SPECIAL EDITION MAY 2019
Digital DNA for Augmented Organizations BRIDGING THE GAP BETWEEN BUSINESS AND TECHNOLOGY
Henrik von Scheel The fusion of the digital, the physical and the virtual world www.digitalbizmagazine.com/DES2019
Maria Urquía, Telefónica The roadmap to face an orderly digitization
Grupo CMC IoT, identity management, security, analytics, big data...
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
The need for speed
Fernando Escudero
Welcome to DES2019!
Although Digital Transformation is a long-time project
someone else is going to put a better one out eventually.
for any company, there is one thing that matters more
The element that has changed, is the time-span in which
than the rest: the speed of this transformation. Once
all of this happens. Our value propositions simply (al-
customers have gotten used to the most comfortable
though there is nothing simple about it) must help to
way of doing things, like getting your products always
solve customer’s needs or problems. Therefore, we have
by tomorrow, ordering a car or your food with one click,
to implement mechanisms that allow us to find these
they are not going back to the “old ways”. Even if this
value propositions in time to do something meaningful
“old ways” are only three months back.
about it.
And this is something that puts companies under a lot of
I know it’s a tall order, but this years’ DES2019 will pro-
pressure, because they have to keep up with the speed
vide many of the answers CEOs, CTOs, CIOs and CMOs
things change. But in a way that will offer a long-time
are looking for, in order to make the next step in their
solution to today’s short-term requirement or problem.
Digital Transformation process a safe one, and in the
Decision time for companies is getting less and less. And
right direction.
with fast decisions, come bad decisions. Or, at least, in-
“
correct ones. That is the main reason why companies have to change their ways completely, in order to adapt their processes to the shortened decision time, development time and implementation time. And what is more: the shorter lifespan of the product or service they will put on the market, because it is going to superseded, for sure, in no
Director
D I G I TA L B I Z MAGAZINE DES 2019
digitalbiz.es
Digital transformation is all about coordinated long-term planning and short-term delivery
time at all. The goal, in all of this, is to be the ones that put out the new product that substitutes the previous one. Although this looks like kind of a dangerous race to an uncertain destination, it is no different from what has been happening on the markets over the past 100 years. Someone invents a new product and, invariably, KERUNET DIGITAL PUBLISHING is not responsible for the opinions of its collaborators or endorses them in any way: they are solely responsible for the content that appears with their signature.
Director FERNANDO ESCUDERO fernandoescudero@kerunet.com Publisher MARIANO FERRERA marianoferrera@kerunet.com
Publisher KERUNET RELATIONSHIP MANAGEMENT, S. L. C/ Humanes, 27 – 28944 Fuenlabrada – Madrid Tel. 91 112 46 97 | info@kerunet.com All rights reserved. Under the provisions of the Articles 8 and 32.1, paragraph 2, of the Intellectual Property Law, reproduction, distribution and public communication are expressly prohibited, including making available all or any part of the contents of this publication, for commercial purposes, in any medium and by any technical means, without written authorization from Kerunet.
Art Direction XANA MORALES xanamorales@kerunet.com Digital & Online Marketing SERGIO SALAZAR sergiosalazar@kerunet.com
Contributors Marisa Urquía (Telefónica España) Jaime Hortelano (Grupo CMC) Lluís Altés (DES-Digital Enterprise Show) Henrik von Scheel Tomás Martínez Buero (AI-Network) David Green (Lynk & Co) Antonio Crespo (Quint) José Antonio Tejedor (Virtway Events Juan Francisco García (Grupo CMC) Óscar Pierre (Aggity) Ferran Serrano (T-Systems) Alejandro Barrera (Grupo CMC) Marina Specht (MRM//McCann Europe)
Photography Jonathan Alonso, The Nut, DES– Digital Enterprise Show, Telefónica Empresas, Grupo CMC, Virtway Events, Aggity, T-Systems, McCann Europe, iStockPhoto, Wikimedia Commons, Freepik, Smashicons.
Printing Nueva Imprenta Subscriptions suscripciones@kerunet.com Editorial Team redaccion@kerunet.com Advertising info@kerunet.com Depósito legal M-32718-2012 ISSN 2254-9269 Website www.digitalbizmagazine.com/DES2019
MAY 2019
// 01
#DES2019
01 04
SUMARIO
Editorial
The need for speed
#DES2019
Digital Enterprise Show 2019 The world’s leading event dedicated to Digital Transformation
08
Interview
Marisa Urquía, Director of B2B at Telefónica España
“ 14
We make available to companies what we have learned in our digital transformation
Jaime Hortelano,
President & CEO at Grupo CMC A deep knowledge of our clients’ business, allows us to give an effective response to any arising challenges
18
We must speed up
22
Big changes and new ways of thinking
25
The right question to find the right answer
02 //
Self-driving cars and Machine Learning
30
Technology at the Boardroom
32
Leading the rise in Virtual 3D Interactive Events
David Green Lynk & Co
Antonio Crespo Quint
José Antonio Tejedor Virtway Events
A conversation with…
“
28
Lluís Altés
DES-Digital Enterprise Show 2019
Henrik von Scheel
Industry 4.0, strategy & competitiveness
Tomás Martínez Buero AI-Network
MAY 2019
36
Towards the data-driven company
40
Social Factory, the talking factory
42
Digitization for a better future
44
Identity management
46
The Marketing people are key
Juan Francisco García Grupo CMC
Óscar Pierre Aggity
Ferran Serrano T-Systems
Alejandro Barrera Grupo CMC
Marina Specht
MRM//McCann Europe
#DES2019
Digital Enterprise Show 2019 The world’s leading event dedicated to Digital Transformation
DES - Digital Enterprise Show is the leading event in Digital Transformation that offers CEOs, CIOs, CDOs, CMOs, political leaders and HR departments, together with cutting-edge technology companies, the most innovative products and solutions as well as the skills required to help European SMEs and large corporations join the digital transformation. This includes technological solutions to improve the customer experience, operational processes and business models of all industries.
Digital Enterprise Show is the place where the synergy between knowledge and experience is achieved, where new ways of making business, of implementing new solutions and ideas arise. You are in the midst of an expo with over 300 world’s top tech companies, a congress with the 450 world’s best digital experts, and more than 23,000 visitors, who are discussing how Digital changes the business, and how to acquire the crucial knowledge, skills and solutions to shape their industries’ future. / M A K I N G D I G I TA L PA R T O F Y O U R D N A For the sake of your organization, it’s time to assume that digital transformation is bridging the gap between business and technology. A sense of urgency must help us to understand that if your organization wants to stand apart it is mandatory to make Digital part of your DNA. The potential for digital platforms to underpin and grow your business is unbounded. No more excuses, it doesn’t matter if you were born or re-born digital, your new mandate is to be the engine of growth. Consumers are taking the center stage and this generates an amazing opportunity for businesses, but also paramount challenges. We are going to have to change our priorities to satisfy customers demands, to forge a new path to win by generating transient competitive advantages in front of your
04 //
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
traditional competitors and new entrants challenging
Transformation is up and running. Most organizations
your industry.
manage it haphazardly — when it should be a deliberate
Digital transformation is driven by a set of principles
and disciplined endeavour. Organization capabilities de-
and frameworks enabled by technology and connec-
veloped during the strategy definition process now need
tivity. Once these principles and frameworks are un-
to be coordinated together so enterprises can take advan-
derstood, they can be applied to any Business. Digital
tage of the augmented organization, where technology
transformation is a continuum and there are 5 key ele-
and capabilities are orchestrated in the most empower-
ments to this endless journey that will help all kinds of
ing way.
organizations to capture opportunities faster before the
*
competitors catch up and let them go before they are
/ CITIES & PUBLIC SECTOR FORUM
exhausted, so to not waste company resources.
The first important forum at DES2019 is on May 21st, dedicated to the Public Sector, where Cristian Citu, expert
Leading companies will address how AI has helped to optimize the experience of the digital patient
DES 2018
of the World Economic Forum, analyzes public/private collaboration. Other experts and leaders from the public and private sector will address the main challenges of cities 4.0, where regulatory changes and technologies are evolving the configuration of urban environments. The acceleration in the urban and demographic development that the urban centers are experiencing, together with the growing concern to achieve a sustainable management of the available resources, are placing technology as a lever of change in the configuration of the cities to respond to these social needs. Therefore, Smart Cities
Last year, DES had 20,974 attendees from 51 countries, consolidating this
are gaining ever more relevance in this paradigm. The
event as one of the most important ones for Digital Economy. 68% of the
difficulty resides in establishing city models that are able
attendees were C-Level senior executives and members of boards of directors.
to be developed and everybody (public sector and citi-
Over 300 exhibiting companies, including Accenture, Deloitte Digital, IBM,
zens) is happy with. That is why the role of the citizen is
KPMG, Everis, UST-Global, Indra, SAP, Capgemini, Santander, Altran, Ferrovial,
gaining special relevance in this fourth edition of DES.
Seidor or T-Systems, showed their latest technological solutions over the three days the event lasted. The main topics of last year’s DES were Artificial
/ D I G I TA L H E A LT H F O R U M
Intelligence, Cybersecurity, the new GDPR and the debate of the Digital
Personalization, control, and safety are the main de-
Agenda by the political groups.
mands of patients in the health sector, according to IDC’s predictions. Health care, the doctor-patient relationship, and diagnostic procedures and treatments are experi-
MAY 2019
// 05
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
+10
6
7
89
+450
SCENARIOS
SUMMITS
TECH SERIES
SUCCESS STORIES
SPEAKERS
10
9
3
WORLD’S TOP INFLUENCERS
INDUSTRY FORUMS
SUPERSESSIONS
FIGURE 1 // DES2019 in numbers.
encing a revolution because of technologies such as Ar-
/ BANKING AND INSURANCE FORUM
tificial Intelligence, IoT and Big Data.
Santander, Telefónica, Deutsche Bank, Caixabank, Mas-
This is why during May 22nd DES2019 has organized
terCard, Evo Bank, AndBank, UiPath, Ovamba Solutions
the Digital HealthForum, where these new drivers are
and IDC experts are analyzing the challenges of the fi-
being analyzed, as well as how technologies are trans-
nancial sector at DES2019 on May 23rd. The new play-
forming the doctor-patient relationship and driving
ers, such as GAFA, and changes in regulation with the
new health care models in which data management is
entry into force of the PSD2 directive and the launch of
the protagonist. Leading companies in the sector such
the Spanish Sandbox for FinTech, will be discussed as
as Philips Health or Sanitas will address how artificial
well. This new European Directive will have a huge im-
intelligence has helped to optimize the experience of
pact throughout the EU. With this new regulation, open
the digital patient.
banking will be promoted, a new paradigm that can be
There is no doubt that the health sector needs to accel-
an opportunity for traditional entities, which will be
erate its digital transformation to take advantage of
able to provide financial services by developing Market-
technology and develop efficient and profitable models.
place-type platforms where they can integrate the Fin-
According to the latest data from IDC, the adoption of
Tech solutions.
Artificial Intelligence in the sector will have a direct im-
So the financial and insurance sector is seeing how the
pact on 25% of businesses related to the health sector in
business is transformed by leaps and bounds due to the
2020; and it is expected that by 2022, 50% of the clinical
impact of technology. That’s why DES provides this fo-
applications will include interfaces, based on voice rec-
rum, that will provide the keys to face the arrival of new
ognition and sensor implantation, for the treatment and
competitors in the sector and that will analyze the impact
collection of data.
of the enforcement of the European Directive PSD2, as well as the current trends on how the blockchain is being used.
/ I N N O VAT I O N H U B F O R U M Also on May 22nd, the fourth Innovation Hub is taking place at DES2019, where ideas and transforming projects from multiple verticals are shared through technology. The objective of this forum is to connect entrepreneurs with potential investors, accelerators and large companies to establish business relationships for the future. For their part, large corporations find in Innovation Hub a space in which to access innovative and disruptive models and
*
The financial & insurance sector is being transformed by leaps and bounds due to the impact of technology
highly talented professionals who can help them in their digitization strategy. Approximately 30 participating startups from various sectors such as Industry 4.0, Urban Mobility, Energy Services, Cities and Public Sector, Banking and Insurance, Digital Health, TELCO, Media and Entertainment, Tourism and Retail, Electronic Commerce and Logistics are presenting their business proposals to inves-
Bridging the gap between Technology and Business
tors, large companies, accelerators and scale-ups. Innovation and how it is conceived within the corpora-
DES is connecting the most innovating companies, providers of tech solutions
tion, is a fundamental ingredient to have in order to be
based in AI, IoT, Blockchain, Cloud, Cybersecurity, AR/VR, Big Data, Marketing
in the group of leading companies. The Innovation Hub
Automation, and products dedicated especially for Digital Marketing and
brings together all the benchmarks of the innovative
Industry 4.0, with C-Level Executives and purchase decision makers, who are
ecosystem and forms a large space to share and discover
attending DES aiming to find the best solutions from key industries.
new business models, new digital value chains and new digital economies.
06 //
MAY 2019
Also enjoy this issue in its digital version!
www.digitalbizmagazine.com/DES2019
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
We make available to companies what we have learned in our DT MARISA URQUÍA,
Director of B2B at Telefónica España
Companies need to accelerate their transformation and now it is the time to do it. That is why Telefónica Empresas was born. To respond to the needs of all types of companies, regardless of their size and sector, in order to help them during this process and provide them with complete solutions adapted to their specific needs. Marisa Urquía is looking after B2B unit of Telefónica España.
