reliance on digital technology is the nearconstant vigilance required to ensure its integrity; far from being a static issue which can be addressed satisfactorily with yesterday’s tech, a spirit of innovation and honest critical evaluation is required to understand and remedy the underlying problems which threaten to disrupt us. To spur on a debate and engage developers, regulatory authorities and the wider community, security specialist Rapid7 has released NICER 2020 (National / Industry / Cloud Exposure Report), the most comprehensive census of the modern internet risk landscape ever completed.

Speaking to us on Zoom with a background representing a visualised ‘map’ of the internet,

OCTOBER 2020

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RAPID7 – NICER

Confessions of a Former CISO: Shaming People for Bad Security CLICK TO WATCH

|

5:40

106 Tod Beardsley, Director of Research

the effect of the global pandemic on

at Rapid7, emphasises that NICER is an

internet security, which, Beardsley

attempt to spur the world into affirmative

states, was surprising. “We were plan-

action, “We’re hoping that this report

ning things out in January and February

helps people make informed decisions

and then the world came crashing

about what they should be putting on

down. I thought, ‘Hang on, let’s redo

the internet, what they shouldn’t and

all our scans; surely has fundamentally

what their local ‘neighbourhoods’ might

changed’. However, we found no effect

look like. NICER is being released for

at all.” In fact, the results showed a

free; Rapid7 wants everybody to pick

reduction in dangerous services, most

this up and peruse it.” A comprehensive

notably Windows SMB (service mes-

document split into 16 sections and three

sage block) network protocols.

appendices, NICER is the result of four

However, this unexpected good

years’ worth of research, although it

news shouldn’t lull people into a false

starts with a relatively modern focus:

sense of security – the “myth of

OCTOBER 2020

the silver city”, to quote the report –

In terms of cyberattacks themselves,

Beardsley is adamant that vigilance

Beardsley states that they continue to

and proactivity are the keys to success.

include conventional ‘phishing’ scams

“The problem [with the perception that

as well as more advanced methods,

progress is being made] is that we’re

such as “exploiting known vulner-

not going in that direction fast enough,”

abilities and old software that’s on

which is re-emphasised in NICER: “...

the edge.” The report includes a sum-

the security of the internet still trails

mary of the ‘most exposed’ countries

the desire to just get things working,

by total attack surface, exposure to

and working quickly.” This sentiment

selected services, vulnerability rate

roughly encapsulates the challenge

and other metrics. While countries

faced by those endeavouring to bolster

such as the US and China might bring

internet security: to construct an effi-

no surprises for their high-risk factor,

cient operating model which doesn’t

NICER also includes some surprises

sacrifice integrity, with necessary

such as Canada (9) ranking higher than

updates and patches implemented in a timely and consistent manner. The report can help facilitate the achievement of this goal by providing hard data that developers can reference as they seek out solutions.

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RAPID7 – NICER

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Iran (10), despite the former having

own ‘neighbourhood’ and measure

a population density almost 50% lower

its progress relative to others, but

than the latter. This is a perfect exam-

what about specific industries? The

ple of the report’s ability to correct

report also includes a graph measur-

potentially damaging preconceptions.

ing each sector’s vulnerable assets,

“Iran is very technically savvy but it is

revealing that highly essential services

more reliant on client-oriented internet

– telecoms, financial services, retail

(mobile phone networks, etc), whereas

and pharma – are amongst the most

Canada has a lot more in the way of

exposed, including some of the larg-

wired infrastructure and servers.”

est organisations on the FTSE 100,

NICER’s information about entire countries enables each to identify its OCTOBER 2020

Fortune 500 and Nikkei Index. “These companies have the resources to be

great at security, but, ultimately, it’snot

NICER will be developed further into

their job,” says Beardsley. “And a

a forthcoming report at the end

lot of these companies are over 10

of 2020.

years old and haven’t gotten around

Policymakers, too, have a crucial

to upgrading, particularly if everything

role to play – as stated in NICER:

still appears to be working fine.” The

“The pen Is mightier than the firewall.”

blight of legacy network protocols

Rapid7’s report aims to supply regula-

is also problematic, with some like

tors and legislators of all kinds with

FTP (file transfer protocol) dating

the necessary information needed

back to the 1970s and possessing no

to focus their attentions. “Legislators

inherent cryptographic assurances.

and even cyber insurers want to look

Maintaining patch and version man-

at this stuff to understand what’s

agement, therefore, is essential. With

acceptable and what’s not. I think

cloud also continuing to be adopted

policymakers have a pretty critical

more widely, Beardsley states that the

role, both in terms of understanding

information on this topic explored in

risk management and understanding

E X E C U T I V E P R O FILE :

Tod Beardsley Title: Director of Research

Location: Austin, Texas

Industry: IT & Network Security I’m an individual contributor on software engineering projects, a technical security researcher, a no good dirty hacker, an open source maintainer and advocate, a conference organizer, a podcaster, blogger, and all-around new media gadfly, and an often-quoted primary spokesperson — often several to all of these roles at the same time! busi ne ssc hief. com

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RAPID7 – NICER

like how the internet itself works.”

Citing their ability to find effective solutions to problems which are still economically viable, Beardsley also believes that policymakers ability to bring pressing issues to the forefront of people’s attention makes them an invaluable ally. “They can sound the national security alarm and people will listen,” he adds.

NICER explores in great detail two protocols still in widespread use: Telnet and SMB. Under analysis, 110

Rapid7 found that both were outdated and neither was particularly suited to modern internet usage; in fact, Telnet was originally specced out as a temporary solution in the 1960s.

“It is obvious from this RFC (request for commands) that [Telnet] was intended to be a temporary solution and that ‘more sophisticated subsystems will be developed in time’, but to borrow from Milton Friedman, ‘there

attackers did not exist, thus rendering

is nothing quite so permanent as a

its practical use limited. Alternatives

temporary solution’,” says the report.

such as SSH (Secure Shell) make for

This is not to say that old systems or

a compelling alternative, albeit with its

protocols cannot have value. However,

own drawbacks related to exposing

the antiquated nature of Telnet comes

console access to the internet. “With

from a time when active and passive

SSH, I can tell with certainty that the

OCTOBER 2020

111

computer I’m talking to is the one I

internet worms in history” using SMB

thought I was talking to because they

in some way, NICER advocates for

have cryptographic fingerprints that

HTTPS as an alternative. “SMB is very

are easily verified,” clarifies Beardsley.

opaque,” Beardsley summarises. “It

SMB, on the other hand, was found to

makes cryptographic guarantees that

be too complex, almost to the point of

it can’t keep. I’m not advocating for

obscurant. With “the most destructive

the end of SMB, but having it directly busi ne ssc hief. com

RAPID7 – NICER

exposed to the internet is a pretty bad

great impact on the stability, safety

idea and it’s almost always accidental.”

and security of the internet as a whole.”

The conclusion of NICER provides

This is a sentiment that Beardsley

a mixed but ultimately encouraging

echoes: “At the moment, I feel like a cli-

takeaway, “Things aren’t great, but not

mate scientist saying global warming

disastrously bad and relatively small

is happening but everyone is respond-

changes in how we design, develop

ing, ‘But it’s fine right now’.” Indeed,

and deploy services will still have a

the problem with underlying issues

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OCTOBER 2020

relating to internet security is how eve-

art and even society,” he continues. “I

ryday interactions with it (using social

don’t see a world where we’re licens-

media, watching videos, research, etc)

ing people to programme on the

appear unaffected, yet the potential

internet, but I would like us to reach a

for all these things to be disrupted

point where it’s normal for software

exists on a fundamental level. “Internet

developers or electrical engineers to

security is not a goal in and of itself:

learn new aspects of security in their

security enables culture, commerce,

professional development.” Rapid7’s NICER could play a crucial role in expanding global consciousness on the importance of internet security.

In fact, Beardsley hopes that it is the start of an ongoing and fruitful debate.

“If someone else out there has different stats or conclusions, we’re more than happy to have that conversation.

NICER is not a ‘one and done’ report; this is an entry point into what will hopefully be several conversations on what we want the future of the internet to be.”

Read Rapid7’s full NICER report here and watch Tod share the key takeaways in this webcast

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QUONTIC BANK: DEFINING THE CULTURE OF A TRULY DIGITAL BANK WRITTEN BY

WILL GIRLING

OCTOBER 2020

PRODUCED BY

MICHAEL BANYARD

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QUONTIC BANK

Patrick Sells, CIO, explains why innovation shouldn’t stop at technology and why getting the right culture is essential in modern finance

2020

has been a difficult but transformative year for finance: COVID-19

has led to a shift away from old paradigms, remote working has been validated as a valuable tool and digital transformation is redrawing the industry’s roadmap for the future. Emblematic of this brave 116

new world, Quontic Bank is a disruptive banking platform which transcends the bank-FinTech divide and harnesses the best of both worlds to deliver best-in-class customer outcomes. Founded in 2009 and headquartered in New York, the bank is a self-proclaimed champion of “underdogs, entrepreneurs, gig-economy workers, immigrants,” and all others currently not best served by the ‘legacy banking’ establishment. Quontic Bank believes in empowering its customers to take control of their finances, recognising that no person’s circumstances are the same as others and proving that better solutions are available to those who seek out innovation.

Leading this aspect of Quontic Bank’s business is Patrick Sells, Chief Innovation Officer. A true disruptive digital banking executive, Sells initially got OCTOBER 2020

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Successful companies.

Cohesive teams.

Engaged employees.

We can help you get there.

The Table Group is changing the world of work so more organizations can be more effective and less dysfunctional, and employees can be more fulfilled and less miserable.

Our approach is based on Pat Lencioni’s best-seller, The Advantage, which introduces four practical disciplines: build a cohesive leadership teams, create clarity, overcommunicate clarity, and reinforce clarity.

We help leaders master these disciplines resulting in healthy organizations that are marked by reduced politics, confusion and unwanted turnover.

Create cultural competitive advantages

The Table Group: creating cultural competitive advantages Rick Van Arnam, Principle Consultant at The Table Group, describes how he has helped Quontic Bank to unify its culture and focus its corporate vision “People today want to make a difference.

They want to know that the company they’re working for has a unique purpose to which they can contribute,” states Rick Van Arnam, Principle Consultant with The Table Group.

In 1997, this is exactly what the company set out to do: help executives and teams cohere, define their corporate vision, establish a unified identity, and encourage innovation through outstanding culture. With a diverse set of skills under his belt, Van Arnam found that The Table Group presented him with an interesting new challenge: “In addition to the consulting arm, the company is actually more of an idea factory around all things related to organisational health. It’s improving the world of work.”

Helping leaders across several industries, The Table Group’s consultants engage with them to master four core disciplines: build a cohesive leadership team, create organisational clarity, over-communicate that clarity and reinforce clarity through simpler and less bureaucratic systems and processes. Markedly a culture-focused approach instead of technological, Van Arnam says that there is a good reason for this: “ During the 2008 recession, we discovered that companies were investing a lot of time and effort in the ‘smart side’ of the business.

However, everybody actually has access to a lot of the same technology. Therefore, if you’re going to win, you’re going to have to do more; you need to transform the organisation itself and operate differently.”

One company which has truly taken this advice to heart is Quontic Bank. Having known Patrick Sells, CIO, for a decade, Van Arnam states that the company is uniquely positioned as an organisation attempting a method of operating which breaks away from industry preconceptions. “We helped Quontic Bank answer six simple but critically important questions: ‘Why do we exist?’ ‘How are we going to behave?’ ‘What do we do?’ ‘How are we going to succeed?’ ‘What’s most important right now?’ and finally ‘What are our roles and responsibilities?’”

Van Arnam believes that Quontic Bank’s wholehearted receptiveness to The Table Group’s ideas has distinguished it as one of its closest collaborations. “Quontic’s emphasis on culture is going to be really important,” he concludes. “I think it’s going to help them attract talent on the heels of what has been a war on talent. Continually revisiting the six critical questions, maintaining core values and onboarding people the correct way will help position it to meet the upcoming challenges.”

Rick.vanarnam@tablegroupconsulting.com

QUONTIC BANK

“ I sold most of my company (Sells Group Holdings) and went all-in on this idea of re-imagining what a bank could be - a digital bank of the future” — Patrick Sells, CIO, Quontic Bank 120

his start working on digital marketing for small companies whilst attending Taylor University. “This was right after the recession and it was an interesting time to get into business,” he recalls. “I thought banking was ripe to be done differently, especially community banks.” Sells’ connection to Quontic Bank started when he met CEO Steven Schnall, with whom he shares a mutual interest in the evolving cryptocurrency market. The two quickly established a friendship and developed some projects together and it was in late 2018 that Sells finally joined the team. “We had a lot of mutual interest: I had been wanting to get into the banking industry to try something new and Quontic needed to become a digital bank. I sold most of my company (Sells Group Holdings) and went all-in on this idea of re-imagining what a bank could be - the digital bank of the future.”

Recognised as 2020’s ‘Digital Banker of the Year’ by American Banker and also one of ICBA Independent Banker’s ‘40 Under 40’, Sells has managed to carve out a formidable reputation in the industry.

Possessing a talent for and enduring

OCTOBER 2020

E X E C U T I V E P R O FILE :

Patrick Sells Title: CIO

Company: Quontic Bank

Industry: Online Banking

Location: New York

Patrick Sells is a serial entrepreneur with a passion for helping transform community banking through culture and technology. As the Chief Innovation Officer at Quontic, Patrick is focused on drawing a new generation of talent to the banking industry and elevating Quontic as a destination employer. Sells blends together the desire to use technology to make the world a better place and change the perception of banking. He is an award-winning leader who has been recognised for digital innovation in banking earning American Banker’s Digital Banker of the Year Award and also named in Independent Bankers 40 under 40 list for emerging community banking leaders in 2020. The bank is headquartered in New York City and has earned the U.S. Department of Treasury certification as a CDFI. Currently, Patrick is an advisor of the Mizen Group and is on the faculty at the first ever graduate program for Digital Banking at the University of Wisconsin.

Prior to joining Quontic, Sells served as the CEO/Owner of the Sells Group, a marketing and technology agency based in Indianapolis that helps clients with digital customer acquisition. In addition, Sells is active in the not-forprofit space helping lead and advise several different organisations. He helped start and build the Super Service Challenge into a national program that raised and gave away over $30,000,000 alongside their national spokesperson, Drew Brees.

He currently resides in New York City and graduated from Taylor University with a degree in Political Science. busi ne ssc hi ef . com

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Hunton Andrews Kurth LLP Congratulates Quontic’s Chief Innovation Officer Patrick Sells on being named American Banker’s “Digital Banker of the Year.”

Hunton Andrews Kurth’s fintech team is recognized as a leading law firm in Chambers & Partners 2020 FinTech guide. Our firm’s reputation as a financial services powerhouse, combined with our world-class capabilities in matters of technology and privacy give us a distinctive advance in the fintech market.

According to Chambers, “Hunton Andrews Kurth is at the pinnacle of data privacy and data security within the fintech space.”

