Business Chief USA – July 2019 by Business Chief USA

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EDITION JULY 2019

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Your Safety...Our Commitment

Balancing tradition with transformation

Putting safety and sustainability first

The next generation of data center CEO Chris Downie on the importance of f lexibility and customer centricity

City Focus

TOP 10

Zooming in on thriving startups

Manufacturers in the USA

FOREWORD

elcome to the July issue of Business Chief USA. This month’s cover story features Flexential, the data center services company driving the digital transformation of its clients’ data infrastructure. CEO Chris Downie discusses the key differentiators putting Flexential ahead of the competition as a flexible and essential data center partner with a focus on Chris Downie, customer success. CEO, Flexential Downie, a passionate lover of rugby and business solutions alike, carries the cooperative, strategic and spiritual ethos of the sport through his role – with great success thus far. “Rugby is a sport where strategy and teamwork are key to how you execute plays. At Flexential we also focus on strategy and teamwork.” Also featured in this month’s issue is Bartell Drugs, the oldest family-owned

drug store chain in the US. We sit down with Kari Escobedo, SVP of IT, to find out how the 130 year old company walks the line between the traditional and the futuristic, always delivering the highest quality of service to its customers. This month’s City Focus explores Dallas, investigating the thirdlargest city in the Lone Star State and examining three startups working to change the lives of its citizens for the better. Our Top 10 ranks the country’s largest manufacturers. Make sure to check out our exclusive features on Cashco Financial, Geodis, Heath Consultants and Canadian Western Bank. Enjoy the issue! Harry Menear harry.menear@bizclikmedia.com

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innovation in practice Sprint and Amdocs have been key partners for over two decades, delivering together innovative solutions to make Sprint the success it is today. Our joint accomplishments include modernizing billing support systems, introducing a groundbreaking customer care system, providing cost-effective payments processing and the optimization of current and future network capabilities. This strong Sprint-Amdocs partnership has won widespread industry recognition, including the 2017 Global Telecoms Business Award for Consumer Service Innovation. Visit www.amdocs.com to learn more about how you can partner with Amdocs to innovate successfully.

USA EDITION EDITOR-IN-CHIEF

HARRY MENEAR MANAGING EDITOR

OLIVIA MINNOCK

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CONTENTS

14 Customer-centric investment in data center infrastructure

32 Using collaboration to unlock the power of the ecosystem

How is digital transformation revolutionising the supply chain sector?

ELEPHANT

The in the digital room: unplanned downtime

74 City Focus

DALLAS

84 Social impact: balancing profit and purpose

TOP 10

Manufacturers in the US

CONTENTS

100 Bartell Drugs

120 Heath Consultants

134 GEODIS

148 Canadian Western Bank

168 Cashco Financial

CONTENTS

182 Ingram Micro

196 University of Toronto Mississauga

224 Service New Brunswick

210 Town of Caledon

238 ANDRITZ

Flexential: Customer-centric investment in data center infrastructure WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

TOM VENTURO

J U LY 2 0 1 9

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FLEXENTIAL

CEO Chris Downie discusses the key differentiators putting Flexential ahead of the competition as a flexible and essential data center partner with a company-wide focus on customer success.

aving combined in August 2017, Peak10 and ViaWest rebranded as Flexential in January 2018 to highlight the organization’s

commitment to being both flexible and essential 16

to its IT customers. Since then, the data center and hybrid IT operator has continued its forbears’ strong expansion methodology and commitment to the customer experience. “We spend a ton of time making sure that we’ve got a customer success culture – an organization-wide strategy that puts customers at the top,” says CEO Chris Downie. A seasoned data center industry veteran, Downie is also a passionate rugby fan with both college and postgraduate playing experience. He carries the cooperative, strategic and spiritual ethos of the sport through his role as chief executive – with great success thus far. “Rugby is a sport where strategy and teamwork are key to how you execute plays – you have to pass backwards to advance your team and there are no breaks between plays. At Flexential we also focus on strategy and teamwork. J U LY 2 0 1 9

Flexential expanded its data center to 142,000 sq. ft. in Atlantaâ&#x20AC;&#x2122;s technology corridor

Data centers

1,000

Approximate number of employees

Domestic and international markets w w w.busi ne ssc hief. com

FLEXENTIAL

“ We spend a ton of time making sure that we’ve got a customer success culture – an organizationwide strategy that puts customers at the top.” 18

— Chris Downie, CEO, Flexential

Our brand is anchored in the concept, ‘The Power of People in a Technical World®, which for us is all about making our customers successful. Their success is infused in everything we do.” Having been at the heart of the data center industry for more than ten years, Downie has seen firsthand how it has become a vital component of modern business. In light of today’s demands for capacity, security, redundancy, reliability and recovery, flexibility and network expansiveness, Flexential has invested heavily in establishing itself as the best option for companies undergoing digital transformation and expansion across the US. The sheer volume of data being created and being digitized is set to necessitate continuous upgrades to capacity as more data-heavy technologies take root. “There are massive amounts of data being generated for technology, such as artificial intelligence (AI) and a whole host of other applications requiring a data center to function effectively,” says Downie. “Having the capacity for this accelerating growth, and the exponential amount of information that needs to be stored, contained and kept safe for the rest of time, is massive for our

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CLICK TO WATCH : ‘FLEXENTIAL FLEXANYWHERE TM SOFTWARE-DEFINED NETWORK’ 19 strategy going forward.” With 40 data

Flexential’s ability to go beyond the

centers across 21 US markets, Flexential

traditional expectations of a data

has not only the capacity but also the

center operator. Enterprises increasingly

geographical reach to set it apart from

operate in a hybrid world where their

a significant chunk of the competition.

infrastructure is located in many

“Having the ability to offer our products

physical locations and in a variety

across a broad geographical reach

of forms, making Flexential an ideal

allows us to get in front of demand

choice as the home base for a customer’s

across the country,” adds Downie.

hybrid IT operations. “We can provide

The company recently announced

our customers a variety of colocation

expansions to its facilities in Portland,

and cloud infrastructure choices,

Nashville, Charlotte and Atlanta.

helping them manage and protect the

Highlighting customer demand for

data that fuels their business, and most

solution providers with broad capabili-

importantly interconnect that infra-

ties, Downie is enthusiastic about

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FLEXENTIAL

and reliable fashion,” he says. “Our ability

being consumed and where, Flexential

to also offer professional services that can

is working to help them “future proof”

solve the challenges that our customers

their infrastructures. “One of our critical

face serves to make their engagement

differentiators is the network; the

with Flexential even more meaningful.”

investments we’ve made in resources

Flexential’s broad utility set is further

across our portfolio enables our

enhanced by its stellar network

customers to federate their data and

capabilities, and its aggressive invest-

resources anywhere and everywhere

ment strategy in this area is reaping

they need to.”

dividends. As more and more enterprises

A significant facet of Flexential’s

are considering architecture for edge

network platform is its access to the

and distributed computing, as well as

Asia Pacific market via subsea cables.

machine learning and artificial intelli-

Hosting direct access to three

gence toolkits to analyze how data is

trans-Pacific subsea cables, supplying

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connectivity between Asia and the

those cables we have an entry point

West coast of the US offers a huge

to massive data sets, and this puts us

opportunity to Flexential’s customers

in a position to assist consortium

and makes Flexential more competi-

members, and other customers that

tive abroad. “The New Cross Pacific

want to be near those cables, to

(NCP) cable has some of the largest

complete the solutions they’re looking

cloud and communications providers

to build in the US.”

in Asia as consortium members, and it

Flexential has also been actively

extends to China, Taiwan, Korea and

investing in capitalizing on the

a whole host of other countries,” says

opportunities afforded by its size and

Downie. “We also host the Hawaiki

geographic reach, namely the ability

subsea cable which extends to

to communicate with larger customers

Australia and New Zealand. In hosting

that make decisions across multiple 23

E XE CU T I VE PRO FI LE

Chris Downie, CEO Chris leads Flexential as a proven Chief Executive Officer with deep expertise in the economics, delivery and operations of the data center and hybrid cloud businesses. He is responsible for setting and managing the strategic priorities that drive profitable growth. Chris joined the company in 2016. Prior to Flexential, Chris was the Chief Executive Officer of Telx Holdings, a leading interconnection and data center solutions provider based in New York City, New York. He has more than 25 years of combined executive leadership experience in finance and operations, working for Daniels & Associates, BroadStreet Communications and Motient Corporation. Chris holds a B.A. degree in History from Dartmouth College as well as a M.B.A. degree in International Business from New York University.

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CLICK TO WATCH : ‘THE NEXT BIG THING IS HERE: ATLANTA – ALPHARETTA EXPANSION’ 25 geographies and themselves have

financial institution at one of our

demanding requirements. “You can call

southeastern facilities, and that’s

it wholesale, you can call it multi-mega-

going to become one of the largest

watt transactions, but it’s really serving

processing centers for financial

large enterprises and large technology

trading transactions in the world.”

companies with greater deployments

The attractiveness of Flexential’s

than your average company.” Flexential

offering is further compounded by its

has been investing in its internal capabili-

leading security and recovery capabili-

ties to facilitate such deals with growing

ties, aiming to maximize peace of mind

success. “We recently completed a

for customers. “Security starts with

3MW deal in one of our western markets,

the physical security of the data center

with a large SaaS provider that’s

itself,” says Downie. “We’ve been very

focused on data storage; a hyper-scaler

focused on meeting and maintaining

in terms of their global growth. We have

compliance standards across a

also secured a 1.5MW contract with a

number of verticals in our domain. w w w.busi ne ssc hief. com

FLEXENTIAL

111,000+ square-foot data center with unprecedented PUE of 1.3 at full capacity

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“ Our ability to offer Professional Services that can solve the challenges our customers face, serves to make their engagement with Flexential even more meaningful.” — Chris Downie, CEO, Flexential

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We also have a host of security functions

DRaaS. At the time of writing, seven of

built into our network to ensure data

Flexential’s facilities are equipped with

running through it is safeguarded,

its disaster recovery capabilities, with

encrypted and so forth. The network

more on the horizon.

is also a foundational element of our

Looking forward, Flexential continues

Disaster Recovery as a Service

to seek innovation and opportunities

(DRaaS) and recovery cloud functions.”

to enhance its customer offering.

In April 2019, Flexential was recog-

Downie offers Edge computing as

nized by Forrester Research as one of

an example of a customer trend that

eight leading contenders in the DRaaS

Flexential is keen to accommodate.

space, receiving the highest possible

“Data is being generated everywhere,”

rating for Forrester’s core DRaaS

he says, citing autonomous vehicles

offerings criteria. In June, Flexential

and connected vending machines as

was honored by Gartner and included

examples of data generators at the

in the 2019 Gartner Magic Quadrant for

edge of the network. “Those data sets

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FLEXENTIAL

YOUR BEST ELECTRICAL CONNECTION SINCE 1912. Sturgeon Electric’s commercial and industrial electrical construction division specializes in large-scale commercial electrical projects, telecommunications, high voltage distribution service, and maintenance to clients. When it comes to data centers, Sturgeon Electric is the premier contractor of choice. We have provided solutions for mission-critical facilities since the dawn of the digital age. Over the years, we have attained an unparalleled level of knowledge, skills, and experience. More importantly, we’ve gained the trust of our clients in some of the world’s most sensitive data environments.

our customers are consuming power, the scale at which they’re consuming network resources, and whether there is customer interest in different network technologies.” Downie adds that Flexential is equipped with the expertise to make the right call when it comes to such investments and in the personalization of its service offering. “We’re firm believers that the cloud is not the right home for all workloads, and helping our customers appreciate where workloads should reside is really important. As IT environments become more complex, our customers need help making the are coming from very far afield, so

right choices. The challenge for

having the ability to capture, process

operators is being prepared to have

and store them close to the given use

that conversation with customers.”

case is becoming increasingly impor-

Flexential is certainly prepared,

tant. When it comes to the information

empowered by Downie’s team-oriented

generated by a self-driving car, the data

and strategic leadership, and it is clear

needs to be processed by the car itself

that such preparation in each facet of

but it’s also sending huge amounts to

its operations will continue to grow.

local processing centers that need to be proximate to wherever the car is.” Flexential consistently evaluates areas for improvement in its environments, particularly as the needs and expectations of the customer continuously evolve. “We actively monitor how w w w.busi ne ssc hief. com

LEADERSHIP

Using collaboration to unlock the power of the ecosystem Sean Thompson, SVP Business Network and Ecosystem at SAP Ariba and SAP Fieldglass, shares his insights into the power of collaboration and SAP Aribaâ&#x20AC;&#x2122;s new partnership with American Express WRITTEN BY

J U LY 2 0 1 9

HARRY MENEAR

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LEADERSHIP

rogress is a cyclical journey. Creation leads

to hype, which leads to a bubble, followed by a return to earth and, finally, true adoption and

advancement of the market. With the perspective of over 20 years in the business intelligence leadership space, Sean Thompson, Senior Vice

President of Business Network and Ecosystem at SAP Ariba and SAP Fieldglass, is familiar with the process. Having witnessed and been deeply involved in major technological cycles like natural language processing, ecommerce and now the Big Data boom, Thompson is well aware of the key strategies that help push the envelope and work 34

towards lasting growth. “As the gray haired guy in the room, looking around and having seen different cycles unfold, it’s an amazing time to be alive and in the software business,” he reflects. “My career has been a journey that has, in many ways, come full circle.” We sat down with Thompson to discuss a career spent at the forefront of business intelligence, and how SAP Ariba’s new partnership with American Express highlights one of his core teachings: embracing collaboration to unlock the power of the ecosystem. Thompson’s own entry into the software ecosystem began in the early 1990s at professional services giant Deloitte. “Back then, process re-engineering was all the rage,” he recalls. “We were consultants helping companies figure out their business processes and how to make them more J U LY 2 0 1 9

efficient.” Thompson took to this prototypical form of digital transformation with even greater enthusiasm in 1995, when he moved to Seattle and was assigned to the installation of a then lesser-known business intelligence (BI) platform at Microsoft. “My boss and I later laughed about the fact that we had no idea what SAP was,” recalls Thompson. He quickly recognized the power of SAP to build connections and facilitate an interconnected business. “It was a pleasure to help companies leverage w w w.busi ne ssc hief. com

LEADERSHIP

“ It was a pleasure to help companies leverage software and technology to change the way they did things, to drive true collaboration” — Sean Thompson, SVP, Business Network and Ecosystem SAP Ariba and SAP Fieldglass

software and technology to change the way they did things in order to drive true collaboration,” remembers Thompson, who wasted no time in telling his boss that he wanted to fully commit to working with SAP’s products, later going on to run Deloitte’s Northwest SAP practice. The years that followed saw Thompson work with multinational market leaders like Microsoft, as well as serving on the boards and executive teams of groundbreaking startup firms. Always passionate about the potential applications of new

technology, in 2012 he co-founded a natural user interface company called Nuiku with Barry Padgett, a longserving executive at Concur (bought by SAP in 2014 for $8.3bn). Thompson and Padgett quickly became friends and collaborated over the next few years on natural language interfaces for sales ERPs. “Think of it as Siri for Salesforce,” explains Thompson. The mass adoption of the smartphone and the introduction of automated natural language assistants into products like the iPhone signalled to Thompson a new cycle of technological adoption. “We started a company that was based J U LY 2 0 1 9

CLICK TO WATCH : ‘DELOITTE STREAMLINES ITS PROCUREMENT PROCESSES AS PART OF ITS DIGITAL TRANSFORMATION’ 37 on the concept of taking that paradigm

I got a call from my buddy Barry, who

to the enterprise. My experience

had just been appointed as president

installing SAP systems and being

of the SME business unit at SAP,”

at Microsoft was always that in the

recalls Thompson. “He said ‘there’s

enterprise, when we go to work,

nobody that I would want to go on this

the experience we have with the

adventure with more than you’.

applications we use at work is not

Thompson joined as CRO, and just over

nearly the delight that we have as

18 months later, the pair moved over to

a consumer,” he says. Padgett and

SAP Ariba. “That’s where the job came

Thompson built up Nuiku for five years

full circle. Procurement is near and

before selling the company, but their

dear to my heart, because it’s where

collaboration was fated to continue.

