CIONET Magazine: The future-proof CIO

The future-proof CIO CIONET Magazine, March 2017

Realise your ambition Contents IN MEMORIAM 4

Ciao Alfredo!

A special tribute to Alfredo Gatti who passed away last January.

Alfredo was Managing Director of CIONET Italy and Founder and Managing Partner of NextValue.

EVENTS 6 The digital client The digital revolution is generating new processes and sales channels.

8 What is modern leadership?

What’s next? A new face of digital leadership

9 Enabling growth by using technological abilities Cristina Álvarez Álvarez received the ‘Engineer of the year’ award.

10 Filter bubbles The Lisbon Web Summit has drawn attention to the impact of innovation on society.

12 European Digital Skills awards A celebration of outstanding projects developing European digital competences.

THE NEXT CIO 14 Being committed to a new world In Luxembourg, Support PSF operators need to adapt to a new, more open financial sector.

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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.

It is our mission to provide CIONET members and partners with the best

16 Bank in the era of digital transformation Turning banks into platforms offering a wide range of interaction with customers.

17 The Digital Maturity methodology for CIOs CIONET is offering great opportunities to CIOs to get more insight in their IT capabilities.

18 Digital Readiness key for CIOs To successfully lead the Digital Transformation, CIOs have to gain insight in the Digital Maturity of their organisations.

20 Digital transformation requires new CIO role Who can deny that our life is becoming increasingly more digital every day?

23 Where will digitisation lead the CIO? The speed of digital transformation is getting faster all the time.

26 New business models in the API economy API ecosystems enable new types of partnerships between companies.

28 Implementing a new approach to data Data has acquired a real strategic value that was less tangible in the past.

30 Beyond tools CIOs need to think about the human connection to technology.

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.

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.

CIO VISION 33 A woman CIO in the middle of the world Women should be significantly represented in the IT sector.

34 CIO class to be world class Organisations should use IT to gain strategic advantage and ensure sustainability.

36 CIO in the new drone era A new way of approaching safety and operational analysis.

38 IoT in the new digital era The Internet of things represents an unexplored wealth of business opportunities.

41 A new reality of data protection What does the CIO have to know about GDPR?

42 The legal response to technological evolution GDPR ensures the right to be forgotten and the right for data portability.

44 Digital transformation toolbox An obsession with continuous improvement is key to digital transformation.

CIONET PARTNERS 47 Have a look at the full list of CIONET’s Premium Business Partners, Business Partners and Research Partners.

The future-proof CIO

With immense pain, we remember Alfredo Gatti who passed away last January.

Alfredo was Managing Director of CIONET Italy and Founder & Managing Partner of NEXTVALUE. With great dedication and intensity he managed CIONET Italy and its growing community, achieving important goals. We offer our sincere condolences to his family, friends and to our colleagues of the CIONET Italy team. Read a special tribute to our friend Alfredo in this magazine.

The core mission of CIONET is to help CIOs realise their ambition to deliver on their digital vision. That is why CIONET is continuously developing value-adding programs for its members. In the coming months we will launch another new program offering opportunities to become acquainted with the power of IT-CMF™, thé digital maturity methodology for CIOs. This year, for the second time in a row, CIOCITY will be held in Amsterdam.

Last year we welcomed over 500 digital leaders and IT professionals in the same capital. On 26th and 27th June, this leading international conference will be focusing on Leadership in the Digital Economy.

The attendees will be discussing major trends and best practices through interactive workshops, CIO speeches, keynote addresses and plenty of networking opportunities. This major international event is renowned as a most important opportunity for CIOs all over the world to acquire new insights, exchange with their peers and become even more successful.

Keeping up the good tradition, at CIOCITY 17 the European CIO of the Year award and the European Digital Leader of the Year award will be granted to Europe’s most successful digital leaders. We will also celebrate the winners of the European Research Paper of the Year award, honouring the most excellent European research activity.

Hendrik Deckers, Founder & Managing Director of CIONET International

In this magazine you will learn what the CIO needs to know about GDPR (the upcoming General Data Protection Regulation). Moreover, this edition keeps you up to date on burning topics such as blockchain, fintech, big data, IoT, drones, machine learning, APIs and AI. You will also discover best practices for digital transformation and digital leadership.

Realise your ambition!

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Ciao Alfredo!

Usually the truest and most intimate friendships are those that are born in the years of youth, because they come from the sharing of ideals, hopes and a yearning for life.

My friendship with Alfredo was rather founded on maturity and esteem, on complementing knowledge and experience, on the shared commitment of developing a community and seizing a goal, which at the beginning seemed beyond our strength.

This is the reason why it was a calm, frank, thoughtful, mature kind of friendship. For the same reason, even deeper!

When I first met Alfredo, now more than eight years ago, what struck me immediately were his empathy, his frank talking, his ability to get to the point directly and with clarity of thought. These qualities convinced me to join him in creating CIONET

Italy, within an environment already crowded with similar organisations.

Over the years, knowing him better and working together, his human ethics, his huge international experience, and his instinct to read situations that not always are so immediate and clear in the world of business, emerged.

In this, he was sustained by his extensive experience and knowledge of the IT market, gained both in Italy and abroad in important organisations that fashioned the history of our industry.

However, it was his ‘engineering’ approach that proved to be crucial, as he often loved to point out. An approach centred on substance, on identifying value for the person involved, under any circumstances, from producing a market analysis, extrapolating a trend, identifying an investment opportunity, to simply giving advice to a friend.

Alfredo Gatti

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IN MEMORIAM CIONET International

His deep humanity was dear to me.

Several times, being my age, we found ourselves sharing joys and fears about our children.

In him, I have always found the embodiment of the Tibetan aphorism that says:

“Give to those you love wings to fly, roots to return, reasons to stay.”

He conveyed the same dedication and intensity toward his team, our initiatives and our community that gradually managed to grow achieving important goals.

A totally unexpected fate was awaiting him at the height of his strength, plunging us all into grief and consternation. Maybe fate itself has a vital project to entrust to such a capable and tenacious man.

We will miss you Alfredo, we will miss you so much. We will miss your vision, your experience and your zest for life.

We will be able to make your example our own, together with your energy, your unshakeable optimism that will still definitely guide us in memory of you.

Men are judged by their acts and by their ability to gain consensus around an idea.

You have done so much… May the earth be light to you and may your path be bright.

Ciao ‘Great Alfredo’, a big hug from all of us.

Enzo Bertolini, President of the CIONET Italy Advisory Board

17 For Digital Leaders

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The digital revolution is generating new processes and sales channels.

The digital client For another year CIONET Spain gathered the most important companies and guests of the ICT industry in Spain together at its annual event. The topic of the eighth edition was oriented towards the digital client. The digital revolution is causing the ICT industry to generate new processes and sales channels. The clients are changing, resulting in different levels of loyalty from the clientele towards the companies.

José Ignacio Goirigolzarri, President of Bankia (l.) and Ignacio Cea, Corporate Director of Strategy and Innovation at Bankia (r.)

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EVENTS CIONET Spain

The ice of the day was broken by the interview of Ignacio Cea, Corporate director of Strategy and Innovation at Bankia with José Ignacio Goirigolzarri, President of Bankia, who talked openly about the journey of digital transformation of the financial entity, which was imposed after a phase of internal restructuring, very demanding within the template.

Once the internal changes were made, Bankia established a strategic plan of transformation, closely linked to the Innovation unit, lead by Ignacio Cea. “In the second trimester of 2015 we thought that we were mature enough and that we could open our windows and inspire the company with what was happening outside. We were in need of understanding dynamics of outside the company and that was the moment when the innovation unit was created. With a great sense of urgency, we thought that the best decision made was to focalise on Ignacio and his team. If we started mixing responsibilities and functions, the speed would probably have been much lower”, Goirigolzarri said.

During the interview they explained to the public that Bankia is convinced that the right thing has been done: the speed achieved in its digital transformation has been spectacular “in these years in which we have reviewed all the processes of the

Federico Flórez, Chief Information and Innovation Officer at Ferrovial

Bank and have completely changed the models of distribution”.

At the entity they know their clients are changing, “and we have to transform ourselves. This means that the whole organisation has to adapt. An office worker will hardly be able to have a conversation with a client who is being digitised if he is not digitised himself.”

After this impressive talk from Bankia, the following round table was initiated by mobile provider, Pepephone, a clear example of a company that focuses on its clients. David Tejedor, CTO of Pepephone, and José Carlos Díaz Lacaci, General Subdirector and Head of Company Operations at Pepephone, were interviewed by Juan Manuel Robles, Cloud Solutions Business Unit Manager at Arsys, the company on which Pepephone relies for its architecture. The mobile provider is known for being cheap for its clients, giving priority to the client service and renouncing marketing campaigns.Tejedor and Díaz Lacaci, explained that to make this method work you need to be agile. “The idea is to do it quick. Think and implement straight away. Always aligning the system or marketing plan with the client”, they said during the round table.

Carlos Molina, Vice President of Innovation at IZO and Professor of Customer Experience at ICEMD/ESIC,

brought the audience right into the heart of the client.

Molina explained that the role of the CIO is fundamental to guarantee certain matters and it’s essential to focus on the client and his emotions.”With the customer experience, an emotional link is generated with the client so that he prefers your brand instead of your competitors, making a difference and reaching out to them through emotions. Not only you do have to solve the client’s problems or doubts, but you have to transmit a good feeling, so he knows that he is not being deceived”.

Nacho de Pinedo Palomero, Founder and CEO of ISDI, digital native business school, started his speech for the audience defining himself as digital optimist specifying that nowadays “It is not so much that we are in a time of change, but of a change of era”.

For him, the keys to all digital business are: digital vision, talent and market, including technology in these three.

Jorge Velázquez, Hospitals Systems Manager; Iván Sánchez, Manager of Information Security; Pedro Cano, CIO Europe & Officer at Microsoft, and Luis Miguel Rosa, General Director of CIONET Spain, established a debate around the importance of the implementation of security

processes in Sanitas, a company dedicated to private healthcare.

During the round table they highlighted that the medicine has become more preventive and personalised, and to make this a reality the cloud has been a key factor and will be even more so in 2017 when a global explosion of IoT is expected. Pedro Cano explained that in the field of data protection “Microsoft Cloud is the only global cloud provider with an express authorisation from the Spanish Data Protection Agency that enables international data transfer”.

The final conference of the day was held by Nuno Pedras Iberia Global IT Director and Global IT Marketing Strategy at The Coca-Cola Company.

Pedras, confessed that the creation of a customer journey at the Coca-Cola Company had its difficulties at the beginning but nowadays they dedicate 22% of their investment to the unification of digital marketing in order to create an omnichannel experience for their clients. “In this transformation it is essential to detect the important data and understand how to model it so that it generates valuable knowledge for the company. Here it is where the figure of the Chief Digital Officer begins to make sense at Coca-Cola”, explained Pedras.

CIONET Spain EVENTS

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What’s next? A new face of digital leadership

What is modern leadership?

During the annual conference ‘What’s Next’, organised by CIONET Poland, our goal was to find answers to questions of great importance for CIOs, such as: What is a modern leadership?

How is the role of a Digital Leader changing?

How to achieve work-life balance?

Professor Cezary Wójcik, Director of the Center for Leadership

CIONET Poland 2017 Events Calendar JANUARY 17TH ‘Machine Learning’ MARCH 7TH ‘Privacy GDPR’ APRIL 26TH ‘BlockChain Revolution’ MAY 24TH ‘Customer Experience, Digital Business Models’ AUGUST 24TH ‘Work Life Balance’ SEPTEMBER 12TH ‘Cyber Security’ OCTOBER 19TH Digital Leader Gala’ NOVEMBER 30TH ‘Soft Skills, Next Job’

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EVENTS CIONET Poland

Professor Cezary Wójcik, Director of the Center for Leadership, discussed the elements which are constant in a changing world, such as human nature.

Because of its inalterability, the challenges faced in the past remain the same nowadays. In his opinion, leadership begins with posing questions concerning a more profound sense of work, the way of transmitting this sense to other people, the responsibility of a leader, his determination and attitude when facing problems and creating reality. People who have the ability to change the world and who are not afraid to take on responsibility and act, consider problems as a part of their plan. The greater goals they pursue, the bigger problems they will encounter on their way.

