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OCTOBER 2018
Taking the human lead in capital management
Enabling supply chain transformation ORADIAN FINTECH PRODUCTS THAT MAKE A REAL DIFFERENCE
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WELCOME
W
elcome to a jam-packed October issue of Gigabit magazine. The role of supply chains is changing at breakneck speed, driven by a worldwide business movement towards digitisation. Companies of all sizes are attempting to transform their supply chain and procurement functions, with varying degrees of success. We speak to Dr Stijn-Pieter van Houten, Director Supply Chain Strategy & Operations for Deloitte NW Europe and Arjan de Witt, Manager at Deloitte Consulting, who are changing the perception of consumer businesses and retailers about how effective supply chains operate. Elsewhere, our expert digital strategist this month is Ceridian’s Managing Director for Europe, Ross Tracey. Ceridian is taking the lead in human capital management and Tracey is the driver behind the UK launch of its disruptive Dayforce platform. Ceridian – a leader in the human capital management sector since its foundation in
1992 – believes it has the answer to this growing demand. Elsewhere we talk to business leaders at MONETA Money Bank and Align, among many others, who address the burning issues affecting their respective companies. Our Digital Disruption feature this month focuses on fintech products currently making a real difference in industry as Marko Elezovic, Head of Technology at Oradian, discusses the potential impact of technology on financial inclusion. Our Top 10 list details the standout IT service providers in the world, as ranked in Everest Group’s 2018 Service Provider of the Year awards. Plus, we provide an exhaustive list of the best events and conferences from around the globe. Enjoy the issue! Andrew Woods. andrew.woods@bizclikmedia.com w w w. g i g a b i t m a g a z i n e . c o m
05
Taking the lead in human capital management
28
40
52
Building fintech products that make a real difference
12
Deloitte UK Europe
72
92
Europe
Europe
Mellanox Technologies
Uniper
108
Blockbase Europe
122
140
Europe
Europe
MONETA Money Bank
Coface Israel
150
164
180
North America
North America
North America
PwC
194
Sanlam Personal Finance Africa
Align
208
Old Mutual Iwyze Africa
PBL Insurance Ltd
222
Coal Services Pty Limited Asia-Pacific
236
248
262
Asia-Pacific
Asia-Pacific
Asia-Pacific
Brightstar Corp
274
BAI Communications Asia-Pacific
Jabil
292
Al Ahli Bank of Kuwait Middle East
SCT Group
304
Balsharaf Group Middle East
12
Driving supply chain transfor– mations WRIT TEN BY
JA MES HENDERSON PRODUCED BY
RICHARD DURR ANT
OCTOBER 2018
EUROPE
13
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DELOITTE
Deloitte’s supply chain practice is helping companies across Europe implement critical supply chain transformation and digitisation programmes
T
he role of supply chains is changing at breakneck speed, driven by a worldwide business movement
towards digitisation. Companies of all sizes are attempting to transform their supply chain and procurement functions, with varying 14
degrees of success. And while the arguments for digital transformations seem to have struck a chord with executives, implementation is not happening as quickly as one might have expected. A recent industry study found that while 83% of respondents believe digital transformation will be impactful, only 5% of respondents have highly automated processes. With such a discrepancy between aspiration and execution, companies are increasingly turning to global supply chain practices to help them devise a pathway to effective supply chain transformation and digitisation, with Deloitte being a prime example. Key to this pathway, says Dr Stijn-Pieter van Houten, Director Supply Chain Strategy OCTOBER 2018
Stijn-Pieter (front) and Arjan (back)
EUROPE
15
2016
Year of North Western Europe integration
30,000 Employees
London Headquarters
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EUROPE
& Operations for Deloitte NW Europe,
tailored products that suit their needs.
is changing the perception of FMCG
Further, established retailers are
businesses about how effective
being pressurized by e.g. ecommerce,
supply chains operate.
discounters and convenience channels.
“Companies often still pursue a ‘one
The result of these trends is that increas-
size fits all’ approach when it comes to
ingly different types of products are
supply chain where the way they plan,
coming to the market and that increas-
produce and distribute their products all
ingly the service levels demanded from
follows the same pattern from a supply
FMCG companies are becoming more
chain and even technology perspective,”
stringent. So, it makes sense for FMCG
he comments.
supply chains to move to a model
“But what we are seeing increasingly
whereby different (virtual) supply
is consumers are becoming more
chains are created and managed for
demanding, and they want to have more
distinct groups of products and/or 17
E X E C U T I V E P R OF IL E
Dr Stijn-Pieter van Houten “SP” is a Director at Deloitte Consulting in the Supply Chain Strategy service line of Deloitte’s Strategy and Operations Practice since February 2018. He has been working for over 11+ years with primarily Consumer Products clients in developing and delivering competitive supply chains in terms of cost, operating models and (digital) innovation. His experience is focused on leading Supply Chain work in the areas of: • SC Strategy & Transformations • Operating Model Development • Supply Chain and Integrated Business Planning • Customer Centric SC Design
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DELOITTE
customers. Organisations will have to ensure that their supply chains become more differentiated and adapt them to changing customer (and consumer) demands, while managing their cost to reach the right profit levels.” Besides differentiation, part of a successful future setup also requires supply chains to be truly synchronized from and end-to-end perspective. What seems clear though is that for all the talk of collaboration, there are still stark disconnects between supply chain functions such as demand planning, warehousing, logistics and customer service, all of which 18
have often their own separate set of targets driving particular behaviours and outcomes. This is then besides the lack of integration between commercial, finance, innovation and supply chain. The lack of end-to-end planning and synchronisation, says van Houten, is hampering the supply chains of even some of the world’s largest organisations. Analytics and increased supply chain visibility are also central to the supply chain transformation blueprint, he adds. “We know that the market place is volatile, so companies need to be aware of trends and changing customer demands. Products can very quickly become popular and gain traction cross social media, so companies need to have the insights & foresights (“sense” and OCTOBER 2018
“ For supply chain we have a specific supply chain digital experience where we also show the impact of technological disruptions and emerging trends” — Arjan de Witt, Manager at Deloitte Consulting
EUROPE
CLICK TO WATCH : ‘LET’S DO THIS – MAKE YOUR IMPACT WITH DELOITTE’ 19 capabilities that enable them to move quickly (“respond”) when that happens. In an increasingly crowded and competitive market place, Deloitte’s clients are asking for non-traditional services in a bid to remain successful and be customer centric, according to Arjan de Witt, Manager at Deloitte Consulting. “Across all of our projects, our clients are consistently asking us to help them adapt to this new world and advise them on new ways of working. In years gone by, a client would just want to see a presentation but now we’re providing them with proof of concepts or run pilot programmes with them. Our clients recognise that change is going w w w. g i g a b i t m a g a z i n e . c o m
DELOITTE
20
on, and expect us to inform them what
As part of the journey to under-
that means for them as a business.
standing the ‘art of the possible,’
For us it means that we have to work
Deloitte leverages its ‘Digital Garages’
very closely with our partners and
– with a new one soon to be opened
leverage our eco-system to really
in Amsterdam. “These are really
provide our clients with a competitive
energetic, start-up like, environments
edge. What we have proven we can
where we take our clients and hold
do is bring fresh insights that inspire
discussions about the different digital
them – we help them to understand
building blocks, how they fit together
‘the art of the possible’.”
and how they should operate in our
OCTOBER 2018
EUROPE
“ What we have proven we can do is bring fresh insights that inspire them – we help them to understand ‘the art of the possible’” — Arjan de Witt, Manager at Deloitte Consulting
21
clients’ companies,” says de Witt. “For supply chain we have a specific supply chain digital experience where we also show the impact of technological disruptions, emerging trends and what you can do to adopt them in your supply chain and organisation. We do this by creating a serious game environment where we really want to not only showcase the technologies but w w w. g i g a b i t m a g a z i n e . c o m
DELOITTE
also give them subjects to think through. We’re working in collaboration with our eco-system of partners to make the experience as valuable as it can be.” But for any transformation to work, companies must ensure that their employees are prepared to embrace the ‘change journey,’ says van Houten. “You can put in as many tools and new processes as you want, but if you don’t change the people, if you don’t change their behaviour and the way they look at their business then it’s never going to work on 22
the mid- to long term. Ultimately, we train our clients’ people to change their businesses so they work end-to-end with their customer in mind. You have to really look at a business end-to-end and ask how do day-to-day activities and decisions impact the customer and consumer at the end of the supply chain? “It’s also really important that companies encourage collaboration across all of their departments in an effort to really break down silos and business functions. That’s the best way to think about what is best for customers and develop the optimum organisational setup to sustain and improve a segmented way of working across function, while delivering the right services in a profitable way.”
OCTOBER 2018
EUROPE
“ Supply chains have to become more flexible and adapt to changing consumer and customer demands at an increasingly faster pace” — Dr Stijn-Pieter van Houten, Director Supply Chain Strategy & Operations for Deloitte NW Europe
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23
DELOITTE
24
THE VISUALFABRIQ CONNECTION Deloitte utilises VisualFabriq’s AI Enhanced Revenue Management Platform, says: “The VisualFabriq platform greatly reduces the routine work load for consumer-packaged goods organisations by largely automating demand creation, demand and budget reviews and promotion planning and making all of these available at the commercial level on which the sales organisation operates. “This means that organisations free up time from day-to-day routine work OCTOBER 2018
EUROPE
CLICK TO WATCH : ‘HOW WOULD YOU PLAN YOUR BEST TRADE PROMOTION EVER’
to instead focus on interacting
Besides these immediate benefits
strategically and tactically with their
for the commercial function, solutions
customers. In these interactions, the
like VisualFabriq are increasingly
AI-driven scenario planning further
becoming the forefront of customer
supports the account managers by
centric, synchronised supply chain
creating direct insight into a full range
setups driving better customer service
of options and showing the volume
and higher profit margins via tailored
and financial pros and cons in detail
supply chain responses.
with a much higher level of reliability than traditional estimations. It shows these outcomes both from the point of the manufacturer and the retailer, optimising for the choice for win/win scenarios.” w w w. g i g a b i t m a g a z i n e . c o m
25
October 29-30 2018
Meet the industry leaders who shape the Future of Mining in the Americas Confirmed conference agenda speakers include:
Ricardo Adame
Elena Mayer
Janice Zinck
John Mullally
Afzal Jessa
Gordana Slepcev
Pamela Hackett
Arun Narayanan
Group Executive Global Communications Newmont
Chief Digital Officer Vale
President & CEO Women Who Rock
Chief Operating Officer Anaconda Mining
Platinum Partners:
President, CIM & Dir. Green Mining Research Natural Resources Canada
CEO Proudfoot
Director, Government Affairs and Energy Goldcorp
Group Head, Data Analytics Anglo American
Lanyard Sponsor:
Silver Partners:
Tech Start-up Partners:
Supported by:
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1909
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WHY ATTEND? A packed agenda contains all the key themes shaping the future strategic direction of the industry.
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To download the full agenda and register visit americas.future-of-mining.com or email events@aspermontmedia.com
LEADERSHIP
28
Taking the lead in human capital management OCTOBER 2018
29
Gigabit Magazine hears the Ceridian story from Ross Tracey, the HCM firm’s Managing Director for Europe and driver behind the UK launch of its disruptive Dayforce platform WRITTEN BY
BEN MOUNCER
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LEADERSHIP
A
s technological change continues to
Gigabit Magazine. “What really
sear through businesses at a rapid
resonates is a single application
rate, one of the inevitable side-effects
with employee records and
is the impact it has on what remains an organisation’s core assets: its employees.
30
a rules engine. “Because Dayforce is a modern
One consequence of the human race
platform, we spent a lot of time
becoming more and more reliant on technol-
making sure that the experience
ogy is the expectation that it will power the
for the employee is very intuitive.
delivery of information or services anywhere,
Most employees want to engage
at any point and to anyone. The rise of
via a device, for example, so we've
companies such as Uber has reinforced
made that very easy for them.
these expectations, but this culture-shift
Each worker can track any work-
has created an interesting challenge for
related information on their
business owners.
personal portals.
Consumers are now carrying those demands into the professional environment, and in a landscape where advanced mobility and remote working are becoming the norm, a robust human capital management (HCM) solution is turning into a necessity. If organisations wish to recruit and retain the best talents, it needs to look after them more than ever. With its groundbreaking Dayforce platform, Ceridian – a leader in the HCM sector since its foundation in 1932 – believes it has the answer to this growing demand. “In my experience of working with Ceridian for nine years, I've had lots of interactions with HRDs, CIOs and Chief Financial Officers to find out what they're looking for,” Ross Tracey, its Managing Director for Europe, explains to OCTOBER 2018
“We’ve also been very conscious
“Because Dayforce is a modern platform, we spent a lot of time making sure that the experience for the employee is very intuitive. Most employees want to engage via a device, for example” — Ross Tracey, Managing Director, Ceridian Europe
and deliberate around the presentation and management of data within the platform. And that means we're able to deliver the right data to the right person, enabling them to make the right decision - whether that be employees, a manager, an HR person or a director.” The capability of Dayforce to bring a host of different employee management requirements into one solution is its primary selling point. While businesses may struggle to integrate various applications related to the field, Dayforce customers benefit from a unified suite that manages the complete employee lifecycle. In the United Kingdom, this is a wholly unique offering. Though it already operates with a number of UK-based clients, Ceridian officially launched Dayforce in the UK in July and Tracey believes that was a crucial next step for the United States-based company. “If you look at the UK in terms of its positioning, it's probably one of the top five countries which w w w. g i g a b i t m a g a z i n e . c o m
31
LEADERSHIP
“As an organisation, our mission is making the employee’s work life better. That mindset informs how we design products and introduce new features” — Ross Tracey, Managing Director, Ceridian Europe
34 tends to have both a domestic and
management functionality. While it
a really strong international presence
doesn’t offer a completely bespoke
in terms of organisations,” he says.
service, the platform is “highly config-
“Our North American customers who
urable” to the requirements of different
typically have an international pres-
businesses and its reporting mecha-
ence are very likely to have a UK-based
nisms ensure that any recurring
set of customers. But also, in terms of
needs are met.
growth for Dayforce, having a platform
Mobile functionality is high on the
that's able to meet requirements of
priority lists of Ceridian customers.
global needs makes sense in relation
According to Tracey, between 80-90%
to our fit in the marketplace.”
of the 2.5mn workers who are paid
An entirely-cloud based solution,
through Dayforce gain access through
Dayforce incorporates the newest
the mobile app. “It's one of the principles
technologies to provide clients with
of our architecture. Dayforce is only
human resources, payroll, benefits,
around six years old, and we've built it
workforce management and talent
around the mobile experience,” he says.
OCTOBER 2018
35 “The employee proposition is very
analytics capabilities that analyse the
different to employers. If you're trying
key factors related to ‘flight risk’, which
to get engagement and adoption of
is the likelihood of an employee leaving
your product, it needs to be intuitive.
an organisation. It is also intending to
It needs to work as easily and perform
expand its use of artificial intelligence
as well as any consumer application
to provide its customers with new
on a phone or tablet that’s out there.
insights and efficiencies.
Employees are able to do things like
“’Flight risk’ is an area of HCM that
shift-swapping, viewing of their sched-
will benefit from application-augment-
ules, seeing when they can take time
ed intelligence and artificial intelligence
off, their pay slips – all of this is available
technologies, leveraging the data
through their mobile phone.”
collected inside a single application like
A dedication to technology innova-
Dayforce,” comments Tracey. “Today’s
tion is keeping Ceridian at the forefront
modern worker is increasingly expected
of the industry. Earlier this summer, it
to jump from job to job. Companies need
rolled out enhanced predictive
the necessary tools to help identify high w w w. g i g a b i t m a g a z i n e . c o m
LEADERSHIP
performers that are at risk of leaving. “More generally, it is an exciting time to be in the HR tech space. As an organisation, our mission is making the employee’s work life better. That mindset informs how we design products and introduce new features.” Next year, Tracey will reach his tenth anniversary at Ceridian. After serving as its Chief Technology Officer for nearly seven years, he took up his current role in June 2016, leading on the remit to accelerate the firm’s growth across the continent. This is not a straightforward mission, with Ceridian competing directly alongside 36
established industry forces such as SAP, Workday and ADP. But with demands and technologies continually evolving, Tracey believes it is well placed to serve and grow its loyal customer base. “Disruption in the human capital management industry, like other industries, is inevitable,” he concludes. “Our introduction of Dayforce to the HCM market has been a game-changer. Its modern, scalable, cloud platform could be implemented quickly and efficiently – and drastically accelerated the speed at which our customers went live on our software. As we look to the future of work, we’re constantly innovating to bring superior user experiences to market.”
OCTOBER 2018
CLICK TO WATCH : ‘DAYFORCE – A CERIDIAN SOLUTION’ 37
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TECHNOLOGY
40
Building fintech products that make a real difference Marko Elezovic, Head of Technology at fintech company Oradian, discusses the potential impact of technology on financial inclusion WRITTEN BY
M ARKO ELEZOVIC
OCTOBER 2018
41
w w w. g i g a b i t m a g a z i n e . c o m
TECHNOLOGY
C
loud-based services have emerged as a revolutionary technology that is bridging the digital divide. The ability for anyone with
an internet connection to access world-class technology through the cloud is a game changer for banking technology and not only in developed, first world economies: now, even small financial institutions in hard-to-reach and remote areas can access worldclass banking services at their fingertips. Globally, 1.7bn people don’t even have access to a bank account, according to The World Bank. The organisation has tasked itself with a programme called UFA2020, aimed at guaranteeing Universal Financial Access by 2020 to services such as
42
a transaction account that could help families with day-to-day living and help businesses plan ahead. Frontier markets have huge potential yet are still deprived of some of the most basic banking services that consumers in developed nations are now accustomed to. Oradian designed its cloud-based core banking system, Instafin, specifically for financial inclusion and for the microfinance industry. It allows financial institutions such as rural banks to focus on their core business and outsource a cloud-based infrastructure that is regularly maintained and secure. Oradian has also optimised its digital toolset to work on low bandwidth networks for seamless integration with alternative delivery channels.
This is disruptive cloud In developed markets, cloud-based toolsets are improving the way services are provided, adding convenience OCTOBER 2018
43
“ The mobile revolution taught us that frontier markets such as Nigeria and India are not afraid to embrace technology” — Marko Elezovic, Head of Technology at Oradian
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Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter Click to read
w w w.bu si nessch ief.com
TECHNOLOGY
and speed to existing operations, processes, products and services. Compare this relatively minor
As many banks remain heavily
change to that in frontier markets,
dependent on legacy technology
where the entry of cloud technology
systems, suffering inefficiencies and
has been truly disruptive. It is changing
latency issues as they try to keep
the way financial institutions are
pace with the intricacies of modern
servicing their low-income and
banking, we are seeing first-hand
unbanked communities and rapidly
how disruptive cloud banking
increasing access to financial services.
platforms can be in frontier markets.
In fact, many microfinance institutions
46
Ease at accessing technology in frontier markets
Introducing cloud technology is
(MFIs) are leapfrogging traditional
shifting the way that microfinance
on-premise systems. They are moving
institutions operate in developing
directly from home-grown systems,
countries, leading to an unprecedented
Excel spreadsheets or even paper as
increase in the number of people
their main banking tool, to a fully digital
gaining access to financial services.
cloud-based core banking solution. Often, the core driver of adoption to
Cloud technology is built to overcome the challenges facing frontier
any fintech system is better operational
economies and financially under-
capacity. It allows our customers to
served populations. It brings technol-
focus on their core business – providing
ogy closer and accessible to even the
financial services – and on not technol-
less technologically savvy customers.
ogy provision. When outsourcing their infrastructure and services, they can retain their people investment for their operational processes. With an expert
Cloud interoperability and third-party integration Interoperability is when software
team maintaining the shared infrastruc-
such as mobile money applications can
ture, microfinance organisations have
exchange information and make use
consolidation and the ability to generate
of it. Before, users could send and
real-time reports. All this makes scaling
receive money only if they were using
up possible – at rapid rates.
the same mobile money app. To
OCTOBER 2018
Click to watch: Story about successful fintech company – Oradian 47
“ Frontier markets have huge potential yet are still deprived of some of the most basic banking services that consumers in developed nations are now accustomed to” — Marko Elezovic, Head of Technology at Oradian
w w w. g i g a b i t m a g a z i n e . c o m
TECHNOLOGY
facilitate the transaction, users depended on a third-party payment provider. Interoperability is a revolutionary step forward in making transactions more affordable. With new software, the need to include third-party payment providers is being eliminated. The mobile revolution taught us that frontier markets such as Nigeria and India are not afraid to embrace technology. In fact, they’ve leapfrogged an entire generation of desktop computers and laptops, moving from paper and pen straight to the smartphone. Rapid growth in mobile payment technology is one of the driving 48
factors towards cloud technology. In Kenya, for example, e-payment organisations have been active in targeting hundreds of thousands smaller enterprises, convinced of the speed and convenience it can offer businesses. In 2017, mobile commerce transactions within the country were valued at a considerable $6.7bn. Only cloud-based banking platforms will be able to accommodate for the growing data uptake of mobile money. Automating manual processes, reducing time on administration and reducing human errors will all be vitally important to help develop communities in frontier markets and to quickly stimulate economic growth.
OCTOBER 2018
Core banking as a subscription service Instead of paying upfront for a large onpremise system, with the new generation of cloud-based tools, financial institutions simply subscribe at an annual or even monthly price. The subscription model eliminates the financial barriers that prevent financial institutions from accessing the technology and resources they need to grow. Given its shared infrastructure, cloud cost comes at much lower a price. Considering the impact of cloud technology, it is necessary to look beyond the worlds of London and New York, and really understand the disruption that is being facilitated in remote, hard-to-reach areas like Northern Nigeria and the islands of Philippines – areas like these are where Oradian is making the greatest impact.
“ Now, even small financial institutions in hard-to-reach and remote areas can access world-class banking services at their fingertips” — Marko Elezovic, Head of Technology at Oradian
w w w. g i g a b i t m a g a z i n e . c o m
49
December Dubai, United A ABOUT HITEC Hospitality Industry Technology Exposition and Conference (HITEC®) is the world’s largest hospitality technology exposition and conference brand. HITEC Dubai 2018, co-produced by Hospitality Financial and Technology Professionals (HFTP®) and Naseba, will feature 30+ speakers, 500+ hospitality stakeholders and 50+ solution and service providers. The show will give Middle East buyers currently worth over USD 75 billion, access to global top solution providers in hospitality market, through a top-notch education program planned by the expert HITEC Dubai Advisory Council, as well as an exhibition debuting the latest in hospitality technology, and a summit with one-to-one business meetings.
