PROFILE
APASSIONATESPIRIT CEO of Duncan Taylor Scotch Whisky Ltd, Moji Shand
June 2017
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EDITOR’S COMMENT
HI THERE, and
WELCOME to June’s edition of
Business Review USA. THIS MONTH, WE have an eclectic selection of themes to open the magazine with. Moji Shand, CEO of Duncan Taylor Scotch Whisky Ltd., tells us about her extraordinary journey from a practising attorney to developing a passion for whisky and throwing herself into the industry. Also included is a discussion with Larry Augustin, CEO of SugarCRM, who talks about how his company has simplified the concept of customer relationship management, and
how it is impacting the industry. As the best travel weather is setting in, and with people more inclined towards staycations, June’s list is the top 10 places to visit in America. On top of this, we have in-depth and information-packed profiles on GE Healthcare, JLL, Corbins Electric, Toshiba America Business Solutions, and many more. Enjoy the magazine, and join the conversation on Twitter: @BizReviewUSA / @NellWalkerMG
Nell Walker Editor nell.walker@bizclikmedia.com 3
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PROFILE
A PASSIONATE
Spirit CEO of Duncan Taylor Scotch Whisky Ltd, Moji Shand, tells Business Review USA about her extraordinary journey from law in LA to spirits in Scotland Wr i t t e n by : N E LL WA LK E R
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PROFILE
Euan Shand
Chairman of Duncan Taylor Scotch Whisky Ltd
Moji Shand
CEO of Duncan Taylor Scotch Whisky Ltd
A PA S S I O N AT E S P I R I T
MOJI SHAND’S CAREER journey is an unusual one. How does an LA criminal law attorney and supervisor to 90 other lawyers drop everything to become CEO of a whisky company in Scotland? Discovering new passions can happen at any time of life, and for Shand, a love of whisky occurred as she took a break from her job and went travelling across Europe. “Criminal law can be very tolling and stressful, and in 2006 I wanted out,” Shand explains. “My boss put me on a leave of absence and I decided to travel. A friend of mine, who happened to be Duncan Taylor’s scotch importer in the US, was in Scotland doing a whisky tour and invited me along. I met Euan Shand, we did some bottling, and I took a cask of whisky back to the states with me. Getting this glimpse of the whisky industry, it was love at first sight, and I thought ‘I want to get onto this’.” While Duncan Taylor was new to Shand, it had a long history whose legacy had recently been revived. Founded in 1938 in Glasgow, it began as a cask broker and trading company, and was taken over by an American named Abe Rosenberg, who opted to
keep most of the company’s casks as a private collection. Upon his passing several decades later, Rosenberg’s children didn’t know what to do with the collection, and didn’t want to break it up, and so they sold the thousands of casks to Euan Shand. Taking Duncan Taylor to his hometown of Huntly, he began to trademark the brand, and it swiftly regained the interest it had lost during years of obscurity. Almost grudgingly, Shand returned to her job as a lawyer, and found that the passion she used to have for the role was no longer there. She had discovered it elsewhere, and spent her spare time searching for Duncan Taylor products and visiting distilleries and whisky shows. Regardless of the fact that most people in the whisky industry are born into it, Shand considered it her calling, and was determined to become part of it. Shand’s initial idea had been to open a Scotch whisky shop in the US, but she hit a stumbling block as her relationship with Euan Shand developed, and 13
A PA S S I O N AT E S P I R I T
they ended up marrying. “I couldn’t qualify legally to open up a shop due to US laws,” says Shand. “America considers me a company owner and producer by virtue of marriage, and I wasn’t able to become a retailer as well. I had to surrender my license before I could even open the doors, but I had enough knowledge by this point to become an importer, and I reached out to Peter Currie at Springback Distillery – who I had also met during my initial trip to Scotland – to ask if he’d relocate to
LA and help me. He had only just got married and had a baby, but after discussing it with his wife, he agreed!” Thus came Shand Import. The US was already a big customer for Duncan Taylor, and many other small importers were being bought out by bigger corporate companies, but Shand Import played on the fact that it was both traditional and stylish. While the craft spirit industry is only recently becoming fashionable, Duncan Taylor was an innovator. “Everything we do is handmade; we are craft,” Shand says. “The attention to detail that goes into the products during every point of production is extraordinary, and that comes from passion. You need passion, not big corporate backing. Shand Import started with just me and Peter, and we turned income around from $200,000 a year to $4 million a year. And the team is still only six people. It’s continuing to grow 15
PROFILE and I couldn’t be more proud of it.” While Shand Import is a high priority, Shand certainly spends plenty of time getting stuck in with production on-site at Duncan Taylor’s headquarters in Huntly, Scotland. To lavish equal attention on all sides of the business, Shand and her husband travel between LA and Huntly regularly, and delegate work to their talented and trusted team from wherever they are in the world. “Because I’m the US importer, it’s helpful for me to spend time on-site in Scotland, pick the casks I’m interested in, watch the bottling, and
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to relay back to my customers what we have available. Plus I’ll always roll up my sleeves and get involved with production during busy times. The staff in Huntly, I don’t need to be their mother and watch them all the time – I have complete trust in them. “Thanks to advancements in technology, communication is pretty simple; in Scotland, I start the day at 8:30am and often work late into the evening, because by 4pm, the US team is up and asking questions. When I’m in the US, I’m up at 6am so that I can get in bed with the UK team until about 9am when they shut off. That can be tolling if
A PA S S I O N AT E S P I R I T
you don’t like it, but if you love the work like I do, it’s not a big deal.” While the logistical side of her role has fallen into a comfortable pattern, it was not always so simple for Shand. She faced difficulties integrating for three reasons: because she was not already part of the very small Scotch whisky industry; because of her gender; and because of her marriage to Euan. “I had to prove myself every step of the way,” she explains. “I don’t have this job because I’m married to Euan, I have this job because I’m qualified for it. There was a lack of trust and respect there, and I had to overcome many challenges and show everybody that I wasn’t just wearing the title without doing the work to support it. “Scotch whisky is a pretty maledominated industry, and a lot of these guys have known each other from the beginning. So to formulate a bond with
them and prove I could do this, it took a while. I’ve been working on it since 2012, but I’m finally receiving respect from my peers. They see me doing my job and realise that I work for my title.” Shand has added dimensions to Duncan Taylor that it may never have realised it needed, and her qualifications as a lawyer have enhanced business in unforeseen ways. For example, when Euan attempted to re-release Black Bull whisky – historically a popular beverage – Duncan Taylor ran into potential legal difficulties. “Under Abe Rosenberg’s ownership, the trademark for Black Bull had lapsed; by the time Euan wanted to start trading it again, Red Bull was well established,” Shand
I had to overcome many challenges and show everybody that I WASN’T JUST WEARING THE TITLE WITHOUT DOING THE WORK TO SUPPORT IT 17
PROFILE says. “When I came on board, we were able to reach an agreement with Red Bull whereby we could both utilise the names of our trademarks, meaning we were able to re-launch our brand. Not many small companies have the luxury of an in-house council, but I’ve been able to jump in with anything legal and HR-related. Being a lawyer doesn’t just mean knowing law, but also having an analytical mind. “Euan and I complement each other really well; it’s not easy being married to your business partner, and he drove this company with great force single-handedly until I joined, but now we have a great partnership and amazing staff. We really treat them like family, and I think they think of us that way too.” Shand’s ventures are expanding all the time. As a side-project, she runs the Duncan Taylor Boutique, which
took the place of the whisky retailer she had hoped to open before her marriage to Euan scuppered that plan. She had already paid for a four year contract on a shop, and in the absence of being allowed to sell spirits, she decided to tap into a different trend by using casks to create furniture and art. “Life had handed me lemons, so I turned it into lemonade,” Shand says. “We have a lot of vintage casks which we were just cutting up and using in our fireplace, which seemed a shame. Nobody was making furniture with whisky casks, so we started doing that, and the shop has now become a destination for everything Scottish in LA. In the future, I’ll be introducing an espresso bar to the shop too; the smell of whiskey from the casks mixed with the smell of coffee is going to be incredible.” Duncan Taylor itself is also part way through building more bottling
Getting this glimpse of the whisky industry, IT WAS LOVE AT FIRST SIGHT, AND I THOUGHT ‘I WANT TO GET ONTO THIS’
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June 2017
A PA S S I O N AT E S P I R I T
warehouses, as demand for Scotch is ever-growing. The company is in full production 24/7, and as such is in a good position to expand, leaving Shand and her husband to continue running it with the strong partnership and unique brand of leadership they have cultivated.
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TECHNOLOGY
and the impor tance of
CU STOM E R R E L ATION S Business Review USA speaks to Larry Augustin, CEO of SugarCRM, about the role of CRM in the business world and how customer needs are changing with the advent of digital disruption
Wr i t t e n by : N E LL WA LK E R
TECHNOLOGY I.T. IS NOT a subject that will ever go out of fashion. Technology evolves constantly, and the need for businesses to have stable platforms has never been higher. Customer relationship management (CRM) company, SugarCRM, understands the need for software which is both simple to use and bursting with information, allowing customization and the best possible user experience. Larry Augustin, Sugar’s CEO, also knows the importance of familiarizing oneself with the digital landscape in this age of disruption; he speaks to Business Review USA & Canada about how to combat the fact that – as the company’s website states – ‘CRM has become too damn complicated’, and Sugar’s impact on the industry. Firstly, tell me about your career background and key responsibilities within Sugar. I joined Sugar in 2005 as a board member and outside director and, four years later I assumed the role of CEO, a position I have been in for the last eight years. In this role, I am responsible for the company’s strategic direction and execution; this 22
June 2017
focuses around helping our clients to build a unique customer experience through great customer relationships. Prior to SugarCRM, I spent five years as an angel investor and advisor to early stage technology companies including JBoss (acquired by Red Hat), XenSource (acquired by Citrix), and SpringSource (acquired by VMWare). In my early career, I helped found and was heavily involved with the open source community. Outside the world of work, my education background is actually in electrical engineering. I have Ph.D. and M.S. degrees in electrical engineering from Stanford University, and a B.S. in electrical engineering from the University of Notre Dame. How is Sugar able to tailor its products to customers, ensuring their individual needs are met? No business is the same, so no business should be subject to a generic rigid CRM platform. We work closely with our customers to allow them to define CRM in their own way. We want to give businesses the tools to easily and quickly morph a blank canvas into their own masterpiece, and one which
T H E I M P O R TA N C E O F C U S T O M E R R E L AT I O N S
enables everyone across their entire organization to become a customer expert and make a difference. The customizations available to Sugar customers varies from custom fields, custom modules, to third party plug-ins. Simply, SugarCRM provides you with various tools to make Sugar your own and, allows you to continue to evolve in an everchanging business landscape. In what ways has the company simplified CRM? We were keen not to play “feature wars” with our competitors and overwhelm users with a ton of bells and whistles they may (or may not) really need. Instead, we focused on
creating a highly intuitive platform for building applications the way a business wants to. 75 percent of all CRM deployments fail because
MOST CRM USERS HATE THEIR CRM SYSTEM and won’t gain productivity and insights if that’s the case. THIS IS WHY WE FOCUS ON THE CORE CRM FEATURES WHICH USERS WILL GET THE MOST VALUE FROM AND THAT MATTER TO THEM
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of adoption. Most CRM users hate their CRM system and won’t gain productivity and insights if that’s the case. This is why we focus on the core CRM features which users will get the most value from and that matter to them. As a result of this, we provide a simple and straightforward pricing structure. Usually, when it comes to CRM, the sticker price is only the beginning. For far too long, enterprise software vendors have gotten away with complex pricing models that make it very difficult to know how much your CRM is really going to cost. Our simple straightforward pricing means businesses can make their CRM initiative a strategic differentiator at a cost that works for them. Organizations should be able to make as many API calls as they want, store as much data as they want, and never be surprised by unexpected fees. What have been SugarCRM’s biggest achievements over the past 12-18 months? What challenges have you faced in this time? The last year and half has seen a lot of change for us. For one we’ve
Larry Augustin CEO of SugarCRM
The companies that win in this era of empowered customers do so
BECAUSE THEY CREATE BETTER RELATIONSHIPS WITH THEIR CUSTOMERS
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TECHNOLOGY continued to bring in some great talent with Rich Green at Chief Product Officer and Karen Willem at Chief Financial Officer. Rich previously ran software at Sun Microsystems where he brought technologies such as Java to market. He also ran Enterprise Products at Nuance where he created the technology behind Siri, and he was the CTO at Nokia. We’ve significantly accelerated innovation velocity under Rich and you’ll continue to see us invest more there. Karen Willem brings immense experience and leadership to us in the CFO role having held that position at multiple public companies including iPass, OpenWave and Brio where she lead the IPO.