The participants of the panel discussion focused on challenges related to digital leadership. Piotr Czarnecki, CEO, Raiffieisen Polbank, Michał Możdżonek, VP, ZUS, Piotr Muszyński, VP, Orange Polska and Feliks Szyszkowiak, VP, CDO, BZ WBK, perceive digital transformation from the point of view of shaping the strategy of the whole organisation.

What is the best leadership model?

How should the interaction between a leader and a group of managers be carried out in the organsation?

It is important to anticipate the market trends and the approaching changes. It is worthwhile to choose a suitable wave of changes, in a state of permanent change, and to try to manage change.

It is necessary to develop the ability to listen and to selectively approach problems to be solved.

The CEO’s competencies are becoming too limited, they should be enriched with the CIO’s competencies.

The era of hierarchic organizations is coming to an end. Leaders should start perceiving people through their skills and not the position they hold in the organization. The point is whether they add value to the company. A leader without a team is only a nameplate on the door.

This article is based on the annual conference ‘What’s Next’, organised by CIONET Poland.

Cristina Álvarez Álvarez received the ‘Engineer of the year’ award.

Enabling growth by using technological abilities The Spanish Official College of Telecommunications Engineering (COIT) and the Spanish Association of Telecommunication Engineers (AEIT) has named Cristina Álvarez Álvarez, Services Manager and CIO of Telefónica, as ‘Engineer of the year 2016’. CIONET Spain interviewed Álvarez to know more about the background and impact of this award.

Cristina Álvarez Álvarez, Services Manager and CIO of Telefónica

What does the earning of this award mean to you?

“Above all it’s an honor and pride.

Those who studied telecommunications know this award is very special and emotional, because it’s a recognition from the colleagues of our profession. In the 24 years of my professional career, engineering and technology have been the main fields in which I have been learning and growing, always complementing with skills that one cannot learn by studying, allthough those are equally important.

In addition, this award allows me to appreciate the real drivers and authors of this journey: my husband, my parents, my sons and all those who have thrown me into the deep and helped me learn to improve as a professional and as a person.“

In your day-to-day life, how much is your work about engineering and how much about C-level, such as management, administration and strategic thinking?

“In my current position, everything turns around the people and how to obtain the maximum from them.

Here you see a lot of C-level. But when you manage technical equipment, as in my case, it is very important to have technical criteria, which does not mean you need to be an expert, but you have to be capable to construct the vision and the path of transformation, combining business and technology. This requires a constant learning process, on the level of technology but also understanding how organisations are reinventing themselves.”

In your opinion, what is the exponential value that a team like yours provides to Telefónica?

“With the years, I have been building a team I feel especially proud of, because they live and understand the business from the viewpoint of technology. Our value is to enable the growth by the use of technological abilities with the time to market as the distinguishing element. On the other hand we also contribute to the digitalisation of the company, at the same level for our clients as for our internal processes. We are, as my boss Luis Miguel Gilperez likes to say, the X-ray generator of Telefónica Spain, because through the systems and the platforms we know how the company is working and how the relations between us and the clients are.”

CIONET Spain EVENTS

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The Lisbon Web Summit has drawn attention to the impact of innovation on society.

Filter bubbles

In 2009 a group of techies with special interest in anything Internet, who where fed up with the mainstream events, started the first Web Summit in Dublin. A couple of hundred visitors were attracted and several start-ups tried to get their attention. Nobody could imagine that one of the most promising start-ups there was probably the Web Summit itself.

Maarten Kleyn, IT Manager at HDI Global SE

Fast forward to the Web Summit 2016 in Lisbon… 53.000 visitors eagerly try to squeeze into the different venues of the now very hyped summit. Not to mention a baffling 1000+ start-ups trying to catch the eye. Among this huge crowd a small, but seasoned group of tech leaders joined as the Dutch CIONET representatives.

Staying together as a group lasted about five minutes as each of us was drawn to different kinds of start-ups in Alpha, Beta or Launched state with eye-catchers such as chatbots with real-time translations, webcams that recognise emotions, blockchain solutions for Fintech and a whole range of AI applications. Not to mention being drawn to keynote speakers including

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EVENTS CIONET Netherlands

John Chambers, Facebook CTO Mike Schroepfer, Twitter’s Jack Dorsey and Elon Musk. So much information was as overwhelming as the Internet itself.

In addition to the chaos, the spam and the use of grandiose terms such as ‘transformational’, ‘disruptive’ or ‘revolutionary’ described what sometimes seemed nothing more than a new way of doing regular office work.

The trend of this year was about applying big data using algorithms, machine learning and AI. One of the keynote speakers was an AI robot. All the solutions are supposed to bring business closer to the customer, increase efficiency and reduce the required number of FTEs (people). One speaker quoted that 41% of current

53.000 visitors attended the 2016 Web Summit in Lisbon.

jobs will disappear over the next 20 years. And that’s great, except it’s not.

What are 50 million cab drivers going to do when the self driving cars take off? Where are all call centre employees going when Al takes over their work? These words sounded more urgent when on day two everyone, especially the Silicon Valley leaders, woke up to the totally unexpected news that Trump had become the winner of the US election.

In one of the panels they honestly admitted that maybe it was partly their fault, being so focused on innovation and efficiency, without noticing the impact on society. “All those people we put out of work, end up voting for people like Trump when we don’t offer an alternative.” Some CEO’s had been pondering these kinds of ethical dilemmas before and actually started hiring philosophers and ethicists to advise them on their strategies going forward.

Ideological bubbles The other discussion Trump’s election ignited was the notion that all these great algorithms and personalisation tools actually were making everyone’s world smaller and smaller instead of bigger.

This ‘filter bubble’ is a result of a personalised search in which a website algorithm selectively guesses what information a user would like to see based on information about the user (such as location, past clicks and search history). This way users become separated from information that disagrees with their viewpoints, effectively isolating them in their own cultural or ideological bubbles.

As such, Trump supporters were mainly fed up with pro-Trump news and Hillary supporters with pro-Hillary news. And on top of this the Russians were putting some hacked info on Hillary in the mix.

But thinking it over, I realised that in 24 hours of Web Summit I had created my own filter bubble looking at the negative impact of these inventions.

Deliberately putting on my positive filter I soon found a start-up Atlascrop that will bring poor farmers together, to share knowledge on farming with less pesticide, gaining productivity, or sharing tractors and tools. I tasted great beers from Minibrew, a micro brewing device, snapping at the heels of the Big Brewers, that raised 200k on Indiegogo.

I listened to Andrew McAfee (MIT Initiative on the Digital Economy) who told us that thanks to digitization a clear trend was evolving where the human race is now starting to use less and less natural resources.

And... I realized that there were now more women attending the event than ever before.

At night, In the Lisbon bars, I talked to young entrepreneurs that were more interested in purpose than ‘growth hacking’ and really late, in the darkest corners of those bars, I heard some people whispering about starting up their own, brand new, transformational and disruptive Web Summit 2.0.

This article was written by Maarten Kleyn, IT Manager at HDI Global SE.

CIONET will be hosting a trip to the Web Summit in Lissabon in November 2017. Interested to join this packaged 3-day trip?

Please contact: floortje@cionet.com

CIONET Netherlands EVENTS

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A celebration of outstanding projects developing European digital competences

European Digital Skills awards CIONET had the honour of helping judge and present the new ‘European Digital Skills’ awards on December 1st in Brussels. The Award aims to celebrate outstanding projects developing the digital competences of Europeans for work, education and life in general.

European Commissioner Günther Oettinger (l.) handed out one of the awards to the representative of PROMPT - Professional Master in Software Engineering (Sweden).

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EVENTS CIONET International

European Commissioner Oettinger together with Frits Bussemaker of CIONET handed out one of the four awards to the Swedish for their PROMT project - Professional Master in Software Engineering. With these awards the Commission aims to stimulate the much needed development of eSkills as the rest of the conference demonstrated. According to Brussels new skills will be required from staff, management and leadership functions. People who combine business expertise, digital acumen, and the leadership skills necessary to lead a digital transformation journey are rare.

European enterprises face significant shortages of IT specialists. The shortage is estimated to reach 756,000 in 2020. Industry also needs digitally savvy leaders and innovators. There is a lack of managers and entrepreneurs with skill set. It is estimated that there will be a gap of up to 250,000 eleaders by 2020 in Europe.

Handing out these awards is fun and a high profile activity. It is a recognition from the Commission that CIONET has an important role to play. Over the years CIONET has been on the European stage representing the voice of the community. But more importantly, CIONET and its partners are also partners in various European projects and expert workgroups. Outside of the limelight representatives work in multi-stakeholder and multinational teams developing frameworks, giving

feedback on suggested policies and tool developments. Always with the objective that what is developed meets the requirements of the end users. For instance, the eCF Council project, a sector skills alliance where CIONET is part of a multinational group of 16 organisations under Fondazione Politecnico di Milano, is developing a common reference scheme for joint qualifications and assessment, responding to the ‘dual thinkers’ skill requirements coming out of the new digital technologies: the ‘SMAC stack’ - social, mobile, analytics, cloud - but also the Internet of things, cybersecurity and IT Project Management.

Lacking the right qualified people has been identified as a top priority concern by various CIO communities all over the world, as the digital skills gap is said to cost e.g. the UK economy over £63 billion in lost additional GDP a year, and $1 trillion a year in lost productivity to the US economy.

Helping to find the right solutions is key. And CIONET members are invited to contribute. You can be in a workgroup, join a panel at an EC conference or, simply help by responding to an online survey.

If you are interested in helping, please contact Frits Bussemaker of CIONET: frits@cionet.com

IBM Watson and Marchesa present the first cognitive dress.

Fashion house Marchesa worked with Watson to create something no one had ever seen before.

They applied Watson cognitive technology to help identify materials and colors. The unique dress debuted at the Met Gala, and throughout the night it changed colors in response to social posts from around the world. ibm.com/outthink When everything thinks, you can outthink.

In Luxembourg, Support PSF operators need to adapt to a new, more open financial sector

Being committed to a new world Maintain article 41 as it is? “A useless fight”, the Minister of Finance, Pierre Gramegna, told an audience of Support PSF operators, inviting them to evolve. The ball is now in the court of the IT stakeholders. The challenge they face: repositioning their business to create value and to remain competitive in a more open world. They have a little less than a year to make it happen.

“Are we ready for such a change?”

On 29 November 2016, during the annual conference of Technology & Finance Luxembourg, Thierry Seignert, president of the association, relayed the concerns voiced by its members, Support PSF operators - firms or agents pursuing an activity related or complementary to a financial sector activity, about the possible consequences of the draft law repealing article 41. Facing him, the Minister of Finance, Pierre Gramegna, was invited to present what the vision and the motivations are behind the draft law.

In the last few weeks, the concern felt by Luxembourg’s ICT stakeholders has been tangible, especially for those whose business is built upon the bank confidentiality rule, which article 41 provides for. The draft law 7024 presented by the government

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could have a considerable impact on their business model. This draft includes the modification of article 41, which relates to professional secrecy rules in the financial sector. This would spell the end of the externalisation of services to Luxembourg Support PSF operators. The consequences of such a change seem difficult to assess, even though quite alarming estimations have been made by various stakeholders.

No longer needed Pierre Gramegna, who had been invited to speak and address the concerns formulated by the numerous stakeholders present in the room, took time to explain the reasons that led to this evolution. In doing so, he recalled the important challenges that had to be addressed at the start of his mandate, such

THE NEXT CIO CIONET Luxembourg

as the implementation of the automatic exchange of information and the legislative changes leading to more transparency, allowing Luxembourg to leave the grey list on which it appeared - ‘which had all the makings of a black list’.

“Luxembourg applies the exchange of information. Banking secrecy or professional secrecy has therefore been emptied of 90% of its substance.

What is left today, which includes article 41, perpetuates the model of a foregone era with constraints that no longer have a purpose”, said Pierre Gramegna. “For the most part, Support PSF operators have built their business model upon secrecy as it was considered before. But when it becomes void, why should we keep it? We must evolve”, commented Pierre Gramegna, who also said stakeholders should plan for an ambitious future instead of holding on to ‘a useless fight’.