5
Ho Stak
www.hitec.org/dubai Amir Abdin | Marketing Manager | amirabdin@naseba.com | +97144557920
r 5-6, 2018 Arab Emirates
500+
ospitality keholders
40+
30+
Solution and service providers
Industry expert Speakers
T O P 10
52
OCTOBER 2018
53 WRITTEN BY
BEN MOUNCER
IT service providers Gigabit Magazine takes a look at the ten standout IT service providers in the world, as ranked in Everest Group’s 2018 Service Provider of the Year awards
w w w. g i g a b i t m a g a z i n e . c o m
T O P 10
09 10
54
DXC Technology DXC Technology, formed in 2017 fol-
NTT Data
lowing the merger of CSC and HPE’s
A newcomer to Everest Group’s elite list,
with 6,000 private and public sector cli-
NTT Data is headquartered in Tokyo,
ents across industries. A Fortune 500
but has business operations globally in
company in its own right, it is expert
more than 50 countries and regions.
at guiding large businesses and govern-
Building a strategy around a long-term
ment agencies through digital
commitment to its clients through
transformation initiatives, helped along
a combination of global reach and local
by its 250-strong global partner network
intimacy, NTT Data provides consulting,
that includes strategic relationships with
system development and business IT
the likes of Amazon Web Services,
outsourcing to its clients. It employs
Microsoft and Oracle.
over 120,000 people and earns annual
Employer of 134,000 workers around
revenues in the region of $15bn.
the world, DXC Technology – led by
Earlier this year, it relaunched its Group
President and Chief Executive Officer
Vision by laying out a ‘strong and steady’
Mike Lawrie – has formulated a ‘CLEAR
foundation for the ‘highly unpredictable’
Values’ vision founded on five themes:
digital era, promising to earn the trust
Client-Focused, Leadership, Execution
of clients against the onset of cutting-
Excellence, Aspiration and Results.
edge technologies. “We will create new
www.dxc.technology
markets for digital business, provide even higher quality services by leveraging the aggregated strengths of the worldwide NTT DATA,” said Yo Honma, its President and CEO, on its 30th anniversary in May.
www.nttdata.com OCTOBER 2018
Enterprise Services division, works
07
Infosys Infosys steers some of the world’s biggest companies through technology transformation with a strategy that has
08
Capgemini
artificial intelligence at its core. Its use of AI helps it to build a predominantly automated foundation for its clients, which is able to deliver crucial data insights; a vital
Having recently celebrated its 50th anni-
asset when it comes to owning complete
versary and with a global workforce of
oversight of operations and conse-
200,000, Capgemini is an established
quently prioritising execution of change.
player in the IT services sector. The
Founded in 1981, Infosys utilises its
Paris-based firm puts collaboration at
expertise to navigate the digital transfor-
the centre of its philosophy, guiding its
mations of clients in 45 countries and
strategy around the four separate
has adopted four ideas to lead that
dimensions of value, risk mitigation,
strategic journey: scaling agile digital,
capability optimisation and organisa-
energising the core, reskilling its employ-
tion alignment. This approach reaped
ees and expanding its localisation.
rewards in 2017, when it earned $12.8bn
www.infosys.com
in revenues and operated at a margin of 11.7% following increased demand in cloud and digital services. A culture of innovation also runs through the business, with its Applied Innovation Exchange platform and 16 worldwide centres offering clients the opportunity to contextualise and experiment with innovations specific to their industry.
www.capgemini.com w w w. g i g a b i t m a g a z i n e . c o m
55
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T O P 10
05 IBM
‘This will be an era of man to the power of machine: not man versus
06
HCL
58
machine, but man and machine.’ IBM’s thought-provoking statement gives insight into the US giant’s priority as it looks to elevate itself to great
Coming in at number six in Everest
heights in the age of technology dis-
Group’s ranking is HCL Technologies,
ruption. Hitting revenues of nearly
the Indian multinational headquartered
$80bn in 2017, it has created six divi-
in Noida. The realities of digital disrup-
sions to manage its priorities in enabling
tion have led to HCL building its Mode
‘smarter business’: IBM Watson, work
1-2-3 strategy, designed to futureproof
focusing on its renowned AI-powered
its clients’ businesses with the deploy-
question-answering system, IBM
ment of a three-point spotlight to create
Cloud, IBM Services, IBM Blockchain,
clear outcomes and growth potential.
IBM Security and IBM IoT. “We remain
Mode 1 is Core Services, the delivery
dedicated to leading the world into
of the most powerful differentiators
a more prosperous and progressive
today, with Mode 2 looking at Next
future; to creating a world that is fairer,
Generation Services – the integration
more diverse, more tolerant, more
of high-potential offerings such as its
just,” says its President and CEO
‘Digital & Analytics’, ‘IoT WoRKS’ and
Virginia Rometty.
‘Cybersecurity & GRC’ services. Mode
www.ibm.com
3 focuses on Products & Platforms, where it points its customers in the direction of business model changes and innovation alliances to align it with future trends.
www.hcltech.com OCTOBER 2018
03
Cognizant
04
Wipro
Ranked the third best IT services provider in the world by Everest Group, New York firm Cognizant will reach its 25th anniversary in January. A cham-
While IBM has Watson, Wipro has
pion of innovation with a purpose, the
HOLMES – an innovative artificial intel-
$15bn firm has its tentacles in most
ligence and automation platform that
industries and operates a significant
allows clients to offload cognitive tasks
consulting arm too – with all of its busi-
to maintain efficiency and agility. Also,
ness underpinned by a commitment to
a specialist in robotics, Wipro manages
the cultural values of transparency,
a client portfolio spread over six conti-
passion, empowerment, collaboration,
nents and an employee base pushing
customer focus and integrity.
over 160,000. Its main services are
Cognizant comes in at 195 on the 2018
analytics, consulting, application man-
Fortune 500 list and for ten years has
agement, cloud and infrastructure
been present in Fortune’s Most Admired
services, digital operations and plat-
Companies group. “Forward-thinking
forms and product engineering.
businesses can’t just do digital. They
The Indian provider places four values
must be digital at their very core,” says
at the root of its business, known col-
Francisco D’Souza, its CEO.
lectively as the ‘Spirit of Wipro’: to be
www.cognizant.com
passionate about clients’ success, to be global and responsible, to treat every person with respect and to have unyielding integrity as the basis of everything. According to its latest financial report, Wipro earned revenues of $8.4bn in 2017-18.
www.wipro.com w w w. g i g a b i t m a g a z i n e . c o m
59
T O P 10
02 60
TCS
Runner-up for 2018 is Tata Consultancy Services, known worldwide as TCS and employer of over 400,000 workers in 46 nations. Another Indian company on the list, TCS states its mission as ‘helping customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions and services and to make it a joy for all stakeholders to work for us’. It operates an impressive network of partners that includes the likes of Dell, Intel and Microsoft, with artificial intelligence, Big Data, cloud, cybersecurity and IoT as its key technology drivers. TCS also ploughs considerable energy into CSR initiatives through volunteering, sponsorship and pro bono IT services. In 2017, it was recognised by independent CSR advisory body EcoVadis with its Gold accolade for the fourth year in a row.
www.tcs.com
OCTOBER 2018
01
Accenture
61
Coming out on top in Everest Group’s ranking is Accenture, the global management consulting and professional services firm that turned over $35bn in 2017. By pinning its strategy on developing long and meaningful partnerships with its high-profile clients, it is able to boast the remarkable statistic that 98 of its top 100 customers have each worked with it for over a decade. Accenture’s comprehensive innovation architecture puts it at the forefront as companies seek to continually reinvent themselves in the face of new technologies. Its five divisions – Strategy, Consulting, Digital, Technology and Operations – help it shape the future for clients in every industry. The business is led by Pierre Nanterme, who has enjoyed a 35-year career with the organisation that culminated in him taking over as CEO in January 2011.
www.accenture.com
w w w. g i g a b i t m a g a z i n e . c o m
W R W EG W IS .C T LO ER U N D O EX W PO FO A R SI Y A OU .C R O M FR /B E IZ E T CL IC IK KE -M T ED : IA
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EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences WRITTEN BY BEN MOUNCER from around the world
01–02 NOVEMBER
15–17 OCTOBER
SaaStock2018 64
Malta Blockchain Summit [ ST JULIANS, MALTA ]
[ DUBLIN, IRELAND ]
Malta Blockchain Sum-
Gather in Ireland for the best news and advice from
mit is a melting pot for
experts in the flourishing SaaS market as it stands
global influencers in
today. Learn how to build up a SaaS business from real
technology, civil society,
software entrepreneurs. Optimise your business for
democracy promotion
the highest monthly recurring revenue and the lowest
and innovation. Expect
costs. Gain knowledge from people who have already
riveting discussion about
made the mistakes and the losses so you don’t have to.
the world-changing
Collate cutting-edge technologies and hacks to auto-
potential applications of
mate processes that cost valuable time and resources.
the Blockchain across
Hear how to create a need for your subscription-based
multiple verticals, includ-
product and market it to targeted audiences. SaaS-
ing, but not limited to
tock aims to be a “one-for-all” event where marketers,
health, entertainment,
developers, and CEOs can get together to figure
government, banking,
out the intricacies of and establish best practices
payments and fintech,
for emergent features of the SaaS ecosystem.
and more.
Click to view website
Click to view website
OCTOBER 2018
05–08 NOVEMBER
SaaS Monster [ LISBON, PORTUGAL ] SaaS Monster is the
world’s largest SaaS con-
28–29 NOVEMBER
ference, connecting more
SaaS North
than 10,000 CIOs and
[ OTTAWA, CANADA ]
CTOs, buyers and sellers,
2018 marks the third year of this premier event and
experts and investors,
we’re excited to bring the best in SaaS back to the
startups and established
Shaw Centre in Ottawa. This year’s programme,
companies. SaaS Mon-
speakers and networking opportunities promise
ster has a reputation for
to connect you with the best opportunities to grow,
bringing together SaaS
learn and meet funders, founders and executives.
giants. With 10,000 CIOs
SaaS North is known for bringing together world
and CTOs, experts and
class SaaS leaders to connect and learn. With over
investors, start-ups, and
1,500 attendees from over 500 companies, across
established companies,
startups, global brands, investors and service provid-
it is a great event to net-
ers all specialising in SaaS. It is a great event to
work and get inspired for
network, learn from the best in the industry and
the upcoming year.
get inspired for the upcoming year.
Click to view website
Click to view website
65
w w w. g i g a b i t m a g a z i n e . c o m
HOME T O IND U S T R Y– L E A DING DIG I TA L B U SINE S S P L AT F OR M S
HAVE YOU SEEN OUR OTHER TITLES?
EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences from around the world 08–11 JANUARY 2019
CES
[ LAS VEGAS, USA ] The Consumer Electronics Show (CES) is the world’s gathering place
05–06 DECEMBER
68
for all those who thrive on the busi-
HITEC Dubai 2018
ness of consumer technologies. It
[ MADINAT JUMEIRAH, DUBAI ]
has served as the proving ground for
Hospitality Industry Technology Exposi-
innovators and break through tech-
tion and Conference (HITEC®) is the
nologies for 50 years — the global
world’s largest hospitality technology
stage where next-generation innova-
exposition and conference brand.
tions are introduced to the marketplace.
HITEC Dubai 2018, co-produced by
Owned and produced by the Con-
Hospitality Financial and Technology
sumer Technology Association
Professionals (HFTP®) and Naseba,
(CTA), it attracts the world’s busi-
will feature 30-plus speakers, 500-
ness leaders and pioneering thinkers.
plus hospitality stakeholders and
January’s conference will open with IBM
50-plus solution and service providers.
Chairman, President and CEO Ginni
The show will give Middle East buyers
Rometty delivering an address to discuss
currently worth over $75bn, access to
how technologies such as AI and quan-
global top solution providers in hospital-
tum, when built on a foundation of trust
ity market, through a top-notch education
and transparency, will drastically change
program planned by the expert HITEC
business and society for the better.
Dubai Advisory Council, as well as an exhi-
Click to view website
bition debuting the latest in hospitality technology, and a summit with one-toone business meetings.
Click to view website OCTOBER 2018
04–08 MARCH 2019
RSA Conference 2019 [ SAN FRANCISCO, USA ] SA Conference is one of the biggest
25–28 FEBRUARY 2019
Mobile World Congress
IT security conferences in the world, with 2019’s main event taking place in San Francisco.
[ BARCELONA, SPAIN ]
Attendees can expect to learn about
The GSMA Mobile World Congress
the latest cybersecurity developments
is the world’s largest exhibition for
in expert-led sessions, inspiring key-
the mobile industry, incorporating
notes and in-depth seminars. They can
a thought-leadership conference
also demo innovative products and
that features prominent executives
solutions, network with infosec insid-
representing mobile operators, device
ers and peers, and help move the
manufacturers, technology providers,
industry forward as part of an engaged
vendors and content owners from
and empowered global community.
across the world.
This year’s theme is ‘Better’. According
Mobile World Congress 2019 will once
to RSA Conference, this means ‘work-
again take place at its traditional Fira
ing hard to find better solutions.
Gran Via venue in Barcelona and next
Making better connections with peers
year will be built around eight core topics:
from around the world. And keeping
Connectivity, AI, Industry 4.0, Immersive
the digital world safe so everyone can
Content, Disruptive Innovation, Digital
get on with making the real world
Wellness, Digital Trust and The Future.
a better place’.
Click to view website
Click to view website
w w w. g i g a b i t m a g a z i n e . c o m
69
‘COMBINE DATA WITH OBSERVATIONS AND PHYSICS FOR TRACK MAINTENANCE’ “Data only acquires meaning when it is combined with physical observations and models. Then it becomes information”, says Diego Galar, Professor of Condition Monitoring at Luleå University of Technology (LTU). “You need to know the conditions surrounding a fault, such as the weather and the conditions of the track. Then the sector will reap the rewards.”
“In the rail sector, we have for many years tried to analyse
wrong. According to Galar, the rail sector is far from
‘classic’ data, but around four years ago we realised that it
knowing all those signs: “We have not collected the data
is no longer enough,” says Galar. He is one of the speakers
from about 80 per cent of all errors.”
on 28 November at the Intelligent Rail Summit 2018 in
So how can the sector ensure that it does do this? On its
Sweden. There, he will talk about the analysis of big data
own, collecting data is not enough. “If you look at other
and the use of Internet of Things technologies to improve
sectors, such as the financial sector, they gather a lot of
track maintenance and use. “We now find ourselves in a
data about when things are going well or badly with the
very promising phase, but we are not there yet. But now the
markets. Their data comprises many different profiles and
big players are beginning to invest in this new method of
scenarios, and they draw a wealth of information from it.
gathering and analysing data.”
In the rail sector, the opposite is the case: we have a great amount of data, but no information,” explains Galar. “So
Anomalies
there is a huge chasm between what we already have, and
Most data that is collected is about all the times that things
what we still need. This is the current challenge for the rail
go well, in other words, normality, but in reality, the only
sector.”
useful data is about those occasions when things go wrong. “You must look for anomalous situations, which actually
Data and observations
don’t happen very often.” Furthermore, if you only collect
Only when it is combined with physical data, based on
data about normal situations, you do not know which signs
observations on the track, for example, is the information
you need to look out for that indicate that things could go
useful to the rail sector. “You need information about the
HIGHLIGHTED SPEAKERS Prof. Diego Galar RAIL (Professor of INTELLIGENT SUMMIT Condition Monitoring at LTU, Luleå Diego Galar is Professor of Condition Monitoring University of Technology)
at Luleå University of Technology (LTU). He will
speakFink during the Intelligent Olga (Lecturer Reliability Rail and Summit 2018 on 27-29 November in Malmö, Sweden. Over 25 Maintenance Engineering at ZHAW School Engineering) expertof speakers will share their knowledge on the measurement, analyses, storage and application of
Johan Vekemans (Track Engineer data within railway infrastructures. at Infrabel)
Go to www.intelligentrailsummit.com to have a look at the full programme.
circumstances around an accident: what was the temperature, what was the weather like, what were the conditions of the track and rolling stock, etc. It is only with this contextual information that the data actually means something.” Here, innovations that use the Internet of Things can
level crossings, and so on.” And if better forecasts can be
make an important contribution. These measure real-time
made, more effective maintenance can be done. This is
information about the track, such as the heat of the rails or
very important if the European rail sector wants to take on
vibrations. “We need to measure everything.”
competitors from countries such as China. “Forecasts of rail maintenance can save a lot of money.”
Forecasts Once that is done, and the data becomes valuable
Marriage
information, the rail sector will reap the rewards, as it
Rail companies must keep exchanging their data with
can anticipate when things threaten to go wrong. “We
each other, though it may be tricky. “Increasing numbers
can do two things here: make predictions, and get in-the-
of rail companies are going to realise that their data is
moment insights into the state of the rolling stock and
really valuable. In fact, it can be used as currency. But
the infrastructure. The rail sector would like to know in
these companies are afraid of sharing their data because
advance if their trains can keep running in the future.
of security or privacy concerns, so clear rules have to be
Everything is about forecasts.”
established. We must understand each other,” underlines
The most important thing to remember, says Galar, is that
Galar.
this is all very possible. “It is completely doable. Thanks
“Sharing data is essential. It is like a marriage: you can’t
to the combination of data and observations, we can
just choose to ignore one party.” This will only lead to
accurately forecast what state the entire infrastructure will
a win-win situation, says the professor. “Sharing data
be in. This applies to all elements of the track: switches,
provides nothing other than benefits for all parties.”
72
EUROPE
MELLANOX TECHNOLOGIES: EMPOWERMENT THROUGH PROCUREMENT WRIT TEN BY
DA LE BENTON PRODUCED BY
HE Y K EL OUNI
w w w. g i g a b i t m a g a z i n e . c o m
73
MELLANOX TECHNOLOGIES
Through a vision of continuous improvement, Mellanox Technologies places procurement at its heart
I
n the procurement space, having a strong relationship internally with the wider business is proving
just as crucial as establishing a strong relationship with suppliers. Over the past decade there has been a paradigm shift 74
that has seen procurement move away from its traditional “support” function role as it becomes far more aligned to business strategy. Nowhere is this more apparent than Mellanox Technologies, a leading supplier of end-to-end interconnect solutions. Over the last few years Mellanox Technologies has gone to great lengths to ensure that its customer facing teams are fully supported by an efficient and robust procurement function. “At Mellanox, procurement has a very special place,” says Oshri Cohen, Vice President of Purchasing and Logistics. “Procurement is involved at the very beginning of a project, through mass production and right OCTOBER 2018
EUROPE
“ We are providing support all throughout a product lifecycle and so what we are doing is overseeing product cost and deliverability from top to bottom” — Oshri Cohen, Vice President of Purchasing and Logistics.
75
w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
PCB Solutions for 5G, IoT, and Converging Technologies. TTM’s global team of engineers is ready for a connected future.
TTM Technologies, Inc. is a leading global printed circuit board manufacturer, focusing on quick-turn and volume production of technologically advanced PCBs, backplane assemblies and electro-mechanical solutions as well as a global designer and manufacturer of high-frequency radio frequency (RF) and microwave components and assemblies. TTM stands for time-to-market, representing how TTM’s timecritical, one-stop engineering and manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com
EUROPE
CLICK TO WATCH: MELLANOX TECHNOLGIES OVERVIEW 77
up until the product’s end of life. We are providing support all throughout a
the best people from within. “The fact that I had the chance to
product lifecycle and so what we are
touch almost every operation issue
doing is overseeing product cost and
by myself, provided me the chance
deliverability from top to bottom.”
to learn a lot and prepared me very well
Oshri first joined Mellanox in 2007
to the role I’m holding today. When you
as an NPI Manager. Over the years
know, theoretically, what the right thing
his role evolved as he took on more
to do is and you’re connected to your
procurement responsibility before
organisational DNA, then your chances
taking on his current role in 2012. He
to take the right decision and do the
feels that this experience of growing
right implementation are very high,” he
within the company and developing a
says. “Luckily, I grew up inside Mellanox
strong procurement team is a testa-
and so did my great team. I think that
ment to Mellanox and its ability to grow
this is a winning formula to succeed.” w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
Through his career with Mellanox he has seen first-hand this shift in understanding what procurement can deliver
That is a short-term activity,” he says. “Procurement today is responsibile to
to a business. He feels that now more
establish a strong enough supply chain
than ever before a good strong procure-
to enable company growth and even
ment function that is aligned to the right
bring added value to the company’s
vendors can be the key difference; not
customers. These values can be game
only in delivering success but staying
changers, as customers are exposing
ahead of competitors.
themselves less to commitments but
“Traditional procurement was centred around taking care of orders
78
and essentially focusing on shortages.
still demanding complete times.” “I think procurement has a main role
“Procurement today is a responsibility to establish a strong enough supply chain to enable company growth and even bring added value to the company’s customers” — Oshri Cohen, Vice President of Purchasing and Logistics.
OCTOBER 2018
EUROPE
of making sure that we are enabling
Mellanox to grow and to invest into
business on our end, while also
spaces it might not have done otherwise.
protecting the company from over exposure.” As Oshri notes, the market have
“Customers are getting smarter and have access to greater information and technology,” says Oshri. “This allows
changed and are continuously chang-
them to compare better and to under-
ing as procurement continues to evolve.
stand where their investments could
The company prides itself on how it can
and should be made. If an organisation
continue to provide creative solutions
or a business intends to grow and
to meet the evolving demands.
intends to be better than its competitors,
It is this approach that has allowed
then it has to continue to find ways to
79
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MELLANOX TECHNOLOGIES
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1999 Year founded
2,900 Approximate number of employees
81
become better and better and listening
this data to gain a better understand-
to customers is key to doing that.�
ing of those customers and suppliers
The technology conversation in procurement is defined more and
and a better insight into how Mellanox can grow and improve.
more by data and data analysis. With a supplier and customer base from all
SUCCESS THROUGH COLLABORATION
over the world, Mellanox has access
Vital to this understanding is collabora-
to incredible amounts of data and
tion between the procurement function
information. Through technology
and the wider Mellanox business.
solutions, Oshri and his team can use
Oshri is incredibly proud of the unique w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
EUROPE
83
collaboration that procurement has
talk the same language and achieve
with the design team as it allows the
the corporate goals we get.”
two teams to create a roadmap to
For Oshri, the key to enabling
achieving greater cost savings while
success for Mellanox lies in fostering
enabling efficiencies together.
and developing collaborative relation-
“Collaboration is a must to achieve our goals,” he says. “We stay aligned
ships across the business. “Procurement can be proactive or
in front of the HW team, around the
reactive. Working with HW teams, we
same targets of quality, cost and avail-
are getting involved at the very early
ability. This enables both groups to
stages of the product design process. w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
proactive in eliminating potential
CHANGING TECHNOLOGIES AND CHANGING CUSTOMERS
supply chain risks,” he says.