I originally fell in love, in terms of the

“In the spring of 2016 I, after the sale of Nuiku, I was thinking about what the next project was going to be when

concept of saving money to fund core systems implementation.” The move couldn’t have come at w w w.busi ne ssc hief. com

LEADERSHIP

a better time for Thompson, who sees SAP Ariba as at the forefront of two major trends in the business intelligence space: data and collaboration. “At Ariba, we think a lot about it. We have a treasure trove of data – $3trn in annual commerce that flows through us. The technology is available, the computing power is available, we have the data and now, all of a sudden, I think we are poised to provide businesses with insight into enterprise performance that is similar to the way Google provides insight into 38

search,” he enthuses. “It’s just a matter of good old-fashioned execution.” The power of the information revolution, Thompson believes, lies in its ability to further facilitate collaboration between enterprises and customers, enterprises and one another, buyers and suppliers – the entire ecosystem. “In the past, collaboration was point-to-point. Now, at Ariba, we’re approaching this as a network to achieve true business collaboration. We’re breaking down the silos and fostering more collaborative relationships, in terms of being able to have companies interact with each other, as if they were within J U LY 2 0 1 9

the same four walls – within the same firewall, if you will,” he explains. Thompson and Padgett have, over the past 18 months, changed the course of SAP Ariba, redirecting the business towards the promotion of the business ecosystem. “The Ariba you knew a year ago is very different to the Ariba of today,” he says. “We’ve changed our strategy and culture, helping everybody within the company understand that if we are open and embrace the third party ecosystem and the creative genius that can come from that, amazing things can happen.” One of the first steps that Ariba is pursuing in its campaign to unlock the power of the ecosystem is rebalancing the buyer-supplier relationship. “The buyer has become the hero, to a point where we’ve spent so much time building value for them that we’ve left the supplier on the side of the road with their suitcase wondering what their value is to the network,” admits Thompson. As such, improving value proposition for the supplier is a key element of Ariba’s strategy. Announced in April 2019, SAP Ariba’s new partnership with American Express will, among other things, work w w w.busi ne ssc hief. com

LEADERSHIP

to rebalance the buyer-supplier relationship throughout the procurement process. “In the corporate space, the single use account virtual card is a very compelling offering, which allows a buyer, through integration of Ariba and American Express’ systems to generate a single use account authentication or authorization key from the virtual card provider,” explains Thompson. “The buyer is able to leverage virtual card protection and efficiency. At the time of purchase order (PO), the buyer creates a PO, attaches 40

their virtual card, and the supplier pays using that.” Value is created for the supplier as they are paid at the time of order, rather than having to invoice

“ We’re breaking down the silos and fostering more collaborative relationships” — Sean Thompson, SVP, Business Network and Ecosystem SAP Ariba and SAP Fieldglass

the buyer, which saves time and reduces error. Thompson views the American Express partnership as a collaborative win that is enabled by, and will enable, further data based digital projects. “About half of our buyers are also American Express corporate card users,” he says. “On the supplier side, there’s also an opportunity for us to offer loans and financing to suppliers through our Amex partnership. The more we know

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C O M PA N Y B I O S

SAP Ariba is how companies connect to get business done. On the Ariba Network, buyers and suppliers from more than 3.8mn companies and 190 countries discover new opportunities.

American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com

about suppliers, the more the financial

play a unique role, if you will, in that

institutions like American Express

open ecosystem. Ultimately, it’s about

knows, we will be working with them

choice. Buyers will be able to choose

to offer financing opportunities for

the financial institution that they want to

suppliers outside of the normal

work with and, if we do it right at Ariba,

payment process.”

we’ll be able to shape the ecosystem

Going forward, Thompson is

around us for years to come.”

confident that SAP Ariba’s early embrace of the open ecosystem will see it in good stead. “We will have an open approach and the different relationships that we have will each w w w.busi ne ssc hief. com

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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TECHNOLOGY

HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR? Vivek Wikhe, Domain Expert of Retail and Supply Chain at LatentView Analytics, discusses the future of supply chain management and the impact of digital transformation WRITTEN BY

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VIVEK WIKHE

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TECHNOLOGY

ll over the world, supply chains are disrupted by the advance of technology and leaders must rethink their strategies.

Business Chief caught up with LatentViewâ&#x20AC;&#x2122;s Vivek Wikhe to find out how organisations can make the most of digital disruption to best serve the end consumer. Why must companies rethink their supply chain strategies in the age of digital transformation? There areÂ major cascading factors contributing to companies rethinking their supply chain strat46

egies in the age of digital transformation. First, the demand side has changed rapidly. Today, there are more channels and touchpoints than ever before, which all serve different needs along the customer journey. This has resulted in a migration away from the way that demand has traditionally been generated. Invariably, it is the ability to service and optimise these new channels that allows companies to differentiate and gain a competitive edge. Organisations are no longer sure of the costs and margins in each channel that touches consumers, and are still figuring out which channels they need to service and promote in the digital era. Ensuring profitable margins across channels requires a well thought out supply chain strategy according to a companyâ&#x20AC;&#x2122;s customer base and an J U LY 2 0 1 9

“ Ultimately,all organisations across industries must rethink their supply chain strategies as the digital era continues moving towards the diversification of channels” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

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TECHNOLOGY

optimised channel mix. Ultimately, all

a specific brand, which is easier to

organisations across industries must

predict based on demographics, (for

rethink their supply chain strategies as

example, purchasing Nike sneakers),

the digital era continues moving towards

they will typically begin their shopping

the diversification of channels.

journey by searching online for certain

Â What are some immediate steps that need to be taken in order for

attributes and features that they want (â&#x20AC;&#x153;stylish white sneakersâ&#x20AC;?). Organisations need to tune their

companies to maximise profitability

supply chains to reflect this shift. Instead

in their supply chains?

of serving a target market based on

Buying behavior is moving towards more

demographics, supply chains must take

nebulous attribute-based purchases.

into account a larger market brought

Instead of consumers focusing on

about by the digital era. Supply chains

J U LY 2 0 1 9

should evolve to fulfillment chains, which

supply and demand, supply chains need

can serve multiple channels profitably.

to get increasingly more agile and more

The first step to maximising profitability

in tune with short-term planning. Even

is to get a clear picture of order costs

traditional industries need to stay abreast

incurred in every channel. This is a com-

of quickly developing consumer trends

plex problem with multiple, co-depend-

and desires. For example, food and

ent factors. It gets complex because

groceries are a traditional and staple

the costs need to be predicted to ensure

category. However, today, there are

an enterprise has a profitable order

trends in food that pop up quickly, giving

fulfillment scenario. The analysis of the

traditional consumer buying behavior

cost structure and visibility to them is

a very short-term strength. Many cate-

the first step to maximise profitability

gories overall are moving towards the

for supply chains.

shorter-term life cycles, and enterprises need to move to reflect that as well,

What are the challenges that enterprises face as they move to digitise

and become leaner and more agile. Â

their supply chain, and what are

How does having better data strategy

a few best practices to overcome

create greater supply chain efficiency?

these challenges?

So much of demand is influenced by

The main challenge is that due to the

what consumers are seeing online - you

changing nature of modern consumer

essentially can predict what consumers

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TECHNOLOGY

are going to buy by having strong insights into data on what influences customer behavior. For example, a few years back, Amazon became famous for predicting demand. In fact, they were so good at it, that they were shipping goods before the customer even purchased them. All companies need to have a view of the latest technology for predicting customers purchasing behavior. As buying cycles continue to grow shorter, there is no longer time to procure and supply a product without advance 50

preparation. Ultimately, in order to not miss out on profitable opportunities, and to have a more focused organisation of the supply chain, a modernised data strategy that involves predictive analytics for both the supply and demand sides is necessary. A â&#x20AC;&#x2DC;betterâ&#x20AC;&#x2122; data strategy is one where enterprises have a single view of all data points and these are integrated to respond in sync with unit changes. An integrated data strategy helps move the fulfillment chain in three phases - increasing visibility thereby reducing variability and finally increasing velocity. All these three phases require a different yet integrated data strategy. J U LY 2 0 1 9

As enterprises continue through their digital transformation journeys, how are innovations in AI and predictive technologies specifically playing a role? Most enterprises on digital transformation journeys go through several stages, as they learn to apply machine learning and artificial intelligence. These stages are: descriptive, prescriptive, and predictive. In the first, you can only see what the data does, and it can help inform decisionmaking processes. In the second stage, you can employ an AI technology to gain prescriptive intelligence to solve specific problems or gain insight into definitive opportunities - for example, AI can identify demand per channel, or identify which models are the most profitable. In the third and final stage, you reach an exalted state of sorts wherein the ability to predict trends in the data becomes so accurate that itâ&#x20AC;&#x2122;s possible to preempt action around the insights. This final stage will lead to a much more focused and streamlined supply chain, and allow for comprehensive preemptive planning for all relevant supply and demand factors. w w w.busi ne ssc hief. com

TECHNOLOGY

Are there any particular industries

What do you see as the biggest

which have the best opportunity to

trends going forward related to

gain a competitive advantage by

emerging technology in AI and the

adopting this technology before the

supply chain?

rest of their peers?

Going forward, I see a number of ways

I can’t think of any industry that should

that emerging technology will continue

not be investing in emerging technology

to influence the supply chain. The next

solutions. In fact, it is no longer really

step in using data in the supply chain

a question of competitive edge, but

will be merging all sources of customer

rather of survival. If you’re not investing

data, including social media data. Down

in emerging technology and at least

the line, we’ll be looking at more IoT

exploring opportunities with AI, you’re

data. In coming years, we expect to see

making yourself vulnerable to other

the rise of the intelligent home assis-

companies in the field that may have

tant as the first point of understanding

higher efficiency and greater analytical

consumers and the supply side. Informa-

abilities (and thus a greater competitive

tion on demand signals will no longer

advantage) in their supply chain.

be coming directly from consumer

J U LY 2 0 1 9

“ The main challenge is that due to the changing nature of modern consumer supply and demand,supply chains need to get increasingly more agile and more in tune with short-term planning” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

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TECHNOLOGY

“ I can’t think of any industry that should not be investing in emerging technology solutions. In fact,it is no longer really a question of competitive edge, but rather of survival” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics 54

data, but rather personal assistants inside the home. On the logistical side, I expect we’ll also be seeing a greater ability to deal with smaller markets. Once analytics helps optimise supply chains to a greater degree, things such as home delivery models will become profitable, even for smaller markets and chains. The overwhelming trend will be intelligent assistants embedded in various enterprise chains interacting with each other to ensure regular chores are carried out without constant human intervention J U LY 2 0 1 9

Are there any recent projects LatentView Analytics has worked on related to supply chain analytics that you can discuss? Currently we’re working on several interesting projects. We’re helping some big name retailers understand how in an omni-channel environment they can understand their net cost for every consumer channel. There are certain aspects where it becomes not just a supply chain solution. Once you understand the optimal channel mix, you also have to take into account downstream promotion, and make the data actionable and profitable. We’re also doing some work in supply chain and predictive analytics. In the US market, over the past two years, there have been more occurrences of incorrect delivery windows, due to shortages of supply. This creates both a greater cost to the company, as well as operational inefficiency. We’re now looking at a predictive model that compiles and analyses data to help more accurately predict arrival times of packages for consumers.

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PEOPLE

n i T N A H P E L E e Th : m o o al r 56

t i g i d e th d e n n unpla e m i t n w do

Mark Homer, VP Global Customer Transformation, ServiceMax , discusses how businesses must improve asset management and servicing to reduce unplanned downtime pressure due to a growing reliance on automation and digital transformation

WRITTEN BY

J U LY 2 0 1 9

MARK HOMER

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PEOPLE

s industrial automation continues to digitize, one area in particular is becoming a critical area of concernâ&#x20AC;&#x201C;

unplanned downtime. The shift to outcomebased business models, equipment assets becoming more sophisticated and connected,

and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is now a strategic priority in the digital age. Take power as an example. In the US, generating units are unavailable on average for 15% of 58

the time due to outages and maintenance. In fact, 6% of the time they are unable to meet demand at all.Â And the Energy Information Administration highlights that a further 6% of electricity is lost in transmission and distribution due to both technical factors and outages. The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organizationâ&#x20AC;&#x2122;s digital maturity, and a core part of their transformation journey. J U LY 2 0 1 9

“ The growing reliance on automation is already widening performance gaps” — Mark Homer, VP Global Customer Transformation, ServiceMax

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PEOPLE

According to a recent Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organizations anywhere from $50k-$150k per hour for say, a medical device company, and up to $2m for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses

to be $260,000 an hour). The research also revealed high levels of asset estate ignorance across organizations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement. In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as J U LY 2 0 1 9

CLICK TO WATCH : â&#x20AC;&#x2DC;SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEWâ&#x20AC;&#x2122; 61 a possible impact of suffering a high-

industrial digital strategies. Key to this,

profile incident or disaster. Across all

is an understanding of and investment

sectors, around one in ten admitted

in field service management and asset

their company would never recover

performance management capabilities.

from such critical incidents and would

According to Vanson Bourne, eight

ultimately cease to exist. Nobody wants

in ten companies have already

to be blindsided with those sorts of

recognized this, at least that digital

numbers. But what are companies

tools can improve visibility of assets

doing about it?

and help eliminate unplanned down-

The research hints at a tipping point

time. Around 50% of companies

in recognition of the problem and

confirmed they plan to invest in field

planned investment to address it. Over

service and asset management

time, zero tolerance and zero unplanned

technologies in the next three years,

downtime will become the norm as

while 72% of firms claim that zero

companies develop and invest in their

unplanned downtime is now a number w w w. b u s in e s s c hie f. c o m

PEOPLE

one priority. So, the message is sinking in at least. The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predic62

tive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable

within the next two years and you have a recipe for transformation. We often hear the phrase, â&#x20AC;&#x2DC;you cannot

and digitally-empowered service tech-

account for human errorâ&#x20AC;&#x2122; but that seems

nicians to ensure the smooth running

illogical in todayâ&#x20AC;&#x2122;s connected world. We

of assets will go a long way to making

have the technology to not just account

this happen. A digital twin of physical

for human error but to eradicate it. The

assets will help considerably here, and

internet of things with the proliferation

the research has revealed that around

of affordable and reliable sensors is

54% of companies are planning

changing the way in which we can view,

to invest in a digital twin by 2020.

manage, service and support technol-

Throw-in the fact that field service

ogy, processes and any physical object.

is expected to become a primary

By mirroring a process, product or

revenue driver for most businesses

service into a virtual world, we can

J U LY 2 0 1 9

“ Digital transformations do not automatically improve control and visibility” — Mark Homer, VP Global Customer Transformation, ServiceMax

create environments in which machines

turbines. Easy access to this combination

can automatically analyse performance,

of deep knowledge and intelligence

warn of impending issues, identify

about your assets paves the road to

existing or potential errors and even

wider optimization and business

suggest part upgrades or changes to

transformation.

procedures to make them more efficient.

Digital twin technology spans across

This is the digital twin idea. As a con-

all industries where the value is in assets

cept, it’s been around for a while (NASA

and more generally complex systems.

used it on early space missions) but the

Its ability to deliver early warnings,

emergence of IoT has made it a com-

predictions, and optimization is fairly

mercial reality. Digital twin eliminates

universal. In time, I think we’ll see the

guesswork from determining the best

concept of a digital twin to be applied

course of action to service critical

to human beings as well, playing a sign-

physical assets, from engines to power

ificant role in healthcare. w w w. b u s in e s s c hie f. c o m

PEOPLE

“ Digital twin technology spans across all industries where the value is in assets and more generally complex systems” — Mark Homer, VP Global Customer Transformation, ServiceMax

However, just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions. What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance. The digital twin can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be J U LY 2 0 1 9

achieving now and its likely end of life date, when it would be predicted to be less efficient. This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading. Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance. It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas. Itâ&#x20AC;&#x2122;s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.

