Steve Rounsley and Anthony McLaughlin on building connections that really matter
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ow, what an action-packed issue we have put together this month for your reading pleasure! We have two intriguing business interviews lined up from leading lights in the telecoms and contract logistics sectors. First up is Steve Rounsley and Anthony McLaughlin (p6). Steve leads Virgin Media’s supply chain, and Anthony is his Director of Supply Chain Strategy. It was fascinating to hear that Virgin Media’s purpose is built around making connections that really matter. It couldn’t be a more fitting mantra for the postCovid world. On the subject of building connections, Aleksandar Rodic, Global CIO at FIEGE, praises his team for the company’s success in driving forward its digitalisation initiatives. We talk to Aleksandar, along with Leif Lienhard, Head of IT, Logistics Applications; Klaus Luestraeten, Head of IT, Information Management & Digital Transformation; and Philipp Holtgreve, Senior Business Consultant, on page 58. Entrepreneurial Technology Leader Ritesh Jain answers our burning questions of the day on page 82, while we share a preview of this year’s The Women In Technology World Series event on page 48, ahead of its online launch later this month. Plus, we have a great read on the relationship between man and machine on page 24, a report on the latest 5G news (p36), as well as our regular startup of the month featuring pioneering Arrival (p92). Arrival is transforming the automotive industry with its novel approach to the design and assembly of electric vehicles… Be inspired! Until next month…
Editor Anna McMahon
Director Danielle Harris
editorial@ithink.media
d.harris@ithink.media
Senior Digital Designer Daniel May
Director Tom Barnes
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+44 (0) 203 890 1189 enquiries@digitalinnovationeu.com All rights reserved. Every effort is made to ensure the accuracy of material published in Digital Innovation Magazine. However, the company cannot accept responsibility for the claims made by advertisers or contributors, or inaccurate material supplied by advertisers. Digital Innovation is a product of iThink Media Ltd. Company Registration Number: 10933897. Company Registered in England and Wales
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Meet Steve Rounsley and heading up Virgin Me
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EE switches on 5G in 12 new UK towns and cities
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24
How can man and machine work together in the age of AI?
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Entrepreneurial Technology Leader Ritesh Jain answers our burning questions 4
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This issue’s star is reinventing the indus
d Anthony McLaughlin, edia’s supply chain
rt-up, Arrival, e automotive stry
We talk to Aleksandar Rodic, Global CIO at FIEGE, and his team
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A preview of this year’s The Women In Technology World Series event 5
B U S I N E S S I N T E RV I E W
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Building Connecti ns that Really Matter We discuss the value of forging key business partnerships with Steve Rounsley, who leads the Virgin Media Supply Chain, and Anthony McLaughlin, his Director of Supply Chain Strategy.
Written by Anna McMahon • Produced by Jennifer Davies
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Having worked i within various Automotive, A Defence, to fast-m and tech, Steve spent the last career at Vi e is responsible for the planning, purchasing, logistics, and lifecycle management of all products needed to provide services to consumer and business customers, as well for Virgin Media's engineering community, in the management of the network infrastructure. Steve says, "Virgin Media aims to give its customers the best connectivity and entertainment experience, powered by our ultrafast network, which offers the UK’s fastest widely available broadband speeds. “With the usage of our connectivity continuing to increase, we keep investing and providing value to our customers. We spend more 8
in supply chains s sectors, from Aerospace and moving consumer e Rounsley has 10 years of his irgin Media. than ÂŁ1billion on our network each year, and our average broadband speed is more than two and a half times the national average. So, whether it is a settop box, a broadband router, mobile phone, or a high-tech piece of network equipment, in supply chain, we are focused on providing services and products
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network repair partner in MMX Communications.”
to our customer which enhance their experience, while at the same time, supporting profitable growth for Virgin Media as a business.” Virgin Media Supply Chain is a relatively small team, outsourcing operations to bestof-breed partners. Steve explains, “We have one logistics partner focusing on our warehousing and distribution, and that is Kuehne+Nagel. We then have one Customer Premise Equipment repairer – we call it TRR, which stands for Test, Refurbishment and Repair. Our partner is CTDI, who operate from Scotland. We have one mobile TRR partner, which is a company called Unipart, and we have one
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Virgin Media is the UK brand of parent company, Liberty Global. Steve has spent the last five years looking at ways to leverage the company’s global supply chain footprint by reviewing operations in each country to drive efficiencies. He says, “What we wanted to do was bring about a greater focus on our people and the customer. Virgin Media launched its purpose around building connections that really matter. That is now instilled in everything we do. We want people to focus on this, whether within our organisation or our outsourced partners. At the same time, we took the opportunity to make our supply chain more locally-focused. We asked how we could realise the full potential of all our individuals, our teams and the technology around us, to become the best at what we do for our customers.” The company’s new supply chain strategy has been steered by Anthony McLaughlin, a seasoned supply chain strategist, who has been on the journey with Steve for the majority of the last decade. It is based on embedding this philosophy within the organisation, and working with partners that identify strongly with the journey that Virgin Media is on.
The strategy is built on five strategic objectives:
1. Belonging How do we make our company an amazing place to work, with people aspiring to join, so when they are here, they don't want to leave? How do you bring your real self to work, where you have a sense of belonging and wellbeing?
2. Bigger and Better How do we build upon how we operate? Getting better at what we do is important, but even more so is establishing innovation in our DNA.
3. Eco Warriors We have made huge progress on the environmental agenda, but how do we continue to drive step-change and become the most sustainable supply chain in our sector?