In addition to advising nearly a quarter of all BaaS banks, we also represent start-ups and established fintech companies, banks, investors, loan servicers and securitization sponsors. We also represent private equity firms, hedge funds and purchasers of marketplace loans, retailers, software companies, payment processors and other vendors in connection with lending, financing and purchasing activities with respect to loans and fintech products and services.

For more information, visit HuntonAK.com or follow us on Twitter, LinkedIn or YouTube.

HUNTON ANDREWS KURTH: NAVIGATING DIGITAL FINANCE Peter Weinstock, Partner, describes the law firm’s close collaboration with Quontic Bank as is it attempts to re-define digital banking.

Originally founded in 1901 as Hunton & Williams and then subsequently rebranded following a 2018 merger with Andrews Kurth Kenyon, Hunton Andrews Kurth is an international law firm with more than 1,000 lawyers in 20 offices spread around the world, including the US, Asia, Europe and the Middle East. “Approximately 30% of our revenue derives from financial services,” Peter Weinstock, Partner, explains. “We provide services to fintech companies, as well as to what we think of as partner banks and those advancing towards digital transformation. Hunton Andrews Kurth tends to think of these banks as being more like technology companies with banking ‘wrapping around’ them.”

Although he considers his interest to lie with finance first and technology second, it is really the interaction between the two that stokes Weinstock’s passion for digitally-enhanced banking, “I can’t think of any aspect of the economy that experiences more change; financial services are such a big part of the economy and they’re forever evolving.”

Although change in the legal sector is generally (and necessarily) a slow process, he acknowledges that COVID-19 has been a catalyst for accelerated, unprecedented developments. In this climate, Hunton Andrews Kurth strives to exemplify the same high-quality service it has maintained for over a century. According to Weinstock, this rests on two key pillars: responsiveness to the client’s needs and a creative approach that often ‘reverse engineers’ a particular need and then forms an actionable framework through analysis.

This attitude, in combination with the firm’s far-reaching experience in the industry, has stood it in good stead for helping Quontic Bank as it attempts to re-define digital banking. Working closely together on a daily basis has led to a strong

Hunton Andrews Kurth

mutual understanding between the two companies, “Part of helping the bank achieve its goals has been to think of Quontic Bank as friends and family,” Weinstock says. “Patrick Sells (CIO at Quontic Bank) has got a lot of energy and ideas. Our job is to help him channel those into the most productive avenues available.”

In an industry which is becoming increasingly digital in its outlook, Quontic Bank, in Weinstock’s view, is on a sure course of not just joining the trend but actually leading it. “It’s pushing the envelope on what’s doable from a digital standpoint and what it means to be a digital bank. Hunton Andrews Kurth doesn’t consider that the pace of digital transformation will slow down; we foresee it continuing to accelerate.” The company is proud to be a true partner to Quontic Bank as it pioneers this exciting change and praises the integrity, intelligence and savvy of the executive’s leadership.

“They’re wonderful at including us at an early stage,” Weinstock concludes. “In the legal field, it’s much more expensive to correct a problem than to avoid it in the first place. Quontic Bank is very wise in that regard: it’s happier spending an ounce on prevention than a pound on cure.”

QUONTIC BANK

“ So many companies have ‘core values’ that are simply, what I call, ‘permission to play values’. They’re not unique to them and so they don’t become a shared language” — Patrick Sells, CIO, Quontic Bank 124

interest in innovation which befits his

itself; it was recently ranked as one of

role at Quontic Bank, he states that

Bankrate’s 2020 ‘Top Online Banks’.

early experiences taught him the value

When asked what he attributes this

of trying to imagine operations from

success to, Sells claims that Quontic

different perspectives. “When you’re

Bank’s culture and mission to redefine

in the middle of doing something it’s

what a ‘digital bank’ is has been pivotal

really hard to reimagine things. But,

to its acclaim with customers and the

when you are able to truly step back

wider industry.

and reframe the world around you,

Corporate culture could be Quontic

you can easily find innovation. A lot of

Bank’s most important quality. Based

what I’ve done at Quontic Bank has

on a four-pillar philosophy, Sells

been saying, ‘Okay, what if we thought

makes a clear distinction between his

about it very differently?’” Indeed,

organisation’s approach to culture

the Bank is no stranger to accolades

and others: “So many companies have

OCTOBER 2020

Navigating the Home Loan Process with Quontic Bank CLICK TO WATCH

|

4:52

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‘core values’ that are simply, what I call,

Know the goal: before embarking on a

‘permission to play values’. They’re

new direction or endeavour, the Bank

not unique to them and so they don’t

coordinates with its teams to establish

become a shared language.” Instead,

a singular vision; and 4) Say cheese:

Quontic Bank allows the following

Sells explains, “When someone puts

principles to guide its daily operations:

a camera up in front of you and says,

1) Progress not perfect: a steady state

‘Say cheese!’, what happens? You

of constant improvement is favoured

smile and the person taking the picture

over rapid quests for unattainable

smiles too. Imagine a bank that you

perfection; 2) Try it on: emphasis-

actually smiled when you talked to.”

ing a fast-paced decision-making

Sells adds that the need for remote

process, Quontic Bank is willing to

working as a result of the pandemic

try new ideas, retain the ones that

has indirectly added to the Bank’s

work and discard those that don’t; 3)

culture too: “Before COVID-19, we’d busi ne ssc hi ef . com

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MANTL: enabling a digital vision of community banking

MA NTL Mike Bosserman, VP of Growth at MANTL, explains how the company is empowering Quontic Bank and other financial institutions through technology

Founded in 2016, MANTL is an enterprise Software as a Service company based in New York with a singular mission: ‘empowering financial ecosystems through technology’.

It does this by modernising core back-office tasks like account opening with an integrated, omnichannel platform. “MANTL serves community and regional banks and credit unions exclusively,” says Mike Bosserman, VP of Growth. “The reason we’re here is because these organisations haven’t had the tools to grow online.”

Making community banks competitive in the modern finance market is MANTL’s main task.

It’s a service that the company has already rendered for some of the fastest-growing banks in the US, and Bosserman claims that the success it has reaped stems from a focused strategy combining technological sophistication with customer-centric ease-ofuse. “The average time to open an account on MANTL is approximately two minutes and 37 seconds,” he says. This is important in the context of contemporary customer expectations, which are heavily influenced by experiences not necessarily related to banking. “If you’re a community bank or credit union, customer expectations for bank onboarding flows are going to be influenced by other online platforms like Amazon, Netflix, or other fintech apps.”

One client that has taken on this challenge is Quontic Bank. In an industry where opening an account takes an average of 30 clicks, Bosserman says, “Quontic Bank takes 24 clicks. When it comes to figuring out where

Mike Bosserman @ Mantl

MANTL fits into the ecosystem of modern tech products, we’re right there at the cutting edge.” The company’s tech-savvy is equalled

by Quontic Bank’s ambition, which, even from its early stages, was to achieve nothing less than a new concept for digital banking. “Both Patrick (Sells, CIO) and Steven (Schnall, CEO) have been exceptional to work with and so has the team. Quontic Bank is a great example of what’s possible in community banking with the right attitude and the right technology paired together.”

When asked what major trends will continue to affect and develop MANTL’s relationship with Quontic Bank, Bosserman believes that banking’s future will be determined by the acquisition of tech talent, increased automation and fraud prevention, enhanced regulatory compliance, and instant account verification. As mobile technology continues to proliferate and reshape customers’ everyday interactions with banks, MANTL will play an important role in levelling the terrain between the mobile and desktop experience.

QUONTIC BANK

usually only hire people from the New York area. However, during this time, we’ve hired 30 or 40 people from outside and it’s enabled us to work with and find great talent further afield.”

When it comes to Quontic Bank’s ‘true digital bank’ concept, Sells states that a fallacious dichotomy between traditional banks and modern FinTechs has obscured the true vision for what the idea could achieve. “In many ways, when banks hear the term ‘digital bank’, they assume it means 128

empowering FinTechs and not playing an active role in their customers’ lives anymore. I don’t think that’s a good thing for the industry.” On the contrary, Sells argues, it is only by combining the best aspects of both that banking can meet the challenges of the postCOVID-19 ‘new normal’. “A true digital bank would actually use technology to provide a better experience and add meaningful value to the customer beyond just being a list of debits and credits behind the scenes,” he continues. “We should also be building technology that solves our problems, selling it to other banks and helping them become truly digital too. imagine OCTOBER 2020

“ When banks hear the term ‘digital bank’, they assume it means empowering FinTechs and not playing an active role in their customers’ lives anymore. I don’t think that’s a good thing for the industry” — Patrick Sells, CIO, Quontic Bank

129

building technology that actually helped our customers accomplish the things in life that they want; that’s at least partially what being a true digital bank means.” In fact, Quontic Bank receives daily enquiries from other banks seeking advice on how to adapt.

Sells adds that the organisation is currently adapting this aspect of the business into a more scalable solution to help others across a wider scale.

Quontic Bank’s approach to certain aspects of digital transformation, such as data utilisation, correlates with contemporary industry trends: “Data busi ne ssc hi ef . com

STRONGER TOGETHER Alloy Labs is a consortium of community and mid-size banks working together to drive innovation. Working as a collective makes us more effective and more efficient in building partnerships. We also operate The Concept Lab for earlier stage companies to develop the business case and establish a commercial relationship with partner banks and a venture fund that invests in partners, graduates of The Concept Lab, and areas of strategic interest to banks and credit unions.

Learn more today

Alloy Labs: driving innovation within banking Jason Henrichs, CEO and Co-Founder of Alloy Labs, describes how the consortium is facilitating collaboration between banks through tech and innovation Formed in 2018, Alloy Labs is a consortium of over 40 leading community and mid-sized US banks working together to adopt new technology, drive innovation and shorten the path between the conception and implementation of ideas. Jason Henrichs, CEO and Co-Founder, informs us that, by combined assets, Alloy Labs ranks as one of the top 25 banks in the US. At the moment there is a digital arms race taking place, where the largest banks and some of the more specialised or most profitable banks are noticeably further ahead in their digital transformation,” he explains. “However, the small and medium sized banks are at a disadvantage: they haven’t raised hundreds of millions of dollars in venture capital to fund their development and they don’t have the balance sheet, tech teams and incubators like larger players do. By working together, they can be both more efficient and effective at what they do.”

Digital transformation is taking hold in the banking sector; what was once viewed as a purely cosmetic process undertaken by a few now holds revolutionary potential.

This is in no small part, Henrichs points out, because of the COVID-19 pandemic which illustrated how all-pervasive digital technology in finance could be. As the first wave focused on user interface gives way to a second phase overhauling back office processes, Alloy Labs is helping to foster the greater utilisation of data through AI (artificial intelligence) based automation

Jason Henrichs @ Alloy Labs

and embedded financial experiences.

“If you look at even the challenger banks of today, they are mobile and technology first but they still look and feel a lot like traditional checking, savings and spending accounts,” he continues. “When we get to the third wave - business model transformation - we’re going to see some very interesting things.”

Frequently working side-by-side with Quontic bank, members of Alloy Labs have been able to help Patrick Sells, CIO, navigate specific industry and technical requirements as Quontic Bank develops its ‘true digital bank’ concept. Conversely, Quontic Bank’s experience with APIs, contactless payments and cultural transformation adds significant value to Alloy Lab’s other members. The cornerstone of Alloy Labs’ approach is ‘understanding’: what are the challenges of the modern banking sector, what is the customer’s perspective and how can things be better?

QUONTIC BANK

Quontic Bank Partnerships Quontic Bank’s partners play a crucial role in its development of new tech, products, competitive advantages and more. Sells chose to highlight four for their particularly important contributions:

132

Mantl: “When COVID-19 first happened, we wanted to roll out a new product called ‘Drawbridge Savings’ - an account to help people do social good wherein Quontic Bank will match the monthly interest credited for each account and donate it to the #BeTheDrawbridge relief fund.

Mantl helped us build that product and launch it in three days, which would be unheard of with other providers. Mantl represents the type of true Fintech-bank partnerships that are needed.

Banks need to move beyond treating partners as ‘vendors’ and have real relationships with them. It’s a great relationship and partner of ours.”

OCTOBER 2020

Table Group: “Table Group is focused on helping companies build a competitive advantage. It was critical in helping us refine our mission statement, who we are, what our core values are and how we make decisions. Table Group and our consultant there, Rick Van Arnam, have taught us and many other companies that the only true competitive advantage today is that of being healthy. That means the whole organisation needs to be aligned, clear on ‘who’ it is and working together seamlessly.”

Alloy Labs Alliance: “Alloy Labs is a new consortium of banks. There are probably between 40 and 50 banks in there, all with different stories than ours but similar objectives. The organisation provides a platform for us to work together and collaborate.”

can be used to help customers gain a better financial life and empower them financially. Every bank is trying to figure out how we can begin to harness and leverage data better.”

Hunton: “It’s a great law firm but it’s more than just a law firm advisor: they are friends that have helped us as we’ve started to do new and innovative things.

Hunton helps us understand how we can do it in the safest and best way. Peter Weinstock has been our sherpa, if you will, guiding us every step of the way.”

However, Quontic Bank’s exceptional customer-centricity shines through in its philosophy towards tech innovation. “I think the most important thing to consider is the customer’s experience,” Sells explains. First and foremost, the bank tries to gain perspective on how its customers interact with it and learn what improvements can be made through first-hand experience. This could involve something relatively simple like app/website performance or the ease of opening an account, or it could be more

“ Banks need to move beyond treating partners as ‘vendors’ and have real relationships with them” — Patrick Sells, CIO, Quontic Bank

complex like the transactions process.

Although considerations surrounding regulations, security and data integrity should always be paramount, Quontic Bank prides itself on delivering a quintessentially tech-optimised service designed with its users in mind. “If you look at our roadmap, we are going to be rolling out some new products that have never been seen before in the industry to provide a busi ne ssc hi ef . com

133

QUONTIC BANK

134

new type of experience,” Sells states.

“The reason why people need online

from the click of a button.”

When he considers the progress

banking is because mobile apps

that Quontic Bank has managed to

aren’t good enough yet. Quontic

accomplish throughout 2020 despite

Bank wants to build a mobile app that

the difficulties of the pandemic, Sells

allows you to do everything easily

is proud to say that 2021 will not be a

OCTOBER 2020

2009

Year founded

$35M Revenue in US dollars

160

Number of employees

year no-one expected, but Quontic Bank has still managed to go from strength to strength. Indeed, with Sells’ visionary leadership and the bank’s celebrated conception of the ‘true digital bank’, why should it not have? Innovation courses through the organisation, yet it doesn’t stop where most companies would choose to leave it: technology. “The word ‘innovation’ has become synonymous with technology,” he says. “In doing that, the wider banking sector has failed to truly understand the other opportunities for innovation, from culture to training, recruiting and how

case of addressing ‘unfinished busi-

people work.” Quontic Bank is refus-

ness’. “We’ve kept up with what we

ing to fall in line with this trend, safe in

wanted to achieve in the sense of

the knowledge that cultural change,

overall progress towards our mis-

though difficult, is ultimately the only

sion and vision. We never would have

genuine way to usher in a new era for

guessed that, in partnership with

banking. “Innovation isn’t a problem

Intuit and other Fintech platforms,

that can be solved by buying some-

Quontic Bank would have facilitated

thing; you have to change who you

over one billion PPP (Paycheck

are and what you do.”