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S U S TA I N A B I L I T Y

Social impact: balancing profit and purpose Natasha Mudhar, Global CEO of Sterling Group and The World We Want, discusses why CSR should be a company-wide initiative rather than just ticking a box WRITTEN BY

J U LY 2 0 1 9

NATASHA MUDHAR

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S U S TA I N A B I L I T Y

hile most corporates and

CSR is a means for companies to

businesses have imple-

bring benefit to themselves and employ-

mented a social impact

ees whilst also benefiting society. While

strategy, many are typically incongru-

businesses are becoming increasingly

ent with the companyâ&#x20AC;&#x2122;s profitability

aware of the benefits of having such

and growth objectives, and are often

a strategy, they are still lacking in aware-

rendered obsolete. Effective social

ness as to how deep a social impact

impact strategies need to be ingrained

strategy needs to be embedded in

in the very fabric of a companyâ&#x20AC;&#x2122;s

a company and why it needs to be

corporate DNA, and not just a tick in

embraced in this way.

the box. Companies are still failing to

A global study by the SEFORIS project

grasp how having an effective social

(the worldâ&#x20AC;&#x2122;s largest study of social

impact strategy is key to long term

enterprises to date) has revealed how

growth and viability.

companies delivering inclusive growth

J U LY 2 0 1 9

by implementing a social impact strategy

purpose alongside each other. In order

are also seeing rapid growth in revenue.

for a company to truly thrive, it needs to

Effective social impact strategies are

be both profitable and purposeful

designed to improve a companyâ&#x20AC;&#x2122;s overall

simultaneously. An organization that is

mission, not just its brand identity. Not

both profit and purpose driven provides

to be confused with marketing or

mobility to its employees and resourc-

corporate philanthropy, social impact

es in a way that is incomparable. For

strategies provide a concrete plan that

a business to grow, purpose needs to

has quantifiable business outcomes

be embedded in its core. Companies

combined with a measurable and defin-

need to do well by doing good.

itive societal impact. It is no longer enough to be just profit

In order to address this, companies must fully understand how their employ-

driven. What makes companies stand

ees can be one of their biggest assets

out is their ability to place profit and

to expand their social impact footprint. w w w. b u s in e s s c hie f. c o m

S U S TA I N A B I L I T Y

“ CSR is a means for companies to bring benefit to themselves and employees whilst also benefiting society” — Natasha Mudhar, CEO, Stirling Group and The World We Want

Exhibiting a strong social impact strategy not only enhances trust among the public and makes the company attractive to prospective employees but also results in a more engaged workforce, geared to generate not only revenue, but valuable channels for marketing and public relationships. The people of a business provide the most genuine representation of a company’s brand and value, organizations need to remember this when considering social impact.

J U LY 2 0 1 9

Employees are much more engaged

and are not measurable against an

and satisfied when given the opportu-

embedded, well-implemented social

nity to perform impactful work. This will

impact strategy, focusing on the day-

result in a stronger feeling of fulfilment

to-day contributions towards community

and purpose amongst employees and

engagement as opposed to the occa-

essentially enhance a positive impact

sional donation or charitable event.

in the workplace. Studies have shown

Scaling up social impact needs to be

how corporate social responsibility has

a multi-sector process. Effective cross-

been highlighted as one of the key most

sector collaboration will enable new

important drivers of employee engage-

techniques and approaches to be

ment, and engaged employees are

deployed to achieve better social

effective workers and drive results.

outcomes. The combination of public,

Weak outreach efforts to the community should no longer be acceptable

private and social sector collaboration can address complex social challenges

E XE CU T I VE PRO FI LE

Natasha Mudhar Natasha Mudhar is an international communicator and director working on some of the most socially relevant global campaigns. She is also Global CEO of Sterling Media, the multi-disciplinary, international business consultancy with a robust communications backbone, established in 1995. Representing SMEs, FTSE 100 companies including billion-dollar hedge funds, as well as disruptors, innovators and high-profile celebrities, Mudharâ&#x20AC;&#x2122;s insight and global understanding in the realm of business, brand development, market growth and entry strategies has assisted major players in aligning their vision with their business strategies.

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S U S TA I N A B I L I T Y

“ Weak outreach efforts to the community should no longer be acceptable” — Natasha Mudhar, CEO, Stirling Group and The World We Want

by pulling resources from various players to ensure the improvement of effectiveness and efficiency of the services companies can offer to the public through joint efforts. Too often public, private and social sectors are segregated and siloed, with their resources fragmented, they need to work together towards common goals and enable mutually desired social outcomes. Who does the responsibility lie with? It is up to the company’s leadership to ensure that social impact is at the top J U LY 2 0 1 9

of the business agenda. They must ensure that an effective strategy is embedded into the companyâ&#x20AC;&#x2122;s day-today workings, prioritizing long-term value in a way that mutually benefits both employees and society at large. CEOs must outline clear objectives and purpose of the company beyond financial touchpoints, defining their values. It is important that these guiding values permeate every decision-making process, from environmental footprint to social impact to investment decisions. Businesses must consider social impact as a company wide initiative and not just a tick in the box. Otherwise, they risk losing the trust of the public which can be extremely damaging in the long term. In this age of heightened transparency and increased accountability, companies cannot afford to leave this issue unaddressed. The consequences in doing so can be profound.

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CITY FOCUS

Business Chief investigates the third-largest city in the Lone Star State and looks at three startups working to change the lives of its citizens for the better

DALL City Focus

J U LY 2 0 1 9

LLAS WRITTEN BY

HARRY MENEAR

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CITY FOCUS | D CA H LI CLAAGSO

bustling metropolis in north Texas with over 1.3mn inhabitants, Dallas is the thirdlargest city in the state. The city has a rich

and vibrant history: the original home of the global convenience store chain 7-Eleven, an airport larger than the island of Manhattan, and iconic football team the Dallas Cowboys (the teawm that popularized the modern conception of the cheerleader). Originally an agricultural and American Indian trading hub, Dallas soon evolved into one of the worldâ&#x20AC;&#x2122;s largest inland cotton trading cities in the early 20th 76

century. In subsequent decades, the discovery of crude oil reserves in the surrounding area turned it into a budding boom town and quickly the center of the nationâ&#x20AC;&#x2122;s oil market. Manufacturing infrastructure tied to the production of cotton-picking equipment and oil drilling led to the city emerging from World War Two as a leading communications, engineering and production town. The communications revolution, and more recently Industry 4.0, has continued to play a large part in Dallasâ&#x20AC;&#x2122; economy to this day. Fortune 500 companies Texas Instruments, AT&T, Exxon Mobil and Jacobs Engineering are among the many technology and industrial leaders that call the city and its surrounding area home. J U LY 2 0 1 9

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CITY FOCUS | DALLAS

Continuing the successful tradition of communications, technology and industrial commerce, while also acting for the benefit of its citizens, is Dallas’ vibrant startup scene. We examine three socially conscious Dallas tech companies harnessing the power of the digital age to improve the lives of American citizens.

J U LY 2 0 1 9

“We’re teleporting them from their four walls of existence into an unbelievable, fantastic environment” — Chris Brickler, MyndVR

CLICK TO WATCH : ‘XMYNDVR: SMILES ON FACES’ 79

MYNDVR

for assisted living seniors. “We’re

Founded in 2016 by Chris Brickler and

teleporting them from their four walls

Shawn Wiora, MyndVR is headquar-

of existence into an unbelievable,

tered at the northernmost end of Dallas.

fantastic environment,” Brickler told

Brickler, who served as an executive

D Magazine. “They get to hear and see

with Verizon, British Telecom and AT&T

it, so they resonate with it in a way

over the course of his career, has

that’s so powerful and heartwarming.”

worked alongside Wiora to create a

One of the company’s VR experiences

virtual reality (VR) application targeted

involved using a live band and actors

at the assisted living demographic.

in 1950’s costume to simulate a Frank

According to an article by D Maga-

Sinatra concert.

zine, the MyndVR uses 360-degree

Brickler believes that the Dallas

cameras to capture and bring to life

startup’s solution can and should be

comforting and engaging experiences

easily applied across the country, and w w w.busi ne ssc hief. com

CITY FOCUS | DALLAS

80 has the power to effect positive change

spectrum disorder community to

in the lives of people suffering from

create its flagship product, Milo.

Alzheimers, Dementia or simply the

With life-like facial features and

isolation of old age.

unwavering patience, Milo uses repetition-based techniques to deliver a

ROBOKIND

learning experience to autistic children

Founded eight years ago and head-

that is reportedly almost 80% more

quartered in the city’s Main Street

effective than traditional therapy.

District, RoboKind specializes in lever-

RoboKind launched Milo in 2016.

aging advanced social robotics in

The other main element of

order to support autism therapies and

RoboKind’s product offering helps

provide instruction to students study-

to address the future STEM leaders

ing STEM. With the goal of creating

growing up in the city. “Dallas’ work-

cost-effective, inclusive education,

force of the near future demands

RoboKind has worked with the autism

different skills than its workforce has

J U LY 2 0 1 9

today. STEM skills, such as coding and programming, will become more important as the tech industry continues to grow,” writes Jeff Goodman, RoboKind’s manager of sales and operations. Continuing to pursue its mission to provide inclusive and effective education, the RoboKind team created Robots4STEM, a simple drag and drop programming language designed to give children an early introduction to computer science. Children use the language to enter commands into Jett,

“Dallas’ workforce of the near future demands different skills than its workforce has today. STEM skills, such as coding and programming, will become more important as the tech industry continues to grow” — Jeff Goodman, Manager of Sales and Operations, RoboKind

a humanoid robot.

CLICK TO WATCH : ‘ROBOTS4STEM: OVERVIEW’

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CITY FOCUS | DALLAS

TRACK15 Situated on the southwestern side of Dallas, Track15 is a startup looking to change the way people change the world. Co-founded in 2017 by Andrew Snow and Chris Schultz, the company provides back end business development consultancy services to nonprofit organizations. “The lack of business acumen that nonprofits have—that’s what brought us together,” Snow said

J U LY 2 0 1 9

“We believe the relationship between the donor and the mission are what’s important for a sustainable nonprofit model” — Andrew Snow, Co-Founder, Track15

in an interview with D Magazine. “We

Track15 currently counts nonprofits

believe the relationship between the

like Mercury One, the Farm to Con-

donor and the mission are what’s impor-

sumer Legal Defense Fund, the Prison

tant for a sustainable nonprofit model.”

Entrepreneurship Program and the Dal-

Through close collaborative part-

las Film Festival among its clients. The

nerships and consulting services,

company’s roadmap sees it seeking out

Track15 helps its clients streamline

larger clients and expanding beyond the

their organizations and create more

Dallas city limits, driven by the idea that:

value for the people they work to

“We want to listen to your story, bond to

help. “We take them from zero to 60

your uniqueness and commit to provid-

very quickly,” added Snow.

ing you with exactly what you need.”

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T O P 10

J U LY 2 0 1 9

TOP 10

Manufacturers in the US Business Chief counts down the top 10 manufacturers in the US, according to Forbes’ Global 2000 ranking of the world’s largest public companies WRITTEN BY

WILLIAM SMITH

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T O P 10

PepsiCo

Forbes list 86

PepsiCo traces its history back to 1898, when Caleb Bradham first formulated Pepsi-Cola for sale in his North Carolina pharmacy. Today, the company is responsible for the production of its eponymous cola as well as beverage brands such as Mountain Dew and Gatorade, and food brands like Lay’s and Doritos. 86th on Forbes’ list, the company’s revenue reached $65bn, with profits totalling some $12.6bn in 2018.

J U LY 2 0 1 9

DowDuPont Forbes list 81

Formed from the 2017 merger of American stalwart chemical companies Dow Chemical and DuPont, DowDuPont is the world’s largest manufacturer of chemicals. Historically, the two companies have pioneered innovative materials such as nylon, in DuPont’s case, and styrofoam in Dow Chemical’s. With its 2018 revenue at $86bn and profits of $3.8bn, it came 81st on Forbes’ list.

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T O P 10

United Technologies Forbes list 78

Multinational conglomerate United Technologies is active across a range of manufacturing areas, from aircraft engines to air conditioners. Originally a pure aircraft manufacturer, its diversification was reflected in its 1974 name change away from United Aircraft. They placed 78th, with revenue totalling $66.5bn and profits reaching $5.3bn. Subsidiaries include the Otis Elevator Company, HVAC specialist Carrier and Collins Aerospace.

J U LY 2 0 1 9

â&#x20AC;&#x153;We need to make the world more how we want to see it.â&#x20AC;? - Scott Saunders, CEO & Founder, Happy Money

Happy Money & Alliant Credit Union proudly celebrate 2 years of partnership, changing the way people think about and use money.

T O P 10

Cisco Systems Forbes list 74

A manufacturer of networking and telecommunications hardware, Cisco is the youngest company on this list, having been founded in 1984. It counts among its clients service providers, small to medium businesses, and enterprise customers such as corporations, government agencies, utilities and educational institutions. A pioneer of networking technology, the company states that 85% of Internet traffic travel across its systems. It was 74th on Forbesâ&#x20AC;&#x2122; list, with revenue of $50.8bn and profits totalling $12.9bn.

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General Motors Forbes list 56

The largest American automotive manufacturer, General Motors came in at 56th on Forbesâ&#x20AC;&#x2122; list. Responsible for iconic US brands such as Buick, Chevrolet and Cadillac, the company is headquartered in Americaâ&#x20AC;&#x2122;s Motor City, Detroit, along with its rivals Ford and Chrysler. Possessing by far the largest revenue of companies on this list at $147bn, they made profits of $8.1bn in 2018. The company has achieved something of a rebirth under the leadership of CEO Mary Barra, after its bankruptcy in 2009.

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T O P 10

Pfizer

Forbes list 54

Pharmaceuticals giant Pfizer is based in New York City, and oversees the development and production of medicines and vaccines. Some of their better known drugs include Atorvastatin and Viagra. With a revenue of $53.6bn and profits of $11.2bn, the company ranked 54th worldwide. Founded in 1849, in late 2018 the company announced it was merging its consumer healthcare division with that of British pharmaceuticals company GlaxoSmithKline.

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T O P 10

Procter & Gamble Forbes list 53

Consumer goods manufacturer Procter & Gamble specializes in a broad range of products for the home. From personal care to cleaning products, its brands include detergents like Tide and Odor eliminators like Febreze. The company was founded back in 1837 in Cincinnati, where it is still headquartered. It made it to 53rd on Forbesâ&#x20AC;&#x2122; list. In 2018, their revenue and profits reached $66.9bn.

J U LY 2 0 1 9

Boeing

Forbes list 49

The Boeing Company is the United Statesâ&#x20AC;&#x2122; largest player in the aerospace industry. A defense contractor as well as a civilian manufacturer, the companyâ&#x20AC;&#x2122;s designs range from aircraft to satellites. Founded in Seattle in 1916 and named after its founder, William Boeing, the company is now based in Chicago, Illinois. According to their figures, they employ more than 153,000 people across 65 countries. They placed in 49th position, with profits of $10.5bn from a revenue of $101.1bn.

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T O P 10

Intel

Forbes list 44

Silicon Valley’s Intel is well known for its manufacture of semiconductors, and the company’s processors can be found in most personal computers, alongside those

of their rival AMD. Unlike AMD, the company fabricates its own designs rather than outsourcing to semiconductor foundries, and also fabricates designs for others. Founded in 1968, the company’s co-founder Gordon Moore is well known as the author of Moore’s law regarding the doubling of transistors on a microchip every two years. It was ranked in 44th place, with revenue of $70.8bn and profits of $21.1bn.

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T O P 10

Johnson & Johnson Forbes list 37

Founded in 1886 in New Brunswick, New Jersey, Johnson & Johnson is a multinational pharmaceuticals and medical devices producer. They are also known for

their consumer products such as Neutrogena and the Johnsonâ&#x20AC;&#x2122;s baby brand. 37th on Forbesâ&#x20AC;&#x2122; global list, their revenue reached $81.6bn in 2018, with profits totalling $14.7bn. The company remains headquartered in the city of its founding, and describes itself as employing more than 130,000 people across the globe.

