Business Review USA and Canada magazine - January 2017 by Business Chief USA

TOP10

START-UPS to watch in 2017

w w w.businessreviewusa.com

Januar y 2017

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WOMEN IN STEM and the legacy of Ada Lovelace

THE RISE

OF COLOCATION THE OSCARS of

the business world An overview of The Stevie Awards

TALKING

BIZ WITH:

CoreSite

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EDITOR’S COMMENT

HAPPY NEW YEAR! HELLO, AND WELCOME to 2017’s first issue of Business Review USA & Canada. We kick the year off with a tribute to Ada Lovelace, a woman who remains widely known as the first computer programmer due to her incredible understanding of Charles Babbage’s Analytical Engine, and the notes she wrote on the subject in 1843. We explore her impact on the world of STEM, particularly with regard to women in the field. Also featured is The Stevie Awards – also known as The Oscars of the business world – and its importance for entrepreneurs and executives alike. This month’s list is the top 10 startups to watch in 2017, and the innovative products each is creating. This bumper issue includes huge exclusive interviews with Informart Data Centers, CoreSite, City of Mississauga, DavisREED Huntington Hilton Project, PAML, PayneCrest, PwC, and The Braun Corporation. Enjoy the magazine, and feel free to join in the conversation on Twitter: @BizReviewUSA and @NellWalkerMG

Enjoy the issue! Nell Walker Editor nell.walker@bizclikmedia.com 3

CONTENTS

F E AT U R E S

Infomart Data Centers

PROFILE

The Oscars of the business world

TECHNOLOGY

Women in STEM and the legacy of Ada Lovelace

CoreSite

TO P 10

PayneCrest

Start-ups to watch in 2017

January 2017

C O M PA N Y PROFILES CONSTRUCTION 36 Infomart Data Centers 56 CoreSite 76 PayneCrest 86 DavisREED Huntington Hilton Project

HEALTHCARE 96 PAML

SUPPLYCHAIN 106 The Braun Corporation

TECHNOLOGY 116 City of Mississauga

96 PAML

DavisREED Huntington Hilton Project

106

The Braun Corporation 5

PROFILE

The Oscars of the

BUSINESS WORLD Business Review USA & Canada explores the highest accolade available to business professionals worldwide â&#x20AC;&#x201C; The Stevie Awards.

Wr i t t e n by : N E LL WA LK E R

PROFILE SOMETIMES, ACROSS INDUSTRIES rife with potential for crime and corruption, the genuinely good, trustworthy, and history-making business leaders aren’t appreciated enough for their hard and honest work. When The Stevie Awards began in 2002, the New York Post described it as a way to “distinguish the good guys from the scoundrels”, and it has remained well-respected ever since. Originally known as The American Business Awards, The Stevie Awards were created by Michael P. Gallagher as a way to boost public and business trust in the companies nominated. Press all over the US has hailed the Stevies as a chance for C-level executives to clean up their image, and they have even been called ‘the Oscars of the business world’. As such, it is considered an enormous honor to win, and those believing themselves to be worthy pay at least $505 in entry fees. Respected business figures do the judging, evaluating nominees, separating them into categories, and eventually awarding the 24-karat gold 16 inch tall statuette, which depicts a humanoid figure holding a pyramid representing Maslow’s hierarchy of needs. 8

January 2017

The main categories are as follows: The American Business Awards. These are open to all American organisations and include many sub-categories covering every aspect of the workplace. The International Business Awards. This opens up the awards worldwide. The Asia-Pacific Business Awards. Open to every organisation within the 22 nations. The German Stevie Awards. Open to all German businesses. The Stevie Awards for Great Employers. This honours employers themselves as well as HR professionals and suppliers. The Stevie Awards for Sales and Customer Service. Recognising the achievements of sales, customer service, and call centre professionals. The Stevie Awards for Women in Business. This honours women specifically, worldwide, covering every professional female from small entrepreneurs to CEOs.

THE STEVIE AWARDS

Altogether, The Stevie Awards receive 10,000 entries a year across over 60 nations. For the American Business Awards, over 3,400 entries were submitted, with 250 American executives judging. Entrants are separated into five levels of distinction (Bronze, Silver, gold, Grand, and People’s Choice), and companies are able to submit from any aspect of their business, no matter how low or high. The Grand Stevie Award winner at the American Business Awards 2016 was CallidusCloud, a California-based software developer which earned 76 points (based on the number and quality of submissions) overall, beating TopSpot Internet Marketing, Merkle,

and MWW (the latter for the fourth consecutive year). Also included in the Grand Stevie honors were Cisco Systems, Keunesse Global, Lakeshore Recycling Systems, Accenture, Isagenix Internationa, Cigna, John Hancock, AT&T, New American Funding, and SoftPro. Leslie Stretch, President and CEO of CallidusCloud, said: “These prestigious awards are great recognition of the incredible momentum in our business and the tireless efforts of the team at CallidusCloud, who help our customers make more money, faster, using our industry-leading service.” Another particular jewel in the 9

PROFILE

Stevie crown is The Stevie Awards for Women in Business, which acts as a much-needed spotlight on female executives and entrepreneurs. The Grand Stevie winners in this category were PAIRELATIONS LLC, Accenture, WDS Marketing & Public Relations, Jeunesse Global, and Linqia. As previously reported by Business Review USA, President and CEO of ERA Real Estate Sue Yannaccone was named Bronze winner in the coveted Female Executive of the Year (More Than 2,500 Employees) category, and recognized the enormity of the honor: “I couldn’t be more thrilled to be recognized by The Stevie Awards for Women in Business. Since joining ERA Real Estate last year, I have been deeply impressed with the energy and momentum of this uniquely collaborative brand as we chart a course for continued growth and work together to move real estate in a whole new direction.” Yannaccone wowed judges and beat 1,500 other entrants for the category by being promoted from COO to CEO and President within a year of working at ERA Real Estate. Similarly, Sabrina Rosati, Executive 10

January 2017

THE STEVIE AWARDS

Vice President and Managing Director for Italy at Tagetik, led the company’s international business development strategy and also won a bronze award in Female Executive of the Year in Business Products (11 to 2,500 Employees). “Emanuela (Cecchetti, Director of Digital Marketing and Technology) and I are honored by these awards,” she said. “Our talented and dedicated team members have been instrumental in helping us achieve ambitious goals and significantly increase awareness and market share for Tagetik. We view our Tagetik co-workers as family, and we all share in these accomplishments.” Michael Gallagher added: “The competition has

grown each year because there are so many high-achieving women all over the world, who serve as an inspiration to those who would like to start, grow, or lead a business.” The benefits of becoming involved in the Stevie Awards are potentially endless; there is no better way of inspiring faith in your company than receiving an accolade from such a widely-respected source. As the Stevie Awards website states: ‘The employee relations benefits can be significant. When you submit entries, you’re telling your employees that you recognize and appreciate their accomplishments and believe that their achievements are worthy of national recognition.’

20 of the 20 Top Supply Chains

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Modern Supply Chain Experience February 13 - 15, 2017. San Jose, CA / Convention Center Business expectations have changed, and supply chain professionals need to prepare for the cloud amidst a quickly changing industry. Oracle’s largest conference dedicated to supply chain solutions, Modern Supply Chain Experience 2017 (February 13-15, 2017 in San Jose, California), will prepare more than 2,800 supply chain professionals for the cloud and the future of supply chain through discussions on innovation, best practices, and strategies to modernize the supply chain for a strategic advantage. Designed for business leaders responsible for end-to-end supply chain solutions and supply chain professionals with a focused supply chain expertise, Oracle’s 5th annual conference will showcase more than 150 sessions across seven focused solution areas and feature important industry announcements. The premier conference will include discussions on innovations such as the Internet of Things, machine learning and artificial intelligence, including a keynote from Oracle’s Rick Jewell, SVP of supply chain applications development, on how supply chain leaders can use adaptive intelligence to enable every enterprise application to learn from interactions with an enterprise’s data to predict customer needs before they arise. Other industry visionaries set to speak at Modern Supply Chain Experience include:

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With valuable insights into supply chain advances, informational product demonstrations and special programs ranging from a Supply Chain of the Future exhibit with digitally enabled technologies to the Future Supply Chain Leaders Program that invites a select set of promising college students to participate in the conference, don’t miss the opportunity to attend Modern Supply Chain Experience. Register now and save $100 off the current rate by using the code 2017SCD. This discount cannot be combined with other offers or discounts.

TECHNOLOGY

Women in STEM and the legacy of

Ada Lovelace How can those in STEM careers encourage more women into the field? We take a look at the work Autodesk is doing to bridge the gap and the omnipresent influence of Ada Lovelace Wr i t t e n by : N E LL WA LK E R

TECHNOLOGY

STEM – SCIENCE, technology, engineering, and mathematics – has long been a male-dominated sector. Historically, men and women have been steered to focus on different career paths, leaving a gap for female scientists and engineers – which, finally, is set to be increasingly filled. More and more, programs tailormade for women aiming to enter 16

January 2017

the industry are being created, and multinational software corporation Autodesk has been vocal about supporting this. In 2016, on Ada Lovelace Day (which falls on the second Tuesday in October), Autodesk released a dedication to Lovelace which also highlighted the work it is doing to support women in STEM. Ada Lovelace was an English

WOMEN IN STEM

â&#x20AC;&#x153;Having that personal connection with another female (like me) gives young women the self-belief that they can discover a career path in STEMâ&#x20AC;? â&#x20AC;&#x201C; Tessa Colledge, Engineering Software Programmer at Autodesk

analyst and metaphysician who is hailed as the founder of scientific computing. She was born in 1815, the product of a brief marriage between Romantic poet Lord Byron and Anna Isabelle Milbanke. Lady Byron raised Lovelace to be tutored in mathematics and science as a stark contrast to the creative leanings of her father (despite him having no influence over

Lovelace, as she never knew him). In 1828, at just 13 years old, Lovelace created a design for a flying machine. Unsurprisingly, ladies engaging in scholarly pursuits was not generally encouraged at this time, but Lovelace moved in elite circles with gentlemen of science, and was easily intellectual and charming enough to become friends with those at a similar 17