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June 2017
What technological advancements have you had to make in order to remain a popular choice for some of the biggest businesses in the world? Sugar is a unique combination of leading relationship capabilities combined with a highly flexible platform. With version 7 of our product we moved to a full Javascript front-end driven by a REST API back-end. That led the industry and makes us the fastest and easiest to use application on desktop browser or mobile. We’ve also continued to build on leading web-scale and big data Open Source technologies like Elastic, Backbone and PHP 7 that bring all of that scale and power
T H E I M P O R TA N C E O F C U S T O M E R R E L AT I O N S
to our customers. We’re not stuck on older proprietary technologies like some of our competitors. How are customer needs changing in the current climate of digital disruption? The digital revolution is driving a shift in how companies deliver a customer experience, as well as inventing new ways to connect with and deliver value to customers. Today, customers expect the same level of service from their banks as they do their shops, restaurants and couriers. No longer do customers discriminate, they form their expectations through comparing and contrasting brands – irrespective of the industry. This means the banking customer experience is pitched against the greats of services from the likes of Amazon and Starbucks. Also, customers are now more connected and knowledgeable than ever before, using an array of different digital channels to contact companies with questions and complaints. A report by Frost & Sullivan found that almost half of financial services customers use three or more channels in a year. Whether it’s websites, mobile apps, email, social media or in-person
encounters, customers now have multiple channels available to them. Each one brings a further expectation from the customer to assume that the same level of service and experience will be provided through each. Simply, the days of a one dimensional customer approach are gone. Businesses now need to be able to deliver experiences that feel personal, unified and memorable if they are to stand out from the crowd. This gives the companies a double challenge: growing their customer base in the first place, and then finding the correct solutions to meet the needs of their current customers who are more empowered, educated and connected than ever before. What do you believe businesses need to do in order to stay ahead of the curve? The companies that win in this era of empowered customers do so because they create better relationships with their customers. How do they do this? They understand the customer journey inside out, they are responsive, they are social and they provide a human touch. With customers engaging with businesses across multiple channels, 27
TECHNOLOGY each provides a different kind of interaction and a piece of a customer’s history. Businesses must make sure they have the systems and tools in place in to capture all the relevant information that is available across these platforms. By doing so, teams across a business can have all the information they need at their fingertips to build a complete picture of the situation and the customer they are dealing with. Important details like what the customer has bought from you previously and what posts they have liked on your Facebook page or what their last interaction with the company was, empowers businesses to respond and handle complaints effectively and efficiently. Simply, access to the right information about
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June 2017
each customer, in the right context, at the right time will empower a business to innovate, and not only meet but, surpass customer expectations. What is your vision for the next 3-5 years, both for SugarCRM and the industry in general? CRM is evolving from a system of record to a system of engagement. What I mean by that is historically CRM systems were a data store; they were the database where customer data was consolidated. They were more about data in than insight. And they were more about command and control than helping the user connect with the customer. Where we have evolved, and the
T H E I M P O R TA N C E O F C U S T O M E R R E L AT I O N S
industry needs to go, is a system that gives you a lot of insight back and demands little from you in the way of data in. The system automatically pulls in data from systems both internal and external to your business. Using that data it helps your employees better understand the customer. Imagine a world where every time one of your employees talks to a customer the customer gets value out of that conversation and appreciates it. They are not annoying the customer with questions they should already know. They are sharing information that the customer cares about. They add value, and your customers appreciate that. And your employees get that insight without needing to
spend their time doing data entry. That’s the world we’re creating. In your own words, what sets SugarCRM apart from competitors? At SugarCRM, we aim to be a company that our customers enjoy doing business with – that is why Sugar has the highest Net Promoter Scores in the industry. We believe in an open, accountable and longterm relationship with our customers that creates trust. We put a lot of resources and energy into being that true partner. In fact, it is a key to what sets us apart from our chief rival and the others within the CRM industry.
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TOP 10
Top10
- places to visit in America
Whether you’re planning a staycation or visiting the US from abroad, here are the top 10 American destinations you absolutely need to experience this year (as listed by Lonely Planet) Wr i t t e n by : N E LL WA LK E R
TOP 10
The Emer eald Coast, FLor ida THE EMERALD COAST – so named for the sparkling green colour of the water – is the unofficial moniker of the 100-mile stretch of beach along the Gulf of Mexico, which has swelled in popularity recently. Known for its cookiecutter pastel homes, fine sand, and eco-friendly planned communities, this slice of the United States acted as the backdrop for the hit movie The Truman Show, and has since become a popular family holiday destination. Its clean, bright, all-American beauty must be seen to be believed.
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#10
PLACES TO VISIT IN AMERICA
THE MOST POPULOUS – municipality in Colorado, Denver boasts an enviable combination of stylish bars and eateries with a backdrop of exhilarating mountain-based activities. It is the highest major city in the US, and was last year named the best place to live in America by US News & World Report. With increasing numbers and varieties of outdoor activities to take part in (including a new Ski Train which runs from downtown to Winter Park), plus craft breweries and indie restaurants dotted all over the city, it’s clear to see why Denver has become so fashionable.
#9
Den ver, Co lorado
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TOP 10
Texas Hi ll Cou ntr y's wine r egio n TEXAS’S LONG HISTORY of wine production stems from this area, and has surprisingly been producing the beverage since the 1650s. There are over 36 members of the Vitis grape vine family grown here, and the area is expanding all the time, spreading further into the glorious countryside. Dripping Springs holds a Wine and Food Festival that is well worth a visit, combining the famed grapes with Texan comfort food and the great music for which the state is known. A must for lovers of food and drink everywhere.
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#8
PLACES TO VISIT IN AMERICA
k r o Y w e N , s k c a d n o ir d The A THE ADIRONDACK MOUNTAINS form the basis of this stunning area, nestled in the northeast of Upstate New York. The Adirondack area is made up of a roughly circular dome of peaks, and is dotted with lush forests, lakes, and wildlife. It began growing in popularity in the closing years of the 1800s, swiftly losing its reputation as a forbidding no-man’s land, and thanks to excellent park management and preservation, it remains intensely popular for all kinds of people.
#7
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TOP 10
ATLANTA HAS LONG been a center of commerce for the United States, as well as being known for its progressive views compared with other parts of the south. It contains the busiest airport in the world, and has earned its status as a transportation hub for south-eastern America. A
Atlanta, Georgia 36
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naturally heavy flow of tourism has only expanded what the city has to offer, adding to the beautiful rolling hills and lush forests art, technology, and entertainment; Atlanta is officially rated as a city which has significant impact on all of these things, plus media, education, and finance.
#6
PLACES TO VISIT IN AMERICA
#5
THIS NORTH-WESTERN EXPANSE of Montana features some of the most majestic mountains in the country, and lies just west of the legendary Glacier National Park. Everything is huge in Flathead
Valley, including the lake and the bears, and there are countless outdoor pursuits to enjoy, among which are hiking, skiing, rafting, and world-renowned trout fishing.
Flathead Va ll ey, Montana
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TOP 10
# Low Desert, Cali for nia WELL KNOWN FOR the annual music and arts festival that occurs in Coachella Valley, the Low Desert area also boasts many national parks and wildlife refuges which protect the scorching environment and draw in the nature-lovers. For those looking for a bit of civilisation, the main town here is Palm Springs, which is filled with stylish holiday homes, fashionable hotels, and vintage stores, ensuring something for everyone.
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June 2017
#4
PLACES TO VISIT IN AMERICA
#3
IN STARK CONTRAST to the Low Desert, Lincoln stands as a metropolitan beacon amidst a distinctly rustic surrounding. It is the second most populous city in Nebraska, filled with unique stores, art galleries, a huge farmer’s market, and a youthful, stylish vibe thanks to the large student population. The city has a history of being a haven for refugees, and as such has a diverse population adding to its rich culture.
Li nco ln, Nebraska
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PUSHED INTO THE spotlight by the popularity of Twin Peaks in the early 1990s, Western Washington is best known for its almost eerielooking mist-dusted mountains and the wealth of culture found within its cities. The region covers all of Washington that sits west of the Cascade Mountains, and contains the largest city in the state – Seattle. There are areas of outstanding natural beauty dotted all over the region, and Seattle itself boasts some of the most stylish bars, restaurants, and music venues around.
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Making healthcare digital Written by Nell Walker Produced by David Kulowitch
G E H E A LT H C A R E
As a business composed of digital natives, GE Healthcare is well placed to make great technological strides. We speak to Charles Koontz, Jon Zimmerman, and James Richards about how GE Healthcare has transformed both itself and its industry
“We
are digital natives. We are purely about people, process, information, and IT. We speak, eat, and breathe digital.” Jon Zimmerman, Vice President and General Manager at GE, is animated and eloquent as he describes his responsibilities over GE Healthcare’s valuebased solutions portfolio. GE Healthcare exists to leverage its best-in-class technology and digital expertise to deliver outcomes for its customers, with a core focus on value-based care: enhanced care quality, increased practice efficiency, lower per capita costs and provider
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satisfaction. Zimmerman is hugely excited by GE Healthcare’s ability to ensure that “the right people are in the right roles, with the right skills, in the right quantities, at the right time.” But it takes a detailed and sophisticated strategic vision to achieve the standards GE Healthcare has set itself – a vision that has led the organization to consolidate resources into a tight, streamlined, horizontal platform, as described by Charles Koontz, CEO of GE Healthcare Digital and CDO of GE Healthcare. “We’ve created horizontal capabilities, which we’re driving at several levels,” he explains with a passion borne of experience. “There’s the Internet of Things, which we take advantage of using our Predix analytics platform – it connects devices, collects the data,
TECHNOLOGY
Central to GE Healthcare’s digital strategy is the use of cloud technology – to collect, analyze and process data and to serve as a common founda
WE SPEAK, EAT, AND BREATHE DIGITAL – Jon Zimmerman, Vice President and General Manager at GE
Jon Zimmerman Vice President and General Manager, ValueBased Care Solutions
Zimmerman is the VP and GM of Value-Based Care Solutions at GE Healthcare. He was previously at Availity, where he served as the General Manager of Clinical Solutions, leading the strategic development, planning and delivery of clinical information exchange via the Availity Health Information Network.
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G E H E A LT H C A R E
Charles Koontz President and CEO of GE Healthcare Digital and CDO of GE Healthcare
Koontz is Chief Digital Officer (CDO), GE Healthcare, and President and CEO, GE Healthcare Digital. In his roles, Koontz leads the horizontal implementation of analytics, cloud technology and deep learning solutions across all of GE Healthcare, and the strategy and operations of the Healthcare Digital business, which includes software solutions for enterprise imaging, workforce management and financial management.