A particular challenge for companies
This allows procurement to be
“It makes our supply chain stronger
in any sector embracing this techno-
and more robust. Once the products
logical innovation is understanding
are moving to mass production, opera-
the right technologies to implement.
tions are able to support those prod-
In the quest to outweigh competitors,
ucts without any special issues
one could be forgiven for investing in
or surprises.”
technologies for the sake of keeping
84
OCTOBER 2018
EUROPE
“We know our customers are measuring us and so we constantly look to better understand how we are perceived – this leads to continuous improvement” — Oshri Cohen, Vice President of Purchasing and Logistics.
up, rather than investing smartly. This is a challenge that Oshri recognises, but he understands that the most important part of the Mellanox equation is the customer. Through this understanding, Mellanox continuously challenges itself against a series of KPIs that are defined by the customer which allows the company to be more focused moving forward. “We know our customers are measuring us and so we constantly look to better understand how we are perceived,” he says. “This leads to continuous improvement. Even from a technology perspective, we implement technologies and look at how it is received by customers. We are constantly evaluating ourw w w. g i g a b i t m a g a z i n e . c o m
85
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WE SUPPORT OUR COSTUMERS GROWTH
EUROPE
CLICK TO WATCH: MELLANOX WORLD END 87
selves to ensure we are delivering
does its customer base. For him, Mel-
value to our customers.”
lanox could not succeed without them. But how does Mellanox establish and
SUPPLIER NETWORK
foster relationships with key suppliers
A defining component of what Oshri
in order to continue to bring value to
strives to achieve with Mellanox is
Mellanox and its customers, while also
that strong and robust supply chain
growing and developing the suppliers
network. A procurement function can
themselves?
have all the best tools at its disposal, but
“We prefer to find partners that can
it’s all for nothing if there isn’t a supplier
provide us real added values in terms
network in place.
of technology, supply chain and quality
Oshri understands this and approach-
and we invest in those partner relation-
es Mellanox’s supplier network with the
ships as if they were our customers,”
same level of care and attention as he
says Oshri. w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
88
“We should enable Mellanox to penetrate the new markets it aims to. We should allow the company to compete by suggesting short lead times, competitive prices and best quality products ” — Oshri Cohen, Vice President of Purchasing and Logistics.
OCTOBER 2018
EUROPE
89
“The strongest partners we have,
firmly believes that trust is devel-
are the ones we experienced some
oped through transparency and
difficulties with and we had to
communication.
manage a few crises. Real partners
“Very similar to marriage, such
are not only being measured when
relationships need to be maintained,”
the business is perfect and blooming.
he says. “Along the way we must keep
The painful hours are the ones to
transparent in order to hear and say
expose the real partners.”
our observations, so in case any
Key to fostering these relationships is establishing trust and Oshri
adjustments need to be done, we will know about it and act accordingly.” w w w. g i g a b i t m a g a z i n e . c o m
MELLANOX TECHNOLOGIES
“ We prefer to find partners that can provide us real added value in terms of technology, supply chain and quality and we invest in those partner relationships as if they were our customers” — Oshri Cohen, Vice President of Purchasing and Logistics.
EUROPE
91
THE FUTURE OF MELLANOX
positioned in the core of the business,
As part of its entire DNA, Mellanox
but there is always place to improve.”
will continuously strive to improve in
he says.
order to better serve its customers.
“We should enable Mellanox to pen-
Oshri is proud of where the company’s
etrate the new markets it aims to. We
procurement function is in terms of its
should allow the company to compete
alignment with the core business strat-
by keep suggesting short lead times,
egy, but even he himself approaches
competitive prices and best quality
each day with a means of improving.
products. Procurement is one of the
The company is looking to break into
key groups to enable such plan.”
new markets and Oshri believes that it cannot even begin to think about doing this, without this continuous improvement approach to procurement. “Mellanox’s procurement is well w w w. g i g a b i t m a g a z i n e . c o m
92
Uniper redefined procurement to provide operational excellence for the energy customer WRIT TEN BY
DA LE BENTON PRODUCED BY
RICHARD DURR ANT
OCTOBER 2018
EUROPE
93
Photo © Uniper w w w. g i g a b i t m a g a z i n e . c o m
UNIPER
Through an extensive transformation of its procurement operations, Uniper can answer tomorrow’s questions today. We speak to Uniper’s Susanne Thöle, Director of Procurement, Spot Buy and Indirect and Philip Höchstödter, VP Spot Buy/Operational Procurement…
A
procurement function can be defined by two key components: the customer and the supplier. How an organisation, through its procurement
process, engages and works with those two factors is crucial. 94
The procurement industry is transforming as more and more organisations begin to recognise that what has been historically seen as a support function is now becoming far more aligned to the core business strategy, enabling growth through efficiencies and innovation. However, Uniper, a leading international energy company, realised this at a very early stage and has already prepared for the future by implementing a large-scale transformation of its procurement and supply chain process. Ultimately, procurement is about engagement with the suppliers and engagement with the customers or end users in order to deliver the best possible service to both parties. Uniper, tackled the challenge by asking one simple question: what is it that suppliers and customers really want? We speak to Uniper’s Philip Höchstödter, VP Spot Buy/Operational Procurement and Susanne Thöle, Director of Procurement, Spot Buy and Indirect. OCTOBER 2018
EUROPE
95
C OMPA N Y FA C T S
Uniper is a leading international energy company with operations in more than 40 countries and around 12,000 employees. Uniper’s business is to provide a reliable supply of energy and related services. Its main operations include power generation in Europe and Russia and global energy trading. Its headquarters are in Dßsseldorf, Germany.
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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Grow with SAP’s Business Network With SAP Ariba and SAP Fieldglass, you address a company’s source-to-pay processes. What exactly is your contribution? SAP aims to support companies with solutions that streamline working processes and allow employees to concentrate on the important work that not only makes their businesses run better, but improves the world around them. Together, SAP Ariba and SAP Fieldglass, provide a set of cloud-based source-to-pay solutions that companies can use to manage all of their spend – from direct and indirect materials to contingent labor – from end to end in a simple, compliant, contextual and conscious manner. SAP Ariba covers the procurement side of things – so everything from sourcing and orders through invoicing and payment. And SAP Fieldglass helps to manage contingent labor and SOW (Statement of Work)-related activities. The key here is that the solutions are fully integrated. Procurement is not a discrete activity that can be performed in silos, but a connected one. And the solutions used to drive it need to be too. With SAP Ariba and SAP Fieldglass, companies can seamlessly connect their procurement systems and the people and processes used to drive them and manage everything through a single interface. And they can gain the transparency and insights needed to make better buying decisions that positively impact their business. SAP Ariba is unique in the market with regards to its breadth and depth. With more than 3.4 million companies transacting more than $2.1 trillion on an annual basis, the Ariba Network is the largest business network on the planet. And when you combine this scale with our cloud-based source-to-settle applications that have been ranked as market leading by the likes of Gartner, Forrester and IDC, and use them alongside things like SAP S/4HANA, you can very quickly unlock real value. How do these solutions integrate into a company’s IT landscape? Most Chief Procurement Officers (CPOs) are looking for ways to manage goods and services in a more simple, consumer-like way. But the process still has to be compliant and fully integrated. Our approach is to natively integrate SAP Ariba and SAP Fieldglass into SAP S/4HANA as well as other ERP solutions. With S/4HANA as their core, companies can master massive amounts of data digitally in real time, enable instant insight and predictive analytics to guide critical decision making and eliminate risk. With the integration of solutions from SAP Ariba and SAP Fieldglass, they can extend this simplicity, power and speed outside their four walls and collaborate with customers, partners and suppliers in new and innovative ways that transform the supply chain. No business is an
Marcell Vollmer Chief Digital Officer (SAP Ariba) island. To make things go in today’s global economy, businesses need to work with thousands of suppliers, partners and customers across supply chains that have become increasingly complex. With the integration of S/4HANA and SAP Ariba and SAP Fieldglass, companies can simplify this process, connecting with all of their partners and managing all of their procurement activities in one place. They can share forecasts and sales to facilitate better planning. They can gain visibility into potential risks and mitigate them before they cause any disruptions. What are the specific challenges for the energy sector and why do companies such as Uniper choose SAP to tackle them? Energy companies face challenges unlike most other companies in that every day, millions of people depend on them to power their lives. They must be able to consistently deliver with a high degree of reliability and maintain the integrity of their supply to keep pace with growing demand. They also have to contend with new players entering the market and keep up with the dizzying pace of innovation that all companies face in today’s digital economy where things that used to take months can now be done in hours and even minutes. And in many organizations, procurement is leading the charge on all of this. Uniper is a great example of a company that saw the sign of the times and started to drive their digital transformation. Under the visionary leadership of CPO Jan Taschenberger, Uniper is building an exceptional procurement organization with an integrated and highly automated source-to-pay process. The main challenge with most digitization projects is getting people on board with them. You can have the best solution in the world. But unless your employees use it, it won’t deliver any value. And I think Uniper saw out of the gate that with SAP, they could create a consumer-simple, yet enterprise-strong process that would meet their people where they were at and bring them along in the journey at the pace they want to go.
UNIPER
CLICK TO WATCH : ‘UNIPER IS UNIQUE (2018)’ 98 “Ultimately, customers want speedy execution and seamless interaction,” says Susanne Thöle. “The way we achieve that is through understanding the market and identifying opportunities to enable cost savings, or technologies that can accelerate that. We then look at our engagement with existing suppliers and how we approach new suppliers.” This journey started back in 2016 with Uniper looking at how it can create far greater supplier relationship management, incentivising suppliers to unlock more value and potential within those relationships. OCTOBER 2018
“ We attend bootcamps, workshops and training talks to ultimately find easier, better solutions to reduce complexity. The idea was to exercise methodologies that we had learned previously to solve issues in our day-to-day business” — Susanne Thöle,Director Procurement, Spot Buy and Indirect for Uniper
EUROPE
For Thöle, this starts from within and
innovative ideas to the business. We
Uniper develops their Operational
are looking at where we are as a fun-
Excellence capabilities to challenge the
ction in the business, challenging the
status quo, to look at the company’s
status quo and finding new pragmatism.”
workforce and continuously strive for
Ultimately, the Operational Excellence
ways to improve and approach new
project epitomises the entire transfor-
or existing challenges with fresh ideas
mation and growth journey of Uniper’s
and more innovative approaches.
procurement as it answers a demand
“We attend bootcamps, workshops
identified by Thöle. As an international
and training talks to ultimately find
company, serving customers all around
easier, better solutions to reduce comp-
the world, Uniper needs to have a level
lexity. The idea was to exercise method-
of proactivity, reactivity and, most
ologies that we had learned previously
importantly, flexibility.
to solve issues in our day-to-day business,” Thöle says.
Thöle believes that by continuously supporting staff in developing their tal-
“For me, it’s been a real game changer
ents and skills through targeted KPIs,
as it has helped foster a culture of uncon-
personal development strategies and of
ventional thinking, bringing fresh and
course by valuing their staff and their
E X E C U T I V E P R OF IL E
Susanne Thöle Susanne has spent nearly all her professional life in procurement functions in the pharmaceutical, automotive and energy sector. Before starting at Uniper, she was responsible with her team for setting the frame, ensuring compliance and harmonizing the tools for the procurement function of E.ON.
w w w. g i g a b i t m a g a z i n e . c o m
99
UNIPER
capabilities, Uniper possesses a work-
We put our staff on a path where they
force that is extremely focused and
get the right insight and the perfect
knowledgeable.
training to take into supplier engage-
“Growing and empowering my team is my focus here. Backing up the dec-
ments and bring back innovations and learnings into our business.”
isions of my colleagues and providing
Another important aspect of striving
flexibility in the daily work are important
for excellence with a team is the appre-
cornerstones of providing a work envir-
ciation of diversity Thöle thinks.
onment that motivates my team to strive
100
“At Uniper we drive a diversity initiative
for success. We have developed a very
that puts emphasis on the opportuni-
solid framework to challenge our empl-
ties that pluralities bring which I highly
oyees and enable their development so
support. I see a big value in a diverse
that they can understand exactly what
workforce and also in an inclusive culture,
their strengths are and where they can
because obviously: the happier our peo-
continue to push their capabilities,” she
ple feel in their teams, the more value
says. “What it also does is help us
they are able to bring to Uniper.
concentrate on the things that matter.
Part of the development plan, and
We can focus on areas of improvement
a cornerstone of the company’s transfor-
or development that will drive true value.
mation, is digitisation and technology.
E X E C U T I V E P R OF IL E
Philip Höchstödter Philip has worked in different functions like Controlling, IT and Organizational Development for different companies before he joined Procurement in 2011. All these organizations were undergoing large strategic transformations, so the common theme of his career was acting as a Transformation Manager from different functional perspectives. Today he is responsible for the groupwide operational Procurement of Uniper and drives procurement digitisation.
OCTOBER 2018
Photo © Falk Gustav Frassa
EUROPE
Technology is redefining industry sectors
Procurement, has experienced first-
all over the world, with more and more
hand the need to adapt to technology
businesses investing heavily into tech-
and to bring a new innovative approach
nology to embrace the digitally enabled
to the business.
customer and marketplace. Uniper’s approach to continuously
“When looking to implement technologies like Robotic Process Automation
developing its workforce extends into
(RPA), naturally it is met with some
the digitisation sphere and Philip
scepticism because people feel their
Höchstödter, VP Spot Buy/Operational
role or their work is becoming redun-
101
Photo © Uniper
w w w. g i g a b i t m a g a z i n e . c o m
UNIPER
102
OCTOBER 2018
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“What we learned very quickly was that if we applied new technologies to repetitive and sometimes boring tasks, those fears were allayed and actually people started appreciating and embracing new technologies, because it makes their lives easier” — Philip Höchstödter, VP Spot Buy/Operational Procurement
Photo © Uniper
w w w. g i g a b i t m a g a z i n e . c o m
103
UNIPER
104
Photo © Uniper
dant,” he says. “What we learned very
framework provided by our IT colleagues
quickly was that if we applied new
to ensure the right prioritization. Today
technologies to repetitive and some-
our virtual workforce consisting of
how boring tasks, those fears were
robots and a chatbot supported by A.I.
allayed and actually people started
is a well perceived standard and a fully
appreciating and embracing new
integrated part of our processes. These
technologies, because it makes their
technologies among others have ena-
lives easier.”
bled us and our staff to focus on higher
“Soon we were receiving so many ideas and ways that people felt we
value tasks,” Höchstödter says. Another key way in which Uniper
could continue to push further that
is embracing technology is through
we had to use a proper assessment
data management which in turn allows
OCTOBER 2018
EUROPE
the company to better serve its customer base. Through its very nature, the procurement function needs to know
8.2 BCM
Gas storage capacity
and understand the demand, the market and the suppliers to deliver insights to the business and capitalise on the market. Höchstödter points out that the procurement team has to accurately capture supplier data, contract data, material master data and operational process data, but more importantly the company has to be able to extract value from it, because all future analysis and development
2016
Year founded
12,000
Approximate number of employees
strategies within procurement are built from this data. Working in an integrated environ-
105 ACD solution provide us with incredible amounts of operational data,” says
ment is key to enable these activities.
Höchstödter. “When communicating
So, in addition Uniper decided to renew
with our requesters or a supplier, we
their Procurement platform to SAP
pool the information we receive and
ARIBA until the end of 2018 to create
can now use that information to target
a new and user-friendly experience for
the key areas where we can develop
their requesters, their suppliers and
and we can do it far quicker and more
their purchasers. This will reduce the
effective than ever before.”
administrative effort and workload con-
As a procurement function, Susanne
siderably. In parallel SAP Fieldglass
Thöle recognises that it can only be
has been implemented as a contingen-
successful and can only achieve any
cy workforce solution, which provides
real growth with a strong network of
additional process stability.
suppliers and key partners like SAP.
“Our systems like SAP ARIBA or SAP Fieldglass, our chatbot and our
“Procurement is a strategic function and, simply put, we’re trying to improve w w w. g i g a b i t m a g a z i n e . c o m
UNIPER
the profitability of the company, so our
from German energy provider E.ON,
key to this is our supplier relationship
Uniper can already point to consider-
management,” she says.
able successes and cost efficiencies
“We are very clear on who our strategic partners are, how we identify them, and that we really put effort into developing
that represent the company and its procurement heading in the right direction. Eyes inevitably turn to the future: with
these relationships and grow the
technological advancements and an
business together.”
ever-changing market and customer
Having started this transformational journey back in 2016, after the split
106
OCTOBER 2018
demands, procurement will continue to evolve further and Uniper will stay agile
EUROPE
to be ready for the challenges of
“And we will continue to work with our
tomorrow so it can keep shaping the
supplier base and our customer base
energy world.
and use that knowledge to help solve
For Thöle though, the future challeng-
the questions of the future.”
es will be tackled by greater collaboration with the customers and the suppliers of today. “Procurement has brought and will continue to bring innovation, new solutions and cost savings and efficiencies to Uniper,” she says.
107
Photo © Uniper
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BLOCKBASE 108
CUTTING OUT THE MIDDLEMAN IN CRYPTOMINING WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
LE WIS VAUGHAN
EUROPE
109
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BLOCKBASE
FOUNDER AND CEO, VLADO STANIC, DISCUSSES THE LONG-TERM GROWTH OF CRYPTOCURRENCY AND THE ADVANTAGES OF CRYPTO MINING IN THIS MONTH’S GIGABIT MAGAZINE
T
he financial sector is undergoing a significant transformation as it seeks to adapt and cater towards an evolving consumer market. As
technology continues to reshape traditional ways of working, the emergence of digital cryptocurrencies, such as Bitcoin, Ethereum and Zcash, have turned our 110
understanding of currency completely on its head. Whilst the emergence of cryptocurrency exploded into mainstream media last year, leading to a number of established companies, founder and CEO of crypto mining business, Blockbase, Vlado Stanic, has sought to provide crypto mining as a service to clients since 2015. Sourcing and purchasing hardware and delivering greater security to clients, the business relocated to Sweden in 2017 in its bid to obtain access to reliable, low-cost source sustainable energy sources at scale. Close to finishing the construction of a second data centre, a third is currently being planned as the business continues to purchase and host miners at its data centres in Sweden. “The cryptocurrency technology is one of the biggest revolutions that we have seen in the past decade, as
OCTOBER 2018
EUROPE
“THE CRYPTOCURRENCY BUSINESS IS, IN MY OPINION, ONE OF THE BIGGEST TECHNOLOGICAL REVOLUTIONS THAT WE HAVE SEEN IN THE PAST DECADE, AS IT GIVES THE POWER BACK TO THE PEOPLE” — Vlado Stanic, Founder & CEO
111
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CLIMATE NEUTRAL ELECTRICITY
Compensate what you can’t reduce. Vattenfall can impact CO2 emissions along our whole value chain by investing heavily in renewable energy. To reach zero emissions it includes energy production investments in other countries. corporate.vattenfall.com/sustainability
EUROPE
113 it empowers people to transact directly
GREENER SOLUTIONS
between each other at very low cost,”
Whilst Blockbase works to purchase
says Stanic.
the necessary hardware for its clients,
“Everybody has power over their own
who remain the owner, Stanic high-
money, effectively cutting out the middle-
lights that if they wish to change provider
man and a need for third parties. It’s no
at any stage they are able to do so.
surprise that Bitcoin was established
Providing greater security and ultimate
after the financial crisis as people were
choice is something which the business
fed up banks and how they work, how
has placed essential focus, particularly
they treat your money and how they still
for those who invest from $50k for
almost went bankrupt.
mining hardware.
“Bitcoin is like digital gold and crypto-
“Our clients prefer owning the miners
mining is equal to gold mining. We help
so they can keep 100% of the mining
our clients to monetise the significant
rewards. We source and buy the hard-
difference between the production
ware for them, ship it to our facilities,
costs and the market price of bitcoin.”
set them up and then we also run and w w w.gi ga bi t ma ga z in e. com
BLOCKBASE
114
“ELIMINATING THE MIDDLEMAN THROUGHOUT HAS ALSO PROVIDED CUSTOMERS WITH AN INCREASING LAYER OF SECURITY AND ULTIMATE TRANSPARENCY” — Vlado Stanic, Founder & CEO
OCTOBER 2018
EUROPE
115
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BLOCKBASE
CLICK TO WATCH : ‘WHAT IS BITCOIN MINING?’ 116 service it in our facilities. We do the complete process,” he says. “The next huge benefit is that their
Placing all hardware within one of its data centres, Blockbase is keen to increasingly scale its services, housing
hardware mines in their own mining
the potential for 16MW to be placed in
pool. They provide us with the mining
one of its facilities alone. 1,600 sq. Block-
pool where they want the machines
base’s data centres benefit enormously
to be pointed at. This gives them the
from its location in northern Sweden,
next best security, and all the coins
which has brought cooling costs
mined are going directly into the
down considerably.
customer’s wallet.” “Eliminating the middleman through-
“Previously, most companies, particularly in China utilise coal or nuclear
out has also provided customers with
power plants. However, we utilise 100%
an increasing layer of security and
green energy in our facilities. We have
ultimate transparency.”
a contract with Vattenfall, whom we
OCTOBER 2018
EUROPE
“WE UTILISE 100% GREEN ENERGY IN OUR FACILITIES. WE HAVE A CONTRACT WITH VATTENFALL, FROM WHOM WE PURCHASE RENEWABLE ENERGY, SUCH AS HYDROPOWER AND WIND POWER” — Vlado Stanic, Founder & CEO
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117
BLOCKBASE
C OMPA N Y FA C T S
• The emergence of digital cryptocurrencies, have turned our understanding of currency completely on its head • Blockbase relocated to Sweden in 2017 in its bid to obtain access to reliable, low-cost source sustainable energy sources at scale.
118
• Close to finishing the construction of a second data centre, a third is currently being planned
OCTOBER 2018
EUROPE
119
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BLOCKBASE
purchase renewable energy, such as hydropower and wind power,” notes Stanic. Building effective, long-term
2015
Year founded
partnerships has been central to Blockbase’s success. With five team members providing local support, on top of it’s in house developed hosting software, the company remains confident in its ability to remain operational 7 days a week, day and night. “The last big power outage in 120
the north of Sweden was back in 1984. The country has built its power grid with Norway and Finland, increasing stability. We work closely with our local grid provider to also address any problems,” he says.
LONG-TERM GROWTH With plans to further scale up its operations in Sweden and upgrade the current facility up to 19 megawatts, the company is gaining an additional power line where 10 megawatts will also enter the facility. Plans to build a second and third facility are in OCTOBER 2018
15
Number of employees
EUROPE
construction, with a goal of scaling up to almost 30 megawatts in Sweden by next year. Additionally, Stanic is keen to enter other markets outside of Europe long-term, such as the United States and areas of Canada which are stable, cryptocurrency friendly, house a similar climate and promote green energy. “Our long-term plan is to move from strictly mining-as-a-service to a high-performance computing company,” concludes Stanic. “This goal we want to achieve over the next three years so that we’re not just relying on one business. “Becoming a high-performance computing business would be the perfect fit for our company, where we will consistently provide costeffective prices and ensure we remain competitive for the future.”