TECHNOLOGY academic level. Lovelace famously formed a lifelong connection with Charles Babbage, a Professor of Mathematics at Cambridge University, beginning when she was only 17. While the term ‘scientist’ had not yet been invented, Babbage and Lovelace certainly fit the bill, and the two of them began frenzied communications on all subjects of science, math, and logic. Lovelace’s lasting fame stems from the translation and accompanying notes of a memoir, written by Luigi Menebrea, on Babbage’s Analytical Engine. Lovelace wrote her article

“Being a role model to women in STEM EXTENDS BEYOND MY FORMAL RESPONSIBILITY at Autodesk” – Amy Bunszel, VP of Digital Engineering Products at Autodesk 18

January 2017

between 1842 and 1843, outlining her easy understanding of Babbage’s machine, and her view of it as a computer. The notes contain the outlines of software, including an algorithm – the first of its kind – tailored for use on a computer, but this program has never been tested. They also hint at the concept of computer-generated music, and describe the Analytical Engine as a device for “developping [sic] and tabulating any function whatever… the engine [is] the material expression of any indefinite function of any degree of generality and complexity.” This incredible scientific foresight is why we continue to celebrate Lovelace and her heavy influence today. Ada Lovelace Day has only been recognized since 2009, but its creation ensured that her legacy was rightly resurrected. Now, the day involves international events led by female industry experts, allowing and encouraging all women either in STEM or considering a career in STEM to become involved. Tessa Colledge is an engineering software programmer at Autodesk, and is dedicated to actively involving more women in STEM, visiting schools

WOMEN IN STEM

and universities to educate on the subject from the female perspective. While she is aware that improvement in this area will continue to be a slow process, Colledge is confident that with enough time and investment in training programs, the gap between men and women in STEM will shrink as women are further encouraged to be a part of the industry. “It’s important to recognize the contribution women bring to engineering on days like Ada Lovelace Day,” she says, “but we have a long way to go when it comes to championing female role models. In my work as a STEM ambassador

with Autodesk, I see the value in exposing young women to careers once deemed only suitable for boys. “Having that personal connection with another female (like me) gives young women the self-belief that they can discover a career path in STEM. If you have an interest in engineering, I’d urge you to cherish the skills that you want to apply – whether this is math or problem-solving skills. Don’t give up on finding the career where you can use these skills – it’s out there somewhere. Take risks, put yourself out there and explore the unknown.” 19

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WOMEN IN STEM

Amy Bunszel, VP of Digital Engineering Products at Autodesk, spoke this year at Catalyst Conference 2016 – an annual celebration of women in technology – and is as passionate as Colledge about encouraging women to become a part of the STEM sector. “We know that we need more women at the table,” she says, “on teams and in the boardroom, and we must work at both retaining women already in STEM fields and getting more young women interested in STEM. This is why celebrating days like Ada Lovelace Day and promoting the accomplishments of women in STEAM is crucial. My advice for women in STEM is to ask for stretch assignments that align well with their technical and leadership skills, and to look around their organizations for women they can bring along with them.” Bunszel believes that the most essential resource for women hoping to enter the world of STEM

is the women who are already part of that world, and that these people have a responsibility to aid in the cause towards changing minds and influencing the industry. “And for those of us who have already made a successful career in STEM, it is important to offer coaching, mentoring, sponsorship, and advice,” she says. “In return for helping others you’ll also build up a strong network of support and your own sounding board. I leverage my connections to benefit others and enjoy connecting people with opportunities. For me, being a role model to women in STEM extends beyond my formal responsibility at Autodesk to participating on panels across the Bay Area, having coffee meetings to offer advice and encouragement and speaking at career fairs and sponsoring programs like Girls Who Code. Keeping the spotlight on the topic is crucial.”

TOP 10

TOP 10 STARTUPS TO WATCH IN 2017

The last few years have shown some incredible growth in sectors of technology and science, particularly as our devices become smarter and big companies pour money into entrepreneurial start-ups. Here are Business Review USA & Canadaâ&#x20AC;&#x2122;s picks for the start-ups to watch this year Wr i t t e n by : N E LL WA LK E R

TOP 10

CUREMETRIX WAS FOUNDED in 2014, and focuses on improving cancer survival rates using AI algorithms in medical imaging and diagnostics. Started by CEO Kevin Harris and CTO Dr. Homa Karimabadi, CureMetrix is using state-of-the-art image analysis as an accurate mammography tool, assigning a code known as a ‘Q number’ to the images to show the progression of cancer. It allows radiologists to see more detailed information at a glance, and this innovation means CureMetrix has been able to secure funding from San Diego’s Analytics Ventures.

January 2017

SOCI CALLS ITSELF ‘the last social tool you’ll ever need’; it is a platform for managing all of your social media accounts, with founders Afif Khoury and Alo Sarv filling a gap in the market for a software program that will act as a command center. The company was founded in 2012 and has worked hard to acquire strategic Silicon Valley investors and partners, ensuring 300 percent growth in revenue in its second year.

S T A R T- U P S

APPROVED APPROVED IS A piece of software set to streamline documentation for homeowners and mortgage lenders. It will cut approval processes down to a few minutes from potentially weeks, and its founders – Andy Taylor and Navtej Sadhal – are continuing to develop the technology in San Diego’s EvoNexus incubator. They previously developed Redfin, and as Taylor says: “We know how to build world-class software.”

SPLT IS CARPOOL software app, which aims to make commuting a relaxing experience where one can also find interesting new people to befriend. It arranges rides in seconds within a community of carpoolers, and the algorithm can match co-workers to travel together (which the customers can approve and communicate securely within the software). SPLT also has a focus on sustainability, turning green travel elements into goals. CEO and founder Anya Babbitt has grown three successful companies and SPLT looks set to challenge liftsharing businesses across the US.

TOP 10

INNOVA EV HAS wisely jumped onto the electric car bandwagon with the eye-catching Dash, a solar-charged 100 percent electric vehicle which costs absolutely nothing for fuel and produces no pollution. Innova EV, founded by CEO Roman Kuropas in 2006, is finding its niche as on-campus transport at universities, with the company having realized that millennials care profoundly about the environment and will often choose their college based on its level of sustainability.

January 2017

LAUNCHED IN 2015, Chariot has blown up in an impressively short time, enjoying a cash injection in late 2016 when Ford bought the company for over $65 million. Chariot is a commuting business, using 14-passenger vans bursting with innovative technology. Run by CEO Ali Vahabzadeh, it currently operates in the San Francisco Bay area, and potential customers can suggest and crowdfund routes.

S T A R T- U P S

POLYSPECTRA IS A research team which focuses on material science, mechanical engineering, and applied physics. Founded by Raymond Weitekamp (who boasts previous experience with Caltech), the company is working towards sustainable material fabrication and has already won numerous awards for its high levels of innovation.

ITOPIA IS ALL about improving your business, offering cost-effective ways to manage and migrate applications and infrastructure to the cloud. Led by co-founder and CEO Jonathan Lieberman, itopia currently offers over 1,000 hosted applications on the cloud via its Cielo platform, which promises to be 10 times faster and much cheaper. It claims to be ideal for MSPs and uses only the worldâ&#x20AC;&#x2122;s finest data centers and IT security.

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TOP 10

CLEMENT PERROT AND David Zhang founded Prynt in 2014, and the company has grown enormously in just two years. The Prynt product consists of an app and what looks like a digital camera, into which you mount your phone. This device is actually a small printer, and when you take a photograph, you can send it straight to this printer to produce a tangible image in seconds. The device pairs easily with almost any type of phone, and even the â&#x20AC;&#x2DC;inkâ&#x20AC;&#x2122; is a new invention; you order refills for it via the app.

S T A R T- U P S

WHY NOT END on a cute and fluffy note? Dog Parker creates precisionengineered, safe and comfortable units for dogs to sit in outside storefronts while their owners shop. They are temperature-controlled, automatically sanitized using UV lights, remotely monitored via your smartphone, and comfortable for dogs of all sizes. The company has been reported on in some major national newspapers and websites, and thanks to the good publicity and strategic partnerships, there are four Dog Parker locations currently in Brooklyn with many more on the way.

S & O P I N N O VAT I O N S U M M I T

Aparna Singhal, Director of Sales Operations at Google

APARNA IS A recognized thought leader in sales operations, supply chain, finance and transformational change. She leads a team that performs as catalyst leaders in transforming business decisions and processes for Google Cloud. Focusing in ways to optimize the business, Aparna’s team builds consistent, scalable and comprehensive processes while applying bestpractice change leadership. Aparna also manages the vendor strategy, data and systems strategy, and functional budget including planning, forecasting and reporting. Aparna’s remarkable reputation as a strategic cross-functional partner has earned her a high degree of confidence 30

January 2017

Supply Chain Digital Offici among her peers and associates. Aparna’s goals in life and work will always involve seeking new experiences, challenges, and growth. We sat down with her ahead of her presentation at the S&OP Innovation Summit, taking place in Las Vegas on January 25-26 2017. Q: How did you get started in your career? A: I got started in my career by working in a rotation program that allowed me to work in 4 different disciplines over two years. This taught me the importance of seeing many areas of an organization and how they are all dependent on each other. Most teams work mainly in their silos with their own objectives, but we need them to plan with joint objectives. Q: S&OP has undergone something of a resurgence in recent years, what do you think has been behind it? A:I believe the resurgence is due to companies having more of a focus on costs and the impact the G&A functions have on the bottom line. S&OP’s role in the ability to prioritize resources and funds to allow for greater customer success is more understood. Q: Is IBP a progression of S&OP, or is it just an issue of semantics?

ial Media Partners | 2017 A: IBP to me is an extension of S&OP. It is somewhat of a natural progression but leads to more holistic planning. Q: What do you think are the main benefits of S&OP? Where do think some companies fall down? A: The main benefit is the end to end view. Companies can make strategic decisions while considering the supply chain as well versus only the product features or sales cycle. Companies fall down when they donâ&#x20AC;&#x2122;t implement a long-term planning process and try to force fit short term needs. This occurs mainly when they lose the discipline. Q: What do you consider the most important aspects of an effective S&OP strategy? A: To me, the most important aspects of an effective S&OP strategy is the connection between engineering, sales, finance and operations. It allows for the ability to hold teams accountable and be aligned to common goals. Q: Which technologies do you see as having a major impact on S&OP in the future? 3In a way, there are too many technologies that try to solve S&OP for organizations. Since the way each company is run has so many of its own nuances, a standard off the shelf technology may not meet the goals

of that organization. There is also data and data refresh that can impact decision making. The more we can have integrated planning tools across organizations that show revenue objectives all the way to customer support, the higher the success. Q: What will you be discussing in your presentation? A: In my presentation, I will discuss how data quality is critical to the impact and success of your S&OP process and the concept of master data management in your S&OP process. You can hear more from Aparna, along with other industry leading S&OP practitioners, at the S&OP Innovation Summit. To register your interest, click here, and quote SCD20 to get an exclusive 20% discount.

