E X P E R I E N C E #2 w w w.tot vs.com /experience
INTERVIEW Canadian Don Tapscott, the creator of the Wikinomics concept, talks about innovation, transparency, and what the country has to gain from collaborative creations MACROECONOMY A proactive approach is the best attitude to adopt toward the economic scenario in 2014 PARTNERSHIPS Unimed Porto Alegre, Ribeirão Preto, and São José dos Campos report excellent results
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TESARAC In a rapidly changing world, businesses are being increasingly challenged to remain relevant
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welcome We are witnessing such rapid, extensive, and intense disruptions in society, science, technology, economics, culture, and communication that the way we relate to the world is changing”
E X P E R I E N C E #2 w w w.tot vs.com /experience
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PUBLISHER Flavio Rozemblat chief editor Flávia dratovsky EDITOR OF INNOVATION Gabriela Mafort Designers daniel razabone / daniela barreira REPORTING TEAM Carlos Vasconcellos / Rodrigo Carro / Suzana Liskauskas COLLABORATOR Paulo Mussoi PHOTOGRAPHERS Ana Grillo (USA) / Anna Carolina Negri
TOTVS CEO Laércio Cosentino TOTVS executives RODRIGO CASERTA / Lélio de Souza / Flávio Balestrin Marketing Team
Diana Rodrigues / Cristiano Cunha / Aline Luiz The authors are responsible for the signed articles, which do not represent the views of the magazine, editor, or TOTVS S.A. The reproduction of materials and articles will be permitted only with previous written authorization from the publisher and with the acknowledgement of source credits. All rights reserved.
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We are pleased to invite you to the second edition of TOTVS Experience. In this publication, we turn our eyes to the profound change the world is experiencing; old paradigms are in decline, and new ones seem to be taking hold. We are witnessing such rapid, extensive, and intense disruptions in society, science, technology, economics, culture, and communication that the way we relate to the world is changing. Organizations are faced with the challenges of new social behaviors as the world becomes more pluralistic and connected. In this changing organizational and global climate, communication has become fluid, extending beyond the boundaries of space and time. Furthermore, technology is the main protagonist—the driving force that leads to innovation. Even in adverse economic scenarios, technology facilitates business growth through tools that leverage planning and productivity—two words that are essential this year for companies. I hope that the reports in the following pages will inspire you to overcome the challenges you may be facing. These new behaviors have inspired us to introduce our new brand in January 2014. It is represented graphically through screen dialogs, which provide intermediation regarding the technology and encounters from which new ideas, integration, and shared concepts originate. Light dawns. TOTVS thus calls for a world in which, by thinking collaboratively, we do better. Innovation resulting from collaboration is the approach that we, together with our customers, can experiment with in the future. Here, we promote a simpler, more agile, and more connected future, thanks to Cloud computing! Enjoy your reading!
Laércio Cosentino, CEO of TOTVS
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06 world Israel is a unique country that combines modernity and tradition; it is a global benchmark for technology, innovation, and the promotion of entrepreneurship. 12 interview Canadian Don Tapscott says that smart companies are becoming more porous by using the collaborative universe to harness knowledge beyond their borders. 18 cover At a time when the speed of change is impressive, new challenges are imposed, and we must find the balance between robustness and adaptability.
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26 OPINIon The health sector has gained vast profits by applying technology and software solutions to daily medical needs. 28 Estrategy Migrating to the cloud is a strong market trend. New services indicate that this practice ensures strong performance, safety, and continuous updates. 32 Competition The 2014 economical scenario presents challenges for companies, which must take the proactive approach to promote growth. 36 Infographics Big Data: How the large volume of available information can be used to expedite decisions, improve outcomes, and create new business opportunities. 38 SOlutions Investment by TOTVS in the American company GoodData results in timely and cost-saving business analytics solutions via the cloud. 42 today How preparation for the FIFA World Cup reflects the country’s planning characteristics, which reflect an imbalance between organization and improvisation. 46 behavior A global trend—the Maker Movement—arrives in Brazil, with its basis in technology (e.g., 3D printing), and the “Do It Yourself” culture is now known as the New Industrial Revolution.
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50 in focus The eSocial digital system, expected to launch in May, will provide unified access to labor and social security information with less bureaucracy and more transparency. 54 SUSTAINABILITY The Institute for the Development of Social Investment, which organizes initiatives with foundations and related projects, is a key player in the country’s social investment sector. 56 sucess stories Unimed Porto Alegre, Ribeirão Preto, and São José dos Campos speak of their enduring partnerships with TOTVS and best management solutions.
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ISRAEL
Modern
Although Israel is experiencing political and natural difficulties, the country has turned into a technological power that attracts talent on a global basis
TRAdition
by Suzana Liskauskas
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Sight of Jerusalem, a city that symbolizes the ancient history of the region and also holds modern start ups: the support to the innovation is constant
the end of the 1940s, a small country located in the Middle East was born to transform world geopolitics. A few years later, in the state of California (U.S.), a developing technology was at the threshold of impressing the world. Apart from the coincidence in their chronological origins, what do the State of Israel, established in 1948, and Silicon Valley have in common? The answer is an area known as Silicon Wadi, Israel’s version of Silicon Valley. Silicon Wadi is an area on the Mediterranean coast of Israel that features a high concentration of leading technology industries. In fact, it is the second largest center for this type of industry in the world, behind only its American counterpart. This oasis of advanced technology covers most of Israel. It was there that Waze, a navigation application used globally, was born. Last year, Google purchased Waze. At the end of 2013, a survey published by Startup Genome, an open platform for collecting and analyzing data on startups, entrepreneurs, and investors, ranked Tel Aviv as the second best city in the world for the development of startups, and statistics confirm this. The Tel Aviv area has about 5,000 such companies, and such
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concentration is higher only in the U.S., according to surveys by the Israel Venture Capital Research Center.
A hub for Scientists and Visionaries
David Shankbone/Wikimedia Commons
As a hub of knowledge and the technology generation, Israel is a warehouse of scientists and visionaries. With projects related to the research, investigation, and development
T E C H NI O N : A p i o n ee r Technion was the first university in Israel, recognized for 112 years of existence in 2014; it has the maximum productivity in Israel. Technion was created as a symbol of the rebuilding of the Jewish homeland and as a relinquishment of the past, which drove the community away from traditional teachings. With 12,850 students and 80 excellent graduate programs, Technion is now a global hub for scientific research, pioneering in such areas as biotechnology, stem cells, space, computer science, nanotechnology, and energy. Three university professors have been recipients of the Nobel Prize. Over 70% of the founders and managers of Israel’s high-tech industries studied at Technion; its graduates lead the largest concentration of high technology startups outside of Silicon Valley. In addition, 80% of Israeli companies listed on the NASDAQ are led by Technion graduates.
Roger Shein, the Brazilian engineer who has lived in the country for 15 years describes Israel as “a place where we learn to be focused; it is necessary to extract the maximum from the minimum”
of innovative ideas, the country has become a focal point for entrepreneurs worldwide. “To those coming from outside, the country seems impressive because, within a short distance, it goes from age-old tradition to cutting-edge modernity. When one lives there, another feature is obvious: Israel is a place where we learn to be focused. The territory is small and barren, and political relations with neighbors are difficult, since there are many historical adversities. It is necessary to extract the maximum from the minimum. This leads to creativity and innovation,” describes Roger Shein, the Brazilian engineer who lived in Israel for 15 years and who was involved in the creation of three companies currently operating there. In fact, innovation is a state policy: the country spends more than 4% of its GDP on research funding and project development, the highest rate among Organization for Economic Cooperation and Development (OECD) countries. Dan Senor and Saul Singer, authors of the bestseller An Enterprising Nation, the Economic Miracle of Israel and What It Teaches Us, also highlight the country’s ability to cope with challenges and the persistence of Israelis as factors for the development of the nation. They describe the people with the prosaic expression chutzpa, a word signifying audacity, boldness, and nerve. The book underlines the role of the army in the maturing of the young, as well as experiences imposed by military training (e.g., the need to make decisions during conflicts) as instrumental in developing a sense of re-
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sponsibility and the ability to work under pressure.
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Brazilians in Interchange The non-governmental organization Hillel is attentive to evolving startups in Israel. With its headquarters in Rio de Janeiro, it works toward integrating young Jews in supportive environments supportive for sociocultural and professional development. In fact, Hillel has mounted an exchange that promotes immersion in the areas of entrepreneurship and finance. Through the program, a group of Latin American entrepreneurs participate in classes at the University of Tel Aviv for two months; additionally, they enjoy internships in top-ofthe-line startups, participate in networking events, and visit companies and funding organizations that invest in startups.
1 1. The commercial building marking the center of Tel Aviv is an example of architecture oriented toward great dimensions. 2. The Intel plant in Kiryat is located in the middle of the desert 3. Ayalon Freeway is one of the major routes of Tel Aviv.
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Known as the White City, Tel Aviv harbors the majority of companies within the IT industry.
T E L A VIV : B o l d Founded by a Jewish community in 1909 on the outskirts of the ancient port city of Jaffa, Tel Aviv is a center for innovation. Its achievements are noted from architecture to technology; for example, the city has the largest concentration of Bauhaus buildings in the world. In 1965, the tallest building in Israel, the Shalom Meir Tower, was completed in Tel Aviv. It was the first skyscraper in the country, standing as the tallest building in the country until 1999. The boldness of the architecture blends with the bold minds of its scientists. Tel Aviv is the headquarters location for the Stock Exchange of Israel; it is also the largest R&D center in the world. One such oasis is the University of Tel Aviv, which, together with Bar-Ilan University in neighboring Ramat Gan, has over 50,000 students, mostly from outside of Israel. Founded in 1953, it is the largest university in Israel, internationally recognized for teaching and research in physics, IT, computer science, chemistry, and linguistics. “It is a city of young people, beach life, and modernity among so many Israeli traditions. Jerusalem, by contrast, is pure history,” says Sabrina Grimberg, a Brazilian based in Israel.