Threats, but opportunities too The message is clear. If the Minister invited stakeholders to discuss and specify some modalities for externalisation in this new context, he also underlined the need to modify the law quickly. Though the minister recognises potential threats to jobs, which should not be exaggerated, he also spoke of opportunities for the Luxembourg financial sector. “In a context influenced by Brexit, as we have the will to better collaborate with the City, there’s a lot of interest

from companies to have a foothold in the Single Market from Luxembourg.

However, their decision could come with strings attached, namely the simplification of professional secrecy rules”, the Minister added. Same story for FinTech players. And, according to the minister, the vast majority of financial stakeholders present in Luxembourg are asking for legislative changes. “Their motivations are not limited to cost mitigation or outsourcing. Some companies are planning to do insourcing in Luxembourg and establish their European IT pillar here. This can only be possible if we adapt the law.”

A vote before the end of summer While the Minister understands the stakeholders’ concerns, he wants them to be ambitious. “As far as the agenda goes, we will work on and improve the draft law in the next few weeks, so that we can have a text to submit to the Council of State in the first half of the year and it can be voted on before summer or, at the latest, just after summer”, he said. “This leaves us about a year… There will be some uncertainty.

But if we hold on to our goal of being ambitious for Luxembourg and its financial sector, it is possible for us to reorganise ourselves.”

Finding a new position Support PSF operators thus need to

Pierre Gramegna, Minister of Finance

adapt rapidly. They must go from a world dependent on banking secrecy to another, new and more open, world in which they will be competing with international companies.

“The message is clear from now on”, Thierry Seignert told us after the conference. “We have 9 months to rethink our model, to see how we can use our strengths, our skills and our expertise to reposition ourselves and create value in a post-banking secrecy world”, said the president of Finance & Technology Luxembourg.

A think tank bringing together members of the association, as well as

representatives of the Big Four, of law firms, and others will start working on future opportunities for Support PSF operators. “It’s up to us to seize our future, by staying pragmatic and vigilant, but most of all by showing some ambition”, he said. Tomorrow, PSF could for example apply their expertise in managing confidential data to protect sensitive or personal data. “We leave a conservative world, based on banking secrecy, to position ourselves in a more disruptive world.”

This article was written

by Sébastien Lambotte

CIONET Luxembourg THE NEXT CIO

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Turning banks into platforms offering a wide range of interaction with customers

Bank in the era of digital transformation Digital transformation of banks requires that they have to keep on facilitating the use of their services and adding new services to their financial offering. To achieve this they need to turn into platforms which offer a wide range of interaction with customers.

Interview with Feliks Szyszkowiak, Member of the Board of Bank Zachodni WBK, CDO responsible for managing the Digital Transformation Department.

How do you define digital transformation?

Feliks Szyszkowiak: ”Digital transformation - to put it simply - could be described by three activities which use the latest technological developments: digitalisation of end-to-end processes; dramatic improvement of the user-friendliness of interfaces used by customers and customer service employees; and, finally, unprecedented capabilities of using information for customising the offering.

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THE NEXT CIO CIONET Poland

Using information along with, for example, geolocation enables a totally new interaction with customers and more accurate adjustment to their specific needs. If we add to it front-end solutions which are rapidly improving their user-friendliness, clients can get full support from the bank at any place and, practically, any time, in the most convenient way. Equally important are the simplification of processes as well as their end-to-end automation as they enable, above all, shortening customer service time or the clients’ interaction with the bank and, thus, contribute to an increase in the operational effectiveness of the bank by offering more services with relatively better price conditions.”

What are the key external and internal factors which determine the need for digital transformation in BZWBK? “At present, there are a lot of such factors. The most important one is the need to provide the best service and the most extensive product range to earn customer loyalty. When it comes to external factors, one cannot ignore the fact of growing competition, not only from banks but also from other entities which, although they are not banks, are vigorously entering the financial services sector. I am referring to services such as payments, peer-to-peer lending, online currency exchange or many other services related to the financial sector, such as liquidity management or personal finance management. Other important

Feliks Szyszkowiak, Member of the Board of Bank Zachodni WBK, CDO responsible for managing the Digital Transformation Department

factors are the activity of regulators and the growing reporting requirements at national, European and world level.

They impose on banks a lot of additional work which - if it were not to become fully automated - would significantly increase the functioning costs of banks.”

How does BZWBK adjust its products to the new needs of digital market?

“A few straightforward principles that we follow are: significant simplification of the offering and putting into the hands of customers more possibilities to decide what they want to use and how they want to use it. It is very important to keep on facilitating bank services and adding to the financial offering certain other services related to the financial sector. Banks - just like other successful organisations in the world - will need to turn into platforms which offer a wide range of interaction with customers.”

CIONET is offering great opportunities to CIOs to get more insight in their IT capabilities.

The Digital Maturity methodology for CIOs IT-CMFTM is a Digital Maturity methodology, providing an in-depth assessment of the digital capabilities of a company, benchmarks with similar corporations, issue recognition and comprehensive best practices on how to increase these capabilities. CIONET will provide great opportunities for its members to become acquainted with the power of this approach.

As you know the core mission of CIONET is to help CIOs realise their ambition.

Through networking events, online knowledge sharing, peer group facilitation and in-depth special interest groups, we foster the value of the community to the benefit of each of its members.

While these activities cover the need to get new ideas and insights from other professionals, they might be insufficient to cover the day-to-day pressure on our members to increasingly contribute to the success of the business. The time where IT leaders were mainly making sure all aspects of IT ran smoothly and continuously, is gone. IT leaders are now at the centre of corporate strategy and need to have both the ability to formulate a vision of the digital future for their company, as well as the ability to deliver on that vision.

Different ball game This is a completely different ball game altogether. Many IT leaders have

adapted their competences to this new paradigm. But they are not alone. Their complete department (and most often the full organisation) needs to be able to deliver on digital capabilities needed for the business. Every element of the IT operation needs to be aligned for the common goal and, whenever an element is not performing, the CIO needs to quickly understand the nature of the problem and swiftly take action to deal with it. This is not a small feat, but vital for any CIO to be successful.

Recently, CIONET has established strong relationships with the Innovation Value Institute, a spin-off of the University of Maynooth in Ireland. The best practices they have developed over the course of ten years - in strong collaboration with hundreds of corporate leaders and academics - are, in my eyes, a valuable asset to deal with the challenge mentioned above.

It is an overarching methodology, providing an in-depth assessment

together with ‘the business’ of the digital capabilities of the company, benchmarks of these capabilities with similar corporations, issue recognition and comprehensive best practices on how to increase each of these capabilities and increase overall delivery on digital transformation.

As a former VP IT of Procter & Gamble, I must say I am very impressed by the breadth and depth of this methodology, and I am confident it will be of tremendous help to our members to become more successful. Since this is our core mission, we decided to bring this methodology to our members. The next two pages will explain the approach in more details, and in the coming months we will provide several opportunities for you to become acquainted with the power of this approach. Make sure not to miss them!

I am excited to offer these best practices to our members and we will continue helping you deliver on your digital vision. Do not hesitate to contact any of your local CIONET team to discuss this further!

Patrick Arlequeeuw Strategy Director, CIONET International patrick.arlequeeuw@cionet.com

THE NEXT CIO CIONET International

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To successfully lead the Digital Transformation, CIOs have to gain insight in the Digital Maturity of their organisations.

Digital Readiness key for CIOs How to deal with the many challenges of Digital Transformation? IT-CMF™ helps CIOs to gain insight in the Digital Maturity of their organisations. This is not another IT framework but a guide to develop the right Digital Strategy for their companies. Around 300 large global organisations already benefit from this fast upcoming methodology.

IT-CMF is a CIO and senior IT management approach that facilitates continuous performance improvement across the entire IT organisation. IT-CMF is designed to reduce complexity by systematically addressing IT organisational capability gaps, using a toolset containing maturity profiles, assessment methods and organisational improvement roadmaps - which collectively target improved delivery of value and innovation.

The methodology: -- objectively identifies gaps in IT capabilities that are limiting IT performance and delivery of business value and innovation; -- contains standardised organisational assessment tools that allow organisations to benchmark themselves against similar organisations; -- defines a systematic structure to implement best practice improvements in IT performance and to measure benefits over time.

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A methodology to improve IT Enterprises often expect IT to be a flexible, on-demand enterprise resource.

To deliver on this expectation many CIOs and IT decision makers have to regularly address a range of IT management challenges.

Some typical challenges include: -- Organisation-wide Evaluation: agree a balanced view on key areas to improve IT performance; -- Alignment: build alignment for IT to meet the current and future needs of the organisation; -- Funding Management: determine if IT spending is reasonable and transparent; -- Value Impact: prioritise IT investments and realise business value impact; -- Solution Agility: reduce technology complexity and boost agility; -- Service Management: sustain or improve IT service levels and customer satisfaction;

THE NEXT CIO CIONET International

-- Sourcing Arrangements: evaluate and leverage the potential of IT service providers; -- Governance and Risk Control: balance decision-making effectiveness and enterprise risk management; -- Resources Planning: match IT fulfilment ability with IT consumption trends; -- Enable Innovation: catalyse innovation by leveraging IT; -- Organisational Design: define organisational responsibilities and reduce duplication of work; -- Management of Change: deliver and embed transformation with minimal disruption.

Until recently, no single IT management system comprehensively addressed the whole range of challenges faced by CIOs and senior management. IT-CMF contains the universal components (or critical capabilities) that can be dynamically configured to address these challenges. The methodology supports the development of enduring IT organisational capabilities, as opposed to static, one-off solutions.

By using IT-CMF, CIOs and management can: -- identify and prioritise gaps that are constraining IT performance; -- develop clear roadmaps for improvement, execution and tracking benefits; -- incorporate continuous improvement into the IT organisation;

MANAGING IT LIKE A BUSINESS

MANAGING THE IT BUDGET

AA

Accounting and Allocation

BGM

BP

Business Planning

BOP

BPM

Business Process

Management

CFP

Capacity Forecasting

and Planning

DSM

Demand and Supply

Management

EIM

Enterprise Information

Management Innovation Management

ODP

IT Leadership and Governance Organization Design and Planning

RM SAI

SRC SP SICT

PPP

MANAGING IT FOR BUSINESS VALUE

CAM

Capability Assessment and Management

BAR

Benefits Assessment and Realization

EAM

Enterprise Architecture Management

PM

Portfolio Management Total Cost of Ownership

Funding and Financing

Portfolio Planning

and Prioritization

TCO

ISM

Information Security Management

KAM

Knowledge Asset Management

PAM

People Asset Management

Programme and Project

Management

PPM

RAM

Relationship Asset

Management

RDE

Research, Development,

and Engineering

Each critical capability has five levels of maturity

Risk Management

SRP

Service Analytics

and Intelligence

SD

Service Provisioning

Solutions Delivery

Low Maturity High

IM ITG

FF

Budget Management Budget Oversight and Performance Analysis

MANAGING THE IT CAPABILITY

Sourcing

SUM TIM

Strategic Planning Sustainable Information and

Communication Technology

UED UTM

Supplier Management Technical Infrastructure Management User Experience Design

User Training Management

OPTIMIZING ADVANCED INTERMEDIATE BASIC INITIAL

IT-CMFTM Critical Capabilities

-- identify and address skill gaps through training and accountability; -- embed a business management system for IT performance enhancement.

Understanding the methodology IT-CMF’s critical capabilities (CCs) represent key IT management domains. These must be mastered, in order to deliver specific outcomes in support of value creation. Critical capabilities are grouped under four macro capabilities (see figure). Each critical capability comprises the following management tools: -- Maturity Profiles: a five-level maturity ladder, which documents increasing levels of capability performance improvement; -- Assessment Instruments: to determine an IT organisation’s capability maturity, in addition to its strengths and weaknesses; -- Practices, Outcomes and Metrics (POMs): best practice recommendations of how IT organisations can improve their IT performance.

Advantages over other methods Which advantages can IT-CMF offer over other IT frameworks and methods? While useful methods are available, many are very specific to a single technology management domain.

Furthermore, these approaches may aim to optimise specific IT processes – but may not reflect the wider impact on the overall performance of the IT organisation, which operates as a connected system. They simply describe how IT activities and processes should be performed for specific aspects of IT and assume a static environment.

By contrast, IT-CMF embodies dynamic capabilities that exemplify the next generation of management systems. IT-CMF defines IT capability simply as what IT can do (or needs to do) for the business. It is the ability of the IT organisation to systematically and repeatedly mobilise processes, people, technology and knowledge towards achieving specific outcomes.