Elliott Jay | Global Events Manager | Innovation Enterprise | +1 415 800 4713 | ejay@theiegroup.com

maximizing the potential of your finance team February 14 & 15 San Diego

FP&A Innovation Summit Speakers include:

Save 20% with code

br20

TOP TRENDS IN FINANCE 2017 THIS YEAR HAS, with a few notable exceptions, been a difficult one, and the phrase ‘unprecedented time of uncertainty’ has almost become cliché. As a CFO, your main priority is ensuring the financial stability of your company regardless of market conditions, and the apparent inability of anyone to predict anything has made this a greater challenge than ever before. In 2017, world events are likely to continue to confuse and panic again in equal measure. The Italian banks are at breaking point, the French elections could see one of Europe’s leading powers fall under the control of a far-right party, and article 50 is likely to be triggered, beginning the process of the UK exiting the EU. There are, however, reasons for the CFO to be optimistic about what 2017 holds. Donald Trump, for all his flaws, will likely cut corporation tax significantly, providing a timely boost for business, while technological advancements should also mean that finance leaders are better positioned to cope and drive growth. Rolling Forecasts According to a new survey by consulting firm Kaufman Hall, agility is a top priority for CFOs in 2017, yet many are still struggling to achieve it.

Less than 23% of respondents to the survey said they are very confident about their company’s ability to overcome unforeseen business obstacles, citing outdated FP&A tools and processes as the primary cause. This push for agility will see continuous forecasting take on an even more important role next year. In Kaufman Hall’s survey, 38% of respondents said their company now uses rolling forecasts, up from 33% from the same period a year ago and 25% in 2014 and popularity is likely to increase exponentially next year as companies begin to realize the benefits. A recent survey by Aberdeen Group saw 71% of top-performing organizations who responded say they mitigated against risks related to volatile business conditions by continuously updating forecasts to better reflect current business conditions, and those seeking to emulate them should do the same. Cybersecurity Cybersecurity remains a pressing concern for organizations of all sizes. In 2016 alone, 2.2 million patient records were taken from 21st Century Oncology, 1.5 million Verizon Enterprise Solutions customer records were stolen, and nearly 150 million accounts leaked from

FP&A Innovation Summit in San Diego major email providers including Hotmail, Yahoo, and Gmail. Such is the threat posed by hackers, the past year has seen cyber security increasingly fall under the purview of the CFO. A recent Grant Thornton survey of 912 CFOs found that 38% of respondents identified the CFO as the position most often responsible for cybersecurity, while 44% of finance leaders said they felt the most significant concern for their organization today is cybersecurity and 57% said undetected breaches were what worried them the most. The logic behind giving the CFO oversight of cybersecurity is clear. They control some of the most sensitive and important data found within organizations, spanning revenues, profits, investments, and 34

January 2017

acquisitions. AICPA Vice President of CGMA External Relations, Ash Noah, notes that: ‘The finance function has a unique view into the complexities of the business, as well as an in-depth understanding of the industry, markets and risk climate, yielding important insights for a company’s strategic direction. As the finance function continues to evolve to become more business-centric, it’s critical for finance executives, from the CFO down, to play a driving role in preparing for and addressing potential cyber-risks for the longterm growth of the company.’ IoT The Internet of Things (IoT) has been threatening to explode for a number of years now. Estimates

TOP TRENDS IN FINANCE EVENT 2017

for the number of connected devices on the market range from 20.8 billion by 2020 (Gartner) to 28 billion by 2021 (Ericsson). The central challenge facing CFOs today is measuring and monitoring business performance in a timely fashion to ensure their organization can respond to events in an agile fashion and exploit every opportunity possible without too great an exposure to risk. The IoT will make it significantly easier for CFOs to do this, with data flowing into billing, enterprise resource planning, and accounting systems in real time. This will change the way that forecasting and audits are carried out, providing real-time visibility around transactions and making risks easier to pinpoint - ultimately, leading to better decision-making. Zero-Based Budgeting The last few years have seen a dramatic resurgence in the popularity of zero-based budgeting (ZBB), a budgeting method first popularized in the 1970s under President Jimmy Carter in which budgets are prepared from scratch with a zero-base rather than based on historic data. The number of publicly-traded US companies mentioning the term in their earnings calls increasing from 14 to 90

between 2013 and 2015, and some of the worldâ&#x20AC;&#x2122;s largest organizations have now implemented ZBB - including Unilever, KraftHeinz, Coca-Cola and Mondelez, all of whom have reported significant cost reductions as a result. ZBB is particularly well suited to an uncertain world, and is likely to continue to grow in popularity so long as uncertainty in the business climate continues. According to global management consulting firm McKinsey & Company, a wellimplemented zero-based budget can save large corporations 10-25%, sometimes as early as six months of implementation, and while it is time-consuming, it is likely to remain in trend for the next year at least. The FP&A Innovation Summit is coming to San Diego on February 14 & 15. Over 2 days, 25+ speakers from the likes of Etsy, Dropbox, Samsung & other Fortune 500 companies will take the stage to discuss forecasting, cybersecurity, cash-flow optimization, sensitivity-modelling & more.

Elliott Jay | Global Events Manager | Innovation Enterprise | +1 415 800 4713 | ejay@theiegroup.com

OF COLOCATION

Written by Leila Hawkins Produced by Tom Venturo

I N F O M A R T D ATA C E N T E R S

The rapid growth of outsourcing data storage requirements has fuelled a now burgeoning industry in the USA, with Infomart taking full advantage and offering best-in-class services

ata is big business. Information is arguably one of the most valuable business commodities in the world today. As the internet scales, and volumes of data exponentially rise, cloud computing is now the industry standard for running vital business operations. Instead of developing their own data suites, for many businesses it makes more sense to outsource these services to a data center provider and host applications on the cloud. These colocation centers - aptly named because they host different companies under one roof - perfectly cater to their needs, providing the critical infrastructure necessary to power and cool the IT equipment. In addition, colocation providers distinguish themselves by the availability of abundant ultrafast connectivity security, and best

January 2017

in class operational procedures. In additional to all of these things, Infomart delivers economies of scale, and expertise that are difficult for some companies to achieve. Back in 2000 when the notion of a colocation data center was a faint flicker on the horizon, Infomart Dallas secured its first data center tenant â&#x20AC;&#x201C; a now-prominent retail colocation provider. One of the first colocation providers in the market, Infomart remains a leader to this day, as the Dallas center alone is home to more than 110 technology and telecommunications companies, including several of the top five cloud providers in the U.S. Currently, Infomart has four sites covering key U.S. markets in California, Texas, Oregon and Virginia. Each is very successful - award-winning in fact. Paul Vaccaro is the Senior

TECHNOLOGY

Currently Infomart has four sites covering key U.S. markets in CALIFORNIA,

TEXAS, OREGON AND VIRGINIA – Paul Vaccaro, senior vice president of operations and engineering

Vice President of Operations and Engineering. He oversees the standards of technology and product selection across all the sites, and the entire portfolio of development and construction projects. He is also in charge of managing the operations team along with the contractors hired for each project, who tend to number around 35. As he says himself, “At times it is a daunting responsibility.”

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Paul Vaccaro SVP of Operations & Engineering

Paul Vaccaro is the Senior Vice President of Operations and Engineering for Infomart Data Centers. He is a 30 year IT Professional, and has spent the past 10 years working in the Mission Critical Facilities and Data Center Industry as an Enterprise Operator, and Data Center Engineer. Vaccaro’s previous role was working for Intel Corporation, where he managed Data Center Operation activities around the globe. Vaccaro has co-authored several white papers on important industry topics such as: 1,100 wpsf High Density Data Center Design, High Efficiency Data Center Design and Retrofits Best Practices, Data Center Infrastructure Management Best Practices, and Data Center Site Selection Criteria. Vaccaro supported Intel’s internal customer groups from Silicon Design, Manufacturing, and Enterprise IT on cost and energy efficient requirements, facility design, deployment, and sustaining operations of Intel’s global data centers. He has extensive experience traveling both nationally and internationally, speaking at conferences, and supporting Data Center Best practices engagements for top multi-national corporations.

YOUR MISSION IS CRITICAL. THAT’S ALL WE THINK ABOUT. When your daily challenge is managing data systems, your focus is on maximizing resources and having ready and secure access to your critical data. Vertiv, formerly Emerson Network Power, makes your success possible by delivering infrastructure and management solutions - including the ASCO®, Chloride®, Liebert®, NetSure™ and Trellis™ brands - that are efficient, reliable and economical. It’s how we create value for our customers – by making your critical mission our own. Visit VertivCo.com/datacenter to learn more.

REDEFINING DATA CENTER INFRASTRUCTURE Protecting your critical applications takes more than just great software and equipment. It takes a level of experience that only comes from years of finding solutions when the industry needed them most. Vertiv, formerly the Network Power business of Emerson, brings together the most trusted and experienced names in critical infrastructure. We were first to protect mainframes with precision cooling systems. We were the first to introduce an integrated enclosure system to distributed networks. We helped some of the largest names in the industry bring new capacity online faster and at a lower cost when search and social media required it. And now as IT challenges and demands grow, we continue bringing you innovations to strengthen the most vital applications across your data center. SOFTWARE • Simple asset management • Real-time data center views • Flexible implementation options

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I N F O M A R T D ATA C E N T E R S

John Sheputis President

Sheputis has a proven track record of building successful IT infrastructure firms. Prior to Infomart Data Centers (formerly Fortune Data Centers), John has founded and managed several Silicon Valley ventures, most of which specialized in large-scale infrastructure management and hosting of global applications. From 1999 through 2003, he was COO and Co-Founder of Totality (now a unit of Verizon Business), which helped launch and manage over 100 Internet applications for some of the nation’s most trusted and well respected firms. John also held senior management positions at Solidcore (sold to MacAfee [MFE] in 2009), BeVocal (Sold to Nuance [NUAN] in 2007), Enron, Gemini Consulting, and Accenture. John has a BS in Electrical and Computer Engineering from the University of Texas at Austin, and MBA from Northwestern’s Kellogg School.