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and ingests it into the cloud. We do a lot of what we call Advanced Preventive Maintenance, which is driven across the company and applied to healthcare. Plus, we are driving two dimensions of horizontal: the internal IT system that we call Digital Thread, and a consortium of third-party developers.” The Digital Thread is, quite literally, what connects all operational processes within GE Healthcare. The thread automates processes and enables insights and actions that improve performance. This lies within the remit of James Richards, the company’s CIO, who summarizes its purpose. “The simplest phrase I consistently use to explain ‘digital’ is that we need to get more output with less input,” he says. “Most companies that have been successful in digital have not entirely built their own technologies; they have leveraged existing capabilities and put them together in a way that drives customer benefit for far less input than would have been required in the past. I also need to make it eminently easier for our employees
TECHNOLOGY
GE Healthcare is building digital twins of hospitals, mining data to improve performance at the individual asset and entire network level
to perform their jobs, with better tools and better applications, and in some cases this means completely eliminating non-value-added tasks that no longer need to exist.” Artificial Intelligence as a service For GE Healthcare, technological advancements are a staple of its operations. However, there is particular excitement around AI something the business has been hard at work developing and is now deploying to tremendous effect. “We’re partnering with hospitals around the country. They have
millions of patient records, and in those records are millions of images collected from GE machines,” Koontz explains. “Let’s say, for example, you have a lung condition – we provide algorithms that can identify an issue that might need immediate intervention, allowing the radiologist to more rapidly provide a diagnosis and begin delivering treatment. We use these clinical partnerships to help create the algorithms, and then the radiologist will give us a thousand images of nodules in the lung, creating what’s called curated data. The potential accuracy
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G E H E A LT H C A R E
James Richards CIO, GE Healthcare
Richards is the Chief Information Officer (CIO) for GE Healthcare, based in Chicago, IL. He was appointed to his current role in March 2016. Prior to joining Healthcare, Richards was the CIO, Finance. This role was created in Jan 2014, and was responsible for Enterprise & Finance Systems strategy, operations and deployments across the company. He partnered closely with the Finance, IT, and Global Operations teams in driving these priorities.
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of these algorithms is over 99 percent.” GE Healthcare now has clinical partnerships that address a number of disease states and focus areas, including lung, brain, cardiovascular, pelvic and women’s health. The company is leveraging its existing advanced imaging capabilities alongside the clinical expertise of its partners to develop algorithms that will aid physicians in the speed and accuracy of their diagnoses. “This is going to be critically important for emerging countries, many of which have
TECHNOLOGY
Through a partnership with University of California San Francisco (UCSF), GE Healthcare is developing a library of deep learning algorithms, one
a shortage of radiologists. This is real, and the solution is being developed today,” Koontz adds. For Zimmerman, ‘artificial intelligence’ is no longer an appropriate term for what the technology has become. “I personally do not believe in artificial intelligence,” he says with a touch of humor, before swiftly expanding on his position. “It’s because A) there’s nothing really artificial about it anymore,
it’s real intelligence, and B) it really doesn’t have any value unless it’s applied to something. Our team and our customers think of it more as applied intelligence. If you apply machine learning to the various data types, insights and intelligence will be born. That intelligence then has to be planted into the workflow of, or the experience of, a consumer, a clinical professional, or a revenue cycle person. So, as
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Qvera & GE Healthcare Customers Shoulder-To-Shoulder for More Than 15 Years Qvera is proud to be the trusted go-to interoperability partner for GE Healthcare customers through the most revolutionary time in healthcare IT.
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Qvera’s workflows go beyond checking the box to meet government requirements and enhance the GE Centricity user experience, providing doctors what they need at the point of care and improving patient health outcomes. As the healthcare IT landscape continues to mature, we are on the forefront of evolving interoperability standards. Working with HL7 and IHE, we are helping define the standards of the future and driving down the cost of healthcare interoperability.
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TECHNOLOGY
we invest in understanding data and what it’s telling us, we try hard to do things that make a difference and create better outcomes.” A common source of truth Through its Digital Thread, GE Healthcare has aggressively rationalized its application landscape to achieve these levels of technological advancement. Like any large enterprise, it had evolved from an operation that ran its own data centers and databases and deployed point solutions, leading to thousands upon thousands of applications speaking to each other, making IT incredibly complex. “The mission of Digital Thread is to turn that spaghetti of applications into a consistent global set of pillar applications, which form the foundation of the business,” Richards explains. “When you have a consistent data set across the organization, you have a common source of truth. Then, you can start building applications and analytical tools which sit on the foundation, allowing you to do
incredibly powerful things.” Fully harnessing the data driven by this cleaner, more uniform process is, in Zimmerman’s words, “a wonderfully large, hard problem to tackle.” With 37 years of experience in this industry, he is still thrilled by the advancements he has seen and is continuing to help develop, because he is able to see the ever-improving outcomes from the inside. “One of the biggest challenges is the fact that data is largely defined by individual health systems, meaning there’s a huge quantity of it and it is often highly fragmented. This isn’t just in healthcare, of course – this is across the world at large, and really, it’s only in the early stages of being tackled. You have to be able to understand data in all its forms, so that it can be correlated and applied.”
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TECHNOLOGY
The art of growth regarding how important technology Part of what helped GE Healthcare is and how increasingly pervasive it grow into its current status as an is, is the intelligent harnessing and industry giant is acquisitions, meaning application of it to make a difference,” a lot of systems have been cleaned up he continues. “To embrace quality, to create consistency. That, combined efficiency, and the ability to be rewarded with the streamlining for the work that you do.” of GE’s own data An example of good systems, meant IT that GE Healthcare a concerted drive has firmly embraced is towards consolidation. cloud computing. Since “The whole idea part of the company’s here is that some digital consolidation was IT energies are the funneling of huge good, some are volumes of information bad,” Koontz says. into taut, legible “We’ve consolidated streams, an effective – James Richards, hundreds of vendors data storage system CIO, GE Healthcare down to four primary was key, and cloud ones, and we’re standardizing our technology met that need. processes into something horizontal.” “Three years ago, if you went to The good and bad IT energies a CIO in a hospital and said, Koontz mentions can be found “What about cloud?”, across the entirety of the digital they would have been landscape, reaching far beyond hesitant,” Koontz GE’s own in-house technology. In says. “Now, Zimmerman’s words, “technology with the in and of itself is a very powerful and dangerous intoxicant.” “I think the challenge we have
“When you have a consistent data set across the organization, you have a common source of truth”
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G E H E A LT H C A R E
volume of data, they are more than willing to talk about cloud. Whatever the type of data – be it operational, financial, lab, or clinical – hospitals are wanting GE and others to help them process that data in an applicable form.” But it’s not just the elevated level of service it enables GE Healthcare to provide, Richards says. It’s fundamental to GE Healthcare’s success in the future. “If you think about what legacy organizations look like – doing everything ourselves, setting up in our data centers, deploying our own applications across multiple functions and various regions – that complexity does not enable sustainable growth,” he says. “That’s one of the major reasons why we’re pushing for a common foundation for the entire enterprise. By moving to cloud – and 40 percent
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of our applications are already there – we’ve made huge progress. The real value here is when you build a core foundation where you can rely on data integrity, that enables you to build things that may be very specific given new markets, new customers, and new regions. We can build lightweight capabilities accessible across the globe through a smartphone. That’s how you do sustainable growth.” Change from within None of GE Healthcare’s incredible work toward peak operational efficiency and top-level digital technology would have been possible without the initial step of changing minds from the top down. “There are major change management processes and methods that need to be put in place and should never be underestimated,” Koontz says. Looking at who the company can count on and how the organization moves forward is where change management comes into play, and the vision must be laid out for all. “You say ‘here’s the objective, here’s what we’re trying to achieve,
TECHNOLOGY
here’s why it’s important to the business, and here’s the role I need you to play in that vision’. That communication must be frequent and cascading,” he continues. Of course, all of this would mean nothing without GE Healthcare’s customers, and their patients in turn. Part of Zimmerman’s job, and one of his favorite elements of it in his own words, is engaging deeply with customers: “Those hospitals, clinics, and physicians give me the great privilege of understanding their operations, their challenges, and their needs,” he says. “I am blessed to bridge those two worlds. I get to
bring the best technologies to life, in a way that customers can adopt and use them to achieve better outcomes. That’s my role in life and I’m thrilled beyond words to be able to do this.” Richards adds: “We have to push a willingness to think through what the art of the possible is. There’s an insatiable demand for better patient outcomes, which is what we’re really after here. This goes beyond advancements like making it easier to make restaurant reservations – we’re talking about real lives at stake. “So I think that’s the exciting part – that the demand will always outstrip the supply.”
www3.gehealthcare.com
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Securing
A HEALTHY SUPPLY CHAIN Steve Sawyer describes the ways in which JLL’s healthcare supply chain has developed its own brand through honesty and trust Written by Nell Walker Produced by Denitra Price
Steve Sawyer Vice President-Healthcare, Supply Chain Management & Procurement, JLL Americas
Steve Sawyer leads JLL’s national supply chain management & procurement healthcare platform, managing $750+ million in annual operating and capital spend. His focus is on developing strong supplier and client relationships, securing top talent, reducing hard/ soft cost, developing measureable glide path savings and master planning.