IT-CMF is a unifying IT management

methodology that offers a holistic management view to improve the IT organisation. Using IT-CMF to mature IT-organisational capabilities, CIOs and senior IT managers can take quantum leaps in managing IT for value and innovation.

About the Innovation Value Institute (IVI) IVI is a not-for-profit organisation that hosts an international consortium of organisations across public and private sectors. IVI promotes an open eco-system of research, education and assessment services based on IT-CMF and related research areas.

IVI operates an open-innovation collaboration model – where IT professionals across multiple industries, together with academia, jointly define research and validate IT improvement best practices.

Want to find out how IT-CMFTM can improve your IT performance? Contact Jeroen Kleinhoven (jeroen@cionet.com) or Herman van Bolhuis (herman@cionet.com) or visit the website at ivi.ie

CIONET International THE NEXT CIO

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Who can deny that our life is becoming increasingly more digital every day?

Digital transformation requires a new CIO role

New technologies such as Artificial Intelligence, Machine Learning, VPAs (Virtual Personal Assistants), VCAs (Virtual Assistants), Autonomous IoTs, Virtual and Augmented Reality, Blockchain, Distributed Logs, MASA (Mesh Application and Service Architecture), SDN (Software Defined Networking), Adaptive Security Architecture and Cybersecurity, Intelligent Digital Mesh, BigData, 3D Printing, BOTs, Drones, Autonomous Cars, Biotechnology, Chatbots, and Sharing Economies are currently realities that affect technological strategies to be developed by CIOs for the short, medium and long term.

CIOs have to reinvent their structures to ensure the agility of innovative processes and maintain the support of ongoing operations.

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THE NEXT CIO CIONET Brazil

Large industries have begun to install sensors in cars, locomotives and aircraft turbines, generating new services based on predictive analysis. Traditional segments such as Finance, Banking and Insurance are being pressured by the entry of new competitors, digital players, Fintechs and Insurtechs. The Media industry and Tourism companies are quickly embarking on the massive creation of Virtual Reality content for the evolution of their businesses.

We are witnessing a disruptive transformation in the area of Health with biotechnology being applied to revolutionise the present and the future, with, for instance, 3 mm wireless implants in limb prostheses; the creation of cartilage with 3D printers; the

improvement of flexible medical biosensors; or the use of Wearables, IOTs and Mobile Health for accurate patient monitoring, fitness performance gains, and improved well-being.

The interactions between clients and companies in the most diverse industry segments, are facing a great revolution with the use of Bots and Chatbots. Moreover, the emergence of e-sports with organised professional video game competitions is already a fever and captures an audience of millions of unique users around the world, affecting the video game and entertainment industry.

The research and development of autonomous vehicles foreshadow a revolution in the way we currently

Roberto Portella, CIO of Valor EconĂ´mico S.A., CIONET Brazil Advisory Board President

move around. The major researchers in this segment are not only companies in the automotive industry, but also in the technology and services industries: Google, Apple, Uber, Lyft, Volvo and Ford. This means that current legislation will undergo a great change to regulate the public use of these innovations.

Personal Assistants and Voice Assistants are already present in our daily lives. Siri, Alexa, Cortana and Google Assistant are becoming popular and transforming the way we use our electronic devices.

Technology is changing at an unprecedented speed and we are experiencing the so-called 4th Industrial Revolution - The Digital Era, where the fusion of technologies enables the merging of the physical, digital and biological spheres.

The new role of the CIO Within this scenario where the digital age is rapidly gaining space, the role of the CIO is also changing. Research shows that in the last two years, IT leaders have gained more boardroom space and that expectations increase so that they become the catalysts of digital innovation in their companies, leading them to the exploration of this new ocean.

‘We are experiencing the so-called 4th Industrial Revolution The Digital Era.’ In an increasingly competitive and disruptive market, the companies that will take the lead will be those that show that they are becoming digital business in a comprehensive way. This presents several new challenges to CIOs, much more related to strategic business aspects for which their skills are being targeted and required.

The new ways in which employees and customers have begun to relate to organisations have led IT leaders to paying a great deal of attention to market trends and innovative technologies, requiring CIOs to be more capable of assuming their role as manager of a business, which is becoming increasingly more important for the current success and future survival of their organisations.

The development of new business models, R & D, the engagement with marketing and digital strategies, and the recruitment and management of talents with the skills needed for digital transformation, compel IT leaders

to develop the capacity of multidisciplinary management, which is much broader than just technological management.

The innovation leading to business results has become a top priority on CIO agendas. Establishing alliances and partnerships with the other C-Levels of organisations and implementing a more agile infrastructure that can quickly meet the demands of the market are the focus of technology managers. Some research shows that spending on Cloud services, SaaS (Software as a Service), PaaS (Platform as a Service), IaaS (Infrastructure as a Service), Analytics - BI, MbaaS (Mobile Back end as a Service), Cybersecurity and IT services are booming, while hardware and software expenses are declining.

Another major challenge for IT managers is the low level of control over the hiring of technologies that has been carried out directly by other business areas. According to some surveys, around 30% of IT investments are already made without the direct participation of the technology departments.

IT organisations are also fully evolving.

The adoption of emerging technologies results in requiring changes and

CIONET Brazil THE NEXT CIO

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adaptations in their structures. New functions are being created and incorporated, such as the IoT Architects who ensure that IoT solutions are compatible with established core technology platforms; Cloud Agents managing the various cloud service providers; and Integration specialists who are responsible for the incorporation of new technologies. This requires CIOs to reinvent their structures to ensure the agility of innovative processes and ensure the strength required to support ongoing operations.

an IBGE survey, Internet access in Brazil has grown 7.1% in all regions of the country and surpassed the 102 million Internet users mark, also representing an increase in the proportion of Internet users in relation to the population. In addition, according to Gartner analysts, IT spending in Brazil is expected to grow 2.9% in 2017, reaching $ 236.1 billion, above Latin American growth with a projection of 2.5%.

The expectation is that for the next year, the Brazilian market, also under pressure from the Digital

Transformation movement that is dictating the rules in the business world, will provide the Technology areas and IT leaders Brazil a more balanced condition between the focus on current operations and digital initiatives, but still far from the level already achieved in more mature markets.

This article was written by Roberto Portella, CIO of Valor EconĂ´mico S.A., CIONET Brazil Advisory Board President

IT scenario in Brazil While in other economies CIO agendas have privileged Digital Transformation actions, in Brazil, the last two years have been marked by the sharp economic and political crisis that drastically affected the domestic market, reducing revenue capture and imposing reductions in IT. Thus, the management of the technolgy departments remained focused on sustaining traditional business processes and on improving efficiency, achieved through automation and integration of processes and cost reduction, which, in general, limited the efforts for the projects of innovation and digital transformation.

The great capacity of execution coupled with the creative ability of the Brazilian CIOs, however made possible that digital innovation needs were not completely ignored due to the reduced budget, and many of the budget savings obtained were converted into digital initiatives, such as Cloud adoption, Execution of Mobility, Collaboration, Analytics and BigData projects, among others, allowing companies to follow their digital transformation course, albeit at a slower pace.

Nevertheless, Brazil is beginning to show signs of recovery. According to

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THE NEXT CIO CIONET Brazil

CIONET in Brazil Launched in 2015 in Brazil, the CIONET network expanded greatly in 2016 in Brazil.

Our Advisory Board is currently made up of 21 CIOs who stand out in the technology market, covering the most diverse industry segments such as: University/Education, Beverages, Port Services, Media, Health, Agro-Business, Insurance, Cosmetics, Appliances, Technology, Transport, Retail and the Automotive Industry.

We have the privilege of having renowned Business Partners and Strategic Partners such as Intel, FIA, Google Cloud, Bridge Consulting, Patricia Peck Pinheiro Advogados and CUBO Coworking ItaĂş.

Throughout 2016, we promoted four thematic meetings, addressing an audience of 250 Brazilian IT leaders with relevant issues of interest to our market. And for 2017, we are working on a series of meetings in order to continue to foster the evolution of the CIO community in Brazil.

At this time of major technological revolutions, as well as in the very role of the CIO, it is crucial to understand the local and global markets in depth, to evaluate trends and emerging technologies in order to verify their applicability and to follow the practices, initiatives and experiences that senior market leaders are embracing.

In this sense, CIONET Brazil is a perfect instrument to accelerate this evolutionary curve, allowing CIOs to turn challenges into advantages and realise their full potential as a leader of expression in the technology market.

Join us!

The speed of digital transformation is getting faster all the time.

Where will digitisation lead the CIO? The hype around the subject of digital transformation seems unabated, although the topic is not really new in the sense of the use of new technologies. What is dramatically changing, however, are the many possibilities and the increased speed of ever faster transformation, which is enabled by the use of digital technologies.

Dr. Michael Kollig, Group CIO of Unternehmensgruppe Theo Müller

Jürgen Renfer, CIO of Kommunalen Unfallversicherung Bayern

As part of the CIONET Membership Survey on CIONET Germany’s ‘Agenda 2017’, we asked our members for input to a high-level Digital Maturity Check.

When asked if ‘My role as a CIO has changed and has become more important’, 72% of the CIOs questioned answered positively. Reason enough to ask some of our CIONET Germany Advisory Board members what their thoughts are on the question ‘Where will digitisation lead the CIO?’

task while not forgetting that successful digitisation can only be achieved on a solid basis of data management and architecture.”

Dr. Michael Kollig, Group CIO of Unternehmensgruppe Theo Müller: “Although it is often presented in this way, the topic of digitisation is not fundamentally new. The business-oriented CIO has always had the core task of automating, accelerating and digitising business processes. What has certainly changed are the possibilities for digitisation. Here, the cloud, analytics and mobility have raised the topic to a new level.

For CIOs, this means keeping the focus on the business process core

Jürgen Renfer, CIO of Kommunalen Unfallversicherung Bayern: “It is the task of the CIO to lead the company as a ‘Navigator through digitisation’. And it is particularly important to use sound judgement applying it.

Digitisation is often perceived as fastpaced, disruptive and difficult to control. In fact, however, this description applies more to comparatively shortterm hypes and not to ongoing digital transformation. What is much more important, however, is what remains at the end for the long term: which digital developments will companies and people take into their everyday life. These trends must be identified.

The rest will be quickly forgotten. To this extent, digitalisation does not differ significantly from previous technological developments.

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Thomas Siekmann, CDO at Müller - Die Lila Logistik AG

Companies and people cannot endure ongoing high-speed transformations.

They therefore do not want any innovation cycles with quarterly rhythms.

And they cannot do it either. I invite anyone who doubts my statement to take a look at the latest flops of the high-tech industry: smartphones explode, cars stink and bank transfers went wrong. These ‘rat racing effects’ are no coincidences, but consequences of unmanageable speeds.

People and businesses are more interested in reliability and security, which in turn requires order.

Therefore, in times of fast change, orientation is very much in demand.

Going nowhere at full throttle is not a sensible option. This puts an extra challenge on the CIO, but given our specialist knowledge we are best suited to create digital competency

of CIOs confirmed that digital transformation has changed their roles and made them more important for their organisations.

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as well as digital objectives in the company: where do we want to go, which digital tools are important for us, which ones not?

Analogies to the analog world can be suitable for this transformation, as they project what is known to Digital, which draws its first attraction from the new and the unknown. Digital is often perceived as abstract by many people. As soon as the abstraction is penetrated, the initial wonderment changes to sober consideration: what will it do for me? CIOs can assist in this transformation process and protect businesses and people from painful digital mistakes, by separating useful digital solutions from digital hype in an early stage.

If CIOs manage to maintain a good balance between worrier and navigator, they have a good chance of permanently cementing their central role in the company as a trusted authority.

However, good craftsmanship from innovative planning, digital development and efficient business operation is a prerequisite for achieving this.”

Thomas Siekmann, CDO at Müller - Die Lila Logistik AG: “Digitisation was THE keyword of the past year.

Certainly rightly so, because there is no doubt that our world will change

THE NEXT CIO CIONET Germany

rapidly through the impact of different technologies. Equally, we have also become aware of the extent to which our world - including the corporate world - has already changed.