After spending over 20 years in management at one of the world’s most recognizable PC companies, Intel, Vaccaro switched to this leadership role at Infomart because he was ready for a change. It was an exciting opportunity for him to jump into the co-location industry, albeit one that matched his skills and experience. “It’s just a great opportunity to learn a new industry, but continue in the path of my first job out of college, which was in a Data Centers,” he says. Strategic landscape Each of the centers is strategically located to make the best use of the surrounding resources. California’s San Jose facility for instance is deep in Silicon Valley, the world’s premier spot for high-tech corporations. Portland’s Hillsboro site is stateof-the-art, and a Direct Access (DA) agreement with the Portland General Electric (PGE) means they can choose their energy suppliers in that market, and that power will be delivered through PGE’s grid. Moreover, a Power Purchase Agreement (PPA) with Noble

January 2017

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Americas Energy Solutions enables in Dallas successfully delivers 21st Infomart to purchase electricity century services in terms of power, sourced from Pacific Northwestcooling and network connectivity based federal power agency despite being modelled on a 19th Bonneville Power Administration century British design - that of the (BPA), which is among the largest original Crystal Palace in Hyde Park, suppliers of hydroelectric built in 1851. It actually power in the U.S. and has the fifth-most boasts one of the connected network lowest carbon of any building footprints in in the U.S. the country. The striking Infomart glass design Ashburn is boasts an located in the impressive 1.7 top data center million square – Paul Vaccaro, market in the feet set over Senior Vice President U.S., a hotbed seven stories, of Operations for cloud and and immediately and Engineering connectivity services, stands out from the and while it may be the other constructions in company’s newest location, it has downtown Dallas. “Everybody tremendously good form. Previously knows Infomart Dallas because of its owned by AOL, it sits in the Dulles architecture, but not a lot of people Technology Corridor’s ‘Data understand it’s actually inspired by Center Alley’, so, unsurprisingly, the Crystal Palace,” Vaccaro adds. it’s one of the most connected properties on the East Coast. Standout Infomart’s flagship data center Competition in the data industry

“Infomart has the edge over its rivals because it has several unique approaches to its business”

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has been fierce in recent years. But Infomart has the edge over its rivals because it has several unique approaches to its business. “It’s our ability to consistently execute and deliver, plus being a very sustainable company,” Vaccaro explains. Sustainability is at the very core of everything Infomart does. Droughts hit California hard every year, and data centers traditionally use substantial amounts of water to cool down their servers. So, Infomart’s San Jose plant uses ‘greywater’ recycled from wastewater. Hillsboro has an award from the Energy Trust of Oregon for their ground-breaking watercooling system and commitment to using renewable energy. Of equal importance is Infomart’s expertise and how closely the team partners with the clients. They have working sessions ahead of each project to make sure they come up with the fastest, most specific solution that’s custom-built start to finish. “It’s very important that Infomart is the advocate and expert on our customers’ business and

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Bruce MacLean CFO

MacLean has over 20 years of experience in the real estate/financial industry. Prior to Infomart Data Centers (Formerly Fortune Data Centers), he was the President of Embarcadero Advisors, a real estate advisory/ brokerage firm focused on tenant representation. Prior to that, he spent eight years at Trammel Crow, including three years as the Controller for Northern California. At Trammel Crow, MacLean participated in the sale of a 19-property portfolio with $170M value for PacBell (now AT&T), performed all Acquisition/ Disposition of properties for Exxon, among many other significant transactions. He has also held various accounting & consulting positions with PWC, Ernst & Young, and Deloitte. He has a BA from UC Berkeley and holds a current California CPA license.

Infomart Portland, Hillsboro, Oregon

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Everybody knows Infomart Dallas because of its architecture, BUT NOT

A LOT OF PEOPLE UNDERSTAND

it’s actually inspired by Crystal Palace

– Paul Vaccaro, senior vice president of operations and engineering

technical requirements,” Vaccaro explains. That way we can work on behalf of our clients with the architects, designers, and equipment

suppliers to deliver state of the art and industry leading efficient offerings. “Infomart has designed data centers that deliver sustainability and agility in response to growing customer needs,” said John Peter (J.P.) Valiulis, Vice President of Vertiv, formerly Emerson Network Power. “Our Liebert brand cooling and power solutions help meet customer SLAs for protection and efficiency while reducing operating costs and enhancing the revenue potential of colocation data centers. “Vertiv systems are redefining the data center infrastructure space. These solutions are intelligent, selfoptimizing and rapidly deployable, and help meet the growing IT challenges and demands of colocation customers,” Valiulis said.

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Aerial Shot Post Constructon

The company has a negligible amount of staff turnover, mostly because there’s a strong focus on developing and promoting its existing talent pool. “People are very excited about the work they see at Infomart and they’re very loyal to that,” Vaccaro says. Last but definitely not least, Infomart presents very good value for its customers. The company has proven cost effectiveness in following a sustainable business model and delivering speedy work, with the savings passed

directly to the customers. This approach has won very large deals with some of the biggest social media companies in the U.S. This was confirmed by an advisory organization in 2012, when the Uptime Institute awarded Infomart Silicon Valley with the Uptime Institutes Management & Operations Stamp of Approval. “It’s very important to have an independent auditor come in and transparently open the books,” Vaccaro says. “It’s a seal of approval that shows the design for our data center is efficient, and

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our resource utilization is under tight operational control.” Future growth It’s exceptional that Infomart has been awarded the Uptime Institute M&O Stamp more times than any other data center - San Jose and Portland, Oregon have gone on to win every year it’s been awarded since the original award in 2012, and Dallas followed this year. It represents a recognition of Infomart’s high standards in energy efficiency, site location, staff and vendor training, and the design of the buildings. Most recently Infomart’s Portland facility along with our anchor tenant at the site, were awarded the Uptime’s Efficient IT award. This is a clear example of the differentiator an effective partnership with the end client, resulted in constructing a world class sustainable facility, and an equally efficient IT Operation. Growth is Infomart’s biggest challenge. As the business attracts more and more high profile customers, expectations for the services the company can deliver will rise too.

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Andrew Gold Chief Counsel & SVP of Corporate Development

Gold has been practicing law at large law firms and in-house at technology and venture capital firms in the US and Europe for almost 20 years. In 2000, he was a founding Board member of iWorld Group, an investment fund focused on mobile applications. From 2007- 2009, Gold served as CEO of Straitshot Communications, a Seattle network services company. He has a JD, magna cum laude, from the Washington College of Law. He earned a BA from Emory University and was a Lecturer in Public Speaking and Director of Debate at Stanford University.

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“You have to scale those things beyond what you would traditionally do as a colocation center,” Vaccaro says. “Things like increasing power densities, new cooling technologies, and new certification requirements from a vast array of differing customer segments.” In the last quarter of 2015 alone, the workforce carried out an impressive 500,000 hours of construction work, with impressive safety record of zero lost hours across all sites. Getting bigger means the workload will increase too, which will pose quite a challenge. “The key is the relationships we have with our designers, contractors, and with our vendors and suppliers,” he says. “It is Infomart’s ability to leverage those relationships to a common set of success criteria.”

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Scott Mitchell SVP of Sales & Marketing

Mitchell serves as the Senior Vice President of Sales and is responsible for Infomart’s National Sales Team, including growth of the data center portfolio and professional services. Mitchell has 25 years of technology and senior leadership experience running veteran high-caliber sales teams for market leading companies such as Verizon, Ericsson, and Rackspace. These experiences have given him specific industry experience and knowledge in telecom networks and systems, IT outsourcing solutions, combined with the managed services provider (internet hosting) category. Mitchell holds a Bachelor of Business Administration (BBA) in Marketing and Finance from The University of Texas at Austin and earned his Masters of Business Administration (MBA) from Baylor University.

MAKING A

MONSTER Jay DiMaggio, Director of Real Estate and Construction at CoreSite, proudly describes the development of the companyâ&#x20AC;&#x2122;s incredible SV7 project and what it means for the industry

Written by Nell Walker Produced by Tom Venturo

CORESITE

oreSite Realty Corporation has enjoyed an incredible rise to national prominence since its conception in 2001. A carrier-neutral data center provider, it operates 19 such centers in eight metropolitan areas across the US, creating a service for over 1000 customers of every size and value. Jay DiMaggio is the Director of Real Estate and Construction at CoreSite, and became involved in the industry because, after training to become an architect, he quickly discovered that – in his own words – he wasn’t cut out for it. “I realized I was a very bad architect,” DiMaggio wryly says. “But I love architecture, and this way, I get to work with really great architects and engineers. I was with the Walt Disney Company for 12 years and wanted a change, then became involved with Carlyle Realty Group West who, in 2009, changed the company’s name to CoreSite. In 2003 we were all of a sudden building data centers! The rest is history and a great history it has been. I’ve been with CoreSite for 15 years, almost

January 2017

from its beginning, but I never had a long-term vision. Carlyle Realty Group West was not really a data center developer or operator back then, but very quickly morphed into a very profitable investment. Today I am still amazed as to how the company began but as I look back the recipe is pretty simple. Take a lot of smart, hardworking and creative people, who care, and success is imminent. “My role has always been on the real estate development side of the business, so I support the projects from inception to completion. I have been involved with all five buildings on the CoreSite Santa Clara campus, with the last one being the SV7 building - which is a monster.” The monster CoreSite’s monster is unique. The SV7 data center in Santa Clara is a large building on a small piece of land, and in DiMaggio’s words, was “very, very difficult to build”. SV7 is a 248,000 square foot building on 118,000 square feet of land, stretching upwards four stories, which