JLL
JLL’s
presence in the healthcare sector may still be relatively new, but Steve Sawyer, Vice President for JLL’s Healthcare Supply Chain Management and Procurement services group, has been working hard behind the scenes to leverage 19 years of healthcare expertise in building a supply chain platform unrivalled in the industry. Sawyer joined JLL in 2015, and over the past two years has transformed the way JLL services healthcare clients. “The healthcare industry over the last five years has significantly changed,” he says. “Healthcare in the US has recognized they need help in nonmedical service areas. The industry is starving for one or a few integrated facilities solutions whereby a single company provides real estate and transaction management; the ability to manage facility and energy operations; construction; medical move transition management and capital planning; regulatory compliance; sustainability; supply chain management; and procurement platform services. JLL brings these integrated solutions into healthcare. In addition, the industry seeks new business contracting practices and supply chain innovations, which transform the old-to-new supplier base in hard, soft and purchased service areas.” According to Sawyer, the big difference in his department today compared to prior years is that his team is improving supply chain talent, expertise, and confidence. Hiring the right people who understand
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Competition in our industry is & welcomed
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supply chain, strategy – Steve Sawyer, Vice President-Healthcare, Supply Chain and industries has been his Management & Procurement, JLL Americas focus. “When a competitor in real estate or supplies shares feedback expands, the healthcare supply or want to know more about JLL’s chain team must work smarter, engagement in healthcare, we know harder, and deliver faster custom we have created market disruption facility contracting service solutions. and made a difference to catch the “That’s one thing our competitors attention of others,” he explains. – even our clients – do not always “Client confidence appears to be have the ability to do,” Sawyer growing too, as our team has been explains. “We are expected to asked to take on more contract provide tailored contracts meeting scope work in medical contracting current and new facility infrastructure areas. We feel when a client asks operational and capital needs.” JLL supply chain to review larger Aside from delivering custom scope opportunities that we have contracting solutions, JLL healthcare gained their trust and confidence in supply chain value focuses on showing savings and overall value.” openness, honesty, integrity, ethical The JLL healthcare business practices and transparency. How continues to expand due to new does the company prove it? The organic growth and healthcare supply chain team has publically company acquisitions. As its reach released information on its operations
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to secure trust, publishing several whitepapers with subjects ranging from cost saving success stories, to testimonials, to factoids regarding biomedical technologies that are not typically public knowledge. Sawyer states: “Creating, building and sharing best practices supports our focus and values necessary to strengthen our supply chain professionalism.” Sustainability is another passion his team has focused and written
whitepapers on, including ways to handle and dispose of medical and non-medical waste streams in a cost-effective way. Sawyer explains: “We spent a great deal of time fixing cost structures, discovering gaps in technologies, capturing waste streams, and sharing our story pre and post-solutioning. Suppliers have taken notice too. Water treatment is another sustainability area my team has focused on, and drives cost
Achieve Ambitions | JLL
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Our focus to be open
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& transparent
is the stepping-stone to building trust – Steve Sawyer, Vice PresidentHealthcare, Supply Chain Management & Procurement, JLL Americas
savings while reducing client and patient risk as it relates to water quality and reduce water consumption.” When asked how Sawyer ensures how his supply chain staff support the JLL healthcare brand, he is quick to emphasize the importance of that last word – ‘brand’. According to Sawyer,
the supply chain brand did not exist in prior years, and creating it was his primary focus upon coming on board as a new hire to JLL. Furthermore, he focused on the internal talent each member of his team contributed. “I wanted to create a supply chain presence that encapsulated our methodology or cadence. A branded solution that was repeatable, trainable, and measurable.” In addition, he wanted a brand his team could refer to supporting its strategic
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S U P P LY C H A I N
and tactical assignments; a brand inclusive of a ‘toolbox’ containing comprehensive documents, MS Word, Excel, PowerPoint templates, and industry KPI milestones necessary to drive and track an account supply chain approach and related contract savings. To begin training new hires, Sawyer starts by showing several healthcare images. The images include the following: an infant, middle-aged person, elderly person, cleaning a hospital area, mechanical image, a surgeon embracing technology, and an empty stretcher wheeled down a hallway. Sawyer goes on to say: “I then ask which image is the most
I wanted to create
presence that encapsulated our methodology or cadence a
– Steve Sawyer, Vice PresidentHealthcare, Supply Chain Management & Procurement, JLL Americas
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important, and does the imagery positioning play any significant role?” Most of the time his team selects the surgeon, cleaning, or mechanical area as the most important image. As for imagery positioning, he commonly hears his new hires say the images illustrate healthcare. According to Sawyer, “the most important image is the stretcher, because the stretcher could be you, a family member, or a friend”. Every dollar his team and the integrated JLL service platforms solution saves is a dollar’s worth of innovation healthcare can reinvest. This results in stronger clinical technologies, enabling faster quality of patient care and improved patient outcomes. The imagery in his training test, Sawyer goes on to say, “represents the life cycle. We enter as an infant, become middleaged and grow to become elderly, whereupon we rely on medical technology and surgeons, physicians and clinicians to care for us as patients and expect treatment in a healthy facility or work environment.” The imagery provides a purpose for
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“Creating, building, & sharing best practices
supports our focus and values” – Steve Sawyer, Vice President-Healthcare, Supply Chain Management & Procurement, JLL Americas
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his supply chain team in support of the brand. Mentorship in his supply chain team is another focus of Sawyer’s, he explains. “Our team is virtual and supports hospital accounts across the United States. Getting to know our diverse team members and expertise begins as each member of staff is asked to complete an individual biography, and after sharing the team biographies I put into place a ‘Mentorship Program’.” Sawyer and his leadership team assign a mentor to a mentee, also known as a ‘buddy system’. He refers to this process as a way to extend a ‘virtual hand’ – a simple way to get to know each other. He also makes it a point to look outside of healthcare when it comes to hiring talent, in an opposite approach to his own professional background, as Sawyer himself has 19 years solely in healthcare. When asked why, Sawyer explains: “I believe expertise comes from individuals who are trainable, eager to grow developmentally and professionally, understand strategy, and have hands-on supply change management experience. Hiring supply chain professionals with these proven characteristics can be taught with healthcare vernaculars.” Sawyer and his team depend on technology to drive awareness, strategy, and detailed analysis to achieve successful outcomes. The analysis begins with understanding high-to-low spend per supplier per facility they service across an organization.
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Following the supplier categorization analysis, his team creates a master or strategic plan necessary to show all savings opportunities in a given timeframe. Spend analysis provides key KPIs and business case to confirm in-hand supplier and missing supplier contracts, while supporting current and future goods and service levels of work. As the plan matures, new discoveries and opportunities to close high-risk areas become more prevalent. Simplifying supply chain needs as much as possible is vital to Sawyer’s team; he refers to this as Project Harmony. “Project Harmony is a coined phrase I created for my team, that simplifies all the details inclusive of process mapping to technical tools,” Sawyer explains. “The phrase embraces the A to Z repeatable ‘toolbox’
solutions necessary to support our healthcare supply chain brand.” Sawyer goes on to say: “Trust begins with transparency, confidence and brand. As we share our solution and story with internal and external stakeholders, we believe basic requirements asked of our JLL healthcare supply chain industry has been satisfied. Our focus to be open and transparent is the stepping-stone to building trust. Frankly, this is a client demand and when we bring this value and practice into healthcare. “We constantly reassure our value as healthcare supply chain change management experts each time we exceed competing contracts and share our successes with our client, internal JLL integrated teammates, and strategic suppliers. Competition in our industry is welcomed and healthy.”
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Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Denitra Price
BACKING
BUSINESS IN THE
AMERICAS
T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)
Managing and rationalizing complex domestic and global supply chains is saving money, creating efficiencies and delivering value to the enterprises that rely on Toshiba expertise
T
wo separate business units based in the USA serve Toshibaâ&#x20AC;&#x2122;s business clients in the Americas. We are not talking here about computers, televisions and the like which are the province of Toshiba Corporation but about the wide range of products, from color and monochrome multifunction printers, thermal barcode printers and digital signage solutions provided
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and marketed by Toshiba America Business Solutions (TABS) based in Irvine, California. TABS, and its sister company Toshiba Global Commerce Solutions (TGCS) in Research Triangle Park, North Carolina, which specializes in retail store technology and services, including point-of sale (PoS) software, hardware, are subsidiaries of Toshiba Tec Corporation, an
“WE ARE SEEING SIGNIFICANT GROWTH IN SELF-CHECKOUT VOLUMES AS RETAILERS MOVE INTO THAT SPACE” –Steven Mensch, Senior VP Global Operations at Toshiba Global Commerce Solutions
Steven Mensch Senior VP Global Operations at Toshiba Global Commerce Solutions Steven Mensch joined Toshiba Global Commerce Solutions in 2012 through the Toshiba Tec acquisition of the IBM Retail Store Solutions (RSS) division. Steven serves as Senior Vice President, Global Supply Chain Management, with responsibility for sourcing, global production procurement and indirect procurement, manufacturing, planning, global logistics, import/ export compliance, fulfillment and inventory. business.toshiba.com/usa/index.html
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Solving Industry-Specific Challenges of our Customers
Engineering Manufacturing Services Companies around the globe increasingly face greater pressures to bring amazing products to market quickly, create compelling customer experiences and keep pace with innovative competitors and evolving consumer behaviors. The Jabil Team partners with global customers to help them achieve leadership in established markets, expand into new ones and move with greater speed, confidence and agility even in uncertain environments. Our sophisticated solutions leverage our supply chain experience, investments in innovative technologies and subject-matter expertise to bring value to our customers at every step of the product lifecycle. cu
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S U P P LY C H A I N
independent company, publicly traded on the Tokyo Stock Exchange, in which Toshiba Corporation holds a little over 50 percent of the shares. Thus TGCS and TABS operate independently of one another, however as TGCS Senior VP Global Operations Steven Mensch indicates, in supply chain matters they work closely together: “We have been working across the whole operation to look for synergies between the two companies to make us more efficient ever since Toshiba Tec’s acquisition in 2012 of IBM’s Retail Store Solutions (RSS) division.” Mensch has supply chain ownership for TGCS. “We and TABS operate somewhat differently. TABS focus is the Americas while TGCS has a global focus with operations in 45 countries.” POS equipment, he explains, is a high volume, highly customized segment. And it is a growing one, despite the inroads of online purchasing which has only served to stimulate innovation as the ‘frictionless’ check-out comes closer to reality. “How do we make the process as frictionless as we can? We are seeing significant growth in self-check-out volumes as retailers move into that space. We want to make shopping more pleasurable, convenient, faster.” To meet demand TGCS currently uses a set of strategic manufacturing partners in Asia, shipping through Tier 1 strategic fulfillment/EMS partner, which currently takes on pick and pack fulfillment and late customization and configuration. “Utilizing this strategic partner, we are working toward a shift
business.toshiba.com/usa/index.html
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B-EX6 Peel off label L
B-EX6 half-open ribbon label
DB-EA4D with DuplexPackSlip Label
B-FP3 With Label MidRight
T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)
in that model to leverage their overall strategic capabilities and in geo manufacturing.” This will also involve increasing the partner involvement in global logistics – which already has taken on inbound logistics support, providing them full visibility over incoming components, raw materials and finished goods – eventually outsourcing manufacturing all to the same partner. “It will allow us to reduce inventory, reduce lead times, keep a single touch on product and reduce our cost structure,” Mensch adds. There’s no doubt that the experience gained here will benefit the supply chain within TABS too, though it has a very different model having its
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own manufacturing and distribution facilities in the United States and Asia. “We cooperate with TGCS on supply chain matters,” says Steve Tungate, TABS’ VP and General Manager of Service, Supply Chain & Innovation. Together with VP of Operations Sue Wilson and Steven Mensch they form a supply chain triumvirate that works to create better solutions for the customer and the business alike. The mature and very competitive market for printers and copiers is still the backbone of the TABS business, though the digital signage and thermal barcode printing segments are growing fast. “That means we have to manage a much
S U P P LY C H A I N
Sue Wilson VP. Operations at TABS
With the company since 1988, Susan Wilson currently serves as vice president, Supply Chain Management for Toshiba America Business Solutions, Inc. (TABS). In this role, she is responsible for procurement, import/export, inventory control, transportation, customer service and distribution.
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T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)
more diverse supply chain than in the past with the mature products,” says Tungate. “TGCS and TABS have a very different business model today and we are working toward the best solution,” Wilson agrees. “For example in the last couple of years we have been negotiating on shipping rates, lanes and partners. Our supply chain is beginning to come together as we negotiate with vendors to leverage our volumes.” A parallel challenge has been the integration of ERP systems across the Toshiba Tec businesses. When the former IBM Retail Store Solutions (RSS) division was acquired it migrated to Oracle, however the version adopted by TGCS was different from TABS’ legacy
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version, and integration is an ongoing challenge. Rather than wait for a large and disruptive migration to the common system, we decided to take advantage of the areas that would deliver the best immediate result, says Steve Tungate: “We are now in the process of building a common distribution network for the business, and that will be done well before we are done with system integration.” At the moment the focus is on inbound logistics, and already some TGCS products are being fulfilled out of the print
S U P P LY C H A I N
“WE HAVE ESTABLISHED A CORE SET OF TRUE STRATEGIC PARTNERS” –Steven Mensch, Senior VP Global Operations at Toshiba Global Commerce Solutions
Q2-Q3 2016 e-STUDIO Line
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T O S H I B A A M E R I C A B U S I N E S S S O L U T I O N S ( TA B S ) TOSHIBA GLOBAL COMMERCE SOLUTIONS (TGCS)
group’s supply chain. It’s a process of opening interfaces between the two companies that are simple enough from an IT perspective, achieving economies of scale well ahead of complete integration which will be achieved in 2019. Oracle integration is not merely an internal project. TABS differs from TGCS; while the latter deals with large global customers of the order of Walmart for example, no single customer of TABS accounts for more than two percent of revenues. Its route to market is through its own stores and an independent distributor community numbering more than 200 in North America and many more in
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the Latin American countries. All of these have to be brought onto the new system as well. “Everything we do is designed around beneficial change to our customer,” insists Tungate. “Gaining efficiency in our supply chain helps the customer because it improves our profitability and allows us to invest in our business.” That principle informs the relationship between TABS and its vendors, continues Sue Wilson. “We select vendors who are not just going to give us the cheapest price, but have the experience and the drive to help us find the right solution.” This partnership model brings in best supply chain practices
S U P P LY C H A I N
Steven Tungate VP/GM Americas, Service, Supply Chain & Innovation at TABS
R. Steven Tungate is responsible for overseeing the companyâ&#x20AC;&#x2122;s innovation, technical support, service and supply chain management organizations. In this role, Tungate is charged with efficiently managing Toshiba America Business Solutions (TABS) complex supply chain, which includes procurement, import/ export, inventory control, transportation, customer service and distribution.