It was this scene that attracted the 26-year-old Brazilian Melina Guelman. After graduating with a degree in marketing in Rio de Janeiro, she attended the Hillel Entrepreneurship Experience as the creator of “Easyeating,” a multifunctional web platform that allows tourists to view restaurant menus in several languages. “I took my business plan to be enhanced at the University of Tel Aviv, and I already have plans to build a branch of my company in Israel, where the incentives for startups are numerous, from the government to the private sector. The minimum investment there is US$600,000 on average; in Brazil, if the idea is exceptional, we get at maximum of R$400,000,” Guelman explains. Research conducted by Technion, the oldest university in Israel, shows that high-tech industry accounts for over 54% of the country’s industrial expertise; furthermore, 135 in 10,000 workers in Israel are scientists and/or engineers. By comparison, there are 85 scientists and/or engineers for every 10,000 U.S. workers. Other data collected by Technion show that 9 out
of 1,000 Israelis are involved in R&D, almost twice as many researchers as reported in the U.S. and Japan. Not surprisingly, Israel is the nation that produces more scientific publications per capita—109 per 1,000 people. The country still leads the list of those with more registered patents per capita and ranks 3rd in the world rankings for investments in R&D. Israel ranks 8th in technological equipment, according to the expenditures of relevant companies, the scientific research community, the number of personal computers, and Internet penetration rate. Furthermore, the country also occupies 11th place in innovation, 16th in high-tech exports, and 17th in technological profits.
A stark style like that of silicon Most of the IT industry in Israel is concentrated around Tel Aviv, which includes the cities of Ra’anana, Herzliyz, Caesarea, Haifa, the academic Rehovot, and Rishon Le Zion. More recently, another area associated with the technology industry
has gained reinforcement around Jerusalem, with science parks in Malha and Har Hotzvim. Ingrid Vils Warshawski, a business manager trained in Rio de Janeiro, was also lured by promising Israel. She lives with her husband and son in Ra’anana, having accepted an invitation to work on the startup Snapkeys, a developer of software for mobile technology. “I came to give a Brazilian touch to the launch of the product in the domestic market,” she says. In the spirit of Californian startups, Snapkeys works in an ample space and relaxed atmosphere, which includes the daily company of a yellow cat with blue eyes. With its headquarters in Jerusalem, Snapkeys is an example of the Babel that the country has become; it was founded by an Iranian and a Frenchman, but the company has a professional team comprised of representatives from the U.S., Switzerland, Russia, and Germany. “Israel is a place that has much to teach. Every entrepreneur who spends a period of time there returns to his country with a sense of improvement,” says Shein.
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Canadian Don Tapscott, one of the 50 most influential thinkers in the world, speaks exclusively to TOTVS Experience and argues that companies opened to collaboration innovate more quickly, inexpensively, and effectively by Gabriela Mafort photos by Ana Grillo/San Francisco
creating Don Tapscott on Market Street, the financial center of San Francisco
together
He was elected five times as one of the 50 most influential thinkers in the world by Thinkers50, the Oscars of business rankings — alongside Jack Welch, Peter Senge, and Jeff Bezos — for masterfully explaining the brutal impact of the Internet, especially on companies, in texts considered as “pure enlightenment.” His book Wikinomics became a best seller; it has been translated for publication in 25 countries. His latest release, MacroWikinomics: New Solutions for a Connected Planet has been defined as a “manual to fix a broken world.” In an exclusive interview in San Francisco with TOTVS Experience, Canadian Don Tapscott, CEO of the Tapscott Group, defines the Age of Networked Intelligence, along with implying that Brazilian companies can become leaders in the digital era if they adopt a new mindset in response to the country’s preference for collaboration. In the interview, he states that he believes open innovation to be the key for businesses and governments in the 21st century. He also argues that those who open themselves to co-creation—the effective participation of employees and suppliers in the generation of goods and services—will gain better results. Over the past 20 years, Tapscott has been presenting innovative concepts that reflect contemporary knowledge about the overwhelming global impact of the Internet. In his book Paradigm Shift: The New Promise of Information Technology (1992), he envisioned the impact of IT on the business world. Five years later, he changed the way we think about the Internet in The Digital Economy: Promise and Peril in the Age of Networked Intelligence. In 1997, Tapscott defined the behavior of the Internet generation in the acclaimed Growing Up Digital: The Rise of the Net Generation, showing how the habits of the generation born during the digital era would change relationships and work patterns, as well as companies. In the early 2000s, Digital Capital: Harnessing the Power of Business Webs anticipated such concepts as the Internet of Business. After making history with Wikinomics, Tapscott listed transparency, collaboration, openness to innovation, and freedom of information as new rules for survival in a post-digital revolution in the e-book Radical Openness: Four Unexpected Principles for Success.
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Name: Don Tapscott from: Ontario, Canadá curriculum: A writer and consultant specializing in corporate strategy and organizational transformation best sellers: Wikinomics: How Mass Collaboration Changes Everything and Grown Up Digital: How the Net Generation Is Changing Your World
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Thanks to Palace Hotel/ São Francisco
You were one of the first authors in the world to predict the importance of open innovation for the 21st century. Why do you think this is an important strategy for companies in the Digital Age? The more traditional companies are a bit afraid of what some of them consider to be a “radical step.” The internet gives us access not just to information and knowledge but to the intelligence contained in the crania of other people on a global basis. To me, this is not an information age – it is an age of networked intelligence. It’s long been noted that the traditional vertically integrated corporation is a paradoxical beast. Capitalist titans such as Henry Ford would champion the marketplace’s virtues, yet their corporations functioned like planned economies. For decades these corporate fortresses triumphed over competitors, but no longer. The monolithic, vertically integrated company is beginning to falter against more lithe competitors. How should we react?
Tapscott argues that this is the Age of Network Intelligence when the monolithic company is starting to falter.
Smart companies are making their walls increasingly porous. They use the Internet to open up and harness knowledge, resources, and capabilities outside their boundaries. They set a context for innovation and then invite their customers, partners, and other third parties to co-create their products and services. The upshot is that open companies can innovate more quickly, more cheaply, and more effectively by leveraging expertise they can’t afford full-time or otherwise would not have access to. For example, external collaboration at Procter & Gamble, through its “Connect and Develop” program, has enabled the company to dramatically increase the pool of new product ideas (with close to 60% coming from outside), the revenue drawn from
them, and the innovation success rate – saving over $1 billion in R&D costs. In the book Radical Openness, you advocate that the antidote to the crisis of innovation is open innovation, which is focused on customer participation. When collaborating on internal projects, how can we balance transparency and information sharing with strategic company information?
fingertips the most powerful tool ever for finding out what’s really going on and informing others. Customers can evaluate the worth of products and services at levels not possible before. Employees share formerly secret information about corporate strategy, management and challenges. To collaborate effectively, companies and their business partners have no choice but to share intimate knowledge.
Many forget that prior to the Internet’s arrival most
Powerful institutional investors are developing x-ray
institutions were opaque and operated secretly. This
vision. And in a world of instant communications,
is no longer feasible. People everywhere have at their
whistleblowers, inquisitive media, and Googling,
“Smart companies are making their walls more porous. They establish a context for innovation and invite customers and partners to co-create products and services”
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citizens and communities routinely put firms under the microscope. So, to me it makes sense to embrace openness and transparency, not just because it’s inevitable but because it’s good for you. Open companies perform better. They have higher trust and are able to build better networks. This helps create good value
It makes sense to embrace transparency, not only because it’s inevitable, but because it’s good for business. They have better performance and are more reliable”
-- because value is evidenced like never before. Having
But rather than defaulting to opacity as was done in the past, for most businesses it increasingly makes sense to opt for openness. What is your view regarding the role of government in stimulating innovation to promote this ecosystem? The first-wave of digitally-enabled “e-government” strategies delivered some important benefits. It made government information and services more accessible to citizens while creating administrative and operational efficiencies. But too many of these initiatives simply focused on automating existing processes and moving existing government services online. It is the next wave of innovation that presents an historic occasion to fundamentally redesign how government operates, how and what the public sector provides, and ultimately, how governments interact and engage with their citizens. Why? Knowledge, information, talent and energy are being moved, shaped and channelled in brand new
around the world that customers love collaborating. They collaborate with companies to help co-innovate everything from Threadless tee shirts to Doritos Superbowl ads. They purchase goods and services
restaurants through Restaurant.com. They lend
should not violate confidentially agreements or the law.
stakeholders if they have it or harm them if they do not.
to the collaborative nature of the country. We can see
by sharing knowledge on Trip Advisor and the best
Companies have legitimate trade secrets. Employees
of pertinent information – information that can help
Brazilian companies need a new mindset to respond
collectively on Groupon. They find the best hotels
said that, all organizations have a right to some secrecy.
Transparency should refer to the release or exposure
themselves. How do you see this scenario?
money to each other through peer-to-peer banks like ways, inside, across and outside of the boundaries of government. A growing number of governments understand the need to distribute power broadly and leverage innovation, knowledge and value from the civil society and private sector. There is a new kind of public sector organization emerging: open government. This is government that co-innovates with everyone, especially citizens; shares resources that were previously closely guarded; harnesses the power of mass collaboration; and behaves not as an isolated department or jurisdiction, but as something new: a truly integrated organization. Today, it’s a radical notion, but perhaps it’s only as fantastic as the current version of government would seem to a feudal prince from the Middle Ages visiting us now. Let’s talk about Latin America and Brazil. How do you see the role of the region in the shift to a new mindset, a collaborative mindset? Michel Bauwens, researcher of P2P (Peer to Peer) initiatives said that Brazil is the most collaborative country in the world. We are one of the first countries in the list of active users of social networks. Yet, Brazilian companies do not appear to be utilizing open initiatives to launch
Community Lend. Companies that don’t embrace the new mood will be left behind. In your book Wikinomics, you describe a new economic model in which businesses and ordinary people are coming together in new ways to drive innovation and business success. In your opinion, what will the company of the future be like? In difficult economic times companies that are nimble and flexible have a much greater chance of survival and even growth. Traditional companies increasingly face competition from start-ups, since it is much cheaper than ever to create a company. One study found that the availability of resources such as open source software, cloud computing, and the rise of virtual office infrastructure has driven the cost of launching an internet venture down from $5 million in 1997 to less than $50,000 today. Small start-ups can have many of the same capabilities as large companies without the main liabilities – bureaucracy, legacy cultures, systems and old ways of working – all of which can impede innovation. Open innovation, where talent doesn’t have to be inside corporate boundaries, benefits all organizations, and the biggest beneficiaries can be small companies.