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121
122
DI
OCTOBER 2018
123
MONETA MONEY BANK: IGITAL TRANSFORMATION FOR THE NEW BANKING CUSTOMER WRIT TEN BY
DA LE BENTON PRODUCED BY
JA MES PEPPER
w w w.gi ga bi t ma ga z in e. com
M O N E TA M O N E Y B A N K
THROUGH A FAST-PACING DIGITAL TRANSFORMATION, MONETA MONEY BANK EMBRACES TECHNOLOGY FOR THE CUSTOMERS OF TOMORROW
T
echnology continues
how technology is truly disrupt-
to define and redefine
ing the way the financial industry
the modern world and
works with and exceeds its
industry sectors have to invest to not only keep up with the 124
customer expectations. “The very role of the CIO is
rapidly evolving marketplace,
changing dramatically,” he says.
but to stay ahead of the curve.
“It’s moved away from focusing
This is certainly the driving force
on cost-effective solutions and
behind an ambitious company-
executing historical processes to
wide digital transformation of the
become far more aligned and
Czech Republic-based MONETA
integral to the business.
Money Bank. Spearheading this
“It’s about understanding, end
digital transformation in terms of
to end, what customers’ needs
information technologies is
are and executing that more
Vladimir Klein, Chief Informa-
collaboratively with the business.
tion Officer (CIO).
The traditional borders between
Having worked for a number of technology-based service delivery
black box IT and business do not exist anymore.”
organisations throughout an
No transformational journey,
extensive career, Klein has vast
especially one defined by technol-
experience and understanding of
ogy, can ever truly end. It has to
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125
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continuously evolve with the along-
ture and adopting an agile way of
side technologies and customers.
working simultaneously, Klein feels this
MONETA has set a target for 40% of
has proven key in maintaining opera-
its all core products to be distributed
tional clarity.
online or digitally through a number of channels by 2020.
“You have to have more of an entrepreneurial way of thinking and
A transformation of this size and
have an agile mindset towards develop-
scope is not without its challenges,
ing software or solutions,” he says.
and for an organisation that has been
“With the proper IT strategy behind us it
operating for two decades the biggest
becomes far easier to understand
challenge is complex architecture.
where to move, how to move and how
“If you don’t have proper architec-
to get people on board for changes. On
ture in place then you cannot develop
our transformation journey we decided
at any real pace,” says Klein. “The
to focus on 5 areas – Agile way of
same with automation: you cannot
working, Cloud, Automation, application
automate without agile architecture
replacements and Data”
and so we decided to develop and digitise in parallel.”
With a digital transformation, one could be forgiven for focusing entirely
In both developing the IT infrastruc-
on the technologies and the solutions
E X E C U T I V E P R OF IL E
Vladimir Klein Senior executive with 25 years experiences in Information technology, banking and telecommunications. Vladimir Klein has been working in several countries, in different local or international managerial positions. He executed several transformational changes in his career in the area of M&A, outsourcing, digital and agile, cloud implementations, organizational restructuring, cost cuttings and core applications migration.
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“ It’s about understanding end to end what customers’ needs are and executing that more collaboratively with the business. The traditional borders between black box IT and business do not exist anymore” — Vladimir Klein, Chief Information Officer
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driving the digitisation – but a tool is just a tool unless it’s in the hands of the right person. MONETA invests heavily in its development strategy to ensure that its people can help execute and deliver the best possible service to the end customer, whilst ensuring those same people are empowered and buy into this transformational journey. This proves crucial in the changing of cultural mindsets as the company shifts towards an agile, innovative way of working and this is where Klein can not only call on his own experience in the industry but also external partners to understand how to implement change to enable greater efficiency. 130
“We’ve started rolling out agile workshops and brought in external coaches and partners to share knowledge and best practice,” he says. “We have looked at how other companies have done it and we share that with our people in order for everyone to truly understand their role in pushing the company forward.” Klein admits that this in itself is a challenge as this new approach to working, one that will see each person define their own work and their own place in MONETA´s journey, can be met with some resistance and fear. This is where workshops and a strong sense of internal communication play a central role. Klein also empowers staff to make their own decisions. “Naturally for some people it’s very difficult because historically speaking, management will OCTOBER 2018
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“ You have to have more of an entrepreneurial way of thinking and have an agile mindset towards developing software or solutions” — Vladimir Klein, Chief Information Officer
131
make the final decision. I say: ‘you decide but try and think like a manager’,” he says. “This is where we combine communications, learning and workshops, and give them external support in order to seamlessly move forward together as a business.” A major part of MONETA’s transformation is moving towards cloud services which will drive a more agile way of working and in turn create a significantly more flexible business. To this end, MONETA is migrating significant amount of its legacy infrastructure over to a data centre. As part of this migration, Klein will oversee the integration of tens of physical w w w.gi ga bi t ma ga z in e. com
M O N E TA M O N E Y B A N K
applications to a cloud-based platform. As Klein notes, MONETA is a bank
integration platform, we selected Mitra
and not a developer and so the
quite simply because we did not have
company relies on a key strategic
the right level of competence to do it in
technology partner to assist and
house,” says Klein. “They brought us
support the company throughout this
competence and they provided us with
transition. MONETA has called upon
crucial support and implementation
the services of AWS for infrastructure
work. Going back to the complexity of
cloud, for automation products of
this migration, we have over 4500
RedHat and other open source tools
interfaces across all applications
like for example Jenkins or JUnit. As
which had to be integrated.
part of the Integration layer replacement,
132
“In replacing our entire legacy
“In my experience of similar transfor-
MONETA decided to cooperate with
mations at previous companies it’s
Mitra, a party which has many experi-
taken more than one year to make
ences in WSO2 integration platform.
some real headway. With the support of
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Mitra, we’re doing it in few months.” Ultimately, MONETA’s transformation
banking solutions. All of these developments are defined by one clear goal: to
is driven by the customer, and as
enable the most efficient and seamless
technology has evolved over the last
banking experience for customers.
two decades so too has the customer.
“Many customers today just want to
Through the advent of mobile payments,
do everything for themselves through
customers are more demanding than
tablets and mobile phones. They
ever before and for an organisation like
simply do not want to spend time by
MONETA it is crucial to stay ahead of
coming into a branch or contacting a
that demand in order to continue to
call centre. It is crucial that we are able
deliver and exceed expectations.
to handle their requests also fully
To this end, the company devel-
online,” says Klein. “That’s what our
oped an award-winning mobile
mobile app Smart Banka has been
banking application Smart Banka and
able to answer. Through it we can offer
is significantly revamping its online
the customer exactly what they need
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M O N E TA M O N E Y B A N K
anytime and from anywhere, but most importantly they can access it intuitively with no complications. Right now, we are looking to bring our web banking service to that same level.” Klein highlights the agile way of working again as key to being ready for this demand. This transformation has destroyed the historical barriers between IT and the wider business and brought about a more collaborative business, one that is better prepared to match this evolving landscape. The company has implemented daily stand-up meetings and sprints for all agile squads and moved away from a historical focus on long term delivery in order to make incremental steps on smaller things 134
today and therefore be ready for tomorrow. Key to this is instant customers feedback. “Customers can leave feedback in our Smart Banka app which we take directly to the backlog proposals and discussions with our teams and this is then taken into implementation,” says Klein. “The key points from the customer are directly implemented faster than ever before. “We even conduct research through our brokers. We do this by giving them a laptop or a tablet and they themselves give us feedback if they like it or don’t like it so they can sell our product. It’s all about understanding the end-to-end customer experience.” Klein entered MONETA back in December 2017 but even less than 12 months into this journey he can already point OCTOBER 2018
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135
€400mn Approximate revenue
1994
Year founded
3000+ Approximate number of employees
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M O N E TA M O N E Y B A N K
to significant success, be it through the mobile application, new customer portal or the migration own data centre to the hosted data centre and integration of AWS cloud into bank environment. Organizational changes were successfully executed in April this year to fit better to business value streams and cloud. Looking towards the future, Klein identifies ambitions to advance agile way of working to all IT Development staff and migrate next applications into AWS cloud with possibility to close a second data centre. Next his focus remains very much on legacy application replacements as 136
migration of card system to the partner cloud and migration and implementation of new web banking. “It’s about making our online banking solutions clearer for our customers, as well as opening it up and expanding it to our wider customer portfolio,” he says. “Banking is complex and there are certain elements surrounding interest rates and the different types of customer. What we want to be able to do is remove some of that complexity and make banking with MONETA simpler, easy and clearer for every single one of our customers.”
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“ Banking is complex and there are certain elements surrounding interest rates and the different types of customer. What we want to be able to do is remove some of that complexity and make banking with MONETA simpler, easy and clearer for every single one of our customers” — Vladimir Klein, Chief Information Officer
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Pushing the boundaries of market share in Israel’s insurance sector WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
K ARIM M AS SA AD
OCTOBER 2018
EUROPE
139
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C O FA C E
Carmine Mandola, CEO of Coface Israel, discusses the importance of delivering a high-class service to customers and his success in holding a 15% market share of Israel’s credit insurance industry
140
E
stablishing a new venture with the goal of enabling clients to become profitable, dependable and successful is no easy task.
In addition, setting up a business and helping it thrive is a different proposition entirely. As Chief Executive Officer of Coface Israel, Carmine Mandola, understands these challenges all too well. Since his appointment as CEO, he has sought to address the difficulties of launching the business in Israel. “Israel is a wonderful and very interesting country; however, it is extremely difficult for negotiation and new business,” he says. “I think that my background and origin helped me to face the biggest challenges as I have experience in holding strong negotiations, dealing with well-known competitors and finding the right people to succeed.” Having first joined Israel in July 2014 during the last OCTOBER 2018
Carmine Mandola, CEO, Coface Israel
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C O FA C E
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conflict, Mandola created the branch on his own in September 2014 before obtaining a credit insurance license in October 2014,
€1354.9m Turnover
leading to the official opening of the company’s offices in January 2015. “At the beginning, it was very difficult because we were facing two big competitors that have
4,100 Employees
been in the market for 45 years. However, we found our way to achieve success by offering new solutions, fair commercial terms and a good quality service,” he adds. “I believe the market was waiting for a third
86.6%
(Combined ratio)
player with innovative ideas and an international approach.”
Making tough decisions With previous experience working in senior
£83.2m Net profit
level roles, working for companies such as the Rotarex Group, Burgo Group, Indesit Group and FCA Group, Mandola prides himself on being proactive and adopts the mantra: “you will never win if you never begin,”
50,000 Clients
believing it is the tough decisions that have enabled him to keep his businesses lean and successful in challenging markets. Upon the launch of Coface Israel’s offices under Mandola’s stewardship in 2015, four other employees joined to begin the venture into Israel’s competitive insurance market. Now in
200
Countries where products and services are offered
2018, Coface Israel currently has 25 employees w w w.gi ga bi t ma ga z in e. com
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C O FA C E
and sees a turnover of ILS60mn a year. Nonetheless, Mandola points to the value of the way his company serves its customers as paramount to the success Coface has achieved, with the importance of word of mouth at the top of his agenda. “When you have satisfied customers, they talk about you, the company and the service in a very positive way. Most of the time people will come to us 144
because of word of mouth from someone that has tried our product and our services,” explains Mandola. “If all of the representation of the company, service and product is positive and it comes from customers that you have satisfied then it is much healthier because they can share their positive experiences with friends or with suppliers that can then become future customers. The process continues because they can then suggest the same service.”
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145
“ Israel is a wonderful and very interesting country; however, it is extremely difficult for negotiation and new business” — Carmine Mandola, CEO, Coface Israel
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C O FA C E
Driving change As a result of the emergence of new technologies which continue to expand and grow on an ever-changing basis, businesses have a responsibility to its customers to adapt to and embrace the latest trends. With this understanding, Coface Israel has introduced group tools such as CofaNet and Tradeliner in a bid to keep ahead of its rivals and maintain its success. 146
CofaNet enables the firm to set up an online connection to receive its customer’s requests and allows Coface to provide feedback in a timely fashion. Shortly, a new product will be launched as Easyliner to protect small and medium-sized enterprises’ (SMEs) against unpaid invoices and insolvency of clients when trading or exporting. “The major trend I am observing at the moment in our industry is linked to the fact that SME’s are asking for credit insurance in order to protect their sales and better manage their risk” says Mandola. OCTOBER 2018
“ It’s not the end of the path. We are the middle of where we want to be hope that within the next three yea market share will be as high as 25% — Carmine Mandola, CEO, Coface Israel
EUROPE
right in e and I ars, our %�
147
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C O FA C E
148
Carmine Mandola would like to express a special thank you to his team for their continued hard work and dedication to Coface Israel as without them achieving 15% of the market share would have been impossible.
“This has seen Coface Israel respond
There is a lot of work that still needs to
to that demand with Easyliner which I
be done but a key target is to increase
believe is tailor-made for this com-
this percentage further.”
pany segment.”
Mandola believes there are three key phases to remaining profitable and
Gaining market share
generating business when entering
Over the last 3.5 years, Coface Israel’s
Israel’s busy insurance market.
biggest achievement has been to hold
“You have the phase when you first
an impressive 15% market share of the
enter the market and you get some
insurance industry in Israel. However,
customers. The second phase, which
Mandola is adamant that Coface Israel
is where we currently are, is where you
is not finished there.
achieve rapid growth. Lastly, you have
“I believe we can expand this 15%.
to keep going with your ambition in
OCTOBER 2018
EUROPE
CLICK TO WATCH : ‘COFACE: FOR TRADE – BUILDING BUSINESS TOGETHER.’
order to make sure that your goal is stable and profitable, which is the phase where we are entering into,” emphasizes Mandola. “It’s not the end of the path. We are right in the middle of where we want to be and I hope that within the next three years, our market share will be as high as 25%.”
“ We thought that when you have customers that are satisfied, they talk about you, the company and about the service in a positive way” — Carmine Mandola, CEO, Coface Israel
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NAVIGATING THE COMPLEXITY OF DATA CENTER SECURITY WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO
NORTH AMERICA
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PWC
152
PWC WORKS WITH CORPORATIONS ALL OVER THE WORLD TO UNDERSTAND AND NAVIGATE THE CHALLENGE OF DATA CENTER SECURITY
O
ver the last decade, the data
“The technology of today is present-
center market has exploded
ing companies with the ability to very
at an exponential rate.
closely monitor,control and segment
Technology, namely infrastructure and
the network across their entire
network capabilities, has completely
enterprises. However, that doesn’t
defined and redefined the way in which
necessarily make the task at hand
businesses all over the world operate.
any less challenging”
“Technology has really come a long
O’Neil has worked in the technol-
way from very flat, uncontrolled
ogy space for more than 30 years
networks that defined the 90s,” says
and in that time, he has witnessed
Don O’Neil, Director, CIO Advisory at
first-hand this shifting landscape.
PricewaterhouseCoopers (PwC).
Having been active during the early
OCTOBER 2018
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153
days of the ‘technology boom’, O’Neil
not kept up with the times in the past
points to the first real attempts of
20 years and that’s because of the
major corporations trying to go digital
significant cost involved.”
and what he has begun to notice is
As the data center space continues
that despite an initial investment and
shift towards the modernisation and
overall enthusiasm, some industry
infrastructure changes are driven
players have fallen behind.
through regulatory and security
“I remember seeing how much they
concerns, segmentation and micro-
spent and how much time and effort
segmentation are tools with which
that they dedicated in order to do the
businesses are looking to control
initial implementations,” he says. “But
access to their resources. The inability
some of these very same players have
or reluctance to adapt and invest, for w w w.gi ga bi t ma ga z in e. com
Rethinking Segm WannaCry. NotPetya. SamSam. It’s not a question of if your network will be breached, but when. Of course you take all the usual protective measures: antivirus, intrusion prevention, firewalls, etc. But the best thing you can do to mitigate the risk is to segment your network. With segmentation, you logically separate your network into secure zones, each of which is compartmentalized and isolated from all others. For example, the server on which your allimportant intellectual property (IP) is stored can be placed in one segment, and the part of the network your security cameras are attached to can be another segment. There’s a wall between the two. The benefit of this? If—or rather, when—a device like a security camera is hacked, what goes on in that segment stays in that segment. Containing the malware or cybercriminal to just one localized portion of the network minimizes potential damage. Your IP stays safe. Not incidentally, segmentation also guards against insider threats because sensitive data and systems can be isolated from “curious” employees attempting to venture where they don’t belong.
Everyone Talks Visibility. We Actually Do It. It Starts With 100% Device Visibility.
www.ForeScout.com
mentation Win the compliance game Segmentation also helps you more efficiently comply with regulations that otherwise can be burdensome—and costly if you fail the audits. Take the PCI Data Security Standard (PCI-DSS). Adhering to PCI-DSS means protecting the entire cardholder data lifecycle as it flows to and from payment devices, applications, infrastructure and customers.
This is so difficult that only 52.5 percent of businesses surveyed in 2017 were fully compliant with their annual PCIDSS audit, according to the Verizon 2018 Payment Security Report. Segmentation can reduce the areas of your network that come under audit and thereby increases your odds of being compliant.
Why segmentation hasn’t caught on—yet Segmentation isn’t new. Traditional methods for segmenting networks such as virtual local area networks (VLANs) and access control lists have been around for decades. But most segmentation projects never get off the ground. They’re too complex and labor intensive given the heterogeneous nature of most enterprise network environments, and have traditionally required learning multiple tools from different vendors. The fact that most of these environments are now distributed across data centers, campuses and the cloud doesn’t help. Then there’s the potential to disrupt your business. How do you write business policies so precisely that each of your employees has access to the exact network resources they need to do their jobs—but no more? You don’t want to prevent a senior engineer from meeting a critical deadline because the data she needs is on the other side of a segment wall. Neither do you want her wandering freely through sensitive HR data. The biggest challenge in segmentation is that you don’t really know your network. You don’t have sufficient context to build intelligent policies.
But the bottom line is, if you can’t answer simple questions about what’s connected to your network, you can’t hope to protect your business.
Segmentation—do it right with ForeScout ForeScout is focused on making segmentation an attainable reality for businesses.
Deploy the ForeScout platform, and you immediately know what’s connected to your network. Everything. PCs. Servers. Printers. Internet of Things (IoT) devices like medical equipment and lighting systems. Operational technology like manufacturing equipment. The instant something— anything—attaches to your network, you know about it. No manual scans or software agents required. Because we’re vendor agnostic, we work across heterogeneous environments and legacy networks and with other technologies such as next-generation firewalls (NGFWs.) Then, we work hand-in-hand with your current solutions to automate your defenses.
ForeScout: Transforming security through visibility™ Visiblity is foundational to segmentation. It’s non-negotiable. You can’t protect what you can’t see. ForeScout addresses the barriers to effective segmentation: complexity, high cost, vendor lock-in, and, most importantly, lack of device transparency. With ForeScout, segmentation is a security strategy that is now achievable.
Pedro Abreu Chief Strategy Officer ForeScout Technologies, Inc.
PWC
E X E C U T I V E P R OF IL E
Don O’Neil 156
Don O’Neil is a Director in PwC’s Cloud Computing and Networking practice with a focus on network and infrastructure security. PwC’s CCN solution capabilities span IT Strategy, Shared Services & Outsourcing Advisory, Business Systems Integration, Enterprise Architecture, Technology Infrastructure Solutions, and Business Continuity. Don’s areas of expertise include infrastructure security (Zero Trust, VPN, wired, wireless & service provider), data center consolidation and builds, high availability infrastructure builds, networking, mobility, and enterprise architecture. Don has extensive indepth operational, management and infrastructure technical knowledge across the entire network, storage and compute stack. Industries targeted include media and production, energy, oil & gas, health care, education, government, gaming, finance, banking, retail, telecommunications, technology, travel, security and enterprise solutions. Don is a former CTO of a Infrastructure as a Service (IaaS) start-up in Silicon Valley.
OCTOBER 2018
NORTH AMERICA
“Look at it like this. You always lock your front door in your house. But once somebody’s in your house, you really should be locking all the rooms’ doors so that you can control access to all the individual rooms.” With the immaturity of tools at their disposal, thanks to a lack in investment, dangerous situations can arise for organizations. This is especially the case as O’Neil believes it is only within the past three years that the marketplace has started to catch up to the notion that network access control, and the security surrounding it, is one of the most important components of any edge network companies brings a key challenge
control, network segmentation or
around the security of networks.
micro-segmentation.
“It’s left the door open for hackers
Navigating this changing market-
and bad actors to get into these
place, and supporting these organiza-
networks and cause serious prob-
tions through it, forms what O’Neil
lems,” says O’Neil. The problem then
strives to achieve with PwC. For him it
it seems is that as market players
becomes a task of enabling a shift in
move infrastructure towards cloud
thought process, from a development,
data centers they do so with the
deployment and management and
wrong mentality. As O’Neil notes,
operations point of view, as well as from
most organizations focus on the
a tool set perspective.
security and segmentation of their
The problem he feels is that the
data centers with a ‘front door’ or
demands of the data center customer
perimeter mentality.
have driven companies to invest w w w.gi ga bi t ma ga z in e. com
157
PWC
massively in physical and cloud
says. “Then they just keep throwing
infrastructure as a means of stem-
additional resources in to that bucket
ming the capital costs associated
rather than going through and slicing
with expanding their infrastructure
that bucket up into smaller areas and
internally.
providing adequate control in and out
This is only intensified by the changing regulations surrounding
Nevertheless, regulations surround-
data and network infrastructure,
ing data control has and will continue
such as GDPR and data sovereignty
to drive technological development
across Europe. Companies are now
and implementation and this requires
required to know about every part
the CIOs and CTOs of the world to
of their data centers and be able to
stay ahead of the game in order for
control the flow of that data.
their organisations to not fall behind.
“Many organisations treat their data 158
of those smaller areas.”
centers like one giant bucket,” he
The tools and the traditional way of approaching things, O’Neil explains,
“ Look at it like this. You always lock your front door in your house. But once somebody’s in your house, you really should be locking all the rooms’ doors so that you can control access to all the individual rooms” — Don O’Neil, Director, Technology Consulting OCTOBER 2018
NORTH AMERICA
are simply inadequate to meet the
tries are responding and more impor-
changing regulatory requirements.
tantly how that can translate into
“It means that applications may have
the value they can bring to their own
to be re-architected, new infrastruc-
customers.
ture deployed and it means additional
“We share our experiences with
tools will need to be brought in,” he
other clients in the same industry, or
says. “It’s a complicated process and
similar industries in similar situations.
a costly one.”
We learn how other clients have solved
This is where PwC works with some
a problem and share the information
of the biggest corporations and
that we get on a regular basis from our
businesses from all over the world
vendors,” he says. “What this does is
across a number of sectors. This
allow us to find different approaches,
provides O’Neil and his team with
different product solutions, and enable
a real global perspective of how the
greater value.”
market is changing, how the indus-
This approach extends to the
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PWC
company’s relationship with its
stand the technology trends that are
customer base. O’Neil seeks to
both enabling and restricting growth
understand what the customers have
across the industry. As companies
tried, where they’ve been successful
move towards segmented data
and where they’ve experienced
centers their operating models are
challenges and failure. For him,
shifting also, becoming far more
understanding this is the secret
software defined than ever before.
to enabling future success.
