The next CIO CIONET Magazine, March 2018
Sharing and caring Contents EVENTS 4
Digital Excellence Awards CIONET Poland honoured leaders who brought digital transformation to a successful conclusion.
6
Change Management... and the human factor? Change management requires preventing natural resistance by thinking from the point of view of the people involved.
10 CIONET UK relaunch 2018 The UK represents a major opportunity for CIONET’s community development.
12 CIONET Colombia’s new start The new CIONET Colombia team plans to expand the community and integrate the academia.
14 The role of IT in innovation methodologies IT is the driving force behind business innovation and new digital business models.
16 Combining automation and people Looking at the impact of the digitalisation now taking place in various types of companies and processes
2
In a world where IT has become the nervous system of business and society, we believe that ClOs and their teams are the new heroes that drive change and innovation in their organisations. That’s why we have built CIONET, the leading global community of IT leaders.
possible platform to help them to succeed in realising their ambitions. We do this by understanding the ClOs’ needs and by fostering their development and growth.
It is our mission to provide CIONET members and partners with the best
We believe that community and collaboration are the heart of the organisations and society of the future. We are driven by the passion and ambition of our members.
THE NEXT CIO
CIO VISION
20 How to organise innovation?
36 The CIO, the guide through the tech revolution
When innovating, organisations have to ensure that it actually leads to strategically useful results.
26 What’s next in 2018? Looking at the impact of technological evolution on society.
28 Will the new retail be doom or a boon? Technology is opening up a world of opportunities in the whole supply chain.
33 Data mastery - a C-suite imperative Less than a quarter of the companies discuss data at Board level.
Idoia Maguregui, new President of CIONET Spain, wants to support the CIO in his important mission.
39 The agility recipe for IT transformation Agility and team building based on focused leadership and interpersonal respect lead to success.
42 From automation to predictive analytics How automation solutions in the utilities sector contribute to the creation of value and income.
44 Rethinking payment services with PayChallenge CIONET Portugal initiative boosts awareness and innovation in the payment networks.
CIONET PARTNERS 47 Have a look at the full list of CIONET’s Premium Business Partners and Business Partners.
The next CIO On June 11th, we welcome you in La Hulpe near Brussels at CIONEXT, the one-day, high-energy conference for future-proof CIOs looking to make a difference for themselves and their business. You can choose your own tailor-made program out of 18 workshops delivered by world-class thought leaders and visionaries. They will give you the skills, tools and learning you need to become a better Digital Expert, Corporate Entrepreneur, Business Leader and Connected Individual. At the same conference, the European CIO of the Year award winners will be announced, as well as the winners of the European Digital Leader, European Digital Innovator and European Research Paper of the Year awards. At CIONEXT you will also enjoy the many networking opportunities with your international peers in an exclusive location. Read more about CIONEXT and how to register on page 24 of this magazine. We have more exciting news. The CIONET app has been released both for Android and iOS devices. With this app you have the full power of our community at your disposal wherever you are and whenever you want. Use the CIONET app to connect with Digital Leaders like you, share insights, ask questions, join conversations and get exclusive content. Read more about the CIONET app and how to install it quickly on page 33 of this magazine. After last year’s relaunch of CIONET UK, we are very pleased to announce the start of a new stage at CIONET Peru under the leadership of its new Country Manager Guy Fort. CIONET Peru has taken on the commitment to lead the digital transformation in the country. More good news comes from Colombia where the new Country Manager Jaime Lara, together with the new Community Manager Patricia Guevara, will be the protagonists of CIONET Colombia’s further growth. We are also very glad to announce the launch of CIONET Argentina where Maria Victoria Valls is the Country Manager. Finally, CIONET Mexico and Guatemala will be launched next month.
Luc Hendrikx, CEO of CIONET International
In this magazine you will learn more about the role of IT as the driving force behind digital business innovation. We know that the CIO needs to take the lead as the guide through the tech revolution. But the next CIO also has to consider the impact of technological evolution on society and needs to take into account the human factor. As connected CIOs we never stop learning from each other and growing together to become the genuine Digital Leaders of the future. Realise your ambition!
3
CIONET Poland honoured leaders who brought digital transformation to a successful conclusion.
Digital Excellence Awards In the first edition of the prestigious Digital Excellence competition CIONET Poland granted the awards to companies which, in the process of digital transformation, gained a competitive advantage and achieved business results. Leaders who initiated such transformation processes, gave them strength and brought them to a successful conclusion were honoured.
In the first edition of the Digital Excellence Awards the prizes were awarded to: -- Wojciech Południewski, Digital Business Director, Hempel; -- Piotr Słomianny and Tomasz Lipnicki, Municipal Water and Sewage Company, Wroclaw; -- Arek Olchawa, CIO, Itaka; -- Tomasz Laskowski, CIO, Szczecin and Swinoujscie Seaports; -- the Ministry of Digital Affairs.
Digital Excellence Leader Who is a Digital Excellence Leader? It is a person who can read signs from the market and proposes innovative business models, who builds a modern, entrepreneurial team for carrying out business change, who has knowledge of modern solutions available on the market and is client and business driven, who can think without fear and limitations about a huge change. When awarding the prizes, the jury took into consideration achievements such as: performing an excellent digital transformation in a traditional enterprise, implementation of an innovative business model through disruption, implementation of business change, execution of a seemingly impossible project, development of an entrepreneurship culture, evolving the data usage model, etc.
4
EVENTS CIONET Poland
‘A Digital Excellence Leader can read signs from the market and proposes innovative business models.’
Indrajit Banerjee, Director of UNESCO’s Knowledge Societies Division
Addressing global problems The special guest at the Digital Excellence Awards Gala was Indrajit Banerjee, Director of UNESCO’s Knowledge Societies Division, who received the Digital Leader of the Year 2017 international award. Mr. Banerjee spoke about poverty and social exclusion in the world. “How can CIOs contribute to addressing global problems? It is worth reflecting on how we can take on a challenge, investigate a problem and find a solution to it”, he stated.
Digital transformation strategy What is a good strategy for digital transformation? According to Piotr
Muszyński, Vice-President of the Management Board of Orange Polska and Advisory Board President of CIONET Poland, a good strategy for the whole company is essential, not just a strategy for digital transformation. “A good strategy leads to good results. However, good results are not necessarily the result of a good strategy”, he mentioned. The prizes in the second edition of the Digital Excellence Awards competition will be awarded in October this year.
One of the achievements the jury took into consideration was the implementation of an innovative business model through disruption.
CIONET Poland EVENTS
5
Change management requires preventing natural resistance by thinking from the point of view of the people involved.
Change management... and the human factor? How do you see yourself as the protagonist of the digital transformation of your company? Provoked to make this reflection and endowed with small Lego blocks were the CIOs present at the meeting ‘Change Management... and the human factor?’ where they participated in dynamics about their role in this process.
Dynamics with the use of blocks from the Lego Serious Play series (Photo: Carolina Andrade)
At a CIONET Brazil IT leaders meeting in São Paulo last November, the participants discussed the theme ‘Change Management... and the human factor?’. According to the Chinese proverb that says ‘What I hear I forget; what I see, I remember and when I work on it, I understand’, they were invited to take part in an experiment with pieces of Lego Serious Play, a special series of the well-known plastic blocks enabling them to respond, using a totally different tool, to the question “How do you see yourself as the protagonist of the digital transformation of your company?” The experiment was conducted by consulting firm Fluunt 7, which acts on human development. At first, the executives tried to understand what this toy had to do with the reality of the company and how to use it to
6
EVENTS CIONET Brazil
Ana Keil, Fluunt7: “The more you play and imagine, the more answers you find to the challenges that arise in the company.” (Photo: Carolina Andrade)
represent their role in day-to-day work. However, the strangeness of the barrier was soon broken by the attractiveness of the proposal and all, without exception, went to work for a few minutes completing their representations. And the most interesting was yet to come. In the next stage, volunteers showed the audience their ‘models’, set out their challenges and explained how they thought about solving them.
Awaken the creative side Fluunt7 is certified in the Lego Serious Play methodology by Lego itself, in Denmark. The methodology uses the coloured blocks to create reflections on the corporate environment. According to the company’s CEO, Ana Keil, also a former CIO, what Fluunt7 does is to bring the child into the company to awaken the creative
‘The more you play and imagine, the more answers you find to the company’s challenges’ side of professionals. “The more you play and imagine, the more answers you find to the challenges that arise in the company”, said Ana and she added that the engagement, culture change, strategy, learning by hand, constructivism and cognitive thinking - through which you build results from your experience - are what leaders need in the digital transformation. The surprise and satisfaction of participants with the innovative experience was expressed in their faces.
The CIO is expected to become an organisation transformation agent.