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by leveraging their experience and wider customer base. It is the best way to keep abreast of change in this volatile marketplace, she believes. Innovation is in Steve Tungate’s job title and he says it is the fun part of his work. “We aim to be the best and easiest company to do business with and we have always been out in front of the competition on that metric. A lot of innovation is taking place in the operational supply chain and that is what enables us to continue to improve our overall position in the market. We know we are not the biggest so we try to treat our customers the best.” For him, innovation means the evolution of corporate strategy, not just in supply chain but in every department. Innovation is a frame of mind,
and all the tools in the box, whether Six Sigma or lean processes, are just there to achieve business improvement. Ideas should be sought at every level, he says, and as an illustration he cites a project that recently closed. An employee at the South Dakota manufacturing facility raised the question of why the climate control equipment had to function all of the time across the entire plant even in rooms that were not in use. His innovation project was a system to shut off the fans when rooms were not in use: it saved the company $8,000. Tungate says. “Although these savings are very small it is a great example of a culture of innovation that starts from the top and involves all associates. We highlight this project because we want
“EVERYTHING WE DO IS DESIGNED AROUND BENEFICIAL CHANGE TO OUR CUSTOMER” –Steven Tungate, VP/GM Americas, Service, Supply Chain & Innovation at TABS
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everyone to know that they can make a difference. If they need skills support or resources to implement their idea, it will be there for them,” adds Sue Wilson. “There are green belt project leaders throughout the organization, and even if it’s just putting in hand dryers in a restroom everyone at the plant gets involved in the project.” Many such innovations arise from the shop floor, others from middle
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management, and the highest value ideas are launched at board level. “A couple of years ago our CEO asked us to look into IoT technology to better monitor, manage and serve our installed base, which is in the hundreds of thousands,” Wilson continues. “We developed a solution that allows us to do things we could never have considered even a few years ago.” Starting with a strategy
S U P P LY C H A I N
and concept a joint team developed the Toshiba industry exclusive e-BRIDGE CloudConnect tool. It allows service providers to manage devices and free up resources with remote meter reads, firmware updates, and toner alerts to trigger automatic supplies deliveries. Simple to activate, it monitors a deviceâ&#x20AC;&#x2122;s status, security
setting and the like and if they deviate from the customerâ&#x20AC;&#x2122;s specification it reconfigures them without human involvement, and importantly, without delay or down time. Does that look like a deviation from a purely supply chain story? For Sue Wilson and the two Stevens, there are no such silos.
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Transforming the industry Written by Nye Longman Produced by Tom Venturo
Corbins Electric is redefining standards inside and out. We speak to COO Justin Martin about how this is happening
CORBINS ELECTRIC
C
orbins Electric is on a journey to change the electrical manufacturing industry forever. A company with more than 40 years’ experience, Corbins certainly knows its terrain well. Not content for the business to rest on its laurels, however, COO Justin Martin is determined to radically rethink assumptions around people and processes. We speak to him in-depth to understand more about how this is being achieved, as well as how the company’s commitment to technology is reinforcing these changes. Operations “Corbins Electric started in 1975 as an electrical service contractor and grew into electrical construction,” Martin explains. “We are a company that offers four complimentary but distinct services: Electrical Construction, Electrical Service, Virtual Construction and Fabrication.” Corbins Electric’s industry leading virtual construction, building information modelling (BIM), and 3D modelling capabilities, is one of that many advantages that sets
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them apart from the competition. Although these are facets of electrical contracting that are already techheavy, Corbins is keen to continuously develop its technology capabilities. Using eVolve™ workflow to leverage single-click automation for
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Waiting ... A Waste
fabrication, material ordering, and detailed as-built drawings, Corbins is able to deliver efficient virtual construction services to contractors, engineers, and architects. We don’t just do modelling to support our own projects – we also do this to
support others. This is a need that our industry has – not everybody can accelerate that functionality quickly enough. We have some unique tools that help contractors prefabricate - that’s something we are able to leverage worldwide.”
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Aaron Thompson VP of Design & Fabrication
“It’s our virtual construction and prefabrication that makes us stand out in the marketplace,” Martin says. “We’ve also implemented a lot of lean manufacturing practices including value stream mapping to continuously drive waste out of processes.” Corbins also provides marketleading fabrication services. Its state-of-the-art 23,000 sq ft lean
Darin Johnson
fabrication facility provides a number of technical functions including conduit bending, racking, as well as TIG, MIG, and ARC-certified welding, and custom labelling, among many other complimentary activities. The company is also able to offer clients
Chad Shultz
Operations Manager
consulting services ranging from lean manufacturing, modelling, fabrication and even mobile app development to help drive efficiency in the field. Corbins initially entered into the market with a variety of electrical construction services, an aspect of the business that continues to go from strength to strength. Having worked
VP of Field Operations corbinselectric.com
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JD Martin Business Solutions Manager
Jessica Grant Chief Financial Officer
Michael Vargo
in the industry for so long has enabled it to gain crucial experience across a broad number of different sectors, including healthcare, manufacturing, commercial, and aviation. These segments and more benefit from elite electrical construction services such as design/build, design/bid/ build, construction manager at risk (CMAR), subcontracting, and job order contracting (JOC). Corbins also offers electrical services tailored to the needs of facility owners and property managers, including troubleshooting and repair, lighting and energy management, and preventative maintenance. Transformation As with many people that have spent their entire career in the industry, Martin has an intimate understanding of the problems it faces. But unlike so many others working in this space, he has a plan to not only survive but thrive by rethinking the fundamentals of the corporate culture. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s been a huge focus on undoing the stigmatisms in the industry in regards to how people are
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treated and developed,” he explains. “What’s glaringly obvious is a lack of leadership. I see on LinkedIn all the time how people post articles about millennials and how horrible they are. I even bought into it for the first few years and thought ‘this is going to be a real challenge.’ “But as we hire and intentionally developed them, their contributions to our business have continued to propel us forward,” he adds. “Now when I read these articles I see that a bunch of baby boomers who haven’t figured know how to manage millennials
and are still whining about it.” “We have some of our most innovative ideas and some of our best leaders coming from a generation that people are saying can’t work,” Martin adds. With the age of an electrical construction journeyman averaging out at around 55 and, with 40 percent of the electrical workforce slated to retire over the next 10 years, the industry is facing a demographic challenge. While attracting a younger, more tech-savvy workforce is part of his strategy to combat this, it is only part of the story.
Mark Fleming President & CEO
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“I would call myself the ‘chief
culture warrior’” – Justin Martin, COO
“I don’t buy into the idea that you can’t teach an old dog new tricks,” he laughs. “Some people in the last years of their career are adopting and implementing the technology just as quickly. When you get down to what helps them to do their job and accelerate the experience they already have they get on board – I have been impressed by how they have accelerate that so well.” “I would call myself the ‘chief culture warrior’,” Martin adds. Passionate about both people and process (in that order) he has worked in the
electrical construction industry since he was 19. Persistently bothered by what he saw as invisible walls between the various functions of the industry, he is keen on identifying where changes can be made. “I didn’t think there needed to be lack of communication and unnecessary tension between field and office, preconstruction and operations, operations and accounting. A lot of times people defaulted to a people issue when there was a process issue - that was driving the disconnect.”
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“I see that there’s a bunch of baby boomers who haven’t figured know how to manage millennials and are still whining about it” – Justin Martin, COO Having doubled down on making sure that Corbins has workface fit for a rapid, multi-faceted transformation, Martin then set about implementing new technological solutions. In a short period of time, Corbins was able to significantly reduce payroll administration costs, while improving accuracy and speed – all because of mobile apps and automation. “We have launched 80 independent functional mobile applications since October 2015,” he says. “Instead of buying canned software, we decided to develop those in house, and partnering with Catavolt, utilizing their platform to develop apps that meet our workflows.” Corbins has without doubt set about a sea change in the electrical construction industry. By innovating its corporate culture and technological capabilities, Martin and his team
have strengthened the business, ready to meet the evolving needs of clients across the US and the world. Encouraging the next generation of workers to realise their full potential, while ensuring that more experienced workers benefit from the same fresh approach, Corbins’ status as a top employer in the industry has grown ever stronger. Martin concludes: “We are really committed to the success of each other and the functions and departments – there’s a lot of alignment in that. It’s hard to grow a company to more than 600 people and have all the leadership going in the same direction. That wouldn’t have even happened if we didn’t have a leadership team that was completely aligned and bought into each other with that level of trust.”
TESLA, RENO AND THE ROAD T O N E VA D Aâ&#x20AC;&#x2122; S NUMBER ONE Written by Leila Hawkins and Tom Wadlow Produced by Tom Venturo
Helix Electric has proven itself as the ultimate onestop-shop for electrical contracting across an extremely diverse range of industries. Now with an office in Reno and playing a key role in Teslaâ&#x20AC;&#x2122;s enormous Gigafactory construction, its aim is to become the leading contractor in northern Nevada
HELIX ELECTRIC
R
eno may be dubbed the ‘world’s biggest little city’, but on its doorstep lies one of the largest construction projects in the entire United States. Pioneering car manufacturer Tesla is building a 21 million square feet battery-producing ‘Gigafactory’, just east of the northern Nevada city, and Helix Electric has been instrumental in electrical construction. This is one of many projects currently underway for the company in the north of the state, this having opened a regional office earlier this year. Spearheading the drive to become number one in the area is Helix Electric’s Nevada President Victor Fuchs, who is quick to express the tremendous potential for business to thrive. “We think the northern
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Nevada market is going to boom,” he says. “With our skillset we’re working to become the leader in this region!” Giga-normous
The full spectrum of Helix’s skillset is being deployed at Tesla’s huge manufacturing site. Based near Reno, the ‘Gigafactory’ started production in January having broken ground in 2014. By the time it is fully operational in 2018, it will be able to produce more vehicle batteries than the entire global output of 2013. “We’ve been on the ‘Gigafactory’ project for the last 18 months, and have finished several pieces already,” comments Fuchs. “This is a 21 million square foot building, and thus far, we’ve completed work on the central plant, B section, the nitrogen
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plant and are now doing the ‘D and completed site will bring over 4,000 E Prime Wing’, which is roughly a new jobs to the area and is expected million and a half square feet.” to help Tesla reduce its production Helix is responsible for the costs by some 30 percent. one of the phases of electrical The factory will be powered by a work from the substation, which massive roof of solar panels which includes lighting, controls, will be installed towards tooling and more. the end of the project, “This is a very unique something which project and there Fuchs is more than aren’t many projects hopeful of playing a of this magnitude part in. The ultimate Helix Electric Annual Revenue being built across the aim for Tesla is for the country,” Fuchs adds. facility to be carbon “These are big numbers, neutral, just like its cars. but we are used to working on million-plus square feet projects.” Reno and beyond The site needs to be vast to ensure Although the Tesla project may production can keep up with the be one of the largest Helix has number of electric cars Tesla plans under construction, it is not the to release in the coming years. The only reason for establishing a
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permanent office in Reno. “We’ve made a commitment to become a local regional contractor in Reno,” says Fuchs. “Many of our key people have moved here and we’re looking for additional talented players to join our winning team.” Fuchs goes on to cite many completed and ongoing projects already on the books in northern Nevada, including several hotel projects such as a new ‘Hampton Inn’ by Hilton in Sparks, along with numerous multi-family residential complexes. The next few months will also see the design stage of various industrial projects move into construction, at which Helix will provide electrical expertise. Education and medical sectors are also active for Helix in the region, where in Fallon, one hour east of Reno, the company is expanding the Banner Hospital. Fallon is also home to the Navy’s “Top Gun” training program, with Helix being part of the P420 Air Wing Squadron and P418 Vehicle Maintenance projects, as well as the electrical for officers’ housing.