4. Integrated Planning How do we extend and connect our ecosystem even more to support profitable growth, and put ourselves in a position where we are driving even better decisions for our customers and efficiency for the business?
5. Tech-volution The final part of the jigsaw. We are a company that embraces technology. In supply chain, we have established visibility, control and differentiation through our technology platform. Now is the time to evolve our digital supply chain in focused ways, to evolve our operating model, and drive a technology-first approach. 11
We support the lifecycle of your technology CTDI is a full-service, global engineering, repair and logistics company. Together with our customers we create highly technical, fully integrated and sustainable supply chain solutions.
www.ctdi.eu
Global Engineering, Repair & Logistics
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Payment Terminal Network Infrastructure
Modem Gateway
Set-Top Box
Notebook
Mobile GREEN SERVICE
Smart Home
We support our customers achieving their environmental strategies with our GREEN SERVICE PROGRAM
Carbon neutrality by 2030 Circular economy Renewable energies Sustainable logistics www.ctdi.eu 13
“We have one logistics partner focusing on our warehousing and distribution, and that is Kuehne+Nagel. We then have one Customer Premise Equipment repairer – we call it TRR, which stands for Test, Refurbishment and Repair. Our partner is CTDI, who operate from Scotland. We have one mobile TRR partner, which is a company called Unipart, and we have one network repair partner in MMX Communications”
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Anthony adds, “The strategy is underpinned by creating a network of partners to operate on our behalf to serve our customers, as well as collaborate. We are striving for an end-to-end customer-focused value chain, and all our partners understand that philosophy and are on this journey with us. This has been demonstrated time and time again by our partners in driving innovation into automated fulfillment solutions, intelligent and autonomous test solutions, and final-mile services for our customers, which create real value.” Virgin Media works handin-hand with Liberty Global when designing and delivering products and services in the UK. Steve explains, “From a supply chain perspective, you have to go to the global market and ask a supplier to make a product on your behalf to serve multiple territories. You are talking about a global manufacturer that can deliver volume to the market. That works well, but we also have a local focus. We have teams in Virgin Media supply chain purely focused on Virgin Media's UK customer base. This is back to the supply chain philosophy of putting our customers at the heart of everything we do. Supply chain localisation works towards our goal of being a more customer-centric organisation.” 15
Proudly ensuring Virgin Media customers stay connected at a time when it matters the most We empower our customers and are determined to shape the world of logistics by connecting people and goods, through innovative and sustainable solutions. Kuehne+Nagel is proud to be Virgin Media's partner of choice, ensuring their customers have access to the latest technologies at a time where online communications have become more important than ever.
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Many factors are considered when evaluating which approach to take and Steve recognises the value in understanding varying customer demographics, and the importance of segmentation. He says, “In the UK, we are demanding when it comes to the delivery experience, increasingly so since the pandemic. We want to go online, place an order, and have it delivered in a timeframe that works.
“Virgin Media has operated throughout the coronavirus pandemic, and Steve says if he has learned one thing it is that the company has a fantastic group of people working there� New consumer customers receive a broadband router or set-top box to either self-install, or have an engineer install for them, which means their services can be up and running as soon as possible. Some of our customers want it delivered to their door, 17
while others prefer to click and collect at one of 7,000 locations across the country at their convenience. UK customers also want to be able to track their orders and make changes if they decide to have it redelivered to a different place or at a different time. The ability to provide different selfserve and proactive support options when a customer needs our help is also important. Working in global operations, you see these market nuances all the time. At Virgin Media, it is all about making sure we give our customers choice and understanding their changing needs.� Virgin Media has operated throughout the coronavirus pandemic, and Steve says if he has learned one thing it is that the company has a fantastic group of people working there. He says, “Now more than ever, staying connected is vital. Our purpose of building connections that really matter could not have been better placed to deal with Covid-19. We recognised that we needed to change some of the ways that we interacted with our customers, and our outsourced partners have done an amazing job in sustaining high levels of performance
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“Our strategy, our p partners put us in a to capitalise on oppo present themselves, opportunities are as people as they are te Anthony McLaughlin
Director of Supply Chain Strate
people and our prime position ortunities which , recognising those s much about echnology�
egy & Solutions
despite all the challenges. The interconnectivity we have created between ourselves, our outsourced partners and product supply partners, and the technology we have deployed, have been pivotal in successfully managing the extended supply chain, so that we keep our customers connected to what they need and love.� There has also been a tremendous focus on what more we can do for customers through these difficult times. Steve explains, “In the consumer space this year, we have provided free broadband speed upgrades to more than a million customers and introduced a wide range of measures to help our customers stay connected and entertained during the pandemic, including providing 19
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50 TV channels and 10GB of mobile data – both at no extra cost. This is on top of a range of measures to support vulnerable customers, such as providing annual package reviews, more flexible bill management, and in November, we are launching a new ‘Essential broadband’ plan for customers receiving Universal Credit.” As for the future, Anthony acknowledges the continued unpredictability but says there are at least three things we can assume with some degree of
certainty. He says, "Further supply chain disruptions, in some form, are inevitable, as is the likely frequency of them occurring. Customer expectations will continue to change rapidly as we move through the next ways of the digital revolution we find ourselves in. As such, the speed at which we need to plan will only increase, as will the complexity. If you accept this position, then you need to continue to find ways to equip your people to plan and execute smarter and faster, if you want to emerge ahead of the pack.” This is an area where the supply chain team at Virgin Media will continue to put a lot of focus.