This is due to the flexibility it provides
“Being successful or not being
them, but as O’Neil warns, there is
successful is really irrelevant,” he
a growing danger that comes with
says about deploying specific
moving some of the control of
technologies. “But taking key lessons
network and data away from people
and applying those to the next
in-house.
project, and sharing those amongst 160
“If you have fifty people in an IT
the team and across the entire
organisation trying to solve a problem,
business is very, very important. It’s
but then you have millions of people
about how we share that with our
out there exploring and poking and
clients, and how the clients share
prodding, looking for problems, it’s
it with us.”
just a pure numbers game,” he says.
In collaborating and communicat-
“The people looking for the problems
ing with its customer, vendor and
are going to win, not the people trying
client base, PwC can better under-
to protect against the problems.”
OCTOBER 2018
NORTH AMERICA
“ One day I think it will become everything as a service. That means network as a service, servers, web services, storage, applications, and software as a service. As a result, we’re going to move from a more traditional ‘I own the infrastructure’ model to a ‘I consume the service’ model”
161
— Don O’Neil, Director, Technology Consulting
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PWC
CLICK TO WATCH : ‘PWC AT DAVOS 2018: LAUNCH OF THE 21ST ANNUAL GLOBAL CEO SURVEY’ 162
The issue of cyber security is unlikely to go away any time soon, if at all, but O’Neil can already see the
end-to-end control from the user to the data center. “That really is the ultimate approach
industry responding and fighting back
that we preach through identity-
to better protect its networks and
based control,” says O’Neil. “Under-
infrastructure. Technology solutions
stand who’s connecting to the
providers are investing in and
networks, what they are connecting
developing software-defined control
to and be able to control the entire
systems in order to better identify and
path along the way via those software
understand more information around
controls.”
what devices are connecting to data networks. It’s not just internally as more and
Over the past twenty years the network and infrastructure market has transformed far beyond the
more vendors are looking at the other
historic flat, uncontrolled networks.
side of the equation, providing
As technology continues to evolve,
OCTOBER 2018
NORTH AMERICA
1998
Year founded
223,468
Approximate number of employees
163
PwC has to be prepared to evolve
“That means network as a service,
with it and be ready for the next
servers, web services, storage,
market evolution. O’Neil believes that
applications, and software as a service.
the next paradigm shift will be very
As a result, we’re going to move from
much a continuation of the current
a more traditional ‘I own the infra-
market trend, with customers and
structure’ model to a ‘I consume the
clients seeking out the flexibility of
service’ model.”
software-defined networks and infrastructure. “One day I think it will become everything as a service,” he says. w w w.gi ga bi t ma ga z in e. com
AHEAD OF THE CURVE IN THE EVOLVING TECHNOLOGY SPACE After 30 years of operating, Align continues to define the digital landscape of the data center world
WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO
A L I G N C O M M U N I C AT I O N S
F
or over 30 years, Align has provided next-generation solutions designed to manage client technology needs, optimize
their business operations and secure their IT infrastructure. It does this through three key areas – Professional Services, Managed IT Services and Cybersecurity Risk Management. However, it goes without saying that what worked 30 years ago – or even five years ago – no longer guarantees it will meet the technology needs of today, and of tomorrow. As such, technology solutions providers have had to evolve and innovate faster than the market in 166
order to not only serve this changing client base but stay ahead of the curve. “As a company we’ve been extremely fortunate to evolve with the way that technology has changed and to stay on the cusp of what’s happening with the future landscape of technology,” says Art Dooling, Managing Director, of Align. “Let’s be honest, technology has evolved so much over the last 30 years that we’ve had to. What we were doing 30 years ago is completely different to what we are doing today.” Align was formed in 1986 in a pre-internet age. In fact, Align was formed merely five years after IBM launched the very first, commercially available, personal computer. Dooling, along with Tom Weber as Align’s Director of Data Center and Design, both share a unique OCTOBER 2018
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perspective of the emergence of new technologies — matched with increasing client demands and expectations — and as such they both understand the importance for Align to continuously redefine what it can do for its clients. “Companies around the world are developing something new on an almost daily basis,” says Weber. “The fact of the matter is that as a firm you simply cannot put your focus into every new solution or product. You have to select the right ones and develop 168
solutions that allow our customers to maximize the efficiencies that these new technologies afford.” This understanding is written into the company’s very DNA with both Dooling and Weber pointing to a saying that defines the strategic direction of Align: if our firm was doing the same thing it was doing five years ago we would be out of business. One particular market that is undergoing substantial growth and momentum is the data center space. Over the past decade, data center investments have soared as more and more companies are moving legacy infrastructure into cloud solutions and leasing OCTOBER 2018
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“ Developers and companies around the world are coming out with something new on an almost daily basis” — Tom Weber, Director of Data Center and Design
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A L I G N C O M M U N I C AT I O N S
“ They come in with an intelligent group of technologists of their own that support their business and Align has been able to take advantage of this knowledge exchange and take that forward to other clients” 170
— Art Dooling, Managing Director
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Power busway system for a leading cloud computing customer 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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Build in progress: 2-tier cable conveyance system and cabinet floor grommets for a colocation services customer purpose-built data center whitespace. Align has designed power, cabling and
competition increasing daily,” says Weber. “But Align is defined by being
pathways for over 250MW of production-
ahead of the curve. So, what do we do
ready data center space as it looks to
to push our solutions offering further?
provide “a solution for everyone.”
We strive to provide more cost effec-
This is Weber and Dooling’s domain
tive data center designs, workplace
as Weber takes charge of the design
technology solutions, audio visual
and build of the whitespace and
technology, Wi-Fi and big data. These
Dooling oversees the physical imple-
are hot topics right now, but it’s impor-
mentation of data center technologies
tant to understand what is ahead and
— the migration of the data and moving of applications and workloads. “It’s an amazingly hot market with OCTOBER 2018
think about a year, or two or three years’ time. You’ve got to continually refresh and upgrade the skillsets on
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$75mn+ Approximate revenue
Align with a unique insight into what clients are asking for and how well Align is adapting and exceeding those expectations.
1986
Year founded
“Our greatest advantage is the diversity of clients that we have, and what they’re trying to do in various industries, whether it’s health, whether it’s financial, whether it’s pharmaceutical, retail, media, you name it,” says
165
Approximate number of employees
Dooling. “Our customers have worldclass engineers and technologists of their own to support their business. Align strives to partner with these teams, understand their business model, its pain points and to use this knowledge to introduce new technologies and
your team. But our differentiator is to
smart solutions that improve efficiency
provide top customer service. The
and eliminate their IT challenges.”
customer needs to feel like they are
Integral to this knowledge exchange
your biggest and only priority. That is
is people — and Weber firmly believes
what Align offers.”
that Align employs some of the smartest
Key for Align is understanding
and most innovative people in the
exactly how and where the market is
industry today, when a number of
shifting and this is achieved by its close
companies in the data center industry
collaboration with clients and partners
look to third parties for the skillsets and
across the globe. Align works with
talented and knowledgeable workforce
major customers across all market
completely in-house. This is crucial in
sectors and Dooling believes that each
delivering the best possible service to
client and each relationship provides
the most important component 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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A L I G N C O M M U N I C AT I O N S
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Align’s proven framework includes the governance, process and tools to collect, store and analyze application and infrastructure technology to support future state transformations
Align’s entire value chain, the client. “As a firm we are technology agnos-
whether it’s a networking architecture question or a simple cable plant item.
tic and we present ideas and recom-
My SME colleague can give me the
mendations based on client needs,”
right insight or multiple options to solve
says Weber. “So what we have done is
our customer’s challenge. That’s real
we have ensured that in every area of
value for our customers.”
our business we have people who know
Naturally, as a technology company
their specialty and are true leaders in
that has been in business for over
that field.”
three decades, Align has established
“Our professionals are so knowl-
and fostered key strategic partners to
edgeable, in all the leading solutions,
help the company to continue to grow
that I can lean back and ask a question
and remain a leader in the field. But
or ask for an opinion from any one of
what is it that makes a key partner?
our Subject Matter Experts (SME),
How does Align not only select the
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“right” partner but continue to work with that partner both today and in the future? For Align, it’s a combination of working with leaders in the field, but also leaders who are willing to grow with Align. “We try to look first at the leaders in the field, but also ask: who is innovating? Who is sticking with their product and selling it year in, year out? And who is actually seeing issues out in the field and making manufacturing changes to solve these issues?” says Weber. Weber recognises that it’s not a one-
“ We really take every project personally and if we’re taking on a project for you… it’s going to get done better than anyone else could do it” — Art Dooling, Managing Director 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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way relationship and that Align must allow itself to be held to the same standards that it expects of its partner network. “I think they look at it the same way. There are leaders in the field, and then there are innovators. If you can get both in one company, that’s tremendous. We are committed to finding partners who employ the leading innovators and the strongest leaders in the field.” Dooling feels that this is best represented in the company’s approach to Managed IT Services. For him it is imperative that
“ There are leaders in the field, and then there are innovators. If you can get both in one company, that’s tremendous” — Tom Weber, Director of Data Center and Design
the company understands what “Day-Two”
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looks like, not only for the partners, but also for the client. “Sure, it’s great we sold a solution and are working together, but then what?” asks Dooling. “What happens in 12 months or five years’ time and they’re looking to expand or grow? Where will this technology take them? I think that’s what we’re smart about, asking those questions to understand where these technologies are going and how we can grow together.” Having been with Align from the very beginning, Weber has seen first-hand just how much the company strives to be the very best. For him this isn’t just talking the talk, as he says Align truly “walks it” and he can point
Patching from switch port replication panels w w w. g i g a b i t m a g a z i n e . c o m
A L I G N C O M M U N I C AT I O N S
Leveraging data captured during the current state, Align will work with your team to determine the future state(s) and costs for each app based on business requirements and technical standards
178
to a number of successful engagements
premier firm for our clients, and we are
as proof. But it’s not just about the size
delivering on that. In my time here I can
of a client or the profit margins that
honestly say we have never lost a client
Align has amassed and achieved over
due to not meeting expectations. We
the years, Weber believes the success
have always met and exceeded them
can be measured by one simple metric.
because of our people, our process
“We have been incredibly successful
and our tools.” And a measure of that is
over the years and for me it’s down to
that over 90% of Align’s customers are
our communication and our honesty,”
repeat clients.
says Weber. “We aren’t the cheapest firm out there, but we strive to be the OCTOBER 2018
As the company looks to the future — with Dooling readily admitting that he
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and the business has to have an eye
a project for you, it’s going to get done
well and truly on tomorrow — it is those
and it’s going to get done better than
three elements that he identifies as the
anyone else could do it.”
key to the longevity of Align both now and in the future. “For me our value comes from the processes that we have in place, the expertise that we have, and the tools that we use,” he says. “We really take every project personally, and if we’re taking on w w w. g i g a b i t m a g a z i n e . c o m
TM
INSURANCE LIMITED
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Rewriting the rule book for Canadaâ&#x20AC;&#x2122;s insurance brokers WRIT TEN BY
L AUR A MULL AN PRODUCED BY
GLEN WHITE
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PBL INSURANCE LIMITED
Delivering one-to-one insurance services with cutting-edge technologies, PBL Insurance is reshaping the way Canadian insurance brokers do business
D
igitization is shaking up industries across the globe and it seems the insurance sector is no exception.
For PBL Insurance, which has provided risk and insurance services to Canadians for almost a century, there was no doubt that digitization would be a central pillar of 182
its strategic plan. The firm’s Director of Technology, Joey Faraone, says that by undertaking a root-and-branch digital transformation and overhauling its legacy systems, PBL Insurance is “re-writing the way insurance companies do business in Canada”. “I would say that technology is playing a very big role in driving PBL’s transformation,” he explains. “We went from having some very old technology pieces running our network to understanding that now is the time to invest and prepare the company for the next 20 years of the technology curve.” Previously, Faraone says that PBL Insurance didn’t have a focused internal OCTOBER 2018
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technology direction and so the Canadian firm decided to bring its digital strategy in-house. “The company wanted to get a better grasp on today’s technology and look at where technology will take the insurance industry in the future,” he says. “I was brought in to lead the development and management of new technologies and ensure that they align with the company’s business strategy.” Becoming a digital broker is no easy feat, but this transformation was firmly at the top of PBL’s agenda. Starting from the ground
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up, the Ontario-based company set up brand new back-end infrastructure, including new fiber circuits, routers and E X E C U T I V E P R OF IL E
Joey Faraone is a dedicated, dynamic and enthusiastic certified IT professional who specializes in project managing innovative data solutions to improve system stability, functionality and efficiency. Faraone is quick to familiarize himself with the latest technologies and industry developments while demonstrating a logical and analytical approach to solving complex problems and issues. Faraone is the Director of Technology at PBL Insurance where he possesses excellent interpersonal and communication skills and the ability to develop and maintain positive internal and external relationships.
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switches. “We’re wiping the slate clean
software. In using a cloud-based,
and redesigning everything. We’re rolling
analytics-driven system, Faraone says
out new technologies to help us minimize
it’s reducing administrative burdens
the equipment footprint but not sacrifice
while simultaneously enhancing the
the service to our clients,” says Faraone.
visibility of its operations.
One of the company’s most cogent
“We are the first Canadian company
uses of technological innovation has
to move to the TechCanary platform,”
been how it has selected a new cutting-
notes Faraone. “You could say there’s
edge broker management system. By
a lot of eyes on us to see how the
adopting TechCanary, a solution based
solution is being rolled out in the
on Salesforce’s platform, PBL Insurance
Canadian market.” With such a wide
is breaking away from the confines
range of clientele and data, Faraone
of traditional insurance technology
believes that the platform will help
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“ We have a one-on-one direct relationship with our clients. Our brokers, our Account Executives and our staff treat our clients and customers as one of their own” — Joey Faraone, Director of Technology
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the company meet its customers’ needs
data optimization and analytics while
and see what else it can do for them as
leveraging a breakthrough in routing
an organization. “It means that we don’t
efficiencies, enhancing performance
have a one-way path for our clients, we
and reliability with the flexibility and
can have a four-lane highway,” he notes.
affordability of a cloud service.
Shifting away from costly, hardware-
“With our new network being rolled
defined private networking solutions,
out, we’ve also put a lot of new con-
PBL Insurance has also implanted
tracts in place and we’ve implemented
a new software-defined wide-area
a new managed service provider (MSP),”
network (SD-WAN). This gives PBL
Faraone says. “This is helping us roll
the ability to leverage efficiencies and
out our network and enhance our user
create a more reliable network. It also
experience internally. The experience
gives the broker the option to use
that our internal staff has been used to w w w.gi ga bi t ma ga z in e. com
PBL INSURANCE LIMITED
versus where they are today has been
know where all of our data is and that
a complete 180-degree turnaround.”
it’s accessible to us at a drop of a hat.
Cloud technology has been a major
“It’s promoting efficiency and produc-
trend in the insurance industry. Aside
tivity, but it will also change the customer
from its ability to lower costs and boost
experience,” he continues. “By using
productivity through mobile working,
cloud technologies like TechCanary,
it also offers a business continuity plan
our customer will be able to get faster
and security. Not one to stay in the
quotes and faster service while we tie
shadows, PBL Insurance is embrac-
everything together.”
ing cloud technology through its new
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With cutting-edge technologies being
broker management system and
rolled out every day, technology partner-
colocation site.
ships have become critical to any digital
“We are moving towards the cloud
transformation. Faraone believes that
more and more every day,” Faraone
the company’s alliance with technology
says. “There’s no downtime and there’s
innovators like MicroAge is helping to
no lag, so efficiency is huge with this roll out. It’s ensuring that slow technology isn’t being used as a scapegoat. Our new broker management system also uses cloud technology which means our Account Executives can log into our system from anywhere and do business right on the spot. “We also have a very good system where we back up everything on our network nightly and then we move it to a colocation site which has its own back-up there. Then we move it to the cloud,” he continues. “It may sound like there’s a back-up of a back-up, but it’s very important to make sure that we OCTOBER 2018
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“ We are the first Canadian company to move to a TechCanary platform. You could say there’s a lot of eyes on us to see how TechCanary is being rolled out in the Canadian market” — Joey Faraone, Director of Technology
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drive new ways of thinking. “MicroAge is a global company which provides insights with network engineers,” Faraone explains. “We collaborate to work on developing and understanding the latest technologies to see how we can implement them here at PBL Insurance. We have continuous improvement sessions on how we can cut a little here, add a little there. This ensures that we run in a very lean but efficient way.” Behind any successful transformation is the right team and a culture that fosters innovation. With this in mind, 190
PBL Insurance strives to engage staff by asking for opinions on the direction they’d like to see the company go. “When we decided to change broker management systems there were a lot of discussions, not just at the top but among all users about who is going be impacted by it. It’s changing the complete way our staff do work on a day-to-day basis,” comments Faraone. “The system was received very well. I think the fact that we are evolving our technology and our way of doing business is helping to attract top talent to the company because they want to be part of this journey.” OCTOBER 2018
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CLICK TO WATCH : ‘TECHCANARY OVERVIEW’ 191 With over 200 employees and 10 offices spread throughout the province, PBL prides itself on being uniquely Ontario based. Driving efficiency and productivity with its new digital tools, Faraone says that this transformation is not just reducing costs and administrative burden, it’s also freeing up more time so that it can give its clients the personable and responsive service they expect. “We have a one-on-one direct relationship with our clients,” notes Faraone. “I think that’s where we differ from other brokers. With 10 strategic w w w.gi ga bi t ma ga z i n e. com
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“ We’re wiping the slate clean and redesigning everything.We’re rolling out new technologies to enable us to minimize the equipment but not sacrifice the service to our clients” — Joey Faraone, Director of Technology
OCTOBER 2018
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office locations throughout the province, we have the ability to service our clients locally, and we take pride in servicing communities big and small in Ontario. Our brokers, our Account Executives and our staff treat our clients and customers as if they are one of their own.” Technology and customer service go hand in hand at PBL Insurance, and as the industry shifts under the influence of the technological revolution it seems the company is ready for any dynamic changes that may come its way. “In five or 10 years, I expect PBL Insurance will be the top broker in Ontario, building partnerships yearly with other brokerages in the industry,” predicts Faraone. “I believe we will be a leader in innovation and that we will be an example to other brokerages on how they can leverage the latest technology to their advantage. It’s not always about spending the most money and getting the latest and greatest, it’s about understanding and fine-tuning technology to your company’s needs.”
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Leading innovation for tomorrowâ&#x20AC;&#x2122;s insurance customers WRIT TEN BY
DA LE BENTON PRODUCED BY
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Nasrat Edoo Sirkissoon (left) is a Senior Manager at Sanlam Enterprise Development in Durban. She plays a vital role in managing consultants who service businesses based on Sanlamâ&#x20AC;&#x2122;s innovative BlueStar model. With her are Joy Bothma, BlueStar Support Assistant, and Mannie Kambourakis, Business Development Manager: SFA East Coast.
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Through a digital transformation, Sanlam continues to provide cutting-edge market solutions for the millennial generation
T
he strategic adoption of technology in the insurance and personal finance industry
is being driven by a commitment to meet and exceed customer expectations and deliver high levels of service. The industry has quickly recognised the compelling need for digital innovation as a defining and redefining factor to its success and survival.
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“Technology has always been a key
of technological capability from an
part of the financial landscape,” says
insurer as we would from a bank, telco
Hennie de Villiers, deputy CEO of
or another service provider.”
Sanlam Personal Finance – the retail
Sanlam has, since 1918, strived to
unit of leading African insurer Sanlam.
be the leader in client-centric wealth
“Yet, things have shifted significantly
creation, management, and protection
over the years with technology playing
in South Africa, but it is also a global
an increasingly important role in our
insurer with an international footprint
day-to-day lives. This means that, as
in 30 African countries amongst others.
a population, we expect the same level
Adept at servicing customers and w w w. g i g a b i t m a g a z i n e . c o m
AFRICA
with an accomplished track record,
our customers – even millennials – still
Sanlam has realised the importance
require an element of human interaction,
of embracing technological shifts to
even as we move further away from it. So,
continue to deliver and exceed its
the experience of implementing digital
customers’ expectations.
innovation varies across industries.”
For de Villiers, a point of departure
Sanlam is driving a company-wide
was to consider customers’ experiences
digital transformation that will see it
in other industries. “It is increasingly
fully embrace the technologies of today
important for us to be able to compete
and tomorrow in order to deliver the
with the best experiences our customers
most effective and seamless insurance
have elsewhere. We acknowledge that
services to modern-day customers.
they want the same experience from
As an insurance services provider,
insurance as they expect from their cell
the company engages a number of
phone provider and their bank,” he says.
different stakeholders, from intermedi-
“Yet, while there is this common pursuit
aries and internal staff through to the
of digital enablement, insurance differs
customer. These stakeholders will
slightly from other industries in that
all shape and influence the company’s
E X E C U T I V E P R OF IL E
Hennie de Villiers With a career spanning over 30 years, Hennie De Villiers has lived and breathed technology and leadership with Sanlam. In a dual role, as both Chief Executive of Sanlam Individual Life and Segment Solutions and Deputy CEO of Sanlam Personal Finance, De Villiers responsibilities cover Sanlam’s offering to the Growth, Small Business and Professional markets. He also oversees SPF Acturial, SPF IT and SPF Business Change.
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021 680 3300 | www.gijima.com
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Andre Schutte (Solutions Specialist at Glacier) helping intermediaries become familiar with the Glacier Investment Hub – a platform that allows intermediaries to engage on-line with their clients, from the initial proposals to the electronic signing of applications and instructions.
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“ We need to ensure that people are empowered and enabled” — Hennie de Villiers, Deputy CEO of Sanlam Personal Finance
digital transformation, yet for de Villiers there is an elementary core goal at the heart of the business’ digital transformation strategy. “It’s about how we can make the experience for customers so simple, so enjoyable and so pain- free, that they will want to continue doing business with us.” While Sanlam acknowledges this strategic imperative, it’s not all plain sailing as technological transformation can typically present a number of challenges, particularly to a business that’s been in operation for over a century. A key challenge has been the w w w. g i g a b i t m a g a z i n e . c o m
SANLAM PERSONAL FINANCE
company’s legacy infrastructure
Intermediaries interacting with the Glacier Investment Hub at its launch
and systems, and de Villiers contends that this challenge is probably unsurprising for an insurance provider of Sanlam’s tenure. This presents its own unique hurdles and de Villiers believes the answer to overcoming these obstacles is to place a great deal of investment in the company’s most important asset — its people. “You’re used to doing things 202
a certain way, but life, and most certainly business, moves so fast that we have to embrace change, experiment and take risks. This requires a change in culture,” he says. “One of the ways in which we ensure that the organisation embraces change collectively is through continuous staff engagement from the top through to every level of the business.” This approach, he feels, is crucial in order to implement technology and empower employees to open their minds to this changing landscape. It allows employees to
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Members of Glacier’s IT development team showcasing the Glacier Investment Hub to intermediaries
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CLICK TO WATCH : ‘SANLAM TVC – THE 200-YEAR LIFE’ 203 recognise and understand their role, not only in the organisation of today, but the one of tomorrow. “We need to ensure that people are empowered and enabled,” he says. “Technology is complex and there is no silver bullet for us, but we have motivated and incredibly hard-working employees and so continuous engagement really brings people along.” With the technology conversation defined by buzzwords such as Artificial Intelligence (AI), Robotic Process Automation and Data Analytics some companies may fall into a trap of investing in these technologies for
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the wrong reasons in order to ‘keep up’ with the industry. De Villiers recognises this and understands that in order to grow in the right direction, Sanlam has to embrace appropriate technologies. “We will always base our technology decisions on whether we believe it will have a specific strategic value for us or if it will help us to achieve a specific OCTOBER 2018
“ We expect the same level of technological capability from an insurer as we would from a bank, telco or another service provider” — Hennie de Villiers, Deputy CEO of Sanlam Personal Finance
AFRICA
After-sales service to clients and intermediaries is what Nozipho Nkonki (front), First Line Manager, and her team in the SPF Client Care Centre at Sanlam Head Office do best. Next to Nozipho is Ivannah Davids. At the back (from left) are Lebo Tamose, Renier Jacobs, Tandokazi Mkaleni and Nyameko Fana.