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prompted an exceptionally aggressive construction schedule. The work was finished in an astonishing sevenand-a-half months, but officially the Temporary Certificate of Occupancy – or TCO, the paperwork signed by a building official when all life safety construction items are completed – was awarded at the nine month mark. “There were tremendous challenges in building this large of a building this fast,” DiMaggio says. “Challenges from the city and local jurisdictions as well as the tight constraints on the site. We had over 400 workers onsite for the majority of the project which required a full time shuttle service driving workers to and from an offsite parking lot we rented. Ensuring we had street access and encroachment permits proved to be difficult as well, but the City of Santa Clara and Silicon Valley Power fully supported the SV7 project as they had on the previous four buildings. Ultimately the success of SV7 came down to the CoreSite Leadership and our incredible staff who were fully committed to and supported the project. Also, without question we had the best Project

Jay DiMaggio Director of Real Estate and Construction

“THERE WERE TREMENDOUS CHALLENGES in building this large of a building this fast” – Jay DiMaggio, Director of Real Estate and Construction

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Team I have had the opportunity to work with in my 30 years developing projects. We were fortunate to hire all “A” players on this project otherwise SV7 would not be the success that it is. It turned out that finding the right people was no mean feat. The schedule dictated seven day work weeks, meaning that subcontractors were dedicating entire workforces to CoreSite and there was little-to-no downtime. “For the past 2.5 years, the workforce in the Bay Area has been scarce due to a significant number of large developments all under construction at the same time. We had to bring in skilled labor from all over the US in order to execute the project,” DiMaggio explains. “We had people flying all the way from Maine and Georgia to work on the project. Seriously, we had workers from at least ½ of the 50 United States. Our subcontractors did an amazing job working out the logistics of getting people to our project. Again and again, the Project Team we ended up with enough, including the leadership at CoreSite, which is

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the foundation. At least 70 percent of the company touched this project in some way, shape, or form.” Building up CoreSite made it a point to not build single-storey data centers in Santa Clara, instead challenging itself and maximizing space. As DiMaggio says, building one-storey buildings means losing all the land above the first storey, so SV7 required working with steel companies which specialized in very rigid materials systems fabricated and erected

quickly. The structural steel frame (1,700 pieces) of SV7 was erected in just 14 days, an unprecedented speed for any construction project. “That’s an insane amount of steel to go up; four storeys in that large a building in 14 days, but we had to figure out the quickest and most cost-effective way to do this if we were going to create multi-storey data centers and minimize the schedule.” DiMaggio has partners like these steel manufacturers to thank for the incredible organization required in this type of project. The partnerships

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CORESITE

CONSTRUCTION

needed to be strategic, as CoreSite would be entirely reliant on them all playing an integral part. A large element of this was believing in the vision, which DiMaggio admits was not necessarily forthcoming for all. “We sat down with every partner whilst putting the project together, and discussed what they would deliver within the timeframe and what we could do to shorten the timeframe. Almost all of them stepped away saying ‘there’s absolutely no way this can be done’ – which was exactly the response I expected.

“I told our then-CEO, Tom Ray, I just need to work harder to convince them! So a lot of conference calls turned into a lot of meetings, putting our partners in a room together and saying ‘this is what we need to do, I just need your help to figure out how’. Slowly but surely, everyone bought into the idea. What is even more gratifying is that just a few weeks ago, I got all of them together in a room and asked what they thought of the finished project: they all said ‘we could have done it faster, knowing what we all know now’. No one has designed, engineered and

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constructed a data center building of this size this quickly, and now, we could do it better, cheaper and faster.” Reaping the rewards For all involved, the hard work paid off – but for DiMaggio, it was particularly rewarding to be proven correct that SV7 could be done. He ensured that all of the partners knew how valued they were by CoreSite, and that their dedication, commitment, and tireless input was key to the success

of the project. The majority of the workforce involved in the construction of SV7 had worked with data centers for many years previously, proving that their initial reluctance to get involved was not borne out of inexperience, and makes it even more impressive that each of them left so content with the role they played. “I came out of this saying ‘it will be a long time before I do something like this again’,” says DiMaggio. “That’s not to say I wouldn’t do it, but I wanted

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to get the Teams reaction – which was ‘let’s do another’. The reality is, they are the success of the project. If they say it can be done, it can be done. We’d never built a project with this kind of schedule before; our SV4 building went up in around six months, but the interiors were not fully built out. SV7 was entirely finished in such a short time. It was a tough nine months; it was crazy, but worth it.” Some element of the project’s success can be attributed to DiMaggio’s unwavering resilience that drove him to keep convincing and pushing CoreSite’s partners until they saw SV7’s true potential. Considering almost all of them believed it could not be done, and each of them not only threw themselves into it, but then came away wanting to do it again – and better – DiMaggio’s positivity and influence clearly made a firm and lasting impact. “One of the things I learned many, many years ago was to listen to people,” he explains. “Truly listen to what they’re saying, and don’t try to push them beforehand. When listened to, people become

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invested and ultimately want to make sure that the goal is achieved and everyone is successful. We had a lot of “counselling” sessions over the course of the project – which I needed as much as anyone. I had to walk into a room full of partners with a lot of confidence so that I could say ‘look, I’m here with you shoulder-toshoulder. Tell me what I can do and how I can help’. I wanted to make sure they knew they had my support. “But this isn’t about me,” DiMaggio

is keen to stress, with sincere modesty. “Really, every one of those subcontractors, architects, engineers and CoreSite staff – the job they did was just phenomenal. This is all about SV7 and the people who made it happen. It’s monumental. There’s no other data center like it. At some point there will be, but right now its one-of-a-kind.” For CoreSite, the focus is new development, specifically on the east coast (which is not within

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Taking Excellence Personally

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DiMaggio’s remit). Development is also occurring within the company’s data centers in Los Angeles, and in Silicon Valley it is actively seeking out new opportunities. “Our acquisition folks are extremely busy all over the place. We’ve got our sights set on some big opportunities.” DiMaggio has no qualms referring to SV7 as “the best, most monumental project I’ve had the opportunity to work on”. While he is delighted with every project he has been a part of over the past 30 years, he is most proud of this one because it required so much planning, preparation, and innovation, and then went so incredibly

well, leaving partners, customers, and CoreSite itself equally satisfied. “It is incredibly humbling, hearing our partners say they’d love to do this again,” DiMaggio concludes with a smile in his voice. “CoreSite’s a great company with an even greater culture. It really is. The culture, the leadership, and the people – it’s a wonderful company to work for and people I have been fortunate to work with. I wouldn’t have stuck around for 15 years – half of my career – if it wasn’t. I planned to come in and work here for one or two years, but I have no regrets. It’s been an amazing opportunity.”

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At the

FOREFRONT ENGINEERING OF INNOVATIVE

Written by Nell Walker Produced by Tom Venturo

PAY N E C R E S T E L E C T R I C , I N C .

Vice President Operations of PayneCrest, Cory Borchardt, describes the unique mark the company has made on the electrical contractor industry

ayneCrest maintains a vision to be the most trusted electrical contractor, the top choice for complex and high-risk projects, and to be recognized for its excellent levels of customer satisfaction. The company prides itself on an interwoven combination of profitable growth, passionate employees, a labor-centric strategy, and customer-focused ethos. Cory Borchardt is a new addition to PayneCrest, having taken up the mantle of Vice President of Operations in September 2016. He has a solid 15 years of experience in the sector behind him, from industry and utility electrical contracting to large EPC powerhouse and manufacturing projects. In his latest role,

January 2017

Borchardt oversees large travelling projects all over the US, which currently are predominantly in the power and automotive sectors. So how does PayneCrest manage its supply chain for these large, widespread projects? “We’re somewhat unique in that realm,” says Borchardt. “We’re really focused on prefabrication, engineering support, and partnering with clients. When we have a large project in a remote location, we go out and try to partner with a supplier that has a large footprint – or a smaller footprint within a specific geography – who can support the transportation of supplies to our facilities even at the last minute, and keep us on a competitive landscape. We use in-house

CONSTRUCTION

“The level of engineering support we have really makes us the best choice for a large general contractor” – Cory Borchardt, Vice President Operations

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trucking and third parties if we need to, and if you talked to our suppliers, they would consider themselves our partners. “We like to have conversations early on to work out where we all see the project going, what we expect from the partner, what type of timetables we’ll need, and maintenance of budget. What can we do to improve the process? Are there any material opportunities we can utilize? Everyone brings something different to the table.”

January 2017

PayneCrest is a union contractor with a somewhat transient workforce, but the workforce is always the company’s responsibility. It offers safety training on-site, and boasts some impressive statistics. The safety page of PayneCrest’s website displays real-time updates showing the number of days passed without an injury, the below industry average for lost time injury rate, and safety awards, among other figures. The

CONSTRUCTION

company is a member of various don’t accept mediocrity when it safety organizations, including comes to supervision. If you don’t ISNetworld, Avetta, and First perform, we coach at first to try Verify, and PayneCrest’s record is to get you where you need to be, particularly impressive considering but long-term performance is a the high-risk projects it undertakes. necessity to be part of our team.” “I think a lot of our success Part of PayneCrest’s staffing in safety comes from strategy is to empower both our senior and each employee field management,” to allow them to Borchardt explains. advance. According “One thing we to Borchardt, take a lot of pride “we really rely in is using the on the project Number of employees highest quality managers and at PayneCrest foremen that are field staff to control Electric, Inc. able to not only teach their own destiny,” that safety message, but and as such, the company lead by example and set the doesn’t micromanage day-to-day safety expectation. We really operations. Instead, it trusts hold a high standard for our field its contract workers to work at supervision and I think most of the a consistently high quality and guys that are with us long-term exercise their own entrepreneurial wear that as a badge of honor. We spirit in executing all tasks.