Protection Program) loans to small businesses.” It could be argued that the bank has actually managed to gain momentum during this time rather than lose it. 2020 might have been a busi ne ssc hi ef . com

135

Digital Transformation in Cyber Security and Networks WRITTEN BY

WILLIAM SMITH

136

PRODUCED BY

GLEN WHITE

OCTOBER 2020

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BELL

Bell’s Dominique Gagnon and Giovanni Sansalone guide us through digital transformation as it pertains to cyber security and network evolution

D

igital transformation is a critical imperative for companies across the world, but it can be a challenge to know where to begin. As

observed by Giovanni Sansalone, Vice President, Product Management at Bell, for those organizations undergoing digital transformation, there are 138

a number of factors that can impede success.

OVERCOMING THE CHALLENGES “The most common challenges come from initial resistance or a lack of desire to truly enact change.

It’s important to have everyone accept that they need to change in order to stay competitive, either by improving on the way they serve their customers and employees or being more effective at generating awareness.” Overcoming that resistance to change, Sansalone explains, requires involvement from the leadership team to make it clear why such a digital journey is necessary.

“The second challenge we encounter is a lack of expertise needed to understand the business problem from an end-to-end perspective,” says

OCTOBER 2020

139

Dominique Gagnon,General Manager of the Cyber Security Practice at Bell busi ne ssc hi ef . com

Threats come from anywhere, so we protect you everywhere.

Akamai and Bell: Securing and accelerating content to meet growing demand Tony Lauro, Director, Security Technology and Strategy at Akamai, on its work to accelerate content, enable remote working and provide cybersecurity Tony Lauro is Director, Security Technology and Strategy at Akamai Technologies - the world’s first content delivery network upon its founding in 1998.

“The co-founders of Akamai said that as the internet starts to grow, it will be almost impossible to have a single or even a cluster of servers handle the traffic from multi-millions of connections coming in. The solution was edge servers, and we’ve deployed over 250,000 of them geographically dispersed around the world closest to where the pockets of internet users are.”

Akamai has since expanded its remit beyond accelerating content to offering cloud security services. The massive reach of the Akamai platform allows for unique insight into cyberattacks and other security threats.

“We see about 25 to 30% of the world’s web traffic every day come across our platform,” says Lauro. “There’s major insights there that we can take to let us say this is bad traffic based on X, Y and Z. Over the years, we’ve expanded into protecting businesses from downtime against DDoS attacks as well as enterprise services to make sure that employees working from home can do so securely.”

The company’s relationship with Bell Canada extends back to 2016, with the partnership highlighting the key competencies of both businesses. “Some of the things we’ve been doing include accelerating content,” says Lauro. “We deliver live streaming services for Bell Raptors content. The Akamai platform is able to accelerate that content and make sure it’s highly available for all the devices that want to stream it.” Like many companies, its customers want more content, on more devices, anywhere and at any time. “We’re helping support that mission of Bell Canada and also supporting the needs of the internet at large.”

Lauro emphasises the fact that the company is ready to support the rapid digital transformations made

Tony Lauro @ Akamai

necessary by COVID-19. “Many companies are pushing out to mid-2021 to have any of their employees come back. Some are even saying they’re never going to come back to working in the office. But the challenges are still there. How do we make sure that while trusted applications are being accessed, that remote connectivity is not providing any additional risk to the trusted environment within the corporation?”

Akamai’s solution has involved working to expand a Zero Trust methodology. “That’s a SASE model which effectively says, as you connect from the outside and you come to the inside to an application, you’re not going from untrusted to trusted. Everything is considered untrusted. So instead of providing network connectivity to access an internal application, you’re just providing an application experience.”

Lauro sees that change to remote work as being a continuing trend for the Akamai-Bell partnership to respond to. “Companies are asking: how do you securely monitor the user experience that users are having while they work remotely? How do you monitor security on those devices to make sure that any corporate data is not compromised? The remote work model, alongside the digital transformation of all the other services that organisations are already trying to, is going to continue to grow and be a key driver in the year ahead.”

akamai.com

BELL

“ We focus on identifying what we are trying to improve in regards to the business problem that we’re trying to solve together”

142

— Giovanni Sansalone, Vice President Product Management at Bell

Sansalone. “Many customers have expertise in certain areas, but when taking a holistic view, they often need to reach out and ask for advisory services in order to support them at every stage of their journey.”

Once organizations overcome these cultural and managerial obstacles, the problem of pre-existing technology rears its head. “The question faced is: how do you enable legacy infrastructure to support the various digital assets that you’re putting in place? How do you bridge the two worlds and connect and communicate between them?”

TRANSITIONING TO THE CLOUD One approach is transitioning to a cloud based platform. To take full advantage of cloud applications, enterprises need to decentralize access to those applications in order to provide a better user experience. “That decentralized approach, however, can be difficult to control and is more permeable from a penetration perspective. It requires a different approach, such as deploying controls in remote offices or leveraging cloud-based security.” says Dominique Gagnon, GM, Cyber Security Practice OCTOBER 2020

at Bell. “There are many benefits to mov-

in partnership with Zscaler, a fully-

ing to cloud-based security, including

managed, cloud-based, secure

ease of operations, and cost reduction.”

access service edge (SASE) internet

The compromise, however, is the intro-

protection service. “The benefit of

duction of latency.

our service is that we deploy Zscaler’s

The best answer is adopting a hybrid

technology within our Bell infrastruc-

approach. As he explains, it’s clear that,

ture, giving our customers access

while contributing enormous benefits,

to all of our nodes across Canada,

digital transformation and moving to

thus helping to remove the latency

the cloud comes with many challenges.

challenges commonly faced by our

That tension is exactly what Bell’s offer-

customers who deploy a full cloud

ing seeks to remedy. “We just launched,

architecture,” says Gagnon.

143

E X E C U T I V E P R O FILE :

Dominique Gagnon Title: General Manager, Cybersecurity Practice Dominique Gagnon is the General Manager of the Cyber Security Practice at Bell with over 25 years of practical and educational experience in IT. Prior to Bell, Dominique was the VP Consulting Services at CGI managing the government vertical and leading the Canadian Cyber Security Center of Excellence Sales, Delivery and Operations. Dominique has expertise in P&L management, business engineering, strategic engagement management and infrastructure management with a focus on cyber security. He has negotiated, implemented and managed numerous large outsourcing contracts and led transformations and transitions for several large organizations. Dominique also served for 12 years in the Canadian Armed Forces. busi ne ssc hi ef . com

Enable WorkFrom-Anywhere

Build a plan for supporting work-from-anywhere Enabling work-from-anywhere isn’t a one-and-done job—it takes the whole IT organization. Security and networking teams must come together to build a plan for moving forward in a way that serves business needs. Begin building your plan with the help of these resources.

Learn more

Enabling remote work: how IT can plan for 2021 and beyond

Kevin Magee of Microsoft Canada and Zscaler’s Lisa Lorenzin, discuss the benefits of a zero trust approach for enabling remote working “The initial response to COVID was: ‘we’re going to move everything temporarily to the cloud and we’re going to get through this, and then we’re just going to revert back to how things normally were,’” says Kevin Magee, Chief Security and Compliance Officer at Microsoft Canada. “And this crisis has really made businesses come to the realisation that they have to change what they’re doing if they’re going to secure their organisations for the future.”

While traditional conceptions of hard perimeter firewalls have their place, an evolution is now required in the new world of work. “If you were starting from scratch today, there’s no way that you would do a hard perimeter like that because cloud and mobility have made that hard perimeter, no longer sufficiently agile or sufficiently scalable,” says Lisa Lorenzin, Director, Transformation Strategy at Zscaler. However, Lorenzin explains that you’re not starting from scratch in most cases, so having collaborative partners like Microsoft and Zscaler working together can add value to a company. “Helping organisations transition through a transformation journey is where the guidance of Microsoft

and Zscaler working together with a strong connectivity partner like Bell Canada can really make a difference,” adds Lorenzin.

A zero trust approach sidesteps many of the challenges now being presented, as Lorenzin explains. “It’s about having a world of contextbased trust where the user may be on-premise or-off premise. The application may be in the data center or in the cloud, but the principle of zero trust still applies, which is: I don’t implicitly trust anyone to do anything.“ “Zscaler can offer network access that still provides the visibility and security that IT and Security needs to run and secure the business, but vastly increases the user experience.

Employees that are happy to use applications are better able to serve their customers,” says Magee. With such a transition taking place, Magee sees benefits across the IT professional landscape. “There’s been a positive shift in morale because we are finally delivering on the promise of zero trust, conditional access and a safe user experience that does not compromise security.”

BELL

Bell Canada – Benefits of Cloud Services CLICK TO WATCH

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1:36

146

“We’re transforming at the heart of our network infrastructure” adds

communicate with their applications, or users, in a secure manner.”

Gagnon, “and virtualizing the network so that businesses can leverage the

KEY CONSIDERATIONS FOR SUCCESS

cloud – spinning up different types

The first key area that companies

of services in order to adapt to the

should focus on is culture. As Gagnon

changing requirements of the busi-

points out, “organizations need to first

ness. Our innovative platform delivers

think about the leadership that they

network-as-a-service to its customers,

put in place to establish a culture that’s

giving users greater control over the

open to necessary change and to

way they interact with the network and

doing things differently.”

how they access different services.

The second key ingredient is to focus

We’ve embedded security directly into

on the business. “We have a very cus-

our network, so that customers can

tomer-centric approach in everything

OCTOBER 2020

we do,” says Gagnon. “We focus on

And fourth “It is so important to focus

identifying what we can improve from

on the infrastructure,” says Sansalone.

a business perspective and how we

“It’s vital to have an infrastructure which

can solve it together.”

will be adaptive and flexible, and allows

The third aspect involves leveraging

you to transform to deliver the services

the assets that the company has at its

and business processes needed by both

disposal. “The unique data and intel-

customers and employees. Having an

ligence that organizations have can

adaptable infrastructure that allows you

be used in order to further automate

to drive that agility in the market is abso-

or improve business, delivering greater

lutely critical.”

efficiency through business process automation and more”, outlines Gagnon.

Bell’s support goes further, with an online digital portal allowing participation 147

E X E C U T I V E P R O FILE :

Giovanni Sansalone Title: Vice President, Product Management Gio Sansalone is Vice President of Product Management of Bell Business Markets, a Canadian provider of IP-broadband, information and communications technology (ICT) services to Canadian business. He is responsible for the Business Market Product portfolio, including Network, Unified Communications, Security, Cloud and Managed Services across large, mid and government segments. Gio has launched a number of innovative products and services across networking, managed services and security including unique Cyber Threat Intelligence services leveraging the Bell Network. Gio holds a Bachelor of Computer Engineering from the University of Montreal, Canada busi ne ssc hi ef . com

“ We see ourselves as being an important contributor to the cyber security community in Canada” — Dominique Gagnon, GM, Cyber Security Practice at Bell

in the end-to-end orchestration and delivery of services that customers require. “We have a strong portfolio of professional services that can help with advising clients on their journey, mapping out their processes, and then helping them support the implementation of those changes through the integration of technology and business processes,” Sansalone explains.

BELL’S CYBER SECURITY STRATEGY – A FIVE PILLAR APPROACH When it comes to cyber security, Bell

Bell Canada – Bell’s Security Model CLICK TO WATCH

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4:15

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BELL

150

OCTOBER 2020

“ We provide services around what is foundational in security” — Dominique Gagnon, GM, Cyber Security Practice at Bell

has implemented a strategy with its clients based on five pillars that reflect the key challenges organizations are facing.

“First we provide services around what is foundational in security – the existing controls that our clients have in place,” says Gagnon. “We help them make sense of, and can bring more efficiency to, those controls.

As an example, we’re working with FireEye technology to allow validation of controls within an environment and simplify the traditional approach to managing security. The overall objective is to reduce complexity in existing environments, making better use of investments while improving the security posture. busi ne ssc hi ef . com

151

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Bell Canada – Overview of Bell CLICK TO WATCH

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153

The second pillar of strategy is

The third pillar of Bell’s strategy is

around next-generation security

around detection and response. “We

information and event monitoring

partnered with FireEye to launch our

(SIEM). “Our clients tell us that they

Bell Managed Threat Detection and

are not seeing the value of their legacy

Response platform, bringing best-in-

SIEM tools as they are not providing

class detection capability, coupled

the security alerts expected,” says

with a world-class incident response

Gagnon. “We partner with Fortinet

team to our clients.”

to provide the entire automated and

The fourth pillar is around cloud

orchestrated SIEM technology. This

security. “We work with best-in-class

will improve the visibility and response

partners such as Akamai, whose high

to security incidents, and bring a

performance distributed infrastruc-

best-in-breed and next-generation

ture allows us to enhance security for

platform to the market.”

our customers,” offers Gagnon. “We busi ne ssc hi ef . com

BELL

154

“ We’re transforming at the heart of our network infrastructure, and virtualising the network” — Giovanni Sansalone, Vice President Product Management at Bell

The fifth pillar involves dealing with the increase in data due to the introduction of 5G technologies. While this is still an emerging area, careful consid-

also partner with Cisco, FireEye and

eration and planning will be required

Zscaler to bring a wide range of cloud

moving forward to ensure organiza-

based security offerings.”

tions can securely adapt.

OCTOBER 2020

1880

Year founded

$23.96bn+ Revenue in CAD dollars

52,100 Number of employees

Gagnon and Sansalone are con-

why we are the only communica-

fident that their innovations and

tions provider recognized by the IDC

strategies cement Bell’s position as

Marketscape as a Canadian leader

a leader in cyber security and digital

in security four years in a row.”

transformation. “We see ourselves as being an important contributor to the cyber security community in the field,” Gagnon says. “We have over 400 security professionals across Canada supporting three operation centres, and we partner with the leading technology companies in Canada. That’s busi ne ssc hi ef . com

155

156

The Evolution of Data Centre Management WRITTEN BY

GEORGIA WILSON PRODUCED BY

LEWIS VAUGHAN

OCTOBER 2020

157

busi ne ssc hi ef . com

SERVERFARM

Arun Shenoy, SVP Global Sales & Marketing at Serverfarm, discusses the history of Serverfarm, how the sector has evolved and current industry trends

I

n a digitally-driven world led by automation and optimisation, the critical infrastructure powering such innovation is undergoing

its own transformation. A perfect storm is pushing the business community to embrace new ways of streamlining IT and data centre operations – in order to keep pace with unprecedented capacity demands 158

while minimising costs.

As a company that’s been at the forefront of the sector for the past 20+ years, Serverfarm is at the heart of that effort, helping service providers and enterprises digitally transform their IT and data centre environments. In an often challenging business climate, Serverfarm sees automation, efficiency and sustainability as the path forward.