What is your vision of the current digital trans
In recent times, this process of internal change
formation (DT) scenario?
has had a clear impact on various areas, incorpo-
The DT is not a trend, it is a reality, a necessi-
rating improvements in our own procedures and
ty and an opportunity that companies have to
activities. For example, simplifying and increasing
adapt to the new market, to new relationships
efficiency in our processes and services has sig-
with the consumer and to the new paths that
nificantly reduced our fixed costs. In addition, we
technology is opening up. It is a priority in order
have implemented new ways of working, which
to maintain competitiveness.
are more flexible and transversal, introducing the
The current business environment forces us to
concept of “smart work” and adopting the ‘Agile’
re-imagine the way we do business, and digitiza-
methodology in ever more areas and depart-
tion is a key tool to face our challenges success-
ments in Telefónica. And we now have a better
fully. That is how we understood it a couple years
digital relationship with the companies for which
ago and it has become a key part of our operation.
we work. The latter has allowed us to boost our
08 //
MAY 2019
#DES2019
MAY 2019
// 09
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Cloud Garden
online channel (1 in 4 sales is online) and trans-
is more relevant, increasing their purchase time
form our physical stores: we have carried out the
while enjoying a different experience.
digital restyling of almost 700 Movistar stores in Launched recently alongside IBM, it
Spain, that is 65% of the total.
What is your vision regarding the cloud?
allows companies to offer the speed,
We have done this by leveraging the technological
The current trend in terms of cloud infrastructure
flexibility and decision-making
innovations within our reach, such as the Inter-
is that public and private ecosystems have to co-
capacity they need to modernize
net of Things, Big Data, Cloud or Blockchain. Of
exist. But is it possible to assign a customized in-
and rapidly launch innovative
course, we have done this always ensuring security
frastructure to each business process to get the
digital services to their customers.
and connectivity. This has allowed us to share with
most out of it? And, if so, would it have to deal
The foundation of this solution is
our clients all the lessons learned in our own DT.
with a multi-provider landscape and, therefore,
a managed container service, so
multi-interlocutor?
that companies have the necessary
Are we talking only about big corporations?
At Telefónica we have developed a MultiCloud
tools to be able to quickly execute
We talk about all kinds of companies, including
proposal in order to have a single interlocutor
applications that are already in
SMEs. DT provides tools similar to those of large
and make the management easier, building an
production, and to integrate them
companies, but adapted to their specific needs,
infrastructure in which each application has a
easily with other areas of the
which help them to compete in a digital environ-
customized platform to be hosted. In addition,
company. In addition, on top of this
ment.
it allows to combine different public and private
container service, we are creating a
From Telefónica, we are supporting SMEs in two
clouds, thus reducing complexity and centralizing
full range of services that are going
aspects: on one hand, helping them to understand
the management for all of them and therefore fa-
to facilitate the use of disruptive
the benefits of digitalization and the risks of not
cilitate the company’s relationship with its cloud.
technologies such as Blockchain or
adapting and, on the other, we are helping them
This MultiCloud proposal includes Private Cloud
artificial intelligence in a company’s
with the technology transfer and training their
services, a flexible infrastructure with Virtual
products and services, to increase
people in digital skills. All of this will impact their
Data Centers and a Public Cloud (Amazon Web
their process quality and agility.
productivity and sales at a controlled cost.
Service, Microsoft Azure and Google Cloud), all managed through a unique interface, the Cloud
Is the relationship with customers key?
Broker.
Of course. At Telefónica we reinvent and digitize the experience that brands offer users in their
Security is obviously important
physical spaces (stores, offices ...), opening up new
Yes. For example, we are helping businessmen
opportunities for communication, connection and
maintain high protection levels and threat mitiga-
relationship with their users. For this, we use dig-
tion when the main data and applications are pro-
ital multisensory marketing tools, such as digital
cessed in a Public Cloud, provided by a third par-
signboards, music and lighting, interactive panels...
ty. This way, we help them implement Security in
All of this is adapted in real time to different types
a context of transition towards cloud computing.
and goes through all the channels, from the digital
We have a team of more than 600 professionals
- like webs applications
specialized in Security for this, as well as a SOC
or search engine opti-
(Security Operations Center), that provides our
mization – to the phys-
main Managed Security Services: cybersecurity
ical ones.
equipment management, maintenance, incident
In addition, we re-
monitoring and analysis.
cently launched the
We also provide other services to protect against
smartretail Spotdyna
Denial of Service (DDoS) attacks from Telefóni-
platform, which en-
ca’s own network and against attacks directed at
compasses and allows a unified coordination of all
web applications (Web Application Firewall), in
the necessary tools to digitize spaces depending
order to ensure Clean Mail Traffic, and security
on the public and the specific moment.
for Internet surfing. We also have Electronic Sig-
At Telefónica we reinvent and digitize the experience that brands offer in their physical spaces
nature and Digital Identity services. This has a clear application in the retail sector
The strategy we follow is to begin by protecting
Exactly. We have many references in the retail sec-
the basics (networks, cloud storage and equip-
tor because, thanks to the DT of the stores, a simple
ment), and from there we extend that protection
purchase becomes a new and different experience.
to other, more complex, assets.
In this area, technology helps merchants to bet-
10 //
ter understand consumer behavior in order to
IoT is another of the big bets
offer customized content. The visitors receive a
Connecting everyday things via the Internet is a
communication tailored to their interests, that
real breakthrough for organizations. IoT helps
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
We help maintain security, when data and core applications are processed in a public cloud simplify processes, increasing simplicity and agil-
networks will grow exponentially due to the ex-
ity, which in turn yields a better service to busi-
plosion of new technologies and services.
nesses and citizens. The application of this tech-
Therefore, we are leading the network transfor-
nology in companies and public administrations
mation in order to adapt it to the growing de-
has improved, for example, transport systems,
mands of our customers (fiber, 4G, and soon in
energy consumption - which affects the environ-
5G). The network is the foundation of the DT. We
ment - or city waste management.
have built a network focused on business and
It is not only about providing connectivity to
made a strong investment effort to get the best
‘things’ or devices, but about the possibility of
capabilities in order to respond to the challenges
controlling and keeping these assets connected in
presented by digitalization. We provide compa-
an integrated way through a single system.
nies with a flexible and agile connectivity that
This is a type of service that companies have
adapts itself to the demands of their businesses.
welcomed with enthusiasm. The IoT Kite plat-
Another key element is the intelligent data
form has recently reached 10 million lines due to
processing. As José María Álvarez-Pallete,
growth in industrial areas (connecting and opti-
Telefónica´s Chairman and CEO, has stated on
mizing logistics and production processes), asset
more than one occasion, data is the oil of the
tracking (more efficient, safe, sustainable and
21st century. This represents a paradigm shift
profitable goods and people transport), energy
for the current businesses, that have to evolve
efficiency (energy consumption control, gener-
towards this model.
ating a positive impact on the environment and
Telefónica steps in the Big Data world in 2010 and
significant savings), or Smart Cities (safer, more
since then we are taking advantage of these capa-
sustainable, efficient, comfortable and interac-
bilities in all company areas, generating new val-
tive cities).
ue and making our business more efficient. Any process that either generates massive amounts
What other technologies are essential?
of data, evolves very quickly or has to take very
At Telefónica, we always highlight the role of
heterogeneous sources into account, should take
connectivity as a key pillar of the DT; Traffic on
advantage of this technology.
MAY 2019
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#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
tion to be successful. It is necessary to implement a cultural change getting nearer to the human resources. We must adopt a new way of doing things, new processes and organizational models, so that the employees commit themselves to face the digitalization challenges. We must strive to explain to people what the reason for transformation is, and make them feel part of it, training them in the digital skills that are necessary. Of course we have to put all technological tools that allow them to grow in this new environment at their disposal. The digital workplace must break the usual barriers faced by employees, such as geographical dispersion, the ability to reconcile work and personal life, and autonomous and collaborative work. In this context, Telefónica has designed a service to address this change, providing a new user experience that integrates the entire ecosystem of services and devices that the employee needs to work under the same management model. The company helps them communicate and collaborate, enhancing their mobility and flexibility and ensuring both end-to-end security and success in managing change to a more digital culture. What advice would you give to a company to ac Regarding SMEs, they need to incorporate solu-
celerate their DT?
tions that allow them to compete in the digital
Companies and administrations know that they
environment with tools that are similar to those
need to be more digital. However, many do not
of large companies, but nevertheless adapted
know how to approach this process of change. In
to their specific needs. On top of that, we have
fact, according to a recent study by Fujitsu enti-
to help them manage
tled ‘The balance on the digital road’, 68% of com-
their
panies in Spain are looking for a strategic partner
We have built a network focused completely on business, with best-of-breed capabilities
infrastructure
more easily, at a cost
to help them in this process.
that is proportional to
At Telefónica, we believe it is essential to have a
their situation. From
roadmap to face an orderly digitization, whose
Telefónica we propose
objectives must be aligned with the company’s
doing this in two ways:
strategic plan. One of the mistakes usually made
on the one hand, help-
is addressing isolated digitization projects, with
ing them with the technology transfer and, on the
no relationship between them and without fol-
other, facilitating the training of digital skills.
lowing a common strategy.
Cybersecurity is also key. In our company we are
To take advantage of the full potential that DT can
applying it in its broadest sense: the one that re-
provide to a company, it is necessary to start from
fers to the concept of “management, detection
a holistic view that integrates all the pieces, so
and response” and that, in addition to the perime-
that each action that takes place, can have a mul-
ter protection, includes aspects such as threat in-
tiplying effect. It is also very important to meas-
telligence or attack anticipation; and other com-
ure what is done, to know exactly what impact the
mitment indicators and protocols for immediate
actions we carry out during the digitalization plan
response to security breaches.
have. To do this, we have to define performance indicators that show the progress and the digital
How is this DT impacting on employees? The digitization process goes way beyond technology. The employee is key for the transforma-
12 //
MAY 2019
maturity, to measure ROI.
#DES2019
Jaime Hortelano President & CEO at Grupo CMC
What is Grupo CMC? What is your value proposition, and what are your differentiating features? It is a very competitive market indeed, and one in which it is not easy to be different. We have always pursued differentiation in the market. Basically, our main strategy has to do, on one hand, with a deep knowledge of the business and the challenges of our customers. Through the understanding of these challenges and this in-depth knowledge, we propose a response to these challenges that is very effective, agile and efficient. In fact, it is almost like making tailored suits in response to these challenges, based on the knowledge we have of the customer. Additionally, the search for the solution is always supported by the latest technology with a very important innovation component. And it is important to have the best professionals and being able to attract and retain the talent and work pace that our team has. So, summarizing, first a deep knowledge of our clients’ business and its challenges, second, an effective response to those challenges, third, being supported by technology with a very strong innovation component and fourth, having the best professionals. Tell us a little about your approach to the market. How is your structure? What type of companies or sectors do you focus on? With what kind of technologies? We are present in all the main sectors of the Spanish economy: banking, insurance, telecommunications, energy and utilities, infrastructure, tourism and health. In terms of percentages, approximately 33% is banking, 18% is tourism, about 15% is energy, another 15% is telco and then, the last 20% is shared between industry, infrastructure and health. Insurance is about an 8%. With this positioning in several sectors we have a sufficiently diversified position and our approach in terms of deep knowledge of each of the businesses, and a very important knowledge of all the sectors which are important for the Spanish economy. It is also important to note that we have the most important customers in each sector. Our approach to the market is with a specific approach for each of these important customers. In the end, about 50 clients represent about 80% of our business. And our approach is to identify the specific challenges of each cli-
14 //
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
In my professional career I’ve been with Coopers & Lybrand, which later merged with PwC, also with EY, I was Vice President at Capgemini, and then General Manager for Getronics. After this journey through the Big Five, with almost 20 years in senior management positions for English, American, French and Dutch companies, I decided to set up my own business project. During those 20 years in multinationals, I learned a lot and had a very interesting time that helped these past twelve years in this project with a great business connotation.
#DES2019
main blocks, and another one is everything that has to do with digital transformation technology. The digital transformation technology block is subdivided into five or six individual segments. One of them has to do with the Internet of Things, another has to do with digital and electronic operations, another one is everything that has to do with Big Data and Analytics, another one with Artificial Intelligence and finally one that encompasses Security and Cybersecurity. These are the 5 most important subdivisions. In each of these blocks we have focused very much on innovation and looking for solutions for the market. We do not sell “IoT” as a concept. What we sell are actual solutions for the businesses of our customers, based on IoT. Or else solutions for Big Data or artificial intelligence. You get the picture. And for each of these areas we use either technologies that already exist on the market, (which are standard), or we use technologies that we have developed ourselves. The latter ones can be the result of an acquisition of a company, that we will immediately integrate in our innovation process. I’ll give you some examples for each of them. For IoT we
“
ent so we can serve them better. We try to differentiate
are very focused on several things:
each of the clients and we do it with solutions based heav-
»»
ily on innovation that are specific for each customer.
of the leading companies for implementing solutions
Even if company A and company B are in the same sec-
for the management of photovoltaic plants. Actually,
tor, they probably won’t have the same challenges, the
everything that has to do with the management of power
same culture, or the same way of doing things. So we
generation in photovoltaic plants, for example based on
adapt to each of them and try to understand what the
SCADA technology, with mobile access.
challenge is for each moment, of each client. What he
»»
wants to do, what are his priorities. And we then re-
from a strategic point of view, thinking of the future man-
spond in a specific and differentiated way.
agement and allocation of water, as well as of its distribu-
We do this through solutions and, when I say “solu-
tion and its commercialization. This is a field where we
tions”, I am not talking only about technology. But we
have pioneering solutions.
try to generate solutions through technology.
»»
The world of energy generation, where we are one
The world of water is also a very interesting topic
The world of BMS (Building Management Systems),
this is actually the management of intelligent buildings
A deep knowledge of our clients’ business, allows us to give an effective response to any arising challenges
via IoT technology. The most important project we have done to date has been the intelligent management in the BBVA “sail” building where we manage more than 120,000 devices and we take care of the energy efficiency as well as the environmental management. »»
The world of Big Data, where we also have some inno-
vative solutions. For example one that is called DatKnoSys, which is dedicated to analyze provider risks, or risks in general (for banks, acquisition departments, etc.). The
How do you generate that innovation? How does it get
system even looks for information on Social Networks,
to Grupo CMC?
blogs, webpages, and so on to find information about the
For us, innovation is key within our strategic plans. Right
potential contractor, partner or provider.
from the beginning of this project we are innovating by
Lately we have also acquired a stake in an innovation
means of using the best technologies and proposing spe-
company, that produces intelligent mirrors. But in this
cific solutions for the market.
case, we’ve tried something new. Instead of doing all the
First of all, our offer does balance everything related
innovation ourselves or buying 100% of some company
with traditional information systems and using both
we are interested in, we have just taken a stake in their
custom-made and standard solutions. That is one of our
shares, that has allowed us to incorporate these compa-
MAY 2019
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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
ny’s innovation in our core. This is a new approach for
The new digital banks, for example, are game-changers.
us. Anyway, what we try to do is combine both worlds:
And then there are the new competitors, like Amazon or
the traditional IT world, and the Digital Transformation
Google, which want a part of this market. And this is the
paradigm.
reason the financial sector has to changes its processes radically.