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i n f i n i te
flux
The world is going through a time of profound change in which old paradigms are being overthrown and new ones are yet to come by Rodrigo Carro
I
t is said that while teaching at the Institute for Advanced Study in Princeton, New Jersey, USA, Albert Einstein was administering a test to his students when he was questioned by one of them: “Teacher, this test is compromised. Some questions are identical to those from last year.” Einstein was unmoved. “No problem,” he calmly responded. “The questions are the same; but this year, the answers are different.” True or not, the episode illustrates perfectly a concept that describes today’s era: the tesarac.
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Photos: ShutterStock
Coined by the American poet Shel Silverstein following traumatic experiences (i.e., the deaths of his wife and daughter), tesarac refers to a period of drastic change in society. Current paradigms are destroyed before other models have been developed fully to replace them. Currently, humanity is undergoing its third tesarac. The first tesarac occurred with the transition from the Middle Ages to the Renaissance, when the rupture regarding feudal values was so broad that it encompassed advances in the fields of art (Da Vinci, Michelangelo), philosophy (humanism), and anatomy (with the popularization of dissection for the study of human bodies). The second tesarac began during the Industrial Revolution. Craftsmen could no longer compete with emerging industries, but new companies eventually failed because of the instability of demand. Only much later would advertising inform consumers of who sold what. Furthermore, if the digital age is considered the New Industrial Revolution, it is necessary to clarify that we are currently in a post-digital age. “Technology is everything that was born after us. What was born before is no longer technology,” explains the publicist Walter Longo, who retains the titles of Mentor of Strategy and Innovation for the Newcomm Group and CEO of the Grey Brasil agency. He also observes, “The digital world was characterized by an immense
shock when everything was new and unheard of. People were amazed and fascinated by that technology.” He has compared the Brazilian Indians’ reaction to the mirrors brought by Portuguese discoverers to our initial reactions to the cellphone, which enables people to talk to anyone anywhere. This phase is ending. In a world in which the total number of qualified mobile lines is almost the same as the global population—6.8 billion lines at the end of 2013—companies that want to remain relevant must reinvent themselves continuously while demonstrating innovation and consistency.
Changes in relation to the world At no other time in history have the social, cultural, and economic ruptures been so quick and comprehensive. Culturally, the transformation generated by transmitting music via streaming on the Internet proved to be something that went far beyond technological developments; it brought a profound change in how we relate to the world. “We are experiencing a passage from the culture of ownership to that of access,” explains the record producer Ticiano Paludo, who is also a professor at the Pontifícia Universidade Católica of Rio Grande do Sul (PUC-RS). The recording industry was one of the first business models to crumble under the weight of digital file exchanges
It’s not the biggest or the strongest who wins, but the most welladapted,” says Germán Quiroga, engineer and the president of Nova Pontocom. For him, flexibility and adaptability begin with selection of the right people who are capable of creating a culture of innovation”
via the Internet in the 1990s, but its sales grew again in 2012, although the increase was only 0.2% over the previous year. It is still too early to say whether the new model is feasible. “In the case of streaming, for example, an artist earns a couple of cents each time a song is played. A few earn something, and many earn nothing,” says Paludo. Even companies accustomed to reinventing themselves have been affected by the present earthquake; clearly, the current tesarac has caused some casualties. The experience of having migrated from the manufacturer of rubber boots in the 1960s to leader of the global handset market, a place occupied for 14 years as of the 1990s, was not enough for the Finnish Nokia to maintain the same level in modern times. Its path is a lesson in that anticipating the next trend is a constant exercise. In 2007, when Apple launched the iPhone, the flagship of Nokia was the N95, reminds Carlos Alberto Teixeira, a specialized journalist who has covered technology for 22 years. “It was a better device than the first iPhone, but Apple’s mobile had the touch pad, a revolutionary interface,” he recalls. It was enough to topple the Finnish giant. The company lost its vision; eventually, it was swallowed up by Microsoft. The outcomes of this story and other similar ones highlight the challenges and rapid, intense changes companies
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Photos: ShutterStock
face when planning in an unstable environment. The concepts espoused by the British naturalist Charles Darwin may be applicable in the current era. “It’s not the biggest or the strongest who wins, but the most well-adapted,” says Germán Quiroga, engineer, CEO of the e-commerce company Nova Pontocom, and member of the TOTVS Board of Directors. He has noted that Google and WhatsApp were not pioneers in their segments, but they have prevailed over the competition. Flexibility and adaptability, in his view, originate with selection of the right people who can create a culture of innovation. Other positive ingredients include a favorable environment, a clear challenge, and a system of meritocracy. Being prepared involves having the right product at the right time, as did Microsoft (i.e., MS-DOS operating system) and Apple (i.e., the pioneering Apple-1). As we become more sophisticated, technology disappears from our perception because it is integrated into everyday products including “wearables” such as glasses and watches that are computerized and connected to the Internet. The same goes for software. “Every day, technology becomes more transparent,” says Vice President for Platforms and Cloud Computing at TOTVS Marilia Rocca. The daily use of computers
ECOLOGY IN
T E S E R A C
Although it has an unquestionable role in the ongoing tesarac, technology is only one of the forces changing the global balance. In the 21st century, rising costs from climate change, associated with the burning of fossil fuels, threaten the world economy. Current levels of greenhouse gases in the atmosphere are enough to increase the average global temperature by 2°C by the end of this century, warns Sergio Besserman Vianna, the president of the Technical Chamber of Sustainable Development of the City of Rio de Janeiro. Besides the cost of human lives, climate disasters will make a mess of the relative price structure of the planetary economy. “Everything that emits greenhouse gases will become more expensive in the context of a climate agreement to avoid the worst case scenario,” says Vianna, the former president of the Brazilian Institute of Geography and Statistics (IBGE). In the absence of a global agreement on emissions by 2020, the result will be an increase in the average temperature by 4°C or more. Despite timid signs of change, such as the popularization of electric cars and wind power plants, the light at the end of the tunnel may be closer than you think. “Not long ago, I read in the New York Times that 40% of young Americans between 16 and 25 do not have and do not want a car. This would have been unthinkable five years ago,” observes Vianna.
40% of young Americans between 16 and 25 do not have and do not want a car. This would have been unthinkable five years ago”
Sergio Besserman Vianna warns that with current levels of greenhouse gas emissions, global temperatures could rise by 2°C by the end of the century.
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Fotos: ShutterStock
Today, technology is fluid, permeating all activities of the individual,” says Marilia Rocca, the vice president for Platforms and Cloud Computing at TOTVS
Wearable devices, such as Google Glass, are a trend. Technology is becoming invisible
and applications has caused corporate software developers to surrender to the pattern established in the domestic market by adopting a friendly and visually neat interface. “Today, technology is fluid, permeating all activities of the individual in the company,” adds Rocca. At a time when the rise, peak, and decline of a company may be restricted to a period of one or two years, what is the value of experience in a constantly changing market? The fact that a company is young has little to do with its ability to innovate. Migrating from one business platform to another requires examining everything that a company does best, including how it makes money. This is where a solid history of innovation can make a difference by offering products and services aligned with the brands new clients seek. Throughout the last century, art experienced successive shock waves. The absence of rules became crystallized as a rule, and the philosopher and writer Roger Scruton asked himself why beauty had been removed from poetry, music, and art. In his documentary for the Scottish BBC, Why Beauty Matters, Scruton shows how originality came to play a central role in modern art, which he views as more concerned with breaking moral taboos than with aesthetics. Regarding the evolution of technology, he recognizes that originality is central, but
it does not provide all the answers. Teixeira also comments, “A centennial company like IBM, for example, could have died 20 times if it did not know how to innovate consistently. It’s an organization that’s an example to the whole world.”
“Wiki-tesarac,” the era of collaboration The latest rupture is marked by the democratization of communication to such an extent that it calls into question the very concept of journalism. Today, information is structured and edited by the user, and the news no longer comes from traditional media. This is the “wiki-tesarac,” defined by José Enzweiler, a judge and law professor. He is the author of “Reflections on the Brazilian electoral system: The ‘democratic tragedy’ and wiki-tesarac,” in which he explores the gaps in the Brazilian electoral system. He uses the example of pre-Renaissance painters to illustrate how the rupture with the existing order is not restricted to technical issues. “Was there a lack of technique by painters before the Renaissance to portray a scene in three dimensions? In fact, the third dimension was the infinite reserved for God. Their mental structure didn’t allow them to use perspective,” says the magistrate. Unlike the other two major turning points signaling societal change, the present exchange of information has occurred
almost instantaneously and without geographical boundaries. Global connections have fostered a dramatic increase in the speed of relationship formation and decision making. “Today’s society is suffering from chronic and generalized anxiety because of the inability to deal with the amount of options and incentives. We were used to working with this or that. Now, it’s this in addition to that,” summarizes Paludo from his vantage point with PUCRS. In the era of the zettabyte, equivalent to one sextillion (1021) bytes, final solutions are rare—not for a lack of brilliant minds, but because the world is becoming more pluralistic.
Society suffers from chronic and generalized anxiety for failing to deal with so many choices and styles. We were used to working with this or that. Now it’s this in addition to that,” says Professor Ticiano Paludo
O P I N I O N 26 by Nelson Berny Pires
images ShutterStock
T
theanatomy
ofhealth
inBR A zIL
Innovative solutions bring information technology to the daily lives of doctors and revolutionize management and the clinical areas
he health sector worldwide currently has the lowest rate of computerization. It is also the sector with the greatest fragmentation in its value chain. Therefore, we believe it is an industry with a long way to go and with very fertile ground to be explored, in which the use of information technology will bring large profits to organizations. For many industries, “IT does not matter,” as was assessed by the renowned Nicholas Carr in an article published in May 2003 in Harvard Business Review. IT does not make a difference; i.e., computerizing a company does not offer much improved performance given that technology is already widely used in its operation. In the case of the health sector, the scenario is the opposite: the importance of computerization is great and brings significant returns for organizations by making them more competitive. There are several reasons, in our view, that the segment deserves great attention. First, as it is still a highly paper-based sector, the adoption of back office solutions (ERP, BI, and payroll services) yields important results in cost reduction, inventory control, and waste reduction; it improves the day-to-day functioning of these organizations and results in significant performance gains. Given the large volume of data with which they operate, these enterprises can enjoy an increase in sales from the moment they start to have all the information at their fingertips. Second, it is important to highlight that the health sector has one of the largest bodies of laws and regulations. Therefore, in addition to dividing themselves up in a quest for operational efficiency
and giving constant attention to the need for innovation and renewal of companies, responsible personnel of health organizations still need to make room in their schedule for compliance management. For the health sector, this process has become a critical success factor, as policies and procedures change monthly.