“Quite early on in our life as a company, we identified two things,” explained Arun Shenoy, SVP Global Sales and Marketing. “The first thing that we spotted towards the end of the nineties is that the real estate part of data centres – the buildings, the land and the locations that they reside in – are actually very inefficient. In fact, in terms of real estate assets, data centres are probably the least efficient.”

OCTOBER 2020

159

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SERVERFARM

“ We spotted towards the end of the nineties that the real estate part of data centres — the buildings, the land and the locations that they reside in — are actually very inefficient” 160

— Arun Shenoy, SVP Global Sales & Marketing, Serverfarm

Shenoy explains that the reason behind this is because most data centres have much more capacity than is, or can be, utilised. “We saw this as an opportunity in that market to really help customers become more efficient. We would buy data centres from customers and lease back just the portion that they needed. For us as a company, this marked our first change in our operating model from being a real estate acquirer into a real estate operational company. As a result, we started to run these environments for companies.”

In the 10 proceeding years, Serverfarm came to its second conclusion: that the same inefficiencies in the real estate space were beginning to emerge in the infrastructure space.

“The way that people deployed physical infrastructure, mechanical and electrical systems, IT, and network and storage environments was also inefficient. Again, most companies were building more capacity than they needed. The end result for us as a company meant that we started to become a much broader operating company in terms of the sorts of services that we were providing to our customers.”

OCTOBER 2020

As a result of these changes to

Serverfarm developed its award-win-

its operating model, Serverfarm has

ning InCommand Services to achieve

moved further into the IT environment

this goal for customers. InCommand

over the years, helping with capac-

is an integrated service platform

ity planning, asset management and

that brings together people and pro-

change management so that it can

cesses into a portal-based solution

bring together the three main ele-

for maximum data centre operational

ments that make up a data centre

efficiency – creating a cloud-like expe-

— the real estate, the facility environment and the IT environment. “When

rience for data centres.

When it comes to digital innovation

you bring those three together, that’s

at Serverfarm, Shenoy believes that

when you can really make data cen-

in the last 10 years there has been

tres reliable and efficient. You cannot

a relatively big shift in the market.

make a data centre efficient by simply

“Firstly, the large hyper-scale cloud

focusing on one of these elements.”

providers have come into the market

E X E C U T I V E P R O FILE :

Arun Shenoy Title: SVP Global Sales and Marketing

Location: London

Industry: Information Technology & Services Arun Shenoy is responsible for developing the success of Serverfarm’s Data Centre colocation and InCommand Services business globally. He joined Serverfarm from Schneider Electric where he was Vice President of the IT and Data Centre business in the UK & Ireland. Arun has previously worked at major companies including Intel, ABB, IBM and Romonet in general management, sales and marketing roles with over 20 years in software, services and technology markets. busi ne ssc hi ef . com

161

SERVERFARM

162

OCTOBER 2020

163

“ Simply buying and deploying a platform isn’t enough, you have to change and refine the processes and ensure that you have the right people” — Arun Shenoy, SVP Global Sales & Marketing, Serverfarm

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Changes in the Industry CLICK TO WATCH

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1:16

165 to solve a very important problem –

Other trends Shenoy has seen in the

increasing efficiency and agility when

industry include the need for capac-

it comes to building and deploying

ity. “In the last six months, the need for

applications that their businesses

capacity has been continuing to grow,

needed. Cloud became a very obvious

and with the industry becoming much

solution for that.” However, Shenoy

more mature and industrialised, it is

doesn’t expect the data centre indus-

interesting to see the shape and size

try to be completely cloud based for

of this change. The industry isn’t just

at least seven to ten years. “Most will

building faster and bigger, but also dis-

adopt a hybrid approach. As a result,

tributed. This evolution is driving these

in order for companies to maintain

hyper-scale environments.” In parallel,

reliability and efficiency when it comes

another trend Shenoy has seen in the

to physical infrastructure, I believe

industry is edge computing – “the idea

our role in the industry is to help cus-

of creating a much more distributed

tomers solve these challenges.”

internet and network of data centres,” busi ne ssc hi ef . com

SERVERFARM

Serverfarm Partnerships

i3 When it comes to collaborative partnerships like i3 and Serverfarm, Ansett explains that “respecting each other and what the other person does, avoiding situations 166 where people become dogmatic, and a general sense of just wanting to do a good job,” are essential.

“Serverfarm finds data centre assets and develops their potential in ways that others can’t see. We are the engineering side to this – that is we provide consulting and engineering services purely in mechanical, electrical and power.

Their approach is different and the reason it is a successful partnership is because we understand what they are trying to achieve,” adds Ansett.

“Collaborations like this are vital.

Together, we get on with it. In order to do good work – which is why i3 exists – you need OCTOBER 2020

collaboration, you need skill and you need motivation. This partnership provides all three.”

“ In order to create enormous benefits and value opportunities for our customers, we require a selection of strategic partners.”

— Arun Shenoy, SVP Global Sales & Marketing, Serverfarm

Serverfarm & NYI Webinar: Our New Disrupted Reality: The Future of Internet Infrastructure CLICK TO WATCH

|

1:02:15

NYI Phillip Koblence, Chief Operating Officer (COO) of NYI co-founded the company in 1996. “At NYI we run mission critical data centres, offering customisable hybrid solutions and high-touch managed services across the United States (US). We focus on optimising infrastructure and providing a seamless client experience by cutting through complexity and hype.”

When it comes to NYI’s partnership with Severfarm, Koblence explains that “the unique thing about Serverfarm is that they fill the gap in the industry when it comes to data centres and critical infrastructure. You have this large multinational organisation that has a culture and customer experience focus that aligns almost perfectly with what we have been preaching to our customers for over 20 years.”

Salute When developing a successful partnership, Okroy explains that, “highly tuned processes executed by disciplined staff enabled by technology produces world class results. Seldom do you see all three of these come together and with Salute Mission Critical and Serverfarm’s combined strength we become unique and set apart from all other providers,” commented Jason Okroy, Co-Founder and CEO at Salute Mission Critical.

For its partners Salute Mission Critical supports IT infrastructures.

“We support the day to day operation of the business – security, remote hands, engineering,” adds Okroy. busi ne ssc hi ef . com

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SERVERFARM

168

OCTOBER 2020

“ The industry isn’t just building faster and bigger, but distributed too. This evolution is driving hyper-scale environments” — Arun Shenoy, SVP Global Sales & Marketing, Serverfarm

he explains. “As a result, anything that is IoT related – smart homes, smart cities, smart government, digital transformation – has driven the market to really grow in parallel in these two areas. So very large hyper-scale facilities, but also a much greater deployment of distributed edge environments. Which, in turn, makes data centre management a much bigger challenge, and the processes and people much more important.”

Running in tandem to these trends is the data centre sustainability question: how can the industry do its part to fight

busi ne ssc hi ef . com

169

SERVERFARM

climate change while still delivering the capacity that the world needs? The answer, for Serverfarm, is in repurposing existing facilities instead of building new ones.

To analyse the carbon savings potential from the reuse of an existing facility, Serverfarm asked an independent consultant, HKS, to calculate the carbon cost of using an existing sata centre compared with a new build of the same scale. Buildings and construction directly represent around 170

39% of all annual global greenhouse gas emissions, according to HKS. HKS analysed Serverfarm’s completed Chicago facility, a six-story building of just under 150,000 square feet with a capacity for housing more than 4,000 server cabinets. Reusing this building eliminates the carbon emissions for a standard new construction building, resulting in a modeled 88% embodied carbon emission reduction.

More and more, enterprises and service providers look to data centre professionals to make their IT operations more sustainable – and, therefore, efficient. When it comes to helping their customers, Serverfarm OCTOBER 2020

171

“ Reusing this building eliminates the carbon emissions for a standard new construction building, resulting in a modeled 88% embodied carbon emission reduction” — Arun Shenoy, SVP Global Sales & Marketing, Serverfarm busi ne ssc hi ef . com

Why react to change when you can drive it?

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Ed Ansett @ i3 Solutions CLICK TO WATCH

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5:00

173

explains that their data centre man­

With customers striving to discover

agement as a service (DMaaS) is more

the right way to deploy technology,

than just a platform, it’s the people and

software and hardware tools, Shenoy

processes too. “DMaaS is the ability

believes that, “most organisations find

for any organisation to truly under-

this challenging because they are only

stand what they have, where it is, how

solving one part of the problem – the

it is being used, and how useful, reli-

technology. Simply buying and deploy-

able and efficient it is. In other words,

ing a platform isn’t enough, you have to

having an overall view of the entire

change and refine the processes and

infrastructure coming together in one

ensure that you have the right people.”

environment. To do that in the most

In order to help its customers, part-

effective way possible, organisations

nerships with other companies such

need to bring together the people,

as i3, NYI and Salute are incredibly

processes and platforms.”

important, and a big part of its strategy. busi ne ssc hi ef . com

SERVERFARM

174

NYI Partner Video CLICK TO WATCH

OCTOBER 2020

|

7:43

“Part of that is down to the complexity of the work that we do for our customers, which requires an ecosystem to come together. In order to create enormous benefits and value opportunities for our customers, we require a selection of strategic partners. This is not something that we can do on our own. In fact, it’s not something that any company can do on its own. Bringing together the right partners is critical.”

By teaming up with some of the most experienced, cutting-edge partners in the industry and listening closely to evolving customer needs over the past 20+ years, Serverfarm has emerged as an innovator and disruptor in the data centre management as a service (DMaaS) space. Serverfarm is now delivering DMaaS at over 100 locations across 40 countries. DMaaS, to Serverfarm, goes much deeper than simply offering DCIM software in the cloud; it delivers a fully managed service for busy C-suites who want to focus on their core business. It’s the answer to the latest demand from enterprises and service providers alike.

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ADORE ME

176

Digitally disrupting the fashion supply chain WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CAROLINE WHITELEY

OCTOBER 2020

177

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ADORE ME

Romain Liot, Chief Operating Officer, Adore Me, discusses his firm’s digital transformation journey in the fashion industry

A

dore Me is a disruptive ecommerce startup that is driven to revolutionise and transform the lingerie industry through

digital technology. Founded in 2012, Adore Me has 178

grown into a team of over 300 employees across the United States and Europe and is considered one of the fastest-growing companies in New York and one of the fastest-growing retailers in the United States.

Romain Liot is the Chief Operating Officer and co-founder of Adore Me and has been with the organisation since 2013, having previously worked at McKinsey. “Adore Me is engineered for disruptions and we began with the intent to disrupt the lingerie market,” explains Liot. “We initially targeted a branding disruption to start with and originally began online; our tech team now consists of 40% of the total full-time employees.” Liot affirms that, as Adore Me was born digital, the company isn’t undergoing a classic digital transformation from little to no technology to a fully digitalised OCTOBER 2020

179

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ADORE ME

“ Adore Me is engineered for disruptions and we began with the intent to disrupt the lingerie market” —Romain Liot, Chief Operating Officer and Co-founder, Adore Me

180

OCTOBER 2020

AMS CLICK TO WATCH

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2:55

181

environment, but is instead leveraging

order management process, which

and implementing technology that cre-

brings state-of-the-art technology

ates value. “We’re digital-native, so it’s

to life. As a result, Adore Me became

a bit different,” he says. “We launched

one of the first companies to adopt

our warehouse three years ago and

Autostore and SureSort technol-

we’ve combined two technologies

ogy. Following the launch of the

together: Autostore and Suresort. This

warehouse, Adore Me can now fulfill

gives us an edge because we can list

over 20,000 orders every day, which

the products that are ready to ship

represents four times the volume of a

quickly on the website.”

conventional distribution centre. The

Considered an integral part of Adore

cutting-edge warehouse utilises robot-

Me’s second phase into expanding

ics technology and has been launched

internationally, the 126,286 sq.ft ware-

in a bid to allow Adore Me to stream-

house is home to a highly-automated

line operations and accommodate the busi ne ssc hi ef . com

ADORE ME

184

fast-paced growth of the organisation.

apart is its ability to be lean and agile in

“Imagine a giant cube with 73 robots

the market. “We have the right leader-

crisscrossing and bringing products

ship that empowers all of us to take

to an operator. We’ve married two

on responsibilities,” explains Shetty.

technologies together to essentially

“We are quick and agile, and embrace

sort orders and ensure the customer

technology that enables us to deploy

gets the perfect order,” affirms Nikhil

projects at scale. I feel this differenti-

Shetty, Supply Chain Manager. “It’s

ates us from our competitors and will

powered with strong algorithms where

help us grow over the next few years.”

we have intelligently stored products

“From a supplier management

and the finished product is a finalised

perspective, having tools that we’ve

sequence which allows the customer

developed internally and allow our

to have the right order that they want.”

suppliers to have access to has ena-

He adds that what sets Adore Me

bled us to speed up certain pieces

OCTOBER 2020

within our development process,”

processes and manage the shipment

explains Christina Chang, Product-to-

process is critical.”

Market Manager. “This has allowed

Liot believes that the most

us to have faster feedback from

important reason to introduce the

our manufacturers and has helped

warehouse was to be more autono-

reduce timings and has allowed us

mous and independent, while saving

to make decisions in a very effective

money. “We’ve made the decision to

way. Having those tools in place to

be more autonomous,” he explains.

allow us to manage our manufacturing

“We felt it was possible to disrupt the

E X E C U T I V E P R O FILE :

Romain Liot Title: Co-founder and COO

185 Company: Adore Me

Industry: Fashion Romain Liot is a co-founder and COO of Adore Me. Romain leads Adore Me’s team of 250 employees across the U.S. and Europe, focusing primarily on marketing and operations. With revenues growing exponentially from $1M in 2012 to over $100M in 2019, Romain has led Adore Me to become one of the fastest-growing companies in New York (ranked #17 on Crain’s Fast 50 in 2017) and one of the fastestgrowing retailers in the U.S. (ranked three times on the Inc. 500 list of the fastest-growing private companies in America).

Prior to Adore Me, Romain spent seven years working as a management consultant for McKinsey & Company on projects in Europe and South-East Asia.

He holds an MBA from INSEAD and a Masters from the London School of Economics. busi ne ssc hi ef . com

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Asendia USA is the US arm of Asendia, one of the world’s leading parcel and mail shipping providers. Founded in 2012 as part of a joint venture with La Poste and Swiss Post, Asendia specializes in international shipping of packages, business mail, direct marketing materials, and publications. Asendia offers high quality B2C global delivery solutions for its customers. The organization is present in 17 countries across Europe, Asia, Oceania, and the US and provides a diverse range of ecommerce and mail solutions to empower businesses to grow across borders.

Gary Shunk is Asendia USA’s Senior VP of Marketing, Pricing and Partnerships, with additional responsibilities in Sales and Key Accounts/Customer Care Management.

“My experience in the logistics sector goes back 39 years,” he says. “I started out in sales and then went into management with FedEx back in the 1980’s. It was at FedEx that I benefited from solid sales management and leadership training. I left FedEx in 1989 to become an entrepreneur and have since contributed to the growth and development of the organization we are today.”