CIONET Brazil EVENTS
7
João Vicente Gonçalves, president of the Human Change Management Institute of Brazil: “Managing change is to humanise it, to think of the changes from the point of view of the people involved.” (Photo: Carolina Andrade)
Readapt to the new reality
Renata Marques, CIO of Whirlpool: “The engagement of different profiles of stakeholders is important, so that they are part of the process from the design phase to the implementation.” (Photo: Carolina Andrade)
8
EVENTS CIONET Brazil
“Change Management has to readapt to the new reality where those who provide a service are now directly connected to those who need this service, as it is the case of Airbnb, Uber and many others.” This statement came from João Vicente Gonçalves, president of the Human Change Management Institute of Brazil, speaking of new skills that project leaders should have, which are strategy, technical skills and leadership. He added that the expectation is that the CIO becomes an organisation transformation agent. For Gonçalves, keynote speaker of the event, the most complex factor to be managed is the human factor. “Managing change is to humanise it, to think of the changes from the point of view of the people involved, thus preventing the natural resistance to having impact on the planned objectives.” And it claims that 75% of failures in change management are due to cultural issues that have not been treated properly. Gonçalves made suggestions to reduce the possibility of failure
‘The most complex factor to be managed is the human factor.’ following the Project Management Institute Document. They are: standard project management practices and programs; actively engaged sponsors and people management during the changes. He pointed out that the results almost double with the integration of change management and people management.
The engagement of different profiles of stakeholders is important for successful change management.
Engagement of different stakeholder profiles The CIO of Whirlpool, Renata Marques, reported experiences in the company such as the implementation of Google and more recently, the change of the central telephone system. She said that a pilot project was undertaken, but this turned out not to generate the expected results because it had no significant sampling of the various target groups within the company that would be affected by the projects. And she suggested processes that lead to the engagement of different profiles of stakeholders, so that they are part of the process from the design phase to their effective implementation.
with the speakers and active participation from the audience. Many of them presented practices carried out in their respective companies, pointing out errors, successes and doubts. The exchange of experiences leads to learning and development of IT leaders, which corresponds to the mission of CIONET.
of failures in change management are due to cultural issues that have not been treated properly.
2x
Exchanging experiences The Chief Digital Officer of Bandeirantes group Lyzbeth Cronembold, led the panel discussion
75+25 75%
This article was written by Stela Lachtermacher.
Results almost double with the integration of change management and people management.
Panel discussion with from left to right: Ana Keil, Fluunt7; João Vicente Gonçalves, the Human Change Management Institute; Renata Marques, Whirlpool; and Lyz Cronembold, Bandeirantes Group. (Photo: Carolina Andrade)
CIONET Brazil EVENTS
9
The UK represents a major opportunity for CIONET’s community development.
CIONET UK relaunch 2018 In December 2017 CIONET International took an important step towards relaunching its activities in one of Europe’s largest and most vibrant IT markets, the UK. Recently, a new company, CIONET UK Limited, was established with its hub in London, one of Europe’s leading centres of innovation. CIONET International recognises that the UK represents a major opportunity for community development but also that it is one of the most saturated markets for such services. IT spending in the UK amounted to $124 billion in 2017 according to government statistics. Much of this was concentrated within FTSE100 companies, some of whose IT budgets approached $3-5 billion. Government alone accounted for over $15 billion of IT spend. Given these figures, CIONET UK is excited to engage with leading CIOs in virtually every sector, from retail and energy to financial services and manufacturing.
Now is the time to develop the ‘next generation’ of CIOs
10
EVENTS CIONET United Kingdom
Advisory Board
124 According to government statistics IT spending in the UK amounted to $124 billion in 2017.
Four main research topics Roger Camrass, with over forty years of experience in the IT sector, and now a visiting professor at the University of Surrey, has worked with CIONET International to define an exciting programme of events for 2018 focused on four main research topics. This will help differentiate CIONET UK from the many competing services in the local market. CIONET UK’s plan is to conduct faceto-face interviews with leading CIOs prior to each meeting to report on best practice in areas such as emerging technologies, new business and IT service models, and transformation techniques.
‘CIONET UK is excited to engage with leading CIOs in virtually every sector.’ A second unique feature of CIONET’s 2018 programme is the partnership with the University of Surrey’s Centre for the Digital Economy (CoDE). Surrey has some of the most advanced digital assets in Europe, with a £100 million 5G innovation centre, and one of the world’s most
25,000 With some 25,000 tech start-ups in the Capital, CIONET UK has access to a myriad of innovation capabilities. advanced Space Labs. Surrey’s faculty includes a leading authority on Digital Platforms, recently recruited from MIT, and a blockchain research team which has been awarded 50% of all major government contracts in this vital area. The CoDE faculty will contribute to each research topic. The IT vendor community has already shown great enthusiasm in sponsoring business throughout 2018, with the prospect of 20-30 events and dinners. CIONET UK has also been approached to host major conferences as well as to speak at industry forums such as OptimiseIT during March. Given that many IT vendors have their European headquarters based in London, CIONET UK is optimistic that this will have a knock-on effect for other countries. With some 25,000 tech start-ups in the Capital, CIONET has access to a myriad of innovation capabilities, many of which will form attractive partners to larger organisations. Surrey is hosting a research meeting on ‘Patterns of Innovation’ in Shoreditch (often referred to as ‘Silicon Roundabout) that will be shared with CIONET UK.
To bring all these activities together and to start the important task of enrolling some 1,000 UK CIOs, CIONET UK has convened an Advisory Board of FTSE100 CIOs, top academics, and business leaders. Cathy Holley, the senior partner at the search firm, Savanah Group, has been instrumental in helping attract leading executives to the new Board. She shares our conviction that now is the time to develop the ‘next generation’ of CIOs, capable of leading many of the profound changes associated with digital business. Over the months ahead CIONET UK will share with you the programme as it develops, and the many research reports that will be published on best management practices and emerging technologies.
This article was written by Roger Camrass, director of CIONET UK Limited and visiting professor of the University of Surrey.
CIONET United Kingdom EVENTS
11
The new CIONET Colombia team plans to expand the community and integrate the academia.
CIONET Colombia’s new start We started this adventure one month ago when Juan Carlos Fouse told me that I was selected to organise and relaunch Colombia´s community with Community Manager Patricia Guevara. I took this on board with a great deal of expectations about the growth of the database and recruiting new Business Partners.
CIONET being one of the networks with the largest number of active members, with participation in countries such as Spain, Belgium and Germany among others, we have a great potential of success stories and experiences of many CIOs that can be shared with the community in Colombia. This will enable us to to acquire first hand, and from the protagonists, information that can enrich local developments. Taking into account the globalisation of companies and the fact that currently the ICT sector has the task of projecting new developments in
technology that impacts all sectors of the industry, CIONET - with its events and thematic groups - can add value by creating communication links between the sector and the CIOs. ond speaker, Flavio Bernocchpossible.
Offering tools to CIOs It is quite clear that in some cases the CIO is being displaced to issues of support and growth of the technology infrastructure of companies, and for this reason, through the CIONET community, we are in the process of offering them tools that allow our CIOs to become architects of
Patricia Guevara, Community Manager at CIONET Colombia (l.) and Jaime Lara Díaz, Country Manager of CIONET Colombia (r.)
12
EVENTS CIONET Columbia
Alejandro Santos,
‘CIONET’s great potential of success stories and experiences can be shared with the community in Colombia.’
technology solutions tailored to innovation requirements. One of our proposals is to expand our base of CIOs and increase the number of our Business Partners by creating paths that allow us to use successful technologies in different parts of the world and above all by integrating the academia to actively participate in the forums and other growth events of our CIOs. The academia is actively pursuing CIONET’s goals and it wishes to be involved in all activities that complement the new skills of CIOs.
New Advisory Board The first step in this process was building a new Advisory Board including members of different regions of Colombia. Currently we have 8 of 14 members. Martha Cepeda, CTO of Recaudo Bogotá, the operating logistics company of Bogotá Transport. She has a great deal of experience in technology. Martha is a technology leader oriented to digital innovation. Douglas González, CIO at Coltefinanciera. This Company with a board team in Medellín Colombia, is active in vertical financial markets. Douglas is in charge of technology solutions in different companies.
CIO at Aseguradora Solidaria de Colombia, an insurance company. Alejandro has more than 10 year of experience in that vertical market. Diego Alejandro Nieto, Director of the Technical Car and Transportation Chambers. Currently he is in charge of the digital transformation at Fasecolda with regard to car insurance. John Parra, CIO at El tiempo. His specialties are IT Management, IT Infrastructure, Information Security, Telecommunications, and Project Management. He has in-depth knowledge and experience in planning and implementation of new technology and IT solutions. Franky González, MBA, IT manager at the Ministry of Defence with more than 20 years of experience in IT vertical segments. Jorge Villalobos, Investigator and Consultant at Universidad de los Andes, PhD from the Université Joseph Fourier (Grenoble). He has been working more than 20 years in different academic programs.
Patricia Guevara
Jaime Lara
CIONET Colombia plans to start with the first Advisory Board meeting in April in order to define the topics and goals for this year.
Growth path Currently CIONET Colombia has 150 active CIOs. It wants to grow by another 150 CIOs during this year including local companies, large enterprises and public companies.