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“Our engineering and pre construction team is hands-down the most advanced and sophisticated” – Cory Borchardt, Vice President Operations w w w. p a y n e c re s t . c o m

PAY N E C R E S T E L E C T R I C , I N C .

www.ckpower.com

them and work to achieve it. It talks about how we partner with labor and are respectful, open, and honest about conditions on a job. You really see, if you talk to PayneCrest customers, that they see us as part of the solution on a project because of the way our people operate. Other contractors come to our engineering staff to Critical power applications are part of every industry; protecting them starts with reliable KOHLER generators from CK Power. get answers because they become From small-load residential and business to heavy industry, every KOHLER generator is engineered to provide maximum a hub of information on the job. power, performance, flexibility and fuel efficiency. “Even when it’s not in our OU AN EPEND N scope to install, we try to help where we can; our customers see that and trusts us as a partner. Your complete source of engine and generator power. When all is said and done, and when our customer comes back CNR_CKpwr_NewKohlerAd.indd 1 1/22/15 12:00 PM An important aspect of the job for to us and says ‘thank you’ and field staff and project managers is wants to talk to us about the customer satisfaction, something next thing they’re doing, that’s PayneCrest is especially proud of definitely the most rewarding having an excellent reputation for. part of the business for us.” “We strive for repeat business, PayneCrest, like many other and we have a strategy called electrical contractors of its The PayneCrest Way, which really size, has a responsibility to highlights what our core values are keep ahead of the curve when it to our customers,” says Borchardt. comes to technology. Its team of “We share that information with professional engineers and CAD

Reliable Power.

January 2017

CONSTRUCTION

“Other contractors come to our engineering staff to get answers because they become a hub of information on the job” – Cory Borchardt, Vice President Operations

staff is constantly undergoing further education, something which has led to the company being at the forefront of building information management (BIM) use. “On large commercial projects, general contractors are using BIM, and we’re part of the coordination that goes with that,” explains Borchardt. “We make sure everything fits in the right place, and we take it a step further by modelling an electrical room, prefabricating the supports and

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PAY N E C R E S T E L E C T R I C , I N C .

layout of the conduits, verifying that everything is going to fit properly, and then prefabricating the entire thing with a BIM 3D picture of how it will look when it’s done. This can be a great laborsaving opportunity, reducing congestion on a job, and placing the safety issue into the prefab facility where we can control it. When we get into a big job where we can be effective on pre-construction, the level of engineering support we have really makes us the best choice for a large general contractor.” Included in PayneCrest’s plan for the future is to continue to grow in the electrical power construction market, with a focus on solar and gas power construction to bring prefabrication, spooling, and engineering

January 2017

expertise to new projects. “You don’t see a lot of prefabrication in a power house, because of the nature of the fasttrack EPC projects,” Borchardt concludes. “It becomes difficult but I really think that PayneCrest’s expertise lends itself nicely to that industry. We’re one of the largest contractors here in St. Louis, and we’re all very similar in the work we do, but the thing to emphasize here is that our engineering and pre-construction team is handsdown the most advanced and sophisticated. When you look at the nationwide footprint of contractors that are doing the big power and automotive jobs, you’re going to see PayneCrest right at the top of that list of expertise, customer satisfaction, and repeat business.”

CONSTRUCTION

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Building

success

Business Review USA speaks to Derek Krider, Group Manager at DavisReed â&#x20AC;&#x201C; the construction company tasked with revamping the Waterfront Beach Resort at Huntington Beach, California Written by Nye Longman Produced by Tom Venturo

DAVISREED CONSTRUCTION

s Group Manager at DavisReed, Derek Krider is overseeing a major expansion of the iconic Waterfront Beach Resort at Huntington Beach, California, and is doing so using the latest technology, bringing together talents of all ages and stages of development. Furthermore, the company is leveraging innovations in construction methods and supply chain management to deliver the project on time and on budget.

lawns, new restaurants, a pool bar, and even a roof top lounge. Additionally, the existing hotel is being renovated. This work includes revamping the lobby and Porte Cochere, adding a new spa, refurbishing back of house spaces, and reforming the restaurant and sundries store. A completely new bar and restaurant space will also be added, and the swimming pool and surrounding patios will also be completely renovated. The gross area for expansion will stand The Waterfront at 307,230 square – Derek Krider, Group Manager Beach feet with all phases Resort Project of construction completed DavisReed’s remit is to add 152 by the start of 2018. new hotel rooms to the existing 290 “This is a GMP project where we guestroom hotel, of which 106 will have taken a collaborative, open-book be suites. Furthermore, the whole approach with the owner,” Krider complex will be renewed through explains. “The on-site ownership a number of tasteful additions, team is extremely knowledgeable and including ballrooms, meeting construction savvy. Their expertise spaces, pre-function areas, a new and understanding has contributed to swimming pool, outdoor function a fully synergistic environment where

“Frankly, after you ensure the skill and expertise is there, it’s all about chemistry”

January 2017

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Derek Krider Group Manager/Sr. Project Manager

Derek Krider has been with DavisReed and brings over 30 years of construction industry experience to his role, having worked on many large projects, amounting to billions of dollars. He holds an MBA from the University of South Carolina, as well as a BSc in Science and Construction Management from California Polytechnic State University. Krider prides himself for his proficiency at maximizing revenues while minimizing costs, increasing profits and market share while simultaneously improving employee engagement and satisfaction.

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DAVISREED CONSTRUCTION

efforts and energies are focused on problem resolution rather than traditional owner/contractor roles. “This collaborative effort has been expanded to include the design team and we truly have a once in a lifetime team working together to construct a successful project.” Skills for the job Alongside his role as Group Manager, Krider is also Senior Project Manager. These dual responsibilities require him to assist with preparing the GMP budget, validating the construction schedule, assembling project teams and, ultimately, executing the work. Hiring the best personnel with adequate experience to execute a large project of this magnitude has been crucial. “Frankly, after you ensure the skill and expertise is there, it’s all about chemistry,” he says. “Retaining personnel is always a challenge. I believe the only way you can retain them is by increasing employee engagement. “I subscribe to the philosophy that ‘you have to love them to lead

January 2017

them’. This requires that we step past traditional employer-employee relationship and take a personal interest in the employee’s wellbeing.” The landscape in the construction sector is changing, and no more so than personnel management. For Krider, increasing millennial involvement (and the subsequent decrease in baby boomer participation) requires adaptation. He says: “If you can invest in an employee in such a way that they feel like they are an integral part of value creation, then you increase employee engagement and increase the chance to retain this asset. This can be accomplished by allowing flex-time, working from home (when practical), mentoring on both a work and personal level, and simply showing a genuine interest in what is important to your employees.” DavisReed encourages training for anything that will add value to the employee/employer relationship, Krider explains. This includes training for Primavera and Sure Trak scheduling software, as well as safety training covering first aid,

CONSTRUCTION

West Progress

SW Progress

Post - Tensioning

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DAVISREED CONSTRUCTION

Paul Nelsen Sr. Superintendent

Paul Nelson has been active in the construction industry for over 40 years as both a superintendent and owner. Nelsen has built numerous project types of varying degrees of sophistication including tilt-ups, wastewater treatment plants, parking garages, three hotel towers, a high-rise condo tower, a highrise office building, and medical tenant improvements, amongst others. Nelsen holds a number of certifications, ranging from first aid and OSHA 30, to primavera and prolog.

January 2017

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OSHA 30-hour certification, and in-house ‘Lessons Learned’ training. Krider adds that, while the workplace is adapting to cater to the needs of a younger workforce, Millennials must take advantage of the opportunity to interface with some of the old-school builders who will soon be retired and out of the workforce. “If you can create an environment that bridges this multi-generational gap, everyone wins,” he says. Continuous improvement Krider recognizes that younger workers are on the pulse of the latest developments in technology and he is using this knowledge to drive organizational change. He says: “Being willing to listen to their suggestions and being openminded to implement change, fosters an environment conducive to continuous improvement. “From a generational perspective, the willingness for the Baby Boomers and Gen-Xers to be open to the technological advances that Millennials bring to the table is paramount. Simultaneously,

Millennials learn traditional face to face communication methods.” DavisReed has deployed a file sharing and collaboration platform (Box) that allows for real time updating and interface with project teams. This platform allows files to be updated and shared; information can also be shared between subcontractors, designers and owner’s personnel efficiently. “The program ensures everyone has access to the most current documents and can be accessed remotely by anyone that has been given access,” Krider says. “This allows for us to manage our supply chain more efficiently. “We are using Level 300 BIM modelling for clash detection and MEP/Structural coordination. We are utilizing design-build methods with the auger pressure grouted piles, MEPF trades, steel stairs and aquatics. We also took on pile cap design under our scope.” Leveraging the construction supply chain was something Krider and his team were keen to do at the very beginning of the project. “By being in a position to selectively pre-qualify subcontractors and vendors that can

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DAVISREED CONSTRUCTION

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CONSTRUCTION

deliver the best product in the most effective manner,” Krider adds. “Utilizing cloud-based technology for file sharing increases value by minimizing approval durations and release of procurement. Utilizing design-build methods with the major MEPF and aquatics trades allows for increased coordination and expedited procurement of long-lead materials.” Overcoming challenges “The footprint of the new expansion takes up the majority of the 3.5 acre site,” Krider explains – delivering the project in spite of local limitations is a key challenge for DavisReed, but the company is overcoming this. “The west side of the project houses the existing 290 room guestroom tower; the south side of the site is bounded by the major 4 lane thoroughfare of Pacific Coast Highway. We have been able to utilize part of the public streets at the east and north for trailer parking, pedestrian traffic, product delivery and fire lane access.