With such extensive experience, Shunk has observed the transformation of e-commerce first-hand. “Global eCommerce has become a fantastic opportunity for growth, but can be challenging in the world we live in today,” he says. “The customs, security changes, and guidelines for shipping internationally require the ability to adapt to constant changes. Flexibility with choices while ensuring security and customs compliance is how we help companies achieve their goals. Parcel shipping is 60% of our business. Asendia’s strategy had to change in order for us to succeed, and that is what we did. Transporting sold products versus mail or printed matter is much different in many ways – and, as everyone now knows, speed and visibility are critical to the customer experience. Transportation companies have had to improve and expand their scope and coverage.

Asendia is doing just that through expansion of facilities, acquisitions, improved automation, increased tracking capabilities, and above all employee safety. The e-commerce industry demands reliability and ease of use, and our strategy is to ensure we continue to provide both as one of the top players in the industry.”

Having established a key, strategic relationship with Adore Me, Shunk believes that collaboration has been influential.

“Adore Me began with a strict interest in the US market, but quickly saw the opportunity to grow their subscription model business into other English-speaking countries,” he

Gary Shunk @ Asendia USA

says. “Because of the trust we have built in each other’s people, systems, and capabilities, we are successful at working together and finding creative ways to adjust services. This flexibility allows us to find cost-effective solutions that meet the expectations of both organizations.”

Shunk understands the importance of an individual approach and believes it is vital to create custom solutions for each customer. “We understand that one size does not fit all, so we make a point to work with each customer to create a customized solution that suits their business plan,” he says. “Some may want the most economical method for international distribution because their product value is low, and high international shipping costs on low-value orders can deter consumers from shopping outside their home country. Others want speed, and cost is not as critical. Almost all retailers want to be able to have the tracking visibility their consumers expect and the data that supports the performance.”

With COVID-19 disrupting organizations globally, Shunk affirms that employee safety has become critical. “We’re very fortunate to have operations managers and operation workers that we have because they’ve gone above and beyond,” he says. “The pandemic has brought people closer together as a team. Communication has been positive and we’ve worked extremely hard. All six of our operating facilities have been able to stay open, but it has changed the way we manage our employees and how we remotely manage the company.”

With the future in mind, Shunk has a clear idea of what he expects the next few years at Asendia to look like. “As the ecommerce industry continues to grow and adapt to the ever-changing needs of consumers, Asendia looks forward to continuing along on this journey with our customers to help them evolve with the changes and enjoy long-term growth and success with both domestic and international sales.”

ADORE ME

fashion industry and be more effi-

in terms of its procurement strategy.

cient with a better cost. Our cost of

“Our business model is not necessarily

shipment is now 70-80% lower than

fast fashion because we often see a

the benchmark in the industry. We

14-month time gap from product con-

empower them and make them oper-

ception until the product is delivered at

ate at a much higher efficiency.”

the warehouse,” explains Chang. “We

The COVID-19 pandemic has

186

spend time on sourcing the materi-

impacted organisations and industries

als as it’s essential that we have high

across the world. As a result, Chang

quality products. We’ve experienced

explains that Adore Me was forced

delays in shipping from Asia because

to adjust its mindset and processes

of COVID-19 and we’ve had to work

E X E C U T I V E P R O FILE :

Christina Chang Title: Product-to-Market Manager

Company: Adore Me

Industry: Fashion Christina Chang joined Adore Me in 2018. As Product-to-Market Manager, Christina is responsible for vendor management and sourcing strategy, as well as production and inventory management. Christina also collaborates with Adore Me’s IT developers in building proprietary tools to manage and streamline business processes. Prior to Adore Me, Christina worked in the financial services industry, first at AllianceBernstein and more recently at Morgan Stanley. She has also worked in strategy & operations at two consumer product startups. Christina holds an MBA from The Wharton School, University of Pennsylvania, and a BA from Columbia University.

OCTOBER 2020

quickly to procure more inventory to meet demand. Being nimble and being able to leverage our partnerships with our manufacturers has been vital.” Shetty adds that Adore Me put a considerable amount of effort in its logistics to better meet the challenge of COVID-19. “We tested a new set of robotic arms in order to keep our operational rhythm up and running as usual and allow our orders to get to our

“ We’ve married two technologies together to sort orders and ensure the customer gets the perfect order” — Nikhil Shetty, Supply Chain Manager, Adore Me

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187

ADORE ME

“ I believe being as agile and as nimble as we were during that tough time was one of our key strengths during the pandemic” — Christina Chang, Product-to-Market Manager, Adore Me 188

customers,” he says. “The logistics network was hit fairly bad because of a surge in sales and limited staff due to safety protocols which meant a delay in shipments. This seemed like a very good opportunity or a time for us to test out this new decentralised carrier system in the Northeast and allow next day delivery to our customers. I believe being as agile and as nimble as we were during that tough time was one of our key strengths during the pandemic.”

OCTOBER 2020

Adore Me recognises the value of establishing key, strategic partnerships with companies to create mutually beneficial collaborations.

Chang stresses how essential business relationships are in order to be successful in the industry. “We rely heavily on our manufacturing partners in Asia and across the world, because without them, we really wouldn’t be able to deliver high quality products to our customers,” she explains. “I believe the key for us has been cultivating partnerships with our manufacturers that are really meant for the long-term and can last.

We want to grow with our partners and join forces on innovation, sustainability and establish that mutual trust to increase efficiency across the supply chain.” Chang affirms that the strength of Adore Me’s partnerships has really shone through during the COVID-19 pandemic.

“Having that mutual support during this really difficult and challenging time has allowed us to go beyond the normal timelines and procure at a greater pace and without that backing, it would have been a lot harder,” busi ne ssc hi ef . com

189

ADORE ME

190

E X E C UTIVE P R O FILE :

Nikhil Shetty Title: Supply Chain Manager

Company: Adore Me

Industry: Fashion Nikhil Shetty has a Masters in Engineering and Industrial Management at Syracuse University. Nikhil has had the opportunity to intern at both a Distribution Center and an early-stage healthcare startup in India. This instilled a love of startups and logistics, which helped him find the perfect combination at Adore Me. He oversees logistics networks and strategic sourcing of packaging.

OCTOBER 2020

191

she explains. “When we’re seeking to

We have a very open and understand-

form a partnership, we’re searching

ing partnership and it has generated a

for partners that are aligned to our

lot of value. Asendia also places con-

strategy and can mutually grow with

siderable importance on sustainability,

us.” Liot points to its partnership with

which is incredibly important to us too.”

Asendia as a particularly important

With sustainability in mind, Shetty

relationship. “We’ve worked with

affirms that Adore Me is committed to

Asendia for several years and we

its sustainability goals and has under-

challenge them every year,” explains

taken several initiatives to achieve a

Liot. “Asendia have shared values

more environmentally friendly packag-

with us and acknowledge when things

ing output. “We now have an ecomailer

aren’t perfect and are always willing

which is made up of recycled content

to work with us to make things better.

and can be recycled. We’re using busi ne ssc hi ef . com

ADORE ME

192

OCTOBER 2020

smarter materials to leave a smaller carbon footprint, while also reducing the logistical footprint too.” Looking to the future, Liot believes the fashion industry will have to change and believes it will transform in three directions. “The industry will become more digital across all platforms.

There will be a digitalisation in the supply chain and in operations which will be essential and will leave organisations with no choice,” he says.

“Secondly, sustainability will become more influential and prominent in everyday operations. As climate change continues to have an effect and impact, it will be imperative to reduce the carbon footprint. Lastly, there will be a change in globalisation. I believe there needs to be a much shorter cycle and I expect there will be a geographical shift in the coming years.”

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Visions Federal Credit Union: 194

Member-Driven Digital Solutions WRITTEN BY

MATT HIGH PRODUCED BY

GLEN WHITE

OCTOBER 2020

195

b u s in e s s c hie f. c o m

VISIONS FEDERAL CREDIT UNION

Thomas P. Novak, AVP/Digital at Visions Federal Credit Union, discusses member-centric digital transformation during COVID-19

T

echnology lies at the heart of every organization today. But, when that technology has a singular purpose that

transcends the business strategy itself, it can be truly transformational. For Visions Federal Credit Union, technology exists to improve its members’ 196

lives. “Whenever we start any new business endeavor, it always begins with the member as the central focus,” states Thomas P. Novak, AVP/ Digital at the US-based leading credit union. “The technology is out there to achieve almost anything, but unlike some organizations, we consistently approach it with consideration for the member – the person – that will be impacted by the innovation.”

Novak is a highly experienced leader who specializes in digital transformation, specifically in relation to member-facing technology platforms.

At Visions, he is directly responsible for the organization’s digital strategy. When we spoke in late 2019, Novak was in the midst of implementing an indepth and innovative digital transformation strategy across the organization, one which he described as a central tenet for its success. Six months on, the OCTOBER 2020

197

1966

Year founded

$25mn+ Revenue in US dollars

650

Number of employees b u s in e s s c hie f. c o m

VISIONS FEDERAL CREDIT UNION

“ Whenever we start any new business endeavour, it always begins with the member as the central focus” — Thomas Novak, AVP/Digital, Visions Federal Credit Union

adoption and application of new and inventive technologies continues in line with the company’s mission of “Making Visions matter to all its members, employees, and communities”.

To achieve this, he remains resolute in the power of technology to transform members’ lives. “The technology has to meet a member need and a business need, not just technology for the sake of new technology,” he states. “The typical technology development or the adoption process may

198

start with research or implementation modeling, but the defining factor is how that process or that piece of technology changes the member experience, as well as the experience of our employees, and how it aligns with our overarching mission. And that does not always have to be complex or over-engineered. If we can save, for example, a member $200 per month on a monthly payment for their loan based on our interest rates against the solutions already on the market by digitizing the process end-to-end, or being top of mind in a moment of need for that member, that’s what really matters.

OCTOBER 2020

Money for What Matters Visions Federal Credit Union CLICK TO WATCH

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0:30

199 “We’ve carried out a lot of analysis

aim to acquire those new members

to set our strategy, particularly in

primarily through digital channels. Now

terms of how decisions position the

that the first phase of our digital strat-

organization, its members, and our

egy is complete, we are focused on the

communities,” he continues. “It allowed

next level. That means creating a digital

us to establish four key pillars for the

ecosystem throughout the organization

first phase of our digital strategy: online

that fosters digital transformation; from

banking, mobile banking, consumer

the creation of an internal Digital Center

lending, and consumer new account

of Excellence to supporting all member

opening. That has since grown and

needs digitally, we are striving to act on

evolved into a broader strategy for

our advocacy mindset.”

a full-blown digital transformation,

Novak has experience as a leader

through which we aim to grow our busi-

across several areas of the financial

ness by at least 100,000 members over

services industry. And, while work-

the next five years. More than that, we

ing with Visions enables a greater b u s in e s s c hie f. c o m

Don’t fear the FinTech.

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Extractable: delivering data-driven and user-centered digital strategy The financial services industry is evolving at pace, driven by new and innovative technologies and a focus on delivering customer-centric, personalized experiences that add value. In order to remain competitive in such an environment, businesses— whether they are incumbents, fintechs, credit unions or insurers—need to develop and implement a robust and forward-looking digital transformation strategy.

Extractable, a San Francisco-based digital consultancy helps companies to do just this. The business works closely with clients in financial services; from banking, investment management and insurance, to accelerate transformation and provide tailored digital experiences to customers. It does this across three core areas: digital strategy, data analysis and experience design.

“Our work is really around applying our actual research, knowledge and experience to ensure that those FSIs we work with get the most out of their digital channels,” explains Craig McLaughlin, Extractable’s CEO. “For us, customer experience and user centricity are essential. So, we look to bring together first person user research in terms of who the FSI’s customers are, marry that to the overarching business unit goals and holistically manifest that into an actionable digital strategy.

A lot of the time, what ‘digital’ is trying to do is not necessarily the same as what the organization is looking to do more broadly,” he continues. “So, we typically spend a lot of time with CEOs and others in the FSI to understand what the traditional strategy looks like and then develop ways in which we can manifest that into the digital realm. It’s about bringing all the disparate teams and departments together into a unifed strategy that is shared and laser-focused on measurable outcomes. This has never been more important for banks and credit unions as fintechs are entering their markets.”

The need for such a strategy, says McLaughlin, is being driven by the broader trend in the sector that sees customers shift from using brick-and-mortar financial services, such as bank branches, to their digital counterparts. This has been accelerated by the impact of the global COVID-19 pandemic, he explains. “People have been shifting away from visiting branches for some time, but we’re now seeing that they just can’t do that even if they want to. So, for companies in the industry, whatever their learning curve was around switching to a digital-first strategy that’s being pushed and accelerated.

A lot of us, as a result of COVID, will adapt to and adopt the digital world, and that really changes things for organizations.

“With that in mind, I couldn’t imagine being a CEO of a bank today and saying ‘our strategy hinges on the building of branches’ in lieu of the digital experience,” says McLaughlin.

“Really, they should be considering how they stand for something unique, how they manifest that uniqueness into a digital experience that can be delivered at scale, and which is centered around product and UX design.”

Craig McLaughlin, CEO at Extractable, discusses the development of a member-driven digital strategy with Visions Federal Credit Union

Among Extractable’s customers is Visions Federal Credit Union, a New York based financial institution that offers a host of services including savings, checking, loans, mortgages and investments, and online banking. Visions is currently in the midst of a member-focused digital transformation, working with Extractable. “It’s a fantastic credit union with a very clear vision in terms of growth,” says McLaughlin. “One of the great things about the company is its culture and leadership, which is instrumental when you’re driving a strategy of growth.

“Where we come into that process is carrying out the first person research into the organization’s members and prospective members, with a view to developing that cohesive digital strategy,” he adds. “Every credit union we work with has something different or unique, and Visions has a great opportunity for growth. We’re impressed with the organization’s ability to prioritize and focus on good leadership and using the information we provide to guide the transition. It also has an environment where every department is focused on the ‘whole’ or the singular goal, which is really important.”

The transformation at Visions is still in its early stages, with Extractable focused on the discovery and research that informs the development of the strategy. This, shares McLaughlin, includes developing an understanding of each department’s role and the specific areas of focus for growth.

“It’s really about ensuring we can better serve the needs of the organization and its members,” he says. “Then, how can those experiences be supported with the right digital technologies. Technology never comes first, regardless of what it is or how innovative - understand the goals of the organization and what its members or customers want and go from there.”

VISIONS FEDERAL CREDIT UNION

202

dedication to members, he recognizes

light on delivering digital with a human-

a general trend towards human-centric

centered focus – it’s about having

digital solutions. “I’ve certainly seen

empathy, being able to balance what is

a heightened need industry-wide

best for a business in terms of efficiency

for visionary leadership over the last

or specific technologies with how that

decade when it comes to digital trans-

is impacting the broader landscape and

formation, and that’s increasingly about

community that you serve. We strive to

the culture or mindset that underpins

have digital solutions in place that are

that transformation. I think the impact of

ready when our members experience a

COVID-19 has accelerated digital trans-

moment of need.”

formation roadmaps and highlighted the

The global COVID-19 pandemic

thoughtfulness needed in the approach.

has impacted every business sector.