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strategic outcome,â&#x20AC;? he says. To this end, Sanlam has been able to call on the invaluable support and
Sanlam develop the internal skills needed to drive digitisation. â&#x20AC;&#x153;South Africa is an emerging market
experience of a key strategic partner
with growing skillsets. Zensar has
in Zensar. Zensar is a leading digital
done a tremendous amount of work
solutions and technology services
with us in assisting to develop those
company that specialises in partner-
critical skillsets through a number of
ing with global organisations across
programmes and training opportunities.
industries on their digital transforma-
This has really been a key element that
tion journey. Coupled with this,
has allowed us to both focus on, and
Zenzar also helps companies like
enable, the technology implementation.â&#x20AC;? 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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From left are Daphne Jacobs, Sherezaan Petersen, Denver Sedgwick and Melanie de Kock from the Sanlam Client Care Centre after the introduction of the first ‘digital recruit’; robotic technology programmed to perform repetitive tasks that can be automated. 206
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Technology and digital transformation is an ever-evolving process and Sanlam cannot rest on its laurels. It has to be mindful of the future and how the technology trends of today can and will influence the industry of tomorrow. Regardless of where the next shift in innovation comes from, Sanlam will continue to ensure that it provides the best possible service to its clients and customers. “Whatever the future holds for us, I believe it is critical for our technology adoption to be in line with our strategy,” he says. “It needs to help us to really win the battle for the customer and ensure that we engage them at a level that will make them loyal and persistent - with no desire to go anywhere else.”
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Tapping into an emerging millennial insurance market WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
JUS TIN BR AND
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OLD MUTUAL iWYZE
Old Mutual iWYZE has developed online sales architecture to cater to its digital savvy customer base 210
T
he African insurance market in is turning into a hotbed of innovation. Life insurance, as a key example, grew by 13.7% from $39.465mn in
2016 to $44.899mn in 2017, with South Africa leading the way, with a market share of $71.7%. Making up about 33% of the South African population, the countryâ&#x20AC;&#x2122;s growing millennial market has led to rising demands for convenient and accessible products and services, which deliver real-time information. Mobile wallet solution M-Pesa has gained significant momentum, with further digital tools enabling companies to more effectively engage with customers, as well as give them the capability to target rural areas and cater towards a diverse demographic. Part of the Old Mutual Group, Old Mutual iWYZE is a direct insurance provider, offering car, home and life insurance. Whilst the larger group works with brokers and partners, iWYZE listens to its customers and their needs to deliver an interactive customer OCTOBER 2018
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E X E C U T I V E P R OF IL E
Jan Marais Experienced Head Of Information Technology and Strategic Projects with a demonstrated history of working in the insurance industry. Skilled in Business Process, Enterprise Risk Management, Analytical Skills, International Business, and Contact Centre Operations. Strong information technology background with an IPSD (Internet Programming Specialist Diploma) focused in Web, Mobile and hosted solutions.
w w w.gi ga bi t ma ga z in e. com
HALLMARK
S A LVAG E S P E C I A L I S T S
The Smart Salvage Solution
Hallmark is well established in the salvage arena, having been in the business for more than 16 years. With a sound capital infrastructure of Bluespec Holdings, a leading CRM system (Salesforce), centralised storage, long standing Blue-chip clients and an active customer database of well over 13 000 customers, Hallmark is best positioned to cater for niche Insurer salvage needs.
KEY BENEFITS
1. Fixed Percentage Returns 2. National Upliftment 3. Proven Track Record 4. Online Functionality (tender and timed auction) 5. Full Cloud based admin and tracking functionality 6. Pre-owned Dealership Model 7. Large Active Client Base
FOR MORE INFORMATION CONTACT Managing Director: Gavin Passos: 073 676 0005 Email: gavin@hallmarkauto.co.za Landline: 011 440 0601 Website: www.hallmarkauto.co.za
AFRICA
213 experience, effectively driving growth
lining the development of new
across its products.
self-service technologies, moving the
“We work closely with Old Mutual
business forward in digital innovation.
Insure, another member of the Old Mutual Group and they are our
GENERATIONAL SHIFT
largest partner. We make use of their
When exploring the advantages of
IT infrastructure and services
customer-self-service technology, tools
to ensure that we deliver the best
such as phone calls, standard text
customer experience for our cus-
messaging and even social and
tomers,” explains Head of IT Opera-
mobile based applications have
tions, Jan Marais.
revolutionised the way in which people
Obtaining over 18 years’ experience across multiple countries, Marais’s
communicate and interact. However, whilst over 60% of the
goal is to make the business in-
Sub-Saharan Africa population
creasingly adaptable and robust,
remains unbanked, iWYZE, as well as
and has been a key figure in stream-
many other insurance companies, have w w w.gi ga bi t ma ga z in e. com
OLD MUTUAL iWYZE
“ The journey of how people would like to interact is what excites us and that’s part and parcel of the foundation that we are building to enable that” — Jan Marais, Head of IT Operations
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turned to technology to address this untapped market. With a highly knowledgeable, skilled team, the company’s workforce has gained a solid understanding of the short-term insurance industry and what its customers want. “The journey of how people would like to interact is what excites us and that’s part and parcel of the foundation that we are building to enable that,” says Marais. “When it comes to making sure that customers can interact with us through our digital channels, we need to understand their real risks at any time and should be able to get that information without any effort from the customer. “We don’t want an overbearing forms process, where individuals have to answer a plethora of questions for us to be able to identify and assess their risk. We want to be able to achieve that with as few questions as possible and for us to tap into existing databases to be able to pre-populate information, so that we can get a person’s risk assessed without overbearing question sets.”
INCREASED AGILITY Ramping up its efforts to become a key player within the South African market, iWYZE underwent a market competitor analysis to look at how to bring new w w w.gi ga bi t ma ga z in e. com
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OLD MUTUAL iWYZE
products to market, as well as embed the right policy administration systems to gain the trust of its customers. “From a technology perspective, we had to put a lot of foundations in place to be able to give the business the opportunity to run at pace, to service our customers how they would like to be serviced. A big part of this is using technology and social media. Furthermore we’ve had a massive internal focus on the customer-centric service model to give our customers a world-class customer experience – this is cemented in how we engage our customers at each touchpoint through216
out the customer journey,” says Marais. Although cloud has become an increasingly versatile tool within the insurance industry to drive down costs, promote scalability and improve business processes, iWYZE’s main focus is to be cloud-ready. “We have a cloud-based footprint, so for us to be able to be a cost-effective IT organisation, it’s important to have a fine balance between re-using existing infrastructure of the larger business versus what we put in the cloud to be responsive to customers. It is a very fine balance because that is what dictates cost-effective IT and to make sure that we’ve got the security around that,” he adds. “To be successful and agile in such a fast-paced and competitive industry, it’s OCTOBER 2018
AFRICA
60%
The population of Sub-Saharan Africa that remains unbanked
iWYZEâ&#x20AC;&#x2122;s main focus is to be cloud ready
217
iWYZE works closely with customers, listening to their needs to deliver an interactive experience
iWYZE underwent a market competitor analysis to look at how to bring new products to market
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OLD MUTUAL iWYZE
218
OCTOBER 2018
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important for an organisation’s IT department to be close to and understand the business, the people, the processes and the products. “Trust in the delivery of IT is something which takes a while to mature. One of the ways which has made us successful is running with a small business mentality
“From a technology perspective,we had to put a lot of foundations in place to be able to give the business the opportunity to run at pace, to service the client how they would like to be serviced” — Jan Marais, Head of IT Operations
within a large business. “This has given us that agility, sharing services with the larger business, trying to streamline and bypass overbearing governance and also supporting the bigger business by running proof of concepts (POCs) for them to be able to make decisions quicker.”
HIGH PERFORMANCE CULTURE Harnessing a strong policy administration system and partnering with TIA in Denmark, the business has sought to implement a service-oriented architecture, without compromising on the customer experience. As a result, its front-end system has remained agnostic from any of its systems in the background. Additionally, Hallmark Salvage Specialists has been essential to its claims division, bringing on board a transparent and sophisticated operation to recoup costs incurred where required. By adopting a high-performance culture, w w w.gi ga bi t ma ga z in e. com
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OLD MUTUAL iWYZE
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OCTOBER 2018
AFRICA
“ It’s important to have a fine balance between re-using existing infrastructure of the larger business versus what we put in the cloud to be responsive to clients” — Jan Marais, Head of IT Operations
the business’ new inhouse IT department remains committed to visualising data to guarantee better, data-driven decision making. Bringing its outsourcing activities inhouse, iWYZE has developed an exceptional, bespoke IT infrastructure whilst taking advantage of the larger business’ existing infrastructure, delivering world-class results. “I think we’ve got a very strong brand, Old Mutual is one of the oldest brands in South Africa, and the brand is synonymous with trust,” concludes Marais. “Technology is always something that can be replicated and duplicated. Building a brand that is so strong and then bringing it into modern times using technology is what will give us an edge over the competitors, for sure.”
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222
Coal Services: a growing mine of data WRIT TEN BY
ANDRE W WOODS PRODUCED BY
ANDY TURNER
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COAL SERVICES PT Y
224
Gillian Kidson, Head of IT at Coal Services, on how she is overseeing the digital transformation of the company to benefit its internal users and extensive stakeholder base
T
he challenge of transforming a business is no easy feat. When that push for change
requires a shift to a more agile customer focused model, as well as harnessing and renewing technology platforms to not only future proof the business but create a best practice environment, that task can become even more complex. Coal Services is an Australian industry-owned Specialised Health and Safety Scheme which delivers a suite of services in relation to the NSW coal
OCTOBER 2018
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225
mining industry including workers
of the industry, which presents its own
compensation insurance, health
set of challenges in that the status quo
surveillance, occupational hygiene
must be maintained at the same time
monitoring, and training and rescue.
as the organisation builds a new way
Owned by industry for industry,
forward.
through the NSW Minerals Council
Gillian Kidson is Head of IT at Coal
and the Construction, Forestry,
Services and it is her job to oversee
Maritime, Mining and Energy Union
the transformation of the company
(CFMMEU), it has been protecting
from a technological point of view,
workers in one form or another for
to work with leading edge vendors
more than 90 years.
and create a best practice environ-
The company has statutory functions that are critical to the health and safety
ment for IT infrastructure. â&#x20AC;&#x153;I needed to gain an intimate knowlw w w.gi ga bi t ma ga z in e. com
A S I A - PA C I F I C
edge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy. There was an appetite for significant efficiencies to be made using new technologies and improved data management; it was a case of building the right IT structure, architecture and infrastructure,” she reveals. The biggest challenge for Kidson and her team was working through the company’s legacy systems, which represent nearly 100 years of activity with each part of the business also having different requirements and applications, many of which weren’t being utilised. “Not only was it a bit of a clean-up, but we also looked at how we could utilise these tools across multiple businesses; not just one,” she comments. “We are upgrading the legacy infrastructure to a level where it will able to provide significant performance improvements in meeting the needs of the new systems that are coming in. We integrated current technologies, including: AWS, Azure and Office 365 to ensure we have best practice systems in place to allow us to build for the future and enhance performance. In order to implement changes to legacy systems, particularly within the insurance arm of its operations, Coal Services has, for
“ I needed to gain an intimate knowledge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy” — Gillian Kidson, Head of IT, Coal Services
227
COAL SERVICES PT Y
“ The goal is to provide systems that will give ease of access for our employees to provide better levels of service to customers” — Gillian Kidson, Head of IT, Coal Services
At a larger level, and because it operates across multiple touch points with its customers, Coal Services has amassed a large store of data surrounding workplaces, mine companies and workers. “An important part of the architectural design has been geared towards how we share the data that can be shared and lock down the data that can’t. So, we’re just working through that architecture at the moment with a view to implementing some master data sets across the business and
228
example, partnered with Finity to
a middleware application to enable
develop a tool that blends an individu-
us to transfer and share that core
al’s entire claims history together so
data,” Kidson explains.
case managers and injury management
“The goal is to provide systems that
advisors will have a holistic view of the
will give ease of access for our employ-
person (rather than a single claim or
ees to provide better levels of service
injury view) to enable a more person-
to customers. But at the same time,
centric approach to injury management
these new systems must provide useful
and improved experience for the worker.
information to help us glean specific
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229
insights and improved knowledge to
they can.
enable better solutions. This will enable
So, how does the system function
the organisation to be more customer
when facing the client? “We have five
centred and in doing so, will allow for
different businesses that will interact
an increase in customer efficiencies.”
with the coal miner for various reasons.
With large data assets comes the
From a health perspective it can be
need to protect personal information
anything from a pre-work placement
and comply with privacy policies too.
medical required under the statutory
To ensure these requirements are met,
responsibilities of Coal Services,
Coal Services has engaged InfoTrust
to annual medicals for mines rescue
as its security partner, who are working
brigadesmen. On the other side,
with Kidson at each stage of these
you’ve got injury claims and manage-
projects to ensure that they apply the
ment processes as part of the
best and most trusted form of security
workers’ compensation component w w w.gi ga bi t ma ga z in e. com
www.virtualitservices.com.au | support@virtualitservices.com.au |
CONTACT US
Virtual IT Servicesâ&#x20AC;&#x2122; core business is Managed Services. We provide a range of flexible support options to partner with our customers to improve the IT environment and provide excellent service. We differentiate ourselves from other Managed Service Providers by offering complementing consulting services and development services.
A S I A - PA C I F I C
CLICK TO WATCH : COAL SERVICES – CORPORATE VIDEO 231 of the scheme. In addition, every NSW
the miner so they have some visibility
coal miner will likely come through our
of their own information; it means they
doors for some sort of training, and
can access personal data, see their
we also maintain their qualification
qualifications, and check their
records,” she said.
medical information.”
“The interactions are as varied as
The coal industry is undergoing
the data sets, so we are working
dramatic change and, as a result,
towards giving people access to see
capabilities at Coal Services need to
what training they’ve had and when
be nimble and agile enough to respond
they did it. They will be able to see how
to the evolving industry landscape.
many medicals they’ve had and keep
“While improving internal system
tabs on their claims. They should be
performance and data collection
able to go in through a portal and see
capabilities are important, it’s of great-
all their information. The immediate
er significance that we can under-
goal is to give that capability back to
stand the data and work with industry w w w.gi ga bi t ma ga z in e. com
COAL SERVICES PT Y
232
1921
Year founded
330+
Approximate number of employees
OCTOBER 2018
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to recognise emerging issues.” “Changes in technology can have a direct impact on that and can aid in the development of solutions. Mine workers are often transient and the industry employs a good deal of contractors, which requires us to respond quickly to provide the best possible services to customers. It’s give and take on any day of the week and adaptability is key.” Kidson has fostered a number of long term strategic partnerships as a way to not only help deliver on requirements, but to also help improve performance as the organisation develops its own capabilities. “Virtual IT has been on board since the beginning providing assistance with architectural and network design as well as business intelligence tools. Having them on board has been a learning curve for us all and has provided us with some insights into what we’ve got and how best to reuse what we can.” One of the first areas Kidson looked at was occupational health who had been running their business across six different applications. The idea is to consolidate as much of that as possible into one application. “We’ve consolidated the first two applications with the help of Appian, who provide a platform Workflow Tool. We’ve consolidated bookings and health assessments and that’s due to go live in November.” w w w.gi ga bi t ma ga z in e. com
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COAL SERVICES PT Y
With data comes responsibility and security and Coal Services looked to Trusted Habitat when it came to data governance. “We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow,” Kidson explains. Coal Services’ employees also need to make sure that data is available and can be where it needs to be at the right
234
“ We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow” — Gillian Kidson, Head of IT, Coal Services
OCTOBER 2018
time. As a result, and to ensure best practice, the company has gone for a new high-speed network, supplied by Telstra. Meanwhile, NTT is working with Coal Services on disaster recovery and business continuity planning for the infrastructure and server environment. “We’re currently working our way through what that’s going to look like, with a view to implementing a ‘disaster avoidance’ environment and not the standard ‘disaster recovery’. “The strategy in place at the
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235
moment, has probably got another two to three years to run. We’re
based on their actions.” What these long term strategic
obviously adding to that all the time
partnerships do is allow us to improve
and it’s constantly under review. It’s an
performance and implement best
ever-evolving piece of work. If we can
practice solutions across the busi-
get to the point where we’re delivering
ness lifting both our internal and
that well, then we’ll start to see a bit
external customer experiences. The
more of the AI (Artificial Intelligence)
changes to our IT infrastructure will
technology being introduced.”
provide tremendous benefits towards
“First, we will have somebody
improving our stakeholder service
logging into a portal, then we would
provision in a significantly more
like to see that portal being more
effective and efficient manner.
intuitive and intelligent and delivering content to the customer or client w w w.gi ga bi t ma ga z in e. com
PMS
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DIGITAL DISRUPTION IN A WIRELESS WORLD WRIT TEN BY
L AUR A MULL AN PRODUCED BY
K RIS TOFER PA LMER
A S I A - PA C I F I C
237
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B R I G H T S TA R
Brightstar handles over 80 mn devices every year and with its latest digital transformation, it looks to be involved at every state of a device’s lifecycle.
L
ike any product, today’s mobile devices have a clearly defined lifespan and Brightstar has placed itself firmly at
the heart of it. Tapping into today’s wireless ecosystem, the company looks after every stage of a device’s lifecycle for its customers, from the moment it’s manufactured to the
238
moment it’s time to trade it in and re-market it. Serving carrier, retail and enterprise customers as well as running programs for device brands directly, the SoftBank subsidiary processes over 80 million devices every single year. Now, to keep pace with today’s evolving market, Brightstar has embarked on a root-and-branch digital transformation, one which strives to standardise its solutions and deliver the same high-level service time and time again. Rising to the role of CIO of the company’s Asia-Pacific region, Mariela Millington has racked up an impressive 30 years of experience in the IT sector. During her past three years at Brightstar, Millington has seized the challenge and helped the company navigate OCTOBER 2018
A S I A - PA C I F I C
“We’re not just more effectively servicing our customers, we’re also delivering consistent services from one region to another” — Mariela Millington, CIO APAC, Brightstar
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A S I A - PA C I F I C
“ That means we’re looking at how we can enrich the experience not just for our own direct customers, but also for our customers’ customers” — Mariela Millington, CIO APAC, Brightstar
level of service will remain consistent. “Before, when we sold similar services in different regions, they weren’t exactly the same and the customer experience wasn’t consistent,” observes Millington. “Now we’re rearchitecting not just our technology landscape, but also how we sell and distribute products and that will really help us.” Serving industry giants, Brightstar’s client base makes for impressive reading. But on this journey, the company hasn’t forgotten the end customers who are impacted by its services. It is this unique perspective, says Millington, which has helped the company cut through the
its latest digital transformation. “One
noise when debating functionality and
of our biggest focuses is that we are
service features.
re-architecting our environment,” she
“Strategically we look at how our
explains. “Through this, we are moving
services will touch the end consumer,”
away from offering a bespoke country
she explains. “That means we’re looking
or even single customer solution to
at how we can enrich the experience
deliver a more unified platform that
not just for our own direct customers,
still manages to be customer-centric.”
but also for our customers’ customers.
Pivoting from a mainly distribution-
That’s really changed how we create
focused organisation to a wholly
solutions. It’s really a reinvention of
service-orientated one, Brightstar has
Brightstar, how we look at ourselves
undergone many seismic shifts since it
and the way we offer our services.”
was founded in 1997. This latest change
With five major lines of products and
will ensure that, regardless of where
services – supply chain and logistics;
the company’s products are bought, the
device protection; financial services; w w w.gi ga bi t ma ga z in e. com
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B R I G H T S TA R
buy-back and trading services; as well as core distribution of devices and accessories – underpinned by a domainspecific advanced analytics capability, Brightstar has a substantial roster to offer. As a result, the company can offer complimentary services regardless of what phase a device is at in its lifecycle. “For us, having complimentary services allows the customer to really leverage the investment they made in their fleet of devices. Being able to manage those devices from birth 242
to death is quite unique in that we can
“ For us,having complimentary services allows the customer to really leverage the investment they made in their fleet of devices” — Mariela Millington, CIO APAC, Brightstar
OCTOBER 2018
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£1.5bn Approximate revenue
1997
Year founded
5000
Approximate number of employees
deal with both new devices and old devices in a seamless way. That’s one of our key differentiators.” Along this journey, Brightstar has also reformulated the way consumers interact with the company, introducing a new business process management (BPM) layer that orchestrates the interaction between all relevant parties. Through this initiative, the company hopes to establish itself as a digitallysavvy partner for its customers, allowing them to define the user journey and leverage Brightstar to enrich the experience along the way. “We’ve increasingly found that our customers would like to control their user journey,” Millington explains. “Therefore, we’re architecting our solutions to be digital-friendly so that they will play comfortably inside our customer’s digital platforms. Our customers will be able to inject our services into their workflow elegantly and seamlessly. To enable this, we established a business process management layer for the orchestration of our services. This will provide us with the ability to really customise these workflows; it will allow us to create w w w.gi ga bi t ma ga z in e. com
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B R I G H T S TA R
244
OCTOBER 2018
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“ We now think about the user journey from a consumer experience perspective rather than from a Brightstar one; that’s really helped us to connect with more businesses who want to include us in their users’ journey and experience” — Mariela Millington, CIO APAC, Brightstar
different rules depending on the different customers and services in play, but it will still deliver a standardised back end. With our platform, we’re going from a very bespoke development approach to a large de-coupled architecture.” Millington also points out how the company has developed robust technology partnerships to evade any legacy issues. “To develop this digital backbone, we recognised that we needed external help to succeed in our latest digital challenge,” she notes. This helped Brightstar reimagine its services and enhance its plug-and-play service offering. It has also helped the company keep its ear
to the ground to find out about the sector’s latest emerging trends. “One of the very strong partnerships we have is with Software AG and certainly we are using their technology to push the w w w.gi ga bi t ma ga z in e. com
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B R I G H T S TA R
envelope there,” Millington adds. Echoing a belief shared by many
needed. This was very well communi-
CIOs, Millington reiterates that this
cated and re-enforced throughout the
mammoth transformation simply
build journey which helped to provide
wouldn’t have been possible if the
stability and consistency in decision
company hadn’t fostered the right
making amongst a changing landscape.”
culture. Research by Microsoft in 2017
Brightstar also made sure that, whilst the
notes that the biggest challenge
team acknowledged the value of past
organisations are facing in promoting
systems, they didn’t pull any punches
transformation is not necessarily the
when noting where it could improve.
new technology itself, but the cultural
246
to look like and why the change was
With its feet firmly in the carrier,
change required to enable it. But how
retailer and enterprise markets,
did Brightstar overcome this hurdle?