Victor Fuchs President “We pride ourselves on being a diverse contractor and we try to get involved in many different sectors,” says Fuchs. “Whatever the requirement, we can work a solution.” Indeed, the full range of industry expertise spans commercial and retail, correctional, design- build, education, government and military, healthcare and biotech, hospitality and entertainment, industrial, mission critical, multi-family residential, renewable energy and transportation.
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HELIX ELECTRIC
Legacy
Darren Vanderford Vice President
Founded in California in 1985, Helix has been building up its vast portfolio for more than 30 years. It now comprises two standalone companies - one with offices all over the state of California, Washington DC, Hawaii and the Nevada arm that formed in 2001 with sites in Las Vegas and Reno. Fuchs first joined in 1987 as Assistant Estimator climbing through the ranks of Division Manager, Vice President and
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Executive Vice President, before moving to Nevada and acquiring the Las Vegas company. Under his helm, Nevadaâ&#x20AC;&#x2122;s Helix Electric is now the largest non-union electrical contractor in the state. In the last year it constructed a huge PV Solar energy-saving system for IKEAâ&#x20AC;&#x2122;s Las Vegas store and created a training center for people with disabilities to learn skills to live independently. The IKEA store opened last March with more than 3,000 solar panels
Robert Johnson Sr. VP Major Projects
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David Wood VP Estimating
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on its rooftop, custom- designed and installed by Helix. These are preventing over a thousand tons of CO2 emissions from being released into the atmosphere each year. It’s the biggest solar panel project of its kind in the state, and the furniture retailer’s largest outlet in southern Nevada. In the spring of last year, Helix was involved in building two unique ‘state of the art’ facilities for the Regional Transportation Commission’s Mobility Training
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Center. One is an indoor simulated streetscape complete with crosswalks, actual buses and a sound system playing traffic noise, for participants with disabilities to become comfortable crossing busy lanes of traffic and navigating the public transport system in a safe environment. The second facility is a fully equipped two bedroom house with a kitchen and bathroom, for the blind to acquire the skills necessary to go about a daily routine independently. Called Angela’s
Michael Vita VP Special Projects House, this is the only training facility for the blind in Nevada. Several of these projects have won awards. The IKEA construction won the ‘Spotlight’ Special award for “Best Retail Building from the NAIOP”, the leading trade association for commercial properties. The mobility center was named Best Public Building by ENR Southwest, an American construction magazine. Acquiring these innovative projects is directly proportional to carefully watching the market to see what’s
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HELIX ELECTRIC
WE HAVE AN OUTSTANDING [SAFETY] record and our Regional Director of Safety Lawrence Fry has done a great job
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coming up. “We have a great procurement team,” Fuchs says, “and we see what projects there are. We approach the customers, and because of our longevity, financial strength and competitive pricing we’re very fortunate that a significant number of times we’ve been selected by customers to be their contractor of choice.” Such an impressive resume was a key factor in securing the work with Tesla, as Fuchs goes on to explain: “It is about our experience, our people, the safety and training of our field resources, and our supervisors who have made a commitment to relocate to Reno to see this exciting project through.” Health and safety: no compromise
Another crucial factor that places Helix in a strong position to win contracts is an exemplary health and safety record. “We don’t compromise on safety, and our stats prove this,” Fuchs states. “We have an outstanding record and Lawrence Fry, our
Earl Ward Div. Manager Service Regional Director of Safety, has done a great job! We are very focused on job site inspections and have picked up a number of top safety awards.” One such award recently won was the State of Nevada, Safety Consultation and Training’s “SHARP” award, which stands for “Safety and Health Achievement Recognition Program”. Fuchs is correct to point to statistics, which show that in 11 OSHA Inspections since the start of 2016 the company has recorded zero citations or incidents. Over
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the past five years, 39 inspections have also yielded zero citations. Last year saw the company achieve an average health and safety audit score of 86.15 percent, a new record. As well as attracting customers, these elements make Helix equally appealing as a place to work. There is a steady stream of high profile projects to work on and plenty of opportunity for employees to move up and along within the company’s ranks. “We have opportunities for people to grow,” Fuchs says. “We have a tremendous amount of
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backlog, which gives our people a significant amount of stability and job security. Our people know there’s steady work here.” There’s a very strong focus on in-house training. Helix promotes internships by partnering with a variety of mainstream colleges and has their very own academy, “Helix University”, which has existed since the organization was founded, and offers ongoing classes for their employees.
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Giving back
Over the years Helix has regularly been involved with many philanthropic causes. “We do a lot of charitable work. We raise money for charitable organizations chosen by our employees and we do biannual golf fundraisers,” Fuchs says. The Helix Golf Tournament raises money for various charities, including the Down Syndrome Organization of Southern Nevada and the 22 Warriors Foundation, a non-profit body dedicated to putting a stop to veterans’ suicides. Last year’s tournaments alone raised close to $15,000. Other endeavors have included giving toys to children whose parents cannot afford them. In the run-up to Christmas, and in February this year, Helix won an award for donating to the “Nevada Educational Choice Scholarship Program”, an initiative to help students with limited economic means attend private schools. These factors all contribute to Helix remaining one of the most successful and responsible electrical contractor in Nevada. Fuchs says
it’s all down to its people. “The commitment and dedication of our people, and our management’s dedication to our people, equates to training opportunities, benefits, and longevity.” Looking ahead, Helix’s Nevada objectives are bold ones. Fuchs is targeting business wins of more than $140 million, with $25 million in sales coming from Reno and northern Nevada. Maturation of the Reno office’s operations, with a formulated strategy and leadership structure in place, are key operational targets also in place for 2017. This all feeds into where Fuchs sees Helix in the next few years. “Hopefully a leader of the market, with a very strong backlog of doing the key projects in Nevada,” he concludes.
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SHIFTING FOCUS: A XI International moves into intelligent fuel management consultancy
After more than 20 years as a market leading manufacturer of fuel maintenance and polishing services, AXI International turns to a future of consulting Written by Dale Benton Produced by Tom Venturo
A X I I N T E R N AT I O N A L
A
s a manufacturer of Intelligent Fuel Management™ solutions, AXI International is known worldwide as the industry leader.
For over 20 years the company has established a reputation for innovation and high quality fuel management products, but over recent years AXI International has transformed its practice, not only by manufacturing fuel management solutions, but also by taking on a consulting role and entering the booming data center industry. “The mission of the company has always been to optimize the quality of fuel,” says Jeffrey Poirier, Chief Operating Officer at AXI International. “AXI International provides a complete integrated solution within a niche market of fuel filtration and optimization. Mission critical projects such as data centers include not only filtration systems but, fuel tanks, transfer systems, pump sets and gen-sets.”
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Finding focus
Poirier has spent his career in engineering, through the railroad industry and working in aerospace before working his way up through AXI from engineer to COO. His progression has coincided with the transformation of the company focus, with Poirier and AXI spotting certain gaps in the market. Gaps, that AXI could fill. “AXI excels in designing and engineering complex, custom engineered fuel system solutions that set an industry standard. We invest a considerable amount of time and money in research and development to create innovative products and services every year,” he says. “The company started to see other items in the market that we could pull into our repertoire. We knew the competitors in the market and how they are perceived and thought there was some serious ground to be taken. AXI has certainly made up a lot of that ground since.” “Data center projects are very
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extensive. They include a large number of engines, tanks, and fuel system components. Our goal as an Original Equipment Manufacturer (OEM) is to provide our customers with high quality fuel management solutions to ensure their facilities maintain reliable standby power,” he says. Throughout its 20 years, AXI International has developed a broad portfolio of major international and national clients as well as smaller local customers. Industry leading turnaround times, innovative and environmentally sustainable technologies and customer support and training, represents the key to future success of the business for Poirier.
Setting an industry standard
AXI is unique in that it provides custom engineered solutions for its customers. We offer more than a “one size fits all” approach. Data centers are not the only projects that fall within the multitude of markets that AXI serves. As an Original Equipment Manufacturer (OEM), AXI International has worked with customers in many industries, including: healthcare, agriculture, perishable storage and distribution, marine, power generation, transportation, mining, and other mission critical facilities. From providing custom engineered solutions for large mission critical projects to offering fuel additives in the transportation industry,
AXI INTERNATIONAL OFFERS TOTAL FUEL MAINTENANCE SOLUTIONS.
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WESSEL VAN TONDER, A X I I N T E R N AT I O N A L C EO
W e s s e l V a n To n d e r i s a performance-driven, forwardthinking, multi-lingual business operations executive with a market focus on global fuel economics. Wes sel’s cur rent vision is geared towards environmentally sustainable fuel optimization technologies and innovative clean fuel engineering. As a graduate of the University of S o u t h A f r i c a , V a n To n d e r u t i l i z e s h i s unique international exper tise to br oaden A X I Inter national’s global market outreach. Prior to acquiring A XI International, Wes sel’s previous ex per ience includes a proven track record of developing companies in the oil and e n e r g y i n d u s t r y. H i s s u c c e s s s t e m s from holding a senior level position wit h one of A f r ic a’s larges t f uel distributors.
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AXI’s product offering helps maintain fuel at an optimal standard in any application. “The primary driving force behind AXI’s entrepreneurism is our unique ability to improve the way fuel is used or stored in a way that is sustainable and environmentally responsible. Most importantly, our company’s main goal and entrepreneurial motivation is ensuring safe, reliable fuel for diesel powered engines world-wide,” says Poirier. Looking back, moving forward
In 1994, AXI International, then known as Algae-X, had a heavy focus on addressing the needs of marinerelated fuel issues. With just the fuel conditioner and the flagship fuel additive, AFC-705, AXI began making waves in the marine industry. As time progressed, AXI saw an opportunity to expand its product offering beyond fuel maintenance, and far beyond the marine industry. As the needs of the world changed, so did AXI. Today, the company prides itself on staying ahead of the curve
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by introducing new and unique technologies that offer complete fuel management for companies around the globe, regardless of the industry. “The company has had great products for well over 20 years, so while we are expanding into new markets and product offerings, we wanted to build on the core of our success”, says Poirier. One major factor in the recent success of the business has been the role change towards consultation and engineering support, building key relationships at the ground level
AXI INTERNATIONAL PERFORMS A VISUAL DEMONSTRATION OF THE COMBUSTION ENHANCING PROPERTIES OF AFC 710.
A X I’S F T S-2000 SERIES AUTOMATIC FUEL TRANSFER SYSTEM IS A HE AV Y-DUT Y FUEL TR ANSFER SYSTEM THAT MOV ES FUEL BET WEEN THE SOURCE TANK AND THE DEMANDING TANK.