From our perspective, it’s really shone a

For financial services – and Visions

OCTOBER 2020

in particular – it has reinforced the

is the physical and digital parity that

human-centric trend. “We’re in the

a retail leader such as Wal-Mart has

age of the consumer right now,” says

done. With e-commerce sales up, it is

Novak. “You have some stellar com-

now planning to convert the parking lots

panies and industries that, because of

of 160 of its stores in August to drive-in

where they are on their digital journeys,

movie theaters, where it can sell prod-

were able to react and thrive very

ucts from the store for the patrons to

quickly amidst the disruption. In my

snack on while watching the movie.

view, it’s very difficult for any business

Thanks to Novak and his colleagues’

to truly succeed if they haven’t made

work on its digital transformation strat-

significant headway in putting mem-

egy, Visions has been able to respond

bers first, and we’re seeing that being

rapidly to the disruption brought by the

played out as a result of the pandemic.”

pandemic. “An example is the emer-

A great example of this, says Novak,

gency loans we offered at the onset

E X E C U T I V E P R OF IL E :

Thomas Novak Title: AVP/Digital

Industry: Financial services, credit union

Thomas P. Novak is a vastly experienced financial services leader. Today, he is AVP/Digital at Visions Federal Credit Union, where he is directly responsible for the digital strategy of the organization and overseeing all digital banking, digital payments, and the operations of public and secure digital platforms. Thomas leads on digital transformation in relation to member-facing technology platforms. At Visions, he actively works with marketing, business development, IT, lending and branch administration to assess automation needs and initiatives that include: UI/UX, SEO, digital analytics, voice of the customer, content management, vendor management and strategic planning. b u s in e s s c hie f. c o m

203

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of the crisis,” he explains. “With that

simplicity for members and employ-

human-centric approach in mind, we

ees. At the same time, we created

developed a 0% APR personal loan

various digital processes, supporting

for up to $5,000 over a 12-month term

over $79mn in residential mortgage

that was offered to any of our members

forbearances, over $150mn in com-

in need. At the same time, we ensured

mercial mortgage forbearances,

that, even though we had to roll this out

19,280 consumer loan skip-a-pay-

quickly to help those in need, it was an

ments, $15mn in SBA PPP loans, and

entirely digital process. Because of our

almost $2mn in 0% emergency loans.

previous digital transformation efforts,

“The digital transformation efforts

this meant very little operational work

we have in place have served us really

and leveraging the same infrastructure

well. Even some of the ad hoc decisions

as we do for our other consumer loans.

we made along the way about how we

In turn, that created familiarity and

set up remote working capabilities for

OCTOBER 2020

“ Four key pillars defined the first phase of our digital strategy: online banking, mobile banking consumer lending, and consumer new account opening” — Thomas Novak, AVP/Digital, Visions Federal Credit Union

better, and therefore will take our customers. Through COVID, we learned that we can absolutely compete at that level. By working collectively towards objectives, we can compete against the biggest tech companies and financial institutions in the world.”

With members in mind, Novak explains that the impacts of COVID will be far reaching for people’s financial well-being. For many, he explains, sur-

our employees and the various enter-

vival mode has been the immediate

prise collaboration tools have really

new normal, and their job was to give

made the difference. Quite simply, we

them the tools they needed to succeed.

had the right infrastructure in place at

“We’re here to partner with them, and

the right time,” Novak adds. “From an

the benefit and joy they receive from

employee perspective, we were able

succeeding is the same that we get

to scale up very quickly regarding the

from being a successful cooperative. All

overall remote working rollout, and on

of the technology implementations we

our member side, we just accelerated

have carried out, such as modifications

the adoption of technologies that we

to our ATM fleet, a general increase in

had already been using. Having that

digital services like machine learning

bedrock in place has been a real dif-

powered interactions, and taking a multi-

ferentiator for us in comparison to other,

channel and empathetic approach to

similar organizations that may have

communicating with our members digi-

more manual processes in their back-

tally, have allowed us to help shepherd

end operations. There is a common

them through a challenging situation.”

misconception in the financial services

Naturally, Visions would not be able

sector that big tech companies like

to guide its members without adopt-

Google and Amazon can do technology

ing the latest technologies. One area b u s in e s s c hie f. c o m

205

VISIONS FEDERAL CREDIT UNION

“ We developed a 0% personal loan for up to $5,000 over a 12-month term that was offered to any of our members in need” — Thomas Novak, AVP/Digital, Visions Federal Credit Union

206

OCTOBER 2020

of interest, says Novak, is payments and how a member can access and move their money whenever they need.

Visions’ focus on digital banking has been around improving its money movement capabilities, he explains. “We’ve made several UI/UX improvements to the bill pay experience and changed our limits on debit and credit cards. Similarly, on our public-facing website, we’ve rolled out the option for members to pay their loans with a debit card or ACH from another financial institution.”

Other initiatives include the Business Performance Department and the use of robotic process automation (RPA), which Novak says have seen a continuous rate of adoption within the business. While not always directly evident to members, he explains that RPA has streamlined and improved processes to enable better member service and an environment where employees can more readily focus on the highest value work.

When it comes to messaging, Novak highlights a concerted effort to increase the use of digital marketing to communicate with Visions’ members. “We’ve had tremendous b u s in e s s c hie f. c o m

207

VISIONS FEDERAL CREDIT UNION

success with our COVID-related communications, ensuring that messages were personalized, focused on members’ real issues, and targeted specifically to them. Getting those messages out has allowed us to enhance the overall experience for members at a crucial time and align with our mission.”

Such success has been enabled by close collaboration with technology partners, says Novak. SWBC, for example, has been instrumental 208

in powering Visions’ payments and digital applications. For digital banking, Visions collaborates with Q2.

“ Through COVID, we’ve learned that we can absolutely compete at that level, and against the biggest tech companies and financial institutions in the world” — Thomas Novak, AVP/Digital, Visions Federal Credit Union

This partnership, Novak explains, has proved particularly beneficial during COVID as Visions has had to implement swift and ongoing changes to help members. The massive increase in digital banking adoption and active usage was exponential. Q2 played a key role in Visions being able to seamlessly support the growth in the channel and educate members about convenient functionality, such as Card Controls and FinSavvy, Visions’ personal financial management tool.

OCTOBER 2020

payments strategy which is instrumental for ongoing money movement use cases. Because of our partnership with Extractable, we are focused on growing a fully digital organization – not just a financial institution. There is a new normal because of COVID, and so we have to be ready for it.”

There is little doubt that Visions will be ready. In terms of digital banking and the broader digital organization, under current leadership the organization is several years into its plan. “Accelerating digital usage and enhancements across the other areas of the business is in the early stages, but that’s where that full, comprehen“One other critical partner in our suc-

sive digital business plan comes in. We

cess is Extractable, a San-Francisco

realize that ‘digital’ is synonymous with

based digital strategy and UX design

‘business’ – it’s not enough to rely on

agency,” Novak continues. “We’ve

one digital arm or business unit, we

been working with them on a com-

must plan, execute, and deliver as an

plete digital transformation strategy

agile organization to a greater degree

to build our digital business roadmap

than any fintech or tech company, and

beyond our first-generation strategy.

that’s an immensely exciting proposi-

This will include a fintech collabora-

tion because of the trust we have

tion framework that allows us to more

earned with our members.”

readily partner and do business with fintech’s as member needs evolve. It will also let us install a fully defined b u s in e s s c hie f. c o m

209

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OCTOBER 2020

Kettering Health Network’s strategic digital transformation WRITTEN BY

LEILA HAWKINS PRODUCED BY

CAITLYN COLE

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211

KETTERING HEALTH NETWORK

Andy Lehman, CIO and Senior VP of Kettering Health Network, shares his insights into digital strategy, COVID-19, and the future of healthcare technology

K

ettering Health Network is a non-profit, faith-based healthcare network of eight acute care hospitals, one behavioral

health hospital, more than 120 outpatient facilities, as well as freestanding emergency centers, on-demand care clinics, and urgent care locations 212

in southwest Ohio.The company’s first hospital opened in 1964, named after Charles F. Kettering.

An enthusiast of technology and inventions, he held over 300 patents, including the first reliable battery ignition system for automobiles. Charles F. Kettering’s vision was to use the latest technology to care for patients in a community hospital setting.

Fast forward to the present day, and this vision is still very much part of the company’s mission.

Its digital transformation has enabled it to make advances in the care it provides, meeting its mission while retaining its Christian values. “We believe that caring for patients and their families in our hospitals, physician offices, imaging centres and emergency rooms is sacred work. We take care of the whole person, not just the physical element, but the spiritual side as well,” explains Andy OCTOBER 2020

213

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KETTERING HEALTH NETWORK

“ We believe that caring for patients and their families in our hospitals, physician offices, imaging centres and emergency rooms is sacred work” 214

— Andrew Lehman, CIO and Senior VP

Lehman, Chief Information Officer and Senior Vice President.

He explains that this mission drives the IT strategy of the organisation. “It is all about improving the quality of life for the people in the communities we serve. Within Kettering Health Network’s Information Systems division, we have a vision statement of ‘Only value’, which speaks to the need for us to maximize value delivery. There’s a lot of work many IT organisations do that may not add value, for example fixing broken computers or resolving a network outage.

Obviously, we’ve got to spend time resolving those problems, but if we didn’t have those kinds of issues, we could be deploying our resources on priorities to advance the strategies of the organization. Our vision of ‘Only value’ emphasizes value delivery, which ultimately achieves the Kettering Health Network mission. “ Over the last four years, Kettering has implemented several important new solutions, both internally, such as how it transforms data from across the network into actionable information, and externally with its

OCTOBER 2020

Changes that Covid19 has made to healthcare CLICK TO WATCH

|

3:24

215 “direct to guest” technology. “We’re

This includes telemedicine in vari-

very intentional about the word

ous forms, a service that became vital

‘guest,’ because when patients

when the COVID-19 pandemic began.

come into our facilities, they’re

“When the COVID-19 crisis hit, we

typically with somebody, whether

rolled out our direct to guest telemed-

that’s a spouse, a significant other

icine solution across 800 employed

or a family member. We believe it

providers throughout Kettering

is as important to engage the sup-

Health Network. We saw the number

port team as much as the patient,”

of virtual visits go from 1% to over

Lehman explains. “Our direct to

40% in about two weeks, because

guest technologies are those that

our guests didn’t want to travel and

we’ve put in place to try and engage

were concerned about going to the

with guests – whether they are

physician’s office. We put in place a

patients or family members--to cre-

solution that gave our patients and

ate a great healthcare experience.”

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“The focus on endpoint detection and response really picked up pace five years ago or so,” she explains. “But it seems like hardly any real-time autonomous protection techniques were added and the market shifted to the methodology where you rely on the human factor (security analysts and SOC teams) to be better protected. We have the proven, best solution out there and it’s based around the knowledge that you cannot stop the attack from happening infiltration is inevitable, but damage doesn’t have to be. Nyotron’s PARANOID solution will stop the malicious attack and prevent the damage. Most companies rely on some type of antivirus or anti-malware solution to protect their endpoints or servers, which are anywhere between 50% to 80% efficient.

Our PARANOID solution closes those remaining gaps that are left by other security products so that companies can focus on their digital transformation journeys without fear of data breaches or ransomware attacks.”

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antivirus (AV) or next-generation antivirus (NGAV) protection. It does so by mapping legitimate operating system behavior, understanding all the normative ways that may lead to damage and being entirely agnostic to threats and attack vectors.

When any attack attempt happens, PARANOID blocks it in real time and provides deep and precise visibility into the attack.

The solution works with a company’s AV or NGAV systems to provide industry-leading defense in depth that enables greater threat detection and enhanced protection.

This level of protection is invaluable for customers worldwide, including Kettering Health Network, a nonprofit health organization based in the US. “Kettering is at the forefront of care and technology,” says Manor, “and we’re very proud to have them as one of our key customers. They’re an early adopter of our technology that truly believes in the defense in depth strategy that we provide. Actually, we proved our worth in the early stages of our relationship - Kettering was looking for an endpoint detection and response solution but, during our proof of concept work, we detected and prevented malicious activity, and the rest is history.”

KETTERING HEALTH NETWORK

218

to engage with their providers and do it in a way in which they felt safe.”

As well as these consultations,

These represented a huge step forward, as Lehman explains: “It’s not just about, ‘hey, we’ve got a

Kettering implemented physician-to-

telemedicine solution.’ It’s about

physician telemedicine solutions in

discovering what the right technol-

hospitals, where it installed COVID

ogy is, and how we bring it across an

units with strict protocols to ensure

entire employed physician group to

the environment is safe for the

make sure they’re comfortable using

patient, their family members, and

it. There’s a number of parts and

the caregiver. It also launched a ser-

pieces that have to be put into place,

vice to keep patients and their loved

which we did very quickly, and it was

ones connected in cases where

a tremendous success story.”

someone was unwell with COVID-19 and unable to see visitors.

OCTOBER 2020

Kettering Health Network’s Information Systems division also

successfully moved 3,000 staff

was call center staff, marketing and

members to working remotely in the

human resources, the people who

space of 10 days. “It sounds easy,

document and bill for services, all

but it was hard,” Lehman says. “We

those core network teams needed

had to ensure they had the connec-

to be set up to work from home. We

tivity, the equipment and the access

basically figured out how we could

to the applications they needed to

get as many people to work remotely

do their job. This wasn’t just for IT, it

as possible, whether that was just

E X E C U T I V E P R O FILE :

Andrew Lehman Title: CIO and Senior VP

Company: Kettering Health Network

Industry: Healthcare

Location: Kettering

Andy Lehman is Chief Information Officer and Senior Vice President at Kettering Health Network in Dayton, Ohio. Kettering Health Network is a not-for-profit network of nine hospitals, Kettering College, and over 120 outpatient facilities serving southwest Ohio. With more than 12,500 employees and 2,100 physicians, Kettering Health Network is committed to transforming the health care experience with world-class health services for every stage of life. Kettering Health Network has been recognized as one of IBM Watson Health’s 15 Top Health System network and named one of the Fortune 100 Best Companies to Work For. In his role, Mr. Lehman oversees the development of the overall strategic plan and financial goals for Information Systems, as well as their daily operations. He has a Bachelor of Science in Chemistry from the University of Richmond in Richmond, Virginia, and an MBA from Indiana Wesleyan University. busi ne ssc hi ef . com

219

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“ We believe it is as important to engage the support team as much as the patient” — Andrew Lehman, CIO and Senior VP

years positioning ourselves from an analytics standpoint to be ready for this, and from a digital guest experience, to provide direct to guest technologies. We had put in place platforms to enhance collaboration across the enterprise, like Microsoft Teams. It wasn’t like we woke up one morning in March and said, ‘oh, we’ve

individuals or whole teams, as well

got to deploy Microsoft Teams.’ We

as move entire support centers to

actually started that within the past

be able to work from home.”

year. All of these things that we were

Additionally it had to build the IT

doing around digital transformation

infrastructure for testing centers, the

didn’t start the day the pandemic was

COVID units in hospitals, and that of an

announced, and I’m glad they were in

entire command center that oversees

place to meet the challenges.”

how the network responds to the

Strong partnerships were key

COVID crisis. They also created supply

to implementing solutions like

inventory solutions to assess the num-

physician-to-physician consulta-

ber of masks, ventilators and Covid

tions via telemedicine in the COVID

testing reagents they had, and where

units, which In Touch Healthcare

these were located. “We had to move

provided. The Doxy.me platform

so fast,” Lehman says. “So much of the

enabled the rapid deployment of

COVID response was dependent on

telemedicine visits for guests across

information systems and IT.”

our employed provider network.

