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WELCOME
H
ello and welcome to the latest issue of Gigabit magazine! With renowned brands like MTV, Comedy Central and Nickelodeon under its umbrella, Viacom graces the screens of viewers the world over. For this month’s cover feature, Olivia Minnock spoke with Viacom’s David Kline to learn how the global entertainment content company plans to stay abreast of digital disruption. Estimates suggest that the amount of data that will be subject to analysis will grow 50-fold by 2025 – this is where Tableau Software hopes to make its mark on the sector. Following the firm’s annual conference, we sat down with CEO Adam Selipsky to learn how the firm hopes to cement its position as a data analytics powerhouse.
low-down on how low-code development could offer a unique solution. For this month’s issue, we’ll also round up the top industry events from around the world and we investigate the top ten highest valued tech unicorns from across the globe. On top of this, we’ll also take an in-depth look at some of the companies shaking up their sectors, with reports on companies such as Nedbank, BlackBerry and ABC. We hope you enjoy this month’s bumper issue and, as ever, you can find us across social media @GigabitMag Enjoy the issue! Laura Mullan. Laura.mullan@bizclikmedia.com
Elsewhere, as the need for software grows at an exponential rate, Mendix’s Chief Technology Officer gives the
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10
CONTENTS
CTO DAVID KLINE ON THE COMPANY’S TECHNOLOGY TRANSFORMATION AND HOW IT STARS ABREAST OF A VAST, RAPIDLY CHANGING LANDSCAPE
34
TACKLING THE DATA MOUNTAIN
48
Mendix: Redefining app development with a low-code approach
58 76
Fannie Mae BlackBerry
96
122
Radius Networks
138
Truliant Federal Credit Union
150
Bray International
Met Office
178
192 INEA
164
Johnson Brothers Liquor Co
Edwardian Hotels London
206
Universidad Europea
222
UiPath
236
Nedbank
250 Ayanda Saki
272 ABC
286
Fakeeh Healthcare
300
Daimler
312
Siemens
330 09
10
TECHNOLOGY TRANSFORMATION DRIVES AN EXCITING CONTENT EXPERIENCE AT VIACOM WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
GLEN WHITE
JANUARY 2019
NORTH AMERICA
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VIACOM
GLOBAL ENTERTAINMENT COMPANY VIACOM’S CTO DAVID KLINE DISCUSSES THE COMPANY’S TECHNOLOGY TRANSFORMATION AND HOW IT STAYS ABREAST OF A VAST, RAPIDLY EVOLVING LANDSCAPE
W
ith universally renowned brands from MTV and Comedy Central to Nickelodeon and Paramount Pictures under its umbrella, for almost 50 years
global entertainment company Viacom has been delighting viewers the world over. With a commitment to delivering quality content through a wide range of digital 12
media, the company operates across a range of markets and places technology at the forefront of maintaining a quality, tailored experience. Behind the significant digital transformation Viacom has undergone in order to achieve such lofty aims is David Kline, Executive Vice President and Chief Information and Technology Officer. With eight years at the media behemoth under his belt, Kline has enjoyed a 35-year career focusing on technology and has been fascinated by the development of digital. “I got to see technology from yesteryear – punch cards and reel-toreel tape,” he recalls. “And the world was changing because there were connectivity opportunities across longer distances… through to today, where you can connect via the cloud. “I’m really thrilled to have seen those journeys. They’re happening faster, almost at lightning speed, today.” All JANUARY 2019
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this experience lit up a fascination with
see today with apps and connected
the “art of the possible” for Kline, which
devices – now, everywhere you go,
he has brought to his team at Viacom.
there is some kind of digital footprint.”
“We aim to identify what’s possible for the divisions we guide and influence –
CUSTOMER CENTRICITY THROUGH TECH
whether it’s advertising, production,
As technology has developed, so too
research, distribution… it is important to
have customer expectations across
understand what they’re doing and deliver
the various demographics Viacom
the technology that works for them.”
caters for. “The millennial audience
At the time of its fruition in the 1970s,
really took a whole new swing at what
Viacom was something of a “walled
connectivity meant – they want what
garden”. “It was very segregated from
they want when they want it. We have
the rest of the world,” says Kline. “As
to be able to deliver that,” he explains,
the world grew, digital connectivity
adding that nowadays on-demand
became more of an opportunity, like we
programming is an expectation rather
E X E C U T I V E P R OF IL E
David Kline Having been at Viacom for eight years, David Kline provides strategic leadership for the company’s technology infrastructure and oversees Viacom’s Online Central Platform Technology and Interactive Services, Content Creation and Distribution Technology, Application Development and Information Security and Compliance. During his time at the company, Kline has led several successful initiatives as well as developing and promoting a strong, diverse team of talented people. Prior to working at Viacom, Kline served as Executive Vice President of Technology and CTO at Discovery Communications, having also held senior technology roles at Rainbow Media
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Š 2018 Adobe. All rights reserved.
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“ THE MILLENNIAL AUDIENCE REALLY TOOK A WHOLE NEW SWING AT WHAT CONNECTIVITY MEANT – THEY WANT WHAT THEY WANT, WHEN THEY WANT IT” — David Kline, EVP and Chief Information and Technology Officer, Viacom
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than an added extra. “How do we make
different countries, so when you see
that more dynamic?” Kline asks. “How
MTV in the US, UK, Poland or Singa-
do we update that content so that you
pore… each brand has opportunities to
have a larger library? How do we add
be more effective in certain spaces.
advertising that’s not stale and
For example, Latin America is more
changes with the times?”
Android-driven, and so while Roku is a
In an increasingly connected world,
great platform in the US, we have
Viacom works to ensure a consistent,
growing platforms in Europe like
quality and above all exciting service
Amazon and Netflix.”
for consumers regardless of location,
In addition, short form content, like
device, platform or demographic. “We
the video footage shared across
have 84 apps on 11 different platforms
Snapchat, Facebook or Twitter to
– whether it’s Roku, Apple TV, iOS,
promote a new TV series, is an
Android, PlayStation… We’re in 180
increasingly lucrative focus, paying w w w.gi ga bi t ma ga z in e. com
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“ YOU HAVE TO KNOW YOUR AUDIENCE, HOW THE DEMOGRAPHIC IS SHIFTING, AND WHAT’S RELEVANT. IT’S VITAL TO STAY TUNED IN AND DELIVER ON WHAT THE CONSUMER IS EXPECTING” — David Kline, EVP and Chief Information and Technology Officer, Viacom
JANUARY 2019
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growing dividends. “We need to make sure we’re aligned with the generations in terms of what they want to consume – creating original short form, not just taking pieces of a show. You have to know your audience, how the demographic is shifting, and what’s relevant. It’s vital to stay tuned in and deliver on what the consumer is expecting.”
DRIVING A TECHNOLOGY TRANSFORMATION With a mission to entertain and excite firmly at its heart, Viacom has used technology as a driver of growth – but has done so thoughtfully, ensuring that new technologies are implemented to make positive change for various stakeholders, rather than chasing what Kline calls the “bright, shiny object”. “Cloud computing is a great example,” he says. “We started looking at cloud when it first came out, and at the time we weren’t ready to make a jump.” While cloud technology offers storage solutions, Viacom already had extensive – and expensive – infrastructure in place for this. However, the business did implement cloud technology for its live events, posting interactive social media w w w.gi ga bi t ma ga z in e. com
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content and creating live video footage at the likes of the VMAs and Kids’ Choice Awards. Since then, Kline’s team has felt enabled and empowered by the cloud, and after abating cybersecurity concerns by rolling out the new tech slowly and sensitively, Viacom now has its full Office productivity in the Cloud with Office365. “It’s about overcoming fears, being smart enough and strong enough to say, ‘we need to focus because change is
“ AS TECHNOLOGY SHIFTS, IT’S IMPORTANT TO MAKE SURE EVERYONE HAS AN UNDERSTANDING OF WHAT IT IS AND NOT TO BE FEARFUL, BUT INQUISITIVE” — David Kline, EVP and Chief Information and Technology Officer, Viacom
coming’. That’s something you have to grapple with in any leadership role –
inquisitive. What does this mean to me?
especially technology.”
To the people I serve? To our industry?
As such, Kline is no stranger to the
And how do we approach it?”
culture shift involved in a technology transformation – and he says both
SMOOTH TRANSMISSION
listening and educating are key to
As well as improving the way content is
change management. “It’s important to
enjoyed, technology has been vital in
listen to what’s going on in the world
improving process within Viacom’s
and within the company, and under-
operations. “The product teams work
stand different needs. Rather than just
very centrally with my technical teams,
putting in technology for technology’s
and we’re all focused on making sure
sake, have a rationale and a really
anything across our platforms, from
responsible understanding of why
video to data, is functional, scalable
you’re doing it. As technology shifts,
and is being delivered,” says Kline.
with Internet of Things (IoT) and 5G for
Over the past few years, a key
example, it’s important to make sure
achievement has been centralizing
everyone has an understanding of
code to develop single code base –
what it is and not to be fearful, but
with WebPlex used for websites and w w w.gi ga bi t ma ga z in e. com
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Play Plex used for apps. “We’re now
RPA (robotic process automation). It’s
down to a single web base so I can
given our team back some time to
deliver the same backend for MTV in
really focus on the next generation and
Poland as I do for Nickelodeon in the
what’s to come, while still delivering on
US. It’s the same with apps. This is a
what’s necessary today.”
pleasing and lucrative opportunity for
“We’re big believers in consumer
the business to be able to go out and
likes and dislikes – how do I make sure
sign deals, knowing they can get
it’s not disruptive for them while it’s
something up and running in a matter
disruptive for us? Obviously, changes
of hours.”
– like introducing AR and VR – are
Yet more technologies are set to
disruptions. They could be good
improve Viacom’s operations, with
disruptions or dramatic disruptions, but
automation affording staff time for
the goal is to make it perfectly seam-
more value-adding tasks. “We’re
less, regardless of whether it’s on
looking at innovative ideas around
television or another device – perhaps
machine learning and AI, as well as
eventually a HoloLens.”
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VIACOM
Centralization enables staff to really concentrate on this frictionless development – for example, a single service desk within Viacom is available for any problem, from lost keys to a serious tech malfunction. “With that, we continue to automate a lot of the tools we have – we’re using chat and automated tickets,” Kline explains. Further, the company has created application stacks for staff to download all the software they need onto a device at once and has automated solutions from HR and payroll to ERP 26
utilizing SAP’s best-in-class platform.
THE PERFECT PARTNER No technology transformation can take place in isolation, especially one which takes place internally and externally across 180 markets. As such, Viacom works closely with its vendors and partners – including Adobe, Redspace, Canoe Ventures, Insight and Freewheel, to name but a few – to ensure technology can be a true enabler for the business. “Vendor management’s hugely important,” says Kline. “I have a vendor management office – a small group of people who work closely with my JANUARY 2019
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CLICK TO WATCH : ‘COMPANY OVERVIEW 2018’ 29
“ AUTHENTICATION WITH ADOBE PASS IS A GREAT EXAMPLE WHICH VIACOM HELPED CRAFT. IT SHOWS THE COMPANY HAS THE INGENUITY AND CREATIVITY TO REALLY HELP PUSH PRODUCTS FORWARD” — David Kline, EVP and Chief Information and Technology Officer, Viacom
internal group, third party parents and vendors, and our sourcing team. It’s a three-way connection. In many cases, Viacom has a rich history of enabling vendors to build products we inspired, or else we have built them ourselves and pushed the intellectual property off to a vendor if that makes sense for the rest of the globe. Authentication with Adobe Pass is a great example which Viacom helped craft. It shows the company has the ingenuity and creativity to really help push other products forward – not just content but technology.” While Kline is a keen negotiator – “I w w w.gi ga bi t ma ga z in e. com
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JANUARY 2019
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believe everything is free until you tell me otherwise” – he also stresses that relationships must be collaborative to thrive. “The worst thing you can do is bleed a vendor to a point where they’re ready to go out of business, or can’t support something you’ve taught them to support… the best thing you can do is work together for the best cost and best possible product that shines for both them and you.” Together with its partners and vendors, the organization that brings us entertainment in all its forms from award ceremonies to movies will continue to utilize technology to ensure its diverse content is enjoyed. “At Viacom, we’re big on long range plans,” says Kline. The organization is already pushing its 2022 strategy, and though there is no telling what technology will look like in three years’ time, Kline is dedicated to keep to an overall vision of satisfying customers. “That really drives the type of technologies we’re looking to focus on,” he explains. “It’s important to really bond with what the company’s strategies are and make sure we’re thinking that through both the immediate lens as well as the long-range plans.”
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D I G I TA L S T R AT E G Y
34
TACKLING THE DATA MOUNTAIN
JANUARY 2019
35
AFTER THE WHIRLWIND OF ITS ANNUAL CONFERENCE, WE SAT DOWN WITH TABLEAU SOFTWARE CEO, ADAM SELIPSKY, TO LEARN HOW THE FIRM HAS ESTABLISHED ITSELF AS A POWERHOUSE IN DATA ANALY TICS IN VISUALISATION WRITTEN BY
L AUR A MULL AN
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D I G I TA L S T R AT E G Y
H
e may have just touched down in London after a transatlantic flight, but Tableau Soft-
ware’s President and CEO, Adam Selipsky,
is feeling energised. He’s made the journey not long
after Tableau’s annual conference in New Orleans — an electrifying get-together of self-confessed data-geeks, who are invested in what the data analytics and visualisation firm has got up its sleeve. “It’s not really like any other tech conference,” Selipsky says, “You almost have to be there to really understand it; the level of excitement and passion is incredible. It’s not just a gathering of technology people, it’s really a community coming together.” To say that Tableau has a strong fan base would 36
be an understatement – and it has the numbers to back this claim. Over 17,000 customers and partners came to its conference in New Orleans and today, the firm claims to have over 50,000 customer accounts. It also won over the backing of Selipsky, who joined the firm just two years ago. Before that, he had his made his mark at Amazon Web Services (AWS), helping to grow the enterprise from a startup to a multi-billion-dollar business and a leader in cloud computing. “I think AWS taught me a lot about how to scale a company,” he reflects. “The product needs to work differently at scale, the way you communicate internally needs to work differently to scale, the way that you interact with your customers and who your customers are changes as you grow, particularly if you’re growing rapidly.” Spending over a decade at AWS, Selipsky made JANUARY 2019
a name for himself in the tech sphere but what was it that won him over at Tableau? “Despite really enjoying my time at AWS, when this opportunity to come to Tableau came along, it was such an exciting area around data and analytics, such a passionate group of customers and such a great product that it was just irresistible to me,” he says. “The company also has this really unusual
“ It’s not just a gathering of technology people, it’s really a community coming together” — Adam Selipsky, CEO, Tableau
and unique asset – and that’s the Tableau community. It’s an incredibly energising group to be a part of and frankly, it’s also an incredibly important asset for the company. It’s not easily matched by spending money on it. It’s something I think has been very carefully nurtured over a great number of years.” From Jaguar to Barclays, Aer Lingus to Google, Tableau’s customer list makes for impressive reading. Not only does the firm have faithful fans, but it also has a sense of purpose, claims Selipsky. The Seattle-headw w w.gi ga bi t ma ga z in e. com
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D I G I TA L S T R AT E G Y
quartered firm was founded with the goal of solving one of the most challenging problems in software – making databases and spreadsheets understandable to ordinary people. As the proliferation of data at our fingertips grows exponentially, this goal could prove to be even more vital. “Recent estimates from the IBC suggest that between now and 2025, the amount of data in the world that’s subject to analysis is going to grow 50-fold,” notes Selipsky. “I think a lot of organisations are 38
just going to get crushed under the weight of that data whilst many others are going to see
“ We talk about having the software ‘fall away’ so that it’s just you having a conversation with your data and that’s still at the very centre of what we do as a company” — Adam Selipsky, CEO, Tableau
brand new opportunities to develop insights and make better decisions based on all of that data. Regardless of whether your organisation sees data as a problem or an opportunity, there’s an urgent need for analytical capabilities to deal with it, and again, to make better decisions faster.” This is where Tableau Software has managed to carve a unique path in the sector. By helping people see and understand data, the firm believes the opportunities for business are endless. “Ultimately, we use data to make better decisions faster — that’s the goal. I think that human beings happen to interact with data very well in a visual setting. It’s just the way we’re wired. So, if you show a human being a sea of numbers it’s just not as meaningful as if you organised that data visually and there are many studies that illustrate that. I think JANUARY 2019
Tableau has gotten ahead and emerged as a leader by taking a very intuitive, beautiful, and highly interactive approach to visualising data. We talk about having the software ‘fall away’ so that it’s just you having a conversation with your data and that’s still at the very centre of what we do as a company.” Whether it’s being used to analyse energy efficiency, industrial performance political outcomes and more, the use of data is becoming commonplace in almost every sector. Not only has it become more prevalent but the wealth of information and data on offer has also swelled. As such, Tableau has not only focused on visualisation and analytics but has also had to consider other pressing questions like how society should manage this vast amount of information? As companies deal with more customers who bring with them more data, it’s no longer just a case of visualising and analytics, data management has also emerged as a top priority. “If we have more and more data, we also have more and more data sources,” Selipsky explains. “If we have thousands of people accessing data sources in our organisation, how do they even know what data sources to access? How will they know what data is available to them? There’s a whole series of data management challenges and that’s become a really important w w w.gi ga bi t ma ga z in e. com
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D I G I TA L S T R AT E G Y
part of what we’re enabling as well.” As such the firm recently unveiled a new capability called Tableau Prep, that manages data and ensures that its clean, consistent, organised and the right data needed for analysis. The technology sector is famed for its ability to morph and change in the blink of an eye and therefore, continuous improvement has emerged as a well-versed mantra at Tableau. For Selipsky, this means Tableau can’t be satisfied with its current offering and should also push itself one step further
“ I think a lot of o just going to g the weight of many others a brand new op develop insig better decisio — Adam Selipsky, CEO, Tableau
to make the platform more intuitive, more accessible and more user-friendly. “We’re in the age of analytic ubiquity,” claims Selipsky. “This means analytics is 40
going to be used very broadly, very pervasively, by
CLICK TO WATCH: ‘TABLEAU SOFTWARE - SHARE YOUR INSIGHTS IN SECONDS’
JANUARY 2019
organisations are get crushed under that data whilst are going to see pportunities to ghts and make ons”
knowledge workers around the world. But then you’ve got to ask yourself: ‘what needs to happen, what are the capabilities that companies like Tableau need to unlock to enable tens of thousands of users inside a large bank or retailer to use data and analytics?’” Tableau believes it has found the answer: natural language processing. Manifested in the firm’s latest roll-out called Data Ask, this capability uses this technology to allow everyday people to make simple requests from their data using everyday language. “We want to make data and analytics evermore intuitive, evermore natural, evermore familiar, to the way that the human brain already works and that’s why we’re using natural language because it feels natural,” explains Selipsky. “Now, instead of learning software and understanding what dimensions and measures are, you can simply type a question, such as: ‘What are the most expensive housing neighbourhoods in London?’ Then there’s complicated algorithms and sophisticated query parts that goes on in the background, to render a visualisation that is extremely relevant to that question that you asked.” This may seem like simple innovation but the nuts and bolts are highly intricate. To complete this question, the platform needs to understand what w w w.gi ga bi t ma ga z in e. com
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D I G I TA L S T R AT E G Y
‘neighbourhood’ means, what ‘London’ means, what expensive means’ and there also needs to be a time period specified. “Interpreting and producing relevant results is actually very hard work,” adds Selipsky. “This is the first release of that capability, but I think if we do our jobs well and we continue to innovate in this area, I think there’s a good chance we look back at the release of Data Ask and say that it was a turning point.” Data literacy is a critical skill for the 21st century. By 2020, Gartner 42
predicts that 80% of organisations will start to roll out internal data literacy initiatives to upskill their workforce. Wanting to stay ahead of the curve, Tableau has launched Academics, a programme that has so far helped 680,000 students and faculty to use Tableau. On top of this, Tableau has also partnered with British training provider, AVADO, to launch apprenticeships and training programmes in the UK. According to a recent study by Nesta, investment in data skills could help boost UK productivity by 3%, equivalent to roughly one-fifth of the UK’s productivity gap with other G7 countries, so this programme could go JANUARY 2019
43
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D I G I TA L S T R AT E G Y
‘By 2020, Gartner predicts that 80% of organisations will start to roll out internal data literacy initiatives to upskill their workforce’ 44 some way to bridging this data skills
over 5,000 organisations to provide
gap. “Data literacy is a big issue and
software, training services, and
I think the apprenticeship programme
financial support to help tackle issues
is interesting because we’ve tapped
like climate action, hunger, education,
into this growing movement and put our
gender equality, global health, poverty
resources behind it,” notes Selipsky.
and more. “The Tableau Foundation has
“It’s a fairly new and exciting capability
committed to provide US$100mn in
and it’s being driven, nowhere faster
software services and direct financial
than in the UK.”
support by 2025 and, to help enable
Tableau is a firm believer that facts
that, Tableau is making a US$25mn
and analytical reasoning can not only
equity contribution to the Tableau
transform a business but could also
Foundation,” adds Selipsky. “We’re very
solve some of the world’s most demand-
committed to that mission, we’re excited
ing problems. Recognising this, the firm
about the great work the foundation and
established the Tableau Foundation,
our partners have done together but we
a philanthropic body that works with
think there’s still more to do.”
JANUARY 2019
45 Over the past decade, there’s been
different to what we have done in the
a sea change when it comes to the
past’. I think there are some tactical
industry’s perception of data. Enter-
things that help make that happen:
prises, employers, non-profits alike are
I think the creation of centres of
recognising its merits and as the data
excellence around data and analytics
wave pushes forward, Tableau stands
really help to create a lightning rod for
set to benefit from this tailwind. For
the organisation to turn to. Overall,
businesses’ looking to tap into data
providing that leadership and showing
Selipsky’s advice is simple: get the
the organisation the roadmap that
culture right and the sky’s the limit.
they’re going to be heading is crucial.”
“Anytime a company talks about change, leadership plays a crucial role in driving it,” he observes. “I think fundamentally it’s about setting that direction and saying, ‘we are going to make decisions in a way that is w w w.gi ga bi t ma ga z in e. com
D I G I TA L D I S R U P T I O N
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Mendix: Redefining app development with a low-code approach As the race for software development heats up, we speak to Chief Technology Officer, Johan den Haan, to learn how Mendix is turning the industry on its head with low code development WRITTEN BY
JANUARY 2019
L AUR A MULL AN
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D I G I TA L D I S R U P T I O N
50
I
t’s no secret that software development is often what separates disrupters from the disrupted. With a few taps and swipes of
our devices we can now get a takeaway delivered straight to our door, track where our taxi is located or book an apartment in the blink of an eye. Industries across the world have been upended by software applications and the competition for coders is heating up. In the US, for example, the employment of software developers is predicted to grow 24% from 2016 to 2026, and as firms scramble to attract talent, skill JANUARY 2019
shortages are becoming commonplace. This is where low-code platform, Mendix, hopes to offer a helping hand by allowing companies to build software at unprecedented speed and scale. Chief Technology Officer, Johan den Haan, has worked at Mendix since almost its genesis, in fact he first cut his teeth in the company 13 years’ ago. In the beginning, he said the firm’s biggest challenge was trying to convince the market of merits of a new approach to developing applications. "Mendix has always focused on improving how people build software: making sure that they could do it faster, collaboratively and with control. Yet, when we started, we really had to convince people that they should use cloud-based software and that they should use digital tools rather than coding. Then there came a market shift whereby market analysts realised that we could no longer deliver all the software that we need with the existing technology approach.” Like it or not, any company – whether it’s in financial services, telecommunications or transportation – is a software company, at least they should be to compete in today’s digital age. However, many don’t have the necessary capacity to do so due to a chronic shortage of coders in the market. In the UK, for instance, a report by Tech Nation highlights w w w.gi ga bi t ma ga z in e. com
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D I G I TA L D I S R U P T I O N
that over 50% of the UK’s digital tech
code quicker, and it also helps to
businesses say they are facing
encourage collaboration across
a shortage of skilled workers.
departments creating what den Haan
This is where low-code platforms
52
describes as ‘BizDevOps.’ “We really
like Mendix offer an interesting
are changing the paradigm of how we
alternative. The idea behind it is simple:
look at software development,” he
low-code platforms allow firms to
explains. “Low-code enables people to
create apps without the need to code.
build software up to 10 times faster
Instead of writing lines of intricate
which solves part of the skills gap. You
coding language, the platform uses
also have greater collaboration: instead
a more visual approach involving
of a programmer building the applica-
drag-and-drop components and
tion with input from someone in
graphics. This relieves highly-skilled
business operations, people in the
software developers so that they can
business units can actually be part of
focus on more value-adding tasks,
the development team. This is benefi-
helps firms develop vast amounts of
cial as they’re able to bring a greater
JANUARY 2019
“ We really are changing the paradigm of how we look at software development”
— Johan den Haan, Chief Technology Officer, Mendix
53 understanding of the problem they’re trying to solve and they can directly influence software delivery. You could say that you have what we call BizDevOps teams. “That is, of course, the goal, it’s not about technology. It’s about enabling the business to grow faster, to reinvent itself, to add something to the market,” he adds, pointing out that Mendix defines itself as a ‘digital transformation enabler.’ This may seem an unorthodox approach to application development but its proven to be a hit, gaining backing from some of the sector’s most disruptive technology behemoths. In August, for instance, Siemens AG put its weight behind low-code development when it w w w.gi ga bi t ma ga z in e. com
D I G I TA L D I S R U P T I O N
acquired Mendix for US$730mn in
app quickly and more recently they’ve
cash. Den Haan believes that this
been nominated for an innovation
signifies how low-code development is
award based on this application. Most
here to stay. “It’s important to note that
importantly though, den Haan, points
Siemens is investing more into Mendix
out that although Mendix is a technol-
over the next three years than they
ogy vendor, housing a technology
bought the company for. This is one of
platform is just a small part of what it
the biggest investments in the lowcode market to date. The physical and digital world are quickly converging, you can no longer imagine a product or company that doesn’t have software at its core and I think Siemens has recognised this. If you don't grow as a 54
company and become a software company you will quickly become irrelevant. I think that is what digital transformation is all about – it’s about transforming your company to becoming a digital native.” Take Zurich Insurance, who used Mendix’s low-code development platform to build a so-called ‘face quote app’ to encourage young people to enter the insurance market. “They had a wild idea whereby they wanted to allow people to take a selfie and use artificial intelligence (AI) to identify the age of the person so that they could give them an age-appropriate quote.” Using Mendix’s platform they built the JANUARY 2019
“ It’s not about technology. It’s about enabling the business to grow faster, to reinvent itself, to add something to the market” — Johan den Haan, Chief Technology Officer, Mendix
does. Enabling business value is the end goal, and it has a four-step proven plan to make it happen. “We call it the four P’s: portfolio, people, process and platform,” comments den Haan. “We also start small: we ask the company to identify a first project application that needs to be built and of course, we shouldn't start with the most complex one but start easy. Something that can be built and delivered within 30 days. The biggest compliment I hear from our customers is that they say that ideas are flowing amongst the team again because if the first application is built in
55
30 days people start to think ‘well maybe we could do this bigger project too.’ We focus on collaboration and make sure that the business is able to build software that they are proud of.” Den Haan believes that low-code development isn’t the end of the road for Mendix, he believes that the applications of the future lies in AI-assisted low-code development. “I think the next era of applications is the smart app. These have three characteristics – it understands the context of the app so where the user is located and what the user is doing, using personal, sensor or location data. It’s also intelligent: it uses w w w.gi ga bi t ma ga z in e. com
D I G I TA L D I S R U P T I O N
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“I think we can use AI-assisted low code platforms to speed application development by 10 times once again” — Johan den Haan, Chief Technology Officer, Mendix
JANUARY 2019
AI, machine learning and predictive analytics to look at that context data and to make products or recommendations for the user. Then thirdly it will be proactive. So instead of you, as a user, using the application to get information, the application will come to you.” The software development landscape is also leveraging the power of AI too. “I don’t think the future of the market lies solely in low-code platforms,” notes den Haan. “I think it lies in AI-assisted development, built on low code.” As a result, the firm launched Mendix Assist, what it touts as the first AI-assisted development that can be built into a low code application development platform. Analysing anonymised applications that have been built using Mendix, this tool can proactively offer next-step suggestions for developing code. “I think we can use AI-assisted low code platforms to can speed application development by 10 times once again,” he adds.
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Top 10
highest valued tech unicorns in the world Just like in mythical legends, unicorns in the tech business are a rarity. In fact, last year, CB Insight calculated that the odds of a company reaching that coveted billion-dollar-valuation was less than 1%. We investigated the most highly valued VCbacked tech companies, according to PitchBook, to see which tech firms have beat the odds WRITTEN BY
LAURA MULLAN
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10
Pinterest Launched in 2010, Pinterest Inc. has quickly risen to fame, earning a valuation of US$12.3bn according to PitchBook. From wedding tips, beauty inspiration or new recipes, the web and mobile app allows users to save images and stories to virtual pinboards. Pinterest was founded by Ben Silbermann, Paul Sciarra and Evan Sharp and today, it claims to have around 250mn monthly active users.
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09
Pinduoduo
Valued at US$15bn, Pinduoduo is a leading Chinese e-commerce platform which allows users to participate in group buying deals, primarily through Tencent’s WeChat app. In January, the firm claimed to have 114mn active users, according to Forbes. Pinduoduo was founded in 2015 by Colin Huan and since then it has gained investments from Tencent, Gaochun, Xintianyu respectively.
www.pinduoduo.com
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08
Toutiao
Valued at around US$20bn, Toutiao (or Jinri Toutiao) is a Beijingbased news and information content platform. Data analytics firm iResearch claims that Toutiao is installed on over 240mn monthly unique devices, makes it a leading news aggregator in China. By analysing content as well as users’ interaction with content, Toutiao generates a unique feed list of content for each user. In November, the six-year-old company appointed Chen Lin as the new Chief Executive Officer of the firm. As of September 2017, Toutiao had 120mn daily active users and Pitchbook reports that the firm is valued at US$20bn.
www.toutiao.com
JANUARY 2019
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07
Palantir Headquartered in Palo Alto, California, Palantir is a software company that specialises in providing big data analytics for government agencies and private firms. The company was founded in 2004 by Peter Thiel, former co-founder of PayPal, as well as Nathan Gettings, Joe Lonsdale, Stephen Cohen and Alex Kar. In 2016, Palantir announced that it had acquired Dutch data visualisation firm Silk. Today, Pitchbook reports that Palantir is valued at approximately US$20.5bn.
www.palantir.com
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06
WeWork WeWork is a New York-headquartered company that provides collaborative shared working spaces. In July, the firm revealed it had raised US$500mn from Softbank and Hony Capital to fuel the growth of the company’s operations in China. WeWork was founded by Adam Neumann and Miguel McKelvey in 2010 and figures from Pitchbook say the company is now valued at US$21.1bn.
www.pinterest.co.uk JANUARY 2019
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05
SpaceX
Founded in 2002 by Elon Musk, Space Exploration Technologies Corp., which does business as SpaceX, is an aerospace company which designs, manufactures and launches rockets and spacecrafts. SpaceX says it has “the ultimate goal of making life multiplanetary.” Last year the startup noted that it had achieved 18 successful launches —twice as many as in the previous year. SpaceX has a valuation of around US$24.7bn according to PitchBook and its investors include Fidelity Investments and Google.
www.spacex.com
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04
Meituan-Dianping Headquartered in Beijing, China, Meituan-Dianping is not only the world’s largest food delivery firm but it also operates in other verticals such as hotels, lifestyle, ticketing and bike-sharing via Mobike. The company was founded in 2010 by Wang Xing and now it has a valuation of around US$30bn, according to Pitchbook. The Financial Times reported that Meituan-Dianping had 290mn monthly active users as of April 2018.
www.meituan.com
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03
Airbnb Peer-to-peer home rental firm Airbnb disrupted the hospitality industry when it was founded a decade ago and now it is the third highest valued VC-backed tech company in the world, with a valuation of around US$31bn. Headquartered in San Francisco, Airbnb now has satellite offices in Dublin, London, Barcelona, Paris, Milan, Copenhagen, Berlin, Moscow, São Paolo, Sydney and Singapore. The company’s marketplace provides consumers with access to over 5mn places to stay in more than 81,000 cities and 191 countries. Speaking at the Skift global travel conference in October, Airbnb’s President of Homes, Greg Greeley, revealed that the Californian startup has welcomed over 400mn guest arrivals since it was first founded.
www.airbnb.co.uk
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02
Didi Chuxing With a valuation of around US$56bn, Didi Chuxing has quickly positioned itself as one of the top valued private companies in the world. The Chinese firm has made its mark as a mobile transportation platform, offering services for taxis, buses, car rental, bike-sharing and more. Didi Chuxing claims to have 450mn registered users — over half of the country’s mobile-internet users — and 21mn drivers who provide 25mn rides per day. Two years ago, Didi Chuxing made headlines when it acquired Uber China for an undisclosed amount.
www.didiglobal.com
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01
Uber
Topping the leaderboard is ride-hailing company Uber which raised US$1.3bn in a fundraising round led by Softbank in January 2019. The 10-year-old company has grown to become the highest valued private startup company in the world, with a valuation of around US$69.9bn. Uber was founded by friends Travis Kalanick and Garrett Camp almost a decade ago and now, the firm completes around 15mn trips every day. Last year, Uber calculated that it had around 16,000 employees and the San Francisco-headquartered firm is now present in 65 countries worldwide.
www.uber.com
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EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences EDITED BY LAURA MULLAN from around the world
08–12 JANUARY 2019
Consumer Electronics Show (CES) [ LAS VEGAS, NEVADA, UNITED STATES ] The Consumer Electronics Show (CES) is the world’s gathering place for all those who thrive on the business of consumer technologies. It has served as the proving ground for inn72
ovators and breakthrough technologies for 50 years — the global
12–15 FEBRUARY 2019
stage where next-generation innova-
Think 2019
tions are introduced to the marketplace.
[ SAN FRANCISCO ]
Owned and produced by the Consumer
Giving unbridled access to experts,
Technology Association (CTA), it attracts
customer, partners and IBM execu-
the world’s business leaders and pio-
tives from around the globe, Think
neering thinkers.
2019 is a key event for any technology
January’s conference will open with IBM
professional’s calendar. The event will
Chairman, President and CEO Ginni
be the second-annual Think confer-
Rometty delivering an address to discuss
ence and it aims to cover the breadth
how technologies such as AI and quan-
and depth of technology and business
tum, when built on a foundation of trust
topics including cloud, artificial intelli-
and transparency, will drastically change
gence, data analytics, infrastructure
business and society for the better.
and much more.
Click to visit website
Click to visit website
JANUARY 2019
04–08 MARCH 2019
RSA Conference 2019 [ SAN FRANCISCO, UNITED STATES ] RSA Conference is one of the biggest IT security conferences in the world,
25–28 FEBRUARY 2019
with 2019’s main event taking place in
MWC Barcelona
San Francisco.
[ BARCELONA, SPAIN ]
Attendees can expect to learn about the
MWC Barcelona is the world’s largest
latest cybersecurity developments in
exhibition for the mobile industry, incor-
expert-led sessions, inspiring keynotes
porating a thought-leadership
and in-depth seminars. They can also
conference that features prominent
demo innovative products and solutions,
executives representing mobile opera-
network with infosec insiders and peers,
tors, device manufacturers, technology
and help move the industry forward as
providers, vendors and content owners
part of an engaged and empowered
from across the world.
global community.
Mobile World Congress 2019 will once
This year’s theme is ‘Better’. According to
again take place at its traditional Fira
the RSA Conference, this means ‘work-
Gran Via venue in Barcelona and next
ing hard to find better solutions. Making
year will be built around eight core topics:
better connections with peers from
Connectivity, AI, Industry 4.0, Immersive
around the world. And keeping the digital
Content, Disruptive Innovation, Digital
world safe so everyone can get on with
Wellness, Digital Trust and The Future.
making the real world a better place’.
Click to visit website
Click to visit website
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EVENTS & A S S O C I AT I O N S
04–06 MARCH 2019
Gartner Data & Analytics Summit 2019 [ LONDON, UK ] In this world of ambiguity characterized by uncertainty, risk, doubt and purpose and bring clarity through data
AI and Big Data Conference 2019
and analytics you can rely on and, most
[ OLYMPIA, LONDON ]
importantly, trust. Data and analytics
The AI & Big Data Conference & Exhibi-
leaders are driving digital transforma-
tion taking place 25-26th April 2019 at
tion, creating monetization opportunities,
the Olympia Grand, London and is a
improving the customer experience
showcase of next-generation technolo-
and reshaping industries. We’ll share
gies and strategies from the world of
new strategies, guidance and best
Artificial Intelligence & Big Data, an
practices to help you realize your
opportunity to explore and discover the
future - a future based on data you can
practical and successful implementa-
trust, agile analytics you can rely on,
tion of AI & Big Data in driving forward
and the clarity needed to empower you
your business in 2019 and beyond.
with the continuous intelligence and
4 co-located events. 21 conference
pervasive insights necessary to excel
tracks. 12,000 attendees. 500+ speak-
in the digital economy.
ers. 350+ exhibitors.
Click to visit website
Click to visit website
fake news, now is the time to lead with 74
25 APRIL 2019
JANUARY 2019
09–10 MAY 2019
TECHSPO Technology Expo [ NEW YORK, USA ] TECHSPO Technology Expo showcases the next generation of technology
JUNE 2019
75
Tech, AR, VR, IoT, Weara-
MoneyLIVE Digital Banking
bles, Mobile, Internet, 3D
[ LONDON, UK ]
Print & Emerging Technol-
MoneyLIVE: Digital
Women of Silicon Roundabout
ogy, Exhibitors have the
Banking is the leading
[ LONDON, UK ]
opportunity to show off
digital banking confer-
Through inspirational
their companies to con-
ence for innovators
keynotes, panel discus-
sumers, the highest
across the industry. With
sions, technical classes
calibre investors, hordes
11+ hours of content
and more, the Women of
of press, the most sought-
from 40+ speakers,
Silicon Roundabout aims
after talent, and the
2018’s event tackled the
to help companies pro-
greatest pool of tech
most pressing questions
mote gender diversity
enthusiasts looking to cel-
facing the banking
and inclusion in the tech-
ebrate emerging venture.
industry today.
nology sector.
Click to visit website
Click to visit website
Click to visit website
& innovation; Contextual
25–26 JUNE 2019
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Transforming procurement the Fannie Mae way WRIT TEN BY
ANDRE W WOODS PRODUCED BY
DENITR A PRICE
JANUARY 2019
NORTH AMERICA
77
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FA N N I E M A E
We speak to Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management at Fannie Mae, on how he aligns procurement with business at Fannie Mae…
A
number of companies struggle to establish the bridge between their business aspirations and priorities and the procurement space. However,
procurement is undergoing a sea of change at the moment with many businesses no longer viewing this
78
service as merely a back-end function. Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management at Fannie Mae, sees his role in procurement as much more business facing. “A lot of times procurement organizations tend to be too focused on the cost,” he explains. “However, that’s often not what the businesses are really looking for. Obviously everyone wants to be competitive with price, but there’s more to be had from procurement.” Karmacharya has over two decades of experience in procurement, supply chain and technology roles and has seen the procurement function evolve over time. He worked as a management consultant for over 12 years, including as a Principal for AT Kearney, a global management consulting firm. He consulted for a number of leading Fortune 500 firms where he often worked just as closely with the CIO as the CFO. “I really got to see how JANUARY 2019
NORTH AMERICA
79
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Passion. Execution. Results.
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FA N N I E M A E
the priorities and perspectives could
function here and what I found talking
sometimes be different between the
to senior executives across the
two groups,” he explains.
company was that they didn’t see
Fannie Mae is a U.S. government-
value in procurement that does just
sponsored enterprise (GSE) that
transactional work. Obviously, there
supplies financing to mortgage
are trade-offs with minimizing cost,
lenders. Fannie Mae celebrated its
minimizing risk and speed of delivery.
80th birthday in 2018. Karmacharya
This interesting dynamic gave me a
joined the company in 2013 and has
perspective on how you should really
been working on transforming the
design a procurement organization.
procurement space through a more
How can a group be really effective?”
business-facing function rather than a
82
traditionally administrative process.
FUTURE PROCUREMENT
“When I joined Fannie Mae, we didn’t
Fannie Mae was keen to recruit
have a category management type of
procurement experts that could supply
$109.9bn Approximate revenue
1938
Year founded
7,200
Approximate number of employees JANUARY 2019
S U P P LY C H A I N
market insights and industry knowl-
to a model where we are the category
edge to the organization. “Our busi-
experts. Our category managers
ness stakeholders are not expecting
have a full understanding of their
procurement to tell them whether they
categories, including historical spend,
should buy this product or that product,
contractual terms, key sourcing levers
but they certainly wanted us to bring in
as well as industry knowledge – more
insights as to what was happening in
than anyone else in the company. This
the marketplace. What are the trends?
creates a partnership, and even though
Who are the key and emerging players?
the organization may change on the
What types of innovation are happen-
business side, it enables us to provide
ing in the industry?
continuity as well as an enterprise
“Obviously, the transactional part is important, as is the supplier manage-
perspective.” Fannie Mae’s sourcing and procure-
ment and all the traditional procure-
ment transformation journey is about
ment functions, but we have moved
customer service. “For us, our internal
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83
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Planning a Successful Procurement Transformation Journey Wayne Gretzky once said that “a good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” The same can be said for procurement leaders planning their organizations’ digital transformation. At Ivalua, we’ve had the opportunity to work with hundreds of the world’s leading companies on their journeys. The most successful have consistently been those that keep their eye on where they want their organizations to be many years down the road and plot their course accordingly. While people ultimately are the ones that deliver value and bring successful transformations to fruition, technology is a critical enabler. It frees capacity, provides necessary insights, enables collaboration at scale and much more. Successful procurement transformation journeys involve several core phases, and technology must be able to support each one when you are ready to progress.
Get up and running quickly Typical Objectives
Technology Requirements
Generate ROI
Digitize the full Source-toPay process Manage 100% of spend
Adopt industry best practices
Bing your best ideas to life Establish agility for evolving requirements
Improve data / strategic insights
Rapid deployment, adoption & onboarding Industry configurations
Complete suite
Powerful configurability
Unified data model
Industry-leading capabilities
Getting Started
Best-in-Class
Competitive Advantage
Procurement Digital Transformation Journey
If getting started, ensure technology can deliver rapid ROI and deliver best practices. But remember that even if you are only digitizing part of your process now, when you are ready to build a truly best-in-class procurement organization you’ll want to digitize the full Source-to-Pay process, in which case an integrated suite to automate all activity will be needed, and a unified data model will be critical to ensuring 360 degree supplier visibility or generating process-wide insights from the latest artificial intelligence applications. Fannie Mae was able to onboard nearly 100% of their suppliers and achieved visibility into 100% of spend. Their team made it happen, empowered by technology. You should insist on best practice capabilities and configurations, but realize that as you mature you will inevitably find that some requirements are truly unique or have evolved. Be sure your technology has the flexibility to accommodate them through configuration. And remember that best-in-class does not create a competitive advantage. Top talent will want to innovate and do a few strategic activities differently, better than the competition. Technology should empower them to do so and bring their best ideas to life. Fannie Mae maintains better insight into cyber security threats than its suppliers, so implemented a unique process to automatically notify at-risk suppliers of threats, thereby reducing risk better than others. Every company’s journey is unique, but by keeping their eye on where they are headed, procurement leaders can achieve their goals.
To learn how Ivalua can accelerate your procurement digital transformation, visit ivalua.com
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“Like many internal operations, procurement has undergone a digital recalibration of both its architecture, functionality and efficiency as Big Data, machine learning and AI start to filter into the procurement space” — Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management
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CLICK TO WATCH : FANNIE MAE – NATIONAL HOMEOWNERSHIP MONTH 89 business unit stakeholders are our
focus on. Sometimes, that may mean
customers. Some procurement
higher cost for faster speed-to-market,
organizations don’t like to call their
or taking on a slightly higher level of
internal stakeholders ‘customers’. I
risk. We may challenge them from time
think we’ve been very deliberate about
to time if we believe that’s in their best
viewing our business stakeholders as
interest, or the company’s. Ultimately,
customers and really putting them at
we want our customers to have a
the center of everything we do. We
positive experience in their interac-
seek to understand their business so
tions with procurement while knowing
we can see it from their perspective.
that we have their back. That’s the kind
We help our customers achieve market
of model we’re building.”
competitive costs and help identify
Like many internal operations,
and mitigate supplier risks, but our
procurement has undergone a digital
customers’ business objectives and
recalibration of its architecture,
priorities are at the core of what we
functionality and efficiency as Big w w w.gi ga bi t ma ga z in e. com
FA N N I E M A E
“I think the key for me is understanding business needs and viewing things from the customer’s perspective” 90
— Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management
Data, machine learning and AI technologies start to filter into the procurement space. “We have totally digitized contracts and can do a lot more with contract authoring and contract analytics, among others. We have started to test RPA (robotic process automation) where it makes sense – and I’ll be honest: RPA doesn’t always make sense for smaller scale operations, where there is a lot more thinking versus doing. From a business case perspective, the promised land of true digitization is full collaboration and transparency that enables harnessing the full potential of technologies, such as JANUARY 2019
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machine learning and artificial intelligence. For our customers, that means greater efficiency and better analytics and insights.”
A PROCUREMENT TRANSFORMATION With any digital transformation, robust technology solutions are key to continued success. “If you looked at the technology solution we had a few years ago, the context diagram of our procurement system and integrations was outdated. This complexity meant higher opportunity for errors and impacted our cycle times. We also didn’t have a good way to tackle approvals outside of Procurement – much of this was done via emails and lacked consistency. We had multiple sources of records for supplier data, but no direct integration between contracts and purchase as they were on different systems. So, we needed an end-to-end solution that was flexible to meet our unique needs, yet scalable to handle our volume. After assessing a number of established players, Fannie Mae chose an innovative, emerging supplier in source-to-pay space. We now have a more user-friendly procurement system that allows for integrated requisition and contract approval workflow and now, along with the adoption of e-signatures and mobile approval capability, we w w w.gi ga bi t ma ga z in e. com
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have cut down cycle-time for standard
We have full spend visibility that really
purchases by 50%.”
enables us to do all the associated
Karmacharya’s team utilizes an
analytics. Catalog management and
end-to-end procurement solution
automatic deal approval with the full
where all of the contracts are in one
workflow is also built into the tool,
contract management system. The
which makes the process very efficient.
key metadata is captured and stored.
Moreover, with the workflow built into
Contract authoring has been piloted
the tool, it is easier for customers to
and the company is looking to expand
see where things are – with increased
its contract authoring and contract
transparency, procurement is becom-
analytics capabilities. “Much of our
ing less of a black box.”
contracting work happens electroni-
Karmacharya believes trusted
cally,” he explains. “Key contract
relationships with suppliers are equally
meta-data is captured and we utilize
important to bring value to internal
e-signature for execution. We continue
customers. The team has worked
to be focused on ensuring data quality,
hard to build strategic partnerships
capturing additional metadata, and
with key suppliers. “We believe
some of the innovative things you can
suppliers can help bring innovation
do with digitalization to drive efficiency.
and best practices with the right
E X E C U T I V E P R OF IL E
Rajeev Karmacharya Rajeev is Managing Director of the Strategic Sourcing and Category Management group in Fannie Mae. Rajeev leads a team of category management, strategic sourcing, contracting, and supplier operations professionals. In addition, Karmacharya currently serves in the Advisory Board of the Sourcing Interest Group, a global industry forum for Sourcing professionals.
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FA N N I E M A E
“From a business case perspective, the promised land of true digitization is full collaboration and transparency that enables harnessing the full potential of technologies, such as machine learning and artificial intelligence” 94
— Rajeev Karmacharya, Managing Director, Strategic Sourcing and Category Management
partnership and accountability. For
supplier pricing models we might not
example, we work collaboratively
normally have.”
with them to drive efficiency and cost
Besides unit cost optimization,
competitiveness. Annually, we work
Karmacharya’s team is also focused
with them to plan out future demand
on managing demand and seeking
so they can plan their resources
out substitution opportunities. For
accordingly and we get the benefit
example, the procurement team
of readily available, qualified resourc-
worked collaboratively with the
es in areas of our greatest need. We
enterprise data team to manage
also work with a company that helps
data purchases and allocation. Prior
us with benchmarks, and on key
to establishing an asset management
hardware and software deals, which
program, budget planning, forecasting
helps bring a unique perspective into
and cost allocation was challenging
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more difficult. Sometimes you have to challenge your customer and say, ‘Are you sure you want to do this? Because here’s what the data is telling me.” “There are valuable insights you can draw from analysis of not just spend and buying patterns, but also from trends in the marketplace. What resonates with the customers might not be cost savings. It might be other things you, and the customer, might not be thinking about.” “I think the key is understanding business needs and viewing things from customer’s perspective,” he adds. “On the flip side, by having this analytical insight you really understand what the opportunities are and, in turn, are due to the fragmented nature of the
better able to challenge the customer.
purchase across multiple business
Do you take the easy path, the path of
units. A new data management solution
least resistance, with minimal value or
enabled the company to effectively
would you rather be someone who is
manage its data purchases and reduce
really helping drive the business? I
duplicative purchases.
choose the latter every time.”
It’s Karmacharya’s customer service mindset that is driving tangible value. “I tell my team every day to think about the value we are bringing. You can always take the easy path, or you can take the path that drives the most value even though it may be a little w w w.gi ga bi t ma ga z in e. com
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How BlackBerry is undergoing a legendary digital transformation and creating an inclusive platform for women in technology WRIT TEN BY
L AUR A MULL AN PRODUCED BY
CR AIG DANIEL S
JANUARY 2019
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BL ACKBERRY
Following BlackBerry’s incredible turnaround, we talk to Neelam Sandhu, Senior Director of Business Operations Office of the CEO, about BlackBerry’s reinvented focus, the fast-emerging Enterprise of Things, and challenges faced by women in tech
‘Do what you enjoy the most and you’ll never work a day in your life’ – this 98
may be a well-versed platitude, but for Neelam Sandhu it has proven to be sound advice when navigating through her career. She knew that she reveled in fast-paced and dynamic environments, that she wanted to utilize her skills in business strategy, and most importantly that she wanted to work for a company for which she could be a genuine ambassador. This inevitably led her to the world of technology and ultimately the doors of BlackBerry. The rest, she says, is history. Now, Senior Director of Business Operations Office of the CEO at BlackBerry, Sandhu describes her role as one which “touches every JANUARY 2019
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function of the company in some capacity”. One day she may be meeting with government officials and customers, the next launching a new internal expense management system, or executing on initiatives like the BlackBerry Shield. Sandhu has seemingly found her calling in the technology sector but unfortunately, women in this field are increasingly rare. A report by Accenture and non-profit Girls Who Code noted that women account for 34% of
Neelam Sandhu, Senior Director of Business Operations, Office of the CEO, BlackBerry
computing jobs today, down from 37% in 1995. Elsewhere, in the UK, figures from the Women’s Engineering Society (WES) show that just 15% of people working in STEM (Science, Technology, Engineering and Mathematics) roles are women – and only 5% of leadership positions in the technology industry are held by women. The statistics make for disheartening reading, but Sandhu is optimistic that we could see change on the horizon. “In my career, I’ve certainly experienced some bias from men and women alike,” she recalls. “However, I’ve been very fortunate that, for me, BlackBerry has been a great place to grow and learn and to advance my w w w.gi ga bi t ma ga z in e. com
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career, with support from both
can see that two leaders of General
genders. I wouldn’t be where I am
Motors – the CEO and the CFO – are
today without that support. There are
both women. The automotive industry
still a number of challenges that need
is one which is notoriously male-domi-
to be worked on in every industry, not
nated so we are seeing change right
just in technology, when it comes to
there. Betty Liu is another example.
gender diversity and equality,” she
She began her career in journalism,
adds. “But I think the conversation is
went on to start her own business and
changing – it’s becoming less taboo
now she is the Executive Vice Chair-
and men are getting involved in the
man of the New York Stock Exchange.”
discussion as well, which is critical.” One of the biggest hurdles, Sandhu
Another hurdle, Sandhu believes, lies in education. Surveying over 2,000
believes, lies in the lack of female role
A-Level and university students in the
models in male-dominated fields.
UK, PwC found that only 3% of women
“Women don’t have those same role
say a career in technology would be
models or examples as men to look up
their first choice. “We need to increase
to or emulate,” she observes. “But I do
the pipeline of women in STEM and
think that's changing. For example, we
that starts with education,” notes Sandhu. w w w.gi ga bi t ma ga z in e. com
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BL ACKBERRY
“ At BlackBerry, we’re very focused on making sure that whatever we do is positively impacting society – that’s something that is not traditionally seen in or associated with technology” 104
— Neelam Sandhu, Senior Director of Business Operations, Office of the CEO, BlackBerry
“We need to work on creating an envir–
focused on making sure that whatever
onment where women feel comfort-
we do is positively impacting society
able learning STEM topics. Not only is
for the better – that messaging is not
the professional environment male
traditionally seen in, or associated with,
dominated, but the education environ-
technology,” says Sandhu. “Technol-
ment is too. So, creating that environ-
ogy is often seen to be a more rational,
ment or community where women feel
colder environment. If we can change
comfortable in STEM is important.”
the messaging to highlight the value
Sandhu also suggests that creating the right messaging that appeals to women and encourages them to get
that technology adds to society, it will attract more women to the sector.” ‘Impacting society for the better’: it's
involved in STEM could prove helpful.
an admirable statement, and it’s one
“For example, at BlackBerry, we're very
which BlackBerry is putting into practice
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E X E C U T I V E P R OF IL E
Neelam Sandhu Neelam Sandhu is responsible for the operations of the CEO office, including supporting the CEO in managing key customer and government relationships globally, management of and content development for internal and external engagements, and driving strategic cross-functional projects to deliver operational efficiencies. Neelam also manages BlackBerry’s travel strategy and operations. Since joining BlackBerry in 2009 Neelam has held various positions, based out of the company’s United Kingdom, New York and California offices. Her responsibilities have included Brand Management, Brand Messaging, Marketing Operations, Go-To-Market for the Curve and Porsche Design products and Corporate Strategic Initiatives. Neelam holds a bachelor’s degree, with honors, in Business Management, from the University of Leicester and an Executive Certification in Financial Analysis from the University of California at Berkeley’s Haas School of Business.
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“ BlackBerry represents the ambition in diversity and inclusion that RBC seeks out in our business partners, with its leaders fundamentally recognizing the power of humanity – and human values – in our tech-driven age. As a thought leader, Neelam is showing how this approach is esse–ntial to ensuring that we create technology for good, for all of our employees, customers, clients and communities ” — Bruce Ross, Group Head of Technology & Operations, Royal Bank of Canada
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ever since it shifted its roadmap following a mammoth transformation. To say BlackBerry has reinvented itself in the past decade would be an understatement. At its peak, its smartphone was in the hands of almost every corporate and business professional, with sales reaching a crescendo between 2009 and 2011. As the competition heated up, BlackBerry’s device sales slumped and it decided it needed a new roadmap. This is where John Chen, BlackBerry’s current Executive Chairman and CEO, entered the fray. A well-known turnaround expert, Sandhu says that Chen helped to herald in a new era for BlackBerry. “He stabilized the company financially and put us into growth mode. To do that, he had to develop a strategy which would take us into the future,” she says. “He decided to focus on what we do best: security and connectivity.” Recognizing that the market was shifting towards a software model, Chen helped to spearhead a new chapter in BlackBerry’s history, pivoting it from a smartphone hardware firm to an enterprise software and services company. “He led the company through a complete shift culturally, operationally and strategically,” notes w w w.gi ga bi t ma ga z in e. com
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CLICK TO WATCH : ‘BLACKBERRY SPARK ADVERT’
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“ At the center of financial markets, the NYSE plays an important role in helping great companies such as BlackBerry raise capital so that they can innovate, create jobs and drive purposeful programs that advance the global workforce and the communities around them. We commend BlackBerry for its work to foster the growth of its leaders, and we congratulate Neelam for being a strong role model for women in technology” — Betty Liu, Executive Vice Chairman, NYSE
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“ At KPMG, inclusion and diversity strengthens our business, enriches our culture and enables us to develop relationships with our communities. We accelerate productivity by tapping into diverse talent and new markets. We are proud to team with BlackBerry in their commitment to unlocking the power of diversity and driving innovation. I am thrilled to recognize Neelam for representing BlackBerry, a company committed to supporting women in leadership and for being recognized as a powerful example of female empowerment in business and technology” — Tony Malfara, Partner, Risk Consulting Services, KPMG in Canada
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Sandhu. “The future of the tech industry and the connected world lies in software, not in hardware, so we’ve evolved to become a software company, focused on connectivity and security. Chen also identified a new market called the Enterprise of Things (EoT) which we have positioned ourselves to lead.” Just as BlackBerry mobilized the workforce with smartphones – allowing employees to send emails on the go, for example – so too have other technologies and tools transformed the way we work. As more and more devices and tools enter the enterprise workflow, there is a greater need to make this workflow secure and this is where BlackBerry is making its mark. “The Enterprise of Things isn’t just about the assets that your employer provides you; the enterprise workflow is expanding to include other Things that aren’t provided by the enterprise. For instance, an employee might use a file sharing solution that isn’t provided by their employer or a device like an Amazon Alexa speaker. There are more Things being connected into daily work processes that aren’t under the enterprise’s control. This means that enterprises will demand BlackBerw w w.gi ga bi t ma ga z in e. com
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“ BlackBerry is a company driven by strong corporate ethics. I believe there is strength in diversity and am committed to leading an inclusive organization. In an increasingly integrated world it is unification that unlocks the power of our platform and I am proud to be a champion for women and minorities in technology leadership positions” — John Chen, Executive Chairman & CEO, BlackBerry
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CLICK TO WATCH : ‘BLACKBERRY WATERLOO CAMPUS’
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113
ry-grade security for more and more
do,” Sandhu explains. “We are keen
connected Things. We also expect to
to make sure that everybody who is
see the same request from consumers,
connected to a ‘Thing’ is benefiting
as they become increasingly aware
from BlackBerry's best-in-class
of their privacy landscape and demand
security, BlackBerry's data privacy
greater transparency from technol-
promise, and our legacy and reliability
ogy companies.”
when it comes to connectivity too.”
With more endpoints comes greater
The BlackBerry Spark platform is
risk and this is where BlackBerry’s
designed to tackle the growing EoT
expertise in security and connectivity
market. It delivers ultra-secure hyper-
come into play. “Today we’re very
connectivity from the inside out.
focused on securing all EoT endpoints
“There’s a scientific theory called the
and ‘all’ is the keyword here because
‘grand unification theory’ and it states
we are platform agnostic in what we
that everything in the universe can be w w w.gi ga bi t ma ga z in e. com
BL ACKBERRY
brought together by a single unifying force, and that's how we describe BlackBerry Spark – it’s a single platform that unifies every connected ‘Thing’ securely, reliably, with user privacy at the forefront.” As more hacks and cybersecurity threats make the headlines, security has become a pressing concern for any firm. It’s a top priority for BlackBerry too. Sandhu describes the firm as one which “lives and breathes security”, proven by the fact it works closely with famously secure organizations like 114
the G7 governments, NATO, and some of the world’s largest banks and medical institutions. On top of this, BlackBerry also uses its own technologies and products, ensuring its internal security is of the highest caliber. “We can't have a single conversation at BlackBerry without the word ‘security’ coming up,” she observes. “We live and breathe security so that the end user and the enterprise doesn't have to worry about it. Our security expertise has been built into our platform since day one. It’s been built into every layer of our solutions, from the kernel to the edge, and so I’d say security is definitely one of our key competitive tenets.” JANUARY 2019
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“ As Canada’s flag carrier, Air Canada takes pride in projecting Canadian values such as equality and inclusiveness around the world and we celebrate these qualities every day at our airline, as shown by the prominent role women play in all parts of our company. We are always pleased when we see other major Canadian companies, like BlackBerry, also promote these values and we congratulate Neelam on her remarkable accomplishments” — Catherine Dyer, Senior Vice-President and Chief Information Officer, Air Canada
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“ B ell is committed to fostering an inclusive, equitable, and accessible workplace that provides all team members with the opportunity to reach their full potential. We are proud to partner with BlackBerry, a fellow Canadian company that proudly promotes women to key technology leadership positions, and congratulate Neelam on being recognized by Business Chief” — Devorah Lithwick, Senior Vice President, Brand, Bell
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BlackBerry’s customers seem to agree with this sentiment. Today, BlackBerry’s software is embedded into more ‘Things’ than it was when it had its peak of smartphones in the market – and at that point of time, it had the largest smartphone share in the global market. One of the most notable examples of its widespread use, Sandhu points out, is its mass notification solution called BlackBerry AtHoc which is used by organizations like the G7 governments and the Red Cross, in emergency situations like natural disasters or manmade threat situations. “They use BlackBerry AtHoc to collaborate and send mass notifications or alerts to other users. In the last year, the solution has been used to send around half a billion messages around the world. It enables users to be safe in their environment and to be warned of potentially unsafe situations.” This clearly harks back to the company’s core ethos of wanting to make a positive impact on society. BlackBerry’s turnaround is well evidenced and, for Sandhu, it has been thanks in part to the company’s security, its interoperability and, most importantly, its stance on privacy. “From the offset, we've promised data privacy,” w w w.gi ga bi t ma ga z in e. com
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BL ACKBERRY
CLICK TO WATCH : ‘BLACKBERRY CO–OP TESTIMONIAL’ 118 she says. “We don't monetize people's data. We believe that the data belongs to the person that's generating it, meaning the end user. We've had that promise since day one and we continue to commit to it.” This has allowed BlackBerry to foster sincere relationships with its users built on trust which may have given the firm a leg up in the sector. “People have to trust the solutions that they're using and that's one of the key reasons why BlackBerry is still successful and still a key brand name. People trust us,” she adds. On the road ahead, BlackBerry is keen to keep its finger on the pulse of JANUARY 2019
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“ At Sullivan and Cromwell, we believe fostering a diverse and inclusive work environment is vital. I am delighted that Neelam has been recognized by Business Chief as a woman in tech leadership and we are proud to partner with BlackBerry, a company that supports women in key leadership positions” — Alison Ressler, Partner at Sullivan & Cromwell and a member of the firm’s management committee.
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the latest innovations in the sector – for instance, as quantum computing comes more commonplace, security will have to get smarter too and so
“ At Torys, we strive to uphold an inclusive and diverse workplace. The work we do for clients is fueled by individuals who are empowered to bring their best selves to work each day. It’s great to be able to work alongside like-minded companies such as BlackBerry who share the same ethos” — David Chaikof, Partner at Torys
BlackBerry has launched a new quantum security solution to get ahead of the curve. Most importantly though, Sandhu points out that as the landscape changes the firm will continue to remain focused on the three-word mantra which got it where it is today: security, privacy and connectivity. “In the future, we'll maintain our data privacy promise and we'll continue to come up with solutions like BlackBerry Shield that help keep people safe,” she says. “We'll do whatever we can to make these solutions available to the whole market by remaining platform agnostic, and we’ll try to integrate all connected ‘Things’ into our platform. We will continue to stay true to our core tenets.”
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DIGITAL DISRUPTION IN A DATA DRIVEN WORLD WRIT TEN BY
DA LE BENTON PRODUCED BY
CR AIG DANIEL S
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RADIUS NETWORKS
Marc Wallace, CEO and Co-founder of Radius Networks, talks digital disruption in a data driven world
I
n an increasingly data driven world, businesses are identifying ways to unlock
new opportunities and markets as they turn to data to reach their digitally enabled customer bases. US-based 124
Radius Networks works with major brands to capture and utilize proximitybased data in order to reach the right people at the right time. As businesses continue to seek new and more innovative ways to use data, Radius Networks Customer Location Platform, which includes tableside and curbside service, asset tracking, and proximity cloud analytics, fits right at home in the current business landscape. However, as co-founder and CEO Marc Wallace explains, bringing disruptive technologies to market is no small feat. “The real challenge that we faced was from an R&D perspective. We were building a very new technolJANUARY 2019
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Engineer and Support meeting (left to right: Jason Wieringa, Brian Cabrera, Bhavin Vyas, Ami Desai, Alex Stone, Sam Kim, James Nebeker)
ogy concept, leveraging Bluetooth or wireless on mobile devices and this was a very novel thing,” he explains. “Nobody really knows how to use it or how to implement it and that caused teething problems.” Having co-founded the business with partners from previous, successful ventures in 2011, Wallace has spent the best part of his career in the technology and internet space. It was through this experience that the team saw an
Chief Technology Officer, David Helms
opportunity in using wireless signals as a means of engaging people on their w w w.gi ga bi t ma ga z in e. com
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smartphones. “You would walk into a
Over the last seven years, Radius
venue and your phone picks up a Wi-Fi
Networks has worked with major
signal and we saw that you could use
brands across the US and is active
that as an opportunity to engage and
in more than 60 countries worldwide,
say ‘welcome’ or ‘go here’,” he explains.
with more than 27 patented technol-
“That’s why we built Radius Networks.
ogy solutions within its portfolio. The
It was all formed around that initial
company’s success is clear to see,
concept of engaging with people based
but Wallace notes that the key to that
on their location and proximity to certain
success lies in the people involved,
points of interest. That was the begin-
as well as a smart approach to capital
ning of Radius Networks.”
investment. “Once we knew what we
E X E C U T I V E P R OF IL E
127
Marc Wallace Marc is a serial entrepreneur. He is the co-founder and CEO of Radius Networks, Inc., located in Washington, DC. Radius Networks is a location technology company focused on helping businesses locate, engage and transact with their customers. Prior to Radius Networks, Marc co-founded several other successful startups, such as District Taco, a Mexican-food fast casual chain in DC, where he serves as Chairman, and SwapDrive (backup.com), an online backup company acquired by the Norton division of Symantec in 2008. Before creating SwapDrive, he served at Orbital Sciences Corporation as an aerospace engineer and engineering manager across multiple successful rocket and spacecraft launch campaigns. Marc holds a B.S. in Engineering from Cornell University and a M.S. in Information Systems from George Washington University.
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RADIUS NETWORKS
were doing we developed strong expertise in the area,” he says, “but it took a number of years to really get to a productization that our customers, huge brands, could see true value in and a return of investment (ROI).” “The first four years of the company were really defined by R&D, but over the last few years we’ve moved into the operationalization phase. We are taking a product that is maturing and pushing it worldwide, so we have to be able to scale it and have third parties and partners that can sell and install the product.” 128
With a career defined by technology it would be easy for Wallace and his team to assume that partners, suppliers and potential customers will have the same understanding and knowledge of innovative technologies, but as Wallace noted previously, proximity solutions are a very novel concept. The key to working with stakeholders and obtaining their ‘buy-in’ is communication and Wallace recognises this. Radius Networks has cemented itself within the market for a number of years and can begin to point to successes and tangible value that its solutions have brought for customers. “Real dollars,” says Wallace. “We have real dollars that our technology can enable through efficiencies, savings and of course drawing customers to JANUARY 2019
“We install thousands, almost tens of thousands of locations a year, so in order to do that across the world, we need strong partnerships” — Marc Wallace, CEO and Co-Founder. Radius Networks
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CLICK TO WATCH : ‘RADIUS NETWORKS — MCDONALDS TABLE SERVICE SOLUTION’ 129
Craig Brooks and Maie Lee
their stores. We also have very solid data that can back up and highlight the ROI that we can bring.” Sales figures, through Quick Service Restaurants (QSRs) or instore delivery, are the key metrics that can speak to the impact of Radius Networks but there are also the less tangible metrics such as customer satisfaction that can really be the difference. Wallace can point to customer satisfaction increases of close to 25% over stores that do not use Radius Networks’ solutions from convenience alone and that he feels is in itself “real ROI”. Another key metric that Radius Networks w w w.gi ga bi t ma ga z in e. com
RADIUS NETWORKS
has been able to store is wastage. Through its ability to pinpoint customers and drive them through a sales process, the company is able to help businesses manage the process entirely. “Let’s look at food ordering, whether its instore or delivery,” says Wallace. “We’re able to help a business manage the process, drastically cutting waste and wrong orders in half. People are getting the right order. They’re getting their food, not somebody else’s food, and they’re getting it
After the customer places an order from kiosk, mobile, or counter, the staff can view their exact location for order delivery
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in a timely fashion so that their food doesn’t need to be thrown away. It’s very important, and a big ROI factor for a lot of those businesses.” Radius Networks is defined by data as much as it is defined by technology, and so the company collates and stores mountains of data. This inevitably raises the question of what Radius Networks is doing with sensitive data. Wallace says that the company saw a fork in the road a number of years ago in the collection of location specific data. 131 E X E C U T I V E P R OF IL E
Dan Estrada has 20 years of start-up, technology business development experience. He is the Chief Strategy Officer of Radius Networks, Inc. leading the global business strategy and expansion initiative. Prior to joining Radius Networks, Dan successfully executed the worldwide channel distribution strategy for cloud service start-up, SwapDrive, from the company’s inception through its acquisition by Symantec for $123 million. Post SwapDrive acquisition, Dan successfully led the worldwide business development efforts for Symantec for the launch of Norton Online Backup, and served as VP, Business Development for SnappCloud, a leading White Label App & Content Delivery Platform for PC & Tablet OEMs. Dan is currently an advisor to several early stage companies.
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RADIUS NETWORKS
“It can be very personalized and so we decided very early on not to aggregate personal data and sell it to third parties that were not related to our clients,” he says. “We work directly with the brands, and we will provide data back to those brands almost on a pass-through basis – rather than storing data long term on our systems that are related to their customers. “We will honor their relationship directly with their customers. When end customers are using our solution through one of our clients, they can be assured that whatever agreement they have in place from a privacy 132
standpoint – we honor that. That is all part of the GDPR system, so we follow that standard.
“We like being the center of expertise that our customers can turn to in order to give them an idea as to where the wind's blowing with regards to technology” — Marc Wallace, CEO and Co-Founder. Radius Networks JANUARY 2019
Customers can place an order while on-the-go and opt to dine-in, pickup in-store, or pickup curbside.
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That’s how we operate and we don’t plan on changing that.” Working with clients in more than 60 countries, Wallace recognizes the importance of a trusting client relationship and being able to provide tailored solutions that fit different countries and different market dynamics and demands. To this end, Radius Networks has dedicated teams assigned to its biggest brand partners that work directly with them and are “embedded on site”. “It’s all about dedicating resources to that client and allowing them to focus directly on what their customer needs,” he explains. In this regard, the way in which Radius Networks goes above and beyond to provide additional services and give value to the client proves crucial. Despite its product offering, Radius Networks is not a ‘call us if you need us’ hardware company; it differentiates itself in the way it provides its solutions as a service. The company will install a solution, provide further solutions and then provide a service of services on that solution ranging from maintenance, monitoring analytics and feedback. “It’s similar to if you’re getting cable at your house,” says Wallace. “You get a set-top box. It’s hardware, but you’re paying a monthly subscription for the service that will be maintained and updated. That w w w.gi ga bi t ma ga z in e. com
133
RADIUS NETWORKS
134
translates to real-time data that we
When working with some of the bigger
obtain from the field that allows us to
clients in the market, whose ability to
understand how the system is being
take solutions to market is measured in
used and then be able to optimize other
years, Radius Networks has to continu-
processes around that.”
ously bring innovation to the table in
As the market leader in an ever-
order to succeed. “We’ll work with them
evolving technology landscape, Radius
and say, ‘Okay, here’s what’s next, here’s
Networks must ensure that its offering
what’s three years down the road or
continues to be at the very forefront of
five years down the road’, and bringing
the latest technology trends. Wallace
it to them so that they can get it into the
says that the company’s technology
pipeline early and start to mature the
and ability to implement solutions must
product, because it will take years to
always be years ahead of its customers.
get that out,” he says.
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With Radius Networks location technology, the customer can simply drive to the store and have their groceries delivered directly to them, no action required.
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E X E C U T I V E P R OF IL E
Rebecca McFarland a creative and experienced marketing and event specialist with a honed expertise in branding and design. She is currently the Vice President of Marketing at Radius Networks, located in Washington, DC. She leads all marketing initiatives, including branding, design, product promotion, strategy, and advertising. Prior to joining Radius Networks, Rebecca was the Head of Marketing and Associate Publisher at Washingtonian Magazine, where she drove profitability through new business initiatives, multi-platform campaigns, events, and community partnerships.
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RADIUS NETWORKS
“We like being the center of expertise
Nixdorf, Coates Group and Fujitsu to
that our customers can turn to in order
assist with service support and delivery.
to give them an idea where the wind’s
“We install thousands, almost tens of
blowing on the technology.”
thousands of locations a year, so in order
Despite considerable success over
to do that across the world, we need
the last seven years, Radius Networks
partnerships to do that,” says Wallace.
hasn’t been able to achieve this growth
Technology partners have also been
alone and Wallace can point to key
instrumental in enabling the rapid
strategic partners that the company
development and deployment of the
has worked with that have been funda-
products, such as AOPEN and EM
mental in allowing the company to
Micro. “They have been key, not only to
achieve. Radius Networks has called
provide the right solution but helping
upon the support of NCR, Diebold
us to evolve the solution.”
136
Left to right: Craig Brooks, Maie Lee, Joe Grajewski, Ken McInerney, Amanda Wilson. JANUARY 2019
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CLICK TO WATCH : ‘RADIUS NETWORKS — CUSTOMER LOCATION SOLUTION’
The industries of today will not be the
requirements, we have the ability to
same as the industries of tomorrow
quickly and nimbly do that,” he says.
and technology will continue to steer
“We control the entire stack of our
that evolution. Radius Networks must
solution and we have incredible experi-
be ready for whatever tomorrow will
ence in this space. That’s a huge
bring for its clients. Wallace believes
advantage that we have over anybody
that the hospitality market will become
else that is either in the market or
key in the near future for the company
trying to get into the market.”
and that Radius Network’s approach to service, as well as its experienced team, is what will be fundamental in order to remain as the market leader. “If we need to react to the increasingly varying customer demands or w w w.gi ga bi t ma ga z in e. com
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JANUARY 2019
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Truliant Federal Credit Union
A MEMBER-CENTRIC DIGITAL TRANSFORMATION WRIT TEN BY
ANDRE W WOODS PRODUCED BY
ANDY TURNER 139
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TRULIANT FEDERAL CREDIT UNION
WE SPEAK TO CIO SANDEEP UTHRA ON A MEMBERCENTRIC GOAL OF DIGITAL TRANSFORMATION THAT IS ACCELERATING OPERATIONAL EXCELLENCE AND BUSINESS GROWTH
T
ruliant Federal Credit Union, a 66-yearold financial institution, has a singular and important mission: to improve the lives
of its members. According to Sandeep Uthra, Truliant’s chief information officer, the credit union 140
focuses on helping members make decisions that improve and help manage their financial lives. Unlike for-profit financial institutions, Truliant stays away from pushing products on its members. “We are a different kind of company,” he says. Truliant has 230,000 members and assets in excess of $2.3bn and provides individuals and small businesses with products, services and guidance to reach their ‘life’s goals’, including checking accounts, online and app banking, auto buying, certificates and business/financial advice, and auto and home loans. According to Uthra, Truliant’s USP is its member-centric approach. “First and foremost, we are a not-for-profit organization,” Uthra said. “That’s the biggest difference between us and other banking institutions. But, more so, our goal is to improve each of our JANUARY 2019
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141
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TRULIANT FEDERAL CREDIT UNION
Hybrid IT Solutions
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Professional Services
41 data center campuses. One dependable network. 888.552.FLEX
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Flexential.com
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143
“ OUR CEO AND PRESIDENT TRULY UNDERSTAND HOW TECHNOLOGY’S GOING TO REALLY HELP TAKE US FORWARD IN MEMBER SERVICE” — Sandeep Uthra CIO, Truliant Federal Credit Union
members’ lives, by working as trusted partner or provider of the right guidance to achieve their financial aims,” Uthra explains. “While traditional banking is more about rates and fees, all of our products and policies are consumer, not market, driven. We put people before profit. We are member-centric. We’re not just here to make money. This helps our members create financial security within their own aspirations. ”
IN THE BEGINNING Uthra joined Truliant in late 2016 as CIO. He was charged with helping shepherd the w w w.gi ga bi t ma ga z in e. com
TRULIANT FEDERAL CREDIT UNION
144 E X E C U T I V E P R OF IL E
Sandeep Uthra Sandeep has over 20 years of experience developing and executing information technology (IT) strategies, including serving in executive roles in the financial services space. A native of New Delhi, India, Mr. Uthra has served in global IT leadership roles in product, consulting and financial corporations in Asia, Africa and the United States. Most notably, Mr. Uthra was Senior Vice President, Business Solutions Technology Executive at Bank of America. He leads Truliant’s Enterprise Service Delivery, Enterprise Architecture, Application Development, Systems Operations, Technology Support Services, Infrastructure Services, Information Security, and Telecommunications teams.
JANUARY 2019
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145 strategic direction for Truliant’s overall
logical solutions to achieve those goals.
technology landscape and to help
We really tailor our offerings as per our
drive its technology transformation.
members’ needs to provide a top-notch
“As a trusted advisor in the company,
member service.” Truliant targets
I needed to get us to a point where
locations where they are needed most
we better understood business and
and still operates a traditional guidance-
members’ needs as per our company’s
based approach. “We’re very big on
objectives.”
face-to-face interactions. We don’t
Uthra’s highly strategic role was to
want to remove the humanity in front of
help develop a roadmap that would
us. We will always keep face-to-face
achieve Truliant’s business plans by
interactions.”
leveraging technology. “As part of the Chief Planning Team, I’ve worked hard
THE HUMAN TOUCH
to understand business needs as well
While human-centric guidance is at the
as those of our members with techno-
heart of Truliant’s approach, it is adopting w w w.gi ga bi t ma ga z in e. com
TRULIANT FEDERAL CREDIT UNION
“ I HAVE OTHER COMPANIES LIKE MERIDIANLINK WHO SUPPORT US FROM A LENDING PLATFORM STANDPOINT AND THEN SECURITY PARTNERS SUCH AS FLEXENTIAL WHO PROVIDES HOSTING CAPABILITY” 146
— Sandeep Uthra CIO, Truliant Federal Credit Union
more technologically advanced processes to better prepare for the future of banking. “Members are changing the way they interact with financial institutions,” he explains. “I think we all know that these days people compare our sector with companies like Amazon, right? They want us to be simple and nimble – like shopping on Amazon. This demand is driving us to create a simpler, more nimble and innovative personalization for all members. The consumer experience is king.” “On the other hand, data is at the consumer’s fingertips from many external sources to compare product or services so they are well informed. It is in our best interest to know consumers’ personalized needs in a faster and agile way, to provide them with the best in-class experience. To make all this happen, we have focused on technology architecture, because speed is the new currency in financial institutions. These days, technology architecture must be simple enough to support integrated channels and with an alignment of data to understand or predict members’ needs. “Simplification and Personalization is the game here,” Uthra explains. “Financial institutions should work to simplify their technology landscape and leverage microservices or APIs (application programming
JANUARY 2019
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CLICK TO WATCH : USING THE TRU2GO APP 147 interfaces), to support faster and more
index of processes and technology,
nimble integration with cutting-edge
which gave Truliant a direction for
products and services.”
future investment to achieve its goal of simplification and optimization of the
DIGITAL ECOSYSTEMS
members’ journeys/interactions. “Our
When Uthra joined Truliant Federal
vision is to enable consumers of our
Credit Union, he hired an enterprise
technology with a simple, faster and
architect to help build out business
personalized experience. “Our CEO
technology ecosystems to understand
and President truly understand how
dynamics around business units,
technology’s going to really help take
functions, processes and underlying
us forward in the personalized member
technology. He then sat with internal
service.
teams and critical partners to identify
“We know that it’s important to adapt
friction between those ecosystem
and evolve quickly in line with the
constructs. This resulted in a maturity
fast-paced changes in today’s financial w w w.gi ga bi t ma ga z in e. com
TRULIANT FEDERAL CREDIT UNION
services landscape. Our goal is to create an impactful, best-in-class digital journey that is both dynamic and personal, and maintains an authentic human connection,” says Truliant President Todd Hall. The other important factor in Truliant’s technology transformation is partnership with fintechs and product companies for technology transformation. “Our strategic partners support us to achieve our vision. Companies like Fiserv who support our core banking platform perspective. MeridianLink provides lending capabilities and 148
Flexential provides hosting capability. Veristor enables us with virtualized environment, to aid better manageability and performance and security of infrastructure – because it’s not just about spending or investing in infra-
the near future: simpler, faster and
structure, it’s more about how to optimize
personalization. If I’m a member, and
that in terms of performance and security.
I need a home, normally I would reach
Palo Alto Network really helped us to
out to a realtor or a mortgage or lending
safeguard our technology and infra-
company. We reach out to the builder
structure and Secureworks provides
and to many other folks to achieve that
information security capabilities.”
goal for our family. But an ecosystem approach asks: ‘Why can’t we bring all
FUTURE TRENDS
these kinds of players into same
For Uthra, the future of the industry lies
ecosystem and make it happen? So, as
in ecosystem-driven personalization.
a customer or a member, I will just reach
“I see these three things happening in
out to a bank or financial institution like
JANUARY 2019
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34 Number of office locations
$2.3bn Approximate value of assets
1952
Year founded
Truliant and say, ‘I need a home.’”
really fortunate to feel that I’m part of
Uthra also sees increasing leverage
this high technology team that brings
of APIs for greater integration in sector
those kinds of innovations together.”
technology with many third-party or indirect product companies. I see artificial intelligence and data playing a big role. Data is going to provide integration value because it will predict and say what our customers or members are asking and at what point in time. “I take pride in leading this vision because of our people and culture. I’m w w w.gi ga bi t ma ga z in e. com
149
150
Changing mindsets through technology transformation WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
ANDY TURNER
JANUARY 2019
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B R AY I N T E R N AT I O N A L , I N C .
Brindesh Dhruva, Chief Technology Officer of Bray International, discusses the company’s ongoing technology journey
B
ray International, Inc. was founded in 1986 with a customer-centric objective to become the preferred flow control
partner. Bray’s global footprint and distribution networks, along with a comprehensive line of innovative flow control solutions, has enabled us 152
to become an international industry leader. Thanks to unrelenting commitment to quality and customer service, clients around the world have made Bray their trusted partner. After 30 plus years, Bray’s focus hasn’t changed. Bray International, Inc. remains your local flow control partner with a global reach. Our customers face the day-to-day prospect of operating in increasingly extreme conditions in a safe and environmentally responsible way. The product technologies and solutions that we offer must maintain pace with these demands,” states Brindesh Dhruva, Chief Technology Officer. Since joining Bray International in early 2013, he has been tasked with steering the company’s technology transformation, creating innovative solutions and products that its customers can rely on. JANUARY 2019
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Raymond Technical Center CAD design facilities
Holding a Doctorate from Yale in Engineering and having previously worked in the Upstream O&G Industry for over 13 years across a variety of roles such as Marketing & Technology Manager prior to joining Bray, Dhruva believes his early engineering experiences in developing products with a high demand on reliability and performance helps him in his current role as CTO of Bray. “Over the past several years we have been able to develop world-class solutions and products. In doing so, we have utilized, for example, additive manufacturing techniques for control valve applications and smart senw w w.gi ga bi t ma ga z in e. com
153
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“ It’s about putting together a global team that has the right capabilities and infrastructure that allows us to develop, validate and produce products that exceed customer expectations” — Brindesh Dhruva, Chief Technology Officer of Bray International
sors to develop real-time monitoring.” Just over 30 years ago, the Founders of the company – Craig Brown and Frank Raymond revolutionized the global rotary flow control market. Today, Bray provides global distribution and manufacturing with locally available service and expertise for a variety of flow control products. Bray’s products have extensive application in a wide range of critical services. These include butterfly valves in cryogenic conditions for an LNG application to Severe Service Ball Valves in very high temperature & corrosive condi-
JANUARY 2019
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Bray USA Facility
155
E X E C U T I V E P R OF IL E
Brindesh Dhruva Brindesh is currently Chief Technology Officer for Bray Internationals Inc., responsible for Global R&D and Product Management. Brindesh holds a Ph.D. in Engineering & Applied Sciences from Yale University and has over 20 years of experience in Technology & Marketing developing high-tier products and delivering commercial success.
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B R AY I N T E R N AT I O N A L , I N C .
“ As long as we understand our customer’s needs and as long as we understand the moving technology pieces, we will continue to grow as the technology partner of choice” — Brindesh Dhruva, Chief Technology Officer of Bray International
156
JANUARY 2019
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tions in a refinery application. Bray’s extensive product portfolio includes resilient seated and high-performance butterfly valves, critical service triple offset valves, floating and trunnion ball valves, metal seated ball valves, actuators, and control accessories to enable smart technology. The application of this portfolio is even more diverse and includes circulating water, flue gas desulfurization, demineralized water, fuel oil (fire safe), service water, steam, fuel gas, potable water, water/ glycol, and various other compounds. Such rapid progress has been the result of Bray’s commitment to its research & development (R&D) and operations in the US, India and China where its main Manufacturing, Engineering and R&D Labs are located. Expanding similar capabilities in Latin America, Europe and Australia has also been an integral part of Bray’s growth. It’s this visionary commitment, which Dhruva affirms, has been important in building the foundations for long-term success. “Over the last several years we have reinforced the right technical teams by strengthening the link between manufacturing, engineering and sales. We have also reinforced the w w w.gi ga bi t ma ga z in e. com
157
B R AY I N T E R N AT I O N A L , I N C .
158
“ I’m a firm believer that good product introduction doesn’t happen accidentally. It comes as a result of a very deliberate approach of bringing products to market” — Brindesh Dhruva, Chief Technology Officer of Bray International
right product development process which starts with the voice of our customers and ends with their satisfaction. It’s about putting together a global team that has the right capabilities and infrastructure that allows us to develop, validate and produce products that exceed customer expectations in terms of reliability and performance,” says Dhruva. “That’s the way we operate! That’s what defines the products, technologies and services we aspire to continuously provide.” Indeed, Bray continues to evolve and has transformed itself into a technology company that can deliver highly customized, highly engineered products and services for a wide range of severe applications. Dhruva points out that these types of transformations start at the top and percolate down. “Bray has a rich history, full of achievements, which we are all very proud of, but the Founders of the company continue to see an even brighter future in terms of growth and technology innovation.”
INTRODUCING NEW PRODUCTS TO MARKET Recent technical and commercial successes include Tri Lok – Triple Offset Butterfly Valve, Series 98 Scotch Yoke Pneumatic Actuator, M1 Severe Service Ball Valve, S19 Segmented Control Valve and numerous other valves, actuators and controls accessories. The product capabilities along with global Applications JANUARY 2019
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CLICK TO WATCH : WORKING FOR BRAY INTERNATIONAL 159 Engineers that understand the cus-
design decisions at Bray are made in
tomer’s challenges enable Bray to pro-
line with customer requirements and
vide not just good products, but good
with product reliability, manufactur-
solutions for our customer’s needs.
ability and product cost in mind. “Our
The technical success of our prod-
Engineers must understand the dif-
ucts relies heavily on the design and
ference between investment cast-
validation steps within the Bray Prod-
ing and sand casting…and they must
uct Development Process all of which
understand how tight tolerances and
conform to ISO 9001 standards. Bray’s
surface finish requirements impact
Global Technology presence spans
manufacturability (costs) just as much
multiple R&D locations around the
as product performance” says Dhruva.
world including India, UK, Brazil and
The qualification of products program
in Houston’s Bray Raymond Technol-
includes not only design validation
ogy Center – proudly named after one
but also validation of the manufactur-
of its founders, Frank Raymond. The
ing process to be able to produce w w w.gi ga bi t ma ga z in e. com
B R AY I N T E R N AT I O N A L , I N C .
“ It’s important we keep up with what our customers face today, but also respond to the technology trends in the industry that will take them to the next level tomorrow” — Brindesh Dhruva, Chief Technology Officer of Bray International
their input & influence into the design process and ensuring good market introduction. “I’m a firm believer that good product introduction doesn’t happen accidentally. It comes as a result of a very deliberate approach of bringing products to market,” explains Dhruva. “That means we engage our customers very early on during development to ensure we get the requirements right. It means we understand the voice of the customer, the customer’s needs and then incorporate those findings into our product requirements and our service & sales organization.”
160 product with consistent high quality. Commercial success doesn’t come
With industry 4.0 driving the manufacturing industry forward, companies
serendipitously, even for great prod-
such as Bray rely on innovation and the
ucts. It begins during the early phases
ability to understand the latest trends
of a product development process in
to leverage & provide products & solu-
identifying customer needs, getting
tions. “It’s important we keep up with
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161
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B R AY I N T E R N AT I O N A L , I N C .
1986
Year founded
2,500
Approximate number of employees
162
what our customers face today, but also respond to the technology trends in the industry that will take them to the next level tomorrow. There are two examples that I would highlight here. One is on additive manufacturing where we’ve worked through a super partnership to 3D-Print metal components in a control valve application to significantly improve flow performance by incorporating design features that aren’t possible with traditional casting and forging processes.” says Dhruva. “The second example involves develJANUARY 2019
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163
oping predictive monitoring with near
customer’s needs and as long as we
real-time measurements on valves
understand the moving technology
that will provide performance diagno-
pieces, we will continue to grow as the
sis in a proactive and predictive way.”
technology partner of choice. Bray has the people, processes and the
FUTURE PLANS
technology infrastructure to meet our
With Bray several years into their
customer’s most difficult needs.”
technology transformation journey, Dhruva believes the company’s ability to quickly evolve to address the growing market needs and leverage technology trends is key to continued and sustainable growth. “As long as we understand our w w w.gi ga bi t ma ga z in e. com
164
JOHNSON BROTHERS Enabling organic growth through digital transformation WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
ANDY TURNER
JANUARY 2019
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165
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JOHNSON BROTHERS
In the alcohol distribution business for over 65 years, Johnson Brothers has built a digitally enabled workforce that delivers outstanding customer service each and every time
A
lcohol is big business. Amounting to more than 16% of total beverage volume across the US, total alcoholic beverage sales
in 2017 exceeded US$234.4bn, a figure which continues to rise. While beer remains a key staple 166
with 185.57mn barrels produced in the US in 2017, demand for wine and spirits is also on an upward trajectory. As US consumers continue to drive up sales across the industry, opportunities have ascended for strong, market-savvy players to take full advantage and transform their service offerings. Providing exceptional services to its customers and supplier partners since 1953, wine, spirits and beer distributor Johnson Brothers has a long-term vision to leverage their longstanding values of excellence and team work to drive innovation as it enters new markets. Proud of its strong heritage in Minnesota, the business has acquired a number of businesses, launched a new distribution center and strengthened its supplier relationships as part of its ongoing strategy to enable organic customer growth.
JANUARY 2019
Our warehouse and delivery team members use technology to sort and manage product
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Transforming IT for Resilient BusinessTM JANUARY 2019
NORTH AMERICA
A Johnson Brothers truck in front of our warehouse
169 Michael Johnson, Chief Executive
of the best suppliers and customers
Officer, and Todd Johnson, Chief
in our industry. Today, technology is
Operating Officer are the Johnson
critical to our business, from providing
Brothers who run the company that
tools to our sales consultants, sharing
was founded by their father Lynn.
market trends with our customers, as
Todd describes how technology
well as improving the efficiency of our
strategy will enable growth, “My dad
distribution operations.”
started the company in 1953. He
Bringing this strategy to fruition at
bought a used truck, rented a small
Johnson Brothers is Vice President of
warehouse and opened his doors for
IT, Tim Dokken. Working for established
business. There was no technology
Fortune 500 organizations, such as
back then – everything was done by
American Express Global, Thrivent
hand. Over the next 65 years, we’ve
Financial and Merrill Corporation, with
grown across multiple states and
a career spanning accounting, finance,
developed partnerships with some
consulting and all aspects of technolw w w.gi ga bi t ma ga z in e. com
JOHNSON BROTHERS
Warehouse employee filling customer orders
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E X E C U T I V E P R OF IL E
Tim Dokken Tim is a passionate, senior technology executive with over 24 years of financial services experience, delivering solutions to businesses and consumers globally. He is currently serving as the Vice President — Information Technology at Johnson Brothers in St. Paul, MN. Previously, he was the Chief Technology Officer of LiveGiveSave, Inc., whose mission is to help people through their everyday spending to effortlessly give to causes they care about and save for their future.
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“ The focus was to support the infrastructure side: our data centers, servers, all of our networking, end user computing, IT service delivery, etc. It’s really the operational side of IT” — Tim Dokken, Vice President of Information Technology 171
ogy including leading large IT moderni-
We’re moving to a brand-new data
zation programs, as well as launching
center which will go live in January
a technology start up. Dokken’s passion
with an entirely new production
to develop companies from the ground
environment. That’s literally from the
up led him to join Johnson Brothers.
ground up. Storage, compute, net-
“The focus was to support the infra-
working, plus we’ve implemented a
structure side: our data centers, servers,
new IBM Power Series for our ERP
all of our networking, end user comput-
system. We have experienced a
ing, IT service delivery, etc. It’s really the
dramatic amount of growth in the last
operational side of IT. Everything that
year and part of what we’re doing is
all the applications and data run on,
to prepare the organization for future
that’s what I own,” he says.
growth and ensure that technology
“A lot has changed in the last year.
is an enabler and not a barrier.” w w w.gi ga bi t ma ga z in e. com
JOHNSON BROTHERS
“ Our new production environment is at least 10-20x faster to accommodate for growth and the ability to process more business” — Tim Dokken, Vice President of Information Technology 172 Moving what had previously filled
and most importantly, speed.
an entire room in its former data center
“Our new production environment is
onto two racks in its new environment,
at least 10-20x faster to accommodate
Johnson Brothers has invested in a
for growth and the ability to process
hyper-converged infrastructure, and
more business. For example, our
has embedded cutting-edge tech-
backups for our ERP system used to run
nologies, whether compute, all flash
all night long on Sunday night and take
storage, unified backup or network,
everything offline. Now we’re down to
including a full SD-WAN. The compa-
less than two hours and that’s not even
ny has developed strong relationships
on our new IBM Power 9 Server yet,”
with Dell, Nutanix, Datatrend and
adds Dokken.
others in turning its three-tier archi-
The complete modernization of its
tecture into a state of the art hyper-
technology stack remains an important
converged infrastructure, delivering
part of its strategy, leading Johnson
optimal compute and storage capacity,
Brothers to leverage the capabilities
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173 of its vendors. Putting workloads into
Cloud technology has also been
Azure for sales applications and
adopted to support both local and
Amazon Web Services (AWS) for
remote workers as the business contin-
offsite storage, the business has
ues to expand, becoming one of the
sought to ensure both resiliency and
fastest and most vital investments
redundancy, as well as recoverability
across the business. Utilizing sales
through offsite data storage. Investing
tools and platforms from Inventive
in Microsoft’s entire suite of security
and Dimensional Insights has enabled
tools and capabilities, as well as
our mobile Salesforce to effectively
third party products such as Cylance
serve our customers.
has also formed part of its ‘defense
“Cloud has remained a key strategy
in depth’ strategy. All of this has
for growth, where our sales team are
worked to support Dokken and his
now entirely cloud enabled, running
team adhering to its internal slogan:
all data and applications through both
‘Always on, Always fast, Always secure.’
computers and iPads.” Promoting full w w w.gi ga bi t ma ga z in e. com
JOHNSON BROTHERS
C OMPA N Y FA C T S
• Amounting to more than 16% of total beverage volume across the US, total alcoholic beverage sales in 2017 exceeded US$234.4bn • Johnson Brothers has invested in a hyper-converged infrastructure, utilized solid state storage and has embedded cuttingedge technologies 174
• The company has developed strong relationships with Dell, Lenovo, Nutanix and others, turning its threetier architecture into a hyper-converged infrastructure • Putting workloads into Azure and Amazon Web Services (AWS) for offsite storage, the business has sought to ensure both resiliency and redundancy, as well as recoverability through offsite data storage
JANUARY 2019
Technology improves efficiency and monitors processes in our warehouses
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November 2018 charity food packing event where 70 employees packed more than 21,000 meals for local children and families accessibility for customers who wish
on what creates the most business
to speak to the sales team, anytime,
value and leaves the other things to
anywhere will allow the business to
the SaaS providers,” explains Dokken.
deliver services in a rapid fashion,
Nonetheless, the most important
removing the constraints of an onsite
investment throughout the digital
data center.
transformation of Johnson Brothers
“We’re expanding many of our
has been its team. The decision to
applications, so our core systems are
move away from legacy technologies,
cloud delivered versus having to host
overhaul the entire production environ-
those in our data center. That frees
ment, move to a new data center and
up our team to focus on the systems
rebuild the network has been met with
which really drive business value. On
excitement, and provided new opportu-
the corporate systems, it’s a way to
nities for the personal and professional
make sure that our resources can focus
growth for team members. w w w.gi ga bi t ma ga z in e. com
175
JOHNSON BROTHERS
176
St. Paul Warehouse and Headquarters
“ My focus is to continue creating opportunities for the team. If I’m gone tomorrow, my objective as a leader is that they will be self-sufficient and will provide a seamless service the business can be proud of” — Tim Dokken, Vice President of Information Technology JANUARY 2019
“The team are the ones doing the heavy lifting; the most significant role I’ve played is to really clear the deck. I saw an opportunity and helped craft a vision, but the team is responsible for its success, looking at how to achieve this vision, the technology to use, as well as evaluating things like ‘what should our recovery strategy look like’ and ‘what data center should we run out of?’ So, they’ve been instrumental in these decisions, which has been very engaging and motivating. My team
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with outside resources. At the same time, making sure our employees get to work on the high-quality work is a core strategy.” Dokken went on to say, “My focus is to continue creating opportunities for the team. If I’m gone tomorrow, my objective as a leader is that they will be self-sufficient and will provide a seamless service the business can be proud of. The team can pick up the ball, move forward, are enabled and ready, and are open to new opportunities to take the business forward.” Clearly demonstrating that technology is an enabler and not a barrier at Johnson Brothers, Dokken remains keen to promote its internal slogan is really proud of their work,” he states
‘Always on, Always fast, Always
with pride.
Secure’, which will see the business
Making a conscious decision
reach new heights in the upcoming
to partner with a consulting firm or
years and ensure its longevity and
provider has also proven advanta-
competitiveness across the industry.
geous in enabling employees to work
“As we continue to grow, we are
on systems and technologies that
thrilled that our IT infrastructure is
drive the most business value without
ready to support our business and be
burdening the team and has allowed
a key part of our company’s success,”
the company to reach some of its key
added Johnson.
goals in a shorter amount of time. “In terms of core engineers, I have a small team so we have to supplement that w w w.gi ga bi t ma ga z in e. com
177
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Blending world-class digital transformation and science WRIT TEN BY
L AUR A MULL AN PRODUCED BY
LE WIS VAUGHAN
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MET OFFICE
Blending scientific expertise and technological prowess, the Met Office’s latest digital transformation is showing its peers how it’s done
I
n the ‘60s, George Moore made a prediction that would set the pace of today's digital revolution. In a theory commonly dubbed as Moore’s Law, he
forecast that the overall processing power of computers will double every two years or so. For the Met Office – the United Kingdom’s national weather service and climate agency – this prediction
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has proven to be a pertinent one. Processing vast amounts of climate and weather data from across the globe, Charles Ewen, CIO at the Met Office says that IT plays a critical role at the organisation, noting that his team aim to “provide world-class technology to support world-leading science”. Without computers, weather forecasting as we know it would simply be impossible. Technology has played a pivotal role in understanding the weather for decades. In the 50s, the Met Office acquired its first electrical desk calculator and fast forward to today and the organisation have implemented the Cray XC40 supercomputer, or High-Performance Computer (HPC). At around 15 times the size of its predecessor, this mammoth machine is one of the most powerful supercomputers in the world, capable of completing 14,000trn calculations per second. JANUARY 2019
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EUROPE
“ We provide worldclass technology to support worldleading science”
— Charles Ewen, Chief Information Officer, Met Office 183
Ewen says that this supercomputer
assumptions and from that we can
is instrumental in weather forecasting
provide information about probabilities
and climate prediction by making it
and likelihoods.”
possible to increase fidelity and resolu-
Weather forecasting, Ewen explains,
tion and provide more complete Earth
is an intricate balance of science and
System models. “The supercomputer
technology on a vast scale. At the Met
contributes an awful lot because you
Office, the organisation has been using
can run models at finer resolutions with
innovations like data analytics for
a lot more complexity,” he says. “They
decades. “We’ve been working with
take into account more of the physics
data analytics at a large scale for many
and chemistry that is involved and you
years although we typically don’t call
can operate them over longer timescales
these roles ‘data analysts’,” affirms
and run simulations more frequently.
Ewen. “We have chief meteorologists,
We can also run the same model
for example, and their job is to look at
a number of times with some different
what the computer simulations say and w w w.gi ga bi t ma ga z in e. com
MET OFFICE
have some type of qualitative, contex-
ing with technology giants such as
tual or impact assessment of what that
Amazon Web Services, Google and
data means. Our team have a unique
Microsoft. “It’s still a journey,” reflects
blend of skills in data science, statistics,
Ewen. “We certainly recognise that the
computer programming and more.”
move to the cloud gives us a combination
The sheer size of the Met Office’s
of scale, elasticity, affordability and the
data pool cannot be overstated and
capability that we need to support our
as a result, the organisation shrewdly
world-class science teams.” Right now,
decided to shift to the cloud, partner-
the cloud does not fulfil the needs of its
184
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CLICK TO WATCH : ‘WHY DO WE NAME STORMS?’ 185 core simulations however as Ewen comments, “there is a lot of technology needed to convert those core simulations into the thousands of contextual forecasts and services that we produce every day”. One of the most fundamental items in the Met Office’s toolkit is its simulations. Complex and state-of-the-art, this technology applies scientific knowledge to predict future atmospheric conditions across the globe using observations of the current weather captured from land, at sea, in the air, and from space. Ewen likens w w w.gi ga bi t ma ga z in e. com
MET OFFICE
this to predicting a coin toss. Based on averages or statistics, you could contend that it’s a 50/50 chance that it will be either heads or tails, whereas the Met Office is trying accurately to simulate what side the coin will land on. “A statistical approach to weather forecasting doesn't give you the infor– mation you need because you want to know about anomalies, you want to know about extreme weather and you want to know about intensity. You don't want to know about averages. Essentially that is what the climate analysis 186
tells you but a weather forecast is about the specifics of a given time and place.” For many citizens, the weather fore– cast informs many day-to-day decisions like whether they should cut the grass tomorrow, what they should wear or how they should travel. It’s also vital for industries, allowing them to mitigate safety risks like preventing people from working outdoors in hazardous cond– itions. Emerging technologies like Artificial Intelligence (AI) offer the potential to take one step further. “I can be somewhat unpopular at work when I say that few people actually want a weather forecast,” Ewen says “more frequently, people or increasJANUARY 2019
“ The supercomputer contributes an awful lot because you can run models at finer resolutions with a lot more complexity” — Charles Ewen, Chief Information Officer, Met Office
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MET OFFICE
ingly machines are trying to make a decision that is only partly about the weather. We are actively researching to understand how to better communicate the weather and future climate to these systems. Human beings are constrained in terms of how more statistics help better decision making, AI does not have that particular constraint,” he says. Elsewhere, by applying Google Deep Mind, the office is hoping to research the realm of ‘nowcasting’ a form of weather prediction which uses radar 188
returns and other observations to show how the weather may apply to more short-term localised regions. “If you watch this morning’s weather forecast and it says there’s likely to be heavy showers at 10 o’clock you might look out your window at that time to see no rain. It might be a very near miss spatially; it might rain in 20 minutes but not exactly at 10 o’clock. Nowcasting, as opposed to forecasting, applies statistics to see how the weather may evolve in the short term.” Whilst technology plays a key role in the Met Office’s digital transformation roadmap, Ewen asserts that it’s the people that are at the crux of its JANUARY 2019
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success. As such, a key part of the organisation’s strategy revolves around people. “Within our strategy we have a plan to attract retain and develop our people and so it’s clearly very important. We talk about mastery, autonomy and purpose. Mastery refers to developing the unique blend of skills that we need so we invest strongly in training our people,” he says. Indeed, Met Office has developed a variety of new apprenticeships and works to broaden its relationship with academic settings. “We also try to create an exciting environment that people want to work in,” he adds. The Met Office has worked hard to forge a work culture which strives to do more. The biggest barrier to continuous improvement? Sparking a cultural shift whereby people recognise the need to change. “That can be tricky when you’re a world leading organisation at the top of its game,” admits Ewen. “However, because we’re an organisation full of bright and able people we can see where some of the future challenges and opportunities lie. Because of that,
Charles Ewen, Chief Information Officer Met Office
it's important to start to change ideally ahead of when you really need to, which is what we've been trying to do.” w w w.gi ga bi t ma ga z in e. com
189
MET OFFICE
One example of this lies at the Met Offices fingertips – its supercomputer. As Moore’s Law dictates, computer processing power will only continue to expand over the coming years and the Met Office needs to be ready to tap into the potential of future supercomputers. “Because the of scale our operations are so large, it can be difficult to predict what the technology environment will look like in the future. Take supercomputers, for example, we’re always looking five to ten years in the future. It’s important to realise what you need to change now, to be lucid and clear about what the target destination looks like.” 190
By all accounts, cutting-edge science and technology are the bread and butter of the weather forecasting. Whether it's going to be blustery or raining, the blend of the two means that we can predict the weather more accurately than ever. “Every ten years, the weather forecast has improved with the same accuracy being available a day earlier,” concludes Ewen. “In other words, a four-day weather forecast is as accurate as a threeday forecast was ten years ago. That shows the rate of progress and technology undoubtedly plays an important part of that.”
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“ We certainly recognise that the move to the cloud gives us a combination of scale, elasticity, affordability and the capability that we need to support our world-class science teams”
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— Charles Ewen, Chief Information Officer, Met Office
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INEA Utilising technology in the telecoms sector WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
JA MES PEPPER
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INEA
Management Board Member and Chief Operating Officer of INEA, Michał Bartkowiak, discusses how his company is utilising technology amid digital transformation in the industry.
194
A
s the fastest broadband and Wi-Fi provider in Poland in 2018, INEA has achieved significant success during the last year.
Michał Bartkowiak, Management Board Member and Chief Operating Officer of INEA, believes innovation and the company’s willingness to embrace technology has been key reasons to INEA’s achievements. “We are definitely an innovative company. As a provider of retail services, we deliver the fastest broadband in the world with our flagship offering of the symmetric internet with Fibre-To-The-Home (FTTH) technology at a speed of 10Gb/s,” affirms Bartkowiak. “As an infrastructure operator, we are one of the only operators in Europe that actively opens the network we use as a services provider to other telecommunications operators.” Through providing broadband, internet, television, mobile and fixed-line telephony services, as well JANUARY 2019
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CLICK TO WATCH : #INEAGOBIG 10 GB/S
as professional services for business
that we differ from many companies
and public sector, Bartkowiak believes
because of our way of thinking. We
that INEA has become successful due
are a technological leader in the region
the company’s ability to diversify.
with a state-of-the-art infrastructure
“One of the great features of the world that surrounds us is diversity.
that we aren’t afraid to use.” With more than 250,000 customers,
Attitudes and business models of
INEA value their investments in rural
companies from the TMT sector
areas having introduced the last mile
differ from one another and a result,
network which covers over 70,000
a specific market space has been
households in rural areas within the
created for each of us, where we can
Greater Poland region. The implemen-
operate and experiment,” he explains.
tation of the network has allowed
“If we look at the telecommunications
INEA to collect data in order to better
market in Europe, it becomes evident
understand the needs of residents w w w.gi ga bi t ma ga z in e. com
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INEA
in the region. “The last mile network in rural areas enabled us to collect valuable experience, both in terms of the construction of a network in such area and the service sales potential. Now, we have a better understanding of the needs of the residents and we’re ready to expand such networks in Poland.”
MAKING SUBSTANTIAL INVESTMENTS As a leading firm in the field of fibre-optic infrastructure in the Greater Poland region, INEA has invested more than $266mn in the infrastructure during the past six years. “These were investments implemented in two areas, such as construction of fibre-optic 198
networks in the FTTH standard and reconstruction of the existing infrastructure to this standard,” says Bartkowiak. “The main projects involved the construction of a broad-band backbone network in Wielkopolska in 2013, the construction of last mile networks and the reconstruction of the infrastructure in towns and cities from Hybrid Fibre Coax (HFC) to FTTH standard.” During the past two years, INEA took part in a competition under the Operating Programme Digital Poland, conducted by the Ministry of Digitalisation in Poland and won in more than 20 regions. In order to remain a leader in the industry, INEA has made strategic decisions in order to adapt to changes in the industry. Bartkowiak affirms how vital it is to embrace the latest technology or risk being overtaken by its rivals. JANUARY 2019
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“As an infrastructure operator, we are one of the only operators in Europe that actively opens the network we use as a services provider to other telecommunications operators” — Michał Bartkowiak, Management Board Member and COO of INEA
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INEA
€100mn Approximate revenue
1994
Year founded
200
820
Approximate number of employees
“It’s of key importance to observe the
for another market challenger in the
changes happening by using technol-
industry who will force us into action.
ogy in different aspects of our lives.
We need to make decisions on our own
We have to examine how our expecta-
and try to be the leaders by assuming
tions to the products or services that
the risk of wrong decisions. Technology
we are using is changing. It’s important
becomes devalued very quickly, so
to observe the entire spectrum of
we need to fully maximise its potential.
innovations taking place in the world,”
I believe that passive waiting is the
he explains. “We can’t afford to wait
worst thing one can do.”
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201
The part of the team (from left): Krzysztof Kwiatkowski – responsible for network construction and maintenance, Marta Myszkowska – responsible for customer care quality, Tomasz Zmyślny – Head of Marketing & PR, Alicja Kakała-Szadłowska - Procurement Manager, Maciej Piechociński – Head of Sales, Krystyna Sawczuk – Head of HR and Krzysztof Marciniak – Head of IT
FORMING KEY PARTNERSHIPS
achievements. “From the perspective
During the last two years, INEA and
of the open network model develop-
Orange Poland signed agreements
ment, the contract with Orange Poland
on the wholesale access to its infra-
was a significant achievement. We
structure in the LLU and BSA model.
provided the company with our
And this is just the beginning of INEA’s
infrastructure for the sale of retail
open network strategy. Bartkowiak
services. From the perspective of the
believes the contract with Orange has
Polish market, it was the first contract
been one of the company’s biggest
of its type and has become an inspiraw w w.gi ga bi t ma ga z in e. com
INEA
tion for others to follow. From our point of view, this collaboration confirmed
pean Infrastructure Fund 5 acquired
the validity of the previously selected
a majority stake in INEA which will
direction for the development of our
support continued development and
company.”
growth. “Growth in telecommunication
In order to stand a greater chance
202
In February 2018, Macquarie Euro-
requires significant capital expenditure.
of success, the majority of companies
You can have most wonderful ideas but
opt to form partnerships to drive profit,
without relevant financial back-up, their
however, Bartkowiak points out what
implementation will be impossible,”
INEA requires from its business relation-
affirms Bartkowiak. “We are glad that it
ships. “You meet good partners, just
is Macquarie that we have the opportu-
like friends, in difficult situations. Similar
nity to work with. Due to the fact that
to everyone in our industry, we are
we share the same vision of INEA
working with numerous partners in
development, I am convinced that the
the market. Starting from suppliers
combination of these two elements
of equipment and materials, through
guarantees development and growth.”
developers of business solutions or software, to our closest partners,
FUTURE PLANS
technical and commercial partners, who
With INEA demonstrating an ambition
work in the field. Without their knowl-
to continue to grow despite a changing
edge, experience, dynamic operations,
market, Bartkowiak affirms how key it
development or innovation, it would be
is that the company expands on an
impossible,” he says. “These types of
ongoing basis. “We are continu-
relations are very precious and they
ously searching for new areas to
require mutual trust, understanding
grow. Sometimes, we joke
and good communication. It’s difficult
that on the day when we
to sustain such relations; however, we
announce the launch of
don’t surrender and we endeavor to
a new product, we are
work on the continuous improvement
already working on
of this co-operation.”
another one. That was
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“It’s of key importance to observe the changes happening by using technology in different aspects of our lives. We have to examine how our expectations of the products or services that we are using is changing. It’s important to observe the entire spectrum of innovations taking place in the world” — Michał Bartkowiak, Management Board Member and COO of INEA
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INEA
204
“We are continuously searching for new areas to grow. Sometimes, we joke that on the day when we announce the launch of a new product, we are already working on another one. That was precisely the case with the 10 Gb/s service we started this year. It’s vital we act quickly because of the way the market is changing” — Michał Bartkowiak, Management Board Member and COO of INEA
precisely the case with 10 Gb/s
focused on the construction of an
service started this year. It’s vital we
open optic-fibre infrastructure. Having
act quickly because of the way the
won over 20 competitions under the
market is changing.”
Operating Programme Digital Poland,
Looking to the future, Bartkowiak
we are also implementing projects
believes that INEA remains deter-
consisting of the expansion of the
mined to build on its success through
existing telecommunication infrastruc-
the implementation of new projects to
ture and reconstruction of the existing
enhance the firm’s existing telecom-
one to FTTH standard,” he says. “As a
munication infrastructure. “We remain
result of those projects, we will reach
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205
about 700,000 more households
of teaching, handling affairs with
located in rural areas with our network.
authorities or benefiting from enter-
All the schools located on the territory
tainment will change and this will
of planned investments will be
completely transform the image of
connected to the network and these
those towns.�
are areas that are digitally excluded, where broadband services are unavailable today. The residents of those areas will have access to modern digital services. The method w w w.gi ga bi t ma ga z in e. com
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Embracing technology in the hospitality industry WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
LE WIS VAUGHAN
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E DWA R D I A N H OT E LS LO N D O N
Director of Information Technology of Edwardian Hotels London, Michael Mrini discusses how technology has acted as an enabler for his company’s success as part of its digital transformation
W
ith innovation at the heart of most companies’ success, it has become vital that businesses implement new technology that separates
them from rivals in order to enhance the way they conduct operations. The introduction of technology has meant that firms can consistently launch new tools that will enable them to provide a better service 208
to its consumers. For Edwardian Hotels London, artificial intelligence (AI) has enabled the company to completely transform its customer experience. Director of Information Technology of Edwardian Hotels London, Michael Mrini, believes that technology has allowed people to perform to higher standards. “We believe technology acts as an enabler for people to do their job better and with less drudgery,” he says. “Thanks to the backing and encouragement of our chairman and CEO, Jasminder Singh, a great visionary and believer in the power of technology as an enabler, we were able to develop to pursue this route and invest in cutting-edge technology.” Having begun his career in 1987 in hospitality, Mrini worked his way up from washing up part-time as a student, to a job as a bartender, before working on the reservations and customer service side of JANUARY 2019
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E DWA R D I A N H OT E LS LO N D O N
210
operations at Hyatt Hotels until 1997.
“Since 1997, I haven’t stopped deve-
Mrini subsequently joined Edwardian
loping technology. When I joined as
and became the Director of Customer
a customer services manager, I auto-
Services, before transitioning to the
mated that particular department,”
position of Director of Information Sys-
explains Mrini. “While still being customer
tems until he moved into his current
services manager, and with the help
role at the beginning of 2012. Such
and encouragement of Iype Abraham
experience of working in a number
who was at the time the head of IT,
of different departments in a hotel
I joined other departments to look at
setting has enabled Mrini to gain
what they do and how they do it. From
a working understanding of how each
the finance side, month-end reports
area operates and he can draw on
used to take someone three days to
his experience to achieve success.
compile. However, from working with
JANUARY 2019
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them, we turned that into a 30 second operation where at the end of the month he just presses a button and the whole month-end pack is created and distributed to senior management.”
DEVELOPING INNOVATIVE TECHNOLOGY Innovation is an area which Edwardian Hotels London prides itself heavily on. Having developed over 32 apps in the past five years, the company is utilising technology in order to create the best possible guest experience for its customers. However, the most exciting
“ We believe technology acts as an enabler for people to do their job better and with less drudgery” — Michael Mrini, Director of Information Technology of Edwardian Hotels London
E X E C U T I V E P R OF IL E
Michael Mrini Michael joined Edwardian Hotels London (formerly known as the Edwardian Group London) in 1997 as Customer Services Manager. Software Development and data analysis was one of Michael’s passions which he put to good use when he introduced automation and data analysis in the customer services department during his first year with the Company. By the year 2000 Michael had formed Edwardian’s first ever software development team and through progression, dedication and hard work, is now the Group’s Director of Information Technology.
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8 of the 10 Top Hotels
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oracle.com/hospitality or call 1.800.ORACLE.1
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EUROPE
CLICK TO WATCH : ‘21ST CENTURY HOSPITALITY – EDWARDIAN HOTELS LONDON’ 213 innovation has been the launch of
where and then realised I didn’t have the
virtual host “Edward” which handles
name or the address of the hotel where
guest enquires such as information
I’m staying,” explains Mrini. “Other times
about the hotel, booking breakfast
I’m in the hotel room, and I want to order
and any other requirements the guest
room service but I can’t find the menu in
needs before, during and after their
the room. You try and make a phone call
stay. Operated through AI on a phone
to get someone to deliver the menu and
app, Edward can manage more than
you end up calling room service but it’s
1,600 requests.
engaged so you wait and wait. But with
“I travel lots and stay in many hotels
Edward, it comes to you as a guest.
worldwide so the idea of Edward was
Edward knows you’re coming because
born out of the frustrations I had. It’s
three days before you arrive, Edward will
annoying when you need information but
send you a message and tell you, “Look,
it’s very difficult to find. For example,
anything you need, just text me.” Now,
quite often I arrived at an airport some-
that facility is in your pocket.” w w w.gi ga bi t ma ga z in e. com
E DWA R D I A N H OT E LS LO N D O N
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“ We have found a really excellent partner in Oracle. They have supported and encouraged us over the years in what we wanted to do” — Michael Mrini, Director of Information Technology of Edwardian Hotels London
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215
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E DWA R D I A N H OT E LS LO N D O N
By having such innovative technology at guests’ fingertips, Mrini believes it has allowed the company to find out information about their customers that otherwise wouldn’t have been possible. “We search for keywords to see what our guests are asking for and what to identify. Because of this, we’ve managed to learn things we never knew about our guests’ behavior, such as most of our guests can’t remember whether breakfast is included in their booking or not,” says Mrini. “Breakfast seems to be the 216
last thing they think about before they go to bed at night. We also found that it’s very important to guests to be able to easily find out whether their room has been cleaned or not. If they’re either out in meetings or out and about visiting the town, they want to know whether their room has been cleaned so they can come back to the hotel or stay out a bit longer and through this technology, they can do that.”
FORMING KEY PARTNERSHIPS Such success with the company’s AI software couldn’t JANUARY 2019
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CLICK TO WATCH : ‘MEETINGS AND EVENTS AT EDWARDIAN HOTELS LONDON’ 217 have been achieved without the work of the firm’s key partnership with Oracle. The partnership has enabled Edwardian Hotels London to make it easier to interact with its property management system (PMS) and act as the catalyst for the success of its technological innovations. “We have found a really excellent partner in Oracle. They have supported and encouraged us over the years in what we wanted to do,” explains Mrini. “Oracle sees what we’re doing as unique in the hospitality sector. What they have done is help us make it easier for us to w w w.gi ga bi t ma ga z in e. com
218 interact with their PMS system because
standing of the core PMS system so
that’s where the bookings are and
that we can develop our interface to it.”
where the check-in/check-out happens.
Other key partners that Edwardian
Any application we develop needs to
Hotels London has been supported by
have a live interface to that system
include BT which helped install the
otherwise it’s useless.”
Wi-Fi in all of the company’s hotels and
“Edward would be useless if it didn’t
Alcatel which has provided the internal
have access to that live information in
telephone systems for the past 20
the booking system because we wouldn’t
years. “BT has been fantastic in installing
know who that guest is. It wouldn’t
the Wi-Fi that we have. They have done
know the latest changes to the guest
an excellent job at the speed that we
booking, the ETA, the list goes on.
wanted it done. We like to work with
I believe they have been fantastic in sup-
partners that can provide quality and
porting, as by enabling us to have that
efficiency and BT were able to do
access, it has helped us with the under-
a superb job for us in very short period
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219
“ We search for keywords to see what our guests are asking for and what to identify. Because of this, we’ve managed to learn things we never knew about our guests’ behaviour, such as most of our guests can’t remember whether breakfast is included in their booking or not” — Michael Mrini, Director of Information Technology of Edwardian Hotels London
of time when we upgraded the Wi-Fi in all of our 12 hotels.” “Alcatel is another one of our partners that has done a brilliant job with us and we have been working with them on things like location services and beacons within the hotel,” he adds. “They’ve been tremendous, and that’s why they remain a partner after 20 years.” The company currently has 12 UK hotels, 11 of which operate in key locations in London, with the final hotel located in the heart of Manchester. In addition, Edwardian Hotels London are set to unveil a 13th property in Leicesw w w.gi ga bi t ma ga z in e. com
E DWA R D I A N H OT E LS LO N D O N
“ Technology is never going to completely take over what we do and do it for us but it’s going to enable us to do what we do better” 220
— Michael Mrini, Director of Information Technology of Edwardian Hotels London
JANUARY 2019
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ter Square in 2020. With the future in mind, Mrini demonstrates a commitment to continue to innovate at Edwardian Hotels London. “The ultimate goal for us is to become the best in hospitality and it’s important for us to continue to innovate. With technology you never know what’s next but one’s things for sure, we’re going to continue to improve and innovate with AI,” affirms Mrini. “We’ve previously dipped our toes in before with AI and had fantastic results so we’re going to continue to utilise it in all the different areas to enable us to do a better job. Technology is never going to completely take over what we do and do it for us but it’s going to enable us to do what we do better.”
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222
Universidad Europea striving for success WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
LE WIS VAUGHAN
JANUARY 2019
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223
a:
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UNIVERSIDAD EUROPEA
Universidad Europea has seen its degree programmes enhanced by new digital tools... 224
O
ffering a dynamic education with the spirit of constant improvement, Universidad Europea is committed
to providing an innovative educational model, and is focused on adding value to society. Actively contributing to its progress through education that is designed to help students become professionals and leaders, the organisation is prepared to respond to the needs of a global environment. At Universidad Europea, its exceptional facilities and educational prog– rammes continue to deliver high employment outcomes, where its courses seek to turn its students into ethical leaders, inspiring entrepreneurship, teamwork and creativity. Viewing educational technology as a global enabler for teaching and learning, JANUARY 2019
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225
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UNIVERSIDAD EUROPEA
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“ Our business is education, so we try to facilitate the needs from academia, from the people who are teaching the classes to our students. This is our priority” — Daniel Milner Resel, Chief Technology Officer
227 Pedro Morcillo, Chief Information
tages that digitisation can bring to
Officer and Daniel Milner Resel Chief
Universidad Europea in Spain and
Technology Officer are passionate
Portugal, Morcillo and Milner Resel
about how digitisation has revolution-
have looked to fully reshape the student
ised the way students engage with its
experience. With universities in Madrid,
services. No longer content with
Valencia and the Canary Islands, as well
traditional ways of working, students
as offices in Lisbon and Porto, they have
are demanding tools that not only
sought to close the gap between
provide greater flexibility, but encour-
technology and academia.
age continuous improvement, both
“Our business is education, from the
personally and professionally. It has
people who are teaching the classes to
even been predicted that the e-learning
our students. This is our priority. There
market worldwide will surpass
are presently three major projects at
US$243bn by 2022, something which
Universidad Europea in relation to
Universidad Europea is keen to tap into.
providing a better service. Firstly,
Responsible for unlocking advan-
there is a new design and host for w w w.gi ga bi t ma ga z in e. com
UNIVERSIDAD EUROPEA
228
“W e have a simulated hospital. It is a ‘top of the class’ installation, unique in Spain in both technology and dimensions” — Daniel Milner Resel, Chief Technology Officer
JANUARY 2019
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our main webpage, which is now hosted on Google Cloud. Secondly, we have a medical images service, which is based on the integration of information services and the different devices which take medical images in our eight university clinics. Lastly, we have a simulated hospital. It is a ‘best in class’ installation, unique in Spain in both technology and dimensions,” explains Milner Resel. The possibilities Universidad Europea have uncovered through investing in technology are endless. Across its framework, its services have been fully disrupted, providing a number of advantages. “We have services licensed by our
E X E C U T I V E P R OF IL E
Daniel Milner Resel Chief Technical Officer in Spain & Portugal, Daniel Milner Resel is redefining the utilisation of all IT services at Universidad Europea. Establishing a new regional framework as part of the unification of Spain and Portugal’s digital capabilities, he has a deep understanding the technological needs of the organisation, solving the gap between business and IT
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UNIVERSIDAD EUROPEA
corporation and where they are also the admin. We also have services licensed by the corporation at a regional level but we are the admins at a local level. Additionally, we have services where both things are at a local level – for example, SIS, Salesforce, Bullet, 8x8 Call Centre, DNS’s, file servers, printers, WIFI, labs, audiovisuals and more.” By utilising tools provided by Microsoft, Cisco, Tenable and BitSight for its security services, as well as investing in its two data centres, Universidad Europea has also adopted Blackboard Learn software, a virtual Learning Management System 230
(LMS) to provide further student support.
CLICK TO WATCH : ‘LEARNING COMMUNICATION WORKING AS A PROFESSIONAL’
JANUARY 2019
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Most recently however, Universidad Europea has witnessed how the implementation of big data has created significant opportunities. The launch of its Business Intelligence (BI) Competency Centre, alongside IBM Cognos and Informatica ETL has seen the business gain a greater understanding of the large volumes of data under its portfolio. The use of automation is now another tool the team is keen to explore, where adopting technology based on Salesforce and 8x8 Call Center has enabled the organisation to look at further ways of transforming the student lifecycle. “With big data, it's a full transformation. Before undertaking this project, there was one key question that was put on the table – ‘how many people nowadays are enrolled at our university? Marketing has one answer, sales has another and IT another, all of which are not the same. Big data has been a revolutionary approach, successfully led by the IT department,” notes Milner Resel. However, limited resources within the education sector remain a global issue. To bolster its resiliency and drive quality results, the organisation has utilised audio-visual technologies to promote collaboration. Implementing Lifesize to encourage the sharing of ideas, it is now Universidad Europea’s main tool for videoconferencing, as well as Skype for Business and Zoom. Its project with Smart– w w w.gi ga bi t ma ga z in e. com
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UNIVERSIDAD EUROPEA
boards in the classroom is also expected to revolutionise student learning, where the implementation of Clevertouch 86 will work to deliver an immersive student experience within a digital classroom environment. Not only that, to further promote accessibility, Universidad Europea’s partnership with Chilean contractor Moofwd has led the development of a mobile app, powered by cloud technology. Educational services will continue to evolve, in which Milner Resel coins 232
this ‘the third revolution.’ Students will gain knowledge and expertise through various platforms, where Universidad Europea will soon be taking this to the next stage and look at the long-term benefits of remote working across the organisation. “We have a lot of initiatives, where in the near future a great percentage of our work force is going to be working from home. It gives families flexibility, lowers utility bills at establishments and more. Here in Spain and Portugal, we are trying to get a more ambitious approach to this kind of work,” he says. Universidad Europea delivers edu– JANUARY 2019
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233
‘ Students are demanding tools that not only provide greater flexibility, but ones that encourage continuous improvement, both personally and professionally’ w w w.gi ga bi t ma ga z in e. com
UNIVERSIDAD EUROPEA
“W e have a lot of initiatives, where in the near future a great percentage of our work force is going to be working from home”
234
— Daniel Milner Resel, Chief Technology Officer
JANUARY 2019
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cation that is high quality, accessible and affordable, supporting students in all walks of life. Technology will become a key driver to unlock change, supporting the development of connections across its infrastructure to make a significant impact upon the lives of its students. Universidad Europea is committed to undertaking an ongoing digital journey, which will be key to its enduring success.
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JANUARY 2019
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Fuelling rapid growth with an innovative procurement transformation
237
WRIT TEN BY
L AUR A MULL AN PRODUCED BY
RICHARD DURR ANT
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U I PAT H
We speak to UiPath’s Head of Global Procurement, Catalin Lupu, to discover how a cutting-edge procurement transformation is helping to enable the firm’s exponential growth 238
I
t seems that when it comes to robotic processing automation (RPA), the name on everyone’s lips is UiPath. The American
firm has achieved a lot in its short history. At its genesis, UiPath was just a team of 10 based in Bucharest but now it’s headquartered in New York City, boasting 30 offices in 16 countries and more than 1,700 employees. “‘Growth’ is the key word at the firm,” points out Catalin Lupu, Head of Global Procurement, and the technology community seems to agree. The firm was listed 26th on Deloitte’s Technology Fast 500 – a ranking of the crème de la crème in the technology, media, telecommunications, life sciences and energy tech companies in North America. In 2018 alone, JANUARY 2019
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UiPath closed its Series B and Series C financing rounds totalling US$418mn, lifting the company’s valuation to an impressive $3bn. UiPath has, by all accounts, been a gleaming example of how to scale a tech startup and, for Lupu, this is thanks in part to the firm’s robust procurement function. Before joining UiPath, Lupu cut his teeth in procurement with time at firms like Renault and the Goodyear Tire & Rubber Company respectively. Through these roles, Lupu honed his skills and says that it provided him with a “global view” which enabled him to “understand the challenges and steps needed to scale up a business”. This proved to be a critical skill when he later moved to UiPath. UiPath began as a small startup
“ ‘Growth’is the key word at the firm” — Catalin Lupu, Head of Global Procurement, UiPath
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239
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function should look like in a year from now. That’s where it started.” UiPath didn’t think small; it crafted its roadmap with a global mindset from the offset. Rather than confining itself by regions, with a procurement spend of around
it standardised its procurement function
$2-3mn but CEO Daniel Dines had
at a global level.
big ambitions. He wanted UiPath to
Compliance was also a crucial factor.
be a market leader. To kick off this
“The policies are shaped around the
growth, the firm first had to convince
business’ needs and compliance
the market of the merits of RPA and
because when you’re working with
build a strategic roadmap. “We basically
clients like Fortune 500 firms, we
started from scratch,” explains Lupu.
wanted to make sure that everything is
“I like to describe it like building a house.
auditable, that they’re doing every-
First of all, we laid the foundation. In
thing by the book. We also didn’t want
procurement, we decided our policies,
to make it too difficult to manage or
how we should buy, what architecture
too granular for approvals so we
we should use, how the procurement
implemented procurement cards.” Afw w w.gi ga bi t ma ga z in e. com
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U I PAT H
ter laying the foundation, UiPath turned its attention to building the walls and the structure. For procurement, this meant implementing the systems. “We wanted everything to be digitalised so, for instance, we implemented procure-to-pay (P2P) and finance modules from Net Suite,” notes Lupu. “We wanted to drive the company forward, we wanted to automate and to liberate our people from repetitive stuff so that they could be more focused on strategic tasks like emailing a new supplier. It also enabled us to deliver analytics at a global level. I think that is the holy grail 242
and it’s where a lot of companies struggle.” By implementing a cloud-based solution, this not only made the move from offline to digital seamless, it also allowed UiPath to get access to purchase orders (POs) on all devices – ideal for any global, fast-moving firm – which were easily integrated with other applications. A key task for any company, particularly in the IT sector, is attracting, retaining and training the right talent and it was another key facet in UiPath’s transformation story. “Bringing the right people is essential when scaling,” reflects Lupu. “We built up a culture and a team that’s ready to scale and that’s prepared for any challenges the clients may have. “They’re very focused on the client JANUARY 2019
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243
E X E C U T I V E P R OF IL E
Catalin Lupu Catalin Lupu is Head of Global Procurement of UiPath. He spent all his career in Procurement covering global roles within the automotive industry. Catalin joined UiPath in 2017 with a clear mission to build up a global procurement organization for the first Romanian Unicorn. Passionate about Robotic Process Automation, which he considers a disruptive enterprise technology for Procurement, his new challenge is to scale and automate all procurement processes for UiPath.
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U I PAT H
CLICK TO WATCH : ‘UIPATH GO! – AUTOMATION MADE EASY’ 244 needs, and internally it’s been quite
To tackle this, UiPath’s
a successful journey for them, because
procurement team have
most of them come from different
worked hard to develop
industries. We looked at their potential
strong industry links and
as well as their skills.”
vendor partnerships that
UiPath has quickly become synonymous with the RPA market, acquiring
are able to keep pace with the firm’s global vision.
an average of six new customers per
“We don’t see these firms as suppliers
day. Yet, this rapid growth hasn’t come
or vendors, they’re partners because
without its challenges. As the first
when we try to go global, we need
footprint has expanded it had to establish
partners that will stick by us, who will
new real estate, pay rolls and recruit-
insulate us, and be able to adapt to
ment in different geographies.
the market,” Lupu explains. Take the
“Growth is a good problem to have,”
issue of real estate, highlights Lupu.
laughs Lupu, “but it’s still a challenge.”
With a footprint spanning from London
JANUARY 2019
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“ Bringing in the right people is essential when scaling” — Catalin Lupu, Head of Global Procurement, UiPath
to Tokyo, Bengaluru to Singapore,
create a presence there and start
offices are a top priority for UiPath
hiring. We have a global partnership
and therefore it has developed strong
with We Work, which provides a
relationships to make this a reality.
single point of contact for us globally,
“We have a big spend on real-estate,
which is a robust model when you
so we have a very interesting and
need a presence across the world.”
successful strategy,” he says. “When
UiPath has sought out partners
we enter a new country, we start off in
which have an international presence
co-working space so that we can
yet local knowledge. It found this with w w w.gi ga bi t ma ga z in e. com
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U I PAT H
partner CDW who helped to enhance the firm’s IT management. “One of the challenges when growing globally is finding global partners who can meet this footprint and deliver what you need, whether it’s in Europe, the US, Asia or in India,” notes Lupu. “We found that CDW was one of the few in the market who could achieve this and helps us manage the IT span and delivery. They helped us centralise all the hardware that we were buying individually in countries by creating synergies. They understood that we needed a global single point of contact which is hands on.” 246
As the role of procurement morphs
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247 rapidly into a business enabler, rather than a back-office function, it’s also getting more digitally-savvy. Just as its users have adopted UiPath’s RPA platform to take their business to the next level, UiPath’s procurement team are also using its own product. Lupu points out that, by getting robots to automate mundane and repetitive tasks, it allows his team to focus on value-adding jobs. “It automates repetitive work so people can focus on more strategic or creative jobs,” he explains. “RPA doesn’t only apply to procurement or finance. It can be applied to supply chain, it can be applied to delivery, call centres, banking, any industry that’s had repetitive w w w.gi ga bi t ma ga z in e. com
U I PAT H
“ We found that CDW was one of the few in the market who could help us manage the IT span and delivery” — Catalin Lupu, Head of Global Procurement, UiPath
248
JANUARY 2019
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standardised processes which could be automated. That’s why I think it’s very disruptive, because it can apply to any industry.” Lupu believes the procurement sector is undergoing a seismic shift – teams are more focused on return on investment (ROI) rather than savings, the field is also becoming more digitised, and teams are being created based on ambition just as much as their skills. Having built its procurement function from the ground up, procurement has been a pivotal enable of UiPath’s growth and Lupu believes his strategy is a simple but meaningful one. “The main rule is that procurement needs to be smart, it needs to be simple and it needs to be scalable,” asserts Lupu. “Now, we have around 1,700 employees, next year we could have 10,000. I think the keyword now is still growth; we’re in skyrocket mode. Where there is an enterprise market, we need to be there. Our focus now is growing the business and to remain a leader in the RPA sector.”
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Digital transformat to educate customers
WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
JUS TIN BR AND
250
JANUARY 2019
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tion 251
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NEDBANK
Nedbank has sought to educate customers in the application of new digital solutions, revolutionising the payment and transactional industry across South Africa
P
resent in six countries in the Southern African Development Community (SADC)
and East Africa, Nedbank’s vast portfolio has seen the business acquire subsidiaries and banks in Namibia, Swaziland, Malawi, Mozambique, Leso252
tho and Zimbabwe, as well as representative offices in Angola and Kenya. Throughout its ongoing expansion, technology has continued to challenge traditional banking services, leading Nedbank to break down barriers, overhaul its processes and take a closer look at the way customers engage with its services. A chartered accountant by back-
in an organisation that houses a strong
ground, having audited a large number
passion for clients and embraces new
of automotive groups –such as BMW
ways of thinking. Appointed as Manag-
and Daimler – Dayalan Govender,
ing Executive in 2017, he has taken this
Managing Executive of Nedbank Card,
objective further by seeking to reform
Payments and Transactional, entered
the card and payments space and the
the fast-evolving world of financial ser-
transactional industry in South Africa,
vices with the aim to make a difference
leveraging technologies and capabili-
JANUARY 2019
AFRICA
and transactional solutions to clients that fast, safe, reliable, convenient and cost effective all focused on enabling clients to achieve their goals and outcomes?’ That’s the first departure point that’s really important to us,” he explains. “We have two key challenges. One is around transforming the culture from ties in a fundamentally different way. “The first thing in our approach is,
an incremental mindset to an exponential disruptive mindset. The second is
‘Delivering delightful client experiences
around digital adoption and education:
and how do we transform not just our
once we get clients to start adopting
Nedbank Card, Payments and Trans-
these solutions, how do we ensure
actional business but also the indus-
sustainability in digital adoption? What
try? How do we reshape the industry
is accelerating digital adoption, not just
so that we are able to provide payment
in South Africa but globally, is that all w w w.gi ga bi t ma ga z in e. com
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AFRICA
“ Behavioural biometrics is also something that we are exploring and believe it’s going to enhance customer experience” — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
tication methods to bolster security across various digital applications to build trust and transparency. Investing in new fraud prevention mechanisms, Nedbank has gained increased awareof us live in an increasingly digitised
ness into fraudulent activity – some-
world and we are being influenced by
thing which has become a significant
digital solutions in our everyday lives.
threat across South Africa and globally.
The proliferation of applications that
“We are investing in tokenisation,
exist satisfy many of our needs that
enabling secure in store and online
we didn’t think possible. People are
transactions. Behavioural biometrics
being influenced by digital in many
is also something that we are exploring
aspects of their lives and we are at
and believe it’s going to give clients
a point where clients expect this from
a superior customer experience,”
financial services.”
says Govender.
Trust is going to be a key requirement
Accelerating digital adoption will go
underpinning digital adoption. Within
hand in hand with building trust, which
its Card, Payments and Transactional
will no doubt feed into Nedbank’s abil-
operations, Nedbank has therefore
ity to scale. However, despite such ef-
sought to invest in the latest authen-
forts, customers will only utilise smart w w w.gi ga bi t ma ga z in e. com
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NEDBANK
payment solutions if they are somewhat intuitive, in order to remove the fear of the unknown and fully engage with new digital services. “Far too often, there’s a perception that digital is complex. Not everyone understands these digital solutions and they get paralysed when they experience a digital solution for the first time, so we have invested significantly in how we design these solutions with the client at the very heart of this,” he says, Since the bank launched the Nedbank 256
Money app in 2018, the new digital platform has been met with acclaim by clients. Gaining significant traction with more than a million downloads, the app provides customers with financial access and services at the click of a button, fully empowering users and putting them in control of their finances. Harnessing a sophisticated design with ‘next level authentication’, the app enables customers to do a myriad of activities including viewing balances and statements, buy prepaid data and other value-added services, send money to a recipient or make payments to friends, family or providers. “Nedbank also launched scan to pay JANUARY 2019
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257
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Tipping the scale on mobile payments By Mark Elliott, Division President, Mastercard Southern Africa The app economy has changed the way we live. We depend on our smartphone apps for everything from entertainment to photography, to messaging, personal productivity and ordering transport or accommodation. In South Africa, we’re increasingly using our smartphones for in-app, in-store and online payments.
“The promise of mobile payment services lies in creating safer, richer experiences for consumers and merchants.” We’re also seeing merchants use apps that turn their smartphones into point of sale devices or use QR codes to accept mobile payments from their customers. The mobile device brings the convenience, safety and customer choice associated with cashless transactions to spaza shops, flea market stalls, trades people like plumbers and electricians, and other sectors where traditional card terminals are not a practical or affordable solution.
Mobile innovations need to improve the consumer experience As we think about the rapid adoption of mobile payments, the promise of mobile payment services lies in creating safer, richer experiences for consumers and merchants. The key is not to simply recreate what you could do before, but to make paying for things simpler, safer and faster. That’s why connecting with consumers wherever they are and whenever they want is critical. Imagine, for example, a world where people don’t need to queue for hours to send money to their families in the rural areas or where no one needs to withdraw cash from an ATM and then stand in a long queue at a retailer on a Saturday to pay a rates bill. They don’t even need to log in to online banking and input a lot of payment information. Instead, they’ll be able to scan a QR code on the statement and pay from an app. This is a world where merchants don’t need to keep large amounts of cash on their premises. It’s one where consumers demand convenience and control, and
FIND OUT MORE: VISIT WWW.MASTERCARD.CO.ZA
expect payment experiences to make their lives better. We are not talking about a distant future, either. In South Africa, more than 900,000 ratepayers in the City of Ekurhuleni can pay their municipal bills online with their smartphones, using Masterpass, our global digital payment service. Masterpass is also accepted online by a growing list of merchants of all sizes as well as in-app for convenient air and data mobile top-up.
Partnerships key to drive mass digital payment adoption The consumer experience is simple, but there is a lot of complexity in the background. Without collaboration across industries to ensure that digital payments systems are secure and interoperable, it will be impossible to deliver the experiences consumers demand or to scale mobile payments. That’s why we are collaborating with key players to develop and deliver new consumer propositions that span multiple industries across multiple channels – in-store, in-app and online. One example is the partnership between Mastercard and Entersekt to enable Nedbank’s customers to make QR payments to Masterpass, Pay@, SnapScan, and Zapper merchants and billers through the Nedbank Money app, whether they are paying online or at a physical point of presence. This market-first development means that Nedbank Money users need just one smartphone app for all major domestic scan-to-pay services, rather than needing to store card data in multiple apps, and they will be able to use biometrics as an authentication method.
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within the Nedbank Money App which
“Being able to give clients control over
is the first banking app in the South Af-
their debit orders, where they could
rica that allows clients to scan a Mas-
go through their accounts, recognise
terpass, Snapscan or Zapper QR code
a debit order to be fraudulent or inac-
for making retail and utility payments.
curate and be able to reverse that
This is convenience at your fingertips
– this has been an extremely powerful
that no longer requires clients to carry
service. Also, simple things like freez-
cards or cash.
ing and unfreezing cards are being
“A number of other services in the app are extremely popular, which debit order reversals are a prime example.
used by customers all over the world, especially when travelling.” However, with such a diverse
In South Africa, we have an issue from
demographic, it has been imperative
a customer perspective around debit
for Nedbank to ensure financial
order abuse,” explains Govender.
inclusion throughout the development w w w.gi ga bi t ma ga z in e. com
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“ Nedbank also launched Scan To Pay within the Nedbank Money App which is the first banking app in the South Africa that allows clients to scan 260 a Masterpass, Snapscan or Zapper QR code for making retail and utility payments. This is convenience at your fingertips that no longer requires clients to carry cards or cash” — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
JANUARY 2019
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of its banking applications. Based on USSD (unstructured supplementary service data) technology, Nedbank’s transactional product MobiMoney has also seen customers gain access to financial services via smartphone and feature phone, where they can deposit money into the account for free as well as send money to recipients for free. Other value-added services include purchasing prepaid electricity and more. “There have been examples of people wanting to buy prepaid electricity, they had to take transportation to get to a mall or vendor and it would cost them R60-80 to buy R100 worth of prepaid electricity. Now, it is at their fingertips and will cost next to nothing,” Govender adds. “We are solving problems that really matter to clients and address some of these key pain points. Through this particular platform we will build a lot more services that resonate with clients. It is also a free banking account that does not attract a monthly service fee.” Remaining aggressive in developing new digital tools and solutions for those in all walks of life, Nedbank is w w w.gi ga bi t ma ga z in e. com
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Banking and Payment services in Africa are experiencing a digital transformation, putting the customer experience at the core of innovations. New technologies such as ID verification and behavioral risk management will enrich banks customer engagement strategy. Behavioral Risk Management: Gemalto Assurance Hub employs AI to assess user behavior patterns and determine the potential for fraud. Anything out of the ordinary can be identified and additional authentication will be requested, to ensure maximum security. ID verification: Gemalto’s ID verification solution enables financial institutions to deploy a fast and compliant identity verification. Customers can self-enroll to online banking services by simply submitting a scan of their ID along with a selfie to facilitate secure, real-time enrolment. TO LEARN MORE VISIT GEMALTO.COM
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Š Gemalto 2018. All rights reserved. Gemalto, the Gemalto logo, are trademarks and service marks of Gemalto and are registered in certain countries. November 2018 - CC
Banking and Payment (r)evolution
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CLICK TO WATCH : ‘OPPORTUNITIES BEYOND THE OBVIOUS’ 263 also set to launch a solution that is
“From travel to household require-
tailored to the student customer that
ments, the app will find you a service
will be truly disruptive and be the first of
provider that meets your needs and is
its kind in South Africa, as well as offer
testament to the focus on client experi-
entrepreneurs with the tools and skills
ence and enabling client outcomes,”
that they need to succeed.
notes Govender.
Fully supporting customers beyond
However, with the rise of hyperper-
traditional banking services, Nedbank’s
sonalised services, data will become
partnership with Hey Jude has even
a key differentiator in delivering relevant
seen the bank integrate a new lifestyle
services to clients including merchants.
solution into the Nedbank Money app
Nedbank’s end-to-end business man-
for ease and simplicity. The solution
agement solution, POSplus, provides
works to enable customers to book
advanced data analytics and enhances
travel services, obtain support for find-
a business’ presence not only in ecom-
ing various services, and much more.
merce, but to gain a significant growth w w w.gi ga bi t ma ga z in e. com
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in the physical environment. “This innovation and solution allows business and business owners; especially small business services and entrepreneurs to focus more on growing and running their business, as opposed to managing multiple vendors and other distractions within their environment.” Successfully reaching R125bn (US$8.8bn) market capitalisation throughout its operations is no easy feat, but building strong partnerships has remained key to Nedbank’s 264
upward trajectory in supporting 8mn clients across Africa and beyond. Recently, the bank’s alliance with pan-African banking conglomerate Ecobank Transnational Inc has seen Nedbank cater to the growing for cross border remittance solutions in Africa. Additionally, by effectively embracing collaboration to bring solutions to life, Nedbank’s partnership with FEXCO has seen the business harness its global, dynamic currency conversion solution for customers visiting South Africa, and pay for services in their home currency. “We’ve leveraged FEXCO’s expertise and capability, which gives our merchants the ability JANUARY 2019
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Building Borderless Business Fexco are proud to partner with Nedbank to provide Dynamic Currency Conversion (DCC) and Multi-Currency Pricing (MCP).
Read more online
For more information, contact: Gavin O’ Sullivan | Fexco Country Manager - South Africa | Tel: +27 66 478 9450 | Email: gavosullivan@fexco.com
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CLICK TO WATCH : ‘“SEE MONEY DIFFERENTLY” WITH NEDBANK | 90” TVC’
to offer tourists coming to South Africa
which will provide jurisdiction over all
a value-add by paying in their home
financial institutions. This, he explains,
currency, where they don’t have to ex-
will enable the ongoing transformation
perience the volatility in the currency or
of financial services and the delivery of
the exchange rate,” explains Govender.
further advantages in terms of inter-
Long term, looking at the future of
acting, servicing as well as delivering
Nedbank and its position in South Africa, Govender believes a flood of new
innovative value propositions. “Enabling regulations are going to be
opportunities are set to be unlocked
key in achieving the reserve bank’s vi-
as the country undergoes significant
sion for 2025 which is tackling some of
regulatory change. The Financial Sec-
the social issues that we have in South
tor Conduct Authority and Prudential
Africa,” he says.
Authority are set to be located in the
“The move could also unlock trade,
South African Reserve Bank (SARB),
growth and create employment. The inw w w.gi ga bi t ma ga z in e. com
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5705 Wetpaint
There’s an operational resilience associated with strong partnerships. It’s the resilience that comes from sharing a vision of the future and an understanding of the past. That is why, while we innovate on the ever-shifting technological forefront, iVeri Payment Technologies has always been committed to the solidity of partnerships. Specialising in providing cutting-edge multichannel transaction technologies in the context of developing economies, iVeri has been a preferred payment partner of banks for two decades. Built on consistency and reliability, it is a partnership that has led to mutual success and long-term growth. Active in 12 countries and internationally certiďŹ ed, choose iVeri Payment Technologies as your payment gateway partner.
Mobile | eCommerce | PoS | API +27 11 269 4000 | www.iveri.com | sales@iveri.com
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formal sector in South Africa facilitates
mindset, Nedbank has transformed
huge amounts of economic activity but
its capabilities to deliver solutions
it’s fundamentally based on cash. How
that are convenient, secure and scal-
do we, through regulation, also go and
able. With Govender certain that the
solve facilitating trade and entrepre-
finance industry in South Africa will
neurship? That’s where we’re going to
become wholly digitally led, data will
see a significant amount of transforma-
support decision making and provide
tion take place over the coming years
key insights into the way customers
in South Africa.”
engage beyond banking services, as
Housing an exponential and disruptive
well as provide essential insights which w w w.gi ga bi t ma ga z in e. com
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“ We are solving problems that really matter to clients and helping address some of these key pain points� — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
will fundamentally change the way in which financial institutions design and bring solutions to market. Fully revolutionising its corporate culture to think more innovatively and client centered, as well as adapt a commercially savvy mindset, Nedbank will continue to place significant investment in its people and new exponential technologies to take banking services in South Africa into a whole new era.
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Resolving digital transformation challenges with CIO Ayanda Saki WRIT TEN BY
L AUR A MULL AN PRODUCED BY
M A LVERN K ANDEM WA
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CIO Ayanda Saki weighs in on some of the top challenges and opportunities facing technology executives today
A
s more CIOs take the first tentative steps on their digital transformation journeys,
many are turning to seasoned professionals for guidance. With over 20 274
years of experience in the technology sector, Ayanda Saki, now CIO at a leading African automotive parts company, is a fountain of wisdom. For Saki, her technology career began after she obtained her Computer Science degree, which allowed her to gain a true understanding of technological innovation. Later, before cutting her teeth in the sector, Saki completed a Master’s Degree in Business Administration (MBA). She credits this educational experience with affording her the necessary insight to distinguish between technology for technology’s sake in comparison to technology which enables true business value. JANUARY 2019
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TAILORED VOICE &
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MEET YOUR SOLUTION VTNC Communications is a tailored connectivity provider that specialises in PABX, data connectivity, voice and hosted solutions. We were established in 2011 and, under the leadership of Louis Van Der Wath, have grown from a small Telecommunications provider to a tier 2 service provider utilising tier 1 networks all over South Africa. VTNC boasts an impressive clientele that spans across all trades in the commercial and corporate sector. VTNC was acquired by HeroTel in 2018, whom boast over 55 000 wireless and fibre clients. Herotel offers VTNC an quality On-Net last mile connectivity solutions for our business clients, and in return VTNC Communications enables HeroTel to offer v Contact us today to find out how we can help you grow your business.
A MOTUS PREFFERED SERVICE PROVIDER
C I O — AYA N D A S A K I
“ It doesn’t make sense to have a technical understanding of technology without having the necessary business acumen” — Ayanda Saki, Chief Information Officer 278
BUSINESS PROWESS
sure I understood the businesses, how
“I realised that it didn’t make sense
it worked and what it was trying to
to have a technical understanding of
achieve, then aligned the technology
technology without having the neces-
as much as possible to that,” she says.
sary business acumen to understand
“Technology shouldn’t be implemented
how these can help businesses gen-
for the sake of it. Technology should
erate revenue or enable strategies,”
be used to improve the quality of life of
she recalls. By understanding how
people and to enable business value.
the business works as well as what it
I think this perspective has created
hopes to achieve, Saki has been able
a good foundation for where I am today.”
to align her digital strategies to meet
This business insight has put her in
these needs, whilst remaining laser
good stead in the technology sector.
focused on the people involved.
Whilst Saki may have an impressive un-
“Throughout my career, I made JANUARY 2019
derstanding of technology – spanning
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everything from software engineering to business intelligence – she says that, more than anything, it’s vital executives recognise that the customer is king. “In recent years, the biggest change has been that the power is now in the hands of the customer. The customer now decides how they want to buy, who they want to buy from, and when they want to buy products and services.” As the on demand economy takes off and more and more devices are at consumers’ fingertips, this challenge is only set to amplify. Mobile phone ownership is racing ahead in South Africa and across the continent. This not only
E X E C U T I V E P R OF IL E
Ayanda Saki Ayanda Saki is an entrepreneurial, seasoned business and IT strategist, who is currently Chief Information Officer at Motus Aftermarket Parts. Prior to this role, she worked at firms such as Standard Bank, the National Research Foundation, HSBC Investment Services and The Foschini Retail Group. Throughout her career, she has led and prudently managed projects and departments with budgets of up to ZAR70mn (USD$4.86mn). Her specialties include ICT and business strategy, leadership, governance, portfolio and programme management, as well as value creation.
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serves as a communication device but also as a cost-effective channel to get online, which has provided companies with the opportunity to interact with customers like never before. “Africa is very mobile focused and this creates an opportunity for us to provide an economic type of architecture for our customers,” comments Saki. “It’s required us to adjust our thinking and to align ourselves with how the customer interacts with us.” 280
THE CUSTOMER IS KING Not only should CIOs pay heed to their customers’ wants and needs, but they should also be aware of their location. Digital transformation isn’t ‘one size fits all’, and therefore companies should be wary of copying and pasting their business strategies into new locations. The key, Saki highlights, is to adapt to each location. “In Africa, many of the companies are multinational companies and when they’ve entered this market, they’ve taken the same template of their business from international markets and applied it here which doesn’t work. For an African market, the way a business JANUARY 2019
“ Technology shouldn’t be implemented for the sake of it. Technology should be used to improve the quality of people’s lives and to enable businesses value” — Ayanda Saki, Chief Information Officer
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sells to its customers has to be different as their buying power is different, and the way they interact with the market has to be different. Many are entrepreneurial businesses and they typically have less access to technology. It requires a shift in thinking.” Saki cites Unilever’s entry into the rural Indian market as a relevant case study to parallel. After conducting indepth research, the firm calculated the buying power of an average woman in India and worked out how they could effectively sell to this market. “For instance, many consumers didn’t have the buying power to purchase a 100ml bottle of body lotion so following the study Unilever launched smaller sized sachets of body lotion which were more affordable and which allowed the company to penetrate the market further,” she explains. “I think the same mindset needs to be applied in Africa.”
CONVENIENCE IS CRUCIAL The success of firms like Amazon, Deliveroo, Uber and others only goes to show that convenience sells. This is a sentiment echoed by Saki who contends that as more and more w w w.gi ga bi t ma ga z in e. com
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businesses go digital, convenience will be the differentiating factor. “We’re seeing that the companies which are succeeding in digitisation are companies which create convenience that goes over and above just buying a product,” Saki reflects. “The better the customer experience, the more chance of customers coming back time and time again.” Data analytics, cloud computing and other emerging technologies could play a key role in helping companies realise this goal, Saki notes. 282
TACKLING THE SKILLS GAP One of the most pressing challenges facing the technology sector is undoubtedly the widening skills gap in the market. In a world where today’s graduates have grown up with the internet, tablets and mobile devices, Saki said that young people already have an inherent understanding of IT, what recruiters need to watch out for is those who can take this understanding and do something new with it. Additionally, she believes there needs to be a cultural shift that encourages young people to enter more corporate environments. “I believe there’s so much value in combining how older and younger people think, especially as we move towards a more digital future,” she observes. “We need to make a lot of JANUARY 2019
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C I O – AYA N D A S A K I
“ From the very beginning it was really hard to be taken seriously as a woman… Even if you said something that had value, you had to say it a number of times, justify it a million times more, and sometimes even demonstrate it for you to be taken seriously” — Ayanda Saki, Chief Information Officer 284
JANUARY 2018
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changes to absorb this new talent into the technology landscape.” Creating an inclusive environment could also help. Having studied in apartheid times in South Africa, as well as being a woman in the technology field, Saki is all too aware of the hurdles facing workers trying to make their mark on the technology sector. “From the very beginning it was really hard to be taken seriously as a woman,” she reflects. “Even if you said something that had value, you had to say it a number of times, justify it a million times more, and sometimes even demonstrate it for you to be taken seriously. “I think what helped me was that if I feel an issue is important, I’ll create a prototype of the suggestion which allowed me to demonstrate my ideas clearly.” On top of this, there’s also the issue of work culture. In the corporate world, where competing egos are commonplace, Saki is keen to point out the importance of remaining humble, particularly when you’re in a leadership position. In doing so, she says CIOs can create an approachable and inclusive IT environment that works with, not in tangent, to the wider business operation. “I try to keep myself humble and approachable,” she says. “It’s important to be able to explain technology in a way that makes sense to businesses so that they can really comprehend how IT can benefit the organisation.”
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ABC GROUP: DIGITAL TRANSFORMATION FOR THE LEBANESE SHOPPING EXPERIENCE WRIT TEN BY
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DA LE BENTON PRODUCED BY
CR AIG DANIEL S
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ABC
AMID A TECHNOLOGY TRANSFORMATION PLAN, ELIE HARB, HEAD OF IT AT ABC, TALKS DIGITAL DISRUPTION IN LEBANON
T
echnology has completely redefined the modern world and the modern customer. As innovation drives change, businesses
across the globe have to adapt and evolve in order to continue to meet and ultimately exceed changing customer expectations. As one of the premier 288
shopping and lifestyle destinations in Lebanon, understanding this evolving customer and the role that technology has and continues to play in that shifting landscape is more important than ever before for ABC. As the first retailer to open in the country since 1936, ABC Group combines world-class shopping dining and entertainment across six branches and three flagship stores throughout Lebanon. The company prides itself on one critical component – innovation – and it strives to deliver on this through outstanding customer experience. “At ABC our purpose is to make Lebanon a better place and we do that by creating a great social hub offering the best brand mix and outstanding customer experience,” says Elie Harb, Head of IT & PMO. “ABC raises the bar very high when it comes to customer JANUARY 2019
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service, creating an unprecedented
business enabler. “IT is now becoming
environment where we and our cust–
more and more of a business driver
omers are part of one family. Our CSR
pushing the boundaries of possibility
activities and environmental initiatives
for ABC to the max,” he says. “The CIO
are unique in the country and set an
has assumed a prominent place in the
example for the competition and our
strategic thinking of the business, not
population alike.”
simply enabling and supporting
Over the last five years, Harb has
other members of the C-suite to
overseen a major digital transformation
achieve their vision, but rather
of ABC as the company continues to
actively setting the agenda
stay at the forefront of innovation and
for the future of the digital
technology. With a career in IT spanning
enterprise. His role isn’t
over 18 years, Harb has seen the role
limited to just keeping the
of IT and that of the CIO shift dramat-
system running and
ically, moving away from the tradition-
updated (while that
al support function and becoming a
is obviously still
JANUARY 2019
MIDDLE EAST
important), but he became an agent of
“ ABC raises the bar very high when it comes to customer service,creating an unprecedented environment where we and our customers are part of one family” — Elie Harb, Head of IT and PMO, ABC
change and innovation.” As Head of IT, Harb is a key driver of the digital transformation and looks to steer the company towards understanding how best to capitalise on the technologies on hand in order to optimise and automate business processes, enhance customer experience and improve productivity, all the while keeping a stable, updated and secure platform. Harb admits that as technology continues to evolve, the company must be agile in its approach to trans– formation and so it breaks down its transformation roadmap into three year plans that are renewed at the end of
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each period. This, Harb explains, allows the company to continuously assess its position on the edge of technology to remain the leader in the market. ABC has defined its priorities for its digital transformation based on four pillars: enabling state-of-the-art customer experience, business enhancement and innovation; productivity increase and automation; infrastructure and stability. Throughout this journey, Harb can already point to key successes where technology has enabled true innovation and efficiency for the business. 292
“Looking at customer experience, we built the best loyalty program in the country and we became the first fashion retailer to implement a call centre as well as a 3D virtual reality way finding and mobile point of sale systems,” he says. “We were also the first to implement an intuitive business intelligence system with predictive analysis and machine learning. We’ve also optimised the buyers’ work by adding merchandise planning systems as well as opening our recruitment possibilities by adding an online recruitment system.” With technology comes the risk of always turning to technology for the sake of following industry trends rather than enabling true value for the business and return of JANUARY 2019
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CLICK TO WATCH : ‘ABC OF LEADERSHIP’
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ABC
investment (ROI). Harb is all too aware of this and recognises that while ABC is an early adopter, it does not follow blindly. “We pick and choose based on extensive vetting and we don’t let ourselves be impressed by ‘big words’,” he says. “Some trends have had a major impact on the retail industry, such as omnichannel retail which is causing major disruption, while others are still to show their worthiness. It falls to us to use our better judgment and expertise in the field in order to adopt the best solution possible and 294
follow the route that will have a positive impact on our business.” To this end, ABC will vet technology both internally and externally through the use of technology vendors and filter innovation and solutions through variable committees like the company’s Customer Experience Committee (CEC). “The CEC or the steering committee will analyse the business impact and the ROI both locally and globally,” says Harb. “Once approved, we then proceed with a final round of validation in order to ensure there are no hidden costs or impacts and that it fits exactly to our needs.” Ultimately, those needs revolve around the customer and their experience. Harb JANUARY 2019
“ We were the first to implement an intuitive business intelligence system with predictive analysis and machine learning” — Elie Harb, Head of IT and PMO, ABC
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notes that technology has opened up greater communications and visibility with its customers, something that he feels is an edge that no other retailers can offer. This is best exemplified through its mobile application. “Our mobile app ensures that our customers are always connected and informed about what we are doing for them,” he says. “It gives the customer full control over their loyalty points to redeem at any time without the need of physical interaction.” This loyalty scheme was extended to all shops within ABC’s department stores and malls, which vastly improved customer satis– 295 E X E C U T I V E P R OF IL E
Elie Harb An experienced IT professional, with more than 18 years working in the technology space, Elie Harb is currently the IT and Project Management Officer at ABC Sal. In this role, Harb is tasked with keeping ABC Sal at the forefront of innovation and technology, having overseen a major companywide digital transformation based on four pillars: enabling state of the art customer experiences, business enhancements and innovations; productivity increase and automation; infrastructure and stability. Harb is a key driver of the digital transformation and looks to steer the company towards understanding how best to capitalise on the technologies on hand in order to optimise and automate business processes, enhance customer experience and improve productivity, all the while keeping a stable, updated and secure platform.
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faction. The company also became the first retailer to implement mobile POS within its malls to drastically reduce queues and allow for fast checkout during high seasons. “We also have digital signage, our VR way finding systems and free Wi-Fi. Combine all of our digital initiatives and we have created an incredibly unique customer experience that cannot be matched by other malls.” For more than 75 years, ABC has strategically invested into technology in order to cement its position as the leading retailer in the market. Investing in technology is important, but Harb understands that the true enabler for ABC’s success today and tomorrow is its people. “At ABC, we believe that our greatest asset is our employees,” he says. “ABC takes employee development very seriously and makes it a high priority. Part of this development is participating in seminars, expos and developmental courses in each field. We’ve established an internal training academy and created programs specific for retail and our way of business and enrolled key people in them. We also built a talent academy to retain, motivate and promote talents.” ABC’s investment into its people matches that of its investment into technology. It has and will continue to prove key in enabling opportunities and growth into the future. “We will continue to invest in innovation, technology and people,” says Harb. “We’ll do this to keep them updated and to not allow them to become obsolete or lose the investment placed in them and to continue to be the retailer of w w w.gi ga bi t ma ga z in e. com
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“ We will continue to invest in innovation, technology and people” — Elie Harb, Head of IT and PMO, ABC
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choice in the country.” The future is bright for ABC. The company has already begun to make inroads into ecommerce and omnichannel that will be launched in 2019 and is also in advanced negotiations with some major brands to represent them in the country. As Harb looks to that future, he can reflect on the digital journey of ABC and the lessons learned along the way. “It has been a challenging and interesting journey. The main take away would be to always challenge the status quo, build on solid ground by choosing the right partners, technologies and peoples and always be on the watch for disruptive technologies or market shifts. Internal communication, openness and team work are also key in any venture. “From our past experience, we believe that constant evolution by pushing our limits and boundaries, market and trends awareness, employee development and most importantly customer satisfaction are the main pillars to achieve business success.”
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Navigating digital transformation in Saudi Arabia with Fakeeh Healthcare WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
CR AIG DANIEL S
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Executive Vice President of Fakeeh and Chairman of Kameda Arabia, Sanjay Shah, discusses how his group is embracing new technology systems amid rapid change across Saudi Arabia
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n an era of technological change, it has become vital for all companies to innovate
in order to stay ahead of their rivals. In a country driven by transformation, Fakeeh Healthcare has been a pioneer in the healthcare industry in Saudi Arabia. Since it was founded by Dr. Soliman Fakeeh in Jeddah in 1978, Fakeeh has experienced two major expansions in the form of the 1986 inauguration by King Fahd bin Abd al-Aziz, which saw the facility’s inpatient capacity increased, and the addition of two new structures to the Fakeeh JANUARY 2019
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Hospital campus in 1999. Executive Vice President of Fakeeh, Sanjay Shah, believes that its Fakeeh’s willingness to improve its services consistently that has acted as a catalyst for this success. “Fakeeh’s journey began with the current president’s father, the late Dr. Solomon Fakeeh, and he was really the key reason for the company’s early success,” says Shah. “That tradition has carried over with under his son’s leadership and completely changed the face and the path of Fakeeh. We have increased the visibility, penetraw w w.gi ga bi t ma ga z in e. com
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tion, pioneering to become leading edge. We’re very proud of our legacy and heritage and we want to continue that as much as we can.”
CONFORMING TO THE SAUDI VISION 2030 Shah draws on Fakeeh’s determination to help improve lives as a key reason it has achieved such significant success. “We are all about transforming lives,” he notes. “Fakeeh is known in the market for its clinical excellence and compassionate care. One of the most important attributes is that it believes in health edu– cation and that remains the real differentiating factor from our competitors.” As the Kingdom of Saudi Arabia looks to diversify its reliance on oil and seeks to develop public services such as education and health, it remains vital that all companies align themselves to the Saudi Vision 2030. Shah believes that Fakeeh are taking its contribution to it very seriously. “We’re incumbent on developing the 2030 plan and improving the wellbeing of the populations of Saudi. We take the primary care element very seriously and it’s a very important part of the vision for 2030,” says Shah. “Developing private medicine and transferring some of the w w w.gi ga bi t ma ga z in e. com
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assets perpetually from public to private
introduced a new hospital information
ownership or operation is a very
system called Yasasii, which was
important element and we want to
formed out of a joint collaboration
participate in that,” he adds. “We
between an Indian and Japanese
really want to be the cornerstone of
software house. The system, which
this vision. We welcome and encour-
utilises all aspects of a healthcare
age it and we look forward to playing
institution, ensures healthcare profes-
a significant part in this exciting
sionals can monitor the functioning and
transformation for the Kingdom.”
management of all departments while also increasing Return On Investment
EMBRACING NEW TECHNOLOGICAL SYSTEMS
(ROI) for the company and saving lives.
In order to keep up with the latest
embrace disruptive technology at an
technology trends, Fakeeh has
increased rate,” explains Shah.
“We are seeing the whole industry
Transforming Care Infant Protection and Staff Duress Contact our MEA office today at stanleyhealthcare-mea@sbdinc.com
©2018 STANLEY Healthcare. DOC-23-00120-AA
MIDDLE EAST
CLICK TO WATCH : ‘FAKEEH SMART HOSPITAL’ 307
“ We’re incumbent on developing the 2030 plan and improving the wellbeing of the Saudi population. We take the primary care element very seriously and it’s a very important part of the vision for 2030” — Sanjay Shah, Executive Vice President, Fakeeh Care
“Fakeeh’s focus is to make technology a true enabler. It’s about patient care from the outset and returning patients safely back into the community and into their homes. We want our tools to embed the best practices that are beginning to come to market and we want to utilise machine learning and artificial intelligence in order to enable faster access and reach the best outcomes for patients and improving patient safety.” As the only standalone primary care location in the Gulf Cooperation Council to be awarded a HIMSS 6 certificate w w w.gi ga bi t ma ga z in e. com
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(a significant milestone for professional development of knowledge in the field), Shah credits Fakeeh’s technology platform as key to his significant achievement. “It’s a very big accolade for our technology platform which I believe is one of the most superb platforms I have come across,” affirms Shah. “It’s helped decision making for all members within the care community, whether that be a physician, pharmacist or nurse, from management information all the way through to complete technician support. We have a very powerful platform and we 308
want to grow that as much as possible.” With technology becoming increasingly vital to Fakeeh and its patients, Shah believes that the implementation of the company’s new digital tools has allowed the firm to provide its hospitals with the latest innovations. “We are using the latest technology tools in our smart hospitals to provide the latest technology for a superior hospital experience, similar to a luxury hotel. We have also set up an offshore regional research hub in southern India to enable smarter and automated techniques,” explains Shah. “We have already introduced robotics in some of our operation departments in order to remove low JANUARY 2019
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Sanjay Shah A Board Member & Executive Vice President at Fakeeh since 2015, Shah has overseen the development of the state-of-the-art 260 bedded hospital, rehab and academic medical centre in partnership with University College of London Hospital in Dubai. The projects Shah is currently working on include eight Family Medical Centres in Saudi Arabia and UAE, diabetes and urgent care centres in Jeddah and Dubai, and Surgical Tower.
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“ We are using the latest technology tools in our smart hospitals to provide a superior experience, similar to a luxury hotel” — Sanjay Shah, Executive Vice President, Fakeeh Care
310
end tasks and we will continue to invest in this technology. We see technology giving us a special advantage over our competitors and see this as our core competency.” Looking to the future, Fakeeh plans to diversify the business by developing JANUARY 2019
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a hospital and medical university in
centers of excellence, such as neurosur-
Dubai Silicon Oasis in a bid to estab-
gery, cardiac, cardio-thoracic, spine
lish the brand in the United Arab Emirates.
surgery, orthopedics, oncology and
Shah believes that new facilities such
ENT. It’s a very unique set up and its
as this are key to the future growth
one of a kind with nothing similar
and development of Fakeeh. “It’s a
currently available in Dubai.”
very important facility,” he says. “We are going to have a helicopter pad in order to cater for trauma patients. We’re trying to provide to a market which is going to be very distinctive and must deal with trauma cases, 311
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Reinventing the automotive industry
WRIT TEN BY
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M ANUEL NAVARRO
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Mauricio Mazza, CIO at Mercedes-Benz Brazil, offers the keys to Daimler’s digital transformation through innovation, sustainability and employees
D
aimler AG belongs to that select group of companies that has had the privilege of forging history.
314 The history of the automobile began in 1886 with Daimler’s first motor carriage and Carl Benz’s three-wheeled vehicle. Since then, Daimler has been synonymous with tradition, quality and innovation. This stamp is printed in its five divisions: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. Mauricio Mazza, CIO at Mercedes-Benz Brazil, one of the companies of Daimler AG, explains the great responsibility of the company in Brazil as the leader in innovation in the automotive industry.
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THE BASIS FOR THE FUTURE, IN THE CULTURE SHIFT Daimler founded its Brazilian production plant in 1956, in the city of São Bernardo do Campo (São Paulo). It was one of the first automotive manufacturing companies that decided to start operations in the country, thanks to the opportunities in the truck manufacturing market. Mazza begins: “The community had a strong participation in making this possible, as we covered the heavy need for transportation through trucks 316
and buses to move people and goods
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“ As a company, Daimler has confidence that our history and our culture are strong assets that we have to use” — Mauricio Mazza, CIO at Mercedes-Benz Brasil
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CLICK TO WATCH : ‘MERCEDES-BENZ MUSEUM: AWAKEN YOUR INNER CHILD’ 317 around. I think the company has very
culture, that allows us to continue
strong ties with Brazil and what makes
growing while being relevant for the
us unique, besides this strong link, is
economy of Brazil,” Mazza analyses
that we have a very broad portfolio of
about the beginnings in Brazil.
products that has, in many ways, adapted to the Brazilian reality.” “We also have dense penetration
From this strong market position, Daimler is going through a deep cultural change in its strategy and internal
in the different logistics areas in the
culture. That change, of course, is
country: transportation for retail,
based on innovation. “We always had
for agribusiness, for oil and gas, for
a very strong culture of innovation;
chemicals and for several different
I think this is something that in the DNA
types of industries is essential. That
of Daimler, ever since the founding of
has positioned us uniquely in terms
the company. We always had strong
of knowledge of the market, relation-
engineering departments here in Brazil
ships with key players as well as the
particularly; it was something very w w w. g i g a b i t m a g a z i n e . c o m
L AT I N A M E R I C A
important in the company, and we live
big investments that we are deploying
up to those standard.”
to redesign our plant. We believe that
“It’s not innovation per se and alone,
every innovation is important and
but innovation applied to the busi-
that it belongs to everybody. All the
ness that moves into efficiency. We
employees in the company.”
have the recognition mechanics, the and from the whole board on really
INNOVATION IN MANUFACTURING ENGINEERING
developing innovative solutions that
As Mazza states, innovation at all levels
don’t necessarily need to be big and
is the key to Daimler’s transformation
expensive. It does not matter if it is
in Brazil: “We have been making a huge
a small detail on the shop floor or the
investment for the last two years in
support from specific departments
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Mauricio Mazza graduated in Mechatronics Engineering in 1999 from the Polytechnic School of the University of São Paulo, Brazil. For over 16 years Mauricio has worked as a consultant, helping clients through the challenges of business and technology innovation, enabling them to become more relevant and valuable. Whilst always valuing and respecting everyone’s insight — client or colleague, analyst or VP — Mauricio’s down-to-earth yet empowered approach allows him to contribute at both operational and executive levels, building relationships rooted in credibility and trust. Mauricio developed his skills serving different clients, industries and cultures, with over three years of international experience working in the US and Europe, besides multiple locations within Brazil.
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C OMPA N Y FA C T S
• Daimler divisions are Mercedes-Benz Cars, Daimler Trucks, MercedesBenz Vans, Daimler Buses and Daimler Financial Services • In 2017, the Group sold around 3.3 million vehicles and employed a workforce of more than 289,300 people in the world • The history of the automobile began in 1886 with Daimler’s first motor carriage and Carl Benz’s three-wheeled vehicle • Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa • In 2017, Daimler generated €164,330mn in revenue
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redesigning and rebuilding our own factory. We are trying to rebuild our production lines and our logistics infrastructure around the new digitalisation and automation capabilities that are there in the market, or that we are pioneering or inventing.” “In general, we are driving around 15% to 20% efficiency with the new layouts of the logistics and production. Previously, we had two assembly lines, but we amalgamated them into one single line that is more efficient 322
than the other two combined with more flexibility” – explains Mazza – “We are applying the same concepts of flexibility and digitalisation to the assembly lines for chassis, engines, trucks, gearboxes and cabins.” Besides that, for even further enhancements in its digitalization strategy,
is not only on the company and the
Daimler Brazil is partnering with tech-
employees, but also for the client, as
nology giants such as Microsoft, IBM,
we have a parallel improvement in
T-Systems and additional partners such
terms of quality, failure prevention,
as start-ups and niche players such as
vehicle testing and a series of activi-
Semantix as well as hardware/automa-
ties to create better, more technologi-
tion solution partners like Durr.
cally advanced and safer products.
Subsequently, the positive effect
Our customers are the first ones to
of this transformation is spreading
benefit and we believe that by the
across all stakeholders. “The effect
time Brazil recovers as an economy,
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our production figures will probably increase significantly, because we are in a better position to fulfil our customers’ requirements, more efficiently.”
PEOPLE, PLANET AND PROFIT Sustainability, as a driving force for change, is also a priority for Daimler in Brazil and part of its culture shift. As Mazza explains: “People, Planet and w w w. g i g a b i t m a g a z i n e . c o m
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“ We have a very strong culture of innovation, ever since the founding of the company” — Mauricio Mazza, CIO at Mercedes-Benz Brasil
ronmental regulations, but also going further and trying to offer something really relevant for society and the local community around us.” This approach is ingrained in the sales strategy of the company, as Mazza explains: “It needs to make economic sense – we believe that we have to not only focus on being green, on being environmentally correct, and empowering our people. We need to do that in the direction of maintaining the company’s profitability while ensuring that the initiatives are profitable for sale on this journey.”
Profit, the three Ps, is a framework out in the market. You have to make
PARTNERSHIP IN A CUSTOMERCENTRIC ERA
a combination of these three dimen-
As Daimler Company in Brazil we are
sions to be successful in terms of
laying a very clear vision for the future,
sustainability.”
challenges lay ahead. This includes the
that has been more and more used
“In São Bernardo we have our huge
manufacturing of e-vehicles, and car-
manufacturing plant, and also a hos-
rying on with building trust in the brand.
pital sponsored by the company and
“Electrical is definitely a very strong
a firefighter station that not only serve
component of the strategy. Daimler
the company but also the local com-
launched the fully electric vehicle called
munity around the plant. We are, in
EQC in Stockholm on September, 4th
both ways, from a people and a planet
– our first 100% electrical vehicle.”
perspective, very concerned and active not only to withstand local envi-
“The electrification of the powertrain is not our only priority, but we also w w w. g i g a b i t m a g a z i n e . c o m
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“ I think every company in the automative industry is facing one very big challenge: reinventing themselves” — Mauricio Mazza, CIO at Mercedes-Benz Brasil
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have to understand how we can make the usage of our products more efficient both economically for our customers and the environment. We want to make sure our vehicles are shared and that they have a better occupation of the capacity of the equipment and the assets. This is definitely a significant
L AT I N A M E R I C A
part of our strategy that is not only
one in the market will be able to offer
a long-term dream but a dream that is
solutions by himself to all kinds of prob-
turning into reality as we speak.�
lems that our customers could have.
For Mazza, liaising with Daimler’s
It involves collaboration, partnership
customers in Brazil is an integral part
and a combination of strengths and
of facing the future: “I think the key
openly talking about your weaknesses
message is to be open to listen, and be
and where you can improve. All this
humble enough to understand that no
technology and the wider trends need
327
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Welcome to the
Visioneering
Group
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to be used to become really customercentric to solve your customer’s problems or requirements and fulfil their expectations, comprehensively.” “I think every company in the automotive industry is facing one very big challenge: reinventing themselves. That is, trying to understand how the future will look; what the future is holding for us in the next 20, 30 years. What will the role of mobility be in a new fully digital society, and how can digital change impact our business? I think one important challenge
JANUARY 2019
1956
Year Mercedes-Benz do Brasil founded
+ 10,000 Approximate number of Mercedes-Benz do Brasil employees
L AT I N A M E R I C A
CLICK TO WATCH : ‘MERCEDES-BENZ | PEÇA PARA UMA ESTRELA’ 329 is to understand the digital mechanics of the industry.” “As a company, Daimler has confidence that our history and our culture are strong assets that we have to use. We are also very aware that the past success is no guarantee of a future success, so we have to be very smart, to be very alert and to be very sensitive to the changes that are going on in the market,” concludes Mazza.
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M A N U FA C T U R I N G
WORKING TO SOLVE WHAT MATTERS WRIT TEN BY
M ARÍA COBANO-CONDE
PRODUCED BY
M ANUEL NAVARRO
331
SIEMENS
HOMERO JAVALERA, DIRECTOR OF OPERATIONS, EXPLAINS THE TRANSFORMATION THE MONTERREY PLANT UNDERWENT WITH THE LATEST TECHNOLOGICAL INNOVATIONS
S
iemens enjoys a privileged position as one of today’s leaders in the industries of technology, health-
care, and solutions for the processes of electrification and digitalisation. 332
Siemens may be defined as an actor that understands what truly matters in today’s society: the extreme urbanisation of the planet, globalisation, digitalisation, climate change, and the ageing of the population are some of the hot topics for which Siemens creates solutions that leverage change. All this is focused on the creation of a catalogue and implemented in three cornerstones: automation, electrification, and digitalisation. Its production plant in Monterrey (Mexico) is going through a digitalisation renewal process that is making its manufacturing processes more agile and efficient – it’s truly a factory from the future. Homero Javalera, director of Operations in Siemens Mexico, has been at the forefront of JANUARY 2019
Homero Javalera, Director of Operations for Siemens Mexico
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“SIEMENS HAS AN IIOT (INDUSTRIAL INTERNET OF THINGS) OPERATIVE SYSTEM CALLED MINDSPHERE, AND OUR 3.0 VERSION IS IN THE SERVERS OF AMAZON WEB SERVICES” — Homero Javalera, Director of Operations for Siemens Mexico
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JANUARY 2019
the plant’s operations for four years, a labour that has earned him awards as renowned as the Global Siemens AG Award 2016 (Werner von Siemens Award) for the best global performance, the biggest recognition awarded by Siemens in the entire corporation.
THE COMBINATION OF TWO BUSINESS AREAS The most relevant development that Javalera may have had in his adminis-
L AT I N A M E R I C A
CLICK TO WATCH : ‘SIEMENS — MANIFIESTO INTERNACIONAL’ 335 tration to date has been the fusing together of two production plants into
$220mn and over 20mn units per year.” Javalera delves into the plant creation
today’s Monterrey plant, where work is
process: “What we did was bring two
done in three different areas. “I took
factories together into one – we had
care of the transfer of two business
a single type of product here, and then,
areas and the coordination of the
we brought over two more from two
whole team, a task that consisted of
different factories. Now, we have three
building warehouses, hiring 1,000
types of products in Monterrey:
people, implementing ERP (Enterprise
residential circuit breakers, industrial
Resource Planning), redirecting the
circuit breakers, and safety switches,”
entire supply chain and all the suppli-
Javalera analyzes. “This isn’t just
ers, contacting internal clients and
a manufacturing facility; it’s an Investi-
investors, buying new equipment, etc.
gation and Development center as we
We have 1,500 employees in the
design and launch new products here
factory, and we sell approximately
as well. We have a group of researchers w w w. g i g a b i t m a g a z i n e . c o m
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SIEMENS
conducting advanced materials investigations using nanotechnology, and another group doing Investigation and Development with the supply chain group from Global Procurement in the areas of automation and digitalisation here in this organisation as well.” “This is truly a company doing complex things, a company facing today’s most complex challenges. It generates technology to address issues such as climate change, energy distribution, clean energy generation... our portfolio 338
is vast in that sense. We also address the issue of the planet’s extreme urbanisation, and to do so, Siemens’s catalogue serves, for example, mobility, trains, smart buildings, and energy consumption control in urban concentrations. We have the opportunity to contribute that to our clients. Digitalisation is a global trend and a priority for Siemens. Through our portfolio, we provide solutions for our clients, and we’re also developing our internal systems. For example, we’ve grown very much in comparison to previous years with clients such as Amazon, Facebook, and Microsoft given the investments they’ve made in infrastrucJANUARY 2019
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“SIEMENS IS MIGRATING TOWARDS BECOMING A COMPANY THAT IS THOROUGHLY ABOUT DIGITAL TECHNOLOGY” — Homero Javalera, Director of Operations for Siemens Mexico
ture such as data centers. The world is going electric, and Siemens has this whole catalogue.”
DIGITAL TRANSFORMATION FROM THE INSIDE Siemens Mexico doesn’t create innovation for its clients only, but it also applies it to its production processes. The radical changes in the plant’s production lines were a result of introducing the most relevant trends in digitalisation to maximise resources. Javalera explains
how this change developed. “The change has been exponential in the last years, not so much before then. Ten years ago, we made very slow changes as needs would arise and according to the available technology. Now, we have a deeper understanding of digitalisation and automation; technology is more readily available, and new generations are entering the labour market with different skills in digitalisation.” “Change in the past three or four w w w. g i g a b i t m a g a z i n e . c o m
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Proud Partner of Siemens Monterrey MX Digital Transformation
Smart Man Manufacturing www.InnovarSystems.com www.Innovar
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The Siemens Mexico management team
341
years has been exponential indeed
transition and application of digital
since, 10-15 years ago, we hadn’t done
technologies: “Digital Factory is our
what we’ve been doing lately. For
division leading us through the
example, mobile technology already
digitalisation process – they have the
existed then, but today, new communi-
entire portfolio, and it’s quite vertical.
cation protocols in mobile technology
It includes the physical elements
allow for the exchange of data in
necessary to connect the machines
massive amounts and at unbelievable
and generate data as well as the
speeds. This way, data from thousands
elements for interconnectivity and
of connections in your production lines
industrial networking purposes. Our
may be connected in real time and be
Siemens PLM division has an entire
used in a very valuable way.”
software portfolio for the different
Siemens Mexico has its own team of experts in charge of leading the
stages in our digitalisation, and it also has the design software Siemens NX w w w. g i g a b i t m a g a z i n e . c o m
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COMPAN Y FAC TS
• Siemens Mexico employs 1,500 collaborators in its Monterrey plant • On average, Siemens Mexico generates $220M in revenue, and it sells 30M units per year
342
1847
Year founded
372,000 Number of Siemens employees globally
$95bn+ Revenue in fiscal year 2017
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Siemens building in Monterrey, Mexico
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to create digital twins of industrial processes and/or products such as cars, airplanes, circuit breakers, etc.” By executing a circular strategy, Siemens uses these same digital processes to leverage the efficiency of the products it offers to market. “For example, you can monitor the efficiency of our electricity generation turbines in real time. You can monitor the efficiency of the electric distribution and make decisions on the spot. Also in real time and through customised solutions tailored to your needs, you can monitor and distribute energy in a smart way in cities and buildings. Even at the production line level, through Siemens’s portfolio of software and hardware, you can know which engine is consuming more energy, or you can know what the peak times of energy consumption are in a smart building to implement energysaving projects,” he concludes.
INNOVATION APPLIED TO MANUFACTURE PROCESSES In Siemens’s Mexico particular case, the application of digital innovations is accomplishing a very high level of w w w. g i g a b i t m a g a z i n e . c o m
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CLICK TO WATCH : ‘SIEMENS MÉXICO— DIGITALIZATION’ 344 satisfaction with processes, produc-
of dollars by preventing potential
tion, and manufacturing. Javalera
failures from errors in the design of
offers exclusive information on this
the productions lines. Moreover, once
newly obtained acceleration: “We can
it’s running, you can make sure its
save on months of prototype develop-
efficiency is as close as possible to the
ment, long hours of engineering, and
efficiency you expect from production,
lots of money in materials and tools
emphasising automatic management
by simply creating digital twins for the
of the client’s demands, where we have
products before launching them.”
much less human intervention.”
“Before ordering new machinery
In matters of production execution,
and investing hundreds of thousands
we monitor the performance of the
of dollars in equipment, simulations
lines in real time, and we receive
are designed by computer right at the
an immediate response whenever
production line to determine what is
a problem arises. Regarding quality
really needed. This saves up thousands
and product safety, in very critical
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“ O UR DIGITAL FACTORY IS LEADING OUR DIGITALISATION” — Homero Javalera, Director of Operations for Siemens Mexico
345
processes, we accomplished having
need to do a maintenance intervention
deep and detailed traceability at an
so the machine won’t fail. In the future,
individual level for each of the 30 million
we’re moving up to a prescriptive level
units we make every year. We have
in such a way that the system itself will
a “birth certificate” for every one of
give instructions, carry out maintenance
them, a matrix code that is unique for
activities automatically, and even
every product. All of that is available in
create purchasing orders [for parts]
the cloud, and we can make inquiries,
promptly. Whenever the replacement
analyse, improve, monitor, etc. through
part is ready in the warehouse, it will
applications.”
create and send a maintenance work
“For machine maintenance, we’re
order to be executed.”
installing additional sensors, connectivity modules, HMIs, and PLCs. We are
SOLID ALLIANCES WITH COLLABORATORS
getting them connected so they can let
Siemens Mexico is proud to offer its
us know in a predictive way when we
avant-garde innovation to clients as w w w. g i g a b i t m a g a z i n e . c o m
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“GENERATING TECHNOLOGY TO TAKE CARE OF ISSUES SUCH AS CLIMATE CHANGE, ENERGY DISTRIBUTION, CLEAN ENERGY GENERATION... OUR PORTFOLIO IS EXTENSIVE IN THAT SENSE” — Homero Javalera, Director of Operations for Siemens Mexico
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renowned as Microsoft, Facebook, BMW, General Motors, and Ford, and this is thanks to its collaboration with top companies as well as with partners and suppliers. This has been evidenced by the recent association of Siemens with Amazon Web Services, the digital giant: “Siemens has an IIoT (Industrial Internet of Things) operative system called MindSphere, and our 3.0 version is in the servers of Amazon Web Services. These servers have a superior processing capability when 348
compared to what we have internally and to what we’ve seen from other potential partners.” “Amazon’s processing capability is brutal; it’s very fast, and it can process a huge amount of data simultaneously. Our operative system is installed there. We already started by implementing the first application, and we plan on connecting over 550 pieces of equipment. Every piece of equipment will have at least 10 connection points; that is, over 5,500 connection points that will generate millions of data.” The company also enjoys an excellent collaborative relationship with its suppliers, such as ARRK, for example. JANUARY 2019
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A specialist in product development, it has been a global supplier of prototypes and production tools for Siemens since 1997, working jointly in many different divisions including Siemens Medical. This year, it has been in charge of the largest version of a toolkit for a single provider. In great measure, said collaborations drive digitalisation in Latin American, enriching and leveraging transformation. Javalera analyses the digital disruption situation in the region: “Here, we see it at our operation’s level. Job positions are truly changing. The demand for process engineers is decreasing, and so is the demand for data entry clerks, inspectors, etc. However, there is a higher demand for programmers, applications developers, and people who know about automation, PLCs, industrial networks, and big data analysis.” “That is a challenge; there will be a huge demand, and there won’t be enough people to fulfill it. We’re going to need to hurry up, both the industry and universities, in order to develop the necessary skills. Another important challenge is implementing a big part of w w w. g i g a b i t m a g a z i n e . c o m
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the innovation in digitalisation. The industry needs to be more willing to invest and experiment without the burden of traditional accounting. The value is clear, and it does exist, but on occasion, it will be difficult to calculate an immediate return of investment.” Siemens Mexico has defined its strategy to continue transforming itself in the future: “Siemens is migrating towards becoming a company that is thoroughly about digital technology. Regarding software and digital 350
services, we grew 20% last year, with a revenue of over $5.78 billion – Siemens is already the eight largest software company in the world in terms of size. We’ve acquired over $11.55 billion in software in the last 10 years. We’ve also
Homero Javalera and Miguel Guerrero
increased our investment in investigation and development significantly in the last few years. Almost $7 billion will
“In California, we have the Next
go to Investigation and Development
47 division, which works as a kind of
every year. This includes both the
catalyst for startups. For the next five
digital and automation areas as well
years, Siemens sets aside $1.16 billion
as the areas of additive manufacturing,
for Next 47, and it’s mainly working
autonomous robots, blockchain
with 3D printing, IoT, robotics and
applications, Artificial Intelligence,
drones, artificial intelli-
advanced materials, and energy
gence, augmented reality,
storage among others.
and virtual reality.”
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Collecting the Global Siemens AG Award 2016 (Werner von Siemens Award) for best global performance, the highest recognition granted by Siemens
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“We are not only helping with capital, but Siemens connects these startups with either our partners or with Siemens itself to see how to implement their proposals in the industry. We also get them closer to both the industry and potential clients,� concludes Javalera.
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