We operate in highly networked, mobile processes. We have long been connected digitally across supply chains throughout the company. In our own industry we see the just-insequence chains loud and clear.”

What does that mean for the CIO? “On the one hand: find a realistic way to orientate between hype and negation, between over- and underevaluation. Nothing comes as fast as hoped, other things come much faster than feared. There is no recipe for this, no consultants will make the daily effort to focus on the right things and to recalibrate every day. It remains difficult.

On the other hand: Let’s make use of the new focus of our leadership on digitisation. Although digitisation is not simply the continuation of the ‘old’ IT and dramatic changes of business models are at hand, people have regained a fundamental understanding of the potential of getting out of the nerd corner and getting out of the cost-driver image, right into the centre of corporate life. The chances are better than ever.

Moreover, there will always be the bread-and-butter IT. Furthermore, whoever does not deliver loses.

In times of new digital businesses, smooth functioning of e-mail, ERP and supply chain is fundamental. Our basic IT business has to be managed with concentration and thoroughly.

Anyone who does not take the chance to optimise IT radically and automate and relocate it into the cloud now, won’t have the time to face the new challenges with appropriate attention.

And finally, we have been given the chance again to talk about innovation and become a translator for innovation. What can technology do, even if it is not classic EDP? Where will it be of use in our organisation? Who else in the market could attack us, who had no chance to do so before?

Many members of the board would argue this case very strongly – so let us take it up now. For this however, it is mandatory for us, to speak the language of the business, otherwise someone else will come to take away the opportunity from us.

All in all, there are many opportunities, but for the CIO, digitisation is neither a self-running nor a simple under­taking. Those who have understood their role as a translator and who already have recognition from the business today, will find the right path for sure.”

‘Find a realistic way to orientate between hype and negation.’

Your views?

Now that we have shown you the thoughts and visions of three CIONET Germany Advisory Board members, we would like to hear from you: Do you agree, do you have other views?

This topic is probably the most important topic for today’s CIOs. Let’s discuss it on our CIONET platform and in our Community Events, so that we share with and learn from each other what the best strategies are to not only stay relevant, but even become more relevant in our organisations.

This article was written by Tobias Frydman, Founder and Managing Director of CIONET Germany.

Charging stations and diamonds: CIOs and the blockchain technology

applications for the industry, which could enable new business models.

The stage was set for an interesting session about blockchain when the attendees entered the exclusive boardroom at one of Munich’s leading Hotels on October 20th, 2016. The goal to be achieved was to ‘deepen the understanding about this disruptive technology and discover possible use cases for their own organisations.

After four hours of intense, very focused knowledge sharing and discussions amongst CIOs from various industries and the public sector the result was impressive. The attendees not only achieved a very good understanding of blockchain, but also of what is possible today, what may come next year or may be possible in the future. The open dialogue, with pros and cons, however, also showed that some of the attendees today lack complete trust into this groundbreaking technology.

To achieve this goal, two experts of CIONET Germany’s Content Partner MaibornWolff started off with providing the required knowledge about the blockchain technology itself, as well as about cryptocurrencies such as bitcoin. After this, two blockchain start-ups showed their blockchain applications: Blockpay, a digital payment solution, and Oursolargrid, an award-winning solution for the energy sector. To complete the picture, Dr. Markus Hablizel of Allianz Insurances AG Germany, presented various corporate blockchain use cases, which were not only limited to classical fintech - hence insurance solutions - and introduced the attendees to B3i, the blockchain initiative of the insurance industry, which aims at establishing standards and

“The blockchain democratises” – that was one the conclusions when CIONET asked to summarise the disruptive charm of the blockchain technology. Because the key to blockchain solutions is only knowledge, not influence, market share or money.

In this sense, everybody - individuals or companies - can make profitable use of it.

One thing is for sure: The discussion about the usability of blockchain technology will surely accompany us for a while – certainly also at CIONET in Germany.

CIONET Germany THE NEXT CIO

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API ecosystems enable new types of partnerships between companies.

New business models in the API economy Last December CIONET Belgium welcomed digital leaders to acquire new thoughts and tan­ gible ideas on how APIs will impact their businesses in the future. Four speakers from different horizons shed their light on the subject.

To stay relevant in the future, traditional banks need to work with start-ups through open APIs. Wim De Waele, CEO of start-up ecosystem builder B-Hive Europe: “In the past, cash payments or manual bank transfers were very expensive and took a lot of time. In recent years, there has been an evolution from expensive server architecture to cheap cloud solutions; from stand-alone solutions to platforms; from product-centric to customer-centric; and from perpetual licences to a SAAS/subscription model.

But banks are hindered by silos between several banking activities, e.g. payments, mortgages/credits, insurance, securities, etc. Each of these activities requires a separate database, which leads to a multiplication of data and eventually a ‘spaghetti’ structure. With the arrival of fintech companies, we have to start thinking about a ‘lasagna’ platform with a layered structure. Such a platform has a common data layer which is available for all banking activities. Another layer is an open layer, enabling banks

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THE NEXT CIO CIONET Belgium

to collaborate with tech companies and create an ecosystem.” Dewaele concluded: “Platforms will be the future and ecosystems the norm.

Companies will thrive in this age of digital disruption if they embrace collaboration and master the art of external innovation.”

API toolbox Jan Manssens, Director Enterprise Strategy, Growth & Innovation of Proximus, presented the EnCo platform. “Proximus EnCo offers a power­ful API toolbox to developers

We have to start thinking about a ‘lasagna’ platform with a layered structure.

which enables them to enrich their businesses or imagine new solutions including IoT, Cloud, Big Data and Telco technologies. This new environment gives developers instant access to the technologies of Proximus and its partners and is linked to a whole ecosystem of digital companies.

Examples of technologies include the Sensor as a Service (SeaaS) API package, which allows developers to integrate IoT into web or mobile applications; the Cloud Channel API, allowing them to integrate several solutions with each other thanks to predefined, customisable connectors; MyAnalytics giving access to Proximus data on customers and visitors; and the DIS API which gives access to Proximus’ database of Directory Information Services.

Proximus provides access to these technologies via APIs, which enable developers to build an original IT solution by adding different blocks of familiar technologies. Users can subscribe free of charge to one or several APIs. During the production phase, they only pay for what they use. EnCo users can also choose to display an API in order to offer or sell access to other users.”

Smart cities Karl-Filip Coenegrachts, CSO of the City of Ghent, shared his views on building smart cities and the role of

Wim De Waele, CEO of start-up ecosystem builder Eggsplore and CEO of B-Hive Europe

Jan Manssens, Director Enterprise Strategy, Growth & Innovation of Proximus

APIs and open data in it. “Ghent uses IoT as a means to enable people to connect, co-create and learn.

The city is working on The Things Network Gent, a wireless IoT network covering the entire city territory. This can be useful, for example, for the monitoring of air and water quality, efficient energy management, increased safety by adjusting street lights more intelligently, or as an extra weapon against crime.”

In 2009, Ghent was the first Belgian city to open its data to developers.

In 2014, the first open API, enabling real-time parking feed, was launched, using real-time data on the car parks and their occupancy. “API’s offer transparency to perform advanced querying and retrieve real-time data and they enable collaboration and participation to perform complex calculations or actions.”

Coenegrachts also referred to ‘Open 311’, an international protocol which was developed by the City of New York. Initially it was an open standard for providing open, free API access to New York’s existing 311 system - a special telephone number which provides access to non-emergency municipal services. An ‘Open 311’ API

Karl-Filip Coenegrachts, CSO of the City of Ghent

‘The digital solution lifecycle requires a mix of additional and new competences.’ will have the effect of opening the current service to all who wish to build on top of it, turning the service from a closed system into an open platform. This standard for open API is now being applied in several cities across the world.

Need for skills Guido Van Humbeeck, Enterprise Architecture manager at VDAB explained how organisations need to think and act differently in the new world of APIs. “In 2013 the notion of ‘competences’ was introduced as the basis for describing jobs, resumes, job-offerings. Partners were requested to enrich their job-offerings with competences, resulting in better automatic matching of resumes and job-offerings. This was a first step towards ecosystem thinking and in 2014 we delivered the first open services for external employment agencies. Today we are setting up formal

Guido Van Humbeeck, Enterprise Architecture manager at VDAB

API management. Currently, partner APIs are being used within the VDAB ecosystem. VDAB uses partners’ open services and VDAB open services are available for partners within the ecosystem.

Where are we heading to? Today, only 8% of companies can deliver a new software idea within three months. But you can’t win from the thousands of creative people outside your company walls. APIs and good API management enable new types of partnerships between companies: fast, immediate, temporary or long lasting.

Moreover, in ten years the skills and knowledge in our organisations will have little resemblance to the skills and knowledge we have today. The digital solution lifecycle requires a different approach and a mix of additional and new competences, as we experience the need for expertise and skills in the area of API delivery.”

This article is based on the CIONET conference ‘New business models in the API economy’, which was held on December 7, 2016 at Living Tomorrow in Vilvoorde.

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Data has acquired a real strategic value that was less tangible in the past.

Implementing a new approach to data Today, data are highly important for companies. And no matter in what economic sector one works, data need to be valued more. Banks are custodians of a lot of data, which they need to control better, so they can be prepared to face recent regulatory demands and seize new opportunities.

BGL BNP Paribas has, for instance, started a vast project to be able to better use the data collected by the bank.

Besides technology and the use of algorithms there is a creative dimension that we cannot ignore.

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How does a bank such as BGL BNP Paribas plan for the opportunities that data present?

Marc Aguilar, Chief Data Officer at BGL BNP Paribas: “The business model of the future will be focused on data and how it’s exploited through the use of algorithms. This is already the case for web giants Google, Amazon, Facebook and newcomers such as Uber: data is at the core of their business. When you think about it, the banking industry is not really much different: we collect a large amount of data and we perform a lot of transformations so that we can, in fine, use them. The challenge that we face is to find out how to best create or exploit information coming from raw data.

As such, raw data has little value. Its value only comes from its processing through algorithms. The end goals can vary greatly, from reporting to

THE NEXT CIO CIONET Luxembourg

developing a strategy. But whatever the scope, without applying intelligent thinking, one cannot go very far. Being a major banking player in a sector undergoing considerable changes, we need to go further than creating algorithms. We need to better control our data so that we can determine what can be done with it and, finally, interpret it as efficiently as possible.”

Philippe Sterno, COO at BNP Paribas Luxembourg: “As of now, this data dimension is integrated within the business strategy. Last year, BNP Paribas created a new position: Chief Data Officer (CDO). A position filled by Marc at BGL BNP Paribas.”

What has justified the implementation of this new organisation since last year?

Aguilar: “Data has acquired a real strategic value that was less tangible in the past. We are going from an implicit towards an explicit data management that is aligned on the bank’s strategy.

Today, data is considered as a core value for the development of the bank and of its services. However, before it can be exploited, the first step is to make sure we control it well, in other words to ensure that we understand the data and that we measure its quality along its whole lifecycle.”

Sterno: “The bank is custodian of a large amount of data that can generate added value. The historical stacking of developments we made in the past and the growing complexity of

Marc Aguilar, Chief Data Officer at BGL BNP Paribas (l.) and Philippe Sterno, COO at BNP Paribas Luxembourg (r.)

‘It is essential to regain control over the fragmented information.’ information systems have led us to progressively lose control over data and information. The same data can be stored in different places, be exploited by fragmented processes, and be transformed by a process that is not synchronised with other processes. Within this, it is essential to regain control over information. This is the challenge that Marc’s team faces, with the support of our IT department and business collaborators.”

Create value from data In concrete terms, how can you create value from data?

Sterno: “The data we dispose of can be exploited commercially. With it, we can improve the knowledge we have about our clients and, thus, propose services or make offers better suited to their needs. This trend of using enhanced data analysis and data mining for better services has accelerated the last two years.”

But data have always been there.

Why this recent acceleration?

Sterno: “Because, until recently, technology didn’t allow for easy mining of huge amounts of data. But the storage of data has been highly democratised and the web now offers a wide array

of possibilities for data sourcing. New technologies made it possible to efficiently exploit these massive amounts of data. It is mostly based on this technology that web giants have developed their business model. Today the objective is to integrate these technologies within the bank to create value.”

Will mathematicians rule the bank of tomorrow?