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“Whether we are improving our game around predictive analytics, or moving beyond that into AI technologies, or how, for instance, digital twin can develop our scenario planning and decisionmaking capabilities” Anthony points out that evolving the digital supply chain and taking people on that journey is key. Steve concludes, “Our strategy, our people and our partners put us in a prime position to capitalise on opportunities which present themselves, recognising those opportunities are as much about people as they are technology. Whether we are improving our game around predictive analytics, or moving beyond that into AI technologies, or how, for instance, digital twin can develop our scenario planning and decision-making capabilities, we have the opportunity to do some great things for our people and our customers in the future.” 22
For further information on Virgin Media, visit www.virginmedia.com
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A RT I F I C I A L I N T E L L I G E N C E
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We explore how man and machine can work together in the age of AI.
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As we experience the biggest loss of jobs in decades, there is concern over whether business leaders are choosing to replace humans with machines in order to cut costs. his is a global problem facing the manufacturing industry as well as other sectors around the world, with workers worried there are no jobs available to them in this new age of AI. Instead, automation and machine learning are carrying out the tasks that they used to perform. Global population forecasts estimate that we will reach almost 8.5 billion by 2030. Add the exponential speed at which areas such as AI, computational processing power and robotics are developing, and it is safe to predict that our global
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workforce and the demands we put on it will change markedly in the near future. Job functions are altering rapidly to mirror the pace of technology, so creating a workforce that is educated and ready to adjust to changing demands must be a priority for business leaders. The form future jobs will take is likely to be shaped by how man and machine end up working together. It remains uncertain to what extent the analytical power of machines will replace that of humans – will the human presence in some job functions become entirely obsolete? But, what does remain clear is that in reskilling employees for the AI age, we can either try to be better than robots
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or to complement them. We should be aiming for a middleground, getting the best from both parties’ potential, thus the future of machine learning should be about how humans and machines can work together. It’s good news for those in creative roles. So far, machines cannot really replicate the imagination. But, the bad news is for those who have routine, non-creative jobs, as these are indeed being eaten up by automation. According to the World Economic Forum, the top 10 emerging job roles forecasted for 2022 include data analysts and scientists, AI and machine learning specialists, general and operations managers, software and applications developers and analysts, sales and marketing professionals, big data specialists, digital transformation specialists, new technology specialists, organisational development specialists, and information technology services. There are two opposing approaches to how we can help the workforce keep up with technological development. One is to boost employees’ analytical skills to compete directly with the 28
We should not expect the future of machine learning and robotic design to be about humans versus machines, but rather how humans and machines can form the best teams machines; the other is to strive to complement machines and AI with synthetic skills. But, it is not about polar extremes, nor is it a question of picking one or the other. It is about finding that sweet-spot of how machines and humans work best together. This will not come about by designing the fastest central processing unit (CPU), nor the strongest robot. Instead, it will be the fruit of designing the best teams, best processes, and best user experiences. We should not be sizing up the potential of humans, nor machines in isolation, but taking both combined. Designers must look into solutions whereby humans and machines complement each other, maximizing the 29
Today, at least 90,000 of are applying design-thin the company’s business CPU. As such, IBM is itera with how they can impr of working with comput
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f IBM’s 388,000 employees nking methods to develop s domains – such as AI and ating and experimenting rove the user’s experience tational power
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potential of both. Garry Kasparov, a Russian chessmaster, who still holds the record for consecutive professional tournament victories, said, “A weak human player plus a machine plus a better process is superior to a very powerful machine alone, but more remarkably, is superior to a strong human player plus machine and an inferior process.�
Designers must look into solutions whereby humans and machines complement each other, maximizing the potential of both In the 1990s, Kasparov represented humans versus machines in a historic chess game against IBM’s Deep Blue computer. He went on to observe and participate in various chess contests where teams of man and machines competed against each other. His conclusion? It is not the team with the most 32
,
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computational power or the highestranking grand masters that will win, but the team with the best interplay – the best teamwork. In 2000, grandmaster Vladimir Kramnik defeated Garry Kasparov and became the Classical World Chess Champion. After retirement, he sought to rekindle human virtuosity in chess. Paradoxically, he did so with the help of DeepMind – the makers of the best chess computer so far, AlphaZero, a far more advanced chess computer than Deep Blue. It is self-taught, and since AlphaZero can teach itself to play, it is also able to learn how to play any game by new rules. It can explore new variants of games and reveal its bugs and beauty more quickly than generations of human play could ever do. It can test all the outcomes of a game and decide if the game is worth playing. Consequently, the humanmachine team Kramnik-AlphaZero are exploring new forms of chess that bring about human mastery and aesthetics, and they have come up with all sorts of new and alluring types of chess as a result. We should not expect the future of machine learning and robotic design to be about humans versus machines, but rather how humans
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Most activities machine interfa people to do new things (such as and to do things that chatbot to customer servic
at the humanace require w and different train a chatbot) s differently (use o provide better ce)
and machines can form the best teams. A survey of 1,000 companies working with AI, published in Harvard Business Review, stated in 2018 that, “Most activities at the humanmachine interface require people to do new and different things (such as train a chatbot) and to do things differently (use that chatbot to provide better customer service). So far, however, only a small number of the companies we surveyed have begun to reimagine their business processes to optimise collaborative intelligence.” Today, at least 90,000 of IBM’s 388,000 employees are applying design-thinking methods to develop the company’s business domains – such as AI and CPU. As such, IBM is iterating and experimenting with how they can improve the user’s experience of working with computational power. The future will not be about creating the fastest CPU or cultivating prototypical employee skills, but it will be about designing the most compatible combinations of humans and machines, and optimising and simplifying the interaction between the two. And the most pioneering companies already know it. Source: World Economic Forum
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5G NEWS
EE has gone live with its ultrafast 5G network in 12 new UK towns and cities.