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A X I I N T E R N AT I O N A L
A XI INTERNATIONAL PRODUCT OFFERING
35
Number of employees at AXI International
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of data center project development. One of AXIâ&#x20AC;&#x2122;s goals is to advise both end users and data center professionals of the potential pit falls caused by fuel degradation on a mission critical facility. A rapidly growing industry, like data storage, with exponential growth can often succumb to unforeseen issues due to project time constraints and insufficient planning. â&#x20AC;&#x153;We feel it is our responsibility
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to educate on the issues we see, give background as to why those problems exist, and provide solutions for fixing problems, not treating symptoms,” says Poirier. Learning and growing
This culture of learning and educating comes from extensive market research. Poirier and AXI invest heavily in understanding the market, the technology trends, and more importantly – the problems across the industry. “It’s about following up on existing problems in the industry, properly analysing the issues and generating the best solutions, or stepping outside the box and creating a new way of looking at an old problem,” he says. The educational approach taken by AXI is propagated from upper management down through the business. This allows the engineers and the sales team to understand the service, products, and the components of a project in order to meet the needs and
JEFF POIRIER,
A X I I N T E R N AT I O N A L C OO
Since joining A XI International in April of 2 0 14 , J e f f P o i r i e r h a s d e v e l o p e d a m y r i a d of new products and systems to facilitate Intelligent Fuel Management™ solutions. A graduate from the University of Maine with a M a s ter ’s in M echanic al E ngineer ing, J ef f als o h o l d s a n M B A f r o m D ave n p o r t U n i ve r s i t y. A s the Chief Operating Officer of the Fort Myersb a s e d g l o b a l c o m p a n y, J e f f s p e c i a l i z e s i n t h e following engineering topics: optimization techniques, numerical methods, fluid flow control, finite element method, 3D CAD Development, and robotic controls. From new green technology to complete fuel management solutions, Jeff has led his team to many s i g n i f i c a n t a d v a n c e m e n t s i n t h e f u e l i n d u s t r y. Jeff Poirier designed the concepts for: •Spill prevention filter draining •Continuous filtration during filter changing •Multipoint flow path •Development of automated day trading algorithm •Published: “Multi-objective Optimization o f L a s e r- w e l d e d S t e e l S a n d w i c h P a n e l s Using a Genetic A lgorithm” in Engineering S t r u c t u r e s , 2 0 13
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A X I I N T E R N AT I O N A L
THE A X I RE ADY-USE FUEL TANK IS A FUEL STORAGE TANKCONSTRUCTED TO CUSTOMER SPECIFICATIONS WITH VARIOUSDESIGNS RANGING FROM SINGLE WALL OR DOUBLE WALL CONSTRUCTION, PER UL142 SPECIFICATIONS, TO FIRE SAFET Y TANKS, PER UL-2085 SPECIFICATIONS.
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requirements of the customer. “If you imagine your business model as an onion, each layer representing a step between the internal organization, from the engineering team to the sales network, and finally the customer, you want the company message and knowledge to properly transition between layers with minimal loss of message content,” he says. Technology innovation
Changes in engine technology, fuel production, the introduction of bioblends, along with questionable delivery methods, have created a number of challenges regarding the stability and reliability of fuel.
A FC-705 IS A UNIQUE AND POWERFUL BROADSPECTRUM FUEL ADDITIVE
A X I IN T ERN AT ION A L’ S COO, JEF F POIRIER EXPLAINS HOW OUR TOTAL FUEL MAINTENANCE SOLUTION CAN BE INCORP OR AT E D IN T O YOUR F A CIL I T Y.
It is AXI’s responsibility to educate and inform the public and its customers of the ongoing changes in fuel production and the impact these changes have on the engines they depend on every day. Some of AXI’s more notable innovative products include a first ever solar powered automated multi-stage fuel filtration system, an optical fuel particle counter, and a fully automated additive injection system. AXI has created novel approaches to spill prevention filter draining, continuous filtration during filter changing, and the creation of multiple flow path systems for difficult tanks.
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A X I I N T E R N AT I O N A L
MICHAEL CAMPBELL, A X I I N T E R N AT I O N A L C F O
Michael Campbell, hands-on Finance and Accounting E xecutive with ex tensive leadership and exper tise driving and creating scalable revenue and financial improvement strategies for global leaders throughout multiple industries Tr u s t e d a d v i s o r a n d t r u e b u s i n e s s par tner to executive leadership, leading the performance of financial strategic planning, operational restructuring, and motivational leadership, coupled with an innate ability to build strong relationships For ward-thinking leadership with strength in audits, compliance issues, corporate f i n a n c e , I n f o r m a t i o n Te c h n o l o g y , a n d b e s t practices policy development. Graduate of National University of Ireland G a l w ay. Michael has worked with many large Fortune 500 companies over the span of his career such as Schneider Electric, N u t r icia- D a no ne a nd H einz, t o name a few.
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Over the last decade, Poirier has seen a major shift in the engine technologies towards sustainability and environmental responsibility, stemming from increasingly stringent governmental and industry standards. From reducing harmful emissions to providing solutions for modern diesel engines, AXI remains at the forefront of these changes. “Technology has improved engines, but fuel itself has almost regressed. For these reasons, fuel filtration technology is crucial to sustaining the life of engines and reducing operational downtime,” he says. Consulting: AXI’s competitive advantage
AXI’s impact in the fuel storage industry has extended far beyond its doors. AXI provides an education and training platform for its
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worldwide reseller network, in the form of green screen webinars, onsite lectures, and interactive web hosted presentation tools. In order to be a successful manufacturing business, the company stresses the importance of properly training the industry and its trusted partners. CHRISTIAN SMITH, AXI International provides a A X I I N T E R N AT I O N A L V P O F S A L E S series of educational lectures and presentations on fuel degradation and proper fuel system design for both internal employees and its channel sales network. The goal of As vice president of sales for A XI, Christian this program is to create awareness Smith is responsible for sales, growth initiatives, development of strategic within the market and propagate A X I ’ S F T S - 2 0 0 0 S EpRaI rE tSn Ae U r sT Oa M n dA TcIhCaFnUnEeLl TsRaAl eNsS Fr Ee Rl aSt iYoSnTsEhMi pIsS A H E A V Y - D U T Y F U E L TwRoArNl dS w F Ei dR eS. Y SSTi nE M E T, W E E N c eT jHoAi nT i M n gO VAEXSI Fi Un E2L 0B11 optimal fuel system design THE SOURCE TANK AND THE DEMANDING TANK. Christian has played an instrumental role in practices throughout the industry. the development and success of A XI on an inter national level. C hr is tian’s educ ational “AXI International will continue background includes degrees in Electrical Engineering and Business Administration. to build off of its successful educational platform and expand Prior to joining A XI, Christian has held multiple sales and leadership positions in by pioneering new methods and telecommunications, systems integration and construction. With over 20 years of technology that will benefit our experience in sales, business development customers, partners, and the and management, Christian has worked with many large Fortune 500 companies over the enviornment in the years to come.” s p a n o f h i s c a r e e r. S o m e o f t h e m o s t r e c e n t companies include Amazon, Microsoft, Google and Facebook. He has also worked with key influential clients in the government and military sectors.
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The American Culinary Federation:
FOODâ&#x20AC;&#x2122;S JEDI ACADEMY Top chef Nathan J. Dirnberger describes what ACF did for him and how he is now helping others achieve their ambitions Written by Nathan J. Dirnberger Produced by Lee Cornell
A S S O C I AT I O N - A M E R I C A N C U L I N A R Y F E D E R AT I O N ( A C F )
W
hen we eat something awesome, magic happens. The most forward thinking culinary minds make an effort to see beyond the kitchens they work in. Past the science of cooking, we are looking into quantum physics. When we eat something awesome, we are consuming the delicious result of a series of thoughts becoming a tangible experience, mouthwatering, almost orgasmic flavors bursting in our mouths. We all have had the experince of food creating happiness in our lives. The top chefs are discovering the cutting edge of cooking lies far beyond the food itself. How is that related to quantum physics? Your thoughts, they become things. A good example your mind creating an opinion about what your are reading at this second. Or a cook taking a basket full of ingredients and creating, using thoughts, an amazing dish from what was previously just a pile of ingredients. Either way they are examples of the universe and our thoughts interacting with each other. Chefs, the good ones, are like Jedi Masters. Honing, refining, and mastering themselves and their craft is an art. Becoming a chef requires certain neural pathways in the brain to be stimulated. Over time those pathways lead to an incredible ability to manipulate physics and chemistry. The result is the quick work of that cook taking the basket of ingredients and turning them into that mind stimulating goodness we savor long after we are done eating.
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The cutting edge of cooking is seeing far beyond just the ingredients we have in front of us. Chefs have an inherent duty to lead our communities. In this sense we have to envision the world we want to see, and our thoughts will start to become things. Just as we envision the finished plate and start to work towards it, using physics,
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chemistry, and yes quantum physics to make it reality. Food is something that we all have in common. It is tied to our cultures, our ealiest memories as children and ultimately to our health. Chefs can
FDF WORLD
help our society to realize their potential of impact, through the simple concept of cooking- the process of imagining and acting upon that imagination. The American Culinary Federation
was and is my very own Jedi Academy. It has existed spiritually since the early part of the American Revolution and was formally organized into the Federation of today in 1929. It is the Standard of Excellence for Chefs. The role of the ACF is to be the leader in professional and personal development for the culinary
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community. It provides opportunities for people to grow and experiment with food. Certification, accreditation, and continuing education are all vital parts of the ACF that enable standards of excellence to be continually raised for the culinary field. Beyond these important structural components, this organization fosters the relationships of true cooks. Men and women of all walks of life, ethnicity and social status learn from one another through this organization. More importantly organizations like the ACF have helped to raise chefs like me to now be in the position to use our thoughts to help innovate in our field. Innovation and trendsetting are some of the most important areas of the culinary industry that are incubated through the ACF. If “Jasmine Melon Sorbet”, made using liquid nitrogen, scooped into a miniature ice cream cone, topped with Strawberry Poprocks sounds like a mind blowing experience, it was. That is just one example of this organization’s ability to tap and develop people’s potential. I was fortunate to do a Chef Driven Bar and Beverage Innovation Demo
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in Chicago this past February for the Western Regional Conference. I created the most outlandish menu I could imagine, submitted a proposal, and that theoretical creation of my thoughts became magic reality. Chapters make up the Federation and each contributes to their own community. Our local chapter sets trends with everything, from our own live Food Network style cooking battle to culinary Knowledge Bowls. Our members make it fun to get together and play with likeminded friends. Benefits of a membership include all of the resources of this prestigious organization, but most importantly the mentorship of other chefs. Now back to the quantum physics. If we understand the concept of our thoughts interacting with the universe, and practice daily within our professions and personal lives to actively observe the marvel of our thoughts creating realities, we can inspire others to do the same. The world has a lot of issues that require our minds to focus on in order to create change. The environment, food, social values, relationships, poverty,
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war, you name it, they can all use some of our focus. What works on a small scale will also work on a large scale- far beyond our kitchens.
GOLDEN
VALLEY
NATURAL:
TRAIL FOOD FOR THE DISCERNING Our hunter-gatherer ancestors found they could extend the shelf life of the game they killed by cutting it into strips and drying it in the sun: today we call it jerky, a name derived from its Native American name Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Lee Cornell
G O L D E N VA L L E Y N AT U R A L
J
erky is a food that has everything going for it. It is convenient, nutritious, healthy and tasty – and its consumers are aware of the association it has with the frontier spirit, with adventure and self-reliance. The US market for jerky is worth at least $15 billion a year, reflecting a boom in popularity, however in recent years sales of the traditional ‘gas station’ product have flattened, a trend foreseen as long ago as 2003 by Golden Valley Natural, one of the nation’s leading meat snack producers. “Our company dates back to 1968, when it was known as King B Beef Jerky,” says the CEO of this family-owned company Bryce Esplin. “However, in 2001 our founders saw a strong trend developing in the natural and organic sector, and launched the Golden Valley Natural product line – in 2003 the KB brand was divested. Since then we have focused on natural, organic products, working with consumers and retailers in this growing market whether with our own branded products or making products for own-label store groups.”
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Moving into the premium market at that time enabled Golden Valley Natural to take advantage of market changes, in the USA and reflected globally, that continue to accelerate today. As Esplin says: â&#x20AC;&#x153;Even in convenience stores and the supermarkets there is more emphasis on healthy, natural products with some consumers really keen on sourcing organic foods. The jerky industry as a whole is trending our way because of the renewed emphasis on health in snacking: consumers looking for something new to add to their diet that is convenient and also healthy for them. People are not so comfortable with the potato chips and a candy bar option!â&#x20AC;?