Aguilar: “The bank already has a lot of in-house mathematicians, if only for management and risk modelling purposes. Their number is due to increase substantially in the future.

Today, technology and the use of algorithms allow us to gain new insights.

However, there is a creative dimension that we cannot ignore. In this context,

new trades come to the fore, such as data scientists who rely on mathematical skills while keeping in mind this creative dimension. Algorithms, however powerful and innovative they may be, cannot replace the human relationships that exist between the bank and its clients. Let’s not forget that, beyond data processing and financial flows, being a bank is about advising and assisting clients in managing their assets and/or helping them meet their financial needs. Nonetheless the new possibilities offered by data mining should make client servicing and client relationship management evolve.”

This article was written

by Sébastien Lambotte.

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CIOs need to think about the human connection to technology.

Beyond tools For the 11th consecutive year, CIONET Belgium organised its Annual Event. This year’s edition was attended by around 100 IT leaders who exchanged their opinions on the important topics for 2017. Once again, CIONET brought together top speakers who presented their best practices and newest insights to the CIO community.

Dirk Denoyelle, one of Flanders’ best known comedians, was the chairman of the day.

The conference was facilitated by the chairman of the day, Dirk Denoyelle, one of Flanders’ best known comedians. Since 2001 he has been bringing comedy to companies and conferences. As thinkers and authors shared the stage with business luminaries, the event at Hof Ter Musschen had an eye for the broader picture. One of the conclusions was that the CIO has to adopt a dual speed approach, combining pragmatic and continuous capability questioning with human drive.

‘The CO has to adopt a dual speed approach.’

Annemie Depuydt, Director ICTS at the KUL University in Leuven pointed out the growing importance of MOOCs (massive open online courses). This is a very hot phenomenon and according to her it will change the way universities will do business in the future. “We have seen disruptions in sectors such as hotels and the taxi business. So, why wouldn’t disruption take place in education?” Could MOOCs become a game changer? They offer education beyond the boundaries of the safe campus as MOOC platforms have an unlimited student reach all over the world. With MOOCs, education becomes an Internet-provided good with open ‘free’ access to knowledge from experts. One of the advantages

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THE NEXT CIO CIONET Belgium

Annemie Depuydt, Director ICTS at the KUL University in Leuven

Katrien Dewijngaert, Co-Founder of Start it @kbc

of MOOCs is the dissemination of research results. There are also benefits for the campus community, such as student recruitment, enhancement of education on the campus and support for lifelong learning. The KUL University collaborates with MOOC provider edX that hosts online university-level courses in a wide range of disciplines to a worldwide student audience.

Katrien Dewijngaert, Co-Founder of Start it @kbc, talked about how start-ups think and how corporates can benefit from working with them.

She said that in Silicon Valley startups are often compared to a jungle whereas corporates are compared to plantations. She thinks there is a great opportunity when these two meet.

Start it @kbc is a start-up community that supports and promotes innovative and scalable entrepreneurship. The community concludes partnerships with organisations and companies that adopt the same pay-it- forward mentality. This way, Start it @kbc is building an ecosystem and a dynamic network of early-stage start-ups, scale-ups, incubators, accelerators, mentors, VCs, supporting partners and strategic partners.

The community has hubs in several Belgian cities and is firmly committed to internationalisation in Europe and the United States.

Peter Billiau, CIO of EDF Luminus

Inge Geerdens, Founder and CEO of CVWarehouse

freedom to take initiatives, which will make them enjoy much more what they do.

We might be influenced by algorithms without us even realising it.

Connect with people According to Peter Billiau, CIO of EDF Luminus, IT is more than just technology. In his experience spending the right amount of time to connect with the people and to unlock their energy gives you fantastic results, both technically and on the human side.

Compared to measurable results, e.g. increased output, factors such as increased energy, optimism and fun are less tangible but ‘you can feel the difference’. On LinkedIn, he recently published ‘Five helpful tips to instill a strong culture in IT’ (August 22th, 2016). Openness and communication are key. It is also important to coach and support people, to make them feel proud - for example by paying more attention to accomplished successes - and to give them the

More insights into human relationships came from Inge Geerdens, Founder and CEO of CVWarehouse, and Best Female Entrepreneur of 2015. She is a popular keynote speaker, opinion leader and LinkedIn Influencer. She strongly believes doing good is also good for business. Inge focuses on positive relationships, surrounding herself with optimists, no matter the personal or professional challenges they face.

The most important lesson she learned is probably that with good intent and good deeds, comes good karma.

Olivier Van Duüren, Author and Founder of The Dualarity, wrote the book ‘The Dualarity. Tap into the Energy of Your Personal and Business Transformation’. He talked about how to find the spark in your personal and business transformation. People that are able to do that are able to see around them what the trends are and they are able to energise themselves so that they can transform others while transforming themselves. By doing so they are able to find a balance between performing and transforming.

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Olivier Van Duüren, Author and Founder of The Dualarity

Katleen Gabriels, Postdoctoral Researcher at the VUB University in Brussels

Ethical dimension How about the ethical dimension of new technologies? According to Katleen Gabriels, Postdoctoral Researcher at the VUB University in Brussels and Author, we might be influenced by algorithms without us even realising it. Experiments have even shown that - because we devote so much significance to top hits in our search engines such as Google - they could even influence voting behaviour in elections.

Some philosophical inspiration came from Maarten Boudry, Postdoctoral Fellow at the Ghent University and the Konrad Lorenz Institute in Vienna. He talked about beneficial delusions. The idea is that some beliefs - though they are completely false - might make us happy. A few examples are: excessive optimism - inflated self-esteem or the illusion of control. But illusions can be dangerous. They could lead over­ confident CEOs to worse results, which is, for example, sometimes seen the year after a CEO is named as CEO of the year. For start-up companies illusions could lead to overestimating their chances of success. But don’t we need positive illusions as a motivation to succeed? Maarten presented this dilemma: “Suppose that these positive misbeliefs exist, what are we supposed to do?

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THE NEXT CIO CIONET Belgium

Maarten Boudry, Postdoctoral Fellow at the Ghent University and the Konrad Lorenz Institute in Vienna

Should we sacrifice truth or sacrifice happiness?”

Digital Agenda Deputy Prime Minister in charge of the Digital Agenda Alexander De Croo provided an update on the digital plans for Belgium. “Today Belgium is positioned as the number five country on the Digital Index in Europe, which reflects the fact that Belgium has very good telecom networks and a vibrant economy that is adopting to the digital part of it”, he explained. “In the years to come the emphasis will be on e-government and on making sure that we have people with the right digital skills, who today are so desperately needed by the technology industry.”

‘The private sector will be very important in Belgium’s digital plans.’

“The private sector will be very important in our digital plans”, De Croo continued. “We will much more play a Strategic IT role. The implementation itself will be done by the private sector. We now have legislation that is at the forefront of legislation in Europe. So use the opportunities that are being created. Use Belgium as a

Deputy Prime Minister in charge of the Digital Agenda, Alexander De Croo

testing ground for new services that can be exported to other countries once they are mature.”

Finally, the Minister appreciated the questions from the audience about GDPR and the free flow of data. He was happy to hear that the concerns of the CIOs are the same as the ones his team is focusing on.

This article is based on the CIONET Belgium Annual Event ‘What’s Next 2017’, which was held on January 24th in Brussels.

Best Speaker Award With great pleasure CIONET Belgium granted the award of Best Speaker of its 2016 events to Kalman Tiboldi, Chief Business Innovation Officer at TVH Group. Kalman received this distinction for his speech about how IT organisations should adapt to ensure a smooth adoption of new technologies. He delivered this speech at the CIONET conference on Emerging Technologies on September 27th, 2016. “It was really a great surprise and an honour at the same time to receive this prize”, he commented at the award ceremony.

Women should be significantly represented in the IT sector.

A woman CIO in the middle of the world We are in the age in which women are taking the leadership of IT domains in important companies in Latin America. Vicky Ycaza is IT Executive Director of Delcorp S.A., where she leads companies as Store Ocean S.A. and Ecuagran S.A. Vicky is a member of the CIONET Ecuador Advisory Board. In the following interview she will tell us about her role in the IT world.

What is the biggest challenge you have had to face in the IT sector, which for years has been dominated by men?

Vicky Ycaza: “Nowadays, being a woman in the IT world, is probably more of an advantage than a disadvantage, but at the beginning of my IT career this was not the case. I faced a lot of scepticism from insecure male bosses who did not know how to manage an environment with technical women. This compelled me to be more

Women represent more than half of the workforce in the world.

competitive and hard-working than men performing similar IT functions. In the long run this paid off handsomely.”

What do you think has been the most important contribution you have made to the IT sector?

“One of the most important contributions that I have made in the IT sector in my country was being one of the few women that implemented SAP R/3 - at Universal Sweet Industries (La Universal-Grupo NOBIS) - in a record time of only six months (as reported in an IBM case study).

Another main contribution is that in all the companies I have worked for as an IT manager, I have been able to implement productive solutions that help achieve the companies’ strategic objectives.”

Do you think the role of women in the IT sector is important?

“Women have an innate ability to communicate ideas to other people. This special ability allows women to articulate complex IT jargon into everyday language that all users can understand.

I fervently believe that since women represent more than half of the workforce in the world they also should be

Vicky Ycaza, IT Executive Director of Delcorp S.A.

significantly represented in the IT sector.

I am proud that I represent one of the few female IT Directors in a male dominated IT sector in Ecuador. I hope I have set a good example for future generations of IT women and inspire them to pursue their dreams.”

What do you think are the characteristics to be a good leader?

“A good IT leader has to be able to inspire, persuade, organise, innovate and communicate. This involves the ability to effectively sell complex IT ideas to provide practical solutions to users so that they can be more productive.”

This article was written by CIONET Latam North in January 2017.

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Organisations should use IT to gain strategic advantage and ensure sustainability.

CIO class to be world class Olga Lucía is IT Vice President of one of the largest companies in public electricity services in Latin America, Interconexión Eléctrica S.A. (ISA), which has 33 companies operating in eight countries and four business lines.

The creation of projects, plans and IT activities in collaboration with the business domain, has contributed notoriously to government policies and have led to the growth of her company. It is an honour to have Olga Lucía as a member of our Advisory Board at CIONET Colombia.

We have interviewed Olga who will tell us how to be a world-class CIO.

We must take advantage of the potential of the fourth industrial revolution.

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CIO VISION CIONET Colombia

Is your IT organisation world class?

Olga Lucía: ”We have focused on Information and Communication Technology through comprehensive, proactive and innovative management, to build capacities and business opportunities that enable new ways of doing business, boost the group’s growth and profitability, allowing us to compete in terms of quality and efficiency with any other company in the world.

The incorporation of our technological structure is based on ten principles: -- Merge IT with group and business strategies;

-- Use IT to simplify and speed up company operations; -- Focus efforts on the assimilation and use of IT; -- Take advantage of business synergies by optimising benefits for the group; -- Prioritise the continuity and security of business processes without giving up innovation; -- Manage IT with an integrated model for the group and by business unit; -- Respect intellectual property; -- Leverage IT management in operational outsourcing; -- Ensure a low total cost of IT ownership; -- Assign IT costs in proportion to their usage.

Progress has been made in leveraging IT opportunities, ensuring alignment with business strategies and inducing significant company transformation.

We positioned IT as a fundamental basis within the group’s strategic direction and strategic definition, of which we are part. Our challenges not only involve generating new business models using IT to be more competitive, but also enabling new sources of revenue as a step towards diversification.

We are in the fourth industrial revolution and we must stop to analyse and take advantage of the potential to improve, transform and give sustainability to the businesses and sectors where we compete.”

What is the secret to implementing a world-class strategy in the IT sector?

“IT strategy in the ISA Group defines how an organisation chooses, adopts and uses IT to gain strategic advantage and ensure sustainability. The strategy is composed of the definition of adoption criteria and technological renewal cycles, a model of technological disaggregation and the choices for each layer of the model.

This strategy has allowed us to: -- Harness the potential of converging IT and business operational technologies; -- Minimise risks associated with IT assessment and application; -- Realise an optimisation of costs; -- Have economies of scale; -- Achieve greater corporate synergy and integral management of companies.