This article was written by Jaime Lara Díaz, Country Manager of CIONET Colombia.
The academia will actively participate in the forums and other growth events of CIONET Colombia.
CIONET Columbia EVENTS
13
IT is the driving force behind business innovation and new digital business models.
The role of IT in innovation methodologies How can IT play a vital role in driving innovation for an organisation’s business? Over 50 CIOs and digital business leaders discussed this question last December in Brussels.
At CIONET Belgium’s last conference of 2017, the participants had the chance to learn from four experienced digital business leaders. A first remarkable story came from Christine Billaud, Director Business Technology - Connected Solutions at Volvo Construction Equipment. She explained how Volvo CE is transforming into a services and solutions provider. This transformation is required because customer needs have changed. They are now looking for total solutions, quick responses and new business models. Today, they need a partner, not a supplier. Volvo CE responded to the new needs with the creation of tailormade solutions by combining machines with services supported by connectivity, e.g. fuel efficiency monitoring, productivity reports, financial reports, safety monitoring, etc. This transformation into a ‘Product-as-a-Service’ business model implied a shift in the mindset: from selling products to providing solutions. This is a challenging journey, but one that ultimately leads to tangible business success. Another compelling story came from Allan Farrell, CIO of FCR Media Belgium. In 2016 FCR took over the activities of Truvo, the publishing company of Belgium’s Yellow Pages. At that time, the Yellow Pages
14
EVENTS CIONET Belgium
industry faced massive transformation with the increasing importance of digital solutions. “Therefore, we had to reinvent ourselves to become a leading digital marketing agency”, explained Allan. His team embarked on an IT-led but business-driven digital transformation journey in partnership with every business function. At the same time, IT staff was reduced from 70 to 20 and overall IT cost from €14 million down to €6.5 million after the transformation. Nonetheless, Allan and his team managed to transform the IT organisation into a value-driven, integral part of the overall business. This resulted in significantly increased sales efficiency, higher customer satisfaction and the ability to supporting constant business innovation.
‘We had to reinvent ourselves.’ The Israeli ecosystem Recently, Birgitta Brys, Chief Customer Service Officer at Worldline Global, participated in a CIO inspiration journey to Israel. Together with 20 other Belgian CIOs and accompanied by representatives from CIONET and Deloitte, she explored the Israeli start-up ecosystem. Per capita, Israel has the highest venture capital, as well as the highest number of start-ups. There are more than 6,000 start-ups of which 25% were founded in the last year. Moreover Israel has the world’s highest overall R&D investments as a percentage of the GDP (4.2%). The Israeli ecosystem is characterised by a culture of innovation and change willingness, support of risk taking by acceptance of learning from failure,
and strong government support for tech skills education. Moreover, innovation by start-ups is well endorsed by multinational corporations. This approach to building an innovation ecosystem is an inspiring example of how large companies and governments in Europe could address innovation effectively. Günther Ghijsels, CDO & CIO at Randstad Group Belgium, explained how Randstad responds to a changing society: “We made a mind shift from running a people business to using technology to empower interaction between people. This way we can deliver greater value and better experiences - and ensure our leading position in an industry becoming predominantly digital and data-driven.” New ideas and concepts usually arise at local level. The local experimentation with a new idea is called the Kitchen/Garden phase. When that phase is successful the concept is copied to a few other countries where the ideas can grow. This is called the Greenhouse phase. If that phase is positive too, the concept goes to the Digital Factory, an international entity which develops technological innovations and deploys them in the entire holding. Another entity, the Randstad Innovation Fund (RIF), invests in promising start-ups and smaller companies. Whereas the Digital Factory enables Randstad to spread its own innovations throughout the group, the RIF makes it possible to inject innovations from outside Randstad.
The conference was hosted by Geert Standaert, CTO of Proximus.
Christine Billaud
Allan Farrell
Birgitta Brys
This article is based on the CIONET Belgium event ‘Innovation methodologies, the role of IT’’, which was held on December 7th in Brussels Günther Ghijsels
CIONET Belgium EVENTS
15
Looking at the impact of the digitalisation now taking place in various types of companies and processes
Combining automation and people The last meeting of season 2017 organised by CIONET Italy was the event ‘Drops of Industria 4.0’, primarily focused on the impact of the digitalisation now taking place in various types of companies and all the processes involved.
16
EVENTS CIONET Italy
Flavio Bernocchi, Chief Information Officer at Comau (l.) and conference chairman Enrico Pagliarini, Journalist at Radio24 (r.)
The major themes addressed during the event were the result of experiences and visions of the three top speakers. Each of them addressed a topic which was related to his work and his development area, which gave the opportunity to broaden the
Alessandra De Carlo, CIO at ThyssenKrupp (l.)
machines are the new resources, where optimisation is a key word and humanity is sometimes a weakness. The automation imported by the industrial revolution removed some of the relevance of the work of the human. Therefore Comau is trying to
‘Industry 4.0 is widening the structure of law contracts since it is becoming harder and harder to guarantee all the rights.’ horizon of the community. The evening was opened by the host speaker, Tommaso Faelli, Partner at BonelliErede, who gave an overview on innovation in law - explaining how critical it is to deal with cyber technology when you talk, for example, about intellectual property rights. According to him, Industry 4.0 is widening the structure of law contracts since it is becoming harder and harder to guarantee all the rights not only of the employees but also of the owner himself. On the wave of technological consciousness a touching video was shown to the guests in order to introduce the second speaker, Flavio Bernocchi, Chief Information Officer at Comau. He shared his experience explaining how hard it is to keep the human factor in a world where
maintain a bond between people and technology, emphasising the value of the work done by humans through a constant exchange of learning and challenging, demonstrating that both sides are important for the future.
The Scrapyard project by AST Alessandra De Carlo, CIO at ThyssenKrupp, transported the audience to a parallel universe giving a completely different prospect of technology, where what your mind imagines can become possible. She did this by presenting the Scrapyard project at AST. AST (Acciai Speciali Terni) is leader in laminated stainless steel planes and among the biggest manufacturers of stainless steel in the world. The factories are concentrated in Terni in an area of more than 1,500,000 square
It is hard to keep the human factor in a world where machines are the new resources and humanity is sometimes a weakness.
CIONET Italy EVENTS
17
meters and cover the whole production cycle starting from the fusion. AST produces about 1 million tons of special steels in one year, distributed across the whole world thanks to the 500 installations of ThyssenKrupp Material Services. Today, AST numbers more than 2,300 employees, to whom are added hundreds of workers from the service industry and satellite activities. The quality of raw materials has a huge impact on AST’s business. The most important problem has been identified in the scrapyard, the area in which the materials are collected.
In the scrapyard it was impossible to control the materials deposited and adequate security requirements for the staff implied a huge effort in terms of time and resources. On the road to digitalisation of processes, and in line with AST’s willingness to a continuous improvement, the company has invested in a project in order to put IT at the service of AST operations. Alongside a complete structural and logistical renewal of the scrapyard, a cabled and a wireless infrastructure net have been set up in order to connect the instruments and the machines used for
The shuttle missions are scheduled in an automated way, in order to optimise supply to the manufacturing plants.
18
EVENTS CIONET Italy
the operations in that area and make them intelligent. The project included the installation of a fibre ring under the scrapyard connected to the AST data centre, equipped with a system of 150 distribution racks and an access point to give to the area Wi-Fi coverage with very high performance. The shuttles employed for the loading and unloading of the raw materials have been equipped with terminals and sensors to communicate with the central system. This connectivity in an environment with high complexity allows first of all for independent movements of the shuttles along defined paths transmitted by the central system according to the mission to be achieved. The shuttle missions are scheduled and managed in an automated way, in order to optimise supply to the manufacturing plants, reduce waiting times and increase the physical security of the operators. Through the sensors on the shuttles, it is possible to recognise the material being handled, analysing its quality and measuring the presence of radioactive or waste components. A similar function allows the automatic drawing up of receipts designated to the castings and records the real
weight of the load that needs to be carried to the kilns. The shuttles are also equipped with a camera to film the operations. The images are transmitted in real time to the data centre through the net. The solution offers many benefits: -- a totally computerised management system; -- a greater security level for the operators; -- reduced risk of errors in the manufacturing phase; -- a high level of control of the raw materials; -- a reduction in waste; -- elimination of waiting time at the kiln; -- a general increase in productivity; -- higher processes efficiency. AST has defined an innovation path with a customised project that allows the interconnection of plants and processes. This is the beginning of a transformation phase aimed at bringing advantages in the near future and growing again, continuing along the digital transformation path.
The digital transformation path led to higher process efficiency.
This article is based on the CIONET Italy event ‘Drops of Industria 4.0’, which was held in Milan last November.
Massimo Rosso, ICT Director at Rai, President of the CIONET Italy Advisory Board (r.)
Tommaso Faelli, partner at BonelliErede (l.)
CIONET Italy EVENTS
19
When innovating, organisations have to ensure that it actually leads to strategically useful results.