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Mobile operator EE has switched on its ultrafast 5G mobile broadband network in the busiest parts of a further 12 towns and cities across the UK, bringing the latest mobile technology to more places than any other operator. he latest 12 locations include Aberdeen, Blackpool, Mirfield, Shipley, Aldershot, Castleford, Oxford, Stafford, Barrhead, Crawley, Porthcawl and Warwick. In the last 12 months, the company has also more than doubled its amount of 5G sites in a number of key cities such as Belfast, Birmingham, Cardiff and Edinburgh, bringing the latest mobile technology to even more people. The 12 new towns and cities follow an additional 20 connected to 5G by EE since May this year. This includes Altrincham, Ashford, Bellshill, 38
Brentwood, Chester-le-Street, Chorley, Cumbernauld, Doncaster, Epsom, Ilkeston, Jarrow, Minster, Nuneaton, Pontefract, Plymouth, Waltham Abbey, Walton-on-Thames, Washington, Weston-SuperMare and Wickford. The latest development means that EE’s 5G network is now live across 112 UK towns and cities, although it will take a little longer to reach the same level of coverage in each area as has already been achieved by existing 4G networks. At present, the operator can only harness a 40MHz slice of the 3.4GHz radio spectrum band for their 5G service, but
5G
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more bands are due to be released by Ofcom early in 2021. Nevertheless, they have so far been able to deliver better speeds than rivals at Vodafone, O2 and Three UK, although it remains to be seen whether this will last.
Marc Allera, CEO of BT’s Consumer Division, said, “Delivering the best mobile experience for our customers has never been more important. Our 5G rollout continues apace, with our engineers building and upgrading new sites every day to bring the latest mobile technology to even more people in the places they need it. We have 5G coverage in more places than anyone in the UK, and we remain focused on connecting many more areas this year and beyond.” 41
“We have 5G coverage in more places than anyone in the UK, and we remain focused on connecting many more areas this year and beyond” Marc Allera, CEO of BT’s Consumer Division
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“Independent testing by RootMetrics found EE’s 5G offers the best combination of fast speeds and coverage, with the highest 5G availability in all 16 major UK cities tested” The operator had previously told customers to expect an increase in speeds of around 100-150Mbps from 5G – even in the busiest areas – and at the same time, they also predicted that some customers may break the 1Gbps milestone on their 5G smartphones (the fastest speed possible when EE launched 4G in 2012 was just 50Mbps). But getting 1Gbps in busy urban areas is likely to be quite rare, until the extra spectrum goes live. Network insights from EE show that the top three uses of its 5G network today are video streaming, social networking and web browsing, with YouTube, Netflix, Facebook 44
and Instagram taking the top spots as the most used internet services. EE argues that 5G download throughput on its 5G network is twice as fast as 4G, giving the best experience yet. Independent testing by RootMetrics found EE’s 5G offers the best combination of fast speeds and coverage, with the highest 5G availability in all 16 major UK cities tested. EE’s announcement comes as Apple introduces 5G compatibility to its iPhone range for the first time. For further information on EE, visit www.ee.co.uk
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D I A R Y D AT E
REACH FOR THE ST RS The Women In Technology World Series is going online for the first time.
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A week-long festival to celebrate the power of resilience amongst female tech professionals, The Women In Technology World Series Online Festival shines a light on the transformative tech engineered by women of all diverse backgrounds across the world.
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OVER
10,000 female tech professionals and diversity advocates from across the globe
he aim is to unite, not just in preserving the sense of unity amongst the females in the tech community, but in solidarity in our collective mission to inspire warriors to fight against the systemic injustices women face.
for five days from 16th to 20th November. Over 10,000 female tech professionals and diversity advocates from across the globe will unite in a bid to define and transform what it means to be a woman in tech in the post-Covid era.
This year’s festival will be very different from previous years, with attendees meeting online
Attendees can expect to be inspired by tech leaders and industry heavyweights from around the world 51
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as they offer game-changing advice, share their unique experiences and explore cutting-edge tech innovations. By positioning yourself right in the middle of new global insight, mind-opening content and new industry best practices,
build your own content experience that allows you to get the most out of the festival by choosing the speakers, topics and networking features that align best with your event expectations and interest areas.
“All attendees will have the opportunity to share their questions directly with speakers via a live Q&A chat function throughout each session� you will be able to maximise your learning and engagement. A unique networking opportunity, there will be the chance to identify role models, connect with mentors and engage in global discussions. With over 250 speakers and over 20 sessions offering only the most advanced expert-led insight, you can
Make the most of this empowering online event!
Network with a Truly Global Audience A unique and unrivalled opportunity to create real and lifelong connections with female tech professionals who are committed
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to supporting and championing inclusivity in tech. Connect with fellow professionals via video, audio or message. This interaction can happen via a group chat or through a 1:1 chat window if privacy is required.
Spill The Tea – Semi-Live Speaker Q&A All attendees will have the opportunity to share their questions directly with speakers via a live Q&A chat function throughout each session. All speakers will be online and available to answer these questions in real time, offering attendees the chance to engage and interact with industry leaders whilst their content is live. Furthermore, all speakers will be online and available for the hour directly after their session to speak with attendees
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via chat, audio or video. All content will be available online for 30 days following the event for premium ticket holders.
Career Advice Clinic The careers advice clinic will allow you to meet with industry leaders who are making themselves available throughout the weeklong festival to offer career advice
OVER
250
SPEAKERS!