“The site is very tight and requires significant coordination with delivery and offloading of materials. Concrete placement and material deliveries require a wellorchestrated process where trucks are temporarily staged offsite until they are ready to be offloaded. “One of the most noteworthy challenges is the work hours are limited to Monday through Friday, 8:00am until 6:00pm (5:00pm during winter months where daylight is limited). This constraint limits our ability to work overtime or make up for time lost due to weather and/or material delays.” Having leveraged all the assets at its disposal, DavisReed is delivering the Waterfront Beach Resort project in line with its own high standards and with those of the owner. Combining both old and new knowledge from its workforce, and by taking advantage of technological and supply chain innovations, the company is on course to showcase the best of its abilities.

w w w. d a v i s re e d i n c . c o m

FATHERS of Invention

How one medical company finds its inspiration from within Written by Hazel Davis Produced by Tom Venturo

H E A LT H C A R E

nnovation is very important to medical reference laboratory PAML; so much so that it created a division dedicated to its pursuit. Dr Francisco R. VelĂĄzquez, President

and CEO, says, â&#x20AC;&#x153;Their job is to go around the organization and look for opportunities to improve our quality, our service, and our costs, with the caveat that everything they do must w w w. p a m l . c o m

PA M L

have, at the end of the day, some lead each of these ventures, as financial impact.” They call this team well as the primary PAML brand the Performance Solutions Group. and two PAML product lines. The Washington company, With the responsibility of 11 which was founded in 1957, serves entities, no two days look the same physicians, hospitals, members of for Dr Velázquez. He says, “I do the community, employers, move around a lot and I like and other allied health to go spend time in our professionals. It is various facilities and ranked among with our various the top clinical partners.” The reference company’s laboratories partners in the country are varied and is and range considered an from testing industry leader partnerships in joint venture – Dr Francisco Velázquez, (such as a partnerships President & CEO health system in with communityMontana) to high-level, based hospitals. Its nationwide joint ventures. laboratory outreach program These ventures have been partners with hospitals allowing them to significantly grow their developed and continue to develop, laboratory outreach businesses. Dr Velázquez says, “On the basis of PAML has eight joint ventures, our philosophy; that healthcare is local each a freestanding LLC based on and our goal should be to enhance the a community partnership model. Dr ability of local providers to provide the Velázquez and his team of executives broadest possible service level they

We always know how we’re doing with pretty much anything at any given time with the appropriate report or report structure

January 2017

H E A LT H C A R E

can.” Partnerships have to be mutually beneficial and involve providing better services to the communities they are in, he adds, or they will find other avenues to do business. PAML’s strategic partnerships include one with the molecular technology company, Axela, a spin-out of the University of Toronto. “They have a very unique technology that we see as beneficial for our partners, so we partner with them and help develop assays that can be used in the American market,” says Dr Velázquez. Partnerships account for many advances, though PAML also prides itself on its ability to produce innovative resources in-house. One of these resources is a new, progressive cost-accounting system. “We’re going to see more bundle payments, more population health management, more regionally integrated networks and more valuebased care,” says Dr Velázquez. “So, the common denominator to all those is not revenue. The common denominator is that you must understand your cost structure,

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Francisco Velázquez President & CEO

Francisco R. Velázquez, M.D., S.M. is the President and Chief Executive Officer for PAML, LLC and PAML Ventures. Prior to joining PAML, Dr. Velázquez was Managing Director for the Quest Diagnostics Nichols Institute, and Vice President for Focus Diagnostics, in San Juan Capistrano and Cypress, California respectively. Dr. Velázquez trained at the Mallory Institute of Pathology in Boston, the Boston University Medical Center and is Board Certified by the American Board of Pathology. Subsequent to his training, Dr. Velázquez obtained a Masters in Health Care Management and Policy at Harvard University School of Public Health, Boston, Massachusetts.

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H E A LT H C A R E

very, very, very, very well so you can make informed decisions as to which one of these market models you can participate in and what the advantages and disadvantages are, from a financial perspective. In order to do that you have to have real-time access to the ways your costs are changing throughout the day. “What most laboratory companies do is they react on a monthly or weekly or quarterly basis to what happened. To what already happened. We believe it’s more important to react while it’s happening so we can correct it or change course,” says Dr Velázquez. So, the business performance division at PAML has engineered a system that keeps track

of metrics, on a real-time basis, “So we always know how we’re doing, with pretty much anything, at any given time, with the appropriate report or report structure.” PAML’s role in the economic development of the region, specifically in the area of life sciences, is something very important to the company. To that end, Dr Velázquez is in a number of leadership groups looking at medical education, healthcare, and healthcare-related technology. One of the projects he’s currently working on is the new medical school in the area. This, along with other projects, generates dialogue and development throughout the

PAML’s General Administration Offices, located in Spokane, WA

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“WE ALWAYS KNOW how we’re

doing with pretty much anything at any given time with the appropriate report or report structure” – Francisco Velázquez, President & CEO

community and company. Opening lines of communication is critical to Dr Velázquez and he makes a point of regularly spending time with the company’s clients, partners, and employees. “I tend to walk around whenever possible and just ask people how are they doing and what’s going on and what can we be doing better or different,” he says, though he agrees this isn’t the norm in a lot of organizations. “My theory, without any analytics behind it, is that employees have about 65 percent of the answers to all the questions we are asking, if we just take the time to ask.” He meets his partners in their offices because, it’s “more productive to do it that way and it allows them to

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be in their own environment.” He also says he enjoys knocking on doors for a quick chat, as you can learn quite a lot about the person and the business, “as long as they are free to talk, that is.” PAML spends a lot of time asking employees what they think could be improved. According to Dr Velázquez, “We’re always looking at our operation with the question of how can we do better. Once we are 100 percent confident that it is replicable, then we’ll go more public with it.” He talks of a man who “started at PAML in logistics, a fireman paramedic by training. But he is someone who had this inquisitive mind and a very well-defined analytical skill. He helped us develop

PAML

H E A LT H C A R E

Lab Equipment

5 1. PAML uses state of the art equipment to process millions of specimens every year 2. Cutting edge laboratory technology allows PAML to remain a leader in the industry. 3. Specimens from across the country make their way to PAML for processing. 4. One of many pieces of equipment used to process client samples. 5. Significant patient diagnosisâ&#x20AC;&#x2122; come from blood tests, like those processed at PAMLâ&#x20AC;&#x2122;s National Reference Laboratory in Spokane, WA. w w w. p a m l . c o m

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H E A LT H C A R E

a superb logistical system. I was impressed with the fact he was very serious so we decided to let him loose and see what happened… He’s now the Chief Performance Improvement Officer,” leading the business performance division. The general philosophy at PAML is that everyone has something to offer. Says Dr. Velázquez, “Sometimes little changes can have positive impacts.”

PAML, YEAR FOUNDED

1957

1,753

Number of employees at PAML

PAML YEARLY REVENUE

$250+ MILLION

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Creating inspiring products in the automotive industry Written by Catherine Rowell Produced by Andy Turner

Ken Morgel, Director of Purchasing and Supply Chain at BraunAbility, discusses how the company is continually ensuring accessibility within the automotive industry

BRAUNABILITY

ince its inception in 1973, BraunAbility (formerly known as The Braun Corporation) has produced innovative, highquality products in the wheelchair accessible vehicle and lift markets, allowing customers to retain their independence. Its products include personal use vehicles, as well as wheelchair lifts found in mass transit vehicles, such as buses, taxis and more. “We are expanding our production capabilities to meet the volume and all the things associated with that, from facility changes to manpower, acquiring skillsets we haven’t had, but are now required. It has been a crazy pace for growth,” comments Ken Morgel, Director of Purchasing and Supply Chain at BraunAbility. The company has thrived during several significant stages of growth. The invention of the lowered floor minivan secured its position within the automotive industry. Then the Americans with Disabilities Act of 1990 opened up brand-new markets by etching accessibility into the law. Now, today’s customers

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increasingly demand independence, seeking to maintain their quality of life, accessibility and mobility. The company’s Indiana location is ideal, drawing on southeastern Michigan, Chicago, northern Indiana and Ohio, where numerous automotive plants are also situated. “We are actually able to leverage off a lot of other manufacturing that’s going on in this area and obtain highquality parts on time,” states Morgel. “We share many suppliers with both Original Equipment Manufacturers (OEMs) and the RV industry.” Until six years ago, BraunAbility’s supply chain remained relatively

“We can stratify our suppliers by spend and/ or by part within that supplier” – Ken Morgel, Director, Purchasing & Supply Chain, BraunAbility

S U P P LY C H A I N

Ken Morgel Director, Purchasing & Supply Chain, BraunAbility

I have over twenty years of experience in Supply Chain. The first part of my career was spent at FCA Chrysler and the last six years at BraunAbility. I love the variety of challenges the Supply Chain field presents and feel very fulfilled by the people I work with and customers I serve at BraunAbility. When not at work I like spending time with my wife, Tiffanie, and my five kids, Calvin, Owen, Ethan, Ivy and Nina.

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BRAUNABILITY

unchanged, with all suppliers located within 200 miles of the company’s manufacturing area. Morgel says, “A lot of that was because this company was founded on quality. If we could not make it or manufacture it here locally, we wanted to buy it from someone locally so we could always control the quality of the product.” Since joining BraunAbility, Morgel has remained loyal to the suppliers he inherited, with around 80 core suppliers. However, he’s recruited more, including within the RV

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market, to provide new innovative products and solutions for new technologies. Morgel explains, “I adapted the supply base to fit better with our low-volume, high-mix environment. We partnered up with the right folks who can continue to add value as far as technology and innovation. We also look to partners who keep us cost competitive while ensuring quality stays high.” Continuing with core suppliers has enabled the company to throw things out to bid and drive lower costs. But BraunAbility understands that keeping track of quality, deliveries and other metrics is paramount. “We have a

Year founded

1973

S U P P LY C H A I N

score carding system to make sure that those who are performing well get a shot at more business versus those that are maybe under-performing, who are then maybe left out of the next quote process,â&#x20AC;? reflects Morgel. Similar to many automotive companies, BraunAbility has turned to scan data. This lets BraunAbility share information with suppliers who can then modify vehicles and reduce manufacturing time. For example, companies previously built fiberglass molds for any interior plastic component within a particular vehicle. But 3D models can now be fashioned into a tool, which

Yearly revenue

$100 MN USD

can then be turned into a plastic component and fitted. In addition to such time-reducing, cost effective and forward engineering solutions, the company is designing virtually before constructing hard parts, enabling more competitive bidding. Through close partnerships with Chrysler, Honda and Toyota, BraunAbility is able to convert each of their minivan models, and it recently converted the Ford Explorer, offering the first SUV to enter the mobility market. In addition, the company is Nissanâ&#x20AC;&#x2122;s mobility partner in the New York City taxi market. Conversions on each model are built on site, allowing

750

Number of employees at BraunAbility

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BRAUNABILITY

“People want a specific color and specific content – we want to offer that same menu to mobility clients, but keep affordability in mind” – Ken Morgel, Director, Purchasing & Supply Chain, BraunAbility

customers to have a selection of finished products to choose from, Morgel explains: “We’re made aware of significant changes throughout the year to these companies’ vehicles in their own production facility so that we can understand what we have to do from a conversion standpoint if that then affects us.” Through increased information sharing, OEMs have increased sales by working alongside a premier mobility conversion company such as BraunAbility. However, BraunAbility’s high-mix, low-volume environment is the