How to organise innovation? Innovation is a high-priority term in many organisations. But what does it mean in concrete terms, how do you organise it, and above all: who will be responsible for ensuring that it actually leads to strategically useful results? CIONET Netherlands spoke to two Dutch executives who play an important role in innovation in a public, and in a private organisation, respectively.
Bart Doorenbosch, Deputy CIO at NN Group
20
“The role of technology is changing. Communication is increasingly becoming more digital. We want to meet the customer and this requires working digitally”, says Bart Doorenbosch, Deputy CIO at NN Group. “That is the reason why we as the NN Group have invested a lot in innovation.” He continues: “Customers want to be able to control things digitally, preferably 24/7, in a manner that is better tailored to their personal situation. In short, more digital, personal and relevant. We meet that wish. And for the organisation, it is of course more advantageous if we can automate and digitise.”
THE NEXT CIO CIONET The Nederlands
Responsibility As Innovation Manager, Pepijn van der Spek is responsible for the Shared Service Center ICT (SSC-ICT) Innovation Team of the national government. Innovation has been defined in the Shared Service Center as developments with an introduction scope exceeding four years into the future. Everything within these four years is the continued development of existing technology or lifecycle management. Van der Spek: “Thus, the dividing line between innovation and renewal is clear throughout the organisation. This is not true of every organisation, and as a result, there can be uncertainty about who is responsible for what, and what innovation actually involves.” He continues: “We supply all the IT required to enable government officials of eight different departments to do their work. This varies from data centres to mobile telephones and the Windows 10 workstation. Innovation within our organisation means that we look at the future of the national government and the change in the need for IT services. How will the IT landscape change in the years to come, and how can we ensure that government officials can continue to optimally perform their work in the future?”
‘It remains a challenge for companies to find ways to organise innovation intelligently.’ Providing space
Innovation agenda
Doorenbosch: “I think that it remains a challenge for companies to find ways to organise innovation intelligently. That is why we promote innovation amongst employees. They are offered time and space to discuss innovative ideas with each other, and we also provide people with space to further develop these ideas. We would like people to apply their creativity and technical knowledge to make things better. In our office, we have set up facilities and a separate room for this purpose. Furthermore, we have special innovation components in our business units, called Sparklabs. And we collaborate with start-ups and fintechs, such as StartupBootcamp. It is important that innovation is integrated with the strategic objectives. “Ultimately, you have to create a mindset in which we all work together for the customers of NN. When people realise this, and they assign top priority to the customer in everything that they do, activities very quickly fall in line with the organisation’s strategy, in which the customer is paramount.”
The innovation process at SSC-ICT begins with drawing up an annual innovation agenda, in close collaboration with the customers, the ministries, but also with its own organisation. This will contain a list of the topics that will be of importance to the ministries, along with the technologies that will play a role in this. Innovation themes emerge from the discussions that reflect the need for innovation and which, after coordination at the administrative level, lead to the ultimate innovation agenda. “We start working with concrete innovation projects that fit within the agenda”, says van der Spek. “In this manner, we explore new possibilities for services in the future. After the ‘Ideation phase’ in which innovation ideas are presented by government officials as well as market parties, we draw up a draft document in the ‘Draft phase’ in which we describe the innovation idea for this new service. We then actually start realising the idea as ‘Proof of concept’, based on the draft document. That can best be on a makeshift basis - it is a
It is important that innovation is integrated with the strategic objectives.
CIONET The Nederlands THE NEXT CIO
21
Pepijn van der Spek, Innovation Manager at the Shared Service Center ICT, Dutch Government
24/7
24
Customers want to be able to control things digitally, preferably 24/7, in a manner that is better tailored to their personal situation.
Astounding ideas and fantastic working products emerged from the hackathons, after just 24 hours of coding.
prototype, but we can start working on it to verify whether the idea works. And above all, we also want to enable the person who presented the idea, to experience what the new service can possibly mean for him or her.” This ‘Proof of concept phase’ may continue for a few weeks or a few months, depending on the complexity and impact of the idea. “It must also not last too long and can also fail. Thereafter, we evaluate the entire (proof of) concept in a business case in which we verify whether the viability of the idea as a possible new service has been demonstrated. The architecture and security teams also contribute by verifying the feasibility of all of the above. The business case leads to a recommendation to the line organisation and, if approved, it will be placed on the roadmap for the new service in the years to come.”
outcome can be that we do not do something in a different way, but that is an assessment that we make.” A recent example of an innovation project in the SSC-ICT was a request from the ministry where the secretary of a State Secretary wanted to search for employees based on their area of expertise. “A State Secretary often has to reply to substantive questions, and it is the task of the secretary to find the right person within such a large ministry. We have developed a smartphone app in an innovation process in which employees can be traced based on their specific area of expertise. After evaluation, we recommended that a service be made of it. We therefore converted the idea into a working app - and a happy secretary became an ambassador for our innovation team!”
Hackathon Doorenbosch: “Innovation and creativity go hand in hand. In IT, we have organised international hackathons in the last two years. Astounding ideas and fantastic working products emerged from them, after just 24 hours of coding. After the hackathon, we also allow people the time to work out things. Sometimes the
22
THE NEXT CIO CIONET The Nederlands
Pitfall In doing this however, the SSC-ICT tries to prevent pitfalls that, according to van der Spek, often occur during innovation. “A proof of concept becomes a pilot, and without intending it, the pilot itself turns into an informal service. This raises expectations amongst end users that everything is working fine, although that may not necessarily be the case. We provide
‘The most important tip is: just do it.’ no guarantees at the time of a proof of concept - it is a prototype that is run within a test environment. If something goes wrong, it should not adversely affect anyone’s work. It is just a test. If the idea actually becomes a service, the line organisation will start up a new project in which everything will be properly organised, right from architecture and security up to - and including - management.” Doorenbosch: “The most important tip is: just do it. Companies that allow innovation leads to stagnate in these times of changing market conditions, will face real challenges. Everyone is aware of the role of innovation. It is a bus that you as a company should not miss. If you want to start up an innovation, but you encounter all kinds of obstacles, keep promoting it and continue focusing on it. If you fail to do this, your peers in the market will race well ahead of you.”
This article was written by Marco van der Hoeven.
Set your digital innovation agenda Do you want to know more about what can we learn about innovation and growth from the most successful companies? Do you want to drive innovation more effectively in your organisation, moving beyond standard business models to learn lessons from successful innovators? Join us on June 21st for Fast Forward Insights, the Tech Event to set your digital innovation agenda in Haarlem, the Netherlands. Fast Forward Insights consists of a series of high-level masterclasses, deep dives and off-sites for a C-level audience concerning topics like Man versus Machine, Internet of Things, Sensoring, Blockchain Deployment Strategies, New Cyber Security Paradigms, Global Supply Chain, Deep Learning, Artificial Intelligence, VR/AR and other Tech Trends. This event involves top researchers, top media, start-ups and innovators. It is aimed at not only bringing people, insights and innovative ideas together, but also at facilitating co-creation between the participants. Do not miss out on this day! For more information check out www.ffwdinsights.com. CIONET members can register by sending an email to marita.vleugel@cionet.com.
If you fail on innovation, your peers in the market will race well ahead of you.
CIONET The Nederlands THE NEXT CIO
23
Interactive discussions
The one-day, high-energy conference for next generation CIOs who want to fast-forward their careers and their companies. Build your own program by choosing 7 out of 18 world-class workshops that will give you the skills, tools and learning you need to make the difference. CIONEXT is an exclusive conference for CIOs and Digital Leaders. Together with your international peers you will be working and learning in small groups to improve yourself in specifically selected skills. So join us on June 11th for the one-day, high-energy conference for CIOs looking to make a difference… for themselves and their business. And start building the new you. 24
CIONEXT
Networking Impactful opportunities workshops
Inspiring keynotes
18 Workshops - 4 Themes Our 18 workshops will be delivered by world-class coaches and visionaries, with an emphasis on helping you to become a better Digital Leader. The workshops are divided into 4 themes that have been specifically chosen to give you the biggest impact possible, as Digital Expert, Corporate Entrepreneur, Business Leader and Connected Individual.
The Digital Expert • understands and harnesses the value of emerging technologies • grows others to secure the long-term supply of digital skills
The Corporate Entrepreneur • challenges the status quo and drives innovation and change • adapts and adopts great ideas from other industries
The Business Leader • inspires others to dream more, learn more, do more and become more • shapes the future of his/her organisation
The Connected Individual • leverages a broad network of peers, IT partners and business leaders • balances his/her lifestyle • is fully ready for the challenges of the future
Take the self-assessment to know which skills you need to develop at CIONEXT: Simply scan the QR code:
+ special sessions
world-class inspirational coaches
• speed-date with the European CIO of the Year finalists • learn from the European Research Paper of the Year finalist • compare PaaS vendors on the spot
What will you take home from the day? You will acquire a lot: Know-how, Skills, Tools, Connections, Inspiration, Vision, Energy. What you take home is entirely up to you. You make up your own agenda of 7 out of 18 world-class workshops. Each workshop leader will deliver three key learnings, so you’ll get 21 actionable insights to begin applying in your business the very next day!