How has Grupo CMC been doing these past years and
And we are just there, helping them digitizing their pro-
what are your expectations for the future?
cesses. For example, our O2.Digital platform is the per-
Well, in 2007 we were a small company, with about 40
fect gateway to make digital clients. Among other things
employees, and today we are over 1,000, but we expect
because you can identify yourself without leaving your
to finish this year being over 1,200. Our growth rate,
home. Another challenge is credit risk assessment. To-
year over year, for the past 12, has been around 25%.
day, you can actually access all the information you want
But in the last 5 years, from 2014 onwards, we actually
(so to speak) about a certain customer, just by searching
have been growing at a pace of 28%. Half of that growth
on the web or on Social Networks.
is organic, and the rest comes from acquisitions. In our
“
sector we have been in the Top 5 for the past 3 years and, in 2018, our growth has actually been a 42%. Last year’s turnover was about 51,5 million Euros and for this year we expect to cross the 60 million mark. In fact, our goal for the next couple of years, is to surpass the 100 million Euros, and to get into the Top 20 of Spanish companies.
Everybody knows Digital Transformation is a must, but the speed at which you do it is the most important thing
The acquisition of startups by big companies is something usual. How has Grupo CMC done this? How have you integrated your acquisitions into the group?
In your experience, what is the degree of transforma-
Actually, as I already said, one of our strategic keys is in-
tion today? Is there still a long way to go?
novation. Which we have done, in part, acquiring other
I think everybody knows Digital Transformation is a
companies with interesting products or services. Some of
must. At least if you want to compete on a market that is
these companies where, obviously, start-ups. What we do
in constant evolution. But the most important thing is the
usually is that we integrate the new knowledge into our
speed with which you are trying to transform. Because
company, and then do a really big marketing and product
there are lots of very traditional companies, set in their
effort. Our O2.Digital platform, for example (see also the
ways, which have it quite difficult to adapt. Because tech-
article “Identity management. The next step forward for
nology, as such, is only a means to an end: a facilitator.
digital companies” in this same magazine) has its origin
Not the universal solution when you talk about Digital
in the acquisition of a start-up. As has our product Dat-
Transformation. You can’t transform a company only
KnoSys. So you can see that some of our most important
with technology. Therefore, the first step, especially in
solutions for the market, come originally from start-ups.
traditional companies, is changing the mindset and the
Our main goal, after the acquisition phase, is to convert
way they operate.
the knowledge they add to our innovation pool, into solutions we can offer to our customers, so they can solve the
You are focusing quite a lot on the tourism sector.
problems or necessities they have.
Why is this?
What we have seen is that the opportunity window for
Yes. Last year we acquired a company called Brújula,
new technologies in this digital era are getting shorter
which is a specialized IT company for the tourism sector.
all the time. So we think it is no longer possible for us
Anyway, I personally think that, since we are in Spain,
to finance all of our innovation initiatives completely
being in the tourism sector is a natural evolution. We ac-
in-house, because we need technology that is ready or
tually have all the technology ready to do, for example,
almost ready, to integrate and implement it in our prod-
the digital check-in. Even complying with all the legal
uct range. Therefore, we still work on two or three own
requirements of the government. And our digital Smart
projects, but the rest has to come from outside, because
Mirrors, could be used as digital butler right in the room,
the pace of change requires it.
or as assistant for trips, transport or information, in the Hotel lobby. On the other hand, we can apply all the IoT
The financial sector is one of the main drivers for
technology to the building, to control the electrical grid,
Grupo CMC. ¿What kind of innovative propositions
water supply, lights, heating and ventilation, etc. So, you
are you making to these companies?
see, our technology is ready to go, and this sector really
I think that the current challenge the financial sector has
can take advantage of it.
right now is the complexity the market has currently.
16 //
MAY 2019
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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Lluis Altés
Managing Director de DES-Digital Enterprise Show (2019)
He offers a fresh and provocative perspective on the opportunities and challenges that organizations face today, and he loves to combine the analysis of the impact of people in the digital age, with the study of the role of innovation and technology in the creation of new business models, products and services. Some people define him as a thought leader, but he is convinced that the best way to continue learning is to share knowledge. He is an entrepreneur with endless curiosity and a professional speaker in several languages on issues related to how digital transformation is bridging the gap between business and technology; and the crucial role of talent, people and innovation in the current revolution.
transformation with a holistic vision within the company. The goal in 2016 was to make it clear to the attendees that it was necessary to establish a global strategy impacting all business areas, from IT infrastructure to business management and even company’s own culture. A year later, DES2017 under the concept ‘Digital Maturity Journey’ elaborated a digital maturity map to ease doing a self-diagnostic to understand in which stage of the digital transformation the company was in and to define next steps for our attendees’ organizations. The objective was to provide solutions that allow companies to integrate their traditional business model into the new digital economy following a roadmap. DES2018 edition under ‘Facing the Digital Avalanche’ claim, highlighted the awareness of the national and international business. We focused on the urgent need to undertake digital transformation and to change national economic and production models through technology. Finally, this year we decided to name our storytelling ‘Digital DNA for Augmented Organizations’. We make a strong call to action to address the process of digital transformation now. There is no time for excuses, but to assume that digital transformation is a continuum and that we must be masters of its five key points to be future-proof. Please explain this year’s main motto “Digital DNA for Augmented Organizations” During the fourth edition of DES-Digital Enterprise Show
“ 18 //
Please tell us the evolution of DES these past years,
we want to focus on the main challenge that companies
to reach the point where it is now
immersed in a transformation process are facing: the
From the beginning, DES has counted with a lot of support
need to integrate new technologies into their DNA and
from leading companies. Initially, it was made of ICT
the cultural change this entails. Innovation, together
companies, but while gaining recognition on the market
with technology, will be the engines for development.
as the reference on DT, more and more organizations
Thus, it is fundamental to integrate the culture of
from all kind of industries are joining our impressive
innovation into a companies’ identity and business
Partners line up. The reason behind this is not only being
philosophy in order to continue growing.
the reference in Europe, but being the place to find the
Until now, many of them have started the digital
best partners to succeed in their transformation journey.
transformation in a hazardous way, without a clear roadmap that involves the whole organization. Now
DES 2019 is all about the need of companies to integrate Digital Transformation into their DNA
is the time for this process to have a comprehensive application that involves not only IT departments, but all the organization. Transformation is a continuous process that must address the 5 key dimensions of the Digital Star Cycle: digital leadership, special attention to customer and employee experience, operations optimization, and
During the first edition, DES2016 focused on helping
added value through technology and innovation, when
visitors to be aware of the need to implement digital
defining a winning strategy that allows us to generate
MAY 2019
#DES2019
“
new revenue streams based on new business models,
academics or analysts. On the other hand, if we focus
new digital value chains and new digital economies.
on last year’s visitors, 82% of the visitors came from Europe, mainly from Portugal, the United Kingdom,
The biggest differences of the digital revolution over the previous ones, is the irruption of disruptive technologies and the speed of change
Germany and France, followed by America (11%), Asia (5%) and 2% from the rest of the world. Which industries (if any) are most represented at DES? DES-Digital Enterprise Show is a holistic event where all industries are represented. Thus in the last edition our visitors and exhibitors where divided in the following industries: Telecom (12%); Retail (10%); Banking & Insurance and Consumer Goods (9%); Cities
What kind of person/profile usually attends DES?
& Public Sector and Pharma & Health (8%), Media &
The event is been designed to help all managers and
Entertainment and Consultancy (7%); Manufacturing
professionals who want to be up to date and know
(6%); Energy & Utilities (5%) and others (11%).
the most inspiring use cases and everything related
In addition, within the contents of our Digital Business
to the transformation of organizations. Therefore, our
World Congress, we also have a special focus on how
visitors are CEOs, CIOs, CDOs, CMOs, CFOs, and leaders
technology and innovation are driving industrial
of Human Resources departments. For each of these
transformation. We organize 9 industry forums focusing
profiles, we have developed specific content agendas
on analysing the challenges of digitization faced by
to show them key concepts to be leaders in the digital
companies from Banking, Energy and Health to Industry
age. Surviving is not enough any longer, it is only a
4.0, Retail or Tourism, and from Telecommunications,
way to postpone your company’s death.
Media and Entertainment to Smart Cities and Urban
71% of the attendees are C-Level decision-makers, 16%
Mobility. Each of them combines the knowledge of
are middle managers, 14% directors, 11% technicians,
international experts and success stories of companies
5% presidents of large companies and, finally, 2% are
that have stood out all over the world for implementing
MAY 2019
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#DES2019
“
an innovative business model, or for successfully
Our main objective is to ease the transformation
carrying out the digital transformation process.
of organizations and the identification of the best partners and talent to make it successfully. That is why
The use of Big Data, Blockchain, IoT, Virtual Reality or Cloud is already a reality in many companies
we also include experiences and spaces for networking within the event program. How many people and companies do you expect this year? Focusing on figures, we can stress that interest in business digital transformation has grown gradually since the first edition, in 2016. In these years we have gone from 18,000 attendees to expect to exceed 23,000
20 //
What kind of opportunities open to the people that
this year.
attend DES?
In this fourth edition we will have leading IT
DES2019 has become an international meeting point,
companies like IBM, Altran, Deloitte Digital, EY,
where attendees can find the latest news and the most
T-Systems, Globant, KPMG, Santander, TelefĂłnica,
innovative solutions from leading IT companies, as
Nutanix, Ferrovial, Seidor or Improove; which will be
well as enabling technologies to develop new business
presenting the latest and most innovative solutions
models, improve the experience of their customers
for visitors to find the way to digitalization, also
and employees or increase operations productivity.
counting on the experience and knowledge of leading
In addition, as a content-driven show, DES runs
companies.
on 10 stages simultaneously where more than 450
In addition, we again have the support of institutions
international experts share trends and use cases
such as Madrid City Council, the regional government
on Artificial Intelligence, Big Data, Blockchain, IoT,
of the Community of Madrid, several Ministries of
Robotics applied to different industries such as
the Spanish Government, Business Europe, CDTI, the
Banking, Energy, Health, Industry 4.0, Retail, Tourism
European Commission, Enterprise Europe Network,
or Urban Mobility, among others.
the European Investment Bank, ICEX or Watify. All of
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
them consider DES the event where to promote digital
more complex. Now more than ever, companies must
transformation business and to facilitate cross-border
seek advice and help so that the digital transformation
opportunities.
of their businesses gets real and efficient in a reasonable amount of time. Because if corporations need too
Today, are people still talking more about Digital
much time to apply the Digital Transformation, by the
Transformation than actually transforming their
time they have finished, technology will have changed
companies?
again.
It was like this some years ago, nowadays organization
“
assume that they need to revamp their strategy to
How is the Public Sector doing? Are they applying
continue being a leader or to become one.
DT? To which degree? How will this affect everyday
Initially it was a concept without real implementations,
life?
now their customers and their competitors have made
The public sector is increasingly aware of the need
companies aware of its value, allocate resources to it
to address this transformation, and although the
and look for the best partners to carry it out efficiently.
beginnings were slow, we can assure you that in recent
So there has been a definitive evolution on that side, as
years they have accelerated the process of getting
companies and, especially, their management, see the
closer to the needs of citizens and improving services.
advantages that Digital Transformation brings with
Some countries such as Sweden, Denmark or Finland
it. There is, obviously, still some resistance in certain
are leading the digital transformation of the public
executive profiles (especially the more traditional
sector.
ones), but this is being less and less each day.
In Spain, public administrations have also taken a big step forward in this area, also driven by new legislation
The public sector is increasingly aware of the need to address the Digital Transformation paradigm
promoting the implementation of e-government, for example. However, as the latest study carried out by EY under the title “Digital Administration in Spain” points out, it is still necessary for public administrations to tackle a comprehensive strategic plan for digital transformation. If
we
focus
on
how
this
modernization
and
What is the real value of DT? Transforming people
transformation is affecting the daily lives of citizens,
or processes?
we can see some examples in the use of shared vehicles
Since the beginning of time transformation has
available in Spain’s cities such as Madrid or Barcelona;
been a constant. The biggest difference of the digital
unification of personal data and medical reports
revolution over the previous ones that came before, is
through national platforms; creation of electronic
the irruption of disruptive technologies and, above all,
administrations or the creation of a Secretary of
the speed of change.
State for Digital Advancement, within the Ministry of
The real value of digital transformation is to satisfy
Economy.
customers (internal and external), who ask for much more than cheap products, demand unparalleled experiences and companies that no longer only think about making money in the short term. In other words, people must be put at the centre of the transformation and the rest will follow. In my opinion, it is no longer time for awareness, but time for action. We must speed up. What is the current adoption of these new models & technologies in the corporate landscape? The use of technologies such as Big Data, Blockchain, IoT, Virtual Reality or Cloud is already a reality in many companies, but much remains to be done. The development of new technologies, and new applications that we have been talking about for decades, is getting bigger and faster. Adapting and knowing all technological innovations, and how to implement them in a company is becoming more and
MAY 2019
// 21
#DES2019
Henrik von Scheel
Originator of the Industry 4.0 and Leading authority on strategy & competitiveness
Henrik von Scheel has been named as one of the leading authorities on strategy and competitiveness by the Financial Times. Most of his work is applied to national economies, triggers global themes, influences GDP growth, resets policies, and shapes the performance of the fastest growing Fortune 100 companies. At present, he frontiers applying Industry 4.0 to leading organizations, investing in ground-breaking innovations and implementing next generation of wealth creation with the leading “Artificial Intelligence Trading Service” provider.