Consumers have radically increased their awareness of the quality of what they eat and the sustainability of the ingredients, he adds. They buy because they like the taste and texture and convenience of the offering, but national and global THE
JERKY
INDUSTRY
AS A WHOLE IS TRENDING OUR WAY BECAUSE OF THE RENEWED
EMPHASIS ON HEALTH IN
SNACKING
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G O L D E N VA L L E Y N AT U R A L
Seque rest volorum aute velestio intem illibus es qui ut alit et, sita iuntur?
Bryce Esplin, CEO Bryce Esplin was born and raised in Idaho growing up on a 2,000 cow family dairy farm. At age 12 Bryce ran his first P&L analyzing the payback of buying his own cattle leading him to invest in the family farm. Bryce has always enjoyed learning new things and has excelled in his
academic endeavors earning his undergraduate degree from BYU-Idaho and then completing his MBA at Washington State University. Bryce has been with Golden Valley since 2008 working within each division of the company before being promoted to CEO in 2013.
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regulations mean that nutritional information, salt and fat content have to be available. The print may be small but increasing numbers of people read it before they buy. Golden Valley Natural makes a very broad range of different jerky options, from the classic beef product it is again selling following expiry of a non-compete period after the sale of the KB brand, through all-natural non-GMO buffalo, turkey, pork and beef jerky, to fully USDA-certified organic products. Organic products have to meet the most thoroughgoing standards covering feeds, pasture and medications used at every stage of rearing and production. Golden Valley Natural’s definition of ‘natural’ is almost as rigorous
550
– the product contains nothing artificial, no genetically modified organisms (GMOs), no preservatives, no sodium salts or monosodium glutamate, and no hormones. These are important considerations for many consumers, who already appreciate jerky for its low fat, high protein profile. Another trend is towards artisanal choices, with a variety of different meats being added to the range. GVN rears its own bison at its extensive ranches in Idaho and South Dakota – these iconic wild beasts are raised in an entirely natural environment, free to roam at will. No wonder then that Golden Valley Natural’s buffalo Jerky is finding huge favor among American consumers, along with the Intermountain Bison subsidiary
Number of employees at Golden Valley Natural
Trusted Packaging Partner to Golden Valley for 15 Years “Our 15 year relationship “Isequidu citistes nis et rem as Golden Valley Natural’s packaging supplier doluptatem velit mi, utem speaks to our ability to provide consistently high doluptin nimil es et et audit quality packaging, exceptional service, and alit estibus et dellaborum” competitive pricing.” co
– Name, Position
We specialize in ultra-high barrier, hermetically sealed pouches for jerky, confectionery, pet food, liquid, and many other packaging applications, manufacturing all pouch styles and sizes available in the marketplace as well as rollstock films.
For more information, contact Chris Klee:
chrisklee@progressivepackaging.net
from which people can buy fresh buffalo meat. In fact, the fastest growing product is artisanal, nonGMO certified beef and turkey jerky marketed under the Ascend brand. It’s not so much that people are consciously rejecting GMO, he says, as that they really want to have that information at their fingertips. Another subsidiary brand, Healthy Partner Pet Snacks, has manufactured pet snacks since 2008. These are produced to exactly the same standard as
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773-549-6749
WE DESIGNED OUR SHELLEY FACILITY TO MEET ALL
GLOBAL
FOOD SAFETY REGULATIONS
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jerky for human consumption, being 100 percent all-natural, gluten free, with no additives or preservatives. Americans, it may be fair to say, are just as careful about what they feed their animals as they are about their own health, and they like the assurance that they are made in the USA.
enough to handle all production demands, however as it approached capacity it became clear that a new factory would be needed. Accordingly a new state-of-theart plant was built upon a greenfield site at Shelley, Idaho, where the company is now headquartered. Idaho Falls is still able to produce all product lines, but the Shelley facility, Supply strength much larger at 200,000 square feet, Idaho, being the most heavily has now been in production for two forested state, it is not able to years. Esplin explains: â&#x20AC;&#x153;We designed produce anything like enough meat it to meet all global food safety to meet Golden Valley Naturalâ&#x20AC;&#x2122;s regulations. There is no possibility of needs, so the company operates a cross-contamination between the global supply chain. Up until 2014 the lines. Raw materials are received 66,000 square foot manufacturing at one end of the building, and facility at Idaho Falls was big production flows are straightforward
G O L D E N VA L L E Y N AT U R A L
through to packaging, packing and dispatch at the other end.” When the facility opened in 2015 it employed 200 - today it employs 400 of Golden Valley Natural’s 550 employees, which illustrates the speed with which production has ramped up in that short time. And there’s no danger of this plant reaching capacity any time soon: “We can increase production output at Shelley to three times its current level,” he says. “Our robust third party ERP system, upgraded six months ago, helps schedule production needs, and this is tied to our MRP so we can ensure that at all times we have the right quantity of all necessary meats, spices, packaging materials and the like.
I BELIEVE READING THESE BOOKS
FORCES US TO
INVEST IN OURSELVES.
WE LEARN HOW OTHER PEOPLE HANDLE THINGS AND SEE
HOW TO BECOME
BETTER LEADERS
NOT JUST AT WORK
BUT AT HOME, IN THE COMMUNITY AND
IN OUR COMPANY
Best in the world
The market for natural food snacks in the USA and Canada has plenty of room for growth, however Golden Valley Natural’s vision is to be ‘the best meat snack company in the world’. Bryce Esplin takes a cautious approach to international expansion, but reveals that the company is
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already selling to Japan (where it is actively pursuing further growth) and Mexico, as well as Canada. Now he is looking toward Europe. In May this year GVN will be attending Zoomark International at Bologna, Italy, to promote its
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pet snack product lines. This is a toe-in-the-water exercise at the moment, but it’s the precursor to serious engagement with a wide open market in Europe. For the foreseeable future it will be possible to supply global markets from Idaho, but he does not rule out the construction of overseas plants as demand grows. Bryce Esplin, a graduate in business administration, also holds an MBA from Washington State University – asked about his vision for the company he immediately zeros in on staff development. To supplement the training programs that the company runs at all levels, he focuses on an approach that while not unique is still unusual – the reading and discussion of inspirational books. “I believe reading these books forces us to
invest in ourselves. We learn how other people handle things and see how to become better leaders not just at work but at home, in the community and in our company. We get to learn and share ideas with our peers – in discussion you get insights you might not have picked up on a first reading.” Among the books they have looked at are the Arbinger Institute’s Leadership and Self Deception, Good to Great by Jim Collins, Patrick Lencioni books like The Ideal Team Player or The Five Dysfunctions, Outliers and Tipping Point by Malcolm Gladwell and Who Moved My Cheese by Ken Blanchard. The result – business excellence, allied to manufacturing best practices and a product that almost sells itself. That looks like a recipe for success.
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THE PATH OF
RESILIENCE The seventh annual Uptime Institute Data Center Industry Survey shows that businesses are as wedded as ever to their data centers, cloud or no cloud Written by John Oâ&#x20AC;&#x2122;Hanlon
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he cost of not having a robust plan for managing your company’s data properly can be very high – a major outage at a data center is an existential threat to any business that has relies on it to store and manage its operational and transactional processes. Even if recovery is possible, the consequences can set the business back severely through loss of productivity and the consequent dip in revenue. Down the line, customer relations may sour as a result of system unreliability. The list goes on and any senior executive should be concerned about it – after all, top jobs may be on the line as the dominoes fall. If they want to sleep better at night they should be moving towards IT-based resiliency, says Matt Stansberry, Uptime Institute’s Senior Director of Content & Publications. Uptime Institute is best known for its Tier Certification, accepted as the design, build and operational standard for data centers round the globe. Furthermore one of its key roles is to
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help business assess and improve their strategies in respect of data management. Any colossus of the digital world, Google or Amazon, for example, could lose an entire data center and nobody would notice because the affected traffic would be re-routed elsewhere in the world. This is the paradigm of multi-site application resiliency, and the world of enterprise is moving towards it though it may take some time before that tanker turns to its new heading. This year’s Data Center Industry Survey, drawn from the perspectives of more than 1,000 international data center professionals and IT practitioners, reveals that IT resilience is growing and that 68 percent of businesses rely on it. The extent varies from sector to sector – for example 85 percent of logistics companies have a multi-site resiliency strategy that incorporates multiple data centers and relies on live IT application failover. Surprisingly, retail can only muster 58 percent and is one of the sectors with the lowest adoption rate. What really surprises Matt
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Stansberry though is that only a third of companies say that they will meet the demand for increased data center capacity by shifting workloads to the cloud. “Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power.” One statistic thrown up by the survey has changed very little over the last four years. 65 percent of organizations deploy their IT assets in an enterpriseowned data center; 22 percent use a colocation or multi-tenant data center provider and only 13 percent have moved their assets to the cloud. “It
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Matt Stansberry is the Uptime Institute Senior Director of Content & Publications and Program Director for Uptime Institute Symposium. He has researched the convergence of technology, facility management, and energy issues in the data center since 2003. Mr. Stansberry operates the Uptime Institute social media outlets (Blog, Twitter, and YouTube channel), conducts the annual data center survey, and develops the agenda for Uptime Institute industry events including Symposium and Charrette. 160
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“Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power” – MATT STANSBERRY, Senior Director of Content & Publications
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is moving slower than I’d have thought,” he says. “It is probably because it’s not easy to re-architect their legacy applications for a cloud environment.” Digital transformation is a seismic and traumatic operation for a large organization, and it can be costly too, but it does clear the way to future growth. So don’t expect an exodus of enterprise data centers’ workloads to co-location or the cloud. Inertia is an enemy to change. Stansberry predicts that investment in traditional data centers will continue for some years to come. Though Uptime Institute still earns its bread by monitoring the design, build, commissioning and operation of data centers, it has a big role in promoting effective management policies to its clients and across its network. More than 70 percent of respondents to the 2017 survey admit that their organizational processes for evaluating colocation and cloud providers left room for improvement and at worst were incoherent. “Managers may
VIDEO: Uptime
Institute’s 2017 Data Center Industry Survey Results
not have the breadth of vision to make effective decisions. We are really going to work on helping people look across silos.” The survey does show that there’s a much more realistic awareness of the business critical nature of data to a business and the consequences of outages. However, though 90 percent of organizations say they conduct root cause analysis of any IT outage, only 60 percent report that they measure the cost of downtime as a business metric. There still seems to be something of a gap between perception and action.
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REGISTER NOW!
2017 SCMA NATIONAL CONFERENCE Come to the heart of the nation and feel the pulse of a vibrant supply chain community at the SCMA National Conference, June 14-16, 2017, in Winnipeg, Manitoba. Hundreds of supply chain leaders will be LINKING THE NATION in a web of inspiration, innovation, and illumination. Come join the thought provoking discussions, gain insight from supply chain experts, and meet Canadaâ&#x20AC;&#x2122;s top supply chain professionals. This year SCMA is introducing new concepts to increase your conference experience! The Conference will kick off at the Canadian Museum for Human Rights (CMHR) on Wednesday, June 14, 2017. The CMHR is the first museum solely dedicated to the evolution, celebration and future of human rights. Join us to explore the exhibits and share the experience with your peers! WHERE The conference takes place at the RBC Convention Centre. SCMA has arranged discounted transportation and accommodation for delegates attending the Conference.
GET STARTED. Make industry connections at IRCE, where experts, insights and innovation converge. Ensure you are present at the can’t-miss event for retail professionals.
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SEPHORA
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Barbara Corcoran Shark Investor, “Shark Tank” TV Series
UNDER ARMOUR George Hanson VP, North America E-Commerce, Brand House Stores
JUNE 6-9, 2017
KIDBOX
Miki Racine Berardelli Chief Executive Officer
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