Clinical result The third point is on an issue that has been brewing for some years. Health organizations succeed when they can deliver to the target public actual clinical outcomes in their operation. In the case of a hospital, for example, a positive clinical result may reduce the duration of a patient’s stay at the hospital. Rapid recovery decreases the risk of hospital infection, clears beds for other patients, and increases patient satisfaction. By transferring these aspects to software and services, TOTVS currently has a set of solutions that is increasingly more clinical, either with regard to reducing the length of stay in the hospital or assisting in the analysis of the epidemiological profile of a group of patients based on health plans. Thus, preventive actions that directly impact the costs of these institutions are established. As such, our solutions have an increasingly medical approach, thereby incorporating into the system the decision-making aspects of doctors and their teams. These medical professionals possess clinical-care knowledge, and the software supports their clinical decisions as well as assists in decision making. A great example of the possible segmentation of IT solutions is the second generation of medical records. A few
years ago, we identified the need to create a new generation of systems for storing clinical information, including new interfaces for health professionals. We created a team of professionals with varying profiles, some from IT, TOTVS, and the health area, especially from the Hospital do Coração (HCor). HCor, located in São Paulo and recognized within and outside of Brazil for its standard of excellence, is far more than a client. It is also a partner that has contributed greatly to the development of TOTVS health solutions, with the active contribution of highly skilled
The health segment is a market with a very positive horizon and room for significant innovation”
professionals and globally excellent processes in management and hospital operations. After much research and study together, we have arrived at the design of a new tool for health professionals. In 2013, TOTVS signed the Strategic Alliance for Health, a union of four large companies aiming to develop solutions for the health segment, with each having its own competence. These are TOTVS, the Albert
ed in the project to put the software in the cloud and SQL server, thereby allowing systems to be available to health professionals within and outside the hospital. The consultancy of the Albert Einstein Hospital, on the other hand, offered guidance on how best to implement the system for the routine of doctors. The participation of TOTVS involved the development of the hospital and electronic medical record software to fit these pieces, both in the cloud and for use in the latest generation of tablets, with voice recognition and writing per the processes suggested by the Albert Einstein Hospital. Within 2014, HCor will be in full use of this tool with the new functionalities that have been defined collaboratively.
billion dollars industry The healthcare industry is one of the largest in the world from an economic perspective. It is an industry that involves billions of US dollars a year but is poorly computerized. As such, it has a long path to travel as far as management aspects are concerned: in the use of processes, increase in productivity, and efficiency of clinical outcomes. One of the industries with the greatest investment in research in the coming years involves the relentless pursuit for a longer and better quality of life. In our opinion, this market has a very positive horizon from the view of both the value chain as well as improvement in performance. There is still room for significant innovation and space for professionals to help in the development of this segment. Challenges are welcome.
Einstein Hospital, Microsoft, and Intel. Intel has provided tablets to be used within the hospital. Microsoft has invest-
Nelson Berny Pires is Director of the Health Segment of TOTVS.
s t r a t e g y 28
InNOVATION in the
cloud
Cloud operations are the current market’s big trend, and TOTVS reinforces this movement with a specialized team, a faster upgrade, IaaS, and simpler migration by Suzana Liskauskas
T
he entry of large companies into the cloud is one of the strongest trends in the technology market this year. In just six months, TOTVS recorded a 50% increase in customers and company management teams interested in migrating to the cloud. Their choice is accurate; today’s more mature market has a track record of good performance and efficient alternatives, and it is ready for the entry of large organizations. “For some time now, companies who have done the math have realized that it’s more interesting to migrate to the cloud,” notes Vice President for Platforms and Cloud Computing at TOTVS, Marilia Rocca. Years ago, however, there was a strong concern that such action would lead to losses in performance or safety. Today, cloud operations have evolved rapidly with new technologies and approaches, allowing for low-cost and rapid access to models with high availability, flexibility, and scalability. Rocca has noted that cloud customers also assess earnings from total cost of ownership (TCO), since they share more physical and software resources. To meet the growing demand, TOTVS is creating a special cell to serve more sophisticated accounts, aimed at large companies. “We’re segmenting customers and offering new services which allow for greater customization—for example, according to the needs of governance, IT, and the se-
curity of organizations,” says the vice president. With this strategy, managers or analysts can be dedicated entirely to an account.
Range of services of the IaaS Larger companies have specific needs that will be served by these teams. Prior to entering something as mission critical as ERP into the cloud, it is in the best interest of an organization to invest in IaaS support, the service infrastructure in the cloud. If a customer chooses to enter the transactional system into the cloud, there is no need to maintain collaborative services such as e-mailer infrastructure support servers (e.g., directory servers). “There is no need to maintain a specialized team within the company, since the local IT team can focus on the core activity of your business,” explains Rocca. Today, TOTVS offers a set of satellites around the ERP so that the customer can make the decision to go to the cloud, which offers such benefits as reduced operating and maintenance costs and reduction of CAPEX investments; further, it eliminates concerns about depreciation and guarantees. In so doing, the technological gain includes greater and growing flexi-
bility according to needs. “TOTVS was structured to take care of all the needs of the client in the decision to go to the cloud, and not only the question of ERP,” clarifies Rocca.
More fluid migration Another challenge for a company is how to structure its technology stack—a block of technological components in an IT ecosystem— so that it is increasingly simple for its customers (who still retain its ERP) to migrate to the TOTVS cloud. Regular updates will allow the decision of transferring to the cloud to be more fluid and transparent, thus eliminating concerns about a risky and disruptive operation.
With the migration to the cloud, the local IT team is free to focus on the core activity”
s t r a t e g y 30
The use of cloud data centers is emerging as the major trend of the next decade�
ShutterStock
TOTVS hence believes that it is prepared for the new era through a specific attendance cell with specialized offers and an expanded research team for development and support of its cloud layer.
Cloud features Agility: With cloud computing, the time necessary to set up a server has dropped from months to minutes. Self-service: Servers can be developed without IT infrastructure professionals. Simplicity: Cloud computing reduces the complexity typically associated with IT maintenance. Elasticity: A highlight of cloud computing is the ability to increase or decrease computing capacity (e.g., number of servers) according to the service.
Trend for the next 10 years Multitenancy: The resources provided by the vendor of cloud computing are shared via different software, internal or external. Affordability: Since resources are shared by various consumers of cloud services, the cost is more affordable. Consumption: There is no need to buy a license or hardware. You pay according to consumption. Security: Cloud computing is extremely safe, with millions of dollars invested to protect the information stored in the cloud.
Research since 2013 by Gartner, Inc. in Brazil confirms the trend observed by TOTVS. According to their study, the use of cloud data centers will emerge as the major trend in the next 10 years. The cloud technology has attracted the attention of the market since 2006. However, the term “cloud computing� is believed to have originated almost 20 years ago in an internal document within Compaq Computer Corporation. Although the trend among large companies is recent, cloud computing had been designed previously as an alternative for small and medium businesses to enjoy the benefits of IT without investing in heavy infrastructure. Besides the reduction in costs, the adoption of cloud computing (public or private cloud or, in the future, a combination of the two) brings a number of benefits, such as scalability, security, quick implementation, and the ability to focus on core business.
ShutterStock
C O M P E T I T I O N 32
at T i t u d e a n d
proactivity
The economic scenario in 2014 brings challenges for companies, which need to double their efforts to take advantage of opportunities to boost productivity for continued growth
by Carlos Vasconcellos illustration by Kiko
T
he national economic climate in 2014 brings great challenges. The projection of GDP growth is close to the 2013 performance. The expectation for the elections and the suspension of activities for the World Cup may impede initiatives. Some companies are more concerned with staying afloat due to their difficulties, than with growth in 2014. Experts say that their approach, instead, should be proactive by taking advantage of opportunities on the horizon. In the present scenario, the projection for GDP growth would be around 2–2.2%, says Alexandre Espírito Santo, economist for Simplic Pavarini and teacher at Instituto Brasileiro de Mercado de Capitais (IBMEC-RJ). He also expects family consumption, which represents about 60% of the GDP, to continue to grow, albeit at a slower pace. The rise in the dollar, in turn, will reduce the loss of GDP with imports. “In 2013, that loss was at 0.7%, but this year, it should be between zero and 0.2%,” predicts the economist. Industry and retail registered positive data in the first months of the year, although Brazil is still growing below its potential. Resource Manager of Coinvalores, Tatiane Cruz projects a 2%
growth rate if the current economic conditions are maintained, while not ruling out the possibility of the deterioration of economic expectations for the year. After considering all this information, how can companies prepare to defend themselves in this scenario? For the CFO of TOTVS, Alexandre Mafra, this moment calls for companies to invest more than ever in productivity. “We need to remember that the economy is cyclical and that the scenario is not composed only of problems, but also of opportunities,” he says. As an example, Mafra highlights the TOTVS strategy, focused on the exploration of 10 new business segments with different market characteristics. He defends the company’s strategy of taking advantage of all growth opportunities, and he high-
C O M P E T I T I O N 34
lights the role of small- and medium-sized companies with growth rates above the GDP. According to Mafra, organizations should avoid a defensive posture and the habit of investing only when the economy is thriving. “It’s time to look inside the company, and not just at the economic scenario,” he says. “Entrepreneurs cannot be confined to reacting. They need to be proactive by investing in improvements that allow the delivery of superior products and more appropriate services to their customers.” This investment, Mafra suggests, needs to be directed at tools that allow companies to leverage productivity. “That could make the difference between succumbing or surviving longer below the surface when the economy goes through bad times,” he predicts.