»»
The 3rd industrial revolution began in America in
the middle of the 19th century with the harnessing of electronics and information technology to automate production. »»
Finally, the 4th industrial revolution began in Ger-
many at the beginning of the 20th century with the combination of the digital, physical and virtual worlds into what is also called cyber-physical systems. But despite being already the 4threvolution, Industry 4.0 is the biggest structural change in the past couple of hundred years. It is disrupting every aspect of our lives, of
22 //
What exactly is the Fourth Industrial Revolution?
our economy, in every industry and country. And, due to
The 4th industrial revolution brings the fusion of the
its scale, scope, and complexity, this transformation will
digital, the physical and the virtual world, and is the big-
be unlike anything humankind has experienced before.
gest structural change of the past 250 years. In its scale,
This new paradigm marries advanced production and
scope, and complexity, the transformation will be unlike
operations techniques with smart digital technologies to
anything humankind has ever experienced before. It is
create a digital enterprise that will not only be intercon-
disrupting every industry and economy in every country.
nected and autonomous but can communicate, analyze,
And it fundamentally alters the way we live, work, con-
and use data to drive further intelligent actions back in
sume, trade, invest, and how we relate to one another.
the physical world. It represents the way in which smart
Until now, there have been four industrial revolutions:
and connected technologies can become embedded
»»
The 1st industrial revolution began in Britain in
within organizations, people, and assets, and is marked
the late 18th century, with the invention of mechanical
by the emergence of capabilities such as robotics, ana-
production powered by water and steam.
lytics, artificial intelligence and cognitive technologies,
»»
The 2nd industrial revolution began in America in
nanotechnology, quantum computing, wearables, the
the early 19th century, with the use of electricity and
Internet of Things, additive manufacturing, and ad-
mass production.
vanced materials.
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
What impact does Industry 4.0 actually have in to-
productivity and competitiveness. In essence, the cen-
day’s world?
terpiece of Industry 4.0 are actually the people - not
First of all, Industry 4.0 comes in waves. The fourth in-
technology. Ever since the first caveman shaped a flint,
dustrial revolution works as an evolution that happens
humanity has defined itself by the ability to equip itself
in several stages, or waves (of which you can see some
with tools to manage its environment. The Industry 4.0
in Figure 1, below). Each wave unlocks the paradigm
era will be no different.
shift of the next wave and so on. And there are certain
When compared with previous industrial revolutions,
technological requisites that unlock and enable newer
the 3rd and the 4th revolution have evolved at an ex-
technologies at later stages.
ponential rate rather than a linear pace. When trends
Currently, we have entered the 2nd wave of the 4th in-
collide, disruptions happen fast. In fact, so fast, that the
dustrial revolution, whose main characteristic is that it
tectonic plates of productivity and growth are shifting
radically changes the manufacturing industry. It alters
at a speed that reshapes the competitive and social
the way in which companies are going to operate as
landscape, and redefines the boundaries of prosperity,
well as the relationship between suppliers, customers
trade and values.
and other third parties. There are going to be many
“
more interactions between all those parties.
Are the speed and scale of change increasing?
One of the most relevant advantages is going to be the
As I’ve said before, the 4th industrial revolution brings
amount of data that is being generated, and that can be
the fusion of the digital, physical and virtual world,
used to adapt to changes rapidly, or even to anticipate
into what is called cyber-physical systems. Industry 4.0
these changes. The connected ecosystem that is being
is the biggest structural change in the past 250 years.
built, has many benefits and taking advantage of these
In its scale, scope, and complexity, the transformation
is going to generate a competitive edge.
will be unlike anything humankind has ever experienced before. It is disrupting every industry and econ-
The 4th Industrial Revolution alters every aspect of our lives, economy, how we live, consume, work and relate to one another
omy in every country. In fact, it fundamentally alters the way we live, work, consume, trade, invest, and how we relate to one another. You can see, it affects every corner of our life. The fourth industrial revolution is defining the new boundaries of prosperity, the future of the workplace, and the policies that will lay the foundation for how companies compete and trade in the future. In fact, there are 17 distinct pillars of technology that are
Is there any gap between Industry 4.0 in developed
working simultaneously to bring together the digital,
countries and developing countries?
physical, and virtual worlds.
This is like comparing apples and pears. Anyway, if you
Each of these 17 pillars delivers unparalleled opportu-
really want to compare apples and pears, then the an-
nities for growth and productivity, resetting the com-
swer is “yes”. But the reality is different. Both the G7,
petitive landscape in a scale never seen before with
G20 and developing countries have completely differ-
smart products and new service models. It also creates
ent maturity levels, and different drivers for growth
the next generation of operational excellence, smart
1ST WAVE | 2009-2016
2ND WAVE | 2016-2025
2RD WAVE | 2025...
Digitalization (Internet of Things)
Artificial Intelligence
Quantum Computing
Advanced Analytics
Autonomous Systems
Cybersecurity
Blockchain
Neurotechnology
Smart Automation
Nanotechnology
6G Communications
Bioinformatics
Future of Energy
Advanced Material
Cloud Computing Augmented Reality Robotics 3D Printing
FIGURE 1 // Industry 4.0 arrives in waves of maturity that disrupt everything.
MAY 2019
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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
automation, connectivity and alignment across all of
set is more important than skills (see figure 2, below).
the value chain.
This is not to say that skills are not important anymore.
In a world that is being disrupted faster than ever, the
But the mindset will be our ability to adopt, collabo-
question is not whether you will join in, but how. An
rate and bridge cross-competencies in specialized ar-
age of disruption, as the current one, requires a re-
eas like Quantum Science, Artificial Intelligence and
thinking of the core differentiation. Differentiation is
Pharmaceutical.
what you do, every day, through repeatable activities
“
to serve your customers better than the competition.
What is the main driver for companies to adopt In-
Each successive disruption erodes old industry borders
dustry 4.0?
and creates opportunities. The Industry 4.0 delivers
Actually, each industry has different drivers, but nev-
unparalleled opportunities for growth and productivi-
ertheless they all have the following common three
ty. It resets the competitive landscape which carves the
stages of adoption:
path for new innovations and new ways of thinking.
»»
Increase Operational Excellence (Stage 1): All or-
ganizations who want to stay in business have to per-
The changes we are immersed in have a scale and complexity unlike anything humankind has experienced before
form and deliver. Hence they all focus on Operational Excellence, i.e. productivity, lower risk, quality, cost cutting, effectiveness and efficiency. 70% of all organizations are based on non-core activities like Human Resources, Finance, Procurement etc. This is the area where Industry 4.0 enables higher levels of performance to stay relevant in terms of integration and automation through IoT, Artificial Intelligence, Cloud, Advanced Analytics etc.
What foreseeable impact will the Industry 4.0 tech-
»»
nologies have on employment?
it that you are better than your competitors. In most
Improve Growth (Stage 2): The essence of growth
We are in a global market, where skills, price and
organizations the core competitive competencies con-
competition rule. 35% of the skills demanded for jobs
stitute about 15% of an organization. This is the area
across industries will change by 2020. And at least one
where Industry 4.0 is applied in Smart Supply Chain
in four workers in OECD countries is already reporting
Management, Smart Products, Integrated Ecosystems
a skills mismatch with regards to the skills demanded
(upstream / downstream), Smart Automation, Smart
actually by their current jobs.
Contracts (using Blockchain), etc…
The question is: what will be in high demand in two
»»
to five years? We are moving into an era where mind-
age of disruption, it is necessary to rethink what your
Increase Competitiveness (Stage 3): In the current
core differentiation is. Differentiation is what you do, every day, through repeatable activities to serve your customers better than the competition. This is the true
IN 2015 | QUALIFIED SKILLS
IN 2020 | MINDSET OVER SKILLS
Complex Problem Solving
Complex Problem Solving
Coordinating with others
Critical Thinking
only 5% of an organization. But this is the area where
People Management
Creativity
early adopters apply Industry 4.0 to develop the next
Critical Thinking
People Management
oinformatics, Nanotechnology, or Quantum Technology
Negotiation
Coordinating with others
to name a few.
Quality Control
Emotional Intelligence
Is not adopting the Industry 4.0 paradigm already a
Service Orientation
Judgement and Decision Making
problem for companies?
Judgement and Decision Making
Service Orientation
Active Listening
Negotiation
Creativity
Cognitive Flexibility
FIGURE 2 // Which future competence is more important: Skills or Mindset?
24 //
MAY 2019
competitive advantage. Many talk about it, but few actually do it. This is a rare and difficult discipline to master. It takes months to develop and refine and constitutes
market, service, product or business model such as Bi-
Yes, it is. If you are not adopting the changes, it basically disrupts your operations, business model, partnerships and your ability to stay relevant. And one of the main changes faced during adoption of Industry 4.0 is bridging the gap between strategy, design and delivery.
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
Tomás Martínez Buero President of AI-Network, Artificial Intelligence Professional Association
Tomás has worked in management positions in global technology companies like Intel, and in startups focused on Big Data Analytics and Machine Learning. Since 2000 he has been building teams of engineers and scientists to deliver cutting edge Data Analytics & Artificial Intelligence projects for large corporations. He is currently the President of AI-Network, the Professional Association of Artificial Intelligence, and a professor for Big Data and BI at the NEXT International Business School.
We know AI can do automation better than any human, but what about the creative aspects of human work? This is kind of a philosophical question, but I will try to answer it: an Artificial Intelligence System can be as creative as the creators of that system. Most of human creativity is based or inspired on other human creations, on Nature or on a mysterious force that some call God, “the Muses” or just “chance”. Artificial creativity can only come by other human creations or imitations from Nature, but a machine can’t receive this mysterious force that only humans can… if it actually exists. In any case, Artificial Intelligence systems can create beautiful paintings, catchy music, nice poems, but I doubt they can revolutionize art or literature like Picasso, Mozart or Cervantes. Who is thinking about the ethics aspects of using AI in conjunction or alongside humans? There are many institutions that are working on all the ethical aspects related to AI, and our own Association is among them. At AI-Network we have an ethics working group to advise any company or institution that might request it. Companies and institutions have to be aware of ethical aspects related to privacy, decision making based
MAY 2019
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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
on biases, decisions of machines where several human
But we can dream about how AI is going to make our
lives are at risk, etc. And society will be very sensitive
life easier in 20 years’ time. There are going to be pro-
to all these aspects and will penalize the companies
fessions that will to change or disappear in areas like
and institutions that don’t take this into account, no
transport, mining, construction, health, security, etc.
matter if AI ethics are regulated by Law or not.
More robots and AI systems are going to be much more visible in our daily life, in the same way as we are used
How far are we from Artificial General Intelligence?
currently to cellular phones, tablets, etc., which are
We are very far from achieving what is called Artificial
parts of our lives already.
General Intelligence, but of course, it will be reached.
“
Maybe in 30-50 years. In the meantime, there will be
ML in the industry. Hype or reality for many sectors?
many improvements in what is called specific AI.
It is both, hype and reality. There is hype because there are many executives and managers that are excited
An Artificial Intelligence System can be as creative as the creators of that system
about the new possibilities that open with AI. Or else they believe they have to jump into AI, just because their competitors are doing so. So now there are many proofs of concept, prototypes, and pilots of ML applications, many of them very close to being in production. The reality is, that today there are few applications in production compared with all
Which companies or sectors are adopting AI tech-
the running projects, but the pipeline is very healthy,
nologies faster?
and very soon we will have many of these projects in
The recent rise of Artificial Intelligence – after 2 AI
production.
winters, as they were called – is due to the generation of large amounts of data that fuels Machine Learning
Is there any place AI can’t reach?
algorithms. This way, the sectors and companies that
Of course, AI is not going to be everywhere in our
produce more data, and the insights we can get from
lives. But at work, all the tasks that can be done by a
them, enables us to either increase revenues, save costs
human, will be done by an AI, sooner or later. Anyway,
or create new business models. And that is where AI is
humans are going to invent new tasks that machines
being adopted. The main industries where AI is start-
can’t do… yet.
ing to be applied are Telco, Banking, Insurance, Ener-
Anyway, without self-awareness, it is difficult that ma-
gy and Retail. But, in fact, all sectors are going to be
chine end up doing the same things as we humans do.
impacted because data is being produced everywhere.
And the so much touted “Skynet moment” is very likely to never happen outside the silver screen.
Please give us your opinion on AI and the inherent
Even with Machine Learning it seems unlikely that
job loss.
machines will gain consciousness and, on top of all,
During all of Human History, Technology has destroyed
try to kill us all. The complexity of the human brain
jobs, but at the same time, new ones have been created.
is so enormous, that the best we can currently hope
In the past, there was enough time to have the people
for is to get somewhat near it, by imitating behaviours
adapted to new scenarios, and despite the stress created
or reasoning. More processing power will only further
in the Society, finally, the people, in general, have benefit-
the illusion of artificial life, but probably never really
ed from the use of new technologies.
get to it.
The challenge is to cope with the acceleration of changes. The question is if many people are going to fall behind
Are Androids scarier than faceless AI? If so, why?
because they can’t adapt to these new changes in the job
Well, it seems to me that robots with human appear-
market. How well societies are able to cope with chang-
ance will relate better to humans in many scenarios,
es, generally depends on the Education of the population.
and some people might think that these artificial be-
On the other hand, governments have to start working
ings can “betray” their human “masters”.
on concepts like “basic income” or similar approaches.
In the case of “faceless” AI applications, maybe they don’t seem a threat to humans, but nobody knows how
26 //
Can you envision an AI Society 20 years from now?
people, in general, are going to react. Maybe we will
How would it be?
find out that an intelligent home device, that knows
Being honest, the only thing anyone can envision in 20
everything about us and can sabotage all of our digi-
years is that the world is going to be very different and
tal interactions, is scarier… who knows. Frankly, if we
that there are many social and political forces that will
have to fear anything, it shouldn’t be the AI, it is more
influence our daily life.
likely that threats might come from humans.