“A matchmaking service will recommend your top matches so you can arrange a 1:1 meeting via video or audio to meet your match”
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and tips. Each meeting will run for a maximum of 15 minutes and will operate on a first-come-first-served basis.
Professional Matchmaking Connect with people from companies and topic interests most relevant to you. A matchmaking service will recommend your top matches so you can arrange a 1:1 meeting via video or audio to meet your match.
Wellbeing Hub Taking time out of your busy working day to take part in simple self-care practices is paramount to a healthy work-life balance. Press pause on your jam-packed day of content and
“Members have access to engaging and educational webinars, podcasts and video presentations that are packed with industry knowledge, inspirational stories and advice from tech pioneers” 56
networking to focus on improving your wellbeing by visiting the dedicated wellbeing hub. Features will include access to virtual yoga, HITT and meditation classes.
Ascend Premium Membership Premium ticket holders will be able to continue the conversation on Ascend, the online Women in Technology Community. Members have access to engaging and educational webinars, podcasts and video presentations that are packed with industry knowledge, inspirational stories and advice from tech pioneers. To view the full agenda and list of speakers, visit www.onlinefestival. women-in-technology.com You can also book your place and register interest via the website.
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B U S I N E S S I N T E RV I E W
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Sir Henry Royce’s famous quote is at the forefront of the mind of Aleksandar Rodic, Global CIO at FIEGE, as he drives the company forward in this digital era. Written by Anna McMahon • Produced by Jennifer Davies
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Pioneers of contract logistics, FIEGE is a privately-owned company that has been in existence for more than 140 years. ith a focus on contract logistics, its customers span the globe, from the Far East and Eastern Europe, to Germany, Italy, Switzerland, Belgium and The Netherlands. Global CIO, Aleksandar Rodic, is proud of the company’s history. He says, “In the late 70s, we invented the contract logistics principle. Since then, we have grown to provide logistics services with a turnover of around 1.7 billion euros. “We have a wide portfolio and work with a range of clients, including first tier industrial customers and fashion customers. What makes us strong is our agility, as well as our ability to provide tailored solutions to our customers.” 60
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Digitalisation has played a key role in enabling growth at FIEGE, empowering operations and adding value. Aleksandar says, “We started with a strategic initiative in 2011 to create a digital transparent portal, offering our services and full transparency to our clients. For example, when outsourcing warehousing logistics, the warehouse domain is often a black box, so customers don’t see what is happening inside the warehouse. It can cause huge overhead costs to share this information. We needed a new system to give full transparency to our clients and to our operations. We started digitalisation from the bottom, enabling our employees
“PSI h crea wa sy b 62
on the shop floor to steer the business, communicating digitally and building up the digitalisation pyramid from the GEMBA (a Japanese word meaning ‘the actual place’) to top management and to our clients. This has reduced overhead and operational costs significantly and increased satisfaction of our customers.” FIEGE has also used digitalised approaches to motivate and inspire employees on the shop floor. Pickers in the warehouse, for example, have a target they are required to meet each hour. Created using the digital platform, a monitor showing their progress applying gamification approach has been installed, so employees can see at a glance how well they are doing as a team. Aleksandar adds, “The biggest added value we can generate is value in operations, which, in turn, creates additional Aleksandar Rodic, Global CIO value to our clients.”
has provided and ated our advanced arehouse management ystem, a strong and solid baseline on which to connect to our digital fulfilment platform and digital hub”
A lot of companies promote operational excellence but continue
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ogistics service providers have to face the daily challenges of finding the right solution for different customer requirements. A strong focus on customers involves maximum flexibility. The highly competitive and cost pressure also requires efficient action in order to successfully survive in the market. For this, the use of modern
software such as PSIwms is vital. As an independent software provider, PSI Logistics develops customized solutions based on its products for customers throughout Europe. Thereby, they are leaders in innovation and technology and with every product and every release they bring to the market, they want to help their customers optimize their logistics.