IT overcame the clear challenges,

Asparia delivered a text messaging

having been prepared for some

service to check whether patients

aspects of the crisis because of its

have developed COVID-19 symptoms

ongoing process of digital transfor-

before coming to an appointment; this

mation. “We have spent the past few

is then followed up by the option of a busi ne ssc hi ef . com

221

KETTERING HEALTH NETWORK

222

The rapid change in technology when fighting against COVID-19 CLICK TO WATCH

OCTOBER 2020

|

2:37

have to be able to connect, and our backbone performed flawlessly. All of those vendors played key roles and helped us navigate the waters to do what we did with COVID.” Looking ahead, Lehman believes the changes the company has made will remain long term. “Although the pandemic has had catastrophic impacts across the world, the challenges we faced ultimately led us to meet our mission in innovative ways.

COVID was a catalyst that accelerated the digital transformation of Kettering’s operations. Through telemedicine, collaboration platforms, telemedicine consultation if appropri-

analytics, and direct to guest solu-

ate via Doxy.me. Nyotron provides

tions, Kettering is transforming the

Kettering with endpoint security

healthcare experience.”

solutions at a time when health care

All of this is happening at a time

networks are besieged by bad actors

when the US healthcare sector

and hackers. Microsoft not only ena-

overall is undergoing huge change,

bled collaboration via Teams when

moving away from the fee-for-

face to face meetings were elimi-

service system – where the more

nated, but also provided a health bot

tests, studies and other services are

which allowed guests to determine

carried out, the more the healthcare

the right level of care based on symp-

network gets paid, regardless of out-

toms. Lehman identified Cisco as the

come – towards fee for value. It’s a

company’s networking backbone.

move that’s driving a vast amount of

“When you send people home, you

innovation and investment. busi ne ssc hi ef . com

223

KETTERING HEALTH NETWORK

Kettering Health Networks digital transformation

224

CLICK TO WATCH

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2:08

“ We'll make sure people stay healthy as opposed to just treating them when they're sick. That's a huge change for the United States' healthcare system, and Kettering has to evolve like everybody else to be successful” — Andrew Lehman, CIO and Senior VP

OCTOBER 2020

1964

Year founded

12,000 Number of employees

225

“In the next five years, we’re going to see this shift accelerate, and it’ll start driving initiatives like wellness and keeping people out of the hospital. We’ll make sure people stay healthy as opposed to just treating them when they’re sick. That’s a huge change for the United States’ healthcare system, and Kettering has to evolve like everybody else to be successful.”

busi ne ssc hi ef . com

226

WRITTEN BY

JONATHAN CAMPION PRODUCED BY

RYAN HALL

OCTOBER 2020

Emerson St. for Teens & Young Adults provides a supportive community for individuals age 15 - 26 seeking connection and belonging.

227

The Mental Health Center of Denver: The human side of tech busi ne ssc hi ef . com

MENTAL HEALTH CENTER OF DENVER

Dr Wes Williams, Chief Information Officer of the Mental Health Center of Denver, tells us how technology could make Denver the healthiest city in America Dr Wes Williams wants Denver to be the healthiest city in America. His role in this, as Chief Information Officer of the Mental Health Center of Denver, is to lead on technologies that play an instrumental part in supporting the city’s most vulnerable. But in the course of a wide-ranging interview, Williams also 228

speaks enthusiastically about how innovation has benefited the people who work at the organisation.

MAKING TELEMEDICINE WORK: THE TRANSITION TO REMOTE TREATMENTS In Colorado, the COVID-19 pandemic has not only taken a toll on people’s mental health; it has also created unprecedented challenges for the clinics that provide them with care. Even for an organisation that prides itself on its innovative approaches, the transition from in-person therapies to telemedicine hasn’t been easy. Dr Williams admits that when the organisation was forced to bring all of its services online – which it managed to achieve in two days – putting the technology in place was

OCTOBER 2020

The Mental Health Center of Denver’s Deaf & Hard of Hearing Services team provides specialized outpatient mental health care for deaf and hard of hearing children, families and adults.

229

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MENTAL HEALTH CENTER OF DENVER

“ You can get sucked into thinking that the tech itself is the solution. But the reality is that it’s only the easy part” — Dr Wes Williams, CIO, Mental Health Center of Denver

230

Dr Williams feels that in some ways the upheaval could have been a bless-

only the start of the process. “You

ing in disguise. “The takeaway for me

can get sucked into thinking that

is that if you practice something, you

the tech itself is the solution. But the

can figure it out. We’ve had the chance

reality is that it’s only the easy part.

to really practice and learn how to do

It took a lot more work to figure out

this well. That’s been the silver lining.

how to really do that work – how to

And from a telemedicine standpoint,

make everything happen”.

I’m optimistic that even when it’s safe to go back into clinics, some folks are going to choose to continue to receive their care via telemedicine, because it’s more convenient”. To illustrate his idea, he mentions that since patients have been attending appointments remotely, the number of no-shows has decreased by almost a third.

OCTOBER 2020

Benefits of VR Treatments CLICK TO WATCH

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2:49

231

INNOVATIVE TECHNOLOGIES FOR MENTAL HEALTH TREATMENTS

And I think that is especially impactful

The Mental Health Center of Denver

sure therapy”.

for things like mindfulness, and expo-

harnesses technologies in ways that

Another of the Center’s ambitious

truly make a difference to people’s

projects is a supported employment

lives. Before its clinics were closed,

programme, which helps people

it had introduced virtual reality (VR)

suffering from serious mental illness

into its therapy sessions and mindful-

to find work. The Center liaises with

ness classes. Dr Williams believes

both patients and potential employers

that VR is a perfect fit for what the

in order to set up placements, and

sessions are aiming to achieve:

Dr Williams talks passionately about

“What’s great about VR compared with

the benefits that this brings. “I think

any other cognitive behavioural ther-

that it’s a special part of our organisa-

apy is that it’s so immersive. It sort of

tion. There’s a lot to be said for going

tricks your mind into being right there.

back to work, and having that sense busi ne ssc hi ef . com

“ If you practice something, you can figure it out. We’ve had the chance to really practice and learn how to do this well” — Dr Wes Williams, CIO, Mental Health Center of Denver

So far, over 160 people have found work through this scheme.

The Center has also used IT to make the programme work more efficiently

of meaning in your day”. The Centre

for the people who coordinate it.

is involved in the IT aspects of the pro-

Dr Williams explains: “Previously the

gramme, and developed an app that

staff working on our supported employ-

helps staff cultivate new placements.

ment programme had to spend a lot 233

E X E C U T I V E P R O FILE :

Wes Williams Title: Chief Information Officer Industry: Mental Health Care Location: Denver, Colorado Dr. Wes Williams joined the Mental Health Center of Denver in 2007 and now serves as vice president and chief information officer.

In 2020, Wes was awarded the Colorado CIO of the Year Corporate ORBIE, honoring chief information officers who have demonstrated excellence in technology leadership. Wes opened Mental Health Center of Denver’s Innovation Technology Lab in 2019, using humancentered design to find digital health innovations to improve access, engagement, and treatment efficacy. Wes is currently serving a threeyear appointment by the governor to Colorado’s eHealth Commission, representing behavioral health interests.

Wes is a licensed psychologist in Colorado.

© 2018 Guerrero, LLC/Photo by Cassandra Davis busi ne ssc hi ef . com

Mental Health Center of Denver Pairing social workers with police to provide added resources for working with the mentally ill - saving lives and diffusing situations.

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Sanderson Apartments features permanent supportive apartment homes and is designed to provide a safe, open and inviting environment that minimizes the effects of trauma, avoids any sense of confinement and ensures residents feel safe.

235

of time just doing reports. But we have

hasn’t gone unnoticed. In July he

been able to automate a lot of the

received an ORBIE award at the

bureaucracy and paperwork – and that

Colorado CIO of the Year Awards, for

feels good, because it means that they

his work at a corporate organisation.

have time to spend actually working with

Talking about the lessons that larger

people, instead of filling out forms”.

organisations could learn from how the Mental Health Center of Denver

MAXIMISING THE POTENTIAL OF HEALTHCARE TECHNOLOGIES

that clear-headedness counts for

Dr Williams’ success in making a dif-

more than deep pockets. “In order

ference with healthcare technologies

to really do something unique and

manages its resources, he stresses

busi ne ssc hi ef . com

MENTAL HEALTH CENTER OF DENVER

1989

Year founded

$100Mn+ Revenue in US dollars

900+ Number of employees

236

The Mental Health Center of Denver’s 2Succeed in Education program offers a wide variety of trainings, including computer classes.

OCTOBER 2020

Using Technology to Treat Health CLICK TO WATCH

|

1:18

237 innovative, we can’t wait until we have finished everything else. It’s about taking that vision and figuring out: given my limited resources, how should I line things up?” But he is most keen to credit the people who have allowed the Center to be a pioneer in innovative solutions: “I really like the staff here. They have a culture of innovation – they’re used to doing things differently clinically; used to figuring out what works. When we have good people, we can take that same innovative approach to technology, and how might that help with healthcare”. busi ne ssc hi ef . com

MENTAL HEALTH CENTER OF DENVER

“ We have been able to automate a lot of the bureaucracy and paperwork – and that feels good, because it means that [our staff] have time to spend actually working with people” 238

— Dr Wes Williams, CIO, Mental Health Center of Denver

Lessons for Innovative IT CLICK TO WATCH

OCTOBER 2020

|

2:30

239

When it comes to new innovations,

How will we see telemedicine develop

the Centre looks outwards as well

in future? “This is a really interesting

as inwards; but Dr Williams points out

time. What I’m hoping is that everything

that it doesn’t have to look far. “One

we’ve learned about telehealth during

of the things that’s really special about

the pandemic takes root in healthcare,

Colorado is there’s a lot of collaboration

and really explodes”.

within healthcare. Every other month there’s a meeting of hospital and healthcare CIOs. We talk about the different challenges we have faced, and how we handled the situations. And this feels special, because in this landscape our organisations are all sort of competing, but people are still willing to share”. busi ne ssc hi ef . com

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OCTOBER 2020

241

CONNECTED DATA CENTRES FOR EDGE MARKETS WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

LEWIS VAUGHAN

busi ne ssc hi ef . com

DC BLOX

JEFF UPHUES, CEO OF DC BLOX, DISCUSSES HIS ORGANISATION’S EXPANSION IN UNDERSERVED MARKETS AND HOW IT INTRODUCES ITS DATA CENTRES LOCALLY WHILE SERVING GLOBALLY

F

ounded in 2014, DC BLOX develops core infrastructure that empowers businesses in smaller growing cities to achieve their

digital transformation goals, and enables local governments to accelerate economic growth by attracting technology-dependent companies and 242

jobs to their regions.

Jeff Uphues has been the CEO at DC BLOX since 2017. He is responsible for setting and leading the company’s strategy in building and operating a fabric of edge connected, cloudenabled data centres and driving the growth and profitability of best-in-class infrastructure for digital services. “My background has primarily been in the communications sector, both from a cloud, data centre and communications perspective,” says Uphues. “I’ve got around 30 years experience of increasing responsibility across various areas of the communications sector from fiber to network services to cloud-based hosting services to data centres. It feels like I’ve come full circle.”

DC BLOX currently has four data centres: Atlanta, Georgia, Chattanooga, Tennessee, OCTOBER 2020

243

busi ne ssc hi ef . com

DC BLOX

“ WE’RE REALLY FOCUSED ON OUR ABILITY TO SERVE LOCALLY AND CONNECT GLOBALLY ON BEHALF OF OUR CUSTOMERS”

244

on behalf of our customers,” explains Uphues. “We bring a Tier 3 or higher rated facility, which is the industry standard for reliable data centres, according to The Uptime Institute.

When we look at these markets, we ask ourselves whether there is a Tier 3 data centre already there. Would the market benefit from us delivering

— Jeff Uphues, CEO, DC BLOX

a service that serves them locally, is

Huntsville and Birmingham, Alabama,

society? It’s key that there’s a value.”

a part of that community, and connects them as we live in a global

all built with a high level of security,

Uphues affirms that his company’s

reliability and connectivity. Uphues

data centres all have rich connectivity

believes the challenge is to find a mar-

built-in and must be resilient in terms

ket that is underserved while ensuring

of its network architecture and qual-

there is a demand to gain benefit.

ity of equipment. “We use premium

“We’re really focused on our ability

products, driven by premium service

to serve locally and connect globally

level agreements. We engineer and operate our own private data network across the Southeastern US between our data centres and then

OCTOBER 2020

DC Blox’s Views on the networking challenges that companies are facing with Covid19 CLICK TO WATCH

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2:27

245 we connect them privately to core

and the type of vendors that we use.

Internet exchanges and to the public

It’s in the architecture for how we con-

cloud providers. We really look at that

nect them together.”

connectivity and the uptime of our

Bill Thomson, VP, Marketing and

facilities as a key value that we bring

Product Management at DC BLOX,

to our markets.” Achieving DC BLOX’s

affirms there is a significant amount

high standards also requires a high

of evaluation performed when decid-

standard of construction. “Beyond the

ing on the location of a data centre.

connectivity, it’s a question of how we

“We do a considerable amount of quan-

build these facilities to be Tier 3-rated.

titative analysis of these markets. We

It comes down to being concurrently

first look for markets that have limited

maintainable, meaning that if any one

access to secure, reliable data centre

system in the building fails, there is a

facilities. We don’t just look at the mar-

backup system that can take over. It’s

ket size but also their growth potential.

part of the design, it’s in the materials

We look at the amount of fiber access busi ne ssc hi ef . com

DC BLOX

246

in the markets, IP traffic, and land and power costs. These are all big indicators of potential business growth and

2014

Year founded

value. We also consider state, county and city tax incentives.” Currently, Uphues’s focus is on accelerating growth in edge markets. “It’s all in how you define the edge,” he explains. “DC BLOX defines the edge as where the application meets the network. And some would look at our markets as edge data centre markets, while others might look at it as a hub that then connects to an edge device where OCTOBER 2020

HQ

Atlanta, Georgia USA

35

Number of employees

E X E C U T I V E P R O FILE :

Jeff Uphues Title: Chief Executive Officer

Location: Atlanta

Industry: Information Technology & Services Jeff Uphues has been the CEO at DC BLOX since 2017. He is responsible for setting and leading the company’s strategy in building and operating a fabric of edge connected, cloud enabled data centres and driving the growth and profitability of best-in-class infrastructure for digital services. “My background has primarily been in the communications sector, both from a cloud, data centre and communications perspective,” says Uphues. “I’ve got around 30 years’ experience of increasing responsibility across various areas of the communications sector from fiber to network services to cloud-based hosting services to data centres. It feels like I’ve come full circle.”