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LOGO HERE

100

Inside the digital transformation of Americaâ&#x20AC;&#x2122;s oldest family-owned drug store brand WRITTEN BY

HARRY MENEAR PRODUCED BY

CRAIG DANIELS

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101

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BARTELL DRUGS

Kari Escobedo, SVP, IT at Bartell Drugs, shares her business insights and plans for the digital transformation of America’s oldest familyowned pharmacy brand

igital transformation is change, and in the world of the enterprise, change is unrelenting. From a single location

purchased by 21-year-old pharmacist George H Bartell Sr in 1890, Bartell Drugs has become the 102

United States’ oldest family-owned drugstore chain – an iconic brand in the Pacific Northwest. Achieving constancy and longevity through a great depression, a great recession, two world wars and myriad upheavals that mark almost 130 years of history, the brand is an American success story. Walking the line between the traditional and the futuristic, while always delivering the highest quality of service to its customers, Bartell’s is making strides towards a bold digital future. “We want to bring Bartell’s into the modern digital world and ensure that its brand and products will still be here serving our communities a hundred years from now,” says Kari Escobedo, Senior Vice President (SVP) of IT at Bartell’s. Escobedo, along with new CEO Kathi Lentzsch and other Sr Executives are J U LY 2 0 1 9

103

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BARTELL DRUGS

working to build teams to shape Bartell’s digital transformation strategy. This approach will carry the company into the fourth industrial revolution and, hopefully, into the 22nd century. Prior to joining the company in July 2018, Escobedo spent over a decade working for some of the Pacific Northwest’s largest, most game-changing companies. From years of growing up in a military household to experiences at Starbucks, Microsoft, T-Mobile, and Kaiser Permanente of WA, she shares how the transformation values of continually driving innovation,

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promoting community and diversity, and

“ We want to bring Bartell’s into the modern world and ensure that its brand and products will still be here in another hundred years” — Kari Escobedo, IT, Bartell Drugs

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championing adaptability are informing Bartell’s digital transformation. “I grew up in the Marine Corps, moving around every couple of years. I’ve lived all over the country and parts of the world – that’s what you do as a military child,” recalls Escobedo. “Every two to three years, we would pick up and move to another state. My siblings and I got dropped into a whole new school on a regular basis.” Escobedo credits her frequent relocations into new cities, cultures and social dynamics at an early age for a trait she has found invaluable

CLICK TO WATCH : ‘#BETTERWITHBARTELLS: DID YOU KNOW?’ 105 throughout her career: adaptability.

into its business model for a long time;

“I got very good at finding my way

each of the brand’s 68 locations is

and finding things about myself that

uniquely tailored to its neighborhood

integrate well into new situations,”

and customer base. “Our stores fit into

she explains. In her career, she quickly

their neighborhoods architecturally,

found: “You get really good at reading

but also about 30% of the products we

the organization, the culture, seeing

stock are local to the Pacific Northwest,”

opportunities and being able to stand

Escobedo explains. “There are some

back and say: ‘Where do I fit in this

stores that are partnered with the Post

picture? Where I can use what I do best

Office, because that’s something their

to help the company?’ One thing that

neighborhoods were lacking when they

I lean on a lot is my adaptability coming

opened.” Other stores have everything

into new organizations.”

from growler stations and espresso

Adapting to different environments is a skill that Bartell’s has integrated

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workers on lunch breaks. “The makeup of the product selection is focused on what customers need versus only what we want to sell them,” she says. “It differentiates us from some of our big box competitors.” Bartell’s also adapts its instore experience so all feel welcome. “There was a conscious decision made to have shorter fixtures in all stores. With a lower profile, our stores feel

“ I got very good at finding my way, and finding things about myself that integrate well into new situations” — Kari Escobedo, IT, Bartell Drugs

E XE CU T I VE PRO FI LE

Kari Escobedo, SVP, IT Kari Escobedo is a business executive with 20+ years of leadership experience serving global F500 companies in technology, healthcare, telecoms, and retail. She is a change leader specializing in company technology transformations, including digital experience, product dev, and M&A. Kari joined Bartell Drugs in mid-2018 to help positively impact the company thru technology. Prior to Bartell Drugs, Kari joined Kaiser Permanente 2015 leading the Ent & Digital Services areas that include UX/CX, Digital & Mobile for KPWA. Formerly VP, Ent Sys Dev for T-Mobile, Kari led the technology team responsible for the development and delivery of solutions for the Customer Retail & Enterprise Systems that supported the T-Mobile business transformation. Before joining T-Mobile, Kari was the Director of Information Management and CISO for Starbucks as well as teams that supported ERP, Employee Portal systems. Before Starbucks, Kari held leadership positions at Microsoft, running it’s Enterprise Systems teams.

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BARTELL DRUGS

1890

108

Year founded

1,700

Approximate number of employees

Seattle, Washington

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BARTELL DRUGS

more open. You can see across the store and find people; it’s more inviting.” A feeling of welcome and personalized experience is key to the way Bartell’s does business. Escobedo’s priority is to harness the power of digital transformation to provide the company with more ways to reach its customers, while honoring the traditional heritage established by the Bartell family. “In Seattle, we have a pretty tech-savvy customer base, but we also have a customer base that really appreciates and demands personalization,” she 110

explains. “They need to know you and you need to know them as a customer. That’s just part of the relationship-driven environment that we have in the Northwest. It’s what Bartell’s is known for.” Escobedo’s leadership style is uniquely suited for Bartell’s transformation. “I love to come in and build sustainable change,” she enthuses, recalling her time at telecom giant T-Mobile and Starbucks. Escobedo constantly asks herself: “How do we keep driving innovation? You can find possibilities everywhere. You don’t have to be introducing new products that nobody’s seen before, but you need to be innovating for your customers.” J U LY 2 0 1 9

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CLICK TO WATCH : ‘#LOVINGLOCAL: JOE CHOCOLATES’ 113 In terms of e-commerce, Bartell’s has

On the pharmacy side, Escobedo and

taken a very customer centric ap-

Bartell’s are working in conjunction

proach, working in conjunction with

with Californian start-up, NimbleRx,

Amazon Prime Now and several other

to provide delivery services for pre-

well-known last-mile shopping delivery

scriptions and commonly purchased

services on same day delivery of

OTC products. “It allows us to really

non-pharmacy items. “We’re channel

fulfil a strategy built around making it

agnostic right now,” she explains.

super easy for customers to buy things

“Whichever company you buy our

from Bartell’s when and where they

products through, the strategy we’ve

want them,” she explains.

put together is focused on giving our

While many things are changing

customer’s choice and the opportunity

around them, Escobedo’s team relies

to get our products in the easiest way

on her ability to build excitement and to

for them – we want to be where they

lead by example. “My job is to help my

shop versus making them come to us.”

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J U LY 2 0 1 9

– because if they are successful, then

and vendors that will champion for

we all win,” she says. “It is critical to be

Bartell’s and their goals.

transparent and to clearly define

Escobedo is embracing technologi-

expectations for myself and my teams.

cal wins of every size. She uses small

I hold them accountable and they hold

changes like augmenting legacy

me accountable. With that comes

point-of-sale systems with user-friend-

mutual trust and a comfortability that

ly mobile-driven solutions to promote a

fits well in our organization,” said

culture that is accepting of and

Escobedo. This isn’t limited to the

enthusiastic about more radical

teams she leads. With vast knowledge

transformations. “Many of our employ-

and relationships in the technology

ees have been at Bartell’s for a long

world, and the experts in that space,

time and they love this company. That

Escobedo chooses the right partners

means, as we move to adopt and leverage some of these technologies,

“ Customers need to know you and you need to know them. That’s just part of the relationship-driven environment that we have in the Northwest, and it’s what Bartell’s is known for” — Kari Escobedo, IT, Bartell Drugs w w w.busi ne ssc hief. com

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BARTELL DRUGS

Bartell – Supporting local brands

Joe Chocolate Co. specializes in crafting delicious, handmade chocolate, infused with locallyroasted coffee from Lighthouse Roasters. Our functional chocolate gives you the energy you need from ingredients you love. 116

Nuun Hydration was founded in 2004 by cyclists and triathletes, who decided to trade in sugary sports drinks and powders and create a light, refreshing, portable hydration solution. Nuun has a variety of hydration products to fit every hydration need, whether you’re running a marathon or a marathon of errands!

Pacifica Beauty: Pacifica’s products are vegan and

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cruelty-free with an everpresent mindset to reduce its impact on the environment.

Liberty Orchards: Aplets & Cotlets. The blossom-fresh f lavor of crisp Washington apples, the tangy goodness of ripe apricots, and the nutty richness of crunchy English walnuts have made Aplets and Cotlets the Pacific Northwest’s most-beloved candy since 1920!

An iconic brand in the Seattlearea for more than 30 years, Talking Rain is a Washingtonbased beverage company situated in the foothills of the Cascade Mountains. Talking Rain’s sustainable growth is attributed to the company’s ability to stay true to their

vision and heritage, while continually improving and innovating their products.

Wet Noses Dog Treats provide truly natural dog treats and food without a negative impact on the environment. They offer choices to pet parents that they can feel good about through our conscientious and food safety forward formulation, sourcing and production processes. They serve all their customers by exceeding their expectations by always putting them first.

The history of MarketSpice can be traced back to a small tea and spice shop established in Seattle’s historic Pike Place Market in 1911. Over the years, we have offered our customers

a large assortment of bulk teas and spices. MarketSpice is proud of its 100 f lavorful years of history and continues to share the belief that “spice is the variety of life”.

Stickers Northwest: Premium quality PNW related stickers, shirts and magnets for you to show off your love for the Northwest.

Strideline Socks. The most comfortable sock on earth. Strideline’s mission is to provide athletes and polished individuals with distinctly colored, performance oriented crew socks that inspire a feeling of confidence and swagger unparalleled by any other sock company in the world.

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BARTELL DRUGS

118

“ It’s interesting to be able to really change and move where our customers expect us to be, but then still embrace and celebrate the long history and deep roots of Bartell’s” — Kari Escobedo, IT, Bartell Drugs

J U LY 2 0 1 9

there’s a significant change management component we have to take into consideration,” Escobedo explains. “AI and machine learning. Those are big, scary words for many traditional retailers.” Currently, she is pursuing several proof-of-concept tests of predictive analytics and automation, which she hopes will help to demystify the functionality and experience of incorporating leading-edge technology for Bartell’s team. Looking forward, Escobedo relishes the chance to continue balancing

119

transformation and tradition. “It’s

customers.” For the first 129 years

interesting to be able to really change

of its existence, Bartell Drugs was

and move where our customers expect

shaped by a world that went from

us to be, but still embrace and celebrate

steam to the moon to the internet.

the long history and deep roots of

The next 129 years of Bartell Drugs’

Bartell’s,” she says. “We’ve had some

history will be shaped by the initiatives

great accomplishments over the last

that Escobedo and her team pursue

six months. I’m super excited about the

over the next few years.

shift in thinking and the ideas that are coming from my technology team. Through the rest of this year, we are building a great foundation to continue to launch a more enhanced and personalized digital experience for our w w w.busi ne ssc hief. com

Your Safety...Our Commitment

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WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

ANDY TURNER

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H E AT H C O N S U LTA N T S

As the company focuses on digitally transforming its operations,Heath Consultants prioritizes sustainability across its functions

stablished 86 years ago, Heath Consultants is now run by the third generation of the Heath family. The business is the premier

leader in the natural gas leak detection industry, servicing utility companies “all the way from the 122

well head to the burner tip”, explains Paul Wehnert, Senior Vice President of the Sales and Marketing unit. “Primarily, we’re a leak detection, underground utility locating service, and products manufacturing firm,” adds Wehnert. The company employs around 1,500 people across 44 states in the US, but has earned an international presence through the distribution of its products. A main aspect of the company’s operations is conducting leak surveys. “A leak survey primarily consists of a person walking around documenting on paper where they went and what they found. However, the industry is currently going through a transition from paper documentation to digital documentation,” remarks Jeff Tuttle, CEO of Heath Consultants. “The way in which we conduct these surveys is now all in J U LY 2 0 1 9

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H E AT H C O N S U LTA N T S

“ The industry is currently going through a transition from paper documentation to digital documentation” — Jeff Tuttle, CEO, Heath Consultants

transition – whether the person is walking or driving by vehicle, the instrument readings, position of the person and detections are all recorded.” Heath is also expanding its technological footprint with the launch of its DP-IR Trainer, software that uses augmented reality to train workers how to conduct leak surveys. Beyond how the information is acquired and stored, the company is also expanding its analytics capabilities through a partnership with software development company Silicus. Heath is now able to evaluate

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J U LY 2 0 1 9

CLICK TO WATCH : ‘HEATH 2018 WORLD GAS CONFERENCE PRODUCT SHOWCASE’ 125 the leak information, such as methane

technology that is connected to the

readings and pipe quality. “We can ask:

internet, such as data logging, GPS

‘Where are the risky sections of pipe?

and the cloud. “We still have portable

Where are they located?’ We can then

platforms, but connected portable

provide a thesis or data source to that,”

platforms. We have mobile platforms

continues Tuttle.

where we have vehicles that drive

The company has leveraged its core

around a city network, and we have

gas detection technology and con-

aerial platforms like drones and UAVs,”

nected it with a cloud analytics

says Tuttle. The CEO highlights the

package. This enables oil producers to

introduction of connected methane

then conduct Leak Detection and

sensors placed amongst city grids,

Repair (LDAR) work, which often takes

available on a 24/7 basis.

places in remote areas. The industry is

However, the role of analytics has

shifting from using portable technolo-

a much greater presence in the

gies that an individual would carry to

company’s overall business strategy. w w w.busi ne ssc hief. com

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“ It’s also important from a digital transformation perspective to collect data on the performance of our technicians” — Ken Cowher, Vice President of Operations for the Service unit, Heath Consultants

“For us on the operations side, it’s also important from a digital transformation perspective to collect data on the performance of our technicians,” notes Ken Cowher, Vice President of Operations for Heath’s Service unit. “It is important we have a standardized and automated way of doing that to ensure we get good quality data we can run predictive analytics on. This allows us to proactively manage our crews and make them as efficient as possible.” Cowher explains that all service operations lie within a competitive bid industry, which in turn means that efficiency is key.

E XE CU T I VE PRO FI LE

Jeffrey Tuttle, CEO Jeffrey Tuttle has worked in various capacities within the utilities sector for over 30 years. Prior to joining Heath he served as General Manager for Greer Commission of Public Works where he directed the company’s day-to-day operations and long-term direction of all utility operations.

He has served on various association’s Board of Directors including Piedmont Municipal Power Agency (PMPA), American Public Gas Association (APGA), Blue Ridge Scouting Council, and Greer Relief. From 2011 to 2012, he served as the Chairman of American Public Gas Association (APGA) and Texas Gas Association.

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H E AT H C O N S U LTA N T S

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J U LY 2 0 1 9

The company uses Microsoft’s Azure cloud to host many of its systems, including RMLD-Remote Emissions Monitoring. Heath is piloting the sensor-based technology that enables it to monitor for leaks 24/7. The firm is almost ready to introduce its Leak Survey Analytic, also based in Azure, which harbors the data from thousands of surveys. “Every detail over time is captured and made available at a click so we can analyze the quality of the survey, the completeness of the survey and provide some of the risk factors that feed into some of these pipeline risk models,” Tuttle comments. Heath has also partnered with Novara Geosolutions, the asset management products and services company. “We’re working with them to develop a field application for our leak survey technicians to use. It will integrate with customer facility mapping and track breadcrumb indications of the leak surveyor and the path that they take over the pipeline. It will include indications that we find, abnormal operating conditions – anything that would be a reportable situation from the survey – and feed that information back to the customer whilst connecting with our w w w.busi ne ssc hief. com

129

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billing system,” explains Tuttle.

1933

As well as addressing technology transformation within its operations,

Year founded

Heath Consultants is also becoming very aware of sustainability issues in its industry. “The industry is really going through a major transition with emission reduction – it grew up doing the surveys from a safety standpoint, assessing the potential hazards of gas

1,500

Approximate number of employees

leaks in homes and buildings. Heath grew up with the paramount mission to find the dangerous leaks, help utilities and mitigate them by repairing the pipe.