“The new PSI-Click-Design offers fully-customisable user interfaces and a new dimension of configurability�
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© Pictures: Fiege Logistik Stiftung & Co. KG © Screenshots: PSI Logistics GmbH
The high-availability, scalable framework based on current Java technology forms the common high-performance platform for all PSI products. Based on modeldriven software development, PSI relies on global standards to reduce reliance on technology cycles. The software can be adapted quickly and flexibly to meet customer needs through a cutting-edge user interface and scores of productivity enhancements. The software products are particularly suitable for large volumes. You can capture and process huge quantities of data in real time, and at the same time allow access to many users. The new PSI-Click-Design offers fullycustomisable user interfaces and a new dimension of configurability. Depending on the profile, users can create new
screens and views using an intuitive graphic editor. This can be used to easily adapt menus, lists and tables, detail views and composition of complex dialogues for the operating time via drag & drop, and to save these in profiles. This reduces costs for customer-specific modifications (cost of change). All products have a modular structure and can be configured according to the project. They can be expanded individually and thanks to standardised interfaces can be easily integrated into your IT system landscape to meet increasing demands Further information about PSIwms can be found here: www.psilogistics.com/en/ solutions/warehouse-management/
Contact: Rüdiger Stauch | r.stauch@psilogistics.com | +49 30 2801-2850 PSI Logistics GmbH | Dircksenstraße 42-44 | 10178 Berlin
to work with paper to share information in the old-fashioned, manual way. By applying digital ideas to enhance operational excellence, FIEGE uses information and events that are raised by business and operation, merged with KPIs and real warehouse activities, to bring operational excellence to the highest level. This establishes digital CIP (continuous improvement process). In addition, the Covid-19 crisis has brought further challenges to the company, which FIEGE quickly turned into an opportunity. Aleksandar explains, “At the height of Covid, there was a big demand for storage space, with the additional pressure of localised lockdowns. We created a digital fulfilment platform, where available storage space in our company, our partners’ companies or our competitors’ could be offered to potential
Aleksandar Rodic, Global CIO
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“GET has played an important role, thanks to their speed and agility in implementing new solutions at a fast pace”
customers to store critical goods, and we connected the platform to our warehouse management system. “This enabled the government to store all security and medical goods in our warehouses and distribute them across the country within days. What is great is that the product was developed and integrated
using our existing systems and models.” MyFIEGE is an idea that is currently in development, first thought up during Covid-19, which aims to enhance the digital experience and empower end customers. It provides GEMBA information to clients, the possibility of booking additional services without supplementary contracts, as well as access to invoices, the current warehouse situation and cutting-edge offerings. By creating a digital workplace, employees can manage MyFIEGE themselves, whether requesting holidays, entering time corrections or providing additional insights. Aleksandar adds, “This is the next level of logistics as a service.” 67
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Who are we? Our global partners recognize us as a reliable ISV & IT services company with more than 10 years of experience. We are an expertise center driven by innovation, flexibility, teamwork, and goal orientation. Our team is made of outstanding developers, experienced consultants with a strong background in Logistics, and certified Project Managers (PMP, Prince2) / Agile Experts (Scrum). We deliver fully customizable, scalable solutions for your supply chain optimization while following the highest international security standards, such as TISAX and ISO.
• Customization & scalability of the solutions to match your needs • Increased inventory visibility & accuracy • Enhanced yard & transport planning • Transparent transport tenders • Optimized wave management & smart picking path calculation • Improved documentation flow • Accurate real-time & historic reporting on events • Continuous improvement of your business processes How can we help you? www.getbgd.com sales@getbgd.com
The end goal for FIEGE is to become a data-driven company. Aleksandar explains, “All our initiatives are driving towards one common goal – to be data-driven – and to enable our customers, partners and employees to become more data-driven, using the platform and KPIs in this way.” FIEGE has worked with a number of key partners on its journey, and Aleksandar is very pleased with the company’s partnership with PSI. He says, “PSI has provided and created our advanced warehouse management system, a strong and solid baseline on which to connect to our digital fulfilment platform and digital hub. I have been very impressed by their speed and flexibility. Within weeks, there were teams working across Germany and Europe, bringing value to our operations and business as a whole.” Microsoft is another data-driven company whose technology FIEGE has employed to
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bring the cutting-edge, flexibility and scalability required for future growth, along with GET, which FIEGE has worked with on the development of its digital platform. Aleksandar adds, “GET has played an important role, thanks to their speed and agility in implementing new solutions at a fast pace. They have helped to bring us to where we are today – a premium brand in contract logistics and transport logistics.” On a final note, Aleksandar highlights the company’s green credentials. He says, “In the 90s, we were the first to take sustainability seriously. We built warehouses that could generate part of their energy on their own using windmills, which was very forward-thinking. We have small bee hives near some of our
“The environment is a very important driver in everything we do, from building green warehouses, to our sustainable social activities” 70
warehouses, bringing sustainability to the region by encouraging pollination. We give the honey to our employees, partners and charity. The environment is therefore a very important driver in everything we do, from building green warehouses, to our sustainable social activities.� Next we find out more about the MyFIEGE platform from the driving force behind it; Klaus Luestraeten - Head of IT, Information Management & Digital Transformation, Leif Lienhard Head of IT, Logistics Applications, and Philipp Holtgreve - Senior Business Consultant.
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We learn first-hand about the development of the myFIEGE platform. 73
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FIEGE has a strong team of individuals working on myFIEGE to bring it to fruition. Leif Lienhard is Head of IT, Logistics Applications; Klaus Luestraeten is Head of IT, Information Management & Digital Transformation; and Philipp Holtgreve is Senior Business Consultant. According to Leif, the idea for myFIEGE came from evaluations from customer surveys, as well as experience gleaned from communication with both customers and partners alike. He says, “The needs of our customers and partners were consolidated and analysed in the IT department, and myFIEGE was brought to life. The plan is to develop the platform in steps in an evolutionary way, and to provide more and more functionalities as we go along.” The project involves many different departments and business units. However, the project work is driven by an interdisciplinary core team of business development, marketing 74
and IT. Leif explains, “We want to be able to offer the entire FIEGE service portfolio as digitally as possible to our existing and potential customers. We have services that can be offered and used completely digitally, as well as services where the initiation and later use of the logistic services can be supported digitally very well. It is about offering our customers all services in one place – in myFIEGE. The customer has the opportunity to find and combine their FIEGE services, maintained by our business development team. Existing customers, for whom we have been providing a good service for many years, may not even be aware of all the new services. With myFIEGE, we hope to achieve greater customer loyalty and offer our customers individual and combinable FIEGE services.”
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There are many platforms already in operation in the contract logistics sector, but without the digital depth and great variety of logistics services that myFIEGE provides. So, what kind of technology is FIEGE employing in the development of the platform? Klaus answers, “The challenge of the myFIEGE platform is that it needs to be scalable, fast and flexible. So, we researched the market for what could be a possible IT solution, checking full-stackdevelopment and Low-Code/ No-Code platforms. We also had a lot of discussion on whether we wanted to set up this platform on-premise in our own computer centre, or if we could see the benefits of using a cloud solution.”