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Which do you predict are the next milestones for AI? In the short term, there are going to be more applications of specific IA (no AGI, Artificial General Intelligence) in all industries, related to the use of large amounts of data, in order to get valuable insights. We are going to see more use cases that aren’t Proofs of Concept and are working in real systems, especially to save costs in infrastructures and to personalize the products offered to consumers, just to name some.
“
#DES2019
In the future, robots and AI systems are going to be much more visible in our daily life, in the same way as we are used currently to mobile phones
The conversational assistants will be used in much more interactions with customers and users, and their quality is going to be much higher than it is now. In some cases, they will actually deliver a better customer service than a human assistant may. And just to mention something that many people are talking about: intelligent drones will be widely used for specific use cases like surveillance, agriculture, and product delivery. We are going to get used to them in the medium term. On the other hand, it is almost impossible to predict the long term, because there are so many technologies and social trends involved. Maybe, for example, 20 years from now, in some cities, all the cars will be fully autonomous, but this is just a guess.
The Technological Singularity The theory of “Singularity” says that around 2045 an artificial superintelligence will surpass human intelligence and will “disrupt” Human History. Some technologists believe that, at that moment, the human being will be in danger. Tomás Martínez doesn’t believe that this dystopia will happen, and changes are not going to occur overnight. In fact, he thinks, we all better be worried about global political changes that can provoke social turmoil or about the consequences of global warming. In his opinion, maybe Artificial Intelligence can even save us from these threats.
MAY 2019
// 27
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
David Green Chief Digital Officer for Lynk & Co
We had a chat with David Green, Chief Digital Officer at Lynk & Co, where he is responsible for overseeing the digital transformation for the company’s car products and future mobility solutions. The connected car and the ecosystem around it, is a primary focus of his work at Lynk & Co. Before that, David was responsible for e-commerce, urban mobility concepts for connected and autonomous vehicles, future retail and business innovation at Volvo Cars.
and the strategic partnership with Microsoft, which led to a number of ‘firsts’ such as the HoloLens Augmented Reality Retail Experience”. / F U L LY A U T O M A T E D C A R S Everybody is expecting that, at some point in the near future, self-driving cars are going to be something common, but the question is how far are we actually from really self-driving cars on a real street, surrounded by real people and other drivers? And we mean real Level 5 cars (fully automated, with no human intervention
28 //
Mr. Green, you are a self-confessed ‘tech geek’ and digi-
whatsoever). “Well, the technology is viable today. But,
tal innovator and at Lynk & Co you have the opportuni-
as I said before, it is contextual. Having Level 5 cars in all
ty of living a time where the worlds of automotive and
scenarios and conditions… not yet. And possibly not for
consumer electronics are coming together. “Yes, I was
a long time. Anyway, those types of cars for limited are-
lured by an insatiable quest to challenge the norm and
as and in limited conditions…is something possible. The
change how the world perceives and uses mobility and
technology is already there”.
so I found my footing at Lynk & Co. Before this, I was at
Yes, but, what about the decision mechanisms you have
Volvo Cars and some of my achievements at Volvo include
to implement in the cars, to react to the outside world?
a patented digital key solution, the introduction of the ‘In-
Are they advanced enough, in case of an accident, to
Car Delivery’ service, a ‘Peer to Peer’ car sharing concept
make the proper decisions when life and death are on
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
the line? “I (controversially) suspect that the decision
So who is showing the way nowadays regarding technol-
scenario is a red herring. The real objective is probably
ogy? Maybe Tesla? Or possibly Google? “It is a close race.
to be fail safe. Not to aim to build in value judgement. A
I am not sure anyone knows who is in the lead on any one
“car” made out of light materials, foam rubber, limited to
day. It may come down to who can gather the most data
20 Km/h and only operational in good weather might be
and there may be a radical innovative breakthrough. But
expected only to cause injury in exceptional circumstanc-
they also are not the only teams in the game”.
es. Presumably it is not possible to prevent all fatalities,
“
but getting to “nearly” is a truly massive improvement”.
/ T H E W AY T O T H E F U T U R E Imagine a couple of years from now. What could the
Self-driving cars without Machine Learning are not going to happen
economic impact of hordes of self-driving cars be? “Actually huge. They could radically change multiple industries and individuals as effects knock on. For example in manufacturing capacity, the service and maintenance, aftermarket, parking, petrochemical, and insurance, not to forget the professional drivers“. Do you see the self-driving technologies ending up in other types of
/ TECHNOLOGICAL EVOLUTION
vehicles? “This seems something inevitable…potentially
Many car companies, like Mercedes and VAG, are push-
before cars. Some examples could be farm and construc-
ing the “Connected Car” paradigm forwards. Is this ac-
tion machinery, the logistics sector, public transport, or
tually absolutely necessary to increase the overall “in-
even haulage”.
telligence” of the individual cars? “I believe connectivity
Let’s imagine the following scenario: Transportation
is a supporting feature… but the systems cannot rely on
2030. Please take a guess… “After a rapid transforma-
it for live processing for a very long time to come. There
tion starting in China, many major cities around the
is always a chance of latency or failure”. Talking of that,
world exclude wet-tech vehicles and instead provide cit-
how will 5G mobile technology affect self-driving cars, if
izens and visitors with integrated, efficient, green mobil-
at all? “Well, 5G will improve efficiency, speed up the time
ity solutions. Urban congestion and road deaths are a
to market and open up enhanced features for the cars”.
thing of the past replaced by frustration with occasional
Ok, so which are the technologies that need the most
service outages. Urban spaces given to parking are now
enhancement to get a really self-driving car? “I would
repurposed. Whilst people inevitably complain about
say sensors and processors but, primarily, advanced Ma-
rising charges, the total cost of mobility has dramati-
chine Learning”. And what is the exact role of Machine
cally reduced for everyone and therefore the standard of
Learning in self-driving cars then? “It is critical. We can-
living in multiple ways has significantly improved. Envi-
not create an algorithm for a task as complex as driving
ronment, mobility, sustainability, economic growth and
in the real world without having the systems learning on
personal wealth have all improved for anyone not still
their own”.
impacted by the collapse of multiple seemingly well-established industries”. / I N N O VA T I O N I S T H E D R I V E R If safety is the synonym for Volvo what would be that synonym be for Lynk & Co and why? “Sustainable Mobility. That is our mission”. You are doing some quite
The self-driving car hype
revolutionary things when it comes to the auto industry. How does business technology contribute to your mission of changing the mobility landscape? “It is our foundation and framework, it supports everything we
Self-driving cars are one of the hot topics of the moment. Besides the hype, is
do and drives our capability to effect change. What we
there really something for an everyday use? “Yes, absolutely. But it is down to
call “technology” changes over time. Once upon a time,
the context. For example, some applications of self-driving cars could be the
a stick was high tech, then it became a spear and then a
finished vehicles leaving the factory to the yard and onto a ship. Or else on
bow. Innovation drives change and the pace of change
Parking lots, where cars could go and park themselves, as well as come back
is increasing exponentially. We are not focused on
on their own. Urban transportation would be another possibility. On the other
creating new technology, we instead focus on gaining
hand, rural self-driving cars are probably a long way off, due to the added
advantage from proven capabilities innovating and it-
difficulties rural roads provide.”
erating. However, most importantly we try to ensure that we always put the customer first and not the technology”.
MAY 2019
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#DES2019
Technology at the Boardroom
Antonio Crespo
Shifting Corporate governance towards a more digital focus
Managing Partner
QUINT
quintgroup.com
“
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
There are certain business practices whose signifi-
as opposed to business management - Chief Informa-
cance is directly linked to the responsible entity. IT
tion Officers and CxO’s in general -. The thin line that
Governance is a ripe concept, content wise. But it is
separates governance from management is somewhat
remarkably immature in its practice. It highlights the
vague from the perspective of the “what”, but the real
importance of aligning IT structures, processes and
difference lies in the “who”. In today’s world, the im-
relational mechanisms with the business objectives.
portance acquired by technology and its business im-
So far, so good. The problem arises when we forget
pact is contributing to an increasing role of the digital
an essential point. Accountability for IT governance
agenda in the boardroom.
relies on the governing body - Boards of Directors -,
A lack of awareness in this field by the Board of Directors and its renovation dynamics make it difficult to address IT governance effectively. In the ninth edition of
The thin line that separates governance from management is somewhat vague from the perspective of the “what”, but the real difference lies in the “who” DIGITAL STRATEGY
the PwC report on Corporate Governance (Spain, 2018), two out of the three objectives that would demand more dedication from the Board are the digital strategy, as well as cybersecurity and technological risks. Nevertheless, when it comes to the most valued experience and knowledge, digital aspects scarcely arise in the seventh place, with just 29% of the respondents. There is a clear mismatch between the objectives to be addressed and
28%
TALENT MANAGEMENT
48% 59%
24%
CYBERSECURITY AND TECHNOLOGICAL RISKS
22%
STRATEGY PLANNING
20%
SUCCESSION PLANNING
25% 17%
56%
22%
44%
37% 61%
17%
22%
ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
12%
REPUTATION
12%
ADMINISTRATORS’ CRIMINAL / BANKRUPTCY RESPONSIBILITY
12%
COMPETITION
10%
51%
39%
RISK MANAGEMENT
10%
46%
44%
BOARD AND COMPANY DIVERSITY
10%
DIRECTORS’ TRAINING
7%
CRISIS MANAGEMENT
7%
BOARD’S PERFORMANCE 5% FISCAL STRATEGY 2%
61%
27%
44%
44%
27%
61%
33%
58%
46%
46%
29%
63%
27%
68%
39%
MUCH MORE TIME
59%
SOME MORE TIME
FIGURE 1 // Which areas, functions or aspects would require more time to be addressed by Corporate Governance? SOURCE: PRICEWATERHOUSECOOPERS, NOVEMBER 2018
30 //
MAY 2019
NO CHANGES
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
STRATEGY
71% 60%
FINANCE 55%
INDUSTRY KNOWLEDGE 43%
INTERNATIONAL CORPORATE GOVERNANCE
36%
AUDIT AND RISK MANAGEMENT
36%
DIGITAL / IT / CYBERSECURITY
29%
LEGAL AND TAXES
19%
OPERATIONS CORPORATE SOCIAL RESPONSIBILITY
14% 10%
FIGURE 2 // Which knowledge and experience are the most valued for directors? SOURCE: PRICEWATERHOUSECOOPERS, NOVEMBER 2018
“
the most valued profiles... Each of us can make our own
unlocking user files. Big organizations like Telefónica,
judgements.
the Spanish multinational telecommunications giant,
In public companies, the increasing influence of institu-
were deeply impacted. This episode, together with the
tional investors, the recent legislation and the Corporate
increasing risks derived from disruptions, have marked
Governance Codes are accelerating a necessary board
a turning point in the consideration of these matters by
refreshment. In Spain, the Capital Companies Law was
the boardroom. Business continuity risks and the direct
amended by the end of 2014 to improve enterprise-wide
impact in companies’ bottom line have raised technolo-
corporate governance. It defined a list of non-delegable
gy to a primary role.
powers for Boards of Directors in public companies.
The banking industry is possibly the most advanced in
Crucial among these is the business strategy. Therefore,
this respect. The two major Spanish financial institu-
if we believe that technology is strategic nowadays,
tions, Santander and BBVA, have specialized commit-
governance bodies must strengthen their digital compe-
tees - under their Boards of Directors - for the digital
tences and knowledge.
topics - Innovation & Technology Committee and Technology & Cybersecurity Committee, respectively -. Both
Business continuity risks and the direct impact in companies’ bottom lines have raised technology to a primary role
committees are chaired by the Group Chairman, reflecting how IT is empowered to the highest level. Nevertheless, the way ahead is certainly long and not free of difficulties. Digitization is still a new subject, and we might need a generational change in the boardroom to allow it for a greater role and visibility for it. Many companies have already started this journey by adding independent non-executive directors with the necessary profile. This trend has just begun and will be con-
In the international context, the Sarbanes-Oxley Act
solidated over the next coming years. Those companies
(2002) enacted in the US requires public companies to
advocating for strengthening their digital competences
establish adequate internal controls over financial re-
in their Boards will be much better qualified to define
porting. European organizations based in the US have
and govern successful strategies and provide maximum
adopted these practices, thereby contributing to its in-
value to their shareholders in this change of era.
fluence overseas. Companies that are required to meet SOX compliance regulations must have robust IT security, logging and backup systems. In 2017, Spain was one of the first countries affected by the WannaCry cyberattack that froze up computers across the planet and asked for money in return for
MAY 2019
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#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Leading the rise in Virtual 3D Interactive Events Virtway Events
Several trends are transforming the B2B business, and
/ MAIN BENEFITS OF INTERACTIVE 3D
companies must innovate to position themselves and
VIRTUAL EVENTS
to maintain their customer satisfaction, using techno-
Thanks to this technology, business people, employees
logical advances. Gamification, for example, makes
and customers can meet in a virtual space allowing an
relationships more dynamic and encourages network-
almost real interaction between them. It is undeniable
ing. And this technology allows you to organize online
that the integration of virtual events in a company’s
events where participants interact in the most similar
business plan offers numerous advantages. And here
way to the possible reality: Virtual 3D Worlds technol-
are some of the most important ones:
ogy, applied to the business world.
»»
Thanks to its interactive 3D technology from the world
source. These virtual events represent an enormous
of simulations, each person controls an avatar that al-
cost saving both for the organizer and for the partici-
lows them to move freely, talk with other users using
pants, not only because of travel and overnight stay ex-
their microphone and even participate in fun interac-
penses, but also because of the cost of building a stand
tions turning the encounter into a simple, friendly and
and the people taking care of it. As the organizational
really efficient experience. It is what we could call the
expenses decrease, your profit margin increases.
‘virtual transformation’.
»»
This new style of events is designed to complement
ber of visitors. Events can be launched globally at an
the face-to-face sessions, becoming an important help
unprecedented speed and reach an international au-
when it comes to increasing the impact among the pub-
dience. Given their low cost, these actions can even be
lic and improving engagement. In this way, it is possi-
carried out several times a year, to try and maintain the
ble to extend a physical event to the online world in
loyalty of a specific public as well as strengthen the or-
order to reach a greater number of attendees.
ganic growth.