Opportunity in Adversity If “productivity is not everything, but in the long run, it’s almost everything,” as advocated by Paul Krugman, Nobel Prize in Economics, then an unfavorable economic situation can still bring opportunities rather than imposing limitations. For well-prepared companies with strategic plans, a crisis can create opportunities to stand out in an average market. “A favorable economy leads all companies forward, reducing the difference in results between them. In a moment of crisis, only the strongest survive and occupy the vacant spaces left,” ponders Melissa Wiemer, economist and strategist. She maintains a positive attitude toward organizations in the current national scenario, stating, “There’s room to grow.” To passively wait for improvement of the current scenario or for solutions to logistic, fiscal, and employment limita-
Passively waiting for the improvement of this scenario or the solution of limitations is not the best approach. The challenge is urgent”
tions—or for qualified manpower in the country—is not optimal. The challenge is daunting. There is not, however, a single formula to solve the economic crisis and low growth scenario. Each segment faces specific challenges regarding productivity. “However, regardless of the industry, business, or company size, it’s necessary to address the problem of productivity in a coordinated manner, in all its aspects: administrative, economic, engineering, and marketing,” states Luiz Carlos Cimatti, expert in company administration and management. With 35 years of consulting experience, he notes that it is necessary to take a holistic view of productivity. What does this mean? “If the company has a problem in the engineering sector, it’s not enough just to adopt a solution created by focusing exclusively on the engineering sector. In doing so, it does adopt rational measures, but hardly sees the productivity of the business as a whole,” he explains.
Inflation target Another important factor for the economic scenario is the persistence of inflation above the ideal level, which has led the government of Brazil to raise interest rates again. In the Monetary Policy Committee meeting held in March, the Central Bank increased the base interest rate of the economy (SELIC) to 10.75%, indicating that the upward cycle is not over. “There are possibilities of new highs of 0.25 points in future meetings,” says Cruz. The rise in interest rates, in turn, makes it more difficult to access retail credit, which has propelled consumption and has functioned as the main engine of the GDP in recent years. This trend is inhibiting investments. The reaction of U.S. companies to the 2008 crisis, the object of a study by Cláudio Diogo, lecturer in sales management and CBN radio columnist, offers lessons for Brazil. Diogo moved to the U.S. state of North Carolina to study the market, and he observed that the focus of the companies studied
Entrepreneurs cannot be limited to reacting. You need to be proactive,” says the CFO of TOTVS
was more customer-oriented. “Changing the presentation of products and services, as well as bringing new experiences to consumers and more value-added services were some of the solutions that worked,” notes Diogo. Cimatti adds that all measures of productivity should be reflected in final pricing of products and services and in costs assigned to each process. “Peter Drucker warned that downtime in industries ranged from 20% to 50% of the total operating time; in other words, it’s necessary to be careful to not throw half of their productivity through the window,” says Cimatti. “In addition to properly controlling time, striking the correct relationship between downtime, costs, and prices provides a global view of the organization’s needs. There are many challenges.”
Trust in improvement Despite the moderately pessimistic tone, experts present some positive factors for Brazil in the outlined scenario. Hosting the World Cup, for example, will attract a large number of tourists and move various sectors of the economy, albeit with a patchy effect. After closely watching large companies listed on São Paulo Stock Exchange, Tatiane Cruz does not expect interruption in the flow of investments. “The projects are still underway and there is still a climate of confidence for improvement of the economy,” says Cruz, “especially for the opportunities in infrastructure and the strength of the middle class. Although credit is not growing at the same pace, it is still growing, and the default rates haven’t gone out of control. Moreover, with 5.8% unemployment, the country is still experiencing full employment.” Alexandre Espírito Santo, in turn, notes that the unemployment figures in the country do not reflect the current market: “We have more young people postponing their entry in the labor market, and we have the phenomenon of despondency, with people that stop looking for a job and are not accounted for in the statistics.” He adds, “All of this can hide the real situation of the labor market.”
I N F O G R A P H I C S 36
BIGDATA the
u
T
niverse
he term Big Data refers to the collection and processing of large volumes of data with digital technologies. The data are transformed into indicators and reports. The concept includes speed, volume, and variety. Through analysis, we can anticipate desires, predict scenarios, and prescribe strategic actions.
QUANTITY OF NEW DATA STORED WORLDWIDE EVERY YEAR IN PETABYTES
market data $ $ $ $
$
big data
Europe
>3,500
>250
India
North America >200
Finances, telecom and
trade
JOBS
>2,000
>50
Middle East and Africa
By 2018, the U.S. will require the following:
China >400
140 –190 1.5 MILLION
Japan
,000
>50
seek solutions from Big Data.
Latin America
>300
Oceania
Source: Big Data Brasil, IDC/EMC, McKinsey Global Institute, The University of Texas
managers
E C O S Y S T E M Governance
analytics
transmission
interface and
Capture: Relationships mediated by digital devices generate data that represent these movements. Transmission:Internet and mobile communication technology transmit data to the storage platform.
$
The cloud platform enables several processes in addition to storage: assigning tags, indexing, copying, sharing, and implementing security measures.
capture and
Visualization The result is a product of analytical design, delivered in easy-to-view reports or technological interfaces such as applications.
285 million
drove Brazil’s Big Data market in 2013.
Is the heart of the ecosystem. It is about the use of tools and methods for understanding, communicating, and ensuring intelligent use of the digital data. Analytics can be diagnostic, descriptive, or predictive. The latter can only be accomplished by using Big Data because it requires a large volume, variety, and velocity of data. Therefore, use of the cloud is appropriate for this type of analysis.
800 Terabytes
2006
160 Exabytes
size
Data volume is expected to grow nine times by 2020
1,227 Exabytes
2010
4 Zettabytes
2013
35 Zettabytes
46%
WHERE DO THE DATA COME FROM Twitter 1 billion tweets/day = 80 terabytes Boeing 1 transatlantic flight = 640 terabytes
The Big Data market grew for the period betwen
YouTube 100 hrs video/min = 72.000 terabytes
2012 and 2016
WallMart 1 million transactions/hr
= 2,5 petabytes
USE OF BIG DATA INCREASES PRODUCTIVITY
EIn Big Data, it is possible to perform all kinds of analyses, including predictive analysis, which is largely responsible for empowerment of the decision maker because it allows a glimpse into the future and a preview of the scenario that is to come.
O Triggering events for digital data are the relationships that people, organizations, consumer goods, and other elements of society have with each other.
2000
2020
empowerment
DATA GENERATION
,000
professionals capable of analyzing data
DECISION MAKING The decision stage is more agile and accurate based on a more detailed view of the market.
In 2013, worldwide hardware, software, and services solutions based on information analysis generated revenues of
elevenbillion d
o
l ars
Sales per employee
50% 40% 30%
23%
of the data from this Big Data universe would be useful if it were identified and analyzed. all data available to are used by them 10% ofcompanies
20% 10% 0%
BUSINESS OPPORTUNITIES
n il reta nsulting por tatio ns co a r t air
l l tion food truction stee omobile editoria dustr y munica in au t c om c ons le e t
S O L U t i o n s 38
TOTVS invests in the American company GoodData and brings customers business analytics solutions more quickly and at a lower cost by Suzana Liskauskas
BIG data
GOOd
P
rodiet Clinical Nutrition is a company dedicated to producing foods that require specialized expertise; the company, based in Curitiba, has set up international operations. It sought a market solution that would enable company managers to perform sophisticated analyses of data stored in management systems. The solution, developed in collaboration with the American GoodData, was discovered earlier this year; it enables flexible access to management dashboards with rapid deployment. Prodiet is the first TOTVS customer to use TOTVS Smart Analytics. From the investment in GoodData in June 2013, TOTVS customers now have access to a state-of-the-art business intelligence platform and Big Data. TOTVS invested $22 million in GoodData, a provider of applications and an analytic platform in the cloud that has its headquarters in San Francisco, California.
TOT V S S M A R T A N A LYT I C S The product, developed in partnership with GoodData, allows flexible access to management dashboards, with significant benefits such as rapid deployment and competitive costs. Because it is in the cloud, it does not require an investment in infrastructure. Clearly, TOTVS Smart Analytics focuses on the user experience.
The deal was the conclusion of a search by TOTVS to make its portfolio even more attractive, especially in the area of business analytics (BA) and the cloud. The partnership gave TOTVS exclusivity to GoodData’s solutions in Latin America.
Faster and more well-connected functions Mateus Pestana, the TOTVS executive responsible for the partnership with GoodData, explains that the company wanted to increase its portfolio with international investments and partners who worked in the BA sector and with the cloud. “GoodData is innovative because it focuses on addressing an issue that has emerged in the recent times—the need for a quicker and simpler BA for our clients. Our tool now delivers to the client faster, more direct, and more well-connected functions, or, to put it simply, more cloud,” says Pestana. According to the TOTVS executive, BA projects tradition-
22
million dolars
Investment in GoodData
S O L U t i o n s 40
ally have a high degree of complexity; additionally, it takes some time to show results because the tools are required for handling and regulating databases in different systems. The paradigm shift of TOTVS Smart Analytics is that it enables a company to develop BA with little investment and in much less time. “GoodData and TOTVS combined the BA features with the cloud, making it possible for many companies to use the structure at a lower cost,” notes Pestana. Gabriel Tortelli, the administrative and foreign trade director for Prodiet Clinical Nutrition, says that he sought a BA solution that would offer more mobility. The goal was to enable managers outside IT to leverage information from the database to conduct more sophisticated analyses.
INTERVIEW_R o m a n
S t a n e k
Roman Stanek, originally from the Czech Republic, is the CEO and founder of the startup GoodData. Despite his young age, he is a veteran in technology with over two decades of IT experience, including the foundation and command of NetBeans, the main Java development environment. The company was acquired by Sun Microsystems in 1999. Stanek also created Systinet, a leading platform for SOA governance; it was acquired by Mercury Interactive and later by Hewlett Packard in 2006. The European, known for his speed and creativity in the area of technological innovation, talks about his expectations for the partnership with TOTVS.