An IT organisation must lead and contribute to the generation of value in the business, favorably impacting the company’s EBITDA. For this, it is necessary to anticipate, be creative, agile, incorporate into the day-today processes and administration, by packaging knowledge in the information systems, replicating them and generating new knowledge to offer better products and services. In the particular case of the ISA Group and given the regulated system in which our businesses operate, operational excellence is a fundamental basis.”

What are the main factors for achieving world-class leadership?

“Starting from the incorporation and the adequate functioning of the modern and effective instruments of administration, processes and technology, within the ISA Group, we could highlight: -- Know the information technology in the vertical axis of the industry in which the company competes and incorporate it into the company with speed, opportunity and relevance; -- Generate new sources of business that generate cash flow in the company and avoid business obsolescence; -- Be part of the organisation’s toplevel committee so you can work as a team with the CEO and business managers and keep your IT strategy in sync with your business strategy; -- The ISA Group has an IT Governance Model and adopted it as a common operating scheme in its companies to achieve group synergies, responding to the particularities of each business and company, and providing a vehicle for the transfer of practices and the integration of Information and activities.”

Olga Lucía, IT Vice President of Interconexión Eléctrica S.A. (ISA).

‘We positioned IT as a fundamental basis within the group’s strategic direction.’

This article was written by CIONET Latam North in January 2017.

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A new way of approaching safety and operational analysis

CIO in the new drone era Unmanned aircrafts are becoming much more commonplace beyond their civil and military uses. These drones are fashionable and can be purchased at any mall or technology store. They have been useful in large industries and companies.

Rafael Estrada, Information Technology, Telecommunications and Automation Manager of the Antamina Mining Company.

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CIO VISION CIONET Peru

Rafael Estrada, is a member of our CIONET community in Peru. He has more than 20 years of experience in information management in important industries. Currently he is the Manager of Information Technology, Telecommunications and Automation of the Antamina Mining Company, one of the biggest copper producers in the world. He will tell us about the world of drones in this new era from the point of view of his company’s IT. Why should we talk about drones?

Rafael Estrada: “From my point of view, this is the perfect storm for the digital transformation of industrial companies, because of the coin­ cidence of four key elements: -- The mining sector is at a challenging time, with a long cycle of low commodity prices. Many companies are focused on efficiency, productivity and personal safety; -- The technology available is getting better in capacity and functionality at an incredible pace; -- The innovation ecosystem is growing very fast; -- The mindset of top managers about technology is more positive than ever. They also have huge expectations on how the technology could positively impact the companies and the industry as a whole.

With this positive environment and a very close relationship with our key users, we have had interesting

discussions about where we could apply new innovative technologies with maximum positive impact in the key objectives of our company: safety, productivity and efficiency.

There is a great deal of expectation about using drones for parcel’s delivery: who will be first? And where?

Amazon, Google, UPS, etc? With the direct support and involvement of our company’s top management, in 2015 we made a bid for the development and application of drone technology in our Mine Operations department.

In early 2015 we found a new challenging opportunity to use drones in an industrial environment: the supervision of mining operations in the middle of the Peruvian Andean mountains, between 12,000 and 14,000 feet above sea level and experiencing extreme weather from summer to winter.

There was a huge opportunity to have a new view on operational practices; a new approach for safety analysis; and a great message for the fleet operators. Of course, there was some disbelief about the real possibilities of the drone technology.”

‘Users identified new innovative ways of applying the technology for their own needs.’

What are your most important applications?

“At this stage of the development of the solution we have: -- Aerial supervision of the operational practices; from the safety and operational point of view with live streaming to supervisors on different locations and the headquarter offices; -- Productivity analysis of loading and hauling activities;

Earning trust helps to avoid shadow IT. -- Analysis of construction projects progress; -- Security analysis of social situations; -- Geological survey of new areas; -- We also provide ‘drone as a service’ for any department that needs photographic or aerial supervisory services.

At the beginning, we started using commercial drones, after some time and practice we found they didn’t have enough technical and functional capabilities to meet our requirements and future vision, then we started working with a Peruvian start-up, which is developing custom-made drones for us.”

In what environment do you think you have contributed significantly?

“Based on the opinion and feedback from our key users, they believe our most important contribution has been the development of a completely new way of approaching safety and operational analysis of the production process. We have a group of trained drone operators from different organisational domains. Every day they make the decision of when is the best time to fly over some of the production sites and they do the flight by themselves without requiring any support from the technology department. On

each flight, they are able to analyse the operational practices, if the operators are following the rules, the number of movements, the security radius, etc.

Our role has been that of developer, promoter and enabler of technical skills of the users. We developed the technical system, trained the users and showed them some application areas.

After that, they have identified new innovative ways of applying the technology for their own specific needs.

One of the fundamental components for the successful adoption of technology is trust. Earning trust is a must (an old saying from Peter F Drucker), the users need to trust you, be confident that you will be there for them if something goes wrong, confident that you are capable to support and help them in any situation. Earning trust also helps to avoid shadow IT.” How do you think you can contribute to the IT sector?

“In order to make technological innovation viable in industrial companies, our experience allows us to recommend the management model ‘Two speed IT’, in which, first of all, we must fulfill the fundamental role of providing our services with the availability and agreed quality and thus gain space for technological innovation (second speed), seeking opportunities to add value and contribute to the strategic objectives of our companies.

To accelerate the cycles of technological innovation, it is advisable to maintain a strong alignment with top management, to encourage direct participation of key users and to maintain a real link with the start-up ecosystem of your country.”

This article was written by CIONET Latam North in January 2017.

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The Internet of things represents an unexplored wealth of business opportunities.

IoT in the new digital era The Internet of things extends to infinity the possibilities of IT application. Organisations, through real-time connections with machines, can act and react more quickly and intelligently. For them, the IoT represents an unexplored wealth of business opportunities.

During its ‘CIObootcamp IoT in the New Digital Era’ CIONET Italy faced and shared with a qualified panel of IT decision makers of the leading top and middle enterprises in Italy - inputs and interesting ideas on the obstacles and opportunities to be seized along the path to digital transformation, thanks to IoT. We interviewed Francesco Casoli and Vito De Gaetano on these topics.

Francesco Casoli, Elica

slogans, is the already widespread production method in Germany. The Germans have recently published statistics according to which the unemployment rate is now stable at 6%, a level certainly achieved partly thanks to these new production systems, including precognitive maintenance to be able to understand when the machines, systems and production flows must be maintained, or when they have to increase the produc-

Is IoT a tool to enhance opportunities for business? How can Elica orchestrate innovation, development and tradition? How is the IT department changing?

Francesco Casoli, President of Elica: “In the production system of our company, some machines and presses start to incorporate IoT components. At the same time, we came out on the market with consumer IoT products that we are developing. Regarding production systems, we are a relatively complex company: we have eight sites around the world, so we need to control a number of parameters, primarily related to security. Our machines must always be efficient and able to operate for the production with maximum safety and - secondly - productivity. Lately, we have often been talking about Factory 4.0, which, apart from the

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Francesco Casoli, President of Elica

tion capacity. I found that the IoT is nothing more than ‘putting together’ all the things, enabling the use of data to improve the man-machine relationship and to obtain advantages in production phase. This is what happens inside our factories, and it is in this direction that we are increasingly working.

We believe that IoT should no longer be considered as a slogan. For us, IoT is now becoming a normal thing, and I think that

in the coming months and years it will become increasingly essential.

Regarding the evolution of the IT Department, I could describe it in two words: from cost centre it definitely has to become a profit centre.”

What are the challenges, obstacles and opportunities in the field of IoT? “There is one big obstacle: skills. Our country has a very weak educational system in this area. In addition, as a company we can’t find people who want to enter the industrial sector, to which Elica belongs.

Clearly, there is more sex appeal for a brilliant young graduate to work for innovative companies developing apps or virtual games or to work for Google. But as a company, and also as a national economic system, we need these young people.”

Does the consumer perceive the presence of IoT components as an added value?

“The problem is different and more subtle: in six months the consumer does not consider IoT components as added value, but if they are not present, the consumers will choose another product. I think that it will become increasingly more natural to control remotely e.g. the correct operation of energy systems, the lights, the doors, etc. by means of IoT.” What about the role of human beings in this context? Which scenarios are looming?

What are the skills of the future?

“Theoretically, the Internet of things is a new subject and young people should have had more opportunities than previous generations to study it at school, but that still is not the case. Currently, we rely on the good will of young and more experienced people, who instead are self-educated, reading books or surfing on Internet, or who at least are curious and keen to learn new things. Is this enough? Absolutely not, because the competitiveness of new products is only possible with solid skills and not with the enthusiasm of day one.

Obviously, a worker has to really know how to program with a degree of mediumhigh sophistication. Thus, in our plants ‘blue overalls’ have to communicate with systems of high complexity, with tolerances of hundredths of a millimeter and with non-trivial trigonometric or safety problems. Thus, the man-machine relationship has changed radically and in an exponential

Vito De Gaetano, ICT Manager at Bosch curve. Entrepreneurs need to ‘change their spots’ because we are no longer at the head of a traditional manufacturing system.

Everyone must understand their role within the change, but this is not possible without clear governmental instructions and a medium-long-term vision, and this is the real challenge of the future.”

Vito De Gaetano, Bosch According to which principles does Bosch underpin its approach to a vision of global innovation in the industry?

Vito De Gaetano, ICT Manager at Bosch: ”We start from the premise that connectivity between people and objects is growing exponentially. Until 1995 there were only 15 million out of 6 billion people (0.3%) with Internet access, while connected objects were essentially large servers and data centres, But it is estimated that by 2020 there will be at least 7 billion people and over 50 billion objects connected to the Internet.

The technologies for this connectivity expansion are constantly changing. This can also be seen in the need to switch to a larger Internet address, from IPv4 to IPv6 and the need to have wider bandwidth. We see the impact of this data potential on daily lives and on industries, inspired by the idea of being able to benefit from all of this. This challenge cannot be sustained with old paradigms and methods. Market volatility and the tendency to respond to the individual needs of customers push to the production of smaller batches, the availability of 24/7 service, the attention for social communica-

tion and marketing, and to partnerships and collaboration among different protagonists of the industrial and services sectors. Bosch is promoting a portfolio of solutions and a global platform able to address all these needs precisely.”

How can Bosch orchestrate innovation, development and tradition?

“One of many of Bosch’s strengths is both a broad and deep experience in the ‘world of objects’ and ‘the world of IT’, trying to increasingly integrate these two worlds, which are becoming less distinct from each other. Now, at least 40% of the Bosch products are designed to connect, thus laying the foundation for a lot of data and information that can be used to process big data analysis - providing new knowledge for the development of products and services. This way, existing products can be further increased and improved.

Through experience comes the confidence to propose internally integrated solutions and products on the market. For this reason, we use the dual strategy ‘Lead provider’ and ‘Lead user’. Most of the ideas are born in approximately 250 production plants in the world, representing formidable insight into reality production in all countries. Therefore, the best ideas have the potential to be further developed with the help of corporate departments and to be replicated in other plants. We need an organisation that collects and guides the know-how, precisely ... we need a conductor.”

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Who are the key players in your company?

“In the front row there is the human being!

The employees in each of their roles. The goals of data collection, processing automation, and even the production automation are at human service. No less important are the processes - all the ones related to the productive world, even indirect processes and support services such as maintenance, logistics or accounting. In processes we can highlight the importance of humansystem collaboration, and I deliberately say system and not machine because we also speak of the IT infrastructure. Thanks to the standardisation of processes and harmonisation and integration of the different IT architectures, we have witnessed a rapid spread of successful solutions.

Finally, there is the management. In fact, in a radical change of production paradigms, top management involvement and purposeful thrust are essential. Their openness and availability facilitate the creativity of those who daily live the processes and often know where the problem lies. A change is easier if desired, not if imposed from above. We are witnessing the birth of digital leaders.”

How about the role of human beings in this context? Which scenarios are looming?

“A study conducted by Bosch, called ‘Pictures of the Future’ highlights the different most plausible future scenarios based on global trends and research. The main difference is related to the role customers will play in relation to large manufacturing and service companies - the way in which

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CIO VISION CIONET Italy

personal data and information will be managed. The most desirable and interesting scenario is the one in which the customer is still at the centre of market orientation.

With highly flexible offers, he is the creator of many products that he buys (because his opinion is important) and he decides his own level of personal data transparency and visibility. Service and production companies will be very flexible and easily adapt to individual customer requirements, creating single batch production runs.