The platform is available directly over the internet with one platform for all customers, which presented numerous challenges. Klaus adds, “We needed an extended security and role concept. On the one hand, the platform should be used as a presales portal, so public areas need to be available but there is the requirement for an easy registration process. And on the other hand, we had a lot of ideas for various services and functions which could be 76
integrated, so we needed to start small and learn, aligning on the priority list of functions.” The first feedback has been really positive, with the general consensus being that the platform is easy to use, with good integration into the existing FIEGE systems. Klaus says, “We see a lot of potential for the future. Our first workshops gave us an insight into the kind of digital services we could offer. We strongly believe that the more customers we reach, the more ideas we will get from our end users. That is also the reason why we decided to use a flexible platform, to adapt quickly to the market.”
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The vision for myFIEGE is to eventually serve all stakeholders that interact and collaborate with FIEGE as an organisation; from employees and customers, to the general public, including end customers. Philipp says, “myFIEGE meets several needs that are now being highlighted in the Covid-19 era, such as quick, easy and seamless options to collaborate and make business. Having business insights and opportunities transparently displayed and made accessible is key to reducing long, bureaucratic inquiry and contracting processes. With myFIEGE, customers will be offered a seamless digital customer journey, from inquiry to operational fulfilment, as well as real-time insight into their business.” Following the Design Thinking processes enabled the team to challenge their ideas constantly and to foremost consider the customer’s point of view. Philipp concludes, “This helped us in finetuning our pilot projects and in sharpening them in an iterative manner.” 78
“With myFIEGE, customers will be offered a seamless digital customer journey, from inquiry to operational fulfilment, as well as real-time insight into their business�
For further information on FIEGE, visit www.fiege.com
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B U S I N E S S I N T E RV I E W
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“The Biggest Challenge in Digital Transformation is Not About Identifying the Need, But About Creating Advocacy Across the Organisation” Ritesh Jain is an Entrepreneurial Technology Leader & Board Advisor, with two decades of global experience in Digital Technology, Business Transformation and Operations with fortune 500 companies like HSBC, VISA and Maersk to name a few. Here, we ask some of the industry’s burning questions.
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Can you describe some of the strategic digital and technology initiatives you led at HSBC? I joined the bank with a single-pointed focus to build an enabling function for the bank of the future. Some of the strategic initiatives as a part of this were; focusing on ways of working, cultural transformation, cloud migration, automation initiatives, strategic initiatives for monetisation of open banking, initiatives to automate and optimise regulatory and compliances to expedite delivery, scaled approach to align products, and engineering and delivery through adoption of a framework to align strategic business initiatives and objectives to deliverables.
How important is it to take an agile approach? It’s not a matter of choice anymore; agility is a must for the organisation. Let me clarify, it’s not only from the IT perspective, but for the overall organisation’s agility. Agility is a mindset, it’s a culture. Although agility is often referred to technology, its scope is well beyond technology; it provides flexibility, adaptability and the capability to adapt unknowns with minimum risk. Agility is aiming to favour individuals and their interactions over processes, collaborating with customers, and 84
“Digitalisatio the right way people-orien which conside on empowering the organisatio to engaged cus with process op transformation
on, if done in y, can build a nted culture, ers and focuses g people within on, which leads stomers, along ptimisation and n of processes�
responding to change over following plans. With all the disruption and innovation across industries, agile is the way to move forward. It supports and enhances the culture of experimentation in a controlled environment; faster time to market, reduction in rate of failures, reduction in big unpleasant surprises (fail fast). However, it needs to be implemented holistically and carefully to get the full benefit of the approach. For example, scaled agile implemented in a large IT organisation, where Engineering/ Product/Delivery is not well-aligned, could have an adverse impact on the deliveries.
What is the impact of payment innovation and open banking on society and businesses? Consumer behaviour and technology innovation are driving innovation in retail, commerce, and cross-border payments. Payments are an integral part of a consumer’s day-to-day life, and have significantly transformed in the last five years, specifically since tokenisation and contactless payments were introduced. Now people use digital payments in their day-to-day needs instead of cash, although it varies across 85
geographies. Digital payments are having a positive impact on society and bringing people/businesses to mainstream. It has a significant positive impact on financial inclusion in various economies. Open banking is revolutionising the payments and banking system. Traditionally, banks used to own customer data, which has now been changed by open banking. With the customer’s consent, banks share customers’ data with third party apps/services to provide better services to customers. With open banking, customers can pay from account to account to merchants, which reduces cost to merchants as they bypass the card network. This is creating a new business model and supporting society.
What are the biggest challenges when it comes to digital transformation? Recently, I had a keynote at a CIO conference and the topic was Road to Digital Transformation: Getting there while avoiding potholes. It's a very relevant discussion as industries have experienced a high rate of failures in digital transformation. There are multiple challenges in digital transformation. I define them as: 86
Lack of vision – lack of long-term vision, strategic business objectives
Scope fallacy – Scope of transformation is often misjudged due to lack of vision and direction of business
Culture – Cultural transformation is the key to successful digital transformation and it starts with people
Inward thinking – Concept of IT as a back-office function, a frequent mistake is to look for efficiencies in the operating model Digital is changing the business and operating models, value propositions, and monetisation strategies. Inward thinking leads to failures in the transformation journey:
Solo performance – It’s an organisational and team effort instead of individual functions
Technology-centric – Organisations should think and look beyond technology adoption
Support capital – Build up and capitalise support from stakeholders within the organisation
Industry myopic – Look beyond competitors in the industry/sector in other industries and sectors 87
Who does digitalisation benefit in the long run? Is the customer experience enhanced? Digitalisation benefits the overall organisation and its internal and external customers, internal being the employee and external being the customer in the market. Digitalisation, if done in the right way, can build a people-oriented culture, which considers and focuses on empowering people within the organisation, which leads to engaged customers, along with process optimisation and transformation of processes. Enhanced customer experience and engaged customer is the outcome of digitalisation, the objective of digitalisation is the quest of constant improvement of customer experience.