Houston, Texas

Now with the concerns over climate

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E XE CU T I VE PRO FI LE

Ken Cowher, Vice President, Operations Ken Cowher joined Heath in 1992 as a Field Technician with a degree in Earth Sciences from Clarion University of Pennsylvania. Ken managed the Northeast Division for Heath for nearly twenty years and created a successful corporate culture that other regions in the company strive to imitate. After promotion in 2017 to Vice President of Process Improvement and Service Business Unit Support, Ken’s clear understanding of Heath’s values, corporate mission and excellent leadership skills made him the clear choice for another promotion to his current position. Ken is responsible for all aspects of our field service division including safety, training & development,

quality assurance and field operations.

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H E AT H C O N S U LTA N T S

132

“ The industry is really going through a major transition with emission reduction” — Jeff Tuttle, CEO, Heath Consultants J U LY 2 0 1 9

change, methane is one of the gasses that is of most concern – this gas can leak from any point along the chain. We’re trying to reduce that,” says Tuttle. Working from the well pad up, the company goes through various processes in moving and producing the gas which emits the most greenhouse gases. “The well head, the well and the tank battery which the oil is stored in are all prone to emitting the

133

gasses that come along with the oil.

exploring a lot of that with vehicles and

There’s quite a bit of focus, activity and

UAVs, with autonomy providing safety

research on gas detection and we are

inspections of these safety grids within

participating in that emerging technol-

these smart cities,” says Paul.

ogy,” Tuttle says. With Heath focusing on its digital transformation journey, the firm sees itself at the centre of a digital future. “Our company’s operations will us more

Your Safety...Our Commitment

fix sensor technologies and more autonomous type activities. We’ll be w w w.busi ne ssc hief. com

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TRANSFORMING SUPPLY CHAIN STRATEGIES AT GEODIS WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

JUSTIN BRAND

J U LY 2 0 1 9

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GEODIS

Phillipe Mahler, Chief Procurement Officer of GEODIS, discusses how his company is utilising technology amidst a digital transformation

s businesses across the globe are impacted by digital transformation, companies in a diverse range of industries are tasked

with undergoing a technological change in order to accelerate processes. Phillipe Mahler, Chief Procurement Officer (CPO) of freight transportation and logistics firm GEODIS, understands the importance 136

of embracing technology in a bid to ease operations. Since first joining GEODIS in January 2010 as High-Tech Key Accounts Director, Mahler worked in a variety of different roles, such as Corporate Market Director and Transformation Director, before moving into his current position as CPO in early 2013. Split into five different lines of business, GEODIS’ operations include Freight Forwarding, Distribution and Express, Road Transport, Contract Logistics and Supply Chain Optimisation (SCO) which manages its customers’ supply chain by offering end-to-end solutions, enabled by the company’s processes, systems, infrastructure and personnel. Heading up the operations and procurement division, Mahler recognises the value of utilising his experience in supply chain to help him succeed in his current role. “My previous experience has allowed me to better J U LY 2 0 1 9

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GEODIS

“ Our mission is to solve and assemble resources,capabilities and technologies, and to better design the supply chain on behalf of our customers” — Phillipe Mahler CPO, GEODIS

understand the key drivers of the supply chain. After you’ve dealt with several customers and experienced different situations, you can take the time to innovate and begin to understand where the key areas are. I manage these key points very carefully because they’re either the points which are going to create difficulties in operations or the points which you can leverage to create value,” he says. “Our mission is to solve and assemble resources, capabilities and technologies, and to better design the supply chain on behalf of our

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CLICK TO WATCH : ‘GEODIS – WE LOGISTIC YOUR GROWTH’ 139 customers. We buy services, resources

happen in the next six months to two

and technologies from the market and

years. Forecasting is taking the data

from our sister lines of business or from

from the past and then leveraging all

any other logistics service provider. We

the data announcing the trends and

assemble these solutions to create an

looking at how the world will change,”

end to end network for our customers.”

he explains. “I believe one of the biggest

With the procurement function trans-

challenges is transitioning from human

forming on an ongoing basis, Mahler

negotiation into a business which

reflects how GEODIS is changing the

scientifically predicts where you should

way it conducts its business to coincide

go. It’s a huge challenge; it’s the leverag-

with the latest industry trends. “On an

ing of Big Data.”

increasing basis, procurement is becoming more of a science that is

INTRODUCING TECHNOLOGY

based on data. It’s based on being

With technology enabling GEODIS to

capable of forecasting what’s going to

make its processes simpler, Mahler

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LEARN MORE For more information: info@commercialrelocationnetwork.org 253 525 5174 Corporate Contact: Melissa Schwab, COO Office: 877 460 5880 e-mail: melissa@aminc.org

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reflects on how the procurement

scenario which helps decide where

process has been transformed by

you want to go and how you want to

digitalisation. “In the past, procurement

execute the processes.”

was a question of understanding where

With innovation considered a key

the data was and then deciding at what

priority at GEODIS, Mahler understands

price it could be bought from the market.

the importance of ensuring technology

It’s always been a question of simula-

is adopted for a specific purpose that

tion and has all been done manually using

will benefit the company’s operations

Excel,” he says. “These days, we’re

– and is not merely implemented for its

able to capture much more data because

own sake. “When we want to utilise

it’s all in one place and technology has

new technology, the first thing I always

allowed us to use machines that help

do is to have a discussion with a group

us make decisions. Using the machine,

of key users of the current platform

you can do a ‘what if’ in a machine

and we conduct an evaluation. We have w w w.busi ne ssc hief. com

GEODIS

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“On an increasing basis, procurement is becoming more of a science that is based on data. It’s based on being capable of forecasting what’s going to happen in the next six months to two years” — Phillipe Mahler, CPO, GEODIS

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GEODIS

“ When you adapt, you’re already a follower.We don’t want to be followers; we want to be the leaders” — Phillipe Mahler, CPO, GEODIS

144

to ask ourselves what we can do with

results, we’ll then make a decision whe-

this current machine and how we can

ther we want to adopt this technology.”

implement new technology that will

GEODIS has been recognised as

enhance what we already have,” explains

a ‘Leader’ by information technology

Mahler. “We have to establish an

research and advisory firm Gartner in

immediate need and ask ourselves that

its May 2018 Magic Quadrant for Third-

if we use this technology, will it bring us

Party Logistics (3PL) worldwide, which

value today, tomorrow or in the future?

evaluates third-party logistics providers’

It’s important to think about where we

ability to be a preferred global provider.

want to be in two years’ time and

With the company conducting business

understand how what we’re doing now

in the US, India and Haiti, technology has

will fit into that. When you have an

enabled each individual team to commu-

immediate value, you have future

nicate immediately and has allowed daily

potential value and, based on these two

operations to be sped up significantly.

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FORMING KEY PARTNERSHIPS

Some are very local, while some are

In order to achieve mutual success,

global and are capable of carrying

GEODIS has formed over 500 global

goods from Singapore to Mexico. We

partnerships. In particular, the firm has

really have all sizes of partnership.”

established a key relationship with the

The importance of establishing sign-

Commercial Relocation Network (CRN).

ificant relationships with other compa-

“Our collaboration with CRN has granted

nies to achieve mutual success is

us access to specialists everywhere in

therefore considered a top priority at

the US. Be it in California, Arkansas,

GEODIS. “Due to the way we operate

Seattle, New York or Miami, we have

our procurement activity, we’ve started

access to people who really know our

to move away from the customer/supplier

business and know what our specifics

relationship. We don’t think ‘I’m your

are – it’s very valuable to us,” says Mahler.

customer so you go and execute.’ Or ’I’m

“In general, we have lots of partners.

your supplier so you pay or I don’t w w w.busi ne ssc hief. com

GEODIS

execute’. Those days are gone,” he says. “Before beginning a partnership, it’s important to trust each other. You need to accept some level of transparency on the cost and what’s possible, as well as deciding what can and can’t be optimised. Once you’re there, you’re in a relationship which is completely different from a typical, traditional customer relationship because you’re together in the same boat, facing the same challenges and are both trying to create value for each company, as well as seeking 146

the best result for the final customer.”

FUTURE PLANS Looking to the future, Mahler is aiming to ensure GEODIS continues to lead the way and set trends in order to stay ahead of the competition. “We’re passionate about our business, have proven experience and possess a truly global presence. I believe those three things are what make us different from our rivals. It’s vital to have the best people working for us and investing in people is something we rank very highly at our company. We’re always on the lookout for new talent, as well as retaining what we already have through J U LY 2 0 1 9

147

providing our staff with the opportunity to progress, change position or relocate to another part of the world. Innovation, technology and the people are considered our three key pillars,” he says. “At SCO we benchmark our solutions, approach and IT tools, and consistently look at the external world to understand what’s coming. Adapting is a word from the past. When you adapt, you’re already a follower. We don’t want to be followers; we want to be the leaders.”

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Future proof digital transformation security for the enterprise WRITTEN BY

HARRY MENEAR PRODUCED BY

JAKE MEGEARY

J U LY 2 0 1 9

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CANADIAN WESTERN BANK

150

Cory Gould, the first CISO at Canadian Western Bank FInancial Group, discusses using cutting-edge technology, relationship building and user awareness to combat cyberthreats and help realize the companyâ&#x20AC;&#x2122;s bold vision

he world is evolving. The proliferation of digital devices, mass migration to the cloud,

and a rising tide of data is changing the nature of the enterprise. In few verticals is this truer than the banking and finance sector. Bank vaults piled high with paper money are being replaced by digital vaults, in-person meetings at a local branch are giving way to 24/7 mobile banking solutions, and major banking houses are facing serious competition from a new generation

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of digital-only ‘challenger banks’. Digital

“We appreciate that this is the new

transformation means new opportuni-

world; things are changing and they’re

ties, greater efficiency and insight into

changing very, very quickly,” says

the business ecosystem, but every

Cory Gould, Chief Information Security

paradigm shift brings new challenges.

Officer (CISO) at Canadian Western

According to the Ninth Annual Cost

Bank (CWB) Financial Group. “20 years

of Cybercrime Study, released in

ago, we were concerned with things

March 2019 by Accenture, the methods,

like debit skimming - manual, tactical

targets and impact of cyber attacks

ways of committing fraud. Now, the

is evolving at an accelerated pace.

proliferation of digitization and the

In 2018, the report found, the average

sheer accessibility of financial services

cost of cybercrime to companies rose

remotely and somewhat anonymously

by 12% year on year to US$13mn.

is certainly driving the rise of cybercrime. w w w.busi ne ssc hief. com

CANADIAN WESTERN BANK

We’ve seen a significant rise in the

started at CWB Financial Group in 1997,

levels of organization, structure and

and became the first CISO in the

sophistication of these threats.”

bank’s history in December 2018.

One of the youngest banks in

“The financial industry has been fairly

Canada, CWB Financial Group is

static for a century. Over the last 15

headquartered in Edmonton, Alberta

years, however, we’ve seen a real shift

and positions itself as the top choice

in the demands of our clients. Traditional

for Canadian enterprises in search

banking isn’t fitting the bill anymore,”

of expert advice delivered through

he explains.” We sat down with him to

a relationship-based approach. “Our

explore the approach Gould is taking

size provides us with a level of agility

towards neutralizing cyber threats to

that is allowing us to respond to change

CWB Financial Group as it continues

in the industry,” says Gould, who

to grow at an industry-leading rate

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CLICK TO WATCH : ‘CWB – OBSESSED WITH YOUR SUCCESS’ 153 (recently surpassing the $30bn total asset milestone for the first time) alongside the global digital banking revolution. “We’re on the cusp of something really special,” enthuses Gould. “Increasingly, we’re being recognized for the value that we bring to our clients.” As the first CISO in CWB’s history, Gould is part of a bold and innovative shift in the bank’s own culture. A crucial success factor, he explains, is establishing an enterprise architecture in which security methodology is embedded at the initial stage.

“ We’ve seen a significant rise in the levels of organization, structure and sophistication of these threats” — Cory Gould, CISO, Canadian Western Bank

“It’s a really big win and, I think, critical w w w.busi ne ssc hief. com

CANADIAN WESTERN BANK

156 for an organization as they move forward,” says Gould, admitting that

proactive with respect to security.” This closer, more collaborative

CWB Financial Group had experienced

relationship with the enterprise and

challenges maintaining strong relation-

technology side of CWB Financial

ships between security and leadership

Group is also driving a shift in the

before, “because we didn’t have a senior

philosophy of the security side of

dedicated role for information security.

the business. The traditional role of

It’s 2019. Nobody is going to deny the

a security division as a deterrent,

need for security, but it’s very easy for

Gould explains, simply isn’t the best

security to take a backseat in the wake

way forward in the modern world.

of rapid change. Now, we have a senior

“Gone are the days when security just

security leader out in the organization,

pounds its fist on the desk and says

pounding the pavement and building

‘No! Come back later.’ That’s not

relationships with key decision makers,

practical in the digital world we live in.”

positioning us to be much more

The rapid advancement of technology

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is at the center of CWB’s progress, and Gould’s mantra of “enable not deter” reflects it. Technology, he contends, may be creating both business and cybercriminal opportunity, but it is also enabling and empowering security. Stronger relationships between the security and business elements of CWB Financial Group is at the core of this. “Our ability to sit at the table with the business, talk through their needs and challenges, and offer up technology solutions we know are inherently secure, brings to them functionality

E XE CU T I VE PRO FI LE

Cory Gould Chief Information Security Officer Cory Gould is the Chief Information Security Officer at CWB Financial Group, a diversified organization providing specialized business and retail financial services across Canada. Mr. Gould has over 20 years experience in Information Technology and Security primarily within the Financial industry and as the first CISO at CWB Financial Group, is working to mature the Information Security practice by embedding sound security awareness and behaviours within the culture of the organization.

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CANADIAN WESTERN BANK

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“ Our size provides us with a level of agility that is allowing us to respond to change in the industry” — Cory Gould, CISO, Canadian Western Bank

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161

and capability they’ve never had

machine learning. “One of the key

before,” Gould explains.

things to enable is machine learning.

Rapid and ongoing digital transfor-

We are absolutely neck deep in data

mation has become the day to day

and analytics like everyone else on

reality for any enterprise seeking to

the planet. The more dependent we,

stay abreast of the information

as an organization, become on our data

revolution. Gould recognizes the power

and knowledge, the more it becomes

of employing technology to automate

currency. So, we’re using it within our

day to day operations in an institution,

information security program to gain

as well as process data to generate the

intel and understanding,” Gould explains.

kind of insights that lead to high-level

In addition to boosting the detection

decisioning. The key to both applica-

and insight gathering capabilities of

tions is artificial intelligence (AI) and

CWB’s security department, AI and ML w w w.busi ne ssc hief. com

CANADIAN WESTERN BANK

is set to play a key role in automation. “Like any other position in IT, there are the necessary evils of day-to-day operational activities,” Gould notes. “With those ongoing, almost mundane tasks that we have to perform, there is the risk of human error. Any time that you can remove that day-to-day work that just needs to be done from very capable resources and have them focus on the big picture, it’s valuable.” Striving for a near-perfect security architecture is no mean feat, and Gould recognizes that CWB Financial Group 162

cannot stand against the rising tide of cybercrime alone. “We rely on strong partners who have a genuine interest in our success; FireEye is one of those partners. FireEye sees the world of Cyber Security through the eyes of active threat actors. It is this relevant, real world experience that is assisting CWB Financial Group in meeting our Cyber Security objectives,” he explains. Every year, driven by experience, artificial intelligence and increasingly sophisticated software, cybersecurity solutions reach closer and closer to infallibility. “With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot J U LY 2 0 1 9

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CANADIAN WESTERN BANK

“ With the inception of AI, ML and all of the things that we’re able to do with technology today, there’s a lot that can be prevented” — Cory Gould, CISO, Canadian Western Bank

164

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that can be prevented.” However, as technology grows more sophisticated, the most common vulnerability for an organization grows more obvious: the human element. According to Accenture’s report, “Whether by accident or intent, many employees are often the root cause of successful cyberattacks.” While security systems and protocols can be updated and tweaked on a daily basis, Gould points out: “You can’t patch humans. Humans are vulnerable, passionate and intellectual; they don’t

think in terms of bits and bytes and

We spend a lot of time with the organi-

ones and zeros, so people make

zation educating, bringing about greater

mistakes and we recognize that.” In

awareness. We know that we will never

order to shore up this potential weak

be 100% in that area but will continue

point, Gould is turning to the flagship

working with the business and our

skill in his arsenal: relationship building

internal clients to keep security at the

and management. “It wasn’t until one of

forefront of the way CWB Financial

our more recent and most significant

Group operates.”

initiatives that we really recognized how

The threat of cybercrime is only

important change management is,” he

expected to rise, and the constant arms

recalls. “Now, one of the most critical

race of technology, training and

tools in our security toolkit is our User

relationship building shows no signs

Awareness Program.

of slowing down. Looking to the future, 165

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CANADIAN WESTERN BANK

166

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Gould has the responsibility of ensuring that CWB Financial Group remains agile and responsive, even as it continues to scale. With phishing and ransomware replacing cheque fraud and men with guns in balaclavas, Gould and his team are on the front line, protecting CWB Financial Group as it strives towards greatness. Reflecting on over 20 years at the bank, Gould looks ahead filled with confidence and optimism. “As an organization, we pride ourselves on listening intently and asking the right questions to provide our clients with the right financial solutions. We are obsessed with our clients’ success and our proactive approach to supporting them, and we are obsessed with ensuring that the information they entrust us with remains confidential and secured,” he says. “It’s a bold vision but I think it’s achievable. I’ve spent my career here and I can honestly say that when this group of great individuals puts its mind to something, there’s little that gets in the way.”