At CIONEXT you will get inspiration from renowned world-class inspirational coaches who will lead 18 workshops divided into the 4 main themes.
Cathy Holley Savannah group
Joe Peppard Research scientist MIT
Enjoy networking with international peers Following your individual program, in the evening you will enjoy networking with international peers over summer drinks and barbeque on the leafy terrace of the CIONEXT leadership campus in La Hulpe, on the outskirts of Brussels.
Jordy Veth School for mastery
Jurriaan Kamer Agile CIO
Build your own program!
Choose 7 workshops out of 18 sessions on 4 topics
Dr. Kate Goodger Motivational speaker
www.cionext.com
Register now Go to the registration page at www.cionext.com
Here are a few examples:
Cathy Holley, Founding Partner of Savannah, is one of the world’s leading CIO/CDO recruiters. She will give you an insider view of what Boards are asking for in terms of nextgen technology leadership; thoughts on how to alter your leadership style in time of transformational change; and much more.
Joe Peppard, Principal Research Scientist at MIT Sloan School of Management will give you insights on the CIO’s role as Business Leader overcoming critical leadership challenges and some suggestions as to how to overcome them. Jordy Veth, Founder of the School for Mastery, will give you insights in what your potential mastery can be and how you can start to use that as a basis to develop yourself. You will learn that your most important source to invest in structurally is yourself. Jurriaan Kamer, Speaker and Change Agent at Agile CIO and Partner, Organisational Design and Transformation Consultant at The Ready, will give you insights in how Formula 1 teams innovate, learn and adapt quickly, and how to apply these insights to your own organisation. Kate Goodger has a PhD in Athlete Burnout and is also a peer reviewer and published researcher. You will learn from her about the impact your mindset has on yourself and others, what makes some mindsets more resistant to change, and what helps to shift a mindset to establish new perspectives. Tom Haak, Director at the HR Trend Institute, will
Tom Haak HR Trends
address major trends that affect the workforce of the future. After this session, you will have a better view on future workforce trends, know what to look for when recruiting talent, and have a better idea how HR can help Digital Leaders.
CIONEXT
25
Looking at the impact of technological evolution on society.
What’s next in 2018? At CIONET Belgium’s Annual event 2018, many speakers pointed at the importance of understanding the impact and the ethical implications of technological evolution on society. Others stressed the CIO’s critical role. Bjorn Van Reet, CIO at Kinepolis, pointed at the important role IT plays in the creation of value and customer experience at Kinepolis. He also stressed the increasing importance of cybersecurity, especially with respect to the introduction of GDPR. In order to solve security issues thoroughly, his teams have recently analysed, tested and optimised Kinepolis’ public-facing websites and apps by making use of the advanced technical know-how of an ethical hacking platform called Intigriti. Geert De Preter, Program Manager Relocation at VRT broadcasting company focused on how to create a stimulating working environment for employees. For him, in order to create outstanding products or services, the most important tool a company has is the human brain. It is also the tool that determines if employees feel happy or bored. This explains the importance of a ‘thinking brain’-friendly working environment, with a right balance between focus on the one hand and contact with colleagues on the other hand.
26
THE NEXT CIO CIONET Belgium
James Bampfield, Founder of Quinx, explained that the human factor plays a key role in building the organisation of the future. He pointed at the problem that the evolution of consciousness and culture is much slower than technological evolution. Therefore, technological change does not automatically lead to sustainable change. To deal with this, the holy grail is to achieve evolution of technology and culture at the same pace. Jochanan Eynikel, Business Philosopher at ETION think tank, focused on the question of how to stay human in the era of robotics. The use of intelligent and autonomous devices has moral implications and
can even influence human behaviour. Often artefacts are an extension of our moral assumptions, e.g. speed cameras stimulating us to drive responsibly. Future innovations however will require increasingly more integration of ethics in technology as they will need to make moral judgements based on data and algorithms. In the future the technology will need to act responsibly. Karen Boers is Co-founder and Managing Director of Startups.be, as well as President and Founding Partner of the European Startup Network (ESN). She gave advice on how established companies should collaborate with start-ups: “Treat start-ups as equal partners”, she said. Karen also stressed that it’s all about people as nothing great was ever achieved without enthusiasm. Additionally, she emphasised that big corporations and start-ups have to learn to speak each other’s language.
DreamIT Mona Biegstraaten, President of CIONET Spain and Latin America, presented her DreamIT Foundation. This non-profit organisation offers large companies the opportunity to make a contribution to society by providing computer equipment and technological advice to NGOs. “The future of a country is based on the education of the youngest and the technology that DreamIT donates is one of the best tools to achieve that”, she stated.
(l. to r.) Bjorn Van Reet, CIO at Kinepolis, Geert De Preter, Program Manager Relocation at VRT, James Bampfield, Founder of Quinx, Jochanan Eynikel, Business Philosopher at ETION (l. to r.) Karen Boers, Co-founder and Managing Director of Startups.be, Koen De Leus, Chief Economist at BNP Paribas Fortis, Yoav Nir, Co-inventor of ClickShare, John Porter, CEO of Telenet
Winners’ economy
Critical CIO role
Koen De Leus, Chief Economist at BNP Paribas Fortis recently published a new book on the digital revolution and its economic and social impact on our society: ‘The Winners’ economy: challenges and opportunities of the digital revolution’. In the digital age, digital products have very typical features that are totally different from physical products. For example, there are no borders, they are scalable, they are non-rival which implies scarcity doesn’t play, they profit from network effects, etc. All this leads to the fact that an ever bigger share of the income goes to an ever smaller group of people. Yoav Nir is Co-inventor of ClickShare and Founder of Yofi Consulting. In his book ‘Game-changing Innovation. Making theory a reality through practice’, Yoav has more than 80 tips and tricks on how companies, from startups all the way to large corporations, can come up with game-changing innovation. He illustrates in the book how some simple techniques and strategies can actually increase significantly the likelihood of coming up with very successful products.
John Porter, CEO of Telenet, pointed at the changing role of IT and had a very clear message to the CIOs: “Get out of the engine room and get up on the bridge where you work in partnership with the CEO, the CMO and other senior leaders to transform your organisation. While the CEO has to leverage all the capacities he has in his organisation, the CIO brings an awful lot to the table in this technology and digitally driven world. He also plays a critical role in becoming a learning organisation and attracting new talents.” Luc Hendrikx, CEO of CIONET International, compared CIOs to top sportsmen. Just like them, CIOs have to choose the most effective individual training program adapted to their personal growth ambitions. They can now do this by subscribing to CIONEXT, the one-day, high-energy event for the future-proof CIO. Read more on page 24 of this magazine or go to: www.cionext.com This article is based on the CIONET Belgium Annual Event ‘What’s next 2018’, which was held on January 30th in Brussels.
CIONET Belgium Best Speaker award Congratulations to Herman De Prins, CIO of pharmaceutical company UCB, for winning the best speaker award of CIONET Belgium’s conferences in 2017. Herman won the prize for his speech ‘IT takes time to go fast, turning business strategy into technological innovation’, at CIONET’s event on Emerging Technologies in September 2017.
CIONET Belgium THE NEXT CIO
27
Technology is opening up a world of opportunities in the whole supply chain.
Will the new retail be doom or a boon? Our world is changing faster than ever before and the pace of change keeps accelerating. What yesterday was science fiction and might have been featured in one of ‘The Jetsons’ cartoon episodes is quickly becoming reality. Remember Rosie, the family’s robot maid? What about those special flying personal pods that delivered the kids to school? And what about all the voice-enabled devices? That distant future is here. Now. And it is fascinating, right?
Jens-Peter Labus
28
THE NEXT CIO CIONET Germany
From the latest Gartner’s predictions we can expect extraordinary changes in the years ahead. Visual and voice search, especially mobile searches, will permeate digital commerce and very soon have a significant impact on the revenues of those who redesign their websites to support these advances. In just a couple of years, 95% of electronics for new product designs will incorporate IoT technology. As with any prediction, there is always a degree of uncertainty, but although it may be a lot easier for businesses to wait and see how all these new technologies evolve, the future belongs to those who act on that uncertainty and do it fast. We have all heard it before: ‘adapt or die’, ‘disrupt or be disrupted’. As shopping starts blending into everyday life, so do consumers’ expectations, and behaviour evolves: people now demand anything, anytime, anywhere and faster, better and
95+5
50 million
95%
cheaper. This demands not only a tighter integration of every touchpoint, but also a redefinition of the role of physical stores. Additionally, as digital giants like Amazon and Alibaba expand to physical stores which provide a unique shopping experience with a seamless blend of online and offline, the challenges for all other companies which were not born ‘digital’, increase exponentially.
Technologies shaping the new retail Do you think Rosie, the robot maid, is nothing more than a cartoon with little relevance to your business? We may now believe that the latest concierge robots at hotels or shopping centres and the most innovative diagnostic robots in healthcare are just exciting headlines. But actually, they are already permeating our lives and businesses. In retail, robots are already inside stores and warehouses
In just a couple of years, 95% of electronics for new product designs will incorporate IoT technology.