José Antonio Tejedor CEO
V I R T W AY
virtway.com
32 //
MAY 2019
Significant cost savings as well as an income
Increase of the geographical area and the num-
#DES2019
A new generation of interactive 3D virtual worlds has been born that allows to connect hundreds of people simultaneously, from any device, interacting with voice and movement in real time. And Virtway positions this technology as the present and future of
»»
Carbon footprint reduction. The infrastructure
savings not only affect the organizer’s pocket, but also generate a more than positive impact on society and the environment. Bringing together so many people from different places in the same space, in addition to the effort it involves, produces a large carbon footprint, raising pollution. In Spain alone, the average carbon dioxide (CO2) emissions of vehicles increased in 2018 by
online events.
1.82% according to MSI data. Thus, the virtualization of events and congresses eliminates the environmental impact and is a new way for »»
*
Efficiency: networking and proximity to brands.
companies to contribute a little to the battle for the pres-
These events are more than just videos or online confer-
ervation of the environment.
ences. They are a networking platform, where attend-
Increasingly, companies have become more aware of
ees can interact with each other and with brand manag-
the problems that the society faces regarding pollution
ers to create relationships and alliances as efficiently as
of the environment. And eliminating the carbon foot-
in a in-person event.
print of their events, through their virtualization, has benefits for everyone.
3D interactive virtual events help reducing exhibition costs, eliminating travel and geographical barriers
Using this type of technology can provide a clear competitive advantage, since the real added value is provided by the event organizer thanks to his knowhow and experience. The technology enhances the organizers’ creativity by allowing them to go beyond the limits of the real world, which can be a real advantage for achieving the goals the customer who hires the event wants to accomplish.
»»
Accurate big data. An essential factor after an event
/ S U C C E S S S T O R Y: ‘ I I N T E R N AT I O N A L
is the ability to analyze the gathered data with the great-
TA L E N T F O R U M ’
est precision. Apart from the attendance registers, the
3D virtual trade-shows represent a totally accessible
important thing is to know our audience, and here the
and easy to manage solution: its operation is the clos-
metrics and participation are fully controlled: this virtual
est thing to a face-to-face exhibition. The participating
technology is an ally for the companies, offering them the
companies have a stand that is personalized with their
most accurate data possible about their audience.
corporate brand. And in it, its commercial or market-
MAY 2019
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#DES2019
ing staff can tend to visitors the moment they require
the audience, the networking spaces and the workshop
it, promoting brand products and/or services. They are
rooms.
also able to organize talks or lectures for hundreds of
The International Talent Forum 2018 has demonstrat-
people, as well as networking sessions, product show-
ed the success this type of event can have: virtual fairs
rooms, etc.
allow the experience to be more pleasant and relevant,
In the same way that it happens in a face-to-face trade-
and also help organizers and visitors achieve their ob-
show, the visitors can access the different pavilions, vis-
jectives, creating a more satisfying engagement.
it their stands and speak with their own voice through
*
avatars with the rest of the attendees or sponsors. Virtway Events, a pioneering Virtway product in the creation of interactive 3D virtual platforms for events, has an extensive experience in the 3D virtual world. Its first online fair, the International Talent Forum 2018, showed all the advantages and possibilities offered by an event of this type.
Virtualizing events reduces the carbon footprint, and has a greater profitability and comfort for organizers
From May 7th to 10th, 2018, Virtway Events organized the first edition of the International Talent Forum; a 3D virtual fair where the attendees could go without
/ OTHER POSSIBILITIES
actually leaving home. They just needed an Internet
As is the case for many technological evolutions, the
connection and a link to the Virtway Events platform.
technology for virtual events can be applied to a se-
This event was aimed at Spanish-speaking people in-
ries of other scenarios in a quite fitting way. These are
terested in job search, entrepreneurs and those who
some of the opportunities that open up with it:
were eager to learn. There were accelerators and in-
»»
cubators such as Wayra, Ances, Everis and Accenture.
evolution of virtual worlds to connect and facilitate
They presented a selection of start-ups, and gave the
interaction allows to take Speed Networking to a
entrepreneurs the opportunity to show their projects
whole new level: Online Speed Networking or Virtual
looking for financing.
Speed Networking, which is a remote format that al-
This innovative forum had 3,960 visitors, 54% of which
lows you to enjoy the advantages of speed dating for
came from Spain and the rest from Peru, Argentina,
businessmen without having to leave the office. It al-
Uruguay, Colombia and Mexico, and they stayed con-
lows to expand the target audience and reduce travel
nected an average of 43 minutes. The 3D fair had more
and logistics costs without detracting from the expe-
than 44 stands distributed in two areas. The program
rience itself.
had a great variety and was very complete throughout
The Virtway interactive 3D space allows the creation
the 4 days, with a total of 53 lectures distributed among
of a “dating” area for different companies, distributing
34 //
MAY 2019
Speed Networking Sessions. The tremendous
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
the space in an intuitive way, similar to a real event,
/ T H E W AY T O G O
and with the advantage of giving more prominence
Virtual Events aren’t entirely here to replace face-to-
to the brands. With its cutting-edge technology (Voice
face events, at least not for now. But they serve as an
over IP, 3D Audio, Multimedia content ...) it allows a
enormous complement to them. Their advantages are
whole range of formats and ensures smooth communi-
clear, and they open up a whole new range of mar-
cations, without delays or cuts.
keting and promotion possibilities, with the delivery
»»
Beyond webinars. The use of 3D audio to position
of new media types and completely personalized ex-
sounds anywhere in the event, the ability to project
periences. This is something that was impossible in
your presentations and a live voice transmission are
the past with existing online technology. And in the
some of the features that will make the experience tru-
end, this may be the convincing argument for many to
ly unique to your audience. In addition, you will have
make the adjustments for Virtual Events.
the ability to access a complete set of metrics that will
*
allow you to draw conclusions based on user behavior. »»
Team Building Activities. One of the most innova-
tive ideas for this online platform is to use interactive 3D avatars, which simulate each of the remote workers and also those responsible for the activities aimed at training these teams. Virtway Events has developed a very advanced technol-
#DES2019
The technology for virtual 3D events applied to the world of virtual networking offers enormous potential
ogy to offer stimulating experiences to remote workers in a virtual world. Thus, they can attend numerous group activities related to virtual training, from games and Escape Rooms to conferences or meetings. »»
Employee Training. We have a specific scenario
for employee training. This allows companies as well as employees to access a quality training without having to travel to a specific site, which saves a lot of time and money (since there is no room to rent, no travel expenses nor time lost for travelling). All kinds of activities where the participants have a guide can be created, and they have to follow the guidelines while the activity is in progress. Once this activity ends, the trainer has a large number of metrics at his/her disposal, in which he/she can see who has answered all the questions correctly, how long it took to do it, with whom the person has spoken, if the person has visited all the required scenarios, and lots of additional data.
What makes Virtway’s technology unique? Virtway’s advanced 3D technology is pioneer in the world of online events, leading the way for this new generation of virtual activities. Beyond the benefits and success stories, Virtway has many unique characteristics making it the most advanced virtual 3D event technology on the market. Their virtual platform can be accessed by anyone from anywhere in the world with an internet connection and is the only one on the market that can be directly accessed from mobile devices. Additionally, event participants can connect via their personal tablets and computers. There is no need for additional hardware or expensive VR headsets to access their virtual events. Virtway’s virtual world is equipped with 3D audio and avatars that communicate in real-time with Voice over IP making it more life-like than ever. Conversations take place in individual or group settings in the exact moment, no need to click to connect. The technology allows for large events, networking activities, group safety training and virtually any real space or scenario to be recreated in the virtual world. To top it all off, Virtway technology is the only one that counts with secured proxies and firewalls to provide top levels of security and privacy within companies. The sky’s the limit thanks to this unique and advanced 3D technology.
MAY 2019
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#DES2019
Juan Francisco García Strategy & Business Development Manager at Grupo CMC
“Technology exists, it is among us. The idea, however, is to “package it” and create specific solutions that allow its application in certain industries or specific business cases”. For Juan Francisco García, Strategy & Business Development Manager at Grupo CMC, technology - and especially data - is a means to optimize processes and operations and to offer
group has and turn them into solutions capable of solving specific business cases for our customers”. / T H E I M P O R TA N C E O F D ATA Nowadays, data is something fundamental in any business process and it’s vital to use it and activate it in order to learn from the past and understand -and capture- what is happening, in order to improve decision making. These capabilities are exploited thanks to the EAP platform, an analytical portal that integrates indicators, KPIs or dashboards, geomarketing (overlapping influence areas, population control for
real value to Business.
the market, etc.), as well as behavior patterns analysis algorithms. “This allows us to discover trends, make predictions and
36 //
Juan Francisco García is a fervent defender of data,
simulate the future to decide what actions should be im-
which he calls “the oil of the 21st century”. He has
plemented. Through Machine Learning techniques and
over twenty years of experience in the analytics field.
information history, algorithms are learning to be able
In fact, he has founded several startups specialized in
to prescribe the new actions to be developed”.
this field; the last one was DatKnoSys (Data Knowledge
Now, artificial intelligence is allowing us to bring that
Systems), which joined CMC Group two years ago and
context to a scenario closer to the way people speak,
enabled this company to be provided with the EAP an-
think and act through the interpretation of natural
alytical platform (Enterprise Analytical Portal).
language or voice, the text analysis (contracts, claims,
Apart from his role as Manager for Analytics and
social networks ...). This allows, through a chatbot, to
Big Data, Juan Francisco is responsible for business
interact directly with end users, in a portal or a call
development and the group’s strategy. “My goal is to
center, answering questions or receiving and launch-
integrate the different technological solutions that the
ing requests for services.
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
“We seek to know what happens in the company, through
tourism. In all of them we always have large volumes
current and historical data, which will allow us to make
of data, and many users who are interacting with the
decisions or find out trends. But, in addition, we can com-
company and whose behavior we should analyze with
plete it with all kinds of unstructured data to feed the al-
two objectives: to offer a better and more personalized
gorithms and improve them”.
service, and be more efficient optimizing all operations”.
If we translate all of this into specific cases, we are talking about optimizing the most frequent operations in a call center. The use of artificial intelligence allows us to understand the incidents, catalog them and give a quick and accurate response to the user. All this, using natural language to interact with the client and acting on traditional systems to capture information about their
“
profile and to fully customize the response.
#DES2019
It is all about helping the company improve their results by optimizing internal processes and costs
“In the end, it’s about helping the company improve the results, increasing its profit by optimizing its internal processes and costs, and improving its positioning in the
Although the adoption of analytics and decision mak-
market”.
ing based on the data is progressing, there is still a long way to go. Providers have a big say in this. They must
/ LEARN, IN ORDER TO OPTIMIZE
be able to adapt these solutions to each company so
What we needed is to learn from what we are already
that they really have an impact on the bottom line.
doing in order to optimize -processes, time and costs-
They should also help them improve their service, op-
and, at the same time, enrich our systems with infor-
timize their operations, as well as better understand
mation that allows us to make better decisions. That is
their customers, offering them the right products and
the way of the data driven company.
services portfolio, as fast as possible.
As an example, Juan Francisco tells us about one of his
One way to speed up the adoption of this type of tech-
solutions, which is based on social networks analytics.
nology is giving companies access to different formu-
Traditional social network analytics seeks to under-
las such as, for example, pay-per-use. “We try to make
stand the reputation of companies or their stakehold-
that the acquisition barrier is not an economic one, so
ers. Through this tool, social networks are used as a
that the companies can use artificial intelligence tech-
source of online learning, which can complement the
nologies via a pay-per-use model. They don’t need to
analysis made by a purchasing or financial department
buy the technology, but just pay for its use and benefit
regarding the risk scoring of a client or supplier (busi-
from it”.
ness registers, tax payments, etc.). “But if the company has implemented an ERE (a major employee dismissal), is related to a corruption case, has debt claims or any other problem that may be relevant, that immediately goes to social networks, websites and blogs”. This tool collects information in real time and is able
Smart mirrors
to determine the type of risk to which the company is exposed (financial, human resources, reputation, CSR
Grupo CMC has invested in the Jogotech company, which has developed
...). And all of this information complements the most
intelligent mirrors that allow to customize the buying experience. They are
traditional financial risk studies, assigning certain
already installed at stores of various Inditex brands, at Adidas or at H&M. The
weights to each factor.
user interacts with the mirror, can get information about other sizes or colors
“Data analytics applies to everything, to IoT, security ...
available at the store, or get recommendations on other items that combine
each of the projects we do are recording data that, prop-
with what is being tried on.
erly related, has an incredible value”.
The salesperson receives the alerts through a smartwatch, and can then bring certain clothes to the changing room according to the specifications that
/ INDUSTRIES AND SECTORS
the mirror has selected. Finally, it is possible to make the purchase from the
All of the above applies to all types of companies and
mirror itself using any payment gateway. This solution allows improving the
sectors, although it is usually companies with large in-
customer experience at the point where the purchase decision is made (the
formation volumes - typically B2C - that need the most
changing room), and can capture all kinds of information regarding the process,
being successful in their decisions and strategy, in or-
in order to continue improving the experience and the products offered to the
der to develop their business properly.
customer.