What is your opinion on the BA and cloud market in Brazil? Brazil is a rapidly growing economy that has the unique ability to leapfrog to new technologies. The cloud market in Brazil is a huge opportunity as leaders like TOTVS embrace the jump from on premise solutions to the cloud. Additionally, since cloud is a global solution it allows Brazil and companies to support international markets. With the cloud, companies in the Brazilian BI market can grow as fast as their economies grow, all with infinite scale and flexibility. What does the partnership with TOTVS mean for GoodData? For GoodData, TOTVS is a partner that is not only a leader in a very important, rapidly expanding market, but also one that shares our vision for the future of analytics. TOTVS is a strong brand in Brazil and will only grow in the U.S. as it continues to embrace agile, cloud-based BI. We have very close collaboration between our development and product management, an example of how this joint partnership en-
Interface that allows customization “We’re a medium-sized company and our main activity is not in the IT field. More structured BA solutions require costly equipment, which was not in our plan. As TOTVS customers, we were happy to hear about the partnership. We conducted research, and GoodData’s solution seemed to be the one that most closely suited our needs,” explains Tortelli. According to Tortelli, the differential of TOTVS Smart Analytics is the provision of flexibility and agility for managers. In addition, the user-friendly interface allows for customization. “With this tool, we have a chance to better exploit the stored data with more sophisticated analysis. The tool is so user friendly that it enables the majority of our managers with good analytical experience to make IT orders more precise,” observes Tortellli.
ables us to be highly collaborative and build products quickly. We are working jointly on new products that will be launching soon. What have the prospects of GoodData been for the Brazilian and Latin American markets since TOTVS became an exclusive representative in these markets? We have been positively surprised by TOTVS’ commitment to innovation and collaboration. TOTVS’ position in the market is a sign that the Brazilian and Latin American market will continue to grow and benefit from emerging technologies. What is the next big challenge for GoodData? Companies today only analyze about 10% of the data available to them. At GoodData, our goal is to help customers access and use all of their data to gain new competitive advantages. Our mission is to help our customers become All Data Enterprises. GoodData’s headquarters offices in San Francisco offer an informal environment that stimulates creativity.
t o d a y 42
flexible
game The World Cup reflects how the Brazilian lifestyle, filled with creativity, happiness and improvisation, can get in the way of necessary organization and planning. by Paulo Mussoi photo by Ricardo Oliveira/Tyba
t o d a y 44
A
boy and a ball. No need for a team, crossbar, or field. Even improvised over the waters of any river, soccer in Brazil is like the picture that illustrates the previous page: a synonym for beauty, plasticity, talent, and improvisation. Its greatest icon, the ball, expresses the symbolism perfectly—it has no sharp edges. It reflects the ethereal concept of “being Brazilian with great pride, with love,” sung by fans worldwide. It is because of this undeniable intimacy with the ball and nothing else that Brazil has learned to impose itself on the international soccer scene. The most popular sport in the world that moves billions on and off the field has, for 60 years, showcased the talent of Brazilians to deceive the opponent and push the ball repeatedly into the goal. For all these decades, we have been content with this abstract domain. In the imagination of a country consumed with soccer, administering the “difficult” side of the sport—organization, planning, and high investment—would be a sort of consolation prize for those countries with less talent in their feet for the ball. In the last 20 years, however, this perception has begun to change. The strengthened and increased size of the economy, along with changes in politics, have captured the attention of the world and stimulated the Brazilian government and private sector to invest in the effort to bring the World Cup to the country. After three failed attempts (for World Cups 1994, 1998, and 2006), the Brazilian World Cup project conquered FIFA in 2007. Not only did we finally win but we won in our backyard before the hearts of our ecstatic crowd. Furthermore, we could root out the trauma of 1950 when the country hosted the World Cup and lost at home during a time in a world that had been destroyed by war. This bold new objective in showing the world that Brazil has matured in the administration and planning of the “beautiful game” has been quite difficult in practice; in fact, it has been even more difficult than scoring from midfield, like the goal by Pele against Czechoslovakia in Mexico (1970).
A series of delays
Maracanã FIFA standard: Creativity trumps the lack of structure
In mid-2013, anyone who was following Brazil’s preparations for the 2014 World Cup realized that the country would face serious difficulties in fulfilling FIFA’s specifications, which had established seven years earlier everything that the country needed to do to host the event. In fact, the country did not fulfill its host-country obligations,
The improvisation that makes a boy play with a ball over the water and the Brazilian soccer star that reaches the goal like no other may also have been an asset to the viability of the Brazilian World Cup
The success of the Cup depends on the results on the playing field. Photos: ShutterStock
although the regulations associated with such sporting events were strict. The stadium of Itaquerão in São Paulo, scheduled to host the opening match, had its inauguration scheduled for less than a month before the match. The same occurred with the Pantanal Arena in Cuiabá and the Baixada Arena in Curitiba. These situations were extraordinary in relation to FIFA’s organizational “standard,” which was displayed on the two previous World Cup stages, Soccer City in Johannesburg and the Allianz Arena in Munich. For both, inaugurations were completed over a year in advance of the opening games. In the financial field, predictions also proved to be unrealistic: the investments for the event turned into a mesh of public funding and extrapolated budgets accumulated. In the structural field, shortcomings in planning were even greater. Of the more than 40 projects for urban mobility planned for the 12 host cities, only 5 were completed on time, a result well below the expectations for the “Cup of Cups.” Reasons for these shortcomings were plenty: the lack of experience on the part of Brazilian managers in dealing with large events added to difficulties with legal issues, taxation, and environmental and severance requirements that were necessary for the implementation of large-scale projects in Brazil.
Enthusiasm of the fans Did all these planning obstacles and the resulting improvisation make the Brazil World Cup a failure in the eyes of the world? Not necessarily. “Undoubtedly, the recent history of the country, especially the long years of runaway inflation in which we lived, has created a generation that has extreme difficulty thinking for the long term. However, an event related to soccer
will only mirror what our society is,” predicts Amir Somogg, a management and sports marketing consultant. He advocates that the culture reflecting a lack of planning is not exclusive to this sport; rather, it is a Brazilian characteristic with which, in one way or another, the country has learned to cope. In other words, the improvisation that makes a boy play with a ball over the water and which enables the Brazilian soccer star to reach the goal like no other may also have been an asset to the viability of the Brazilian World Cup. Scheduling holidays on match days, prioritizing flights, designating express lanes for accredited vehicles, and installing temporary structures minimize the impact of infrastructure deficiencies. Improvisation associated with the World Cup eased even the demanding FIFA requirements. The entity rescheduled inspection visits and delayed the dates for completions of construction phases. Even FIFA Secretary General Jérôme Valcke speaks casually about the installation of tents and other temporary housing solutions for the media, volunteers, and VIP fans at Itaquerão. The enthusiasm of the fans, who have been eager for a Cup in Brazil for over 60 years, is another ally against the precariousness that is found in the access and amenities of the stadiums in practically all the host cities. However, the main advantage may be inside the playing field. In “soccer country,” the result of the World Cup competition will be crucial to the perception of the success or failure of the event. The delirium for a Brazilian victory, linked to the national team’s becoming a six-time world champion in Maracanã, has the power to calm the negative observations and weaken criticism toward the host organization. A defeat, especially if premature, would cause tempers to flare. This historical pattern has been verified on a wide scale; thus, the future of the motherland of soccer shoes is, more than ever, at the feet of the Brazilian national team.
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by Gabriela Mafort photos by Anna Carolina Negri
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THE m a k ers Technology such as 3D printing diminish the distance between the inventor and the entrepreneur in what is now called the New Industrial Revolution Ricardo Cavallini and Alon Sochaczewski are the founders of the Makers Movement in Brazil: the 3D printer embodies the slogan “Do It Yourself”
he factory’s slogan announces the new era: “Products made by you.” The “employee,” produces a napkin holder with his original modern design. He can market it to his neighbors, who are familiar with his inventive flair, and also globally, with the aid of an international nickname—“Youngster.” In this giant “company,” he has about 15,000 companions who have dreamed of manufacturing something but who have been barred from doing so because of high production costs and a certain degree of isolation. Today, an Internet connection is enough; within days, a product is a reality that can be refined with the help of an active and voluntary online community. Welcome to a new model for the industrial organization of the future; it is not a frozen scene from science fiction. The facility above already exists (in Diadema, Brazil). It is commanded by 3D printers, and it is an example of the arrival of the Maker Movement to Brazil. Gaining force in the U.S. and Europe, the Makers embody the “Do It Yourself” spirit, which has been enabled by rapid prototyping technologies, object printers, laser cutters, and inkjet printing among others. “Someday, people will have such a printer at home and make their products themselves. Have you broken a domestic utensil? The consumer himself will produce the piece at home by downloading the template from a website and printing the object. This will change the patterns of people’s consumption and the way businesses work,” predicts Vinicius Dourado, manager of the Diadema plant for Imprima 3D. Dourado’s company is a supporter of this international chain and partner of Makers Brazil, a movement conceived by entrepreneurs Alon Sochaczewski and Ricardo Cavallini to spread the trend through a platform of content, education, and consulting. The duo
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Wikimedia Commons
Office design trends are now extended to consumers,” says Anderson
the inventor and the entrepreneur has been shortened or has even ceased to exist,” he writes.