According to UPS, just one drone delivery per day and per truck can generate savings of up to $50 million per year.
providing basic customer service information, bringing automation to inventories and, therefore, reducing manual counting errors. Other current applications include the optimisation of storage space usage and product retrieval. A special flying personal pod which takes something to its destination? Dubai is already testing flying taxis and in China the world’s first passenger drone made its first public flight in February 2018. Regarding retail, just three years ago people said drone deliveries were impossible. Back in January of 2017, London registered the first two documented drone deliveries to regular consumers and in Silicon Valley one can already see Domino’s pizza delivery robots driving
the streets and thus cutting down the cost for the last mile to $1 per delivery. UPS is also taking strides into using drones to drive more efficient deliveries by fitting its brown trucks with a drone under a sliding roof. According to UPS, just one drone delivery per day and per truck can generate savings of up to $50 million per year. While drone deliveries may not be viable in all locations, some cities are already adapting their regulations to ensure an adequate legal framework. Also, drone weight-carrying capabilities double every 9 months, so major developments are to be expected in the coming years. But drones are extremely important for efficiencies in more than just deliveries. Walmart is testing drones using RFID for inventory management in its distribution centres, bringing the time it takes to complete an inventory down from one month to a day or even less. Cashierless shops? It might have
‘The future belongs to those who act on the uncertainty and do it fast.’
CIONET Germany THE NEXT CIO
29
While drone deliveries may not be viable in all locations, some cities are already adapting their regulations to ensure an adequate legal framework.
not been a reality portrayed in ‘The Jetsons’, but from Amazon Go to Tencent and Alibaba’s Tao Cafe popup store we are starting to see the real
the main interface for these new ways of shopping, we will soon begin to see growth in smart glasses and biometric implants. In Stockholm, it
‘We will no longer enter a store, but simply log in.’ possibilities for the future of retail. AIpowered facial and body recognition, smart shopping baskets equipped with RFID and AR are some of the enabling technologies that are already driving the expansion of this type of stores. Whether it is a fully unmanned store or not, by using AR or VR the shopping experience can now be enriched with truly personalised content and offers on smartphones as consumers check or select a product or walk through certain sections. We will no longer enter a store, but simply log in. Although smartphones are currently
30
THE NEXT CIO CIONET Germany
is already possible to use a biometric implant to carry train tickets. While there is still a lot being figured out with regards to all this innovation, we are sure to find some resistance from consumers concerned about privacy, security and control issues. However, there is always a trade-off and as benefits continue to increase, so should consumer adoption.
Will these advances be doom or a boon? Firstly, it is essential to understand that retail is about service, advice,
We will no longer enter a store, but simply log in.
WE ARE HELPING LEADING COMPANIES LEAD WITH DIGITAL The best way to predict the future of your industry is to create it yourself
About Cognizant Cognizant (NASDAQ-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 205 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
www.cognizant.com
Regarding retail, just three years ago people said drone deliveries were impossible.
‘When you are able to drive valuable innovation and scale-up the new retail will be a boon..’
trust and positioning, especially for high-involvement purchases, so it is unlikely that fully unmanned stores will become the only kind of stores available. Additionally, physical stores will continue to play a key role in the supply chain as distribution centres for home deliveries. Secondly, all this technology is opening up a world of opportunities for greater efficiency in the whole supply chain. Data, no matter what specific innovation is being deployed, will have an increasingly important role not just in decision-making, but also in supply chain management and in fostering customer engagement and loyalty. This is where the greatest competitive advantages can be achieved. Lastly, these are truly unprecedented
times we are living in. As consumers, we can afford to incorporate new technology in our lives at our own pace. For businesses, failure to quickly adapt will eventually result in a doom. However, for those who are able to drive valuable innovation and scale-up when customer behaviour proves the superiority and benefits of that innovation, the new retail will definitely be a boon.
This article was written by Jens-Peter Labus, Associate Member at the GermanRetailLab e.V. and Chief Cyborg Officer at MediaMarktSaturn.
Jens-Peter Labus Jens-Peter Labus is an experienced Technology Director with a history of working with digital technologies applied at scale in large multi-national and multi-cultural retail and commercial enterprises. He manages digital disruptions and loves leading people in technology transformations. He is an active writer and an acclaimed keynote speaker on ‘The Digital Possible’ in retail, commerce and technology.
32
THE NEXT CIO CIONET Germany
Exciting news! The CIONET app has been released. With this app, you have the full power of the CIONET community at your disposal wherever you are and whenever you want.
Now available in the Play Store (Android) and the App Store (iOS).
Use the CIONET app to: - Connect with Digital Leaders like you - Share ideas, best practices, and new resources - Experience exclusive content and conversations you can’t find anywhere else - Make better, well-informed decisions about the topics that are most important to you - Join conversations on topics that matter to you as a Digital Leader - Ask questions to your peers and experts in the CIONET Community
Get it now! Start connecting and sharing Simply scan the QR code:
Android
iOS
m.cionet.com
Data becomes the glue that holds all players together in marketfocused ecosystems.
The new chemistry of digital business The prospect of corporate ‘atomisation’ was conceived in 2000 when the introduction of e-markets and e-portals prompted the view that many of the tasks undertaken by large and complex organisations could be fulfilled in a cheaper and more agile manner by separate, external entities.
An increasingly frictionless economy is enabled by high speed internet and blockchain developments.
34
This was supported by the thinking of Nobel Laureate, Ronal Coase, who forecasted that when the cost of doing business externally fell below internal transaction costs, companies would begin to break apart. But despite this compelling logic, few large companies have restructured in an ‘atomic’ fashion over the subsequent eighteen years. More significantly, newcomers such as Amazon and Google have adopted highly integrated structures on the premise that ‘the winner takes all’. One example of atomisation has been the development of digital platforms (based on cloud technology) that offer corporate services such as IT, CRM, and HR. There has also been an explosion of start-ups in areas such as FinTech. However, with a few possible exceptions these have yet to challenge the incumbent structures.
THE NEXT CIO CIONET United Kingdom
Adopting new ‘outside-in’ thinking But, over the last decade something fundamental has happened. This has included the proliferation of smart devices such as the iPhone and remote sensors that are now generating data of every kind – personal and mechanical. Such data gives the supply side unique insights into the way individuals, communities, cities, and states behave. At the same time, machine intelligence and data analytics have matured to the point where new sources of value can be extracted from this data, encouraging a raft of new digital companies, and causing incumbents to shift their thinking away from ‘product in manufacture’ to ‘product in services’. These digital advances are now disrupting virtually every sector, from engineering and manufacturing to healthcare and financial services. But the real prize remains only partially realised. This is the ability of tomorrow’s market leaders to respond in an intimate fashion to the multiplicity of lifestyle needs that dominate individual consumers and society at large. These may relate to physical well-being, life-long learning, or financial security. Today’s products and services (such as pharma drugs, educational degree courses and
‘We are still in the very early stages of a digital revolution that calls for new structures and new players.’ investment funds) remain relatively fragmented in the context of such ‘macro’ processes. They do not provide a holistic solution. What all this suggests is that we are still in the very early stages of a digital revolution that calls for new structures and new players.
The new chemistry of digital business We continue to assert that market leadership is all about helping to shape and respond to the individual lifestyle needs of each market segment (individuals, communities, cities, and states). This calls for intimate connection and rapid learning, where data becomes the primary currency. Small teams – what we describe as ‘quantum particles’ are needed to harvest and interpret such data whilst constantly generating new and more compelling solutions to macro lifestyle needs. Such teams reside in ‘atomic’ units that contain the necessary building blocks, or micro-services, that enable flexible assembly of market-ready products and services. To provide holistic solutions, the quantum particles and atomic units must be able to combine readily with other entities that offer
complementary components through solution ‘integrators’ (enzymes). By doing so, they can form into molecular structures, or ecosystems, that can fulfil a wide variety of lifestyle needs, encompassing millions and often billions of consumers in an intimate fashion. A further essential component is the digital platform that offers the scale and connectivity to such universal audiences, as well as the business services necessary to support both atomic and molecular structures. Together, quantum particles, atomic units, solution integrators and complex molecules will begin to populate the digital universe and give rise to a new industrial revolution.
The implications of such a modular approach include: -- An increasingly frictionless economy, enabled by high speed internet and blockchain developments; -- Data becomes the glue that holds all players together in market focused ecosystems; -- Modular building blocks, connected by open APIs, reduce bureaucracy within corporations and between trading partners; -- Digital platforms become commonplace within and between sectors, enabling innovation at scale.
What can we learn from this new chemistry? Market leaders, be they tech entrepreneurs or captains of Global 1000 companies, will need to think in terms of increasingly modular components that can be assembled and deployed like Lego-bricks. Open standards and digital platforms will facilitate the interconnection of such modular units to enable the rapid adaptation of atomic and molecular entities as external conditions change.