“We work in all types of industries and sectors: banking, insurance, manufacturing, telco, automotive, retail or
MAY 2019
// 37
#DES2019
Sensorization at the BBVA “Sail” building This is an iconic building in Madrid, which we have equipped with intelligence,
ing sensors to the buildings in order to get information
installing nearly 120,000 sensors that allow us to monitor everything that is
about how many occupants are there right now, the
happening, as well as adapt certain parameters according to dates, preferences,
consumption of energy or water, the temperature, au-
sustainability... Apart from this, it also allows employees to reserve parking
tomating the management based on all this information
spaces in an automated fashion through a mobile application. These same
-internal and external- so that they are able to self-reg-
technologies allow identifying the available spaces and guide employees to the
ulate and achieve greater energy efficiencies to make
appropriate spot when rotating job policies are applied.
them more sustainable. “The information returned by the sensors allows us to
“
learn from different situations and take the next step towards predictive sensorization. For example, the building
Each one of our projects is recording data that, combined in an appropriate way, has an immense value
could be capable of switching on a light because it knows that there is a meeting scheduled in a certain room and it is getting dark”. This can also be applied at home or in the hospitality sector (Smart Home and Smart Room), for an automated and customized lighting and temperature management, playing music or offer certain TV channels, etc. / SECURITY
38 //
/ A N A LY T I C S A N D I O T
Obviously, security is a fundamental aspect. At CMC
IoT is a particularly favorable scenario for applying
Group we have a security division with three main
analytics. For example, CMC Group is using it in areas
lines. One is Identity and Access Security to ensure that
such as Industry 4.0: like plant automation and indus-
whoever accesses a system - or a physical or digital en-
trial processes, photovoltaic fields or simply in supply
vironment - is who they say they are, and we can be
chains and manufacturing.
able to know their access rights or trust relationships
Another of its applications are intelligent buildings, or
through federated identity management for collabora-
a BMS (Building Management System). It’s about add-
tors and customers.
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
“
#DES2019
For this, we have a solution (Prot-On) that allows mask-
These intelligent SIEMs learn all these patterns and, if
ing and encrypting information to protect files, access
they detect certain accesses, quickly warn or block the
and activities both inside and outside of the organiza-
process, or start a programmed action.
tion. “You can decide who can access which documents,
“They are intelligent in the sense that they act before
even if they have been forwarded to third parties, and
the problem occurs, preventively, and they warn of what
you can define expiration dates or prevent anyone from
may be happening. It is the company that decides the
accessing information in the case of theft or loss of de-
type of actions that can be carried out in each case”.
vices with sensitive information”.
Finally, there are the ethical hacking services. These are professionals who apply different types of tech-
The acquisition barrier should not be an economical one, because AI technologies can be used in a pay-per-use model
niques through which they perform vulnerability audits in companies. With the relevant permissions and authorizations, they try and simulate attacks on companies (websites, systems access, etc.) to discover possible vulnerabilities at the different points of access. And they correct them before an external hacker can take advantage of them. “Coincidentally, at #DES2019 we are going to have a presentation of ethical hacking cases. The person in
Another of the solutions is everything related to cyberat-
charge of this at Grupo CMC is going to show a series
tacks, access to networks -including industrial networks-,
of devices that allow cloning cards or identification de-
attacks on devices or the exploitation of vulnerabilities
vices, as well as stealing internal information simply by
in systems, websites, passwords, and so on. In this area
connecting the mobile to the computer via an USB ca-
it is important to highlight its intelligent SIEM (Security
ble”.
Information and Event Management) solutions. Traditional SIEMs allow you to correlate logs to analyze who is accessing what, when, and so on. These access logs should be monitored regularly to know what is happening. But, currently, the sheer volume of these accesses makes an adequate analysis of all this activity
“
impossible.
At #DES2019 there is going to be a presentation about ethical hacking cases “Here we are applying artificial intelligence. This new generation of intelligent SIEM learns from the attacks the company has suffered before, or those of other companies, accessing logs that are available through open source community databases. This allows you to detect improper access patterns or learn about attacks that could occur in your company”.
Descriptive, predictive and prescriptive Analytics CMC BigData
MAY 2019
// 39
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Social Factory, the talking factory
Instant messaging and corporate social networks, Factory 4.0’s new allies
The manufacturing plants where we create the products and other goods that make our society’s daily life possible, are subject to a constant evolution. In the era of the Fourth Industrial Revolution connectivity, automation and intelligence define the operation of those factories, in which, thanks to Social Business technology, everything, including people, machines, robots, systems and processes, maintains a constant
Technologies that were born decades ago, like automation, Artificial Intelligence or industrial robots, have a notable presence in the so-called smart factories, which are the main actors of Industry 4.0 and the result of the Fourth Industrial Revolution. This concept, coined by the German economist and businessman, Klaus Martin Schwab, arises from the convergence of the physical, digital and biological worlds, and is impacting directly one of the fundamental pillars of societal development: the manufacturing activity. As it is the case for Smart Cities, the leading factories distinguish themselves by their capacity for self-diagnosis and self-management. In addition, and thanks to the advanced management of the data they get from their own operations, they can have just-in-time manufacturing and are able to make decisions in an inde-
dialogue.
pendent way, so to either avoid or else give an agile and effective response to any incident that may be translated into a loss of quality or productivity, or an increase in costs, both of which are the two main enemies of profitability.
40 //
MAY 2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Óscar Pierre Presidente y CEO
AGGITY
aggity.com
#DES2019
/ SOCIAL MES, EXTENDED GOVERNANCE
As a communication network that allows the connec-
Experts agree when they say that the technologies asso-
tion and communication of “things” with other ele-
ciated to Industry 4.0 allow a reduction of downtime by
ments in the network, albeit human or physical, IoT is
45% and at the same time increase production capacity
one of the pillars of Industry 4.0 and the main thread of
by about 25%. But enjoying these potential improve-
a conversation that, thanks to Social Business technolo-
ments requires always a correct government that, in
gy, expands its reach and acquires a ubiquitous nature.
manufacturing environments, relies on MES (Manufac-
Thanks to the power of instant messaging and corporate
turing Execution Systems). They are in charge of moni-
social networks, Social MES transfers the continuous
toring, controlling and documenting each and every one
factory dialogue to a friendlier environment, that is easy
of the different processes that make the transformation
to use and essentially collaborative. In the Social MES
of raw materials into finished products, a reality.
world, factory directors, production managers, quality
From their earliest origins, MES systems have been best
and maintenance managers, as well as technicians and
allies in the proper working of factories in a multitude
operators communicate with machines, robots and pro-
of sectors, ranging from food and beverages production
cesses, as do systems, in the form of chatbots.
to the pharmaceutical industry, through the automotive
The result is, essentially, more intelligent, more agile
industry, the manufacturing of equipment goods, etc.
and efficient and with greater flexibility to adapt to the
Those industries are subject to highly demanding reg-
acceleration of the innovation cycles in product devel-
ulations regarding the control and documentation of
opment and to the increasing variation of market de-
events, actions and processes.
mands. In the same way, in this new stage, the factory
A factory’s MES systems constitute the link between the
can increase its capacity, in order to be ahead of any
operational systems and the information systems and
possible incident that may affect any part of it, from sup-
are located, specifically, at a level 3, between the level 4
ply to quality control. In addition, based on the analysis
of ERP systems and levels 0, 1 and 2, corresponding to
of its operations history and based on different possible
process control. From this place, the MES systems inter-
scenarios, the factory gets a vital ability: the possibility
vene in four essential areas: production, quality, logis-
of advanced planning.
tics and maintenance - where, as the executive arm of
*
the ERP systems, they provide control and intelligence.
/ SOCIAL KNOWLEDGE IS KEY
Over time and simultaneous to the advance of auto-
In the same way that shared knowledge is one of the
mation, sensorization and robotics, MES systems have
keys to the success of any human enterprise, it is also
continued to evolve and, in parallel with the sociali-
essential to achieve excellence in manufacturing. Shar-
zation that is taking place in the information systems
ing knowledge implies an advanced data management,
environment, they have obtained new capabilities that
as well as an easy access to it by each and every one of
add to its current abilities the dialogue between people,
the elements in the chain, whether be they human or
machines, robots, systems and processes.
not. The Social MES systems allows sharing that knowledge in relation to what is expected to happen and what
MES systems integrate new capacities to add dialogue between people, machines, robots and systems
really happens throughout each and every one of the production cycle processes. Social MES is, in short, the instant messaging and the corporate social network of 4.0 Factories, and the new paradigm of Industry 4.0. It is the backbone of factory operations and, therefore, essential to guarantee the almost instantaneous adaptability of manufacturing plants to fluctuations and variations in market demand or other factors (availability of raw materials, new la-
/ S M A R T A N D S O C I A L FA C T O R I E S
beling requirements, etc.). It also ensures end-to-end
The new generation of Social MES systems incorporates
traceability that guarantees excellence, both for regula-
a layer of Social Business technology that, in the form
tory compliance and for customer service.
of instant messaging applications and corporate social networks, allows the dialogue that makes it possible for factories, to not only be smart, but social, thus multiplying their intelligence. This progress is the result, on one hand, of the growing communication capabilities of machines, robots and all kinds of sensor objects through the Internet of Things (IoT) and, on the other, the growth of Social Business technology.
MAY 2019
// 41
#DES2019
Ferran Serrano
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Digitization for a better future T-Systems new digitization strategies for businesses
Marketing and Communications Director
Growing concerns worldwide about issues such as eco-
that will set out both the way forward and the sustaina-
nomic sustainability, integrating and developing dif-
ble development for the coming years.
T- S Y S T E M S
ferent regions and protecting the environment make it
This list of pending tasks makes an open discussion be-
clear, on the verge of the 2020 frontier set by the Euro-
tween the main social actors— institutions, companies
pean Union almost a decade ago, that many tasks and
and citizens—to set out the vision of the Europe we
challenges remain for our continent to fulfil the strat-
want and how we want to build it more essential than
egy’s main goals. Europe needs to improve its competi-
ever. As part of this debate, we also need to determine
tiveness, make its economic model more flexible, invest
the role that innovation and technology should play.
in sustainable growth and encourage institutions, com-
This is an unquestionable opportunity for the ICT sector
panies and citizens to act together to create a roadmap
to show the potential of technology to build sustaina-
t-systems.com
ble and environmentally friendly economic and social
The sustainability challenges being faced by society today bring about the urgent need for an open discussion between institutions, companies and society about the economic and social model we wish to foster. As part of this debate, we will also have to define the role technology must play in helping us build the sustainable future we want. 42 //
MAY 2019
models. / A S U S TA I N A B L E E U R O P E The need to overhaul the socio-economic model that currently prevails worldwide has led the European Union to create a new strategy called Project Europe 2030, which is based on the 17 Sustainable Development Goals (SDGs) published by the United Nations in 2015. The project’s aim is to promote a framework for action that will allow for coordinating institutional, business and citizen strength to promote and achieve truly intelligent, sustainable and integrating growth, which will also be applied to three different areas: economy, society and the environment.
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
#DES2019
The Sustainable Development Goals are the foundation
specific benefits for the user and the context in which
on which to construct a debate as they counterbalance
we are driving.
these three fields within five different areas of action
For instance, applying connectivity technologies com-
that are considered to be essential to achieving a sus-
bined with IoT means the car can transmit information
tainable and egalitarian society. These areas are: human
about location, conditions and use, which leads to in-
dignity, regional and global stability, a healthy planet,
creased security for users. In the case of public transport,
fair and resilient societies and prosperous economies.
for instance, this means municipal vehicle traffic can be
Even though it could be said that technology does not
regulated more efficiently, thus leading to energy and
have much of a role to play in many of these aspects, in
time savings. It will also lead to autonomous driving in
actual fact, we already have examples where applying
the future. Cloud Computing technologies also come into
technology has led to the implementation of projects
play, compiling the information transmitted by those
that have improved the lives of citizens with special
connected cars and storing them so Artificial Intelligence
attention paid to the environmental aspect, or the de-
technologies can process the data and extract or establish
velopment of business models that make the economic
relationships that our own brains would be incapable of
structures we have known up until now more flexible.
doing. The benefits of using this technology include the
In fact, within the global debate that we must launch
possibility that these connected cars might have zero
at all levels, the major challenge for the global tech sec-
emission systems, thus reducing their environmental im-
tor comes from sharing technology’s possibilities for
pact through a combination of engineering and the latest
achieving an integrating, economically sustainable and
technological advances.
environmentally friendly society.
*
/ D I G I T I Z AT I O N I S T H E WAY F O R WA R D
Cloud, Connectivity and digitization to boost sustainable development worldwide
Technology provides institutions, companies and society itself with a tool with which we can actively collaborate to build the society of the future, based on the principles of economic, social and environmental sustainability being demanded by today’s world. That is why it is essential to promote the digitalisation of the business world and therefore boost its integration
/ CLOUD AND IOT ARE THE GLUE FOR
into the sustainable economic models we are current-
THE NEW TECH
ly trying to find for Europe and the world. We should
In that regard, technologies such as Cloud and Connec-
take advantage of technological solutions to achieve a
tivity are allowing us to draw up new applications that,
twin goal. On the one hand, technology promotes more
for instance, bring regions that were previously distant
efficient and effective business models, which allow for
closer together through the option of sharing informa-
better management of available resources while also
tion at any time and in any place. These technologies
adopting more flexible economic models that will drive
are letting us build sources of accumulated knowledge,
a company’s current and future development. On the
where the co-operation of very different actors means
other, accessing technology promotes a cycle of inno-
we can analyse and design more realistic social mod-
vation-based growth that drives a new culture within
els, which make more efficient use of the resources
a company, with a new way of thinking and envisag-
available. That is why we at T-Systems are committed
ing the context, its needs and the solutions that can be
to these technologies as a means of developing robust
provided, which, in turn, transcends the company and
digitalisation strategies to help companies boost their
touches society as well.
business outcomes. Let’s Power higher performance!