Companies Attentive to the Maker Consumer On the horizon for the next 10 years, a period Anderson addresses in the book, the industry will open up progressively. The essence of the book is the way the industry is becoming digital. “Physical objects are now finding their beginnings on screens, and these projects can be shared online as archives. This trend, previously restricted to industrial design offices, is now extended to consumers,” writes Anderson. Companies are anticipating these new times. In March, Lego—the second-largest toy manufacturer in the world in sales and number one in profits—announced that the company is studying the possibility of consumers making their own puppets and parts from 3D printers. “It’s a fascinating technology and certainly opens many new doors. We’re studying this very intensely and monitoring it, and [we are] finding potential opportunities for consumers,” says CFO John Goodwin in an interview with Financial Times. Heloísa Neves, who is at the head of FabLab Brasil, agrees that companies really need to act quickly. She acknowledges that the makers’ strategy enables “a new way of conceiving the product, working with prototypes, with more collaborative, faster, and cheaper models.” The FabLabs are manufacturing laboratories where thousands of inventors manufacture a wide variety of products, most often collaboratively. There are almost a thousand “makerspaces” around the world today. Many are shaped by local communities in physical spaces. Others only work as global
Author Chris Anderson speaks about the Makers in his new book; to him, change in the real world will be as profound as that in the digital universe
Students create their own objects during classes in the Manufacturing Laboratory (FabLab) of the School of Education at Stanford University (Silicon Valley)
Disclosure
has pioneered projects; with success on the web, Sochaczewski and Cavallini have strengthened the country’s digital culture. “3D printing is not new, but it’s so wonderful that it looks like magic. However, the main aspect is not technology in itself, but the ecosystem. It’s important to remember that Facebook, Amazon, Google, and other Internet giants would not have happened without free tools that could be modified. The same will happen with the New Industrial Revolution,” emphasizes Sochaczewski. This New Industrial Revolution is endorsed in the latest book by Chris Anderson, author of The Long Tail and Free: The Future of a Radical Price. In Makers: The New Industrial Revolution, the wizard of the software and Internet revolution (i.e., “world of bits”) now turns to what he calls the “world of atoms,” or the real world. He compares prototyping machines to personal computers which, connected via the Internet, have promoted radical changes in human behavior and the business world in recent decades. Now, according to Anderson, it is the Makers’ turn. “We’ve seen what the model of the web of democratized innovation has done to boost entrepreneurship and promote economic growth. Just imagine what a similar model could do in the wider economy of real things. Today, the distance between
markets for makers, such as the American Etsy, which has about a million active sellers. In 2012, they traded nearly $900 million.
Less Hierarchy at Work Anderson predicts that, in the future, the role of smaller companies will be greater and the typical deal will be small and global, yet handmade and innovative at the same time. “Above all, it means creating the type of product that doesn’t fit in the mass economy of the old model,” he highlights. As a true maker, he surfs in this sea with a multimillion-dollar company specializing in aerial robotics, a hobby that began as a small company with a partner Anderson met in an Internet community. 3D Robotics has only 20 permanent employees and another 100 virtual employees, who are passionate about their product. Jean Paul Jacob, a futurologist and researcher-in-residence at the University of California, Berkeley, estimates that, in large part because of increased consumer participation in enterprises, there will be fewer hierarchical levels. “Work is going to change. It’s what I call ‘the downturn!’ with fewer function levels. Employees will be more independent and have more freedom to change departments. A company that wants to prepare for the future today should integrate itself more and more with its client, the co-creator of the innovation process, and move toward providing more mobility and autonomy to its employees,” suggests Jacob.
Sta n f o rd pro f esso r pre d i cts a re vo lu t i o n i n e d u cat i o n In the U.S., the Obama administration has embraced the cause and withdrawn bureaucracies so that small businesses have access to financing through crowdfunding without complying with the complex accounting of the traditional market. Such public policies have exponential effects. “Two of my students just created a prototype of an electronic kit for schools and raised $110,000 on Kickstarter in a month. The prototypes cost $5,000 and were made using digital fabrication. Ten years ago, they would have cost $50,000,” explains Paulo Blikstein, a Brazilian professor who heads the FabLab at Stanford University’s School of Education in the heart of Silicon Valley, where the Maker culture is thriving. Blikstein is an advocate of manufacturing laboratories as educational tools; he sees in them a socially transformative effect of motivation. Regarding Brazil, he reminds us that we have to do some homework if we want to have a leadership role in this New Industrial Revolution: “We have to rapidly adapt the legislation to make this revolution explode. We don’t want to live in the 21st century economy with a bureaucracy from the 19th century. These new ways of creating and marketing products require a different legal and economic infrastructure, and the country that does so will soon have enormous competitive advantages.”
I n 50
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the days
of using paper
are numbered TOTVS has joined discussions on eSocial, a digital system that unifies access to labor and social security information; changes to begin in May by Carlos Vasconcellos illustration Daniel Razabone
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razil will soon say goodbye to forms for Social Security as well as to paper documents for the Ministry of Labor, Federal Savings Bank, and Internal Revenue Service. The labor and social security digital bookkeeping system, eSocial, is expected to come into effect starting in May. The system will unify the sending of employee information in a database to be shared by the different government agencies that oversee or collect these contributions respectively. For lawyer Fabrício Trindade de Sousa, partner at Corrêa da Veiga Lawyers specializing in labor law, the system will bring benefits to this area, as well as businesses and employees even in the short term. “Despite the effort that will be necessary for the adjustment of enterprises, eSocial will be a positive change,” he says. According to de Sousa, the system will allow employees access to all information about their working life in one place. “At present, employees have to access various bodies and set prior appointments with agencies,” he says. “With this new system, their relationship with their employers would be more transparent.” It is worth remembering, de Sousa highlights, that beyond
the authorized bodies, only the employees themselves and their company will have access to the data. “The system guarantees confidentiality,” he says.
Less bureaucracy As for companies, continues de Sousa, eSocial will mean a reduction in bureaucracy. “Now, everything is online, done in one place, and no requirement has been created in addition to the existing one,” says the lawyer. He also points out that the system will serve as an additional defense for companies in the case of labor disputes related to bad faith. “It is called ‘presumption in favor’ and already happens today with information correctly provided by companies to government agencies,” says de Sousa. “In our view, eSocial reinforces this presumption in favor of the employer if he in fact is acting correctly, strengthening his defense against unjust claims.” eSocial is another milestone of the SPED (Public Digital Bookkeeping System), which has been implemented in the country since 2006. Since then, the project has deployed the Electronic Invoice and SPED Accounting System. Invited by one
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S che d u l e * eSocial of its clients to monitor the first SPED pilot project, which is in its accounting stage, TOTVS has participated since the beginning in the discussions on digital bookkeeping in the country.
Pioneering The first articulations for the implementation of eSocial began in 2009, says the vice president of Systems and Segments of TOTVS, Gilsinei Hansen. “We have also participated in technical meetings with SERPRO’s team within the scope of the project,” he adds. This monitoring has allowed the company to keep its solutions attuned to the advancement of eSocial. Any change in the system or its interface is immediately communicated to the customer by the corporate social network of TOTVS. “Communication with clients takes one week at the most, starting from the decision of the tax authorities,” says Hansen. The information is updated as soon as possible by the Tax Consulting Segments of TOTVS (ces.consultoriatributaria@totvs.com.br) on all channels, which include a hotsite dedicated to eSocial. “Thus, the client can closely monitor the changes.”
C H A NG E S
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With eSocial, companies will have the following in a single environment: A digital payment sheet; A simplified digital payment sheet for small businesses (Single Micro Entrepreneur and Simple National, for example); Registration of Labor Events (RET); Database with “Employee’s Vision” (which shows an employee’s history as well as pay information, including paychecks or paystubs); Web DCTF; Workers’ portal (environment where reports can be generated in relation to information sent by eSocial).
Such information shall be consolidated in a database with data on individuals shared by the IRS, Social Security, Social Ministry of Labor, and the Federal Savings Bank”
In practical terms, the system will send all information about each employee in one digital form, including medical licenses, employee’s dismissal fund, concession rentals, INSS contribution, and hiring and firing data. Such information will be consolidated into a single database, which will be shared by the IRS, Social Security, Ministry of Labor, and Federal Savings Bank. “In the second phase, the DCTF web (Statement of Charges and Federal Tax Credits) will be added to the eSocial environment, and the former will ultimately deliver the slips for payment or return of tax, social security, and labor obligations,” explains the executive. Renata Seldin, senior manager of TOTVS Consulting, notes that companies that are not adequately prepared for the arrival of eSocial may face problems. “We need to gather a significant amount of information that is usually dispersed in a company, and those who do not have their house in order may face difficulties,” she warns. Seldin explains that the consulting work of TOTVS allows companies to improve their processes and organize their information; consequently, their transition to eSocial is smooth and without any kind of issues. “We started with a broad analysis of the processes of the customers,” she says.
Types of employers
Deadline for initial registration of events and tables
Rural producer, physical individual, and specially insured person
April 30, 2014
Companies taxed by real profits Companies taxed on presumed profit, immune and exempt entities, Simple National Tax, Individual Micro Company (MEI), Individual taxpayer equivalent to a company and others equivalent to a company Direct governing bodies of unions, states, federal districts and municipalities, local authorities, and foundations
Deadline for transmission of payroll charges and labor contingencies
Replacement of SEPIF form
June 6, 2014 MAY SHEET/2014
MAY
June 30, 2014
August 7, 2014 JULY SHEET/2014
NOVEMBER
November 30, 2014
December 5, 2014 NOVEMBER SHEET/2014
JANUARY/2015
January 31, 2015
February 6, 2015 JANUARY SHEET/2015
JANUARY/2015
*Subject to change
Attention to deadlines The process includes interviews not only in the area of personnel or human resources but all other departments that are affected by eSocial, such as finance, legal, safety, and occupational medicine departments. “As such, we have analyzed situations for which all the necessary information can be easily located,” says Seldin. Subsequently, the consultancy tests data quality: if information is missing or if there are errors or duplication. “Very often, data are in different databases or systems that are not integrated,” says Seldrin. From this diagnosis, TOTVS Consulting redesigns processes and then proposes solutions that can either use TOTVS products
or not. “The analysis phase lasts about two months. Meanwhile, deploying solutions depends on the outcome of the diagnosis,” says Seldrin. “With this tight deadline, those who have not yet begun to adapt to this new reality should avoid radical changes in their IT systems.” According to Seldrin’s assessment, the segment of small and micro enterprises is the least prepared for eSocial. “Entrepreneurs seem to have delays in schedule,” says the expert. “It’s true that the implementation has already been delayed twice, but companies should take this time because the work ahead is extensive, and eSocial will become a reality sooner or later,” she concludes.