Uphues previously served as Executive Vice President for Liquid Web, a global managed hosting and data centre operator that serves over 30,000 customers in over 150 countries. Having been in the communications industry for almost 30 years, he is a tireless tech-savvy executive and business strategist, having held several C-suite leadership positions in sales, marketing and operations for Cbeyond, Bandwidth, ACSI Network Technologies and MCI. He serves as an active board member at several technology firms and has also co-chaired the SE New Venture Competition for Harvard Business School to select the regions’ best start-up ventures. Uphues graduated from the Harvard Business School, Rice University’s Jones School of Business Executive Education program in Finance and Accounting and completed his undergraduate studies at the University of Texas at Arlington.

Having initially joined DC BLOX in 2016 as an Advisory Board Member, Uphues stepped into his current role as CEO in March 2017 and he affirms that together with employees and investors “we’ve built a really great company” during his tenure.

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“ WE DO A CONSIDERABLE AMOUNT OF QUANTITATIVE ANALYSIS OF THESE MARKETS. WE DON’T JUST LOOK AT THE MARKET SIZE BUT ALSO THEIR GROWTH POTENTIAL” — Bill Thomson, VP, Marketing and Product Management, DC BLOX

As a result, DC BLOX has become

that local hub where a significant amount of data traffic can pass through its facilities. “We like to think we’re

that network meets the application,

the centralised place in our markets

like a cell phone or a cell tower. We

where content, carrier, cloud, wire-

find that many people consider DC

less and network enterprise traffic

BLOX locations as edge markets out-

passes through our data centres,”

side of the larger core market areas

explains Uphues. “We’ve become the

where large hyperscale or larger data

Grand Central Station where con-

centres are located.”

nectivity originates and terminates

Do local business’s need local connectivity, DC blox explains why CLICK TO WATCH

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2:18

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249

DC BLOX

C O V ID- 19 CHALLEN GE

250

With the challenge of COVID-19 impacting organizations worldwide, Uphues acknowledges that the network has shifted. “Pre-COVID-19, the network used to be delivered at people’s offices,” he says. “However, people are now working in lots of remote environments, it’s changed the way that people connect to VPNs and driven a more hybrid type world.

This means that some of the things you’re connecting and working on are in your office and in a data centre that’s close to you, whereas, there’s also companies embracing cloud computing at a faster rate. That’s

OCTOBER 2020

a hybrid environment to us.” Uphues understands the network challenges that have resulted from the pandemic and stresses the importance of customer-centricity. “At DC BLOX, we have access through how we’ve created our network and pulled things together to give our customers immediate access and connect to over 50 carriers globally from one of our facilities,” says Uphues. “We provide it to the fingertips of our customers. If you’re a customer at one of our centres, you have access to change to whatever business demand you require.”

“ IT’S NO LONGER JUST A FACILITY DECISION ABOUT WHERE MY IT INFRASTRUCTURE NEEDS TO GO. IT’S A STRATEGIC IT DECISION ABOUT WHO TO PARTNER WITH IN ORDER TO PROVIDE AGILITY AND FLEXIBILITY” — Bill Thomson, VP, Marketing and Product Management, DC BLOX

with larger markets. For example, in the state of Alabama, we have two of the most connected sites where computing, internet and cloud services traffic can be connected, managed and exchanged.” Thomson adds that although DC BLOX is building in what could be considered an edge market, it doesn’t mean that these are traditional edge data centres. “Edge data centres have lots of different meanings. We’re building a full-service 251

E X E C U T I V E P R O FILE :

Bill Thomson Title: VP, Marketing and Product Management

Location: Atlanta

Industry: Information Technology & Services Bill Thomson joined DC BLOX in 2018 and heads marketing and product management for the company. He is a technology industry veteran having developed and marketed a considerable number of enterprise software, SaaS applications and cloud services products geared to SMB and enterprise markets.

Thomson has led strategic product planning, marketing and product growth for many leading technology companies including AT&T, Citrix, Unisys, NTT, Cbeyond and Vonage. He has served on the Technology Association of Georgia Product Management Society Board, holds a Master of Science degree from Stevens Institute of Technology and a Bachelor’s degree in Computer Science from Rutgers University. busi ne ssc hi ef . com

DC BLOX

An insight to DCBlox’s approach to new market selection CLICK TO WATCH

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“ PRE-COVID-19, THE NETWORK USED TO BE DELIVERED AT PEOPLE’S OFFICES” — Jeff Uphues, CEO, DC BLOX

With an eye on the future, Thomson believes it’s important to recognise that data centres aren’t what they

multi-tenant data centre built to Tier

used to be. “It’s no longer just a facility

3 standards in these markets. The

decision about where my IT infra-

business needs aren’t any different

structure needs to go. It’s a strategic

in these edge cities than the major

IT decision about who to partner with

markets, so they don’t consider them-

in order to provide agility and flexibil-

selves edge markets and are looking

ity,” explains Thomson. “You need to

for the same quality of services that

be able to follow your digital transfor-

they could get in the major cities.”

mation goals, you need to connect

OCTOBER 2020

253

to the cloud, you need to move data

and growing markets,” he explains.

to and from devices, and it’s difficult

“We want to be the centralised

to do it on your own in the old-fashioned

exchange point for all cloud, content,

way. A new modern, highly connected

carrier, wireless and enterprise traf-

data centre is an important tool and

fic in our markets as we extend the

DC BLOX is a great partner for those

network edge. We’re continuously

types of relationships.” Uphues adds

seeking to expand that a bit further

that the future is bright for DC BLOX

and really accelerate our footprint.”

and the company has a plan to continue to serve underserved markets.

“Today, we have four data centres.

But with the future in mind, we want more than a dozen over the next three to five years within many underserved busi ne ssc hi ef . com

254

Afore XXI-Banorte: delivering on the promise of services WRITTEN BY

WILL GIRLING PRODUCED BY

GLEN WHITE

OCTOBER 2020

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AFORE XXI-BANORTE

Rodrigo Becerra Mizuno, CDO/ CIO, explains why technology can improve customers’ lives and how Afore XXI-Banorte became one of the best funds in Mexico

T

here are many paths to reaching the distinction of being among ‘the best’ in a given industry: some favour customer-

centricity, others opt for a more technological approach or one that emphasises outstanding company culture. However, an elite species of 256

organisations have the vision and temerity to wed all three together and Afore XXI-Banorte is unmistakably part of this distinguished class.

It was with pleasure that we welcomed back Rodrigo Becerra Mizuno, Chief Digital Officer and Chief Information Officer, who last spoke with us whilst still at PEMEX. Having joined XXI-Banorte in 2019, Mizuno says that he was looking for an opportunity to put his considerable technical experience in the public and private sectors to new use.

“At the start of my career technology was still seen as a ’back-office function’,” he explains. However, as digital transformation continues to redraw the landscape of so many industries, the world of finance has naturally undergone some changes of its own and amongst these Mizuno saw the chance to make a positive impact. “It’s a highly regulated OCTOBER 2020

257

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AFORE XXI-BANORTE

Digital Transformation Roadmap CLICK TO WATCH

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258 environment, so there are parameters

“ By [...] investing in the right technology, we hope to create comprehensive protection programmes for our employees” — Rodrigo Becerra Mizuno, CIO, Afore XXI-Banorte

OCTOBER 2020

that we need to follow whilst also factoring in engagement. In my opinion, we have to present a customer experience similar to retail and it’s been a lot of fun doing that.”

Mizuno’s credentials as a tech expert are attested by his previous tenure as an executive at Microsoft, a valuable experience which he says continues to influence his vision and leadership at XXI-Banorte. “I heard a very famous quote from Bill Gates: ‘We need banking. We don’t need banks anymore’.

What that means to me is that the idea

of financial services or banking has

of technological innovation, Mizuno is

changed after a long time of remain-

confident that the future of finance will

ing static.” As regulatory restrictions

belong to those who are willing to shape

become more flexible as old operating

it themselves. “You make the role, the

paradigms are reevaluated because

role doesn’t make you,” he emphasises.

E X E C U T I V E P R O FILE :

Rodrigo Becerra Mizuno Title: Chief Information Officer

Company: Afore XXI-Banorte

Industry: Pension Management

Location: Mexico

Mr. Rodrigo Becerra Mizuno served as Chief Information Officer and Corporate Vice President at PEMEX. He led one of the largest digital and business transformations in Latin America. This highly visible initiative allowed him to be awarded with the 2018 HITEC 50 and to be recognised two consecutive years as one of the Top 100 CIOs in Mexico by CIO Magazine for his outstanding performance in Pemex. He has held various senior leadership roles at Microsoft Corporation including Global Public Sector Manager, Managing Director Global Government Industry, and Public Sector Director Asia based in Singapore. Since October 2019 he serves as Chief Digital Officer for Afore XXI-Banorte, the largest fund in Mexico and Latin America. In 2001, he served as Advisor to the Finance Minister of Mexico. He earned a Bachelor’s Degree in Economics and International Relations from Boston University and an MBA in General Management and Strategy from the Tuck School of Business at Dartmouth College in New Hampshire.

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Copyright © 2020 Accenture. All Rights Reserved.

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AFORE XXI-BANORTE

Cloud and Data Analytics CLICK TO WATCH

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In line with this thinking, Mizuno has

In addition to XXI-Banorte’s cultural

refocused XXI-Banorte’s IT department

agility, the core tech enabler for this

from its previously “reactive” state to a

swift transition was incontestably

far more strategic and ROI (return on

the cloud. It is this aspect, Mizuno

investment) focused entity. This, in turn,

argues, that is and will continue to

has made the entire company much

change the shape of finance to come.

more agile, which became invaluable

“Cloud is transforming XXI-Banorte; it

when the COVID-19 pandemic reached

is the cornerstone of what allows our

Mexico and introduced the now all-too-

information to be stored, processed

familiar operational challenges of social

and delivered, while also allowing new

distancing. “We were able to digitalise

applications to flourish. In terms of

and enable practically everybody to

cost efficiency, it was not practically

work from home in less than 48 hours,”

viable to do the things we can do now

states Mizuno.

with the cloud, because before that

OCTOBER 2020

2012

Year founded

$379M+ Revenue in US dollars

their strengths, reconfiguring project work from “marathons” to “sprints” (reflecting the more fast-paced structure of the company) and exploring the use of technology to benefit both employee and customer processes.

Moreover, Mizuno hopes to explore tech innovations which have yet to be fully realised in banking, such as

150

Number of employees

unlocking the full potential of data analytics and developing even greater cybersecurity capabilities. Regarding the latter point, he notes that Mexico has only recently made the presence of a Chief Security Officer mandatory,

we used huge national data centres that were highly expensive.” Its utility has given cloud an important place in XXI-Banorte’s ongoing digital strategy, but that isn’t the end of the story; since October 2019, Mizuno has been developing what he calls a ‘3.5-year digital roadmap for transformation’, something which he hopes will achieve a more unified future for the company, “You could look at it as working towards one vision and a singular platform,” he explains. In practice, this meant consolidating teams based on busi ne ssc hi ef . com

263

AFORE XXI-BANORTE

A F O R E X X I B A N O R T E PA R T N E R S

264

Success in any field does not belong to one individual or entity alone. XXI-Banorte realises this and only seeks collaborators which are as productive, technically savvy and hungry to learn as itself. Three companies have earned distinction in XXIBanorte’s view as contributing particularly valuable services: Accenture, Microsoft and Telmex.

Accenture: ”Accenture is one of the only companies which has a truly holistic approach; it doesn’t just master technology, it also masters processes and what it takes. For us, its been a great partner: it helps us be diligent and plan how to bring things together through data management and enabled Banorte to be a data-driven organisation.”

OCTOBER 2020

Microsoft: “We run all of their productivity applications and they’re our cloud provider too: Azure. One of the key capabilities we need is to outreach potential customers and having those tools is essential. Microsoft provides these.”

Telmex: “We’ve had the opportunity to work with Telmex on our infrastructure. XXI-Banorte has been on a learning curve to make sure that we spot the right things together whilst also ensuring operations are not being hampered by too much security or too little.

Also, on the infrastructure side, we’ve started migrating our data with them. Overall, Telmex has been a fantastic collaborator, both in terms of security and structure.”

but that XXI-Banorte is already ahead

this, Mizuno makes it clear that a

of the curve in bolstering its cyber

well-developed workplace culture

defences. “We’ve been spending a lot

remains one of XXI-Banorte’s primary

on training people and we’re going to

concerns and singles out CEO Juan

continue to do so: we want to have the

Pablo Newman for special praise in

right people with the right certifica-

this regard. “He’s also an extremely

tions. By also investing in the right

approachable person and very driven

technology, we hope to create com-

by results. I think it’s especially impor-

prehensive protection programmes for

tant to have that vision in the company.”

our employees.”

Deftly handling the COVID-19-related

However, when it comes to digital

disruption with an always people-

transformation, an often overlooked

centric attitude, Mizuno states that

aspect can be the accompanying

Miguel has successfully conveyed

cultural shift which it entails. Despite

the message that XXI-Banorte is

Cyber Security CLICK TO WATCH

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265

AFORE XXI-BANORTE

truly a company that cares. “He has been very protective of people and we are still delivering some of the best results in the industry; it’s that fantastic combination which gives people a lot of trust.” Indeed, with the company maintaining its status as one of the country’s most beloved financial institutions, some might question how XXI-Banorte can maintain its competitive edge. For Mizuno, it comes down to a simple formula of quality, care and staying true to 266

the organisation’s proudly Mexican roots: “Providing a great service and making sure that you differentiate as

“ Technology is a never ending journey and, in times of crisis, that’s when we need to develop it the most” — Rodrigo Becerra Mizuno, CIO, Afore XXI-Banorte OCTOBER 2020

a Mexican company that it cares not only for the business but also the citizens of Mexico is important,” he says.

Reflecting on the challenges that 2020 has presented, Mizuno states that the difficult conditions have actually enabled XXI-Banorte’s IT department to thrive as creative, techbased solutions became a necessity to maintain business continuity. “We’ve had to move faster in our digital transformation to deliver services on the web or in the mobile applications,” he

267

explains. “XXI-Banorte has strived to

actually removed a lot of mental block-

deliver better apps for our employees

ers for some leaders. People can work

to do their job easier and better, which

effectively from home now and that’s

consequently means there is less traf-

deeply changed the conversation on

fic and customer needs are met faster.”

how offices and work days should be

When he looks ahead to 2021, Mizuno

structured.” And this reaches the crux

can proudly say that it won’t be a year

of what technology in banking is for

of ‘unfinished business’; COVID-19

Mizuno, a ‘conversation’: “Technology

has not dented the bank’s resolve

is a never ending journey and, in times

to transform into a truly 21st century

of crisis, that’s when we need to

operation. In fact, the pandemic may

develop it the most.”

have been the catalyst for change that IT has been waiting for. “COVID-19 has busi ne ssc hi ef . com

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