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VALUES DRIVING CASHCO FINANCIALâ&#x20AC;&#x2122;S DIGITAL TRANSFORMATION

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HARRY MENEAR PRODUCED BY

JAKE MEGEARY

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CASHCO FINANCIAL

Raymond Wilson, COO of Cashco Financial, discusses the company’s five core values and how they are driving the digital transformation of its customer journey

oday, more than 30% of Canadians are living from paycheque to paycheque. The number of people in debt is rising too,

with the Bank of Canada reporting in May 2018 that the average Canadian typically owes around 170

CA$1.70 for every dollar they own. Canadians are not just struggling financially: according to a report by NBC, financial pressure and consequential stress can both directly and indirectly affect mental and physical health. Millions of underbanked Canadians are in need of banking and money management services, of short-term loans to make it to the next paycheque, and of long-term services to nurture and support their aspirations. The idea of Cashco has been rooted in a number of businesses founded by the company’s CEO, Tim Latimer. Cashco Financial as it exists today has been around for a decade delivering alternative financial services to the citizens of British Columbia, Alberta, Saskatchewan and Ontario, both through brick and mortar and online – providing over 140,000 clients with long and short-term personal J U LY 2 0 1 9

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CASHCO FINANCIAL

172

“ We work hard to make sure these are living, breathing values embodied throughout the organization” — Raymond Wilson, COO, Cashco Financial J U LY 2 0 1 9

loans, cheque cashing and, as of 2017 in Alberta, banking services. “Over the course of our history our business model has continued to evolve, at a time we were focused solely on providing access to payday loans, then added and evolved to installment products, and now we’re focused on bringing banking services to our clients. There isn’t a one size fits all solution to our clients banking needs so we work to offer banking-like products that can offer support to

CLICK TO WATCH : ‘CASHCO MOM’S REALITY’ 173

people that can’t get help anywhere

clothe the both of us,” he recalls.

else,” says Raymond Wilson, Chief

“I really feel passionate about the

Operating Officer (COO) at Cashco.

subprime loans market because I can

Wilson, who has served in his current

connect with the customers. There

role for three years, is able to bring

were plenty of days growing up when

a powerful sense of empathy to the

there was nothing in the fridge. I know

company’s relationship with the numer-

where they’re coming from.”

ous underserved families and individu-

Cashco serves its clients by working

als across the country. “I grew up in a

tirelessly to embody its five core

single parent home; my mother raised

values: Respect the vision, Embrace

myself and my brother, and there were

Can I, Live the Golden Rule, Own the

many times I could see the stress on

Results and Communicate Honestly.

her face as she was trying to feed and

The core values set the expectations w w w.busi ne ssc hief. com

CASHCO FINANCIAL

174 for staff on how Cashco employees

commitment to them. “At the time, it was

behave and treat each other. “We work

transformational for our business, today

hard to make sure these are living,

it means we can make better decisions

breathing values embodied throughout

on affordability and support our clients

the organization,” says Wilson. “The

need in order to help them maintain a

organization moves quickly, and we

positive relationship with their money.”

have a big job to do. If we don’t have

That technology now needs to be

clear expectations of ourselves and

monitored and adjusted continuously

the people around us, it’s very hard

to ensure that, first, clients keep moving

to do what we do every day.”

along their credit journey, and second,

Over the last 5 years Cashco

that Cashco builds a sustainable

introduced a decision engine that takes

business that can be around for many

all the data feed into it and works to

years serving the underserved and

make better predictions on client’s

underbanked. This technology is heavily

likelihood of honoring their financial

based on artificial intelligence/machine

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learning that speeds up the delivery

he says. The company’s efforts range

and removes friction from the client’s

from simple steps, like attaching an

journey with Cashco.

employee’s picture to an email to

One of the largest challenges that

humanize the interaction for the client,

Wilson recognizes is the preservation

to the construction of an entirely new

of the empathetic, personal experience

portal to allow for easy access to

as Cashco increases its digital offerings.

account information and Cashco’s new

“We know we can be successful when

banking services. Rather than cold

the client sits down at the desk and we

functionality that widens the distance

have a conversation. But, as we move

between Cashco and its customers,

into a more digital age, we need to start

Wilson sees the “exponential growth

looking at other ways to create those

of technological applications” as an

touchpoints and still maintain that

enabler for increasingly personalised

relationship while the client benefits

and empathetic services. “We’re

from the accessibility of digital products,”

utilizing technology to make our

E XE CU T I VE PRO FI LE

Raymond Wilson Raymond Wilson has been with Cashco Financial for 10 years where he started as a VP managing the branch network. In 2016 he was promoted to Chief Operating Officer and now oversees all operations. He has worked in this market for almost thirty years and is very passionate about what Cashco stands for and the people they serve. Wilson has four beautiful children and has been married to his wife Leslie for 13 years. He is also an avid golfer and enjoys the outdoors with his family.

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CASHCO FINANCIAL

176

140,000 Clients served

2009

Year founded

Edmonton, Alberta Canada

J U LY 2 0 1 9

customer journey as painless as possible,” he explains. In particular, Cashco is employing analytics and artificial intelligence (AI) to both empower the front end of its business and augment its back-end decision making. “We use AI for our loan decisioning, which we’re constantly tuning to make more efficient, and twinning with our analytics to create a higher loan completion and closing rate,” says Wilson. Cashco has also made the decision to build its AI in-house. “Our CEO has the entrepreneurial spirit,” Wilson explains. “With that comes quick change; this way we don’t have to wait to make alterations the way we would if you bought something off the shelf. We acknowledge that there’s a cost to doing things in-house, but it allows us to be much more agile.” AI also plays a critical role in Cashco’s latest project: applying decision making to the loan recovery process. “We’re working with another company to bring AI into our recovery and collections department,” says Wilson. “If clients are unable to make a payment, there’s a reason for that. AI can help us understand not only how to best communicate with people, but how w w w.busi ne ssc hief. com

177

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CLICK TO WATCH : ‘CHRISTINA’S REAL WORLD STORY’ 179

to help them ensure they can complete their loans with us.” To maintain relevancy Cashco has recently mapped out the strategic direction for the next three years, identifying the necessary business decisions in order to compete in their space – knowing the space continues to grow and demand is increasing. “A digital Cashco is imperative, and we have it centered around the idea of digital client-care services,” says Wilson. “Overall, our digital ecosystem

“ Respect the Vision, Embrace Change, Live the Golden Rule, Own the Results and Communicate Honestly” — Raymond Wilson, COO, Cashco Financial

is focused on leveraging our data, and w w w.busi ne ssc hief. com

CASHCO FINANCIAL

CLICK TO WATCH : ‘ELISIA’S REAL WORLD STORY’ 180

advanced analytics platforms are built together so decision making is driven by the business, and AI/machine learning will be the driving factor is producing sound recommendations to guide the process.” The entire enterprise is designed to accommodate and exceed the needs and expectations of the underserved. Cashco provides relief today by making it easy to get an immediate loan regardless of current or past credit history. The company accepts its J U LY 2 0 1 9

“ We’re utilizing technology to make our customers’ journey as painless as possible” — Raymond Wilson, COO, Cashco Financial

181

clients, wherever they are on their

resilient business with a loan book of

journey. Due to the multiple solutions it

$250mn by 2021, serving underbanked

offers, Cashco is the only finance

Canadians with subprime loans, and

company that can help move clients

continue to offer meaningful banking

through the entire credit continuum to

delivered through advice-based,

achieve a better credit rating and

intimate, one-to-one relationships.”

create hope for tomorrow. Looking to the future, Cashco Financial has bold ambitions. “Our big, hairy, audacious goal is to be recognized as a new, different kind of bank by 2025,” Wilson concludes. “We’re going to build a forward-looking w w w.busi ne ssc hief. com

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Enabling technology transformation to the J U LY 2 0 1 9

cloud

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WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

JAKE MEGEARY

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INGRAM MICRO

As the technology industry evolves, Ingram Micro continues to enable digital transformation with the cloud

ngram Micro is an emergent leader in the global technology sector; dedicated to enabling its customers and its entire

organization to achieve technological transformation. “Technology underpins our organization and the pressure is on to get it right. To achieve a 184

competitive advantage, companies must align with the evolving landscape. Ingram Micro is well poised to meet the demands of this evolution,” says Greg Onoprijenko, Director of Cloud for the company’s Canada operations. “We’re continuously innovating to maintain relevancy for our customers and our entire organization.” As the world’s largest technology distributor, the company provides a wide array of products to its customers including laptops, smartphones, printers and IT infrastructure and services to its wide variety of customers, reaching from retail to telecommunications to value-added resellers (VARs). In Canada, Onoprijenko heads the company’s fastest-growing division: Cloud. “As customers transform their businesses and start to adopt more cloud services, their dependence on the IT channel for guidance J U LY 2 0 1 9

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“ Technology is extremely important to us, and there’s a lot of pressure to get it right” — Greg Onoprijenko, Director of Cloud Canada Ingram Micro

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CLICK TO WATCH : ‘INGRAM MICRO CLOUD OVERVIEW’ 187 has become increasingly critical to

backup and recovery, and communica-

their success,” he says. “This increase

tions and collaboration services.

in demand has resulted in revenue

The third unit is the Infrastructure-as-a-

growth as we develop more solutions

Service (IaaS) team. “The IaaS team is

in the portfolio and add a larger staff to

completely focused on data centre

support the demand. We’re fortunate

transformation and public cloud

to be leading an extremely profitable

infrastructure. The solutions we sell

and fast-growing business.”

within that portfolio include Microsoft

The company’s Cloud operations

Azure, Amazon Web Services, and

are divided into three business units.

IBM Cloud,” explains Onoprijenko.

The first is the Microsoft team, which

“One of the competitive advantages

primarily focuses on Office 365 and

we have in the Cloud division is just the

the associated licensing models. The

sheer breadth and depth of the team.

second unit addresses Software-as-a-

We have over 1,500 dedicated cloud

Service (SaaS), such as cloud security,

employees globally, with extensive w w w.busi ne ssc hief. com

INGRAM MICRO

188

industry experience. For our custom-

another clear differentiator that

ers and channel partners who need

separates it from its competitors.

guidance and advice, we have the

Ingram Micro offers a fully automated

industry’s best team to lean on,”

platform that enables cloud services

comments Onoprijenko. As Ingram

transactions with centralized dash-

Micro transforms its business model,

boards, reporting and support.

change management across the

“The platform covers any need that

company has its challenges. To

a partner may have when delivering

effectively combat these challenges,

cloud services,” he continues.

Ingram Micro’s Cloud team is continu-

“As channel partners become mature

ously providing education to ensure

and more successful in the cloud, they

that “the entire company is aligned

recognize that automation is critical to

with the cloud strategy.”

scale their businesses and that they

The company’s platform strategy is J U LY 2 0 1 9

need to have their eCommerce platform

to transact cloud services. Our global cloud service offerings make us a logical option for these companies.â&#x20AC;? As customers within the technology sector shift towards an as-a-service model, Ingram Micro is adapting its strategy. â&#x20AC;&#x153;Instead of customers buying and owning IT products, the evolution is towards everything-as-a-monthlyfee. That puts pressure on the IT channel partners to evolve and change to meet customer demands. It also puts pressure on IT distributors to change how they deliver solutions to the market. Finally, the onus is on the

E XE CU T I VE PRO FI LE

Greg Onoprijenko, Director, Cloud Canada Greg Onoprijenko is Director of Cloud for Ingram Micro Canada. He provides overall strategy, guidance and leadership for Ingram Microâ&#x20AC;&#x2122;s cloud services business unit. He assumes all responsibilities of the cloud business in the Canadian market which includes sales, marketing, vendor management, and new strategic alliances.

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189

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vendors, who are ultimately creating these products and services to evolve,â&#x20AC;? reveals Onoprijenko. To embrace the change in demand for both hardware and software products, Ingram Micro is increasingly introducing new service options, with Onoprijenko claiming they are leading the industry. Onoprijenko cites traditional software licensing as an example, with customers purchasing the licenses and associated maintenance to own and manage. With the current evolution underway, firms are moving away from owning these licenses, instead opting J U LY 2 0 1 9

for a pay-as-you-go alternative to access the software, which typically resides in the cloud. “It’s an evolution. A lot of the channel partners recognize this and are proactively transforming their companies. While some companies recognize the need to change, and that they need help with it, others are unresponsive to change and risk getting left behind.” With the experience of the Cloud team, Ingram Micro can offer its partners guidance and knowledge through seminars, educational opportunities and one-on-one

“ We recently moved the entire company to Microsoft Office 365 instead of hosting the solution ourselves” — Greg Onoprijenko, Director of Cloud Canada Ingram Micro 191

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INGRAM MICRO

coaching, differentiating the firm from its competitors. “We can surround our clients with resources which can guide them along and motivate them to change proactively,” he adds. As well as enabling its customers to advance their operations, Ingram Micro is working towards the same goal of innovating its functions internally. “We’re changing our business model and evolving to the cloud. We previously had large data centres with IT infrastructure that serviced the 192

entire company. As an example, we recently moved the entire company to Microsoft Office 365 instead of hosting the solutions ourselves. We also standardized the entire company on Microsoft Dynamics CRM, versus hosting our own.” With cloud adoption increasing at such a rapid rate, one of the company’s biggest challenges is to compete with other businesses taking advantage of the advancement. “Everybody understands the opportunity and is pursuing it. Ingram Micro envisioned this opportunity before our competitors and started delivering cloud services about 12 years ago. We certainly J U LY 2 0 1 9

$50bn Approximate revenue

1979

Year founded

33,000

Approximate number of employees

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INGRAM MICRO

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“ Everybody understands the opportunity and is pursuing it. Ingram Micro saw this opportunity before our competitors”

invested early,” Onoprijenko says. Within such a competitive industry, the company has the advantage of its hardworking team with its breadth of knowledge, as well as its years of experience in the sector. As the firm continues to grow, the cloud will be a foundational part of its strategy.