With this in mind, it would be very bold to say that tech-
is the claim that represents this vision of the role tech-
nology is the answer to society’s current challenges, but
nology should play in building the future by working
the tech sector undoubtedly has plenty to contribute in
from the present.
the search for a shared path for institutions, companies
This relationship between technology and sustainable
and citizens towards the Europe and the sustainable
social development may be easier to envision if we talk
world of the future.
about technologies such as Artificial Intelligence or the Internet of Things. Let’s consider, for instance, the case of the connected car. This is a very specific example and a concept with which we are already very familiar. Very different kinds of technologies converge in this ‘connected car’ and each one opens up a range of possibilities, both present and future, while also providing
MAY 2019
// 43
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Identity management The next step forward for digital companies
The digitization process of our lives is advancing steadily and even for identifying ourselves in order to sign a contract o service, we don’t need to be there personally, as there are enough digital proofs we can present, like biometric ones, to verify that we are who we say we are. CMC’s O2.Digital platform is able to identify documents and people via Machine Learning and biometric parameters, to simplify
ments like contracts o legal documents. This speeds up the processing and only in those cases where the system has doubts, a human is involved to review a document in order to verify everything is ok. But we go further. We do not only support simple identifications like password logins, but those that are biometric, like voiceprint, face identification, fingerprints or even behavioral IDs. So we are able not only to identify documents, but people. The interesting part is that you can interconnect several of these technologies (which, incidentally are modular) in a single business workflow, in order to solve the problem at hand at any moment. This can range from sales to internal leave management, access control, work order validations….and so on. Any type of business process that involves parties who
a lot of day-to-day processes.
exchange information and who need proper identification for that exchange to happen, can be solved with our platform. And all of this is running on top of an au-
Right now, time is a very valuable asset for everyone.
dit system which generates the electronic proofs (like
Our lives are usually quite stressful and some process-
digital signatures, timestamps, and so on) in order to be
es, like presenting official documents, signing contracts
able to provide a traceability of all the logged processes
or any other instance in which someone has to iden-
and identifications. And it does it with a great enough
tify him/herself in person, just take an extraordinary
validity to get this information admitted into court,
amount of time we, sometimes, just don’t have. And that
should the need arise.
is where our platform steps in with its Identitity Man-
*
agement features, for example.
/ CONTRACT SIGNING Imagine you want to change your power grid provider.
We use Machine Learning to identify the important parts in complex documents, like contracts
This usually involves going to a branch office of the new provider you have selected, sign a contract, bring some documentation with you, etc. But this involves finding out where the nearest branch office is, and going there at a certain time, when it’s open. In today’s life, this may be a problem. A couple of years ago we did a project with a Spanish utility company in order to implement remote identification. Once the customer knows what products or services he wants, the company sends him
44 //
The main traits of our platform are its holistic orienta-
an e-mail with a link where he can access the platform
tion and the fact it is really customizable. We actually
to sign the contract digitally. There are several ways to
make it a point to try and solve any problem a custom-
do this:
er might have, in any workflow or business process
»»
he may need. The platform is, actually, a kind of task
on his phone, he has to enter in a certain timespan at
orchestrator, that allows any exchange of any type of
the service provider’s web.
document, with any party. We support reading iden-
»»
tification documents by OCR, or we can use Machine
call to the service agent and not only shows his face to
Learning to select the important parts of complex docu-
the camera, but also the necessary documents that iden-
MAY 2019
OTP codes. The customer receives a 4-6 digits code
Video identification. The customer does a video
#DES2019
Alejandro Barrera Digital Solutions Director
GRUPO CMC
grupocmc.es
tify him or her. The platform does a biometric match-
nature (inclination, acceleration, pressure, etc). In fact,
ing of everything to generate proofs that everything is
our system complies with the Spanish SEPBLAC regula-
correct. This can also be done without a service agent,
tion (Autoridad Supervisora en materia de prevención
just sending the video, which is processed with special
del blanqueo de capitales y de la financiación del ter-
software to get proofs of life (you blink, move, and so
rorismo) as well as with the European eiDAS regulation
on). If the recording doesn’t get the sufficient scoring,
(electronic IDentification, Authentication and trust Ser-
it is reviewed by a person, to verify it. But the advan-
vices).
tage is that the customer can do the identification at any point in time, when it is convenient, without regard to opening hours. »»
Biometric signature. If the customer is there in
person, we can capture the biometric features of the sig-
New legal requirement in the gambling sector In the past years, the gambling sector has literally exploded with tons of new models and outlets. And this has generated a certain problem because, once in a while, minors are caught gambling. Or people with addiction to gambling. Therefore, the authorities in charge of gambling have restricted and reinforced their rules not only for in-person gambling, but also for the online varieties. For example, there are professional gamblers that have several accounts with different identities, so they can play simultaneously at different places. And this is not legal. So our platform avoids this, by insuring a unique identification of every individual. Taking our experience of having done the digital onboarding of the banking sector a couple of years ago, we are applying what we learned to this new challenge. Official statistics indicate that the 6,4% of minors in Spain (between the ages of 10 and 18) are gambling real money online. But due to the enormous amount of online users (840,000 online gamblers each month), the only way to ensure a proper identification of those willing to gamble, is via a biometric identification. Since March 30th 2019, new legal requirements have been enforced by the DGOJ (Spanish Gambling Control Organism) and this is where the capabilities of CMC’s O2.Digital platform enter the picture. Thanks to its VideO2ID solution, and an OCR capture of the MRZ identification lines of the Official Spanish Identification Document (DNI or NIE), the system can clearly identify the picture, hologram, etc. of the document to generate a clear and valid identification. Thus, no minor will be able to access gambling platforms in the future, nor those with gambling problems that are on special “no-gambling” lists.
MAY 2019
// 45
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
Marina Specht Regional Director MRM//McCann Europe
Marina Specht is a digital practitioner of 20 years and has been working in digital marketing and digital transformation during all of this time. She comes from the marketing side of transformation and has a deep consumer understanding, as well as a very good knowledge about data, technology and customer experience. She built her own business many years ago and sold it to Interpublic (IPG), the holding company that owns McCann Worldgroup. Since then, she has had many different regional and global roles within
ple that I have in my organization that I can leverage? For companies that do this, there are many interesting things happening in the employee space. So I think that if companies fail, a lot of times it’s because of a lack of focus on people first”. / O R G A N I Z AT I O N A L C O M P L E X I T Y I S A PROBLEM The complexity of today’s organizations and the variety of tasks they have to accomplish is enourmous. And then there is the relationship between these tasks, which even complicates things further, as well as the constant change of processes and systems in modern companies. But that kind of scenario isn’t everything, as Ms. Specht points out: “Sometimes leaders don’t get what the problem at hand is, and therefore they underestimate the complexity of this ’organizational entanglement’ as we call it. Things are often way too complex, because companies lack simplification. The important thing is to set specific objectives. If you embark in three year long pro-
MRM//McCann and IPG.
jects, by the time you have finished them, the technology has become outdated.”
46 //
/ FA I L I N G D I G I TA L T R A N S F O R M AT I O N S
/ T H E PAT H T O T R A N S F O R M AT I O N A L
The fact of the matter, after talking to many CEOs of
SUCCESS
different sized companies, is that a lot of the Digital
Anyway, among all companies that are applying a Digital
Transformation projects currently underway are fai-
Transformation to their corporation there surely have to
ling. And some even big time. But Marina Specht has
be companies that are doing the right things. This means
her own take on that: “Let me go into why so many
there has to be a set of actions the rest can apply or pit-
Transformations are failing. I think there are a number
falls they can avoid. “Yes”, says Marina Specht, “the first
of reasons, but in my opinion the main one is that often
thing is that when they talk about transformation, they
companies believe that digital transformation is about
don’t talk about technology. Technology is a means to
technology. And that the key thing is to make the right
and end. But what they have is a clear vision of what their
technology decisions. What happens is that companies
customers expect from them. And that is the real starting
get a little bit blinded, I would say, by the gee-whiz of
point for everyone in my opinion. Today, customers expect
Cognitive Computing, AI, Robotics, RPA, and so on. The-
that every experience is like an Amazon or an Uber expe-
re is such an overwhelming amount of new technology
rience. And the same is applicable to B2B, not only B2C. So
out there, that is very easy to fall in love with it”.
they always expect companies to behave as ’Best in Class’”.
“And the main issue here, in the companies that are suc-
Specht continues: “Let me give you an example: Wal-
ceeding, is that they are doing exactly the opposite. They
mart approached RIGA (part of IPG) and asked them to
don’t start with the technology. They start with the peo-
make their commerce as powerful as Amazon’s. We, at
ple. And when I mean people, I am saying ’customers’ or
IPG, believe that every transformation starts with the ri-
’consumers’. First of all, it’s important to try and gain a
ght question. If you’re not able to ask the right question,
deeper understanding of what is frustrating or wrong or
you will never find the right answer. And Walmart’s right
a pain point in the customer experience. And then, se-
question was ’How can we compete with Amazon?’, not
condly, it’s crucial to focus on their own internal people.
’How can we BE Amazon?’. Summarizing everything a
What are the changes that I as a company am going to
lot, what RIGA did was to analyze the customer journey,
have to make to empower people to actually succeed in
locate the pain-points and start about 30 Transformation
this proposed digital transformation? What are the peo-
Projects to address the issues”.
MAY 2019
#DES2019
“
If Digital Transformations fail, it’s because companies focus on technology first, not people / T H E R O L E O F M A R K E T I N G I N D I G I TA L / 5 D I M E N S I O N S T O A C C E L E R AT E Y O U R
T R A N S F O R M AT I O N S
D I G I TA L T R A N S F O R M AT I O N
Usually, the first thought, when someone talks about
After analyzing a couple of companies, for sure there
Digital Transformation, goes to the people in IT and
must be a, let’s say, “recurring theme” to them. Or, to
in management. But a successful transformation can
say it another way, some topics or problems common
only happen if everybody is onboard, especially the
to them, even if they are from disparate sectors. Isn’t
marketing people. Marina Specht, coming from the
that so? Marina Specht concurs: “After analyzing Wal-
Marketing side herself, has a similar opinion: “I think
mart, Nike, BASF, and others, I arrived to the conclusion
the Marketing people are key. As we all know, the #1 ob-
that there are like 5 dimensions to accelerate your Digi-
jective of the CEOs around the world is growth. But in
tal Transformation (which I will discuss at my Keynote
order to allow for growth, you have to transform the
at DES). These 5 dimensions are:
experiences, the products and the services. And the peo-
»»
Digital Leadership, culture and talent.
ple that bring the deep consumer understanding to the
»»
Customer and employee experience.
table (that we’ve mentioned before) are, in a great de-
»»
Operations/Process automation and optimization.
gree, marketing people. So CEOs are now making CMOs
»»
Technology, Data and Innovation.
co-responsible for the transformation programs. And,
»»
New Business Models and Connected Ecosystems.
as a result, these CMOs are shifting their focus a little
This first point, by the way, is hugely important. One of
away from ‘brand’ and more to ‘customer experience’.
the reasons why Digital Transformations are sometimes
That’s what is happening right now”.
unclear or lack some kind of specific definition is that
She continues: “In fact, over one third of the invest-
companies don’t make clear statements of what the new
ments in technology, are driven by CMOs, when it used
Business Model they want is going to be. Nike, for exam-
to be only CIOs. Technology, by the way, is becoming the
ple, is really clear about becoming a B2C Company. They
biggest expense or investment in a CMO’s budget. And
still are going to sell shoes in stores, but they are trans-
this is an interesting challenge for some CMOs, that
forming. For example, they have been able to cut their
come from a more traditional approach to marketing,
media spent in a big way, because they have created this
because they now have to drive these kind of transfor-
ecosystem of direct connections to people”.
mations”.
MAY 2019
// 47
#DES2019
DIGITAL DNA FOR AUGMENTED ORGANIZATIONS
So, as in all changes, the more traditional side of a com-
we get accustomed very easily to it, and expect the
pany role is getting sidetracked by these new evolutions
same from the rest of brands. Where do you think
of their workplace and demands. And this could be one
this leads in the near and medium term? “I think that
explanation of why so many Digital Transformations
consumers are a bit overwhelmed and a bit exhausted
are failing, due to the inability of the company, or its key
by the aggressiveness at which brands and technolo-
people, to adapt to the new demands. The thing is, is this
gies come at them 24/7. I would like to talk about three
an endemic problem or just a short-term circumstance?
trends that I see happening”:
Ms. Specht has an answer for that: “Of course, some of
»»
those people are having a hard time to jump on the band-
beginning to see a serious backlash from consumers
wagon, to reinvent themselves. So it is fair to say that it
that are saying ‘We don’t want to be shouted at. By any
is a very big challenge. But the CMOs are certainly trying
brand. You have enough data now, to whisper to us, not
and they will continue to play a big role in all of this”.
shout.’ So this 24/7 on the screen is having an impact
The first one is what we call ‘digital dieting’. We are
on our lives, and we are seeing that people are wanting
“
/ C H A N G E S I N C O N S U M E R B E H AV I O U R
less. A kind of ‘digital detox’. And that has consequences
The way we consume goods and services nowadays
for brands, which have to be quieter.
has nothing to do with what we did just a decade ago.
»»
The way we shop, or travel or interact with consumer
GDPR, we think it was a good thing. Many of our clients
goods is completely different now. And when someone
lost a substantial part of their customer data, but on
invents a new, more comfortable way of doing things,
the other hand, they cleaned their data up. What users
Another one is ‘data minimalism’. One year into
want, is that companies come back with a relevant ex-
If you’re not able to ask the right question, you are never going to find the right answer for your Digital Transformation Process
perience. Nobody is willing to answer a list of 25 questions anymore. So companies have to be more precise. »»
Finally, the third trend for me is that people’s expec-
tations are now to receive meaningful personalization. All of this is because consumers think that if they can have this experience at Amazon or other places, this is the new normal. And the rest simply have to catch up.
Are traditional companies transforming better than start-ups? It actually looks counterintuitive, but it is true. There are traditional brick-and-mortar companies that are faring way better than their recently founded start-up counterparts. What’s their secret? According to Marina Specht, “the way they do it, is by not trying to copy the tech-startups, but by partnering with them, and ultimately absorbing them. The traditional companies, like i.e. L’Oreal, have a very, very deep consumer understanding. And they have very deep business experience in their category. What they often don’t have is the customer experience of these start-ups, because it is groundbreaking and uses new technologies. And the start-ups are also faster than the traditional companies. But nevertheless, L’Oreal for example, has reduced their new product development from 5 years to 9 months. But one sine-qua-non is that the Leadership has to be committed to the change. They have to be aligned, to drive the change of culture in their company. And they have to create an environment that attracts new talent, which is one of the hardest parts for these traditional corporations”.
48 //
MAY 2019