How important are people when it comes to undertaking a digital business transformation? Does tech replace people or can the two co-exist and work together? People are the core and most important factor in digital transformation; a successful digital transformation starts with people and cultural transformation within the organisation. I truly believe in people and that organisations flourish if they get the right balance in their culture; it motivates people, brings them together and they create magic. It’s all about people. Often people get it wrong 88
“I am by-pr Su diffe bein and l mos und inte
m a firm believer that success is a roduct of the person you become. uccess means different things to erent people. For me, it's all about ng better than yesterday, knowing learning what we don’t know. The st important thing is to learn and derstand the organisation, how it eracts within itself and outside�
Ritesh Jain Technology Leader | Former COO, HSBC | Advisor to HBR, MIT Global Tech Panel, G20 GPFI
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and focus on tech, but if leaders focus on culture and their people, everything else falls in place. We live in the age of technology and it’s changing at a rapid pace. In many sectors, machines have replaced workers. Tech is not going to replace people completely, but it will help make processes and businesses efficient, and people and tech will co-exist, with ways of working and types being transformed.
Can you discuss your motivation and associations in the industry? I believe in value creation, utilising technology for the business growth. I am an advocate of equal opportunity for everyone; an advocate of diversity and inclusion, women in leadership and entrepreneurship; advisor to finance and payments regulators; and advocate and advisor to governments for women and child rights protection. Apart from my corporate roles, I am a board advisor, a member of G20 Global Program for Financial Inclusion, an advisor to Harvard Business Review, as well as a member of MIT Technology Review, Mentor to UK Parliament Digital Services, and an angel investor to fintechs and other start-ups.
What’s your secret to success? It’s people who make you successful, and it’s all about people, creating and building an 90
“During Co co-authored Payments in D focused on Innovation a Strategies, working on a f on financial people to addre mark
ovid, I have a course on Digital Finance, n Payments and Business , and I am few initiatives wellbeing of ress gaps in the ket”
empathetic environment and advocating a culture of experimentation, coupled with upskilling and reskilling people. I am a firm believer that success is a byproduct of the person you become. Success means different things to different people. For me, it's all about being better than yesterday, knowing and learning what we don’t know. The most important thing is to learn and understand the organisation, how it interacts within itself and outside. Decisiveness and confidence are always respected by people, proving that a business can move forward quickly with a purpose and accept failures. It is crucial to know when plans are off track, identify them and course-correct when required. Another key aspect is that abandoning a plan is not a sign of weakness, rather it’s the required flexibility to change direction.
What are your plans for the future? We live in interesting and exciting times. I have an inclination towards learning and sharing experiences and I’m advising and consulting financial institutions, consulting firms and fintechs, and learning from them. During Covid, I have co-authored a course on Payments in Digital Finance, focused on Payments Innovation and Business Strategies, and I am working on a few initiatives on financial wellbeing of people to address gaps in the market.
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IN THE SP OTLIGHT
START-UP OF THE MONTH Arrival is reinventing the automotive industry with its entirely new approach to the design and assembly of electric vehicles. rrival was founded in 2015 with a vision to make cities cleaner and more efficient places to live. It has since grown to a team of over 1,200 people across 10 cities, in six countries around the world, with headquarters in the UK. Challenging legacy processes and always designing from the ground up, the company is dedicated to finding the best possible solutions with its unique blend of design,
technology, engineering and innovation expertise. Delivering exceptional products and services for communities around the world, Arrival has accelerated the move to zero emission transportation. Low CapEx, rapidly scalable Microfactories, combined with proprietary in-house developed components, materials and software, enable the production of best-in-class vehicles, competitively priced to fossil fuel variants and with a substantially lower Total Cost of Ownership. This transformative approach provides cities globally with the solutions they need to create sustainable urban environments and exceptional experiences for their citizens. Sustainability is one of the biggest challenges facing transportation
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“Delivering exceptional products and services for communities around the world, Arrival has accelerated the move to zero emission transportation” and mobility worldwide. By producing electric vehicles at a competitive price, Arrival is actively removing the barrier to mass electrification and accelerating the phase-out of fossil fuels. What’s more, the company is also rethinking manufacturing by pioneering a new method that challenges the economies of scale that create unnecessary excess. Their aim is to source materials locally, partner with suppliers that demonstrate responsible sourcing, and reduce waste. Applying the principles of the circular economy, Arrival works to achieve more with less. The proprietary recyclable materials and upgradable components mean the vehicles stay in use for longer, maximizing the value of material resources. Arrival has recently received $118million to accelerate global expansion. The investment from funds managed by BlackRock will support execution of Arrival’s growth plans, including the launch of first
US Microfactory. Denis Sverdlov, Arrival’s Founder and CEO, said, “We are excited to welcome BlackRock as a strategic financial investor with its excellent track record in ESG. This additional capital will be invested into Arrival’s growth, as we deepen and expand our presence in the US and other new markets globally. With our new Microfactory in South Carolina, we are looking forward to partnering with more cities and companies to create a sustainable future.”
For further information, visit www.arrival.com 93
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