Roger Camrass This article was written by Roger Camrass, director of CIONET UK Limited, a visiting professor of the University of Surrey and author of ‘Atomic: reforming the business landscape into the new structures of tomorrow (J Wiley, 2003).
CIONET United Kingdom THE NEXT CIO
35
Idoia Maguregui, new President of CIONET Spain, wants to support the CIO in his important mission.
The CIO, the guide through the tech revolution The appointment of Idoia Maguregui as President of the Advisory Board of CIONET Spain took place last November, at the last meeting of the Advisory Council of CIONET Spain in 2017. The nomination as President of the Advisory Board recognises her work in the CIONET community since her incorporation in 2010, her support to the members and her motivation and inspiration as a leader for the CIO Circle for Women and Technology, as well as her role as ICT leader in companies such as Bankinter-Gneis, Novagalicia and now Sareb. What is CIONET for you and how do you think it helps CIOs? Idoia Maguregui: “For me CIONET was and still is my professional accompaniment. It is the place where I meet my colleagues and my contacts, where I get information about the market, get to know the suppliers, etc. CIONET has accompanied me in my different professional stages and it has helped me to grow, to know better the environment and the possibilities that I have around me.”
Idoia Maguregui, new President of the CIONET Spain Advisory Board
36
CIO VISION CIONET Spain
What are you expecting from your role as President of the CIONET Spain Advisory Board? “I hope that CIONET will continue to offer all CIOs a quality service, a
reference and support in their performance. I also hope CIONET will continue to help the CIO to evolve and take advantage of every opportunity. In other words, that CIONET will remain very much CIONET.” Where would you like to take CIONET? “Right now, we are in a technological revolution. Those technologies that looked like science fiction a few years ago, are now fully operational and challenging both companies and CIOs in their use and in the reinvention of some businesses. This world that we now identify as the world of innovation, is changing companies, their management styles etc. The CIO has the responsibility and the opportunity to guide the companies through this revolution. CIONET must be there, next to the CIO, helping him to succeed.”
them internally takes a lot of time and effort. Profiles related to statistics and artificial intelligence, for example, are scarce today in the market, as are those related to security. If now a parent were to ask him or herself ‘what can my child study today that has a future?’, I believe that any of these fields will provide a lot of quality work in the future - although we all know that the future is very uncertain, of course.”
Society and students have to learn that talent has no gender.
Can you tell us a bit about the CIO Circle for Women and Technology? What initiatives are you leading with this group right now? “In CIONET as in companies related to technology, there is little representation of female talent. Looking at the statistics, we see that only 18% of technology professionals are women, so we thought we had to do something to change this situation.”
‘The CIO has the responsibility and the opportunity to guide his company through the tech revolution. As Deputy General Manager of People, Resources and IT at Sareb, do you confirm the tendency that there is a lack of specific professional profiles in the market? “Unfortunately, yes. In many fields of specialisation there are very few profiles in the market and training
“First, we saw that this situation is not just a short-term phenomenon, because at the universities offering STEM careers such as engineering or mathematics, only 25% of women are enrolled in the best of cases.” “Knowing this, our group of men and women named
CIONET Spain CIO VISION
37
18+82 18%
Looking at the statistics, we see that only 18% of technology professionals are women.
#masmujeresfantasTICas (more fantastic women) has decided to volunteer in mentoring of children at an early age - 12 years - so that especially girls who have a curiosity and vocation for science and technology
‘Technology teams are having greater relevance in the strategy of companies.’ are motivated to be involved in such areas and know that being a female will not stop them fighting for their interests. Talent has no gender.” “To accomplish this desire we followed the guidelines of the Inspira Project of the University of Deusto, which has been developing this project in the Basque Country for two years. We have received training to become mentors and now we are going to start this course in our first school in order to obtain experience for next year when we are planning to expand the project.” “We hope that this and other similar initiatives will serve to eliminate stereotypes and entrenched cultural elements that impede the development of more women in STEM careers.” What was the best evolution in the technological world in 2017? “In 2017 cybersecurity, data and artificial intelligence have had a place
38
CIO VISION CIONET Spain
in the CEO’s agenda in many companies. This was the first step towards making deep changes in the business. Technology - and therefore the position of the CIO and the technology teams - is having greater relevance
in the strategy of companies. This is a great responsibility and also a great opportunity.” Looking at 2018 tendencies such as artificial intelligence, data, cybersecurity and innovation, which one would you pick and why? “I believe that I’d choose innovation, because innovation also includes the others. In my professional career, that has always been in companies in the financial world, I saw the power of innovation applied to the business, using new technologies. I believe 2018 is the year of innovation, of the application of new technologies in business processes, changing them exponentially. I also foresee the growth of start-ups and their impact on more traditional companies. Those, I expect, are some of the key trends of this year.”
Agility and team building based on focused leadership and interpersonal respect lead to success.
The agility recipe for IT transformation As part of a major turnaround starting 2016 Jet Time ignited the ‘Sustainable Core Business 2020’ plan transforming the company to growth and profitability. Frederik N. Olesen is IT manager at Jet Time A/S. Frederik’s contribution to the 2020 strategy was a radical change of IT including outsourcing, cost efficiency and digitalisation initiatives. What were the leadership and management requirements for transforming Jet Time’s entire IT platform into 2020 standards in less than 12 months and how did Frederik manage this personal challenge? The fight for respect As a young and newly appointed manager and fresh from education, you must have had your reservations about jumping into a senior management position? Frederik N. Olesen: ”Obviously, facing a major transformation of our IT was a challenge for me. On the other hand, the entire Jet Time senior management team was in the same boat. So as a newcomer to the team, I had to contribute successfully from day one. Very simple actually. Our financial situation forced us all to deliver from day one - not just me personally, but the entire company. It was a tough period with many parallel work streams, which all had to be executed and delivered within an accelerated schedule.”
Frederik Olesen
CIONET Denmark CIO VISION
39
Jet Time’s Boeing 737 fleet (Copyright: Thorkild Jensen, Jet Time A/S)
Part of fighting for respect, you said, was derived from working intensively with your teams. What’s your winning formula? “Before I explain this, I would like to introduce you to my work agenda: I am an agile work processes believer. Radical even. The ‘Art of continuous two-week sprints’ beats everything in change programmes. Referring to your question, basically, what you need to do is to earn respect from your peers and colleagues. The key
The Art of continuous twoweek sprints beats everything in change programmes.
40
CIO VISION CIONET Denmark
to this is to demonstrate that your IT teams deliver stable high-quality IT projects, services and operations 24/7. Failure is not an option and if you are not there today, my advice is to get there very soon.” “The IT landscape is changing quicker than ever before, and therefore a must is to understand the business and keep adapting to an ever-changing environment. As the average employee age in my IT department is 27 years (!) personal interests and priorities are different from employees who are more senior. Powerful, hard-working, technology-oriented, digital-native profiles as they are, they prioritise and work differently. Off work, private relations are part of the equation. Therefore, working in the borderline between being colleague and friend has its moments. It may take time before you realise that you have passed the ‘red line’ when facing a later not so fun negative performance hard talk.” “It may sound trivial, but find the personal style and comfort zones quickly - and revisit from time to time
‘The formula is to run agile all over, including RFI, RFP and contracts.’ in order to stay sharp. What really worked for me was to show my colleagues that we are in this together, and that this is not possible without everyone working towards the same goal.”
The 2016 IT baseline Looking back, Jet Time has been through a very successful IT transformation the past 12 months. Could you introduce us to your IT baseline before we take a deep dive into the transformation project? “Jet Time’s IT system portfolio was/ is large and complex. It is founded on four large standard business critical enterprise systems fitting and supporting the different business units, such as Crew management, Airplane Maintenance etc. Embedded in the IT architecture were 20 smaller standard and bespoke systems. Everything was
interconnected by numerous interfaces and integrations. The IT infrastructure was operated internally. This was a very costly classic IT landscape and operations model that was up for a serious makeover.” “I think that this is what you see often in companies which have seen huge growth. No time to maintain and implement best-practices procedures, because the load on the resources is too heavy and requires constant attention caused by the growth. The lack of documentation is also a hurdle I see in many companies. We had this challenge as well and had to start out with getting an entire overview of the platform and the different types of connections to be able to transform the platform correctly, optimally and cost effectively.”
IT transformation programme Facing the IT transformation, I know that you and your peers discussed scope, time and investments intensively. Can you explain? “We discussed this very intensively ending up in a radical change programme with five strategic goals:
-- Leave the internal system development strategy and run with a 100% standard software packages; -- Outsource the IT infrastructure; -- Reduce IT CAPEX and OPEX costs where possible; -- Document and standardise IT systems and work processes; -- Digitalise business processes all over the company. The transformation was executed over an 11-month period in 2017. Agile methods were applied and systemically used for keeping up progress against our milestones and KPI’s. To give you an impression of the change speed, the outsourcing of the IT infrastructure took five months - from the RFI to the end of the transition period to an external hosting provider. In the Nordics this takes at least over 12 months. The formula is to run agile all over, including RFI, RFP and contracts.” “The transition from Jet Time to the external hosting provider was made as a teamwork effort by, for instance, moving one of my teams onsite with the hosting company. My personal take from the programme supported
The team realised a 37% cost reduction year on year and above expectations.
me in that team openness, individual trust and age enable miracles. By age I mean, that a qualified young team is superior on radical change programmes. They typically do not have that many limitations and/or political agendas to defend.” What was the outcome of the IT CAPEX and OPEX cost challenge? “In total we realised a 37% cost reduction year on year and above expectations.”