S U P P LY C H A I N

“We have a score carding system to make sure that those who are performing well get a shot at more business versus those that are maybe under-performing” – Ken Morgel, Director, Purchasing & Supply Chain, BraunAbility

complete opposite of an OEM’s, and that has presented several challenges. Morgel explains: “When you have low volume and a high mix, as a purchasing organization this makes affordability difficult because you don’t have that leverage with volume. And secondly, it makes it hard to predict and forecast need beyond a certain short timeframe, which is again opposite of an OEM.” OEMs produce blanket orders and commit to high volumes so they can ensure the best prices from supply bases. For BraunAbility on

the other hand, this is not possible. Yet the company has slowly begun to move away from ‘spot-buy’ purchasing and move toward more strategic procurement services supported by a new ERP system. This embedded system increases visibility. “We can stratify our suppliers by spend and/or by part within that supplier, whereas before we had a system that required a little more data handling through spreadsheets,” says Morgel. “Now we have ready-made reporting and dashboards so we can do analysis

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S U P P LY C H A I N

right away on not only supplier spend but delivery performance, quality metrics like parts per million – all of these titbits that are great for supplier negotiation and new business.” The industry continues to grow, along with the demand for innovation, forward thinking and a key focus on affordability in the mobility sector. “Many of our customers are looking for something different than a minivan, something more spacious,” says Morgel. “Many wheelchairs are

getting larger, so more space is a necessity.” Equipment will also need to become increasingly adaptable and BraunAbility stays ready with products that can be up-fitted. “We want to make sure we have the selection available that people would desire just like anybody would if they go to a car lot,” Morgel says. “They want a specific color and specific content – we want to offer that same menu to mobility clients, but still keep affordability in mind.”

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The City of Mississauga: a connected and engaged workplace Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Vince Kielty

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Many cities round the world aspire to be called ‘smart’: very few have adopted enabling technology as well or as thoroughly as Mississauga

hat might be the first impression of an unprepared visitor flying into Pearson International Airport, Canada’s busiest, then proceeding into the City of Mississauga where it is located? It is a good introduction to Canada, displaying many of the features people associate with that huge country. Our visitor will

quickly find that this is no mere suburb of nearby Toronto, but a vibrant selfcontained community, spread out over 111 square miles and generous open spaces – it has more than 480 parks and 23 major trail systems including part of a 485 mile waterfront trail running from Niagara-on-the-Lake to the Quebec border. Mississauga is also an aquatic and maritime city, with a port, marinas and more than eight miles of frontage onto Lake Ontario. As likely as not, the visitor may be coming on business. The City

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is within a few hours’ drive of North America’s richest markets in Canada and the USA with access to 164 million consumers. With close to 55,000 registered businesses employing more than 425,000 people, Mississauga is home to 61 Fortune 500 Canadian or major divisional head offices and 50

Fortune Global 500 Canadian headquarters. That didn’t happen by accident. As an entity Mississauga is relatively new having been founded in 1974. It’s had the advantage of growing up with the advent and growing capability of technology, an advantage it has seized with both hands, explains the city’s Director of Information Technology and Chief Information Officer (CIO) Shawn Slack. Slack has been in various leadership roles for the last 18 years including CIO for the last four years. The City of Mississauga became one of the first in the world to install fibre infrastructure in the late 1990’s to its buildings and facilities. Back then it was a bold move to abandon the traditional telco provider model in favour of VOIP communications delivered over a fibre network, but it happened fortuitously when the City couldn’t get any of the telecoms companies to provide a service

“We found that we could make significant savings, many of them in ways we did not anticipate” – Shawn Slack, Director Information Technology and CIO

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to one municipal building. There was no choice but to install fibre. “That worked, so we built out a little bit more fibre, and quickly saw we could build a complete network.” Other adjacent municipalities came in to share the cost and today the fibre network, a registered not for profit telecommunications provider, exceeding over 40,000 strand kilometres of fibre; enough to circle the planet. The early wins were succeeded by many more as technology developed. “We found that we could make significant savings, many of them in ways we did not anticipate.” The reduced spend on leasing lines and other telecom infrastructure costs was immediate, and with a single network to carry both came other benefits. “There was only one network to manage for voice and data to our buildings and key amenities. The City of Mississauga network is comprised of Wired and Wireless networks supporte by cellular primarily for the City’s fleet of vehicles. We no longer had to rely on commercially available telecom to

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Shawn Slack Director Information Technology and CIO

Shawn Slack is the Director of Information Technology and Chief Information Officer for the City of Mississauga. Early in his career with the City of Mississauga, he led the vision and plan to provide all City services online. He also oversaw the implementation of the City’s first Customer Service Strategy which transformed customer service across all channels including internet, phone and counters as well as the implementation of 311. Currently, Slack is engaged in many great initiatives and projects guided by a new IT Master Plan endorsed by Council in 2015 which focusses on Fostering Open and Accessible Government,Enabling Decisions through Research & Analytics, Creating a Connected & Engaged Workplace and Improving Services through Innovation & Partnerships.

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grow our network and benefited from over all lower costs of our wide area network.” There was also a big payoff in improved business continuity, he adds, since dual homing or routing gave the assurance of redundancy in the event of a fibre break. By taking this step Mississauga laid the foundations of what we now call a Smart City, positioning Mississauga as a leader in the use of technology and a reputation that can attract businesses trying to choose where to locate their operations. “We have the airport and are close to also major

highways. Government can be an enabler – or a barrier. Our strategic plan for the city has laid this out very clearly. Business leaders who come to the Mayor’s office or our Economic Development Office soon learn that this is an enabling place to establish a business. If you have a reputation as a technologically sophisticated location, that draws people in.” Mississauga was very far ahead, a pioneer among Smart Cities. Today the buzz is all around the concept: from Masdar City on a greenfield site at Abu Dhabi to ‘retrofitted’ cities

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Inspiring Possibilities

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like Milton Keynes in the UK, or the from a technology perspective, 100 cities identified by India for ICT what are the best practices being upgrading, there is competition to used now, then tell us what might define and achieve best practice. work for the public sector.” However Mississauga has not rested This was a new approach, and the on its early laurels – Slack thrives on major technology companies that were learning from other leaders and great approached were enthusiastic. These Smart City initiatives so that the best included Apple, SAP, Bell Canada, of this can be considered for adoption Cisco Systems, LinkedIn, Google, to enable City Services. Microsoft, OnX and “We don’t want to be others. The partners known simply as a really got engaged, Smart City but rather a sending their people great City with a great to ride in a Fire Truck vision that enables or visit the Libraries a connected and and Parks, yielding engaged community, a number of mini a Smart City.” – Shawn Slack, projects to leverage The IT Master Director Information Technology technology in small Plan approved and CIO effective ways without in October 2015 much investment. has an overall vision of creating a Cisco for example became deeply connected community. However involved in a plan to roll out district it avoided over specification. “We WiFi. “Mississauga is made up of had a high level of engagement many smaller districts linked by a both with the stakeholders and the corridor where small businesses vendor community,” says Slack. “We and tourism have collected. We are reached out to the vendor community undertaking plans in that corridor to and spent time with them to find build a WiFi district throughout it. It out what they think the future holds will include free public WiFi and at the

“A big part of our IT strategy was to be shovel ready for big funding announcements”

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same time create a digital presence for small businesses, on which they can advertise, with our City Services promoted on that same platform.” Cisco, its implementation partner OnX and the City will work together like a three-legged stool to deploy sensor technology throughout Mississauga. Tim Schnare, OnX’s CTO and VP of Strategy for Canada has been working with the City for nearly as long as Slack, providing best in class solutions with the experience, expertise and infrastructure required to support a Smart City.

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“Our focus is to drive relevance and transformational service based on a ‘smart and connected’ framework founded on connecting previously unconnected things, and that in turn improves the way government delivers its services,” he says. “We bring technology in, for example integrating the free public wireless network that’s planned for all the major corridors’ in the city with display boards at key points, and linking sensors to monitor traffic

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flow, parking, air quality, temperature, and footfall.” Cisco has been at the forefront of recognising the value of digital transformation and the benefits that technology can deliver to city operations and citizen engagement, adds Brian Donlan, Cisco Canada’s regional VP of sales. “In working with OnX and the City of Mississauga we have deployed technologies such as public WiFi and mobility that give Mississauga’s small businesses innovative opportunities to drive new revenue and have new

customer insight. Our partnership is also delivering new digital services to citizens that deliver efficiency, productivity and transparency.” The Internet of Things (IoT) is about connecting things, City Services and engaging the public with technology at the heart of it. Slack believes in leadership first, then technology enablers and is fortunate to have a Mayor and City Manager who are great leaders and understand the role of technology. “A big part of our IT strategy was to be shovel-ready for funding announcements that could be

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Business leaders who come to the Mayor’s office or our Economic Development Office SOON

LEARN THAT THIS IS AN ENABLING PLACE TO ESTABLISH A BUSINESS – Shawn Slack, Director Information Technology and CIO

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applied focusing on outcomes such as customer service and efficiencies recognizing that technology was the key enabler. When the last funding announcement came out we put forward a proposal to create ‘i-parks’, and put WiFi and sensors in our parks to measure participation, foot traffic and usage patterns.” Now it will be possible, for example, to know when to empty garbage bins only when they are getting full, or to pick up litter based on park utilisation. There are countless other examples – Mississauga already has sensors at key intersections to detect traffic flows and any abnormalities. These sensors may soon be able to detect the presence of an emergency vehicle and automatically phase traffic lights to let it through. Innovation in sensor technology is happening all the time – but it is the ability to connect them effectively over wireless and fibre networks that make a truly Smart City. Shawn Slack has seen his role change as radically as the tools available to him. It’s fair to say that Mississauga never really treated IT as a back office utility, however today

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he sits with the Mayor and Council, bringing the voice of technology to strategy making. Now each department like Libraries, Transit, Fire, the Culture Division or Planning, has its own technology road map, enabling management in the

process of identifying the opportunities before them and how these feed into their investment plan and budgets.

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