Proprietary protocols will disappear, smart devices from different manufacturers will speak the same language.”

‘The Internet of things is becoming a normal thing.’

Which are the skills of the future?

“The social responsibility that companies in the IoT sector should have is to prepare new generations to the skills required on the labour market. Computer science will always become more complex, similar to medicine. A generic computer technician will not be enough. Some professions are getting closer and overlapping. Will computer science and mathematics merge to ‘informathematics’? Perhaps it is better to call it ‘data science’. We need specialisations and insights in some areas, first of all in the data analysis sector. We will see professions such as Data Scientists and IT Architects grow. Managers will start to become digital experts and their decision-

making tools will be based on real-time information and predictive data.

Even the consultation of market news or information, publications and articles must be designed in a new way. The exponential increase in the volume of data will lead to faster and more automated analysis.

Information Surfing will become a soft skill.”

How do we dispel the fears related to Industry 4.0 and IoT? “Obviously, great hopes also bring with them a number of questions and fears. Will all this automation take away humans jobs?

Will data security remain at the center of attention? Do we run the risk of transforming our society into a George Orwell’s ‘Big Brother’ society?

Certainly, the work will be constantly changing, but it is quite sure we will not run the risk of seeing factories only manned by robots. Surely we will stay involved in a reduced number of less value-added activities, whilst some of the most difficult and dangerous operations will be carried out by automatons, and the collection and consolidation of data, analysis, repetitive and alienating activities will be outsourced to IT systems. New higher duties will be assigned to the human being, the one who makes the decisions, and, especially, makes questionable machine decisions. Because a great human skill that machines will never have is the ability to doubt.

A Big Brother company? I can honestly say I have my doubts.”

What does the CIO have to know about GDPR?

A new reality of data protection The General Data Protection Regulation (GDPR) will enter into force on May 25th, 2018. On that day we will wake up to a new reality of data protection - one much more demanding and much less friendly, also to IT departments and CIOs. Here’s what is ahead.

Firstly, it will bring financial penalties - a new idea in the data protection legal framework.

Now, we don’t pay a penny for non-compliance with the data protection regulations.

Yet, in the reality of the GDPR, we are at risk of a financial penalty up to 4% of annual global turnover or 20 million euros.

Secondly, there are entirely new requirements. If an organisation processes personal data pursuant to the current regulations, much additional work must still be done.

Thirdly, there is a new, risk-based approach - the end of uniform treatment of all data processing entities. The riskier the data processing, the more thorough the approach.

Fourthly, there are no ‘hard’ guidelines there will be no more explicit guidelines such as a request to change a password every 30 days. Instead, a strategy including adequate safeguards must be implemented based on a risk analysis of factors, such as the type of data, the scale, the objective and context of the data processing. It will be our decision and our responsibility.

In fifth place, it is about privacy by design and privacy by default - a need to take care of privacy and show initiative aimed at its protection. At every stage of a process from planning through designing actions to

operational application - privacy protection shall be included.

The sixth requirement is accountability, a proof of compliance with the GDPR. The policies currently in force might not be enough as they are usually written with the assumption that compliance with a checklist equals compliance with the law.

Accountability involves demonstrating that data processing policies are real, with real execution and real means of enforcing internal organisational compliance with data protection principles.

In seventh place comes supplier management. Pursuant to the GDPR, contracting with an unverified data processor will be prohibited. To remain compliant with the GDPR, only processors that guarantee safe and legal data processing can be chosen.

The eighth requirement is about building consciousness - key to compliance with the GDPR. We must know who processes what and why, from whom, on what basis, and to whom.

In ninth place comes enforcement of the organisational culture. To avoid a rather painful confrontation with the GDPR, those who process data need to build a level of sensitivity to the issue of privacy protection.

Finally, in tenth place, there is a strong

transmission into IT and IT systems. A lack of precise guidelines related to IT might cause the incorrect and dangerous impression that this area is not required to be compliant with the GDPR.

This article was written by Sławomir Kowalski, Senior Associate at Maruta Wachta sp.j., Personal Data Protection Expert.

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GDPR ensures the right to be forgotten and the right to data portability.

The legal response to technological evolution

The GDPR regulation provides a response to the challenges caused by the fast technological evolution in recent years.

GDPR is about the protection of natural persons with regard to the processing of personal data and the free movement of data in the EU. On May 4th 2016, the General Data Protection Regulation (GDPR - EU 2016/679) was published in the Official Journal of the European Union. This regulation came into force on May 24th 2016 and repeals the current legislation on personal data protection, published in 1995, a time when the concepts of cloud and big data did not yet exist and the Internet was in its early days and not widespread. The main objective of this regulation is the protection of natural persons with regard to the processing of personal data and the free movement of such data in the European Union. This regulation aims to respond to the challenges posed by the rapid technological evolution that has taken place in recent years,

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creating a gap between existing legislation and technology. Because of the level of the fines imposed on entities that do not comply with regulation (private or public), it is one of the hottest subjects of the moment, and it certainly will be so next year.

Although this regulation is already in force, its applicability will only start on May 25th 2018 and the maximum fine imposed on entities that do not comply with GDPR could amount to a maximum of 20 million euros or 4% of the company’s annual worldwide turnover (currently the maximum fine in Portugal is around 30 thousand euros).

This regulation brings an enormous opportunity and will potentially affect,

for decades to come, all individuals and all organisations in the EU who process personal data and organisations outside the EU who process personal data from the EU. It is time now to safeguard individuals’ fundamental rights and freedoms in the data-driven society of the future to avoid living in a ‘Big Brother world’ without regulation or any respect for privacy.

If data is your business, or your company employs more than 250 people, you will need - along with all public authorities or bodies - to appoint a Data Protection Officer (DPO), who is responsible for guaranteeing compliance with Article 35 of the EU GDPR.

GDPR will oblige all entities to carry out a very detailed survey of their data models.

‘It is time to safeguard individuals’ fundamental rights and freedoms in the data-driven society.’

The DPO should be an experience professional with knowledge of both technical and legal aspects. Currently there aren´t enough professionals for that job in the EU. Almost all the executives are saying that we will have more than a year to prepare and define things, but, as we all know, one year is a short time for combining procedures with people and technology, at least when there are some new concepts with which everyone will need to be compliant.

New concepts The GDPR brings some new concepts: the right to be forgotten and the right to data portability. The first one is about forgetting and the guarantee of the blocking of personal data. The second one allows citizens to transfer the data provided to a company or public entity to another company or entity. In this way, companies and entities are obliged to provide citizens, in an automated reading format, with the data that were previously made available. But the citizen must consent to portability. In

both cases there are many questions to be asked and the regulation clearly doesn´t answer them.

Another major impact of GDPR is about cybersecurity. Any breach which leads to data loss will have to be reported, putting IT security needs ‘hand in hand’ with privacy.

I think both concerns have to be dealt with together. Moreover, all projects - IT or non-IT - applying the methodology of Security by Design and Privacy by Design will be so important that the ones that don’t will not be considered or will even be banished form the market.

We must not forget that partners and suppliers should participate in the game and they will be responsible for keeping the regulation in place, even if they are not from the EU. GDPR will oblige all entities to carry out a very detailed survey of their data models, otherwise they are unable to meet the regulation. In other words, all companies only have 16 months to put in place the processes, people and technology to respond to the regulations of each EU country, as

Filipe Frasquilho: “I see GDPR as a set of best practices that bring many benefits to organisations, but regulators must be careful and should see it as a continuous improvement process.”

most of them will levy the fines from the beginning.

I see GDPR as a set of best practices that bring many benefits to organisations, but regulators must be careful and should see it as a continuous improvement process. Also keep in mind that technology is always evolving and that it is very easy to be radical with security and data protection. But this could make some of the decisions impossible to achieve, at least on the cost level.

This article was written by Filipe Frasquilho, ICT Director at IPTelecom..

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An obsession with continuous improvement is key for digital transformation.

Digital transformation toolbox Digital transformation focuses on the anti­ cipation of customers’ needs by understanding purchase patterns and delivering personalised communication and experiences.

Digital transformation can also be seen in the new wireless workplace, which is richer, more connected and mobile. In this new era, infrastructure environments have to be both secure and flexible.

At NOS we are building the strongest possible ‘toolbox’ to support the complex and challenging journey of digital transformation. It is structured around the following six themes.

Flexible and secure infrastructure

Manuel Ramalho Eanes: “We believe people today expect high quality inter­ actions with each person and object.”

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Infrastructure environments tend to be one of two: flexible or secure. We don’t want that. We want them to be both secure and flexible. This is only possible if they are designed to be secure and accommodate growth, diversity and speed. This is only economical if the investments and competences to build and develop these ‘business grade’ environments are significant – at the right scale. This implies virtualising networks but also insuring the adequate resilience to the assets they serve. It implies virtualising data centres - legacy and new - but

preserving safe and stable environments for business-critical applications running on them. This all involves solid and continuous hard work.

Wireless workplace The elements of the new workplace are richer, more connected, and mobile. For over 80% of corporate functions a mobile phone is no longer a fringe benefit. It is a tool to do the job. That made us develop offers and processes to avoid having companysupplied mobiles waiting in drawers and have people more freely choose their tools to do the job without extra cost or extra security risk for our customers.

That also makes us think that - for some functions - a tablet can today be a tool as useful as a PC. It makes us think that the LAN has to be wireless - one for the ‘One Company’ - and

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secure, and that content and applications need to be deployed fast without sacrificing a secured corporate workplace application environment. That is why we see Fixed Voice as an app for mobile and Videoconferencing democratised in today’s organisations.

But because the setup, the logistics and the security of this combined environment are unnecessarily complex, we want to guarantee the full pack, integrated, as a service.

Invisible, smart security True security is not about stopping things from happening. It is about identifying them, analysing them and preventing them. The more events we see the more we learn and the better our defence will be. We believe good security is not the one you see, but the one that sees you, and that acts intelligently and structurally on processes, policies and tools, in order to insure that distraction or unawareness don’t put critical processes at risk. For the more obvious rest of all this, we leave the huge capacity of shared perimetric security assets to work - which we help to become smarter every day.

Monitoring An infrastructure that works amidst an ever greater application diversity and transactional demand requires permanent monitoring, decision and action.

We do that every day in our own network and IT environments and we improve every day. But the full benefit of this process and the learning

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‘Good security is not the one you see, but the one that sees you.’ behind it will only be captured through greater insight and responsibility over the critical assets of the infrastructure.

I may see traffic but not equipment. I may see equipment but miss critical application processes if I can’t follow them to the source or don’t know their pattern. What I don’t see I don’t know and don’t understand - and I am unable to prevent.

If we see the full picture of a known reality that we are able to structure and learn from, we can allocate more resources and the right resources (physical and human) and prevent future (or incoming) problems with much more security and assertiveness. Good end-to-end dashboards, great people, good processes and an obsession with competent continuous improvement are the key ingredients of nights well slept.

Omnichannel More and more internal customers and not only Marketing or Customer Service - ask their IT departments for different kinds of contact management tools. They want to integrate email, SMS, social, IVR and Call Centre into their processes. Doing this can be easier with the right tools. It can even be adjusted to the degree of sophistication of the underlying process.

We believe we can help our customers achieve a lot of internal impact with

very little effort by supporting small or big call centres, or by supporting processes based on complex CRMs or on simple excel sheets. This is the flexibility we expect from Digital. It becomes even better if processes are natively and flexibly set up in a PC-, tablet- or mobile logic. But that is more recent work. We are glad to share this.

Rich store experience We believe in a richer, more interactive and personalised retail. Today, we have a powerful arsenal that we are deploying in our stores to identify customers, to understand in-store patterns and hotspots, to deliver personalised communication and promotion and to avoid using paper altogether. All of this arsenal creates friendlier, more convenient and more attractive stores. The learning possible through the wealth of gathered information allows for the continuous and material improvement of customer experience. We are taking this experience and this wealth of information from the stores to the networks of assets, the cities, the businesses and the homes. We believe people today expect high quality interactions with each person and object and we are working on it.

I hope you find this useful work.

Comments are most welcome.

This article was written by Manuel Ramalho Eanes, Executive Board Member at NOS. manuel.eanes@nos.pt

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