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There is no social transformation without the strengthening of the partnership with the private sector,” says Raquel Coimbra, project manager of IDIS
everyo n e does their part Why corporate social investment is important for Brazil by Carlos Vasconcellos
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he 3rd Brazilian Forum of Philanthropists and Social Investors, scheduled for November in São Paulo, marks the consolidation of efforts of the private sector toward the development of social projects. In 2013, the meeting brought together more than 200 participants. Representatives from private foundations and organizations, company directors, and private donors met to discuss experiences, success stories, and the best practices in an activity that has been growing since the early 1990s. “There was a lack of an exclusive space for the exchange of experiences among the donor community,” explains Rodrigo Alvarez, director of the Institute for the Development of Social Investment (IDIS), the group that organizes the Forum. The event, held in association with the Global Philanthropy
In considering the demands of the job market in the area of technology, the IOS intends to consolidate itself as a cutting-edge organization in the area of training. “The plan provides direction for the entity in future years and points out the challenges that need to be faced,” Alvarez explains. Raquel Coimbra, project manager of IDIS, mentions that the focus of the Institute’s work is its donors. “There is no social transformation without strengthening the partnership among the private sector, civil society, and the state,” she says. She notes, however, that the demand of donors has changed over the years. “At the beginning of our work, we were very much needed in helping create institutions,” she says. In fact, IDIS collaborated with the initial formation of important social investment organizations, such as the Avon Institute and Camargo Corrêa Institute. Currently, a large number of companies already maintain their own foundations and institutes or possess an internal area to take care of social investment; this scenario is proof of the progress achieved by the sector. “As a result, there is currently a great concern for the monitoring of results and the assessment of the impact of projects,” explains Coimbra.
Investment with a focus on quality Forum, is celebrating 15 years of the Institute’s efforts in promoting social investment in the country. Created in 1999, IDIS soon became a key figure in the architecture industry, helping organize projects, establishing foundations, and consulting with private organizations that show interest in the sector. Moreover, it is currently the representative of the Charities Aid Foundation for Brazil and Latin America. IDIS has provided strategic advice to the Institute of Social Opportunity (IOS), an organization for professional qualification maintained by TOTVS and its partners. “We help IOS organize itself for the future,” Alvarez says. The next steps include expanding the IOS through social franchises, and this model can be structured by IDIS.
According to Coimbra, determining the focus and monitoring of projects are critical to obtaining ideal results. “Very often, an institution uses a considerable amount of resources, in a dispersed, welfare-related manner, by buying food baskets or paying the electric bill of daycare centers, but without seeing a more effective return to society and itself,” she says. To adjust the focus, Coimbra argues, one must ask what the expectation of an organization is in relation to social investment. She enumerates such questions as follows: “Where does the company operate? Which needs can it meet, and what is the work of the company in this area?” From the respective responses, more consistent efforts can be developed, preferably with the direct involvement of the top leadership in the process. “The top leaders have to participate at this level for the project to deliver an impact on business,” she stresses.
Rodrigo Alvarez and Raquel Coimbra: the focus on the projects is essential
RESPONSIBILITY AGENDA Alvarez also notes that the profile of private social investment has also changed, taking the shape of the original business of companies. “Since 2005, sustainability and corporate social responsibility have finally formed part of the agenda of companies,” he says. “Given its connection with private social investment, the company’s business is subjected to more tax.” In Coimbra’s opinion, although it is desirable to have more tax incentives for social investment shares, “as is the case in culture, with the Rouanet Law,” initiatives cannot rely exclusively on this type of mechanism. “Laws of encouragement can help the industry take a quantum leap,” she argues. “However, initiatives funded solely by tax breaks do not constitute, in our view, shares of private social investment. A value of the budget of the business must be dedicated to the social area; a person who appreciates this kind of initiative is not just doing it because of the tax benefits,” she concludes.
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Unimed Porto Alegre has worked with TOTVS since 2004; good relationships made the cooperative propose changes that were incorporated into the platform
partnership of champions
Rezende explains that with TOTVS 11, the company makes a technological leap that will allow a much friendlier interface for the 142,000 beneficiaries, 900 members, 400 offices, and more than 100 hospitals and laboratories connected to the company. “This is important because this audience has not received specific training,” he notes. Certain modules of the new program will bring productivity gains to Unimed Ribeirão Preto. “The Registration Module is very easy to use, and Receptive Marketing merges workflow and CRM functions, improving customer service,” observes Rezende. The system also enables the scheduling of heavy processing operations, thereby optimizing the hardware infrastructure. “This is very important to organizing the processing of invoices and payments to service providers and cooperating members,” says Rezende. Gueleri recalls that the relationship between Unimed Ribeirão Preto and TOTVS began in 1997, and the system migration process brought the two companies closer together. “The service through the private channel allowed for more integration between our staff and the TOTVS support team,” he says. Rezende, in turn, indicates that the maintenance contract with TOTVS was important for avoiding risks associated with the transition of systems: “Through know-how and technical knowledge, we have always defended this partnership as being the best path for us.” Eduardo Amaral, the
Unimed Porto Alegre and Ribeirão Preto celebrate the successful transition to TOTVS 11 platform while Unimed São José dos Campos also implements TOTVS Smart Analytics for new solutions by Carlos Vasconcellos
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o Unimed Ribeirão Preto, the Carnival of Champions Parade took place at noon on Ash Wednesday, when the IT sector of the health cooperative officially aired the TOTVS 11 platform. The parade—or rather, migration— began on Friday, the day before the carnival, and it was completed on Sunday. On Monday, the system was ready for final tests, and on Tuesday, it was already available in emergency rooms.
“It was an almost seamless transition. If we had not told our 900 cooperative members that the system would de offline at Carnival, they wouldn’t even have perceived the change,” celebrates Wagner Gueleri, the IT medical coordinator at Unimed Ribeirão Preto. As with Carnival, a change of this nature begins much earlier, and requires much preparation. “Negotiations began in July last year, and the training [began] in November,” says Fabiano Rezende, IT coordinator for Unimed Ribeirão Preto.
IT staff, along with Chairman and Managing Director of Unimed Ribeirão Preto, celebrate the success of the upgrade to TOTVS 11
managing director of Unimed Ribeirão Preto, compares the technological transition to an invisible benefit: “Customers, members, and businesses will experience a positive impact through an improvement in management and an optimization of resources, even if they do not perceive it directly.”
Unimed Porto Alegre: joint work improved the product Unimed Porto Alegre also has a partnership with TOTVS, and in February this year, it concluded the migration to the TOTVS 11 platform. “We made a selection in the market and decided to keep the partnership that has lasted since 2004 because we realize that the system is what [has] best met the needs of our business,” explains Antônio Pires, the superintendent of IT at Unimed Porto Alegre; “besides, it was also more economically viable.” The migration that began in late 2012 was complex, and the redesign of processes took four months. The result was the incorporation of new features into the product. “Instead of investing in a customized solution, we strengthened our partnership with TOTVS and proposed a number of functions that could be incorporated into the final system,” Pires says. Unimed Porto Alegre, which operates in the capital as well as in the metropolitan, south-central, and northern coastal regions of Rio Grande do Sul, has significant statistics. As the cooperative leader in the medical health care market in the country’s southern region, it has more than 690,000 customers and nearly 420 service points (accredited as well as independent); it is the largest structure for provision of health services in its area of action. The cooperative was founded in 1971; it has 6,300 doctors and a service structure that includes a hospital, laboratory, diagnostic imaging centers, an oncology center, emergency care, Dental Unimed care units, and SOS medical emergency teams. By working collaboratively, the client and the consultant maintain a relationship that has led to the evolution of the product. “The audit module, for example, was redesigned based on our suggestions,” Pires explains. “Now, it works through a fine mesh system, which detects nonstandard transactions and triggers the audit service.” However, user profiles were redefined through segregation by function. “Now, they take into account the risk profile of each access in every area of the company’s business,” states Pires. The product also has other advantages. “The web module facilitates the updating of the customer base and businesses, and the ECM
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The GoodData platform.
TOTVS always offers us new tools that add value to our business”
module works with the concept of workflow, which we previously did not conduct in a systematic way,” clarifies Pires. The end result is a platform with few functions designed exclusively for Unimed Porto Alegre. “The development process has led to improvements in the product, which reduce maintenance costs and extend the benefits to other companies,” says Pires. “In the end, the partnership incorporated something that adds value to the product of TOTVS.” The technological transition occurred smoothly and according to the deadline. “We gathered employees from various areas of the cooperative who composed a great team. Through a multidisciplinary approach, all stages were conducted in an orchestrated manner and we were able to manage the process without impacting the end user, [and] with no problems,” declares Pires.
Unimed São José dos Campos praises the fluidity of the process Unimed São José dos Campos, the largest medical cooperative of Paraíba Valley with 136,000 customers and 702 mem-
São José dos Campos: Private Service has improved the partnership
bers, is another unit of health cooperatives that have the support of the TOTVS network. Since 2002, the company has used TOTVS solutions in areas such as health management plans, materials, human resources, and financial management. One of the differentials that influenced the customer to make this choice was the opportunity to deal with the exchange at Unimed Brazil, which uses a proprietary transaction protocol. “Before, the process did not flow effectively,” notes Julio Cesar Teixeira Amado, CEO of Unimed São José dos Campos. He explains, “We relied heavily on IT, which was outsourced to meet the demand, and this was somewhat bureaucratic.” The adoption of software formalized processes to create an operational standard for all areas. Customers and cooperative members of Unimed São José dos Campos soon perceived the difference in service. “Over the years, we hired consulting services,” states Amado, “[and] we had some difficulties in the operation, such as changes in legislation.” Amado believes that the support of internal and external consulting services, with some specific settings for the portfolio of Unimed São José dos Campos, demonstrates that TOTVS products are not just part of “a box program.” In 2014, the partnership is stronger than ever. “We are helped through a private channel and an almost immediate SLA, depending on the complexity of the demand,” says Amado. “In addition, this channel offers us new tools, which add value to our business. A great example is the ECM, which allows us to map processes with workflow responsibilities and stages,” he adds. The latest novelty adopted by Unimed São José dos Campos is TOTVS Smart Analytics, powered by GoodData; it is an integrated ERP tool that is being deployed alongside TOTVS 11. The tool will be used by directors, executives, and managers from all areas; further, it enables the analysis of Unimed information and older systems in a single database. Dashboards bring an ease of handling information for decision making. “With the tools, we have collected and filtered numbers for every need and management indicator in the healthcare, administrative, and financial areas, making the cooperative a more competitive company in its field of operation. The current legislation and growing evolution also remind us of the need to have a high-performance product,” explains Amado.
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