This interview was taken by Fritjof Lind, Managing Partner of CIONET Denmark.
Frederik Olesen Frederik Olesen is IT manager at Jet Time A/S and has been instrumental in transforming Jet Time’s IT department as part of an allcompany transformation since 2016. Frederik is a young and passionate IT manager. A believer in agility and team building based on focused leadership and interpersonal respect.
Jet Time A/S Jet Time is a Danish-owned airline company founded in 2006 and based in Copenhagen. The company operates purely B2B, delivering air transport solutions to charter companies and others with need for air transport. Jet Time has grown to become the largest Danishowned airline with an annual turnover of 1.7 billon DKK and more than 400 employees. The fleet is based on Boeing 737-700 aircraft.
CIONET Denmark CIO VISION
41
How automation solutions in the utilities sector contribute to the creation of value and income.
From automation to predictive analytics
The automation solutions implemented at the Municipal Water and Sewerage Company (MPWiK) in Wrocław, were aimed at supporting the main process through reducing leakages in water networks, shortening disruptions in water supply and limiting difficulties arising from such incidents. The Smart Flow system, developed to meet internal needs, is currently also being marketed.
MPWiK markets its solution for use by other water and sewerage companies.
42
CIO VISION CIONET Poland
Combining CIO and CFO competences contributes to a more efficient use of the IT budget. I am convinced that in the future this will be the common direction of the development strategy for organisations. In my case, I followed both career paths in parallel after graduating from the Wrocław University of Science and Technology and the Wrocław University of Economics. Since last year I have been working both as CIO and CFO. The use of automation can considerably contribute to decreasing financial loss and environmental damage. The Smart Flow system, implemented
in our company within the framework of the project aimed at reducing water leakage, resulted in shortening the time needed to detect leakage to 12 days. According to the research conducted by the International Water Association, a hidden water leakage lasts 180 days on average.
Speeding up data analysis Thanks to the solutions we implemented, we were able to reduce water leakages within a period of 5 years by 44%. The Smart Flow system enables us to detect several water supply failures every month. Smart Flow also analyses information
Piotr Słomianny
assets tree, retrieving data from various OT (Operational Technology) and IT systems used in our company, MPWiK.
collected from 60,000 water meters. Moreover, our system carries out so-called zone metering - we find out how much water was supplied, how much was consumed by users and how much should be discharged from a given zone.
Marketing of the internal IT project
Before, data analysis used to take months. It was undertaken manually, using Excel tables. Now, thanks to the use of cloud computing potential, we can already receive up-to-date information the next morning. Cloud
An interesting fact - not typical for enterprises in the utilities sector - is that we are marketing the Smart Flow system. We have ownership rights on some parts of its license. Therefore, we decided that, together with our partner Future Processing, we could
60,000 Cloud computing allows MPWiK to analyse large data sets received from over 60,000 IoT devices.
‘We were able to reduce water leakages within a period of 5 years by 44%.’ computing allows us to analyse large data sets received from over 60,000 IoT devices.
offer our solution to other water and sewerage companies.
But collecting data is not enough. In order to make sense of the collected data they had to be ‘put in a right order’ first. That took us about a year. As a result, we created a so-called
This article was written by Piotr Słomianny, CFO/CIO of MPWiK, the Municipal Water and Sewerage Company in Wrocław, and winner of the Digital Excellence Award 2017, which was organised by CIONET Poland.
CIONET Poland CIO VISION
43
CIONET Portugal initiative boosts awareness and innovation in the payment networks.
Rethinking payment services with PayChallenge In 2017, CIONET Portugal launched an initiative focused on the second Payment Services Directive (PSD2) called ‘PayChallenge - Rethinking Payment Services’, aimed to raise awareness throughout the Portuguese financial system and economy on the resulting consequences from the coming into force of this Directive in 2018.
Carlos Costa, Banco de Portugal
Carlos Moedas, European Commission
Starting in the first quarter of the year with a partnership established between CIONET Portugal, the Bank of Portugal and Portugal Fintech, the initiative was created and developed in order to challenge start-ups, students and other stakeholders interested in developing solutions considering the new Directive. The challenge was set into motion several months early on - the first stage of this challenge ended in September with participants from Portugal, Ireland, Italy, France, and Brazil. Five projects were subject to a formal evaluation from the jury, which included representatives from CIONET, Gartner, and Roland Berger. From the submitted projects two finalists were selected and the respective representatives had the opportunity to present their innovative solutions at the final conference that closed this initiative. It took place on November 6th in Lisbon.
Future of payments At the conference, entitled “The Future of Payments and Fintech”, CIONET Portugal had the honour of hosting in partnership with Bank of Portugal some of the most important players of the financial industry openly debating the PSD2 Directive. The speakers panel included: the Bank of Portugal’s Governor, Carlos da Silva Costa; the European Commissioner for Research, Science and Innovation, Carlos
44
CIO VISION CIONET Portugal
FINDING THE NEXT ROCKSTAR IS HUMANLY POSSIBLE
With thousands of consultants and global scale, we know the best talent and understand what drives them. Experis™ matches these powerful individuals to your precise business needs.
The result? Unprecedented growth for your company. Learn more at experis.com
© 2011 ManpowerGroup. All rights reserved.
CIONET Portugal CIO VISION
45
Phin Upham, Haymaker Capital
Moedas; Phin Upham, a private investor from Haymaker Capital; SIBS’ CEO, Madalena Tomé; and the Portuguese Secretary of State of Industry, Ana Teresa Lehmann. At a discussion panel that focused on the PayChallenge finalist projects, the speakers were: Rui Serapicos as the moderator and representative from CIONET Portugal; Dean Demellweek, BNP Paribas; João Andrade, Portugal Fintech; Maria Tereza Cavaco, Bank of Portugal); Naveen Prasad, Stealth Start-Up; Paulo Raposo, Mastercard; and Teresa Fernandes, AICEP. With this initiative, CIONET achieved the proposed goals of boosting awareness and innovation in the payment networks, transforming the initiative in a knowledge sharing space for the financial ecosystem, and raising responsiveness for the coming changes to the payment business models. The stakeholders - speakers, start-ups and audience - recognised the disruptive momentum banks and the financial services industry are going through, as well as the importance PayChallenge had in opening a new chapter in payments innovation.
46
CIO VISION CIONET Portugal
Madalena Tomé, SIBS
Ana Teresa Lehmann, Secretary of State of Industry
Machine Learning event with an innovative approach On a late-summer Lisbon afternoon, Abreu Advogados Law firm hosted a Machine Learning themed event called ‘Coffee Brainer’, giving nearly 70 participants from different industries the chance to discuss new Machine Learning opportunities. Through an informal event based on world café conversations, this theme was the debate subject among several IT leaders from industries as diverse as Telecommunications, Insurance, Banking and Financial Services, and Healthcare. The debate was centred on understanding how much Machine Learning is being used in the Portuguese economy, as well as, what are the success cases within each industry and what can be done in terms of implementing this technological paradigm. Eduardo Mastranza from Gartner set the tone as the opening speaker with an approach on Machine Learning’s state of the art, and Ricardo Pereira from Lisbon Data Science Academy presented the business case of implementing a Data Science and Machine Learning Academy. ©Dora Miller
PREMIUM BUSINESS PARTNERS
BUSINESS PARTNERS
CIONET Magazine - Publishing director: Hendrik Deckers (hendrik@cionet.com) - CEO: Luc Hendrikx (luc@cionet.com) - Editor-in-chief: Luc Franco (luc.franco@cionet.com) - Lay-out & digital: Mieke Smalle (mieke@mmmieke.be) - Printed by: Baillien-Maris (www.baillien -maris.be) - Operations: Mieke Pauwels (mieke@cionet.com) - Marketing: Frederic De Meyer (frederic@cionet.com) - Advertising: Luc Franco (luc.franco@cionet.com) - www.cionet.com
The one-day, high energy development program for the future-proof CIO
June 11th,
La Hulpe - Brussels Inspiring keynotes
Realise your ambition. Get inspired by exciting topics such as: • • • •
Interactive discussions
Impactful workshops
The CIO as a business leader The CIO as a corporate entrepreneur The CIO as a connected individual The CIO as a digital expert
Networking opportunities
Build your own program!
Choose 7 workshops out of 18 sessions with each 3 tangible, directly applicable takeaways. www.cionext.com
Innovative session formats
world-class inspirational coaches
Registration Go to the registration page at www.cionext.com A unique location