Brightstar is present in industries that
“It’s a day-to-day challenge that you
are ripe for change. The company is
need to tackle proactively,” observes
readying itself for the innovations of
Millington. “We had a very strong vision
the future and, as continuous improve-
of what the global architecture needed
ment seems to be a well-versed
E X E C U T I V E P R OF IL E
Mariela Millington CIO APAC Mariela Millington is Chief Information Officer (Asia Pacific) at Brightstar. Millington leads a team of 130 IT professionals based in Melbourne, Kuala Lumpur and throughout Asia. She is responsible for leading the architecture and deployment of supply chain platforms, applications, project portfolio management, and business development activity.
OCTOBER 2018
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247
mantra at the company, it seems
and positioned us strongly for the
Millington’s work is far from over.
future. We now think about the user
“Have we 100% completed this
journey from a consumer experience
transformation?” Millington asks. “No, I
perspective rather than from a
think it’s a continuous journey. I don’t
Brightstar one; that’s really helped us to
think the work should ever be over
connect with more businesses who
because as solutions evolve, we’ll have
want to include us in their users’ journey
to adapt and evolve too.”
and experience.”
“Our journey hasn’t finished, but I
PMS
think the future is exciting,” she continues. “The re-imagining of our services and technology footprint has made us much more competitive now w w w.gi ga bi t ma ga z in e. com
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Jabil pushing forward digital transformations
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JABIL
$19bn
Approximate revenue (2017)
1966
Year founded
180,000 250
Approximate number of employees
MANUFACTURING SERVICES LEADER JABIL IS ENABLING DIGITAL TRANSFORMATIONS, BOTH WITHIN ITS OWN ORGANISATION AND FOR ITS CUSTOMERS WORLDWIDE WRIT TEN BY
JA MES HENDERSON PRODUCED BY
CHARLOT TE CL ARK E
O
rganisations around the
world are embarking on company-wide transfor-
mations, embracing a future de-
fined by technology. But Jabil – a manufacturing services leader employing approximately 180,000 people – finds itself in the unique position of driving both its internal digital transformation, as well as leading transformative efforts on behalf of some of the biggest
OCTOBER 2018
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and best-known brands in the world. Jabil categorises the role it plays in
sively complex supply chains. We partner with these companies to streamline
its customers’ digital transformations
supply chain orchestration while helping
into three sections, says John Caltabi-
them reduce cost and risk.
ano, VP of Supply Chain Management.
“The second category of customers
“We’re a manufacturing services provider
are those going through a transforma-
so we support diverse customers across
tion due to market disruptions. They
a variety of markets with different digital
may be going through divestitures or
transformation needs. You can group
acquisitions. They also may be facing
these customers into three general
major changes in their industry sector,
categories. In one category are large
which requires them to reshape how
multinational organizations with mas-
they operate. These organizations look w w w. g i g a b i t m a g a z i n e . c o m
JABIL
to us for thought leadership, market benchmarking and product proof of concept support. It’s a very collaborative approach. “Then you have a third kind: customers that are really up-and-coming and don’t have to rectify historical issues. They can concentrate on what they’re good at and say to Jabil, ‘I want you to run my supply chain’. Their perception is that they’re not going to invest in those capabilities, when we can do it for them.” At the same time, Jabil is transforming how it runs its own supply chains, and is 252
implementing a digital initiative around the platforms it utilises to deliver its services, signalling a move towards cloud-based infrastructure. The size of the business – over 100 factories in 29 counties, hundreds of customers and a supply chain of 17,000 companies – means the transformation is one of real scale. New technologies have already transformed how Jabil operates from a procurement perspective, says Caltabiano. “The size of our company means we have hundreds of contract negotiations going on at any one time. It’s critically important for us to expedite report generation, quickly produce analytics, drive rapid negotiations and produce results that help our customOCTOBER 2018
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JABIL
“ I F YOU’RE BUILDING PRODUCT DESIGNED 15 YEARS AGO WITH SUPPLY CHAIN FIT THAT WAS IMPLEMENTED 15 YEARS AGO, IT’S HARD TO TRANSFORM YOURSELF” — John Caltabiano, VP of supply chain management
ers achieve better business outcomes. “With our digital platforms and tools, we now utilise, data and analytics are available in real time, so we can start negotiations at any time. We can deploy pricing as soon as negotiations are completed, which changes the whole dynamic of time-fenced events. We now can change the conversation with suppliers very quickly based on our analytics and actionable insights.”
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CLICK TO WATCH : ‘JABIL COMPANY OVERVIEW’ 255
Working with so many companies in
After all, if you’re building a product
locations across the globe gives Jabil a
designed 15 years ago with a supply
better perspective than most when
chain that was implemented 15 years
speaking about industry sectors keen
ago, it’s hard to transform how you
to embrace disruption and digitisation.
operate because of long-term invest-
It is Caltabiano’s belief that companies
ments and legacy operations.
in the markets that are being most
“To an extent, how prepared compa-
significantly disrupted – notably by IoT
nies are to embrace the change is partly
– are ‘moving the fastest’.
dictated by the dynamics of the industry
“I think the regulated businesses are the slowest,” he observes. “Regulated
they work in.” When it comes to Jabil’s own digital
products tend to have lengthy life
transformation, the company is on a fast
cycles, which makes it difficult to change
track, analysing how new technology
the way you run their supply chains.
can speed the myriad transactions that w w w. g i g a b i t m a g a z i n e . c o m
JABIL
“ WITH THE DIGITAL PLATFORMS AND THE DIGITAL TOOLS WE NOW UTILISE, DATA AND ANALYTICS ARE AVAILABLE REALTIME, SO WE CAN DO NEGOTIATIONS ANYTIME WE WANT” 256
— John Caltabiano, VP of supply chain management
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257
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JABIL
“ W E HAVE TO THINK DIFFERENTLY BECAUSE IT IS A NEW GENERATION OF PEOPLE WE’RE HIRING. YOU HAVE TO THINK ABOUT WHAT’S INTERESTING TO THEM” — John Caltabiano, VP of supply chain management
take place every day. “We have, in my division, 1,500 buyers, so I’m buying over 350,000 parts on a quarterly basis,” says Caltabiano. “That’s very transactional and repetitive and there is certainly the opportunity for part of that decision-making process to be accelerated and streamlined through digitisation, automation and analytics.” Jabil believes that by automating some of the more transactional responsibilities, the prospect of a career in manufacturing and supply chain operations will become even more attractive to emerging young talent.
258
EXECUTIVE PROFILE
John Caltabiano is Vice President , Global Supply Chain at Jabil and is responsible for all Materials and Customer Supply Chain Solutions for the company’s Engineered Solution Group Division. He is responsible for driving supply chain strategies for all of ESG’s Businesses. Prior to this role, John was Vice President of Global Sourcing where he was responsible for World Wide Commodity Management, Sourcing, Centralized Procurement and Supplier Development covering a spend of over $12 Billion. With more than 30 years of supply chain experience, John recently returned to St. Petersburg, Fla., following a three-year assignment in Singapore.
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SAUSPIPALY - PACCHIAF I N C
259
a s i a . b u s i n e s s c h i e f. c o m
JABIL
“People who come into the workforce don’t want to sit at a desk and place orders. A machine could do that. We have to think differently because it is a new generation of people we’re hiring. You have to think about what’s interesting to them. “We recruit new college grads out of supply chain curriculums, from some of the top schools, and they can bring a lot of talent to the manufacturing sector. What we can do is attract them with our digital tools. They want to dive into it and they’re exactly the kind of people we want because to take 260
this forward, you have to have practitioners. “We can’t go back to the old way, because they will come in and only think about the new way. A benefit of the transformation has to be bringing in the talent that knows how to use these tools and think differently about their work.”
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SCT LOGISTICS:
Transparency and a commitment to service through digitisation WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
ANDY TURNER
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SCT GROUP
SCT GROUP’S CIO SEAN ATCHINSON DISCUSSES HOW THE COMPANY’S JOURNEY TO DIGITISATION IS MAKING IT EASIER TO CARRY CARGO THROUGHOUT AUSTRALIA
W
ith 3,934km between Perth
joined by Sean Atchinson, a CIO
and Sydney, transporting
determined to bring technology to the
cargo across Australia is
fore and make digitisation instrumental
no mean feat. Since 1974, SCT Group has been providing an alternative logistics
solution where options were previously 264
in fulfilling SCT’s aim to provide open, transparent and efficient service across Australia. “Our growth has been achieved
few, and has grown to be the most
through a very focused approach to
efficient independent freight service
the business. In addition, more recently
in the country. Providing rail and road
there are only two major players in the
services hauling dry freight, refriger-
rail freight space: Pacific National and
ated and bulk cargo, the business
SCT,” Atchinson explains, praising
prides itself on openness and transpar-
Smith’s initial foresight in challenging
ency. It is also a company that, despite
the status quo of the nationalised rail
its substantial size and reach, cares
industry. SCT now provides logistics
about every single customer from the
services across the country and has
smallest business on its books to
a number of inland ports serviced next
world-renowned retailers like Aldi and
to mainline freight railways. In the past
Woolworths.
two years, SCT has opened two new
Founded by Peter Smith, SCT is still very much a family affair, with Peter’s sons Geoff and Glenn on the board of
inland ports: at Bromelton, Queensland and Wodonga, Victoria. “We are predominately one of the
directors and the founder himself
largest freight movers East-West, from
maintaining a keen eye on operations
Sydney all the way to Perth, transport-
as chairman. In 2015, the Smiths were
ing freight that contains white goods,
OCTOBER 2018
A S I A - PA C I F I C
“That journey of transformation through a technology platform is now starting to pay dividends to the business, and year on year I’m successfully taking costs out of the IT business” — Sean Atchinson, SCT CIO
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265
SCT GROUP
266
“ I work with all staff – if we’re rolling out a new technology, we’re on the warehouse floor with them.We understand what they’re doing, how they’re using it and what they need to use it for” — Sean Atchinson, SCT CIO
OCTOBER 2018
A S I A - PA C I F I C
as well as foodstuffs from dry all the way down to -24 degrees.” SCT moves all this and more across the length and breadth of Australia with a commitment to making logistics faster, easier and more efficient. From previously having a focus on road line haul that required two drivers to move it across the country, the business can now move a 1.8km train hauling 5,500 tonnes of freight across Australia in three days, all in one journey. In addition, the 300m-long Bromelton warehouse allows a train to run straight through it with no shunting required, so containers can be removed and wagons unloaded as smoothly as possible. “In the three-and-a-half years I’ve been with the company, there’s been so much growth,” Atchinson reflects. However, it hasn’t all been smooth sailing. Atchinson joined the company six months after it had gone live with its new SAP environment – a vital digital solution for many businesses, but one which SCT needed the CIO’s help to implement properly. “They were actually talking about getting rid of it: they’d had a very tough go-live and were relying on consultants to support the business for a number of months post go-live. There were major issues throughout the systemic processing of customers’ orders to invoicing.” Despite these teething issues, Atchinson w w w.gi ga bi t ma ga z in e. com
267
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A S I A - PA C I F I C
CLICK TO WATCH: SCT BROMELTON LAUNCH VIDEO 269 had worked with SAP solutions through-
business, and year-on-year, I’m
out his career and wasn’t willing to give
successfully taking costs out of the IT
up on the world-renowned ERP
business.” Far from cutting corners or
platform just yet. “The transformation
laying off staff, these savings have
could have gone belly up, but working
been made simply by changing the
with some key support organisations,
way SCT operates.
as well as staff and executives right
“We’ve in-sourced our support rather
up to Peter Smith, we’ve kept SAP and
that outsourcing,” Atchinson explains.
turned the whole environment around.”
“We’ve also renegotiated with core
Fast forward to today, and proper,
partners and gone into new commer-
collaborative development of the
cial contracts which have allowed us to
platform is actually saving the firm
save money by utilising the technology
money. “That journey of transforma-
better than we previously have. For a
tion through a technology platform is
CIO, it’s a rare opportunity to come in
now starting to pay dividends to the
where something’s failing and be able w w w.gi ga bi t ma ga z in e. com
SCT GROUP
to turn it around.” Through Atchinson’s work and senior leadership support, technology has been successfully brought to the fore of SCT and
1974 Year founded
is embraced as a driver – almost literally – of the logistics giant’s growth. “We’ve recently introduced new technology in all of our trucks which allows us to do electronic work diaries for our drivers and fatigue management. Drivers can now control their breaks without having to go through the paperwork.” In addition, technology is used to allow trucks and deliveries to be tracked more effectively and SCT is looking to move electronic 270
delivery and pickup management onto a new platform which will integrate better into cabs and carry all the information necessary for a fleet, using a single SIM card per vehicle. “The ability to have a single SIM that controls the phone, telematics and tablets in our trucks will have paid for itself within three years just through telco savings,” Atchinson enthuses. As well as making life easier for staff, a customer reporting platform has been introduced to bolster SCT’s commitment to service. “We’ve rolled out a customer reporting portal which allows our customers to track all the movements of their freight. We notify them when we’re going to pick up and they can see it online in a report to the time that it has been delivered, as well as being provided OCTOBER 2018
1,000+ Approximate number of employees
A S I A - PA C I F I C
with proof of delivery.” Atchinson
transparency of data,” says Atchinson.
explains that all this is done in almost
“It’s there at their fingertips, allowing our
real time – or around four seconds
account executives and customers to
behind our core platform.
talk in exactly the same language.
Now, looking to trade electronically with national customers in the B2B space, SCT is also developing a B2B
We’re looking at exactly the same pieces of information.” A common worry related to automa-
template based on GS1 – the global
tion is that the human touch will be lost
developer of business standards for
but Atchinson is keen to point out that
communication such as barcoding.
this won’t be the case for SCT. “We
“We’ve worked very closely with GS1
haven’t removed the account execs.
and also our members within that
The customer can do self-service and
environment.”
still have face-to-face contact. SCT
One of the most important things to
prides itself on this. This relationship is
ask of any digital transformation is what
absolutely key for Peter – that’s how he
it will mean for the customers involved.
built the business and that mentality
“It’s tracking; it’s all of their history; it’s
still exists today. We still have that very w w w.gi ga bi t ma ga z in e. com
271
SCT GROUP
272
personal approach, but technology
they’re doing, how they’re using it and
is an enabler to allow transparency
what they need to use it for. Feedback
between customers, account execs
from those at the forefront of what has
and account managers.”
been rolled out is critical to any
In terms of finding the right digital solution to help SCT grow, transparency with both staff and vendors is key.
success that a technology platform provides to the business.” In the coming years, growth at SCT
“We run roundtables regularly,” says
is set to take many forms across its
Atchinson. “It’s very consultative. I work
divisions from property and rail to solution
with all staff – if we’re rolling out a new
enablement. “We’re looking to remove
technology, we’re on the warehouse
a lot of the manual steps and provide
floor with them. We understand what
technology that supports growth and
OCTOBER 2018
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“We still have that very personal approach, but technology is an enabler to allow transparency between customers, account execs and account managers” — Sean Atchinson, SCT CIO
273
supports a mission with our customers
ache) to an integral driver of growth
to provide further transparency on their
and service excellence for the company.
end-to-end moving of freight. My focuses
“Now, if I speak to the board it’s about
right now are expanding IoT across our
what we’re going to do next. It’s about
transportation methods – movement into
looking forward,” he concludes. We
cloud is key. As we grow, our technology
want to build on what we’ve got. We’ve
platform will allow us to upscale, pretty
got sustainability, we’ve got perfor-
seamlessly, our hardware.”
mance, we are enabling our business.
It’s clear that even throughout
“The conversation has completely
Atchinson’s own journey at SCT Group,
changed. It’s not about ‘time to throw
technology has gone from being an
it out’, it’s about ‘we want to do this
add-on (and indeed at times a head-
with our business’.” w ww w.gi w w.busi ga bi t ne massc ga zhief. in e. com
274
BAI Communications
on
OCTOBER 2018
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275
the move WRIT TEN BY
JOHN Oâ&#x20AC;&#x2122;HANLON PRODUCED BY
ANDY TURNER
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B A I C O M M U N I C AT I O N S
Communications infrastructure specialist BAI Communications is moving fast into new markets: to do this it needed to realign the perception of IT in the business and move its technology to the cloud
P 276
eople of all generations now
a train is a frustration that BAI Commu-
accept that their mobile
nications is making a thing of the past.
phone is the technology hub
BAI Communications operates
that enables every aspect of life. Work,
in Australia (Broadcast Australia),
entertainment, social interaction,
Hong Kong, Canada, the UK and in
information, shopping, finances, learn-
New York with majority-owned BAI
ing: the device in our pocket gives us
Communications company Transit
access to all of it – just so long as we
Wireless. The company designs,
eople of all generations now accept that
builds and operates communications
their mobile phone is the technology
infrastructure – cellular, Wi-Fi,
hub that enables every aspect of life.
broadcast, radio and IP networks. In
Work, entertainment, social interaction,
Australia through Broadcast Australia,
information, shopping, finances,
it owns and operates one of the
learning: the device in our pocket gives
most extensive transmission networks
us access to all of it – just so long as
in the world, delivering 59 million
we can connect.
broadcasting hours to 99%
Mobile devices are now used
of the population. In times of crisis,
predominantly for data. So, exceptional
national broadcasters rely on them
cellular coverage and Wi-Fi is very
to maintain the connection with
important. People expect this data
Australians – flood, fire, cyclone or
connectivity, whether for texting,
other natural disaster – and emergen-
browsing or streaming. Having the
cy services rely on BAI to help keep
signal drop, or no signal at all, on
them informed.
OCTOBER 2018
A S I A - PA C I F I C
Peter Turnbull, CIO BAI Communications 277
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B A I C O M M U N I C AT I O N S
In New York and Toronto, BAI enables more than 7 million* daily subway commuters to shop, share, stream, earn and learn through its cellular and Wi-Fi networks and in Hong Kong, commuters on the MTR collaborate, create and stay connected thanks to their trusted expertise in designing and delivering high-quality networks in confined and complex transport systems. In the UK, with its global network of experts paired with local in-depth knowledge, it is working with industry leaders
“ Switching the mindset and moving the conversation from ‘IT and the business’ to ‘IT is part of the business’ that continues to enable but also contributes to the business strategy, has been fundamental” — Peter Turnbull, CIO, BAI Communications
to explore the role of technology in
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A S I A - PA C I F I C
CLICK TO WATCH : ‘ABOUT BAI COMMUNICATIONS’ 279 the transport system of the future. Peter Turnbull joined BAI in 2015 as
as it was challenging – establish a technology platform to modernise
its CIO. He brought with him many years’
the core IT capabilities of a mature
experience in the banking and financial
business (Broadcast Australia),
services sector, but as he says: “Core
enable the wider BAI Communications
technology is ubiquitous, you really
Group to enter into new regions and
challenge yourself to understand how
build a foundation to connect our
the business capabilities interact and
established international subsidiar-
learn the language of the domain.”
ies.” These three goals presented
While broadcasting is a key service of
a challenge he found irresistible.
BAI in Australia through the Broadcast
Though the technology infrastructure
Australia business, the company had
was largely on-premise and imperfectly
already started its expansion into
connected across the group, he
transit communications in other markets.
quickly realised his biggest challenge
“The brief I was given was as unique
was cultural. Like many traditional IT w w w.gi ga bi t ma ga z in e. com
B A I C O M M U N I C AT I O N S
E X E C U T I V E P R OF IL E
Peter Turnbull Peter Turnbull is Chief Information Officer at BAI Communications An energetic business and technology executive with solid commercial experience in people and team leadership, service and program delivery, software development, business integration, IT governance and vendor management.
280
Over the past 20 years Peter has held multiple operational and leadership roles predominately in software development, wealth management, product development, professional services and assetbased leasing. Peter has successful transformed technology environments for financial services firms, decoupled technology environments from U.S parents and introduced Greenfield ICT capabilities and innovations as a vendor and as an IT Leader. Peter has a genuine understanding of how people, processes, data and technology blend together to deliver measurable business outcomes. Key Specialities: Merger and acquisition, people leadership, technical, application and data architectures, decoupling and integration of ICT environments, program delivery, vendor management and operational service delivery.
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281
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B A I C O M M U N I C AT I O N S
organisations, IT operated as a service provider with a contract to ‘the business’. Switching this mindset and moving the conversation from ‘IT and the business’ to ‘IT is part of the business’ that continues to enable but also contributes to the business strategy, has been fundamental. This mindset shift is a two-way street, “as technologists we need to accept
“ As technologists we need to accept that IT no longer controls all things technology, this takes some getting used to” — Peter Turnbull, CIO, BAI Communications
that IT no longer controls all things technology, this takes some getting used to; the convergence of operational technology (OT) and IT along with ‘Edge 282
IT’ (his preferred name over shadow IT) has meant we are now a key partner helping to build new capabilities. We are domain experts in enterprise technology, our role is to establish a solid
Turnbull calls ‘enterprise plumbing’.
foundation and ensure the enterprise
“We will never be fast enough to take the
plumbing works and then partner, guide
business forward unless we have a solid
and enable our peers and their people
and adaptable set of infrastructure
on their own technology journey.”
capabilities and services to work with.” The original infrastructure he found
PILLARS OF TRANSFORMATION
was a traditional, on-premise infrastruc-
The digital transformation started in
ture, that was out of support, challeng-
2016. In describing the transformation
ing to manage and “not capable of
for BAI it is helpful to look at the four
meeting our requirements to modernise
pillars on which it depends. The first of
the Broadcast Australia business let
these was to provide a firm foundation
alone connect our international ones”.
and transform the infrastructure that OCTOBER 2018
“We needed an infrastructure capable
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283
of bringing together IaaS, PaaS, SaaS
in his quest to move the infrastructure
and on-premise solutions. We needed
to a service model, located in the Cloud.
a fast network at each regional office,
â&#x20AC;&#x153;We have built a virtual data centre
as the existing links would not support
capability in Azure and challenged
our cloud-first aspirations. We needed
ourselves to have 80% of our workload
a set of core technology services
running in the cloud by 2020. We moved
including identity management, to run
our provisioning process to Azure
and support this infrastructure and
Resource Manager (enabling infrastruc-
most importantly, we need an infra-
ture-as-code) and rebuilt our identity
structure that could support future
and access management capability
convergence of OT and IT.â&#x20AC;?
using Azure Active Directory (AAD).