— Greg Onoprijenko, Director of Cloud Canada Ingram Micro w w w.busi ne ssc hief. com

LOGO HERE

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CRAIG KILLINGBACK

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UNIVERSITY OF TORONTO MISSISSAUGA

AHMED AZHARI, DIRECTOR OF UTILITIES, SUSTAINABILITY & GROUNDS AT UNIVERSITY OF TORONTO MISSISSAUGA, DISCUSSES HOW HIS ORGANIZATION IS DEVELOPING TOWARD A MORE SUSTAINABLE FUTURE

roviding one of the largest further education facilities in Canada, the University of Toronto Mississauga (UTM) holds the

reputation of a leading organization in the country. The university is accelerating its prestige with significant growth over the past few years through 198

the development of new facilities, and is home to over 25 buildings with more on the horizon. With sustainability recognized as a top priority at UTM, from both an environmental perspective and as a boost to its reputation as a sustainable organization, the university has formed key plans to meet the challenge head-on. Tasked with enabling the university to achieve a more sustainable future, Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM, believes student engagement is key to realizing this important ambition. “Staff and student engagement is incredibly important because sustainability isn’t just one person’s job,” he affirms. “It’s our job collectively as the UTM community to ensure everything we do reduces the impact on the environment and help mitigate climate change. J U LY 2 0 1 9

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UNIVERSITY OF TORONTO MISSISSAUGA

“ STAFF AND STUDENT ENGAGEMENT IS INCREDIBLY IMPORTANT BECAUSE SUSTAINABILITY ISN’T JUST ONE PERSON’S JOB” 200

— Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM

J U LY 2 0 1 9

We’ve conducted lots of student engagement activities to educate both students and faculty members, ensuring they are aware as to how they can use the buildings in a more efficient manner.” The university has installed energy dashboards into a number of the key buildings on campus to equip students and staff members with the knowledge to understand how much energy the building is using on a real-time basis. To accelerate this project, the university has established a ‘Grow Smart, Grow Green’ strategy which focuses on key topic areas such as green

buildings, natural areas, transportation,

“We’re trying to create an educational

water management, energy manage-

campaign in the community to

ment, waste and recycling. “As part

encourage our students and staff

of this scheme, we’ve introduced a ban

to recycle things properly,” remarks

on bottled water,” explains Azhari.

Azhari. “It’s a big engagement project

“Bottled water isn’t available to buy

that will help standardize all the waste

anywhere on campus and we’ve

bins we have on campus, as well as

replaced the single-use plastic with

producing new recycling schemes and

water fountains that allow those on

educating the faculty and community

campus to refill their bottles instead of

on how to dispose of waste properly.”

purchasing new ones. This is key to our sustainability strategy moving forward.” Operating with a clear goal in mind,

With many buildings across campus recognized with a silver standard minimum in Leadership in Energy and

the university is engaging with students

Environmental Design (LEED), the

to develop waste and recycling plans.

university’s buildings – which are made

CLICK TO WATCH : ‘SUSTAINABLEUOFT’

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UNIVERSITY OF TORONTO MISSISSAUGA

202 from recycled and regional materials – include features such as green cleaning programs, low-flow fixtures, energy efficient mechanical and electrical systems, low-emitting materials and green roofs. “The construction policy that we have in place is that any new buildings must meet our requirements of being a minimum of LEED silver,” says Azhari. “However, we can’t stop there; we’re always looking to achieve more.” UTM’s HMALC (Hazel McCallion Academic Learning Centre), instructional building, Deerfield Hall and innovation complex all meet this requirement, as well as the J U LY 2 0 1 9

“ IT’S OUR JOB COLLECTIVELY AS THE UTM COMMUNITY TO ENSURE EVERYTHING WE DO REDUCES THE IMPACT ON THE ENVIRONMENT AND HELP MITIGATE CLIMATE CHANGE” — Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM

minimum target of the upcoming

campus,” notes Azhari. “It’s targeted

North Building. In addition, the Health

to be a minimum LEED silver that will

Sciences Complex and David building

incorporate two major renewable

third floor renovation have both

energy systems; geothermal system

achieved LEED gold status, while the

for building heating and cooling as well

new science building is also anticipat-

as a solar photovoltaic system to offset

ed to achieve this goal. “I have heavily

some of the building electrical require-

participated in the design of the New

ments. We will ensure that it utilizes other

Science building at UTM, which is set

sustainability measures that qualify it to

to house of the majority of the wet and

be certified above the minimum target

dry lab research that takes place on

under the LEED program.”

E XE CU T I VE PRO FI LE

Ahmed Azhari Ahmed Azhari has a diverse range of primary skills such as Sustainable Design, Facilities Management and Energy Management. Professionally, Ahmed manages the design of progressive disciplinary building systems; oversees the installation, operation and monitoring for the safe, comfortable, and environmentally friendly operations of modern buildings. He has delivered designs that play a significant role on the sustainability and energy demand of buildings while utilizing renewable energy, sustainability, low carbon technologies, LEED strategies, and energy management techniques. Ahmed is currently registered with Professional Engineers Ontario as a Professional Engineer (P.Eng.), with Canada Green Building Council as a Leadership in Energy and Environmental Design Accredited Professional (LEED AP), and with Association of Energy Engineers as Certified Energy Manager (CEM).

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UNIVERSITY OF TORONTO MISSISSAUGA

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â&#x20AC;&#x201D; Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM w w w.busi ne ssc hief. com

collaborative partner for a sustainable future. EXP has the right blend of expertise and experience to understand, innovate, partner, and deliver.

letâ&#x20AC;&#x2122;s explore the possibilities.

exp com

207 The university formed a key partnership with EXP, through a competitive public procurement process, to help with the design retrofit for two projects on campus; the Recreational Athletics and Wellness Centre (RAWC) and the Kaneff Centre. “EXP designed the system and helped us put the tender out for public pricing. They currently help us on the construction administration and the project management to help successfully deliver,” he says. “The RAWC is an athletics building, it has a swimming pool and a sauna, with significant heating demand

“ MY VISION FROM A SUSTAINABILITY PERSPECTIVE IS TO DESIGN AND ENABLE ALL FUTURE BUILDINGS TO BECOME CARBON NEUTRAL” — Ahmed Azhari, Director of Utilities, Sustainability & Grounds at UTM w w w.busi ne ssc hief. com

UNIVERSITY OF TORONTO MISSISSAUGA

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requirements. We realized a solar hot water system would be an ideal installation in a building like this to help offset some of the building heating demand and fulfil our commitments to utilizing renewable energy sources in efforts to reduce greenhouse gas emissions.” Looking to the future, Azhari has a clear vision of how UTM can continue the promising start it has made. “We haven’t finished – we’re always looking to grow. We’ve signed up for the University Climate Change Coalition Challenge (UC3 Challenge), which aims to reduce our greenhouse gas emissions by 37% by 2030, against a 1990 baseline. My vision from a sustainability perspective is to design and enable all future buildings to become Carbon Neutral in order to help remediate our environmental impact and help mitigate climate change.”

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How technology and people have inspired sustainability and climate action in Ontario WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

CRAIG KILLINGBACK

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TOWN OF CALEDON

Katelyn McFadyen, Manager of Energy and Environment for the Town of Caledon, discusses the push for sustainability through the use of technology and empowering the people behind climate action

aledon, located in southern Ontario and an hour’s drive from Toronto, is a shining example of the positive impact that can

be generated through sustainability initiatives at 212

the municipal level. Katelyn McFadyen, Manager of Energy and Environment at the Town of Caledon, and Cristina Guido, the Energy and Environment Specialist in McFadyen’s team, are enthusiastic and passionate about the impactful initiatives being enacted across the municipality. “I think it’s safe to say that, no matter the size of the municipality, you’re still able to be creative when addressing climate change,” says McFadyen. “The Energy and Environment division is responsible for providing corporate and community stakeholders with guidance and tools for addressing climate change, energy management and sustainable operations practices,” says McFadyen. “We do a lot of research and facilitation to build corporate and community capacity, so that projects that address climate change can be implemented collaboratively and effectively.” J U LY 2 0 1 9

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“ Energy consumption in buildings is our number one contributor to corporate GHG emissions” — Katelyn McFadyen, Manager of Energy and Environment w w w.busi ne ssc hief. com

TOWN OF CALEDON

214

“ We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall” — Cristina Guido, Energy and Environment Specialist

The overarching aims of the Town’s corporate environmental initiatives can be boiled down to reducing greenhouse gas (GHG) emissions and maximizing the efficiency of buildings and transport networks. “Energy consumption in buildings is our number one contributor to corporate GHG emissions,” says McFadyen. Guido is currently working on updating the Town’s corporate five-year energy management plan, which is set to be released in 2019. “It’s a requirement of the provincial government, but we took this as an opportunity to go beyond provincial regulations and expand this to broader corporate GHG emissions,” says Guido. “We’re assessing strategies to enhance operations and maintenance, and get our buildings to be as efficient as possible.” Through a collaborative partnership with the Town’s Corporate Energy Team, a group made up of the Town’s building operations specialists, Caledon is working to minimize emissions stemming from its buildings. This is being done through enhanced operational efficiency and conservation-focused retrofits. “We’re very

Recieving the award from Mayor Allan Thompson J U LY 2 0 1 9

fortunate to have the level of engage-

CLICK TO WATCH : ‘CAPTURE CALEDON’ 215 ment from our Building Operations

a software developed by Natural

Team that we do,” says McFadyen.

Resources Canada, a department of

“They’re an incredible group of people

the Canadian Government. It stream-

who’ve totally embraced our corporate

lines the Town’s building benchmarking

strategy and are actively engaged in

initiative as well as visualizing progress

– and excited about – efforts to

on Caledon’s goals. “RETScreen

leverage opportunities and retrofits to

allows us to normalize for variables that

reduce energy consumption.”

drive energy consumption which staff

At the outset of her time with the

cannot control, such as weather. This

Town of Caledon, Guido was pivotal in

allows us to isolate factors such as

the development of the Town’s building

heating degree days, cooling degree

benchmarking initiative that McFady-

days, and the number of days arena ice

en’s team has since used as a powerful

is operational in facilities. For some

indicator of building efficiency. The

facilities, we also look at recreation

project is driven by RETScreen Expert,

building booking hours and how this w w w.busi ne ssc hief. com

TOWN OF CALEDON

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influences their energy performance,”

Another major area of focus is

says Guido. “We also use RETScreen

transport, with McFadyen’s team

to monitor progress towards our

working not only to reduce the GHG

reduction targets. For example, our

impact of Caledon’s fleet but also to lay

current corporate energy management

the groundwork for future vehicular

plan has a target of a 9% reduction in

solutions. “One of our main focuses

building energy consumption, and we

with Town-owned vehicles will be

use the software to monitor how close

developing a corporate green fleet

we are to reaching that target,”

strategy and doing some modelling to

explains Guido. Caledon is well on its

see what types of lower-emission fuels

way to meeting its current goals, and

are less harmful to the environment,”

McFadyen enthuses that doing so is

says Guido. Progress has already been

just the beginning.

made in this area, with McFadyen 217

E XE CU T I VE PRO FI LE

Katelyn McFadyen Katelyn McFadyen is Manager of the Energy and Environment Division at the Town of Caledon. Having completed her Master’s degree in Environmental Sustainability at the University of Edinburgh, McFadyen has worked at the Town for almost six years as a key driver of the Town’s environmental portfolio successes. In her previous role as Energy and Environment Officer, McFadyen launched the Corporate Energy Team and established the Town’s Corporate Energy Revolving Fund, a self-sustaining fund that financially enables energy retrofits in Town facilities. McFadyen is currently updating the Town’s community climate change mitigation and adaptation action plan, driving the implementation of the Peel Climate Change Strategy, and leading the Energy and Environment Division.

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TOWN OF CALEDON

$100mn+ 1974 Annual budget for 2019

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Year founded

350+

Approximate number of employees

219

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The Savings by Design program helps builders improve energy and environmental performance in new construction projects. When a building model exceeds the Ontario Building Code’s energy performance requirements by 15% (combined gas and electrical savings), it becomes eligible for incentive funding.

Savings by Design Program

The Town of Caledon Southfields Community Centre Conceptual Rendering

TOWN FACILITY ADOPTS ENERGY EFFICIENT TECHNOLOGIES EXPLORING ALTERNATIVE OPPORTUNITIES TO SAVE ENERGY The Savings by Design program offers many options to help customers build resiliency into their projects, lowering long-term operational and ongoing energy costs. A Visioning Session helps define project requirements and sustainability priorities by exploring site, regulatory, and market conditions. Issues are then identified and prioritized in the Integrated Design Process Session (IDP). At the full-day IDP workshop, a team of design experts in sustainable building, lighting, HVAC, storm water management, and planning explore possible design improvements to the building. The team works with the SBD experts to explore alternative opportunities to save energy and meet the goals of the program. Real-time modelling allows the team to explore energy savings measures with immediate feedback on the energy impacts. After the workshop, SBC delivers a final energy model based on the ECMs selected as well as a report summarizing the discussions of the day.

The Town of Caledon has a Corporate Green Building Standard that requires LEED Silver certification for all new facilities over 10,000 square feet. When planning its new recreation facility at Kennedy Road and Dougall Avenue, the Town of Caledon turned to Enbridge Gas and Savings by Design. “The Savings by Design program presented a strong alignment with our Council-approved building standard,” says Katelyn McFadyen, Manager, Energy and Environment, Finance and Infrastructure Services. “It provided an integrated learning opportunity between Town staff and the project consulting team. All the parties came together to share information about facility construction best practices and energy efficient technologies.” The 65,000 square foot Southfields Community Centre contains a pool, fitness area, library, OPP station, youth and seniors space, and a community hub containing a Montessori School, Parent Child Centre and other community partners. A groundbreaking ceremony took place in the fall of 2017. A significant outcome of the Savings by Design program, according to the Town of Caledon, was the integrated learning opportunity about construction best practices, technologies and approaches available to reduce energy consumption, plus methods to improve the management of stormwater. The SBD program also had a direct impact on projects beyond Southfields Community Centre. “We invited staff outside of the project to expand their knowledge capacity and understand the justification for the construction of high performing facilities.”

INTEGRATED DESIGN WORKSHOP Sponsored by Enbridge and facilitated by Sustainable Buildings Canada (SBC), Savings by Design provides incentive funding for projects to engage in an integrated design workshop process with real-time energy modelling. Enbridge offered the Town of Caledon free access to a team of multidisciplinary experts to explore high performance building energy targets as well as other environmental objectives including wellness, low impact design, water management, and more. “Although some of the stormwater management technologies and approaches presented during the SBD workshop were not integrated into the Southfields Community Centre, these practices were integrated into other facility construction projects in Caledon,” adds McFadyen.

For more information, visit savingsbydesign.ca

“ We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall” — Cristina Guido, Energy and Environment Specialist

noting that the Town has developed a strong foundation for future electric vehicle (EV) infrastructure. “For a municipality of 70,000, we’re really proud that we have 13 publicly available EV charging stations, and six plug-in hybrid vehicles in our fleet,” she adds, noting that these successes are of particular importance to Caledon with its geographically large landscape. Through the Peel Climate Change Partnership, which involves the municipal governments of the Region of Peel, Town of Caledon, Cities of Mississauga and Brampton, Credit

E XE CU T I VE PRO FI LE

Cristina Guido Cristina Guido is the Energy and Environment Specialist with the Town of Caledon. Guido has her Bachelor’s degree in Environmental Studies and Master’s degree in Environmental Studies from York University in Toronto, and has recently received the Business Energy Professional certification from the Association of Energy Engineers. Guido has been with the Town since 2015, beginning in the role of a student and progressing to her current full-time role. She is driven by her passion for climate change mitigation and is inspired to make a change in the community that she grew up in. Guido continues to lead the Town’s corporate energy and environmental initiatives.

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TOWN OF CALEDON

Valley Conservation Authority, and the Toronto and Region Conservation Authority, Caledon is helping to develop a new regional strategy to accelerate the adoption of low-emission and zero-emission vehicles by residents and businesses in Peel Region. Further actions earmarked for improvement in this area include a ramp-up of vehicle maintenance to maximize efficiency, as well as optimizing fleet route selection. “We’ve installed a GPS-based system into every vehicle in our fleet which could, for example, optimize 222

routes for snow removal in the winter,” says McFadyen. Automation-based technologies are also playing a part in the Town’s sustainability drive, such as the deployment of smart thermostats through many of its buildings and an algorithmic tool that collates utility bill data in the back end of Caledon’s energy management software. The benefits of such upgrades are far reaching: by being able to remotely control a building’s internal climate, McFadyen notes that operations teams no longer have to travel between locations to make adjustments, thereby reducing transport-based emissions. The algorithmic solution J U LY 2 0 1 9

mitigates the risk of additional costs or disruptions accruing through mishandled or misinterpreted data, provides alert reports with consumption anomalies and enhances administrative elements of processing utility bills. The efficacy of these endeavors has been reflected in the awards that McFadyen’s team has received. “We were recognized by the Mayor’s Megawatt Challenge for a 10% reduction in energy usage in our Town Hall, and received similar recognitions for two of our recreation complexes,” says Guido, highlighting a handful of the many awards received from local associations and climate action drivers – but for the team, the satisfaction lies in the results themselves. “Something we really value is that once you implement a project you can see its results,” says Guido. “We can see these retrofits and then, on the data side, we can measure and see that they are saving energy and reducing emissions. It’s amazing to see the impact of our work and to know that we are making a difference.”

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224

Service New Brunswick: procurement as a business enabler WRITTEN BY

LAURA MULLAN PRODUCED BY

ARRON RAMPLING

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SERVICE NEW BRUNSWICK

With a winning procurement strategy underway, Renée Laforest, Vice President of the Finance and Strategic Procurement Division at SNB, highlights how the crown corporation is having a lasting impact on New Brunswick

226

hether registering land and property or receiving healthcare, the citizens of New Brunswick have definitely crossed

paths with Service New Brunswick (SNB), a crown corporation that provides almost all direct public services on behalf of the government. SNB’s regular clientele includes provincial and federal government agencies, municipalities, lawyers, surveyors, appraisers, realtors, financial institutions, utilities, engineers, consultants and more – this means the organization’s procurement team have a massive, yet vital, task on their hands. Renée Laforest, Vice President of the Finance and Strategic Procurement division, highlights how SNB’s procurement function isn’t just about improving cost efficiency: it’s also about making meaningful change. “Service New Brunswick does strategic procurement for most of the government entities in the entire province including the health J U LY 2 0 1 9

227

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SERVICE NEW BRUNSWICK

“ We’re starting to have more conversations about value-based procurement, whereby the results are based on outcomes” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick

sector,” she explains. “Five or six years ago there was an emphasis on cost, and the strategic procurement division was asked to find substantial savings for the government. Therefore, not unlike a lot of procurement teams, we shifted towards a category management strategy.” In essence, this involves clustering similar items that the company wants to buy under a single cost-effective deal. “We have achieved a significant amount of savings through this new strategy,” Laforest enthuses.

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CLICK TO WATCH : ‘RECENT ECONOMIC SUCCESSES’ 229 However, in the most recent chap-

has implemented a range of innovative

ters of the firm’s procurement journey,

procurement strategies but it seems,

it has shifted towards value-based

in a lot of cases, you can’t underesti-

procurement. This can perhaps be

mate the power of conversation and

best seen within the healthcare

understanding the product or service.

division, notes Laforest: “We’re starting

“We really consider our clients’ needs

to have more conversations about

and requirements when procuring

value-based procurement, whereby

goods and services for them,” Laforest

the results are based on outcomes.

notes. “It’s important that we have these

For example, when we purchase

in-depth conversations, particularly

insulin pumps for diabetes clients,

when it comes to services. If you’re

we’ll carefully look at the needs of

buying a service you may have more

our clients and ensure we meet their

complex needs and requirements,

demands rather than automatically

so this dialogue is critical.”

opting for the cheapest pump.” SNB

Procurement has proven to be at the w w w.busi ne ssc hief. com

SERVICE NEW BRUNSWICK

230 bedrock of SNB’s operations, ensuring that the organization can deliver the vital government services needed to keep the region ticking along. The function has a lasting impact on the people who provide government services, as well as an indirect impact on those who receive them. Yet, notably, the reverberations of SNB’s innovative procurement strategy can be felt by New Brunswick suppliers too. “We’re trying to support New Brunswick suppliers to become prosperous so they can successfully bid to the government,” Laforest explains. “We’re J U LY 2 0 1 9

“ We are trying to support New Brunswick suppliers to become successful so that they can successfully bid to the government” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick

trying to explain to them when we can

of technology supply contracts with

give preference to a local supplier

the Government of New Brunswick.

versus having an open tender, and why

“Currently, they hold four separate

we need to do that to support our New

multi-year contracts of supply for

Brunswick companies.” On top of this,

technology goods, including data centre

SNB has shown a flair for supplier

infrastructure and client computing

relationship management (SRM)

equipment,” explains Laforest. “All of

through in-depth conversations,

these contracts were awarded through

outreach programs and more. One

competitive open tenders and support

such company that has worked closely

SNB service delivery to three main parts

with SNB is IMP Solutions, who were

of government: core government

successful in winning a number

departments, education, healthcare.” 231

E XE CU T I VE PRO FI LE

Renée Laforest Laforest obtained her Bachelor of Business Administration from the Université de Moncton and is a CPA CGA with 29 years of experience in the civil service. She began her career as an internal auditor at the Office of the Comptroller, then as a treasury officer in accounting services. She then moved to the Department of Health and held various roles in financial services, including the Executive Director role, and also the Assistant Deputy Minister of Health Corporate Services where she was responsible for financial services, construction services, health analytics, procurement, emergency preparedness and business technology. Laforest joined Service New Brunswick in June 2017 as Vice President of Strategic rocurement, and become responsible for Financial Services in the Fall 2018.

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SERVICE NEW BRUNSWICK

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$266mn Approximate revenue

1990

Year founded

2,400

Approximate number of employees

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SERVICE NEW BRUNSWICK

Pulling back the curtain of complexity IMP Solutions is a leading “end to end” IT solutions company serving all of Atlantic Canada. As such, we work with a broad range of both public and private sector clients to provision, design, develop, implement, service and support IT solutions. This is accomplished through our various lines of business which include: Hardware/Software Fulfillment Professional Services Advanced Solutions (Networking and Cloud) Technical Services Managed Services

IMP Solutions is proud to be a strategic procurement partner for the Province of New Brunswick. Through competitively secured supply arrangements, IMP Solutions provides both data center (storage and server) and endpoint device (desktop, laptop and accessories) technology to meet the Province’s business needs.

Learn More +

“ I want to really add value for our clients so that they don’t see procurement as a roadblock but rather see it as a valueadding function” — Renée Laforest, Vice President, Finance and Strategic Procurement Division, Service New Brunswick 235 Any business leader will tell you

it to submit their proposals and we

that the procurement sector has been

do all our evaluations within the tool.

a stomping ground for innovation lately

It’s all automated and all our stakeholders

and this hasn’t gone amiss at SNB.

have found it beneficial.”

Laforest describes how the organiza-

Looking at the wider procurement

tion is in the midst of implementing

landscape, Laforest has seen an uptake

a new enterprise resource planning

in innovative procurement practices.

(ERP) system. “We are investing in a

This helps to encourage greater collabo-

new eERP solution for all of govern-

ration with vendors and promotes new

ment, so we need to replace the HR

ways of doing things. “I think the days of

management, financial, and procure-

listing endless requirements for procure-

ment and supply chain systems,” she

ment processes are in the past,” she

explains. This is further compounded

proposes. “In some instances, you may

by the group’s strategic sourcing

know that the business needs to buy

platform used for health sector

a blue chair that’s a particular height,

procurements, Bonfire. “Vendors use

for example, and that’s easy to do. w w w.busi ne ssc hief. com

SERVICE NEW BRUNSWICK

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But when you’re not quite certain what the market has to offer then it’s important to have a process where procurement can be more open. For instance, you may say ‘I need a system to help me track health inspections’ and outline your requirements so vendors could bring forward unique suggestions. It’s fair and transparent and I think it brings about more successful outcomes.” SNB’s procurement success is far from coincidental. The crown corporation has put its weight behind a multi-year procurement integration and it is already reaping the benefits for both the government and its citizens. In the upcoming years, Laforest asserts that SNB will continue to spearhead leading procurement practices so that stakeholders can see the function is not a hindrance but rather, an enabler. “I want to really add value for our clients so that they don’t see procurement as a roadblock but rather see it as a value-adding function,” she affirms.

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LEVERAGING DIGITAL TRANSFORMATION IN THE EVOLVING MINING SECTOR WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

RICHARD DEANE

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239

ANDRITZ

Arthur Gooch, Director of Innovation, and Sohail Nazari, Business Development Manager of ANDRITZ, discuss the importance of innovation amidst a digital transformation in the mining industry

ith a desire to establish a lead in the mining sector through innovation amidst a worldwide digital transformation,

ANDRITZ, which provides industry-specific 240

products and solutions for sectors including mining, has a history of setting the bar high. With the task of embracing the right technology to drive operations forward vital to growth in all fields, the mining sector is often considered slower to adopt new software. However, ANDRITZ remains determined to enable mining operations all over the world to bridge the gap between concept and production, facilitate operational readiness and stay ahead of the curve. The firm has made a significant impact in the mining space in recent years, winning the prestigious #DisruptMining 2019 innovation competition through its disruptive Digital Twin technology capable of training artificial intelligence (AI). â&#x20AC;&#x153;It was a very exciting experience and a little bit surreal to win the competition.

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1852

Year founded

10,000+

Approximate number of employees

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ANDRITZ

“ONCE WE BECAME A FINALIST, IT’S A SHARK TANK STYLE COMPETITION AND THE FINAL THREE GO ON STAGE” — Sohail Nazari, Business Development Manager, ANDRITZ

242 We couldn’t quite believe it,” says Arthur Gooch, Director of Innovation at ANDRITZ. “There’s a fair amount of pressure associated with the event so it all happened in a bit of a blur.” The competition, hosted by gold mining giants Goldcorp and now in its third year, had approximately 90 submissions from mining firms to showcase the technologies they have implemented to drive innovation in the sector. “It was amazing when we were on the stage,” adds Sohail Nazari, Business Development Manager of ANDRITZ. “It’s vital that you spend a lot of time J U LY 2 0 1 9

CLICK TO WATCH : ‘ANDRITZ CORPORATE VIDEO’ 243 ensuring that everything on your

dynamic simulator, IDEAS, the tool is

application is correct.”

now enabling operations across the

The competition is whittled down

sector to reduce risk and experience

until three finalists remain. “Once we

considerable cost savings. The

became a finalist, it’s a Shark Tank

software is considered the leading

style competition and the final three go

dynamic simulator for oil sands

on stage,” explains Nazari. “They pitch

operations in the north of Canada

their ideas to the judges with 500

and for hard rock mining operations

people watching in the audience. It’s

worldwide. Gooch explains how

fair to say it’s a high-pressured event,

his company is utilising Digital Twin

and the stakes were really high, but

software. “The first physical model is

after we were announced as the

like a software wrapper for all of the

winner, we all felt a massive relief and

engineering equations that we know

were incredibly satisfied.”

define each piece of equipment,” he

Having impressed the judges with its

says. “For example, if we have a pipe, w w w.busi ne ssc hief. com

ANDRITZ

244

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we know that there are correlations

matter of solving a number of equa-

between pipe geometry, surface

tions. Instead, it’s setting the conditions

roughness, the pressure across the

and the operating points – like the

pipe as well as the pipe’s flow rate.

positions of valves and the set points

Those equations, alongside those for

of controllers – enables the simulation

every other piece of equipment, get

to replicate the behavior of real

embedded into objects in the model in

running equipment.”

a graphical format. This allow us to

“Engineers make mistakes like

connect them together, and it means

everyone else in life. However, when

that when someone wants to figure out

you build the simulation model, you

what is going on in the plant, it’s not a

actually go through all these designs

E XE CU T I VE PRO FI LE

Dr. Sohail Nazari, BDM

245

Dr. Sohail Nazari has worked in various industries including automotive and oil and gas. His current focus in ANDRITZ is to develop the business of applying advanced automation technologies in mining and mineral processing. He was one of the instrumental contributors to the ANDRITZ team that just won first prize in the Goldcorp/Newmont Disrupt Mining competition with IDEAS Reinforcement Learning Artificial Intelligence. His areas of expertise include design and implementation of advanced process control, intelligent condition monitoring, Digital Twin and machine learning algorithms. Dr. Nazari holds a patent on developing a model predictive control algorithm for power optimization in data centers. He received his PhD from University of Alberta, Canada, Department of Electrical and Computer engineering in 2013. w w w.busi ne ssc hief. com

ANDRITZ

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“THE FIRST PHYSICAL MODEL IS LIKE A SOFTWARE WRAPPER FOR ALL OF THE ENGINEERING EQUATIONS THAT WE KNOW DEFINE EACH PIECE OF EQUIPMENT” — Arthur Gooch, Director of Innovation, ANDRITZ 247

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ANDRITZ

S E PAR ATION

MA XIMIZ E D PRODUCTIVIT Y WITH ANDRITZ INTE LLIGE NT FILTE R PRESSES ONE STEP FURTHER IN DIGITALIZ ATION

With ANDRITZ filter press technology and Metris addIQ control systems, you are prepared for the challenges of digitalization and IIoT â&#x20AC;&#x201C; all to the degree that fits your individual needs. Metris addIQ

www.andritz.com/metris-addiq

control systems combine all our extensive operation, troubleshooting, and start-up experience in one tailored automation solution. With the broad portfolio of scalable automation solutions, applicable for

a wide range of purposes (e.g. predictive maintenance, process monitoring, troubleshooting, long-term trending, etc.), ANDRITZ is your full-service provider for filter presses.

249

E XE CU T I VE PRO FI LE

Arthur Gooch, Director of Innovation Arthur is responsible for product development at ANDRITZ. A mechanical engineer by training, most of his career has focused on process automation projects for the mining and pulp and paper industries. From his background in control system configuration and commissioning, he now directs the creation of artificial intelligence and simulation technologies for industrial control.

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ANDRITZ

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and it allows you to ensure the design is going to work. It highlights any mistakes that are made,” adds Nazari. “We build the model, validate the design and ensure that it includes all the concepts on physics, chemistry, control systems, metallurgy, or whatever the plant is for. It’s all there. Then, we make sure that the design will work under different scenarios before we connect the model into the control system, even before the plant is built.” Following its success, Gooch affirms that ANDRITZ continues to take innovation seriously to avoid complacency and ensure it differentiates itself from rivals. “It’s a constant process of trying to review the technology we have and look at how we can take new strides with the things we couldn’t do yesterday.” Reflecting on his company’s achievements, Nazari affirms how teamwork has been key to ANDRITZ’ endeavors. “This success definitely comes down to teamwork,” says Nazari. “The things that we are accomplishing in our division, with regards to AI at ANDRITZ, are made possible by the leadership culture in place to support this and help push for innovation. We are passionate and we w w w.busi ne ssc hief. com

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“I BELIEVE MANAGERIAL PRUDENCE AND CAUTION ARE CERTAINLY KEY TO ENSURING SUSTAINABILITY” — Sohail Nazari, Business Development Manager, ANDRITZ

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ANDRITZ

are one team working together to

be quite deliberate and restrained

innovate – it is so important.”

regarding how many people we

With sustainability considered a key

approach. At some point, we could

pillar at ANDRITZ, Gooch points out

potentially run the risk of making

how crucial it is that, despite success,

promises that we simply wouldn’t

the company doesn’t take on more

have the resources to execute in

projects than it’s capable of delivering.

the agreed timescale.”

“I believe managerial prudence and

Looking to the future, Nazari aspires

caution are certainly key to ensuring

for ANDRITZ to become the default

sustainability,” he says. “We’ve

provider of Digital Twin technology in

experienced a tremendous flurry

mineral processing and pulp and paper.

of activity; however, we have had to

“With our well established process

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simulation technology, ANDRITZ is

paper is going to work. We’re going

becoming a natural frontrunner of this

to automate and then optimize as

innovation and is being considered as

much as possible. This is what we

a pioneer in the use of real time Digital

at ANDRITZ have at the forefront of

Twins for optimizing the process and to

our thoughts.”

better monitor the conditions from the process point of view,” explains Nazari. “The plan for the next few years is to continue to push innovation through more showcases, and we’re going to undergo a large evolution of how the mineral processing and pulp and

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