After careful consideration Turnbull
This was a game changer because it
decided a Microsoft stack was optimal
provided a way to bring together our w w w.gi ga bi t ma ga z in e. com
B A I C O M M U N I C AT I O N S
subsidiaries, manage access to cloud
to enable ‘boundless collaboration’ no
services with single sign-on and
matter what time-zone people were in
quickly deploy user and device
or device they were using and how to
services like multi factor authentica-
provide a consistent and integrated
tion (MFA) and conditional access
experience for everybody. To achieve
which have traditionally been complex
this, Turnbull deployed Office 365,
or expensive to deploy and maintain.”
starting with Yammer.He progressively introduced core services including
284
A NEW WORK ENVIRONMENT
Exchange Online, Skype for Business,
The second pillar, which ran in parallel
OneDrive and Microsoft Teams
with the infrastructure overhaul, was
across Australia and the UK with plans
building a modern workplace, which
to integrate the other international
wasn’t just a hardware and Windows
subsidiaries over the next 12 months.
refresh, but a full rethink on how to
“Yammer was the first Office 365
securely access, surface and share
service we deployed in Australia,” he
information across subsidiaries, how
says. “It is a great tool for building
“ We have built a virtual data centre capability in Azure, and challenged ourselves to have 80% of our workload running in the cloud by 2020” — Peter Turnbull, CIO, BAI Communications
OCTOBER 2018
A S I A - PA C I F I C
open, cross-functional communities
“Not only was it a big cost saving;
which have become key in transform-
suddenly you could effortlessly
ing the way we share information.” As
connect our international businesses
an example, operational questions or
into a meeting with video, voice, screen
issues with operational equipment are
sharing and instant messaging. I can
being shared over Yammer, drawing
walk into a meeting room and click
in responses from engineers across
one button to join a meeting instead of
Australia who may have encountered
having to find a dial-in number, type in
the same problem or had previous
the conference code and remember
experience with the equipment.
a PIN. Best of all when we move into
There are other game changers in
new countries we don’t have to set up
the stack. “Skype for Business has
PBX infrastructure, we just provision
replaced over 15 PBX solutions and
phone numbers and conferencing
introduced new ways to communicate,
services through a single portal.”
some expected and some unexpected,” says Turnbull.
They have deployed several Surface Hub devices, which have really
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B A I C O M M U N I C AT I O N S
286
changed the way meetings are conduct-
(even remotely) when you’re able to
ed, he adds. “With integrated Skype,
collaborate like this.”
a digital whiteboard and wireless
Recognising that BYOD can be
projection to the screen, I walk into
complicated, Turnbull introduced
a meeting and we don’t have to sit
a CYOD (choose your own device)
down anymore.
workstation approach running
“We are standing up, collaborating on
Windows 10. Faced with the need to
a digital whiteboard and effortlessly
replace older hardware, staff were
bringing people together (inside and
given a range of workstation options.
outside the organisation), through
This combined elements of choice and
technologies such as Skype/, Teams,
interoperability. These new implemen-
document co-authoring and digital
tations and policies came of course
whiteboards accessible on any device”.
with the challenge of change manage-
It’s a much more engaging experience
ment. One of the most effective ways
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CLICK TO WATCH : ‘WORKING IN EXTREME WEATHER CONDITIONS – BROADCAST AUSTRALIA’ 287
of helping people, he says, was to set
tion of mobile device management)
up communities on Yammer – the most
in any location.
popular of these was the ‘modern
He’s also really pleased with the
workstation’ group where people could
introduction of the latest service for cor-
pose any questions they had. This
porate video sharing, Microsoft Stream.
group quickly evolved into a self-ser-
Distributing information via a blog has
vice platform for change management
been augmented by fortnightly videos
as, rather than having to wait for an
and interviews with specialists in the IT
answer from the service desk, their
team to explain current projects.
queries could be directed collabora-
“All this is accessible on their mobile
tively to other sources and resources
devices, their workstation or their home
within the business. It’s a dynamic
PC. Now we are combining video
repository of knowledge accessible
distribution with blog posts and posts
from any device (through the introduc-
in Yammer. Communication needs to w w w.gi ga bi t ma ga z in e. com
B A I C O M M U N I C AT I O N S
come through diverse channels,
One of the first solutions introduced
recognising that people consume
was a data warehouse hosted in Azure.
information in different ways.”
The solution, implemented by Altis,
The Office 365 suite has enabled
provided a way to integrate data from
our modern world at BAI: “Being cloud-
systems of record, as well as data from
based makes it much easier for us
other internal and external API’s using
to enter new geographical markets.”
the Azure Data Factory. “We now bring together large volumes
288
DATA AND INFORMATION MANAGEMENT
of data, from multiple sources, and
The third pillar of transformation is
consume or use in their technology
focused on information management
solutions and business processes.
and Peter Turnbull is sponsoring
When we need additional internal or
this initiative across the Broadcast
external data, we use established
Australia and UK businesses.
pipelines to quickly make this data
“Many of the challenges we (and other organisations) face stem from a data or
make them available to our teams to
available,” says Turnbull. Altis also helped with the implemen-
an information issue, be it poor quality
tation of a new reporting and analytics
or unknown data or poor practices for
platform using PowerBI. The combina-
governing, exchanging and consuming
tion of the new data warehouse and
information.” This pillar, which is still
PowerBI provided a modern solution
a work in progress, “is the fabric that
to report upon (and share with
joins together our business capabilities
customers through the PowerBI portal)
as it provides a way to build a common
the performance of Digital Television
language we all speak,” says Turnbull.
(DTV) services at all Broadcast
“We have focused our strategy around
Australia tower sites.
the management, integration and availability of structured, unstructured
A CULTURE OF CHANGE
and spatial data (location-based data
The fourth pillar which has been enabled
for the design and run of our sites which
by the first three, is the progressive
includes drawings, maps and photos).”
transformation of business capabilities.
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“ Now we are combining video distribution with blog posts and posts in Yammer. Communication needs to come through diverse channels, recognising that people consume information in different ways”
289
— Peter Turnbull, CIO, BAI Communications
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B A I C O M M U N I C AT I O N S
Unlike the infrastructure and modern workplace transformation, the transformation of business capabilities is a true cross-functional collaboration. Over the last 3 years, Turnbull has managed the introduction of a group-wide human capital management system (HCM), a health, safety and environment (HSE) system and upgraded the existing asset management solution. “The introduction of the HSE solution has provided an easier way to capture incidents or near misses which help us improve our HSE capability. Incidents 290
and near misses can be reported straight away by jumping onto your mobile device and registering what has occurred. This provides quicker visibility allowing for fast actions and decisions to be made.” With the technology foundations now in
“ We are standing up, collaborating on a digital whiteboard and effortlessly bringing people together (inside and outside the organisation). It’s a much more engaging experience (even remotely) when you’re able to collaborate like this”
place, Turnbull in collaboration with the leadership team, are building a roadmap
— Peter Turnbull, CIO, BAI Communications
to transform key business capabilities including service management, site access and portfolio and project management. There’s always a fifth pillar to IT transformation, and that’s security. BAI, like many companies, use a defence-in-depth approach to security across its administrative, technical and physical environments. In the first half of 2018 the company achieved ISO27001 OCTOBER 2018
A S I A - PA C I F I C
certification: â&#x20AC;&#x153;The certification provides the certificate, however the cultural change and shift in mindset we achieved by going through this process has provided a foundation for the other pillars we have introduced. We have MFA across all our user accounts; encryption and mobile device management on our workstations and devices, we have a SIEM and security solutions monitoring our environment, However, risk-awareness and personal accountability for security on the part of everyone in the business is as important as the barriers we buildâ&#x20AC;?. In closing, Peter Turnbull reflects â&#x20AC;&#x153;As technologists we need to be able to accept that IT is no longer the only source of technical innovation in the business. We are finding that more and more people have IT skills and unique experiences with technology transformation when they come into the organisation. Our role is to enable them to use their skills and experiences in new and innovative ways to help drive our digital transformation.
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Simpler Banking:
insights into ABKâ&#x20AC;&#x2122;s digital transformation WRIT TEN BY
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A L A H L I BA N K O F K U WA I T
We talk to Al Ahli Bank of Kuwait’s CTO Salem Hussein and CIO Sridhar Kasisomayajula regarding the massive digital transformation at ABK that is revolutionising banking across the region… n May this year, the Al Ahli Bank of Kuwait (ABK) launched its innovative ‘Global View’ offering, allowing customers to manage multiple ABK accounts from across the Middle East through a single log-in point; the first such offering by any bank in Kuwait and in line with ABK’s ‘Simpler Banking Strategy’. Aligned with its vision of ‘reimagining a simpler bank’, ABK has successfully leveraged the opportunity to revamp its overall technology architecture, including the Core Banking platform, migrating well over 79 different applications into Infosys’ software product, Finacle, and
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KDNet35.7mn profit 2017 1967
Year founded
72
Number of branches
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DRIVING DISRUPTION WITH EVOLVUS Evolvus Solutions delivers future ready data engineering and payment modernization solutions for the banking and fintech space. Leverage our deep domain expertise to remain ahead of business challenges, regulation changes and technology disruptions.
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leading to a unified enterprise architecture within a 22-month timeframe across two countries and 33 branches. The digital transformation overseen by ABK’s Somnath Menon (Group COO), CTO Salem Husain Al Sarraf and Amro Bibi (Head Enterprise Management Office) focused on allowing the bank to grow beyond the restrictions of its legacy system. We spoke to Al Sarraf, along with CIO Sridhar Kasisomayajula regarding the bank’s massive transformation. “The legacy system was hindering our flexibility and growth was being OCTOBER 2018
stifled as a result,” Kasisomayajula explains. “Our existing legacy system was unable to support any further expansions. Too many applications were taking far too long to get to market. The legacy system simply wasn’t nimble enough. We needed easier integration and had to simplify our architecture to make it easier for products to be launched into the market.” Rather than stay with existing architectural vendors and upgrade to the latest iteration, the bank decided, based on a diligent analysis and inter-
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CLICK TO WATCH : ‘ABK BEST RETAIL BANK OF THE YEAR FOR THE 3RD YEAR CONSECUTIVE YEAR FROM THE EUROPEAN’
nal review, to opt for an integrated solution that helped consolidate multiple applications into one platform. After a detailed evaluation of three leading industry players, ABK chose to partner with Infosys and implement the full suite of its Finacle Core Banking platform. This transformation was not restricted to the Core Banking system alone – it also included building the infrastructure for the future with a new Middleware from IBM (IIB) and also the Finacle Operational Data Store (FODS) from Infosys for the purposes of data analysis
and reporting. ABK went through a rigorous search for prospective partners to help deliver this massive project. “The usual suspects were considered,” Kasisomayajula explains. “We did the request for proposal (RFP) processes and saw roughly 10 partners in Core Banking. We had consultants involved until we reached that final choice.” Al Sarraf interjects: “We used good governance here and did our homework in selecting the partners. It was a very careful selection process.” 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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A lasting relationship
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ABK has a deep and meaningful relationship with its many partners. “We have a mutual dependence on them,” Kasisomayajula explains. “Once you implement Core, for the next five years it is like a marriage. It’s not just a hit and run with partners. Nobody can do business here unless they are represented by a local partner.” The most critical – and also the biggest – contributor to the successful program was an active governance forum with strong senior management involvement and active participation from the leadership across all the engaged partners – Infosys, GBM, Cedar, Oracle/ITS, Valuelabs and Quality Kiosk. This also ensured a fair representation across all players, which was the bedrock of the program. Weekly review meetings also meant timely escalation of issues and effective resolution. “Infosys worked on our Core and Evolvus worked with us on our data migration and warehousing within Core,” says Kasisomayajula. “Then we have IBM and the other hardware guys, so there are lots of partners who continue to work with us in Core banking. Mysys was chosen because of our experience with the existing Core and the functionality equipment.” The first challenge was the migration of OCTOBER 2018
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“ We had about 140odd applications prior to Core, but we reduced that to around 90” — Sridhar Kasisomayajula, CIO, Al Ahli Bank of Kuwait 299
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vast amounts of data from the legacy platform to the new one. “It was a real challenge,” says Al Sarraf. “However, it was carried out very nicely. There was zero wipe up and 100% of our balance made the migration.” The program was put through a fairly intense regime: 23 rounds of data migration; 15 rounds of testing; nine rounds of training; and readiness evaluation. The planning paid off, as the final migration was carried out with a 100% reconciled migration of customer and financial data, and a full compliance to the defined exit criteria on testing. The Core Banking implementation was first trialed by ABK in the UAE, prior to the official rollout in Kuwait. “Lots of banks tried Core here, but all of them have failed with regard to finishing on time or budget, or have abandoned it halfway through, or never even kicked it off,” Kasisomayajula explains. Next was the rationalisation of the exist-
“ We managed to do it ahead of time. It all went well to be honest, and there was no shutdown of services. Not one day down. All of our channels were 24/7 come the day of migration” — Salem Hussain Al Sarraf, CIO, Al Ahli Bank of Kuwait
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ing technology architecture to make it much more reliable and dependable. Now products could get to market faster and were easier to manage as ABK moved from multiple legacy systems into a single platform. “We had about 140odd applications prior to Core, but we reduced that to around 90,” says Kasisomayajula. “We had to introduce new middleware too, in the form of new data warehousing. Our legacy system was always fully depreciated and costly, unlike its replacement. Security infrastructure was also tightened.” 302
A business transformed ABK was more than happy with the outcome, which was delivered on time, under budget and with no hiccups. “We managed to do it ahead of time,” Al Sarraf laughs. “It all went well to be honest, and there was no shutdown of services. Not one day down. All of our channels were 24/7 come the day of migration. They were off and running.” The positive impact that the technology transformation has had on ABK’s customer base is palpable. The active subscriber count of the internet banking platform doubled within six months of the launch. A few immediate benefits that customers got to experience, post-rollout, OCTOBER 2018
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“ We used good governance here and did our homework in selecting the partners. It was a very careful selection process” — Salem Hussain Al Sarraf, CIO, Al Ahli Bank of Kuwait
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included faster, easier account opening process; single registration process across channels; cardless cash withdrawals; instant pay P2P services; integration with civil ID readers; cash management; payroll uploads; liquidity management; and trade finance, directly on the corporate internet banking platform. The successful execution has not only been appreciated by ABK’s management and customers alike, but was also duly recognised by the Asian Banker as being the best Core Banking transformation of the year.
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CUTTING-EDGE WAREHOUSE MANAGEMENT AT BALSHARAF GROUP WRIT TEN BY
L AUR A MULL AN PRODUCED BY
CR AIG DANIEL S
OCTOBER 2018
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BALSHARAF GROUP
Embarking on its latest wave of digital transformation, Chief Information Officer, Sajid Riaz, describes how a new extended warehouse management solution is aiding efficiency and growth for Balsharaf Group’s logistics business
T
oday, the consumer goods industry faces some pressing questions: how to keep track of inventory, how to make warehouse operations
more accurate and cost effective, how to cut down losses due to product expiries, and how to be more efficient with customer deliveries. Warehouse management has proven 306
to be a challenge for many businesses, but Saudi firm Balsharaf Group believes it has found the answer with SAP’s cutting-edge extended warehouse management (EWM) platform for its logistics company, Salasel Al Emdad. Technological innovation is at the crux of Balsharaf’s strategic vision and this has particularly helped the logistics arm. Chief Information Officer (CIO), Sajid Riaz, sheds light on how, as the cost of workers rises, the group has zeroed in on new technologies to understand and measure employee productivity at new depths. “Today, Saudi Arabia’s logistics sector heavily depends on expat workers,” he explains. “As they become more expensive to hire, there is a growing need to reduce costs and become more optimised, but how do you do it? It’s not an easy task to become more efficient and productive. You need a technical solution to help you optimise and automate so that you can cut down on manual work and OCTOBER 2018
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Congratulations Salasel Emdad on your successful go-live!
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Thank you for choosing us as your implementation partner. We are proud to have supported you on your SAP EWM journey. For further information on our services please contact: Westernacher Consulting ME FZ-LLC Rohith Dâ&#x20AC;&#x2122;Souza Building 12, 1st Floor, Dubai Internet City, Dubai, UAE Phone: +971 4 313 2980 www.westernacher-consulting.com
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wasted efforts; you need technical help
the firm to prepare for incoming and
to devise standards for each role, based
outgoing shipments effectively. “With
on past performance data and solutions
EWM, you can design and understand
to measure if employees are delivering
your warehouses with a lot more
as per the standard – and that’s where
accuracy,” Riaz explains. “For example,
EWM has come into the picture.”
you can note exactly how many cartons
In 2012, the company implemented
a forklift operator transports in a period
SAP’s enterprise resource planning
of time.” With this insight, Balsharaf
(ERP) tool to automate all the functions
Group can not only calculate the cost
of core businesses within the group
of storage, but it can also gauge the
but Riaz contends that this latest
manpower required to transport
addition of technology is “taking the
a shipment. This means that if it needs
company’s logistics operations to the
to pick up 90,000 cartons in a day it will
next level”. Processing the movement
know how many forklift operators are
of stock, EWM handles all the internal
needed for the job.
processes of a warehouse, allowing
“It’s a much more scientific approach
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BALSHARAF GROUP
to warehouse management,” Riaz adds. “It’s not relying on a gut feeling. You can plan and predict what’s going to happen in a week or a month’s time. It allows you to effectively see what kind of warehouse space you will have in the future, and what kind of staff will be needed on a certain date based on the extent of work you will have to complete at that time. All this is possible because the system operates on delivery dates for all outbound and inbound transactions that are entered for present and future tasks.” The solution significantly helps to plan shipments and at the same time, it also 310
ensures the movement of products based on ‘first expiry first out’ (FEFO), a logistics method whereby products which expire sooner are shipped first for consumption. A key player in the food and beverage space, Balsharaf Group is aware that food waste is a growing problem in the MENA region. In Saudi Arabia alone, the estimated economic impact of food waste is $13.3bn per year, according to Arabian Business. Riaz believes solutions such as EWM could go some way in tackling the issue. “Almost all of our third-party logistics (3PL) customers are in the FMCG (fast-moving consumer goods) business,” Riaz notes. “One of the biggest issues they face is the need to constantly move items based on OCTOBER 2018
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“It’s a much more scientific approach to warehouse management. It’s not relying on a gut feeling” — Sajid Riaz, Chief Information Officer
what’s expiring first.” This may seem simple in practice, but when faced with a largescale warehouse, it can be difficult to detect where a particular batch of items is located. EWM is beneficial as it can tell users exactly how to arrange the warehouse for storing items based on product expiry and where to pick the products based on FEFO. This cuts down on lost revenues due to expired products. “For many of our 3PL customers, if we combine the losses incurred every year because of expired items, we’re talking about 4-5mn SAR,” Riaz adds. “EWM can drastically cut these losses which gives us a competitive advantage as a 3PL service provider.” 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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E X E C U T I V E P R OF IL E
Sajid Riaz is a seasoned Management professional with over 20 years of extensive international experience in developing and implementing ROI-sensitive IT solutions to improve efficiency of business operations in FMCG, retail, manufacturing, logistics, and real estate industries. Sajid holds an MBA in IT and is a certified project management professional (PMP). He has delivered multiple success stories in various countries in the Far East and Middle East. Prior to joining Balsharaf Group, he worked for Tatweer (Dubai Holdings) where he delivered solutions for companies like Dubai Industrial City and Global Village, and he also worked at Switz where he was a GM for IT and Projects, managing operations in seven countries.
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Processing more than 1,000 customer deliveries a day across the Kingdom for all 3PL customers of Salasel Al Emdad, Riaz argues that the solution should ensure customers’ deliveries are accurate in terms of quantity and remaining shelf life, and should happen as per SLA’s agreement with the client. “With EWM, since the products have been meticulously labelled for storage, you know how much stock you have, where it is kept and when it is expiring,” he says. “The accuracy of the EWM system is very high and I think this brings in a competitive advantage to you as a 3PL service provider. It certifies you’re selecting the right quantity of products with the right expiry date and that they’re delivered on time with the planning offered by EWM.” EWM has enabled a whole new level of efficiency for Balsharaf, yet this transformation didn’t come easily. One of the biggest challenges the firm faced during the process was 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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finding the right implementation
“Westernacher has been very patient
partner. There may be many players
with us. They understand what we’re
for SAP ERP implementation in the
trying to achieve as a business and in
region but expertise in solutions like
each and every step they have gone
SAP EWM is rare. “You need to make
the extra mile to support us.”
sure that you are working with the right
This technology wasn’t implemented
implementation partner,” observes Riaz.
effortlessly, says Riaz. Instead, the firm
After thorough research and numerous
worked carefully to guarantee that the
meetings, the company chose the
system was rolled out perfectly the
German firm Westernacher, which
first time around, with the intended
has over 40 years of experience in
benefits, to ensure that their 3PL
implementing warehouse manage-
customers didn’t lose trust in the new
ment systems. “The best thing that Westernacher 314
did for us is what they call a ‘Warehouse Health Check’ whereby they spent four to five days with us even before we signed a deal for the implementation. They offer an industry expert who visits your warehouse, studies the warehouse’s processes and design, and tells you what problems you currently have. They also tell you how EWM solutions will address these issues. “This is a very smart move on their part because it allows you to assess their expertise and professionalism before the start of the project. It helps you to develop trust with your future implementation partner,” he adds. OCTOBER 2018
Ashraf Abdelghaffar, GM Salasil Emdad
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96,500sq.m amount of storage in 15 cities
1955
year founded
20mn+ number of cartons
handled annually for customers 315 system. This ensured that there wouldn’t be any service disruption to the ongoing business while implementing EWM or going live. “We might not have taken the easy and quick way but we’ve taken a more accurate way,” he says. “We have checked every single item for an expiry date, put a label on it, put that item in a particular location, and recorded this. This has confirmed that every item is in 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 accuracy of the EWM system is very high and I think this brings in competitive advantage to you as a 3PL service provider. It certifies you’re selecting the right quantity of products with the right expiry date and that they’re delivered on time with the planning offered by EWM” — Sajid Riaz, Chief Information Officer
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the right place, so when we’re live on the new system it should deliver results as promised. This has helped us foster trust and support internally, our customers.” Embarking on a root-and-branch transformation of its logistics business, Balsharaf understands the importance of having the right people on board to enable change. As a result of this, the firm strives to hire the best expertise in the market, including warehouse managers and forklift operators with past experience in EWM or WMS solutions. On top of this, the company has also ramped up its training programmes. “We overhauled the entire team to ensure we had the right kind of people on board with the right mindset and experience to run the new system. This makes change management a lot easier,” Riaz says. “Then we had a very long training and testing period. This culture change ensured the success of the roll-out.” Boasting over 50 years’ experience in the sector, Balsharaf Group is all too aware of the importance of both continuous improvement and innovation. Now, with plans to roll out EWM across more of its warehouses, it seems the Saudi firm plans to cement